Written by:
Sarah Straub – Research
Assistant
Jackie Schweichler –
Staff Attorney
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
LNG Infrastructure:
Fourteen States Petition Court to Review Agency Rule Allowing LNG To Be
Transported by Rail
On August 18, 2020,
fourteen states petitioned the U.S. Federal Court of Appeals for the District of Columbia to
review the final rule issued by the Pipeline and Hazardous Materials Safety
Administration (PHSMA), Department of Transportation. The final rule allows for liquefied natural
gas (LNG) to be transported by rail tank car and is scheduled to take effect on
August 24, 2020. The states allege that
the final rule is unlawful under the Administrative Procedure Act, the
Hazardous Materials Transportation Act, and the National Environmental Policy
Act; and they ask the court to vacate the rule. By letter dated January 13, 2020, many of the states that filed the lawsuit
wrote to the Deputy Administrator for PHSMA objecting to the final rule. The states argue that the rule creates
potential for an increased risk of catastrophic accidents and the rule does not
take into account potential environmental and climate impacts of transporting
LNG by rail.
Methane Emissions: EPA
Issues Two Final Rules Amending New Source Performance Standards for Oil and
Gas Industry
On August 13, 2020,
Environmental Protection Agency (EPA) Administrator Andrew Wheeler announced two final rules which amend New Source Performance Standards
(NSPS) for the oil and gas industry. As stated in a fact sheet issued by EPA, the new rules are meant to benefit small oil and
gas producers and should save the industry $100 million a year for the next
nine years. The first rule titled, Oil and Natural Gas Sector: Emission Standards for
New, Reconstructed, and Modified Sources Review, rescinds NSPS methane
requirements applicable to transmission, storage, production, and
processing. The first rule also establishes policy for Section III of the
Clean Air Act whenever EPA promulgates NSPS for air pollutants. EPA must find that the pollutant is a source
of dangerous air pollution prior to creating new NSPS. The second rule titled, Oil and Natural Gas Sector: Emission Standards for
New, Reconstructed, and Modified Sources Reconsideration, includes
amendments relating to fugitive emissions requirements, well site pneumatic
pump standards, certification of closed vent systems, and use of an alternative
means of emission limitation. (rule summary).
Pipelines: District
Court Denies Motion to Dismiss North Dakota’s Lawsuit for Pipeline
Reimbursement
On August 19, 2020, the U.S.
District Court for the District of North Dakota issued an order partially denying a motion from the U.S. Army
Corps of Engineers (Corps) to dismiss a lawsuit brought by North Dakota for
damages relating to pipeline protests. North Dakota brought suit alleging
that the Corps enabled protestors and had a duty to prevent harm to persons and
private property during the demonstrations against the Dakota Access Pipeline. North Dakota is asking for $38 million in
damages. The court dismissed North Dakota’s Good Samaritan negligence
claim, but will allow the state’s claims for public nuisance, negligence, gross
negligence, and civil trespass to move forward.
From the National Oil
& Gas Law Experts:
Charles Sartain, Industry Custom Determines Who Pays for a Well Emergency (August 20, 2020)
J. Porter Wiseman, Senate Energy Natural Resources Committee
Examines Cyberattack Readiness of the US Bulk-Power System (August 18, 2020)
John McFarland, The Global Energy Mix (August 18, 2020)
AGENCY PRESS RELEASES—STATE/FEDERAL
Pennsylvania Department
of Energy Press Releases:
DEP Reaches Agreement with CNX to Address 2019
Well Control Incident at Shaw Well (August 20, 2020)
DEP Assesses $355,000 Penalty to Sunoco for
2018, 2019 Mariner East 2 Violations (August 20, 2020)
Wolf Administration: Report Shows Clean Energy
Is a Leading Creator of Quality Jobs in Pennsylvania, Supports Development of
Job Investment Strategies to Benefit Workers, Economy, and Environment (August 17, 2020)
DEP Local Climate Action Program Helps
Community Leaders Address Climate Change in 139 Municipalities (August 17, 2020)
U.S.
Department of Energy
Department of Energy to Provide $21 Million
for Artificial Intelligence and Machine Learning Research on Fusion Energy (August 19, 2020)
Department of Energy Awards $13.5 Million for
Direct Air Capture Research
(August 18, 2020)
Department of Energy Announces $37 Million for
Artificial Intelligence and Machine Learning at DOE Scientific User Facilities (August 17, 2020)
STATE
ACTIONS—EXECUTIVE/LEGISLATIVE
Pennsylvania
Legislature:
HB 2797 “An Act amending the act of April 9, 1929 (P.L.343, No.176),
known as The Fiscal Code, in general budget implementation, repealing
provisions relating to Joint Legislative Air and Water Pollution Control and
Conservation Committee; and making a related repeal.” Referred to Environmental
Resources and Energy (August 18, 2020)
(House)
House Environmental
Resources and Energy
Public Hearing on Regional Greenhouse Gas on August 24, 2020 at
10:00 a.m. in Room 140 of the Main Capitol.
Senate Environmental
Resources and Energy
Public hearing to examine the economic and
employment impacts of Pennsylvania's participation in the Regional Greenhouse
Gas Initiative (RGGI) on August 25, 2020 at 1:00 p.m.
FEDERAL
ACTIONS—EXECUTIVE/LEGISLATIVE
Federal
Executive Agencies—Actions and Notices:
Environmental Protection
Agency
85 FR 50786 “National Oil and Hazardous Substances Pollution Contingency
Plan; National Priorities List: Deletion of the Fairfax St. Wood Treaters
Superfund Site” Rule (August 18, 2020).
85 FR 51556 “Control of Air Pollution From Airplanes and Airplane Engines:
GHG Emission Standards and Test Procedures” Proposed Rule (August 20,
2020).
Office of Energy
Efficiency and Renewable Energy
85 FR 50937 “Energy Conservation Program for Appliance Standards: Procedures
for Evaluating Statutory Factors for Use in New or Revised Energy Conservation
Standards” Final Rule (August 19, 2020).
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“New Lyrics, Same Tune For US Shale Producers” Argus Media
“Companies Offer Super-cool Solution to
Flaring Gas in The Permian”
Houston Chronicle
“14 States Sue Trump Administration Over Gas
Transportation Rule” The Hill
“Mountain Valley Pipeline to be Completed Next
Year” Shale Gas Reporter
“How Would a 2nd Lockdown Affect Oil Prices?” Rigzone
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