Chloe Marie – Research
Specialist
Jackie Schweichler –
Staff Attorney
Audry Thompson –
Research Assistant
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
National Energy Policy:
White House Council on Environmental Quality Issues Proposed Regulations
Focused on Updating NEPA Review Process
On January 10, 2020, the
White House Council on Environmental Quality (CEQ) published in the federal
register a notice of proposed rulemaking designed to streamline the existing National
Environmental Policy Act (NEPA) implementing regulations. CEQ
acknowledged that it has been more than 40 years since NEPA regulations have
been updated and that changes are needed to reflect the Trump administration’s
intent to reduce the paperwork burden on federal agencies as well as to
minimize administrative delay. CEQ therefore proposes, among other
things, to accelerate the process of preparing an environmental impact
statement by imposing stricter time and page limits and revising the terms and
conditions of a NEPA review, including reconsidering the threshold for the
implementation of a NEPA review. The proposed rule also encourages
coordination and consultation between state, tribal and local agencies to
ensure optimal support and compliance with NEPA. The public comment period is open until March
10, 2020.
Pipelines: Federal Court
Vacates Compressor Station Permit in Buckingham County, Virginia, for the
Atlantic Coast Pipeline Project
On January 7, 2020, the
United States Court of Appeals for the Fourth Circuit issued an order vacating
a key permit to construct and operate a compressor station in Buckingham
County, Virginia (Friends of Buckingham v. State Air Pollution
Control, No. 19-1152). The compressor station is part of the
infrastructure supporting the Atlantic Coast Pipeline, which will carry natural
gas from West Virginia to North Carolina. In January 2019, the Virginia
Air Pollution Control Board (the Board) granted Atlantic Coast Pipeline, LLC’s
request for a permit to construct and operate the Buckingham County compressor
station. The Southern Environmental Law Center (SELC) petitioned the court
for a review of the Board’s decision, alleging that Board did not sufficiently
consider whether Union Hill was a “suitable” site for the compressor
station. Specifically, SELC argued that the Board failed to “consider
electric turbines as zero-emission alternatives to gas-fired turbines” and that
the Board failed “to assess the Compressor Station’s potential for
disproportionate health impacts on the predominantly African-American community
of Union Hill.” The Court of Appeals agreed with the plaintiffs and
remanded to the Board for further proceedings.
GHG Emissions: Academic
Study Reviews Air Pollution Emissions from Electricity Generation
On January 6, 2020, the
School of Global Policy and Strategy, University of California in San Diego,
published a study in the journal Nature Sustainability on air quality impacts following the shift from
coal to natural gas for electrical power generation in the United States between
2005 and 2016. According to the study, the decommissioning of fossil fuel
power plants contributed significantly to the reduction of nationwide mortality
rate from greenhouse gases. The study states that the transition from
coal-fired units is also associated with increases in crop yield, suggesting
that between 249 and 878 million bushels of corn, soybeans, and wheat were
“saved” during this period. The researchers noted the present findings
are subject to change due to anticipated differences in feedstock between
regions, the emergence of new technologies and that it is more than likely that
the first retired coal-fired units were the oldest and least efficient
ones. The study is entitled “The downstream air pollution impacts of
the transition from coal to natural gas in the United States.”
PA Impact Fee: PA
Independent Fiscal Office Releases 2019 Impact Fee Estimate
On January 9, 2020, the
Pennsylvania Independent Fiscal Office (IFO) released their 2019 Impact Fee Estimate. According to the report, Pennsylvania
will collect $198.2 million in impact fees for calendar year 2019. This
is a $53.6 million decrease from the $251.8 million collected in 2018. IFO states that the reduction in fees
collected can be largely attributed to low natural gas prices. Part of
the decrease can be attributed to the changed status of stripper wells
following a Pennsylvania Supreme Court opinion issued in December 2018. (For
more information on this decision, see our Shale Law in the Spotlight - An Overview of the Pennsylvania Supreme Court
Ruling Related to the Impact Fee)
From the National Oil & Gas Law Experts:
Pennsylvania Department
of Energy Press Releases:
DEP Reminds Pennsylvanians to Take a
Commonsense Approach to Home Heating Oil and Propane Supply for a Safe Winter (January 8, 2020).
Students Encourage Pennsylvanians to Start
Year Off Radon Safe with Simple Home Test (January 6, 2020).
Pennsylvania Executive
Agencies—Actions and Notices:
Department of
Conservation and Natural Resources
50 Pa.B. 23 “Execution of Oil and Gas Lease for Publicly-Owned Streambeds” Notice
(January 4, 2019).
Pennsylvania Public
Utility Commission
50 Pa.B. 131 “Electric Generation Supplier License Cancellations of Companies
with an Expired Financial Security, Insufficient Financial Security Amount or
Language” Notice (January 4, 2019).
Pennsylvania
Legislature:
Federal Executive
Agencies—Actions and Notices:
Energy Department
85 FR 72 “Life Cycle Greenhouse Gas Perspective on Exporting Liquefied
Natural Gas From the United States: 2019 Update-Response to Comments” Notice
(January 2, 2020).
Environmental Protection
Agency
85 FR 1297 “Idaho: Final Approval of State Underground Storage Tank Program
Revisions, Codification, and Incorporation by Reference” Proposed
Rule—Comment Period (January 10, 2020).
85 FR 1269 “Georgia: Approval of State Coal Combustion Residuals Permit
Program” Rule (January 10, 2020).
Federal Energy
Regulatory Commission
85 FR 1310 “Combined Notice of Filings #1 [Wilderness Line Holdings, LLC]” Notice
(January 10, 2020).
85 FR 1308 “Combined Notice of Filings #1 [RWE Renewables Americas, LLC]” Notice
(January 10, 2020).
85 FR 1312 “Combined Notice of Filings [NET Mexico Pipeline Partners, LLC]” Notice
(January 10, 2020).
85 FR 706 “Combined Notice of Filings #1 [Energy Center Dover LLC, DB
Energy Assets, LLC]” Notice (January 7, 2020).
85 FR 705 “CPV Fairview, LLC; Notice of Institution of Section 206
Proceeding and Refund Effective Date” Notice (January 7, 2020).
85 FR 500 “Combined Notice of Filings #1 [Beech Ridge Energy II LLC, Beech
Ridge Energy II Holdings LLC, Southern Power Company]” Notice (January
6, 2020).
85 FR 503 “Notice of Petition for Declaratory Order; Tri-State Generation
and Transmission Association, Inc.” Notice (January 6, 2020).
85 FR 502 “Notice of Request Under Blanket Authorization; Gulf South
Pipeline Company, LP” Notice (January 6, 2020).
85 FR 91 “Combined Notice of Filings [Iroquois Gas Transmission System,
L.P.]” Notice (January 2, 2020).
85 FR 88 “Columbia Gas Transmission, LLC; Notice of Request Under Blanket
Authorization” Notice (January 2, 2020).
Interior
Department
85 FR 529 “Agency Information Collection Activities. . . Coal Management” Notice—Comment
Period (January 6, 2020).
Land Management Bureau
85 FR 113 “Exxon Valdez Oil Spill Public Advisory Committee; Call for
Nominations” Notice (January 2, 2020).
House Energy and
Commerce Committee Actions:
H.R.5545 “NO EXHAUST Act of 2020” Referred to Committees on Energy and
Commerce & Oversight and Reform (January 7, 2020).
H.R.5542 “To require the Secretary of Energy to establish a grant program
for States to provide incentives to natural gas distribution companies for the
improvement of natural gas distribution systems, and for other purposes” Referred
to the House Committee on Energy and Commerce (January 7, 2020).
H.R.5544 “To create jobs and drive innovation and economic growth in the
United States by supporting and promoting the manufacture of next generation
technologies, including refrigerants, solvents, fire suppressants, foam blowing
agents, aerosols, and propellants, and for other purposes” Referred to the
House Committee on Energy and Commerce (January 7, 2020).
H.R.5541 “Tribal Power Act” Referred to Committees on Natural Resources
& Energy and Commerce (January 7, 2020).
H.R.5554 “To amend the Energy Policy Act of 1992 to ensure that vehicles
in Federal fleets comply with certain low greenhouse gas emission standards,
and for other purposes” Referred to Committees on Oversight and Reform &
Energy and Commerce (January 8, 2020).
H.R.5558 “To promote American leadership in vehicle manufacturing, job
creation, improved air quality, and climate protection through domestic
manufacturing of low- and zero-emission vehicles and development of electric
vehicle charging networks, and for other purposes” Referred to the House
Committee on Energy and Commerce (January 8, 2020).
Senate Energy and
Natural Resources Committee Actions:
PN1156 “Nomination—James P. Danly, of Tennessee, to be a Member of
the Federal Energy Regulatory Commission for the remainder of the term expiring
June 30, 2023” Returned to President (January 3, 2020).
PN1332 “Nomination—Katharine MacGregor, of Pennsylvania, to be Deputy
Secretary of the Interior” Received from President and referred to Committee
on Energy and Natural Resources (January 6, 2020).
S.2657 “Advanced Geothermal Innovation Leadership Act of 2019” Committee
on Energy and Natural Resources filed written report (January 7,
2020).
S.2702 “Integrated Energy Systems Act of 2019” Committee on Energy
and Natural Resources filed written report (January 7, 2020).
S.2714 “ARPA-E Reauthorization Act of 2019” Committee on Energy and
Natural Resources filed written report (January 7, 2020).
S.2799 “Nexus of Energy and Water for Sustainability Act of 2019” Committee
on Energy and Natural Resources filed written report (January 7,
2020).
S.2668 “Solar Energy Research and Development Act of 2019” Committee
on Energy and Natural Resources filed written report (January 9,
2020).
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Anti-fracking Group Proposes Limiting Colorado Oil and Gas Drilling,” Reuters (Jan. 7, 2020)
“Anti-fracking Group Proposes Limiting Colorado Oil and Gas Drilling,” Reuters (Jan. 7, 2020)
“2020: A Year of Pipeline Court Fights, with
One Lawsuit Headed to the Supreme Court,” InsideClimate News (Jan. 3, 2020)
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