Written by:
Jackie Schweichler –
Staff Attorney
Sarah Straub – Research
Assistant
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Pipelines: Dakota Access
Permitted to Increase Pipeline Capacity
On October 14, 2020, the
Illinois Commerce Commission issued an order allowing the Dakota Access Pipeline to install more pumping
stations along the pipeline at various locations in Illinois. The Commission found that the additional pump
stations will help to nearly double the pipeline’s capacity to transport crude
oil from 570,000 barrels per day to up to 1.1 million barrels per day. The additional pump stations will be located
in Hancock County, Massac County, and near Patoka, Illinois. Dakota Access Pipeline alleged the need to
increase capacity of the pipeline in order to meet growing demands of the
public. The company argued that
Illinois consumes the sixth most petroleum in the nation and that this pipeline
is essential to meeting that need.
Pipelines: FERC Issues
Order Authorizing Construction of New Double E Pipeline
On October 15, 2020, the
Federal Energy Regulatory Commission (FERC) issued an order authorizing the construction and operation of a new pipeline, the
Double E Pipeline. The new pipeline is a
joint venture entered into between Summit Permian Transmission, LLC and
ExxonMobil Permian Double E Pipeline, LLC. The proposed pipeline will travel 116.1 miles
from an existing plant in Eddy County, New Mexico to Pecos County, Texas. The pipeline is estimated to have permanent
impacts on approximately 967 acres of land, while 72% of the project is
anticipated to run parallel or adjacent to existing utility rights-of-way. The Commission’s order found that Double E had
demonstrated a need for the pipeline’s construction project, had shown that the
project would not impose adverse economic impacts on existing pipelines or
their customers, and had established that the pipeline’s benefits outweighed
any adverse economic impacts that might be imposed on landowners and nearby
neighborhoods. The Commission’s order
also denied an environmental group’s request that an Environmental Impact
Statement be submitted, finding that the Environmental Assessment determined
that the pipeline project would not significantly impact air quality, state and
federal lands, or Karst formations (soluble landscapes which may lead to
sinkholes, caves, and underground streams). One member of the Commission dissented from
the opinion stating that he believed the Commission’s order violated the
Natural Gas Act and the National Environmental Policy Act. In a statement by Summit Midstream, the company stated that it expects to receive
FERC’s notice to proceed with construction within 90 days after the company has
completed outstanding necessary requirements, files an implementation plan with
FERC, and receives a right-of-way grant from the Bureau of Land
Management.
Public Lands: Government
Accountability Office Report Suggests Review of Interior Department’s Temporary
Royalty Relief Program
On October 6, 2020, the
Government Accountability Office (GAO) published a report that recommended the
Bureau of Land Management (BLM) evaluate the methods they employed in extending
temporary relief regarding royalty payments to oil and gas producers during the
pandemic. During the spring of 2020, BLM
developed a temporary program that allowed oil and gas producers to apply for
relief from their responsibility to pay royalties on some oil and gas leases on
federal lands. The program aimed to
avoid permanent losses because of the downturn in the domestic oil markets. GAO advised that BLM’s administration of the
relief program was inconsistent with BLM failing to establish that some
operators needed the relief to avoid oil and gas well shutdowns. GAO estimated that the relief program may have
resulted in the loss of approximately $4.5 million in revenue. GAO made the following two recommendations:
(1) that BLM’s Director reevaluate the temporary royalty relief program; and
(2) that BLM’s handbook be updated “to provide specific, consistent, and
transparent policies and procedures for royalty relief.”
Wastewater Disposal:
Wyoming Oil and Gas Conservation Commission Approves Rule Change for
Underground Disposal Wells
On October 13, 2020, the
Wyoming Oil and Gas Conservation Commission approved a rule change regarding underground disposal wells used by oil and gas
operations to dispose of produced fluids. The regulation comes as a result of recent
Wyoming legislation allowing the Commission to regulate both commercial and
noncommercial underground disposal wells. The Commission received two comments regarding bonding requirements and amended the proposed rule in
order to allow for adaptation of the required bond to the individual well. The approved rule will now be reviewed by the
Wyoming Secretary of State and Governor’s office. You can watch the Commission’s meeting
discussing the proposed rule and received comments here at approximately the 51
minute point.
Public Health: Harvard
Publishes Study Examining Increased Radiation Near Unconventional Oil and Gas
Development
On October 13, 2020
Harvard researchers published a study in the journal Nature Communications which found that radiation
levels downwind of unconventional oil and gas wells tend to be higher than
radiation levels found near conventional oil and gas wells. Researchers
collected data from across the United States from 2001 through 2017, analyzing
320,796 measurements from the Environmental Protection Agency’s RadNet
monitors, which monitor background radiation levels in the environment. This data was then compared with oil and gas
well production data collected by the U.S. Energy Information Administration. The researchers concluded that an increase in
radiation released from unconventional oil and gas wells may result in adverse
health effects in nearby communities. The
largest increases of radiation were found in the Marcellus and Utica shale
fields as opposed to the fields in Texas and the Dakotas. The researchers noted that further studies are
needed to more completely examine and understand the connection between
unconventional drilling, increased radiation, and the health impacts which
affect nearby neighborhoods.
From the National Oil
& Gas Law Experts:
Charles Sartain, On the Way to a Renewable Energy Future: What
Could Possibly Go Wrong? (October 14,
2020).
Romany Webb, California Blackouts Highlight Need To Better
Plan For Climate Impacts, (October 12, 2020).
Romany Webb, Trump v. The Climate, Round Two: What Four
More Years Of Trump Might Mean For Climate Regulation, (October 15, 2020).
Agency Press Releases -
State/Federal
Pennsylvania Department
of Energy Press Releases:
Wolf Administration Announces Winners of the
2020 Governor’s Awards for Environmental Excellence (October 14, 2020).
U.S. Environmental
Protection Agency Press Releases:
EPA Finalizes Procedures for Alternate Liner
Demonstrations, Allows for More Site-Specific Management of Coal Ash (October 16, 2020).
U.S. EPA requires Lanai Oil Company to protect
Hawaiian waterways from oil spills (October 14, 2020).
State Actions - Executive/Legislative
Pennsylvania Executive
Agencies—Actions and Notices:
50 Pa.B. 5821, Pennsylvania Public Utility Commission,
“Application of Columbia Gas of Pennsylvania, Inc. for approval of the
abandonment of natural gas service to one residential premise located in
Allegheny County.” (October 17, 2020).
Pennsylvania
Legislature:
HB 2925 “An Act amending the act of July 7, 1980 (P.L.380, No.97), known
as the Solid Waste Management Act, in general provisions, further providing for
definitions; making an inconsistent repeal; and making editorial changes.” Referred
to Environmental Resources and Energy, (October 14, 2020).
HB 2826 “An Act amending Title 58 (Oil and Gas) of the Pennsylvania
Consolidated Statutes, in development, further providing for relationship to
solid waste and surface mining.” Referred to Environmental Resources and
Energy, (October 14, 2020).
SB 619 “An Act amending the act of June 22, 1937 (P.L.1987, No.394),
known as The Clean Streams Law” Voting Meeting Scheduled for October 20,
2020
Federal Actions -
Executive/Legislative
Federal Executive
Agencies—Actions and Notices:
Energy Department
85 FR 64452 “Energía Costa Azul, S. de R.L. de C.V.; Application To Amend
Long-Term Authorization To Export Natural Gas to Mexico and To Re-Export
Liquefied Natural Gas From Mexico to Non-Free Trade Agreement Nations” Notice
of application; Comment period ends December 14, 2020 (October 13,
2020).
85 FR 65392 “Golden Pass LNG Terminal LLC; Application To Amend Export Term
Through December 31, 2050, for Existing Non-Free Trade Agreement Authorization”
Notice of application (October 15, 2020).
85 FR 65391 “Change In Control; Sabine Pass Liquefaction, LLC” Notice of
change in control (October 15, 2020).
85 FR 65795 “Cheniere Marketing, LLC and Corpus Christi Liquefaction, LLC;
Application for Blanket Authorization To Export Liquefied Natural Gas to
Non-Free Trade Agreement Countries on a Short-Term Basis” Notice of
application (October 16, 2020).
85 FR 65797 “Delfin LNG LLC; Application To Amend Export Term Through
December 31, 2050, for Existing Non-Free Trade Agreement Authorization” Notice
of application (October 16, 2020).
Environmental Protection
Agency
85 FR 65800 “Environmental Impact Statements; Notice of Availability” Notice
(October 16, 2020).
Federal Energy
Regulatory Commission
85 FR 64454 “Northern Natural Gas Company; Notice of Schedule for Environmental
Review of the Lake City 1st Branch Line Abandonment and Capacity Replacement
Project” Notice (October 13, 2020).
85 FR 64455 “Midship Pipeline Company, LLC; Notice of Initiation of Section 5
Proceeding” Notice (October 13, 2020).
85 FR 65039 “Southern Star Central Gas Pipeline, Inc.; Notice of Application”
Notice (October 14, 2020).
85 FR 65041 “ANR Pipeline Company; Columbia Gas Transmission, LLC; Columbia
Gulf Transmission, LLC; Notice of Initiation of Section 5 Proceeding” Notice
(October 14, 2020).
85 FR 65035 “Rover Pipeline, LLC; Notice of Initiation of Section 5
Proceeding” Notice (October 14, 2020).
85 FR 65394 “Columbia Gulf Transmission, LLC; Notice of Application and
Establishing Intervention Deadline” Notice (October 15, 2020).
National Resources
Revenue Office
85 FR 65395 “Agency Information Collection Activities; Collection of Monies
Due the Federal Government; and Processing Refund Requests Related to
Overpayments Made to ONRR” Notice of information collection; request for
comment; comment period ends December 14, 2020 (October 15, 2020).
Pipelines and Hazardous
Materials Safety Administration
85 FR 65142 “Pipeline Safety: Class Location Change Requirements” Proposed
rulemaking; Comment period ends December 14, 2020 (October 14, 2020).
Surface Mining
Reclamation and Enforcement Office
85 FR 65422 “Agency Information Collection Activities; Certification of
Blasters in Federal Program States and on Indian Land” Notice of collection
information; request for comment; comment period ends December 14, 2020 (October
15, 2020).
85 FR 65422 “Agency Information Collection Activities; Permanent Program
Performance Standards-Surface and Underground Mining Activities” Notice of
collection information; request for comment; comment period ends December 14,
2020 (October 15, 2020).
85 FR 65421 “Agency Information Collection Activities; Underground Mining
Permit Applications-Minimum Requirements for Reclamation and Operation Plan” Notice
of collection information; request for comment; comment period ends December
14, 2020 (October 15, 2020).
House Energy and
Commerce Committee Actions:
H.R. 8582 “To amend the Clean Air Act to establish a tradeable performance
standard covering emissions from the electricity generation and industrial
sectors, and for other purposes.” Referred to the House Committee on Energy
and Commerce (October 13, 2020).
H.R. 8605 “To authorize the Secretary of Health and Human Services, in
consultation with the Administrator of the Environmental Protection Agency to
award grants to certain entities to conduct research on, or to establish,
wastewater surveillance and other early warning systems, and for other
purposes.” Referred to the House Committee on Energy and Commerce (October
16, 2020).
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“OPEC Cuts 2021 Oil Demand Forecast Again As
Virus Cases Rise” Reuters
“DOE Report Indicates Need For Innovation,
While Recognizing Role Of Natural Gas, Oil In U.S. Energy Needs” Daily Energy Insider
“Wyoming's Energy Sectors Slogging Through Slow
Recovery, New Report Shows”
Casper Star Tribune
“Natural Gas Is Key To Pa.’s Economic Future” Pittsburgh-Post Gazette
“Work on Mountain Valley Pipeline Can Resume,
FERC Rules” The Roanoke
Times
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