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.
Landowner Royalties:
Pennsylvania Appellate Court Finds for the State in Landowner Royalties Case
On March 15, 2019, the
Pennsylvania Commonwealth Court issued an opinion affirming that the Attorney General of Pennsylvania has the
authority, under Pennsylvania’s Unfair Trade Practices and Consumer Protection
Law, to bring a cause of action alleging wrongful conduct in the context of
leasing subsurface mineral rights from private landowners (Anadarko
Petroleum Corporation v. Commonwealth of Pennsylvania, No. 58 C.D. 2018)
(p.1-2, 16-17). The Attorney General asserted this power under §2(xxi) of the
statute, which prohibits “[e]ngaging in any other fraudulent or deceptive conduct
which creates a likelihood of confusion or misunderstanding (p.5-6).” The
court, however, reversed the portion of the lower court’s decision that found
the Attorney General to have the power to bring such suits on the basis of
alleged violations of antitrust law (p.1-2, 16-17). The Attorney General
alleges that Anadarko acted unlawfully by deceiving or misleading private
landowners in order to acquire their mineral rights (p. 2).
Pipelines: Ohio Court
Dismisses Environmental Lawsuit Against Rover Pipeline
On March 12, 2019, the
Stark County, Ohio Court of Common Pleas dismissed a lawsuit filed against Rover Pipeline by the State of Ohio (State
of Ohio v. Rover Pipeline, No. 2017 CV 02216) (p.2). Ohio alleged
that the company had illegally released millions of gallons drilling fluids
into state waters during construction of the Rover Pipeline. Ohio states that
Rover violated Ohio’s water quality standards and failed to obtain the
necessary permits and certification. Under the Clean Water Act, projects
that will affect the water quality are subject to section §401 Water Quality
Certification by the state (p.6-7). In
turn, states must act within one year of receiving an application for
certification in order to preserve this authority (p.6-7). The court found here
that the State of Ohio did not act within one year and, accordingly, dismissed
the lawsuit in favor of the defendant (p.7-10).
Federal Lands: Federal
Court Holds That BLM Must Consider Climate Change for Drilling Leases
On March 19, 2019, the
U.S. District Court for the District of Columbia issued an opinion finding that the Bureau of Land Management did not adequately
consider the impacts of climate change resulting from oil and gas drilling
leases on public lands in Wyoming (WildEarth Guardians v. Zinke, No.
16-1724) (p.1-2). Specifically, the court found that the agency had not given
greenhouse gas emissions likely to result from proposed drilling the “hard
look” required by the National Environmental Policy Act (p.59-60). The court
ultimately granted a motion for summary judgment filed by the plaintiffs on the
grounds outlined above (p.1-2).
LNG Exports: FERC Issues Final Environmental Impact
Statement for Texas LNG Port
On March 15, 2019, the
Federal Energy Regulatory Commission (FERC) issued its Final Environmental Impact Statement for the proposed liquefied natural gas export
terminal at the Port of Brownsville, Texas. FERC found that, while the project
would have adverse environmental impacts, they would not be significant and
could be avoided through the use of mitigation measures. The proposed facility, according to Texas LNG, will initially have the capacity to produce
up to two million tons of liquefied natural gas each year and would begin
exports in 2023/2024.
From the National Oil
& Gas Law Experts:
Charles Sartain, Royalty Owners Seeking Class Certification
Sent Back to the Trial Court, (March 19, 2019)
Pennsylvania
Legislation:
HB 886: would require pipeline routes to be evaluated for
community safety and pipeline operators would need to share information with
emergency response teams (Referred to Consumer Affairs - March 19, 2019)
HB 247: would allow operators to drill well bores across multiple
units so long as the operator has leases with all owners of the units (Reported as Amended - March 19, 2019)
SB 457: would create a 5 percent energy extraction tax (Referred to Environmental Resources and Energy - March 19, 2019)
HB 906: would require the Pennsylvania Real Estate Commission to
certify and register land agents who work with landowners in acquiring oil,
gas, and mineral rights (Referred to Professional Licensure - March 20, 2019)
SB 468: would create a 5% natural gas severance tax in Pennsylvania (Referred to Environmental Resources and Energy - March 21, 2019)
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Check the February Agricultural Law Brief! Each month we compile the biggest legal
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