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.
Pipelines: Circuit Court
Rules PennEast Pipeline Cannot Move Forward on Condemnation Lawsuit Against New
Jersey
On September 10, 2019,
the U.S. Court of Appeals for the Third Circuit ruled PennEast Pipeline Company (PennEast) was barred by the Eleventh
Amendment from bringing a suit against New Jersey to obtain property under
eminent domain (In re: PennEast Pipeline Company, LLC, No. 19-1191).
PennEast was granted approval for their pipeline project which required access
to several properties owned by the state of New Jersey. PennEast filed
suit under § 717f(h) of the Natural Gas Act (NGA), which allows the “necessary right-of-way” to construct a
pipeline. The court noted that the power of eminent domain and the power to
bring a state into federal court were two separate issues. The Eleventh
Amendment to the U.S. Constitution gives states immunity from suit by private
parties. The court ultimately remanded the case back to the district
court for dismissal under the grounds that “New Jersey’s sovereign immunity has
not been abrogated by the NGA.”
Oil and Gas Leasing:
California Legislature Passes Bill Limiting New Oil and Gas Leases for
Infrastructure
On September 9, 2019 the
California Senate passed Assembly Bill 342 prohibiting new oil and gas leases on public
lands used to support production on certain federal lands. More specifically,
the bill prevents leases on public lands for oil and gas-related infrastructure
that would be used to support oil and gas production on federally protected
lands. The bill defines “federally protected land” as “a national monument,
park, wilderness area, wildlife refuge, or wilderness study area.” The bill
does not prohibit maintaining and repairing current pipelines, and does not
prohibit leases for oil and gas infrastructure used to support production on
state lands. The bill previously passed the House on May 22, 2019, and was sent
to the governor for signature on September 12, 2019.
State Regulation: New
Hampshire Governor Approves Bill Prohibiting Offshore Oil and Natural Gas
Exploration
On September 10, 2019,
New Hampshire’s governor approved Senate Bill 76, prohibiting offshore oil and natural gas
exploration, development, and production in coastal waters of the state.
According to the Associated Press, Governor Chris Sununu signed the bill stating
that it was “another step in the right direction.” The bill prevents the
Department of Environmental Services from issuing any permits, approvals, or
endorsements for “oil or natural gas exploration, development, or production in
coastal state waters.” The bill will take effect on November 10, 2019.
Electricity Generation:
Pennsylvania Public Utility Commission Releases Electric Power Outlook Showing
Increase in Natural Gas Generation and Alternative Energy Usage
In August 2019, the
Pennsylvania Public Utility Commission (PUC) released the Electric Power Outlook for 2018 to 2023. The report shows an increase
in natural gas generation as well as increasing usage of alternative energy
resources. More specifically, natural gas generation was projected to
contribute “greater than 60 percent of on-peak capacity” in some areas. According to the report, natural gas generation provides important adaptability
that is “essential for managing wind and solar variability.” The report
predicts that the amount of electricity supplied by alternative resources will
increase to a total of 18 percent by 2021. Some alternative energy
resources include solar, wind, biologically derived methane gas, and coal mine
methane.
From the National Oil
& Gas Law Experts:
Ann Navaro, Sara
Burgin, & Daniel Pope, EPA Repeals Obama Rule Defining Waters of the
U.S., (September 13, 2019)
Nina Howell, Ryan
Pereira, Gaffney, Cline & Associates, LNG in Europe: Current Trends, the European
LNG Landscape and Country Focus, (September 16, 2019)
Charles Sartain, Gas Well Operator’s Injunction Against Texas
Town is Dissolved, (September 12, 2019)
John McFarland, Chesapeake v. Bell – Another Decision
Construing an Express Drainage Offset Clause, (September 10, 2019)
“US Wants Energy Dominance Regardless Of What
Happens To Oil Prices, Deputy Energy Secretary Says” - CNBC
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