Written by:
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Kaela Gray – Research Assistant
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Kaela Gray – Research Assistant
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Water Quality/
Pipelines: New York Denies Water Quality Permit for NESE Pipeline Project
On May 15, 2020, the New
York State Department of Environmental Conservation (Department) denied a Water Quality Certification application for the Northeast
Supply Enhancement Project (Project) proposed by the Transcontinental Gas Pipe
Line Company (Transco). Transco was
granted a certificate for the Project by the Federal Energy Regulatory
Commission on May 3, 2019, subject to the approval of a state-issued Water
Quality Certificate. On May 17,
2019, Transco submitted its Water Quality application to the Department and the
application received over 16,000 comments from the public. The Department denied the application on the
basis that Transco was unable to “demonstrate the Project’s compliance with all
applicable water quality standards.” The Department further found that impacts from
the Project would include resuspension of mercury and copper concentrations and
disturbance of shellfish beds. The
Department also stated in a press release that the Project was unnecessary to meet the state’s energy
needs. Transco, owned by Williams,
stated in a previous press release that the Project was “critical” for converting
heating oil to natural gas and for keeping up with demand.
Public Lands: U.S.
Department of Interior Ends Rent Hiatus for Solar and Wind Companies, Issues
Retroactive Bills
On May 18, 2020, Reuters
reported that the U.S. Department of the Interior issued retroactive rent
bills to solar and wind companies on public lands. According to Reuters, the Interior Department
put a hold on rent for solar and wind in 2018 to investigate company complaints
that public land rent rates were too high to make them competitive with rents
on private property. The Interior
Department’s Bureau of Land Management (BLM) calculates land rents for wind and
solar energy development in accordance with the Federal Land Policy and Management Act (FLPMA) and 43 CFR Part 2806. Reuters
reports that although the rent bills were a surprise to the Large-scale Solar
Association, some companies likely set aside funds in anticipation of
retroactive rent charges. According to
BLM’s website, BLM has approved 25 solar projects and 35 wind energy projects on public lands as of March 2018.
Oil and Gas Leasing:
Bureau of Land Management Temporarily Cuts Royalty Rates for Oil and Gas
Producers on Public Lands
On May 20, 2020, the
Associated Press (AP) reported that the Bureau of Land Management (BLM) began temporarily
reducing royalty rates for oil and gas producers on public lands. According to AP, the reduced rates are being
issued to provide relief to companies who cannot operate economically during
the Covid-19 pandemic and will last a maximum of 60 days. States with several federal oil and gas leases
include Utah, Wyoming, New Mexico, North Dakota, California, Colorado, Alaska,
and Montana. BLM has included Covid-19
national emergency guidance on their website for lease suspension and royalty rate reduction. Companies
wishing to seek a reduction in royalty rates or a lease suspension under “force
majeure” must fill out an application with the BLM state office and meet certain
requirements.
From the National Oil & Gas Law Experts:
George Bibikos, Oil + Gas Update - Texas Supremes Address
ORRIs, PA Supremes Poised to Decide O+G Lease-Busting Case, and Army Corps NWP
Goes Down (May 15, 2020)
John McFarland, Texas Supreme Court Weighs In On Application
of Rule Against Perpetuities to Overriding Royalty Reservations (May 18, 2020)
Michael Gerrard, New York, New Jersey Pipeline Decisions are
Hard Blow to Natural Gas and Strong Support for New York’s New Climate Law (May 18, 2020)
AGENCY PRESS
RELEASES—STATE/FEDERAL
Pennsylvania
Department of Energy Press Releases:
No new releases May
18–22, 2020.
U.S.
Department of Energy
U.S. Department of Energy Announces $53
Million for Small Business Research and Development Grants (May 21, 2020).
U.S.
Environmental Protection Agency
U.S. EPA Reaches $6.5 Million Settlement to
Clean Up Groundwater Contamination at Southern California Superfund Site (May 21, 2020).
U.S. EPA requires northern California steel
manufacturer USS POSCO Industries to improve oil spill prevention program (May 21, 2020).
EPA Awards $1.4 Million Grant to the
University of Puerto Rico to Reduce Diesel Emissions around the Port of San
Juan (May 19, 2020).
STATE ACTIONS—EXECUTIVE/LEGISLATIVE
Pennsylvania
Executive Agencies—Actions and Notices:
50 Pa.B. 2633, Control of VOC Emissions from Oil and Natural
Gas Sources, Proposed Rulemaking (May 23, 2020).
Pennsylvania
Legislature:
The House will reconvene
on Tuesday, June 1, 2020 at 1:00PM
The Senate will
reconvene on Monday, May 26, 2020 at 1:00PM unless sooner recalled by the Pres.
Pro Temp.
FEDERAL
ACTIONS—EXECUTIVE/LEGISLATIVE
Federal
Executive Agencies—Actions and Notices:
Environmental Protection
Agency
85 FR 31286 “Coal- and Oil-Fired Electric Utility Steam Generating
Units—Reconsideration of Supplemental Finding and Residual Risk and Technology
Review” Rule (May 22, 2020).
85 FR 31183 “Reformulated Gasoline and Conventional Gasoline: Requirements
for Refiners, Oxygenate Blenders, and Importers of Gasoline; Requirements for
Parties in the Gasoline Distribution Network (Renewal)” Notice (May 22,
2020).
85 FR 29882 “South Dakota; Infrastructure Requirements for the 2015 Ozone
National Ambient Air Quality Standards; Revisions to the Administrative Rules” Proposed
Rule (May 19, 2020).
Federal Energy Regulatory
Commission
85 FR 30951 “Revisions to Oil Pipeline Regulations Pursuant to the Energy
Policy Act of 1992” Notice of Annual Change in the Producer Price Index for
Finished Goods (May 21, 2020).
85 FR 30691 “Michael Mabee Related to Critical Infrastructure Protection
Reliability Standards” Complaint Notice (May 20, 2020).
Interior Department
Pipeline and Hazardous
Material Safety Administration
85 FR 30673 “Vapor Pressure of Unrefined Petroleum Products and Class 3
Materials” Proposed Rule for Hazardous Materials (May 20, 2020).
House
Energy and Commerce Committee Actions:
No new actions May
19-May 22, 2020.
Senate
Energy and Natural Resources Committee Actions:
S.3816 “A bill to authorize the Secretary of Energy to carry out a program
to lease underused facilities of the Strategic Petroleum Reserve, and for other
purposes.” Read twice and referred to the Committee on Energy and Natural
Resources (May 21, 2020).
“Tree
Deaths in Urban Settings Are Linked to Leaks from Natural Gas Pipelines Below
Streets,” Inside Climate News
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