Sara Jenkins -
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.
LNG Exports: FERC
Issues Final Environmental Impact Statement for Plaquemines Parish Project
On May 3, 2019, the Federal Energy Regulatory Commission (FERC) announced that it has issued a final environmental impact statement for the proposed Plaquemines LNG and Gator Express Pipeline project (Project).
FERC concluded that the Project would result in adverse environmental impacts,
but such impacts would be reduced to less than significant levels through
impact avoidance, minimization, and mitigation measures. Mitigation measures
include compliance with FERC’s Upland Erosion Control, Revegetation, And Maintenance
Plan and Wetland and Waterbody Construction and Mitigation
Procedures. The Project, located in Plaquemines Parish,
Louisiana, will include an LNG terminal and two parallel natural gas pipelines.
Each pipeline will be designed to deliver approximately 1.9 Bcf/day. Once
completed, the Project will have an export capacity of 20 million metric tonnes
per year and three marine loading berths for ocean-going ships carrying up to
185,000 cubic meters of LNG.
Wildlife Habitat: U.S.
Fish and Wildlife Service Considers Petition to Downlist Endangered Beetle
On May 3, 2019, U.S. Fish and Wildlife Service issued a proposed
rule entitled, Endangered and Threatened Species: Reclassifying the
American Burying Beetle from Endangered to Threatened on the Federal List. The U.S. Fish and
Wildlife Service considered downlisting the
American Burying Beetle from endangered to threatened after a petition was filed offering
substantial new information. The petition, which was jointly signed by the
American Stewards of Liberty, the Independent Petroleum Association of America, the Texas Public
Policy Foundation, and SWCA environmental consultants, initiated a status
review of the beetle by the U.S. Fish and Wildlife Service. The U.S. Fish and
Wildlife’s review found that the main threats to the insect are increasing
temperatures brought about from climate change, and ongoing land-use changes to
its habitat. According to the finding, the beetle still meets the definition
for threatened because these threats are still prevalent.
LNG Exports: Oregon
Department of Environmental Quality Denies Request for Water Quality
Certification of Jordan Cove Project
On May 6, 2019, the Oregon Department of Environmental Quality
(DEQ) issued a letter to Jordan Cove LNG,
LLC and Pacific Connector Gas pipeline, LP (collectively “Jordan Cove”) denying
water quality certification under section 401 of the Clean Water Act for their
LNG export terminal project. DEQ denied Jordan Cove’s request based on a lack
of reasonable assurance that the project would not interfere with water
resources or aquatic life. DEQ issued an Evaluation and Findings Report detailing the
project, application requirements, water quality standards, and findings. The
Jordan Cove project is designed to
consist of an LNG export terminal in Coos County, Oregon, and a pipeline to
transport natural gas 229 miles from the Ruby Pipeline and the Gas Transmission
Northwest (GTN) Pipeline near Malin, Oregon. If completed, the LNG terminal
will have a carrying capacity of 1 billion cubic feet (Bcf) per day.
Public Lands: U.S. Bureau of Land
Management Issues Proposed Resource Management Plan and Final Environmental
Impact Statement for Oil and Gas Development in Central California
On
May 9, 2019, the U.S. Department of the Interior Bureau of Land Management
(BLM) issued the Proposed Resource Management Plan Amendment and Final
Environmental Impact Statement for Oil and Gas Leasing and Development
(Proposal). The Proposal follows
President Trump’s Executive Order 13783 titled, Promoting Energy Independence and Economic Growth,
which required immediate review of any agency action that potentially burdens
the development of energy resources in the United States. In the Proposal,
BLM’s Central Coast Field Office considered six alternative approaches to oil
and gas development in central California. The agency-preferred alternative,
Alternative F, would open up 683,100 acres of federal minerals to oil and gas
leasing with Controlled Surface Use stipulations and 42,400 acres with No
Surface Occupancy stipulations. Additionally, 67,500 acres would be closed to
leasing in designated wilderness areas. BLM initiated a 30-day public protest
period when the Proposal’s Notice of Availability was
published in the Federal Register.
GHG Emissions: D.C. Circuit Court of
Appeals Dismisses Petition to Review FERC Decision for Lack of Jurisdiction
On
May 9, 2019, the United States Court of Appeals for the District of Columbia
Circuit dismissed a Petition for Review
(Petition) of Orders of the Federal Energy Regulatory Commission (FERC) for
lack of jurisdiction. The Petition, filed by Otsego 2000
(Otsego), requested that the court review actions taken by FERC granting a
certificate to Dominion Transmission, Inc (Dominion) to construct and operate
its New Market Project (Project).
Otsego claimed that under the National Environmental Policy Act (NEPA), FERC
was obligated to review upstream and downstream effects of greenhouse gas
emissions produced by the project. In May 2018, in an Order Denying Rehearing, FERC
announced it would no longer consider upstream and downstream effects of
greenhouse gas emissions, because the evaluations would go beyond the
requirements of the NEPA. The court, however, did not address this issue
because Otsego failed to establish standing. The court found that due to a
failure to identify injury, Otsego lacked the standing needed to invoke the
jurisdiction of the court.
From the National Oil
& Gas Law Experts:
Pennsylvania
Legislation:
HB 247: would allow well
bores to cross multiple units so long as the operator has the right to drill
those wells (Removed from table - May 8, 2019)
SB 619: would establish new
reporting obligations for spills or discharges that could violate water quality
criteria (Referred to Environmental Resources and Energy, May 10, 2019)
“Baker Institute studies possible shale-development ban
in Mexico” - Oil & Gas Journal
“Europe's imports of American natural gas are soaring” - CNN Business
“Canada likely to move ahead on Trans Mountain” - EnergyWire
“Court delays block Keystone XL pipeline construction in
2019” - Associated Press
“Tellurian’s Driftwood LNG wins non-FTA export approval
from DOE” - LNG World news
“Baker Hughes chooses Permian Basin to debut 'electric
frack' technology” - Houston Chronicle
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This week we published
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Pipeline Protest Legislative Package into Law and Shale Law in the Spotlight – Colorado Legislature Revises Statutory Framework for
Regulation of Oil and Gas Development.
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