Chloe Marie – Research Specialist
Jackie Schweichler – Staff Attorney
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Public Lands: BLM
Publishes Draft Environmental Impact Statement for National Petroleum Reserve
in Alaska
On November 25, 2019,
the Bureau of Land Management (BLM) published notice of
availability of a draft
environmental impact statement (EIS) for the National Petroleum Reserve (NPR-A) in Alaska. The
NPR-A is located on Alaska’s North Slope region and includes 23 million
acres. The draft EIS includes four management options with analysis on
oil and gas exploration, development, and transportation. One option would include maintaining the
current oil and gas leasing acreage of 11.8 million acres. Another option
would decrease the amount of land leasing availability to 11.4 million acres.
The other two options would increase the leasing acreage to 17.1 or 18.3
million. The public comment period will
close January 21, 2020.
Municipal Regulation:
California Restaurants File Lawsuit Against Berkeley for Natural Gas
Infrastructure Ban
On November 21, 2019,
the California
Restaurant Association (CRA) filed a complaint in the U.S. District Court for the
Northern District of California against the City of Berkeley to oppose the
city’s recently passed natural gas infrastructure ban (California Restaurant
Association v. City of Berkeley, 3:19-cv-07668-SK). The new law, Prohibition of
Natural Gas Infrastructure in New Buildings, was passed in July 2019 and will go into
effect on January 1, 2020. The law prohibits the installation of natural
gas infrastructure in new building construction, with limited exceptions.
According to the city, substituting electric for gas appliances will
address the problem of climate change and improve air quality in homes. CRA argues, however, that the law negatively affects
restaurants and chefs who need flames in order to create a variety of culinary
dishes. CRA states that restaurant owners may be dissuaded from moving,
upgrading their buildings, or opening new restaurants.
Methane Emissions:
States and Senators Submit Comments on Proposed Emission Standards Rule
On November 22, 2019,
several states submitted comments on the proposed rule, Oil and Natural
Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources
Review. The stated purpose of the proposed rule is
to amend new source performance standards (NSPS) to remove “regulatory
duplication” while maintaining current emission sources protections.
According to the states’ comments, the proposed rule is arbitrary and
capricious in failing to consider the impact of the rule on existing oil and
natural gas industry sources. In
addition, the states assert that the proposed rule violates the Clean Air Act
and would increase methane emissions. Similarly, on November 25, 2019,
Senators Whitehouse, Duckworth, Van Hollen, and Merkley submitted
comments on the proposed
rule. The senators also argue that the rule is arbitrary and capricious
and would serve to create higher methane emissions.
Production and
Operation: Cleveland State University Provides an Analysis on Investment in the
Ohio Oil and Gas Sector for Q3 and Q4 of 2018
On November 12, 2019,
the Energy Policy Center at Cleveland State University published a report about Utica shale-related investment in Ohio
for the period from July 1 to December 31, 2018. The report provides essential
data and separate analysis on investment made for the three major oil and gas
sectors: upstream, midstream and downstream. According to the report, there has
been a 25% decrease in upstream investment with fewer wells drilled compared to
the first quarter of the year 2018; however, data shows that production is
still increasing. Despite very little investment made in the midstream and
downstream sectors, the report indicated some increased activity and new
pipeline or power generation plant projects that will be included in future
2019 reports. Overall, total investment from the third to fourth quarter of
2018 represents $3.8 billion.
From the National Oil & Gas Law Experts:
U.S. Energy Information Administration, U.S. energy-related CO2 emissions rose in 2018 for the first year since
2014 (Nov. 26, 2019)
U.S. Energy Information Administration, U.S. average gasoline prices this week are similar to the previous two
Thanksgivings
(Nov. 27, 2019)
National Regulatory Actions:
Federal Energy Regulatory Commission
Final Rule;
Public Utility Transmission Rate Changes To Address Accumulated Deferred Income
Taxes, 84 FR 65281
(Nov. 27, 2019)
Environmental Protection Agency
Proposed Rule;
Community Right-to-Know; Corrections to Toxics Release Inventory (TRI)
Reporting Requirements, 84 FR 65739 (Nov. 29, 2019)
Pennsylvania Legislation:
Senate Bill 967: this bill would mandate all major facilities
to establish and maintain a municipal notification plan in order to alert the
public in case of an air pollution incident (Referred to Environmental
Resources and Energy; Nov. 25, 2019)
Pennsylvania Actions and Notices:
Department of Environmental Protection
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Lack Of Credit is Latest Blow to Shale Industry” - Rigzone
“Natural Gas Emerging As The World’s Go-To Fuel” - Rigzone
“Oil Lobby Fights Deal to Regulate Gathering Lines” - Energy Wire
“Industry Groups Urge White House to Finish Overhauling U.S. Environmental Review Process” - Reuters
“Oklahoma: ‘Flowback’ - A New Cause of Oil-Driven Earthquakes?” - Energy Wire
“Pittsburgh Mayor’s Comments Set Off Controversy Over Petrochemical Industry’s Impact to Western PA.” - State Impact
“Will Prior Decisions on Natural Gas Pipelines Come Back to Haunt The Governors Of New York and Pennsylvania?” - Forbes
“Shale Drillers’ Latest Problems: Hog Manure and Chicken Guts” - The Wall Street Journal
“Oil And Gas: States Threaten Legal Action on ‘Dangerous’ EPA Methane Plan” - Energy Wire
“Supreme Court: Atlantic Coast Pipeline Arguments Set for February” - Energy Wire
“Trump’s Latest Plan to Boost Ethanol Miffs Both Corn Groups and The Fossil Fuel Industry” - The Hill
“Lack Of Credit is Latest Blow to Shale Industry” - Rigzone
“Natural Gas Emerging As The World’s Go-To Fuel” - Rigzone
“Oil Lobby Fights Deal to Regulate Gathering Lines” - Energy Wire
“Industry Groups Urge White House to Finish Overhauling U.S. Environmental Review Process” - Reuters
“Oklahoma: ‘Flowback’ - A New Cause of Oil-Driven Earthquakes?” - Energy Wire
“Pittsburgh Mayor’s Comments Set Off Controversy Over Petrochemical Industry’s Impact to Western PA.” - State Impact
“Will Prior Decisions on Natural Gas Pipelines Come Back to Haunt The Governors Of New York and Pennsylvania?” - Forbes
“Shale Drillers’ Latest Problems: Hog Manure and Chicken Guts” - The Wall Street Journal
“Oil And Gas: States Threaten Legal Action on ‘Dangerous’ EPA Methane Plan” - Energy Wire
“Supreme Court: Atlantic Coast Pipeline Arguments Set for February” - Energy Wire
“Trump’s Latest Plan to Boost Ethanol Miffs Both Corn Groups and The Fossil Fuel Industry” - The Hill
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