Written by:
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Brennan Weintraub – Research Assistant
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Brennan Weintraub – Research Assistant
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Water Quality: Supreme
Court Vacates Kinder Morgan Pipeline Spill Case in Light of Recent Clean Water
Act Decision
On May 4, 2020, the U.S.
Supreme Court ordered that a Kinder Morgan pipeline leak case be
vacated and remanded in light of a recent Clean Water Act decision (Kinder
Morgan Energy Partners, L.P. v. Upstate Forever and Savannah Riverkeeper,
No. 18-268). The case was remanded to
the U.S. Court of Appeals for the Fourth Circuit following the Supreme Court’s recent decision in County of Maui v. Hawaii Wildlife Fund,
590 U. S. ___ (2020). In 2014, Kinder
Morgan’s Plantation pipeline ruptured and leaked 370,000 gallons of gasoline
and diesel into soil, groundwater, and a nearby stream. Two years after the spill, environmental groups brought suit against
Kinder Morgan under the Clean Water Act, which requires a permit for the
“discharge of pollutants into navigable waters.” The district court dismissed the complaint,
but the Fourth Circuit reversed, holding that the Clean Water Act covers the
spills into navigable waters wherever there is a “direct hydrological
connection.” Kinder Morgan filed their Petition for Writ of Certiorari asking the Supreme Court
to determine if the pipeline leak constituted a discharge under the Clean Water
Act. The
Supreme Court remanded the case in light of County of Maui, which held
that the Clear Water Act requires a permit when there is a direct discharge
into navigable waters or the “functional equivalent of a direct discharge.”
Production and Operation:
Texas Railroad Commission Issues Exception for Underground Storage of Liquid
Hydrocarbons
On May 5, 2020, the Texas
Railroad Commission approved an exception to the Texas Administrative Code
for underground storage of liquid hydrocarbons. The exception allows applicants to store crude
oil in underground geological formations other than salt formations. The need for additional storage capacity is a
result of decreased demand caused of COVID-19. The Commission noted that an applicant will
have to demonstrate that the storage facility will be maintained to prevent
waste or escape of crude oil, avoid pollution of groundwater, and prevent
danger to life or property. The
exception will remain in effect for one year, and any crude oil stored in a
facility other than a salt formation will have to be removed within five years.
The open meeting where the exception was
discussed and approved is available here.
Infrastructure: Virginia
Commission Confirms Process for Certification of Natural Gas Facilities
On May 5, 2020, the
Virginia State Corporation Commission denied a motion from various environmental groups to
suspend the procedure schedule and continue the public comment period regarding
the certification of natural gas facilities. The Commission issued a procedural schedule
for the case after Virginia Natural Gas filed for approval and certification of
natural gas facilities. According to the
Commission, the schedule will continue as planned; the Commission will hear
public testimony on May 12, 2020, and hold an evidentiary hearing on May 13,
2020. The Commission stated that they have implemented procedural
accommodations to allow public witness testimony while adhering to social
distancing requirements.
Production and
Operation: U.S Companies Plan to Curb Oil Production by 616,000 Barrels Per Day
in May
On May 7, 2020, Rystad
Energy issued a press release estimating U.S. oil production will be curbed
by 616,000 barrels per day (bpd) in May and 655,000 bpd in June. Rystad Energy Research and Analysis
interpreted guidance released from 19 producers to reach the estimations. Rystad summarized specific cuts in production
from various oil producers including Chevron, ExxonMobil, and ConocoPhillips,
which plan to cut production by 32-42%. Several
smaller producers will also contribute to cuts through shut-ins of higher-cost
wells and reducing output from other wells.
From the National Oil & Gas Law Experts:
Josh Downer and Conrad
Hester, Prorationing No
Longer on the Table, Railroad Commission Enacts Other Temporary Relief (May 6, 2020)
AGENCY PRESS RELEASES—STATE/FEDERAL
Pennsylvania
Department of Energy Press Releases:
No new releases May
4–11, 2020.
U.S.
Department of Energy
No new releases May
4–11, 2020.
U.S.
Environmental Protection Agency
No new releases May
4–11, 2020.
STATE ACTIONS—EXECUTIVE/LEGISLATIVE
Pennsylvania
Executive Agencies—Actions and Notices:
No actions May 11, 2020.
Pennsylvania
Legislature:
FEDERAL
ACTIONS—EXECUTIVE/LEGISLATIVE
Federal
Executive Agencies—Actions and Notices:
Federal Energy
Regulatory Commission
85 FR 26971 “Rockies Express Pipeline, LLC; Notice of
Petition for Declaratory Order” Notice (May 6, 2020).
85 FR 27736 “Jordan Cove Energy Project, LP, Pacific
Connector Gas Pipeline, LP; Notice of Petition for Declaratory Order” Notice
(May 11, 2020).
Foreign-Trade Zones
Board
85 FR 27206 “Foreign-Trade Zone (FTZ) 116-Port Arthur,
Texas, Notification of Proposed Production Activity, Golden Pass LNG Terminal
LLC (Liquified Natural Gas Processing), Port Arthur, Texas” Notice (May
7, 2020).
House
Energy and Commerce Committee Actions:
H.B.6707 “To Amend the Mineral Leasing Act and the Outer
Continental Shelf Lands Act to Limit the Authority of the Secretary of the
Interior to Reduce Certain Royalties, to Amend the CARES Act to Limit the
Provision of Assistance to Certain Businesses, to Impose a Moratorium on
Certain Oil and Natural Gas Lease Sales, the Issuance of Coal Leases, and
Modifications to Certain Regulations, to Extend Certain Public Comment Periods,
and for Other Purposes” Introduced in House (May 5, 2020).
Senate
Energy and Natural Resources Committee Actions:
S.3611 “To Amend the Mineral Leasing Act and the Outer
Continental Shelf Lands Act to Limit the Authority of the Secretary of the
Interior to Reduce Certain Royalties, to Amend the CARES Act to Limit the
Provision of Assistance to Certain Businesses, to Impose a Moratorium on
Certain Oil and Natural Gas Lease Sales, the Issuance of Coal Leases, and
Modifications to Certain Regulations, to Extend Certain Public Comment Periods,
and for Other Purposes” Read Twice and Referred to the Committee on Energy
and Natural Resources (May 5, 2020)
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“When the Flames Go Out, the Permian’s Methane Problem Worsens,” Bloomberg
“When the Flames Go Out, the Permian’s Methane Problem Worsens,” Bloomberg
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