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.
State Regulation:
Colorado Senate Passes Oil & Gas Regulation Bill
On April 3, 2019, the
Colorado Senate voted to pass SB 19-181, entitled “Protect Public Welfare Oil and Gas Operations,” which alters the regulatory landscape of
oil and gas extraction in the state (p.1). The bill amends the purpose of the
state’s Oil and Gas Conservation Act by prioritizing public health, safety,
welfare, and the environment when regulating oil and gas development.
Notably, the bill provides local governments with greater authority to
regulate the siting of drilling operations, inspect facilities, and impose
fines for spills (p.1-2). In addition,
the bill requires drillers to continuously monitor their air pollution and
minimize their methane emissions (p.2-3).
Air Quality: EPA
Finalizes New Self-Auditing Program for Oil & Gas Facilities
On March 29, 2019, the
Environmental Protection Agency announced that it had finalized a new program that would allow owners of
oil and gas facilities to identify and fix any Clean Air Act violations on
their property. According to the agency, the program is designed to encourage voluntary compliance and to provide greater
regulatory certainty to new owners. The EPA does, however, have the authority
to deny applications for facilities which federal or state agencies have
already discovered to be in violation of the Clean Air Act.
LNG Exports: Sempra
Energy Receives Department of Energy Approval for LNG Exports
On March 29, 2019, the
U.S. Department of Energy (DOE) issued an order granting authorization to
Sempra Energy (Sempra) to export natural gas from the United States to Mexico
and to re-export liquified natural gas from its facilities in Mexico to nations
with which the United States does not have a free trade agreement. The
DOE authorization will allow for export from Sempra’s Energia Costa Azul (ECA) Mid-Scale Project and the ECA Large-Scale Project. Sempra’s facilities in Baja California are being expanded in two
phases: the first is a single train LNG facility near the company’s existing
LNG terminal; the second will involve the construction of two more trains and a
storage tank, bringing the facility’s total export capacity to 636 billion
cubic feet a year of liquefied natural gas. According to Sempra, its facility
was the first LNG receipt terminal built on the West Coast and will serve the
company’s customers in Mexico and Asia.
Oil and Gas Leasing:
Alaska District Court Issues Ruling on Arctic Leasing
On March 29, 2019, the
U.S. District Court for the District of Alaska held that Section 5 of Executive Order 13795,
which would have allowed for offshore drilling in parts of the Arctic Outer
Continental Shelf, to be unlawful. Executive Order 13795, Implementing an America-First Offshore
Energy Strategy, was issued on May 3, 2017, by President Trump. This
executive order would have revoked executive orders issued by President Obama
that withdrew areas of the Arctic from leasing. The court vacated Section
5 of Executive Order 13795 and stated that the previous leasing withdrawals
“will remain in full force and effect unless and until revoked by Congress.”
From the National Oil
& Gas Law Experts:
Charles Sartain, Louisiana Operator Can’t Deduct
Post-Production Costs From Unleased Mineral Owners, (April 4, 2019)
Pennsylvania
Legislation:
HB 887: 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 25, 2019)
HB 828: would extend term for well permits, would allow one permit to
apply to multiple wells, and would allow the well location to be within 50 feet
of the requested location (Reported as amended - March 26, 2019)
SB 443: would restrict licensing for any new hazardous liquid
pipelines in Pennsylvania for two years (Referred to Environmental Resources and Energy - March 28, 2019)
“More oil and gas pipelines in the Permian
Basin will boost both production and safety” - Dallas Morning News
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the Pennsylvania Supreme Court Ruling Related to the Impact Fee.
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