Jackie Schweichler – Staff Attorney
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Water Quality: Wyoming
Department of Environmental Quality Publishes Report on Pavillion Water Wells
On December 23, 2019,
the Wyoming Department of Environmental Quality (WDEQ) published findings as
part of the investigation into the drinking water wells in Pavillion,
Wyoming. The report is entitled, Final Pavillion, Wyoming Gas Field Domestic
Water Wells Report on Recommendations for Further Investigation Pavillion,
Wyoming. In the report,
WDEQ focused on two recommendations, including additional sampling for
bacterial populations which involved evaluating geochemical/biomarkers such as
total dissolved solids, sulfide, and methane. The report also analyzed
water samples for volatile organic compounds, semi-volatile organic compounds,
and organochlorine pesticides in order to “achieve lower method detection
limits.” This report was prepared as a
response to two of the ten recommendations presented in WDEQ’s 2016 Final
Report. The Wyoming Oil and Gas Conservation Commission will analyze the
remaining recommendations.
Methane Emissions: New
Mexico Releases Report on Methane Emissions Reduction Strategy
On December 19, 2019,
the New Mexico Methane Advisory Panel released their draft technical report describing potential strategies for methane
reduction in the state. The Methane Advisory Panel consists of 27
individuals representing members of the oil and gas industry, technical
laboratory professionals, university researchers, and environmental
organizations. The report was prepared in response to New Mexico Governor
Michelle Lujan Grisham’s Executive Order to create a regulatory framework to
reduce methane emissions. The report addresses pneumatic controllers, leak
detection and repair, dehydration units, compressors and engines, venting and
flaring, and storage. For each section, the report addresses the process,
equipment, costs involved, sources of emissions, implementation, challenges,
and the potential path forward.
National Energy Policy:
Global Energy Institute Publishes Report on Impact of National Hydraulic
Fracturing Ban
On December 19, 2019,
the Global Energy Institute (GEI) published a new analysis of the potential impact of a hydraulic fracturing
ban. The report was prepared as a response to statements made by
presidential candidates that they intend to ban hydraulic fracturing if
elected. GEI examined the benefits of hydraulic fracturing and analyzed
the impact of a ban on energy security, manufacturing, the overall U.S.
economy, and individual states. The report states than a hydraulic
fracturing ban would phase out 19 million jobs by 2025 and “reduce the U.S.
Gross Domestic Product (GDP) by $7.1 trillion.”
According to GEI, during that time frame Pennsylvania would lose 600,000
jobs and residents would experience a cumulative cost-of-living increase of
$4,654. The report is entitled, “What if Hydraulic Fracturing was Banned? The
Economic Benefits of the Shale Revolution and the Consequences of Ending It.”
Pipelines: Ohio Court
Affirms Dismissal of Lawsuit Against Rover Pipeline
On December 9, 2019, the
Court of Appeals Stark County, Ohio Fifth Appellate District issued an opinion
affirming the dismissal of a lawsuit against Rover Pipeline, LLC (Rover) (State of Ohio ex rel. Yost v. Rover Pipeline, L.L.C., 2019-Ohio-5179). The State of Ohio brought this lawsuit
alleging that Rover had illegally released millions of gallons of drilling
fluids into state waters during construction of the Rover Pipeline. Ohio
alleged that Rover violated Ohio’s water quality standards and failed to obtain
the necessary permits and certification.
Under the Clean Water Act (CWA), projects that will affect water quality
are subject to section §401 Water Quality Certification by the state. In
response, Rover argued that states must act within one year of receiving an
application for certification in order to preserve their CWA authority. The
court found that Ohio did not act within one year and, accordingly, dismissed
the lawsuit. In the present order, the
appeals court affirmed the dismissal, stating that Ohio waived its rights under
the CWA.
International
Development: European Commission Publishes European Green Deal
On December 11, 2019,
the European Commission unveiled The European Green Deal, a strategy aimed at combating climate and environmental
challenges. The strategy includes new objectives for emissions reductions
and directs the Commission to propose a new European “Climate Law” by March
2020. The plan emphasizes transitioning energy reliance to renewable and
sustainable alternative fuels. The
strategy also recommends the cessation of fossil fuel subsidies and directs the
Commission to close tax loopholes for aviation and maritime fuels.
From the National Oil & Gas Law Experts:
John McFarland, Significant Oil & Gas Cases in 2019, and
Pending Cases to Watch in 2020 (Jan. 6, 2020)
National Regulatory Actions
Federal Energy Regulatory Commission
Pennsylvania Actions and Notices
Pennsylvania State Senate
Pennsylvania Department of Environmental Protection
Pennsylvania DEP
Issues $30.6 Million Civil Penalty to ETC Northeast Pipeline for Revolution
Pipeline Violations (Jan. 3, 2020)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
"US Crude Imports Fall to Lowest Point Since 1994: EIA” - S&P Global
"US Crude Imports Fall to Lowest Point Since 1994: EIA” - S&P Global
"Pipeline Payday: How Builders Win Big,
Whether More Gas Is Needed or Not" - Inside Climate News
"As Shale Wells Age, Gap Between Forecasts and Performance Grows" - Wall Street Journal
Federal Agencies Are Required To Consult With Tribes About Pipelines. They Often Don’t." - Grist
"U.S. Shale Producers to Tap Brakes in 2020 After Years of Rapid Growth" - Reuters
"Why Are Companies Leaving the Marcellus Shale?" - Shale Gas Reporter
"As Shale Wells Age, Gap Between Forecasts and Performance Grows" - Wall Street Journal
Federal Agencies Are Required To Consult With Tribes About Pipelines. They Often Don’t." - Grist
"U.S. Shale Producers to Tap Brakes in 2020 After Years of Rapid Growth" - Reuters
"Why Are Companies Leaving the Marcellus Shale?" - Shale Gas Reporter
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