Written by:
Brennan Weintraub - Research Assistant
Jackie Schweichler - Staff Attorney
The following information is an update of recent local,
state, national, and international legal developments relevant to shale gas.
Pipelines: Pennsylvania DEP Suspends Permit Approvals for
Energy Transfer Pipelines
On February 8, 2019, the Pennsylvania Department of
Environmental Protection announced
that it has suspended all permit reviews and approvals for Energy Transfer
pipelines in the state. DEP Secretary Patrick McDonnell stated that this order
was due to a lack of compliance with a previous order
issued in October 2018 after an explosion along the Revolution pipeline in
September of that year. Construction on the Revolution pipeline will remain on
hold and additional construction on the Mariner East 2 pipeline has also been
suspended.
Pipelines: FERC Allows Valley Crossing Pipeline to
Commence Service in Texas
On February 7, 2019, the Federal Energy Regulatory
Commission gave its final approval
for the Valley Crossing Pipeline to commence service in southern Texas. The pipeline,
which is designed to carry natural gas from the Corpus Christi area to the
Mexican border, has a capacity of roughly 2.6 billion cubic feet of gas per
day. The pipeline turns east from a compressor station in Brownsville and
extends roughly thirty miles into the Gulf of Mexico before connecting with
another pipeline which carries the natural gas to Mexican markets.
Pipelines: Federal Agencies Petition for Rehearing in
Atlantic Coast Pipeline Case
On February 11, 2019, the United States Forest Service and
the National Park Service jointly petitioned
for en banc and panel rehearing of a case involving the Atlantic Coast Pipeline
and its attempted construction on federal land in Virginia and West Virginia (Cowpasture
River Preservation Association v. United States Forest Service, No.
18-1144). The petitioning agencies argued that the U.S. Court of Appeals for
the Fourth Circuit should reverse part of the decision, which held that land
surrounding the Appalachian National Scenic Trail is “land within the National
Park System.” The agencies argue that this would raise issues regarding
many of the existing permits for operations on this land, including power
transmission lines and grazing areas. The agencies asked the court to
preclude that portion of the holding from having any precedential effect on
subsequent cases.
Landowner Royalties: EQT Agrees to $53.5 Million
Settlement With West Virginia Landowners Alleging Nonpayment of Royalties
On February 7, 2019, a group of West Virginia landowners and
EQT Production Co. (EQT) released a settlement
agreement reached as part of a class-action lawsuit based on nonpayment of
royalties (The Kay Company, LLC v. EQT Production Company, No.
1-13-CV-151). This class action lawsuit was brought by landowners
in 2013, who alleged fraud, violation of the flat rate royalty statute, and
improper post-production cost deductions from royalty payments. As part
of the agreement, EQT will pay $53.5 million into a settlement fund, to be
distributed to the landowners in the class. Additionally, EQT has agreed
to stop deducting certain post-production costs from royalty payments in the
future.
From the National Oil & Gas Law Experts:
Charles Sartain, The
Green New Deal: It’s Not Just About Energy, Energy and the Law
(February 13, 2019)
Meghan Nylin, Anti-SLAPP
in the Oil Patch, Oil and Gas Update (February 15, 2019)
John McFarland, Big
Oil and Climate Change, Oil and Gas Lawyer Blog (February 11, 2019)
Pennsylvania Legislation:
HB
492: would require the PUC to create a toll-free hotline for reporting
natural gas pipeline emergencies (Referred
to Consumer Affairs - Feb. 12, 2019)
Meetings: Joint public hearing on PA Farm Bill proposal (Agriculture
& Rural Affairs - Mar. 20, 2019)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
“Drilling
down: Chevron to ramp up Permian Basin drilling projects” - Houston
Chronicle
“Oil’s
Twilight?” - Rigzone
“EIA:
New funding of U.S. E&P companies lowest in 5 years” - Oil & Gas
Journal
“Pipeline
fight drags on, tempting intervention from Trump” - Houston Chronicle
“New
Mexico nets record revenues from oil production” - Associated Press
“Report:
Texas crude oil production breaks 1970s record” - Houston Chronicle
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