Brennan Weintraub - 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.
Pipelines: FERC Issues EIS for Northeast
Supply Enhancement Project
On January 25, 2019, the Federal Energy Regulatory
Commission (FERC) issued the final
environmental impact statement (EIS) for the Northeast Supply
Enhancement Project (Project). The
EIS addresses the environmental effects of miles of pipeline located in
Lancaster County, Pennsylvania; Middlesex and Monmouth Counties, New Jersey;
and Queens and Richmond Counties, New York. The EIS also evaluates
several facilities and the effects of compressor stations located in Chester
County, Pennsylvania and Somerset County, New Jersey. FERC concluded that the project will result
in some adverse environmental impacts that can be reduced to “less-than
significant levels” provided the implementation of recommended mitigation
measures. The project
is operated by Transcontinental Gas Pipeline Company, LLC and will provide
natural gas to Brooklyn, Queens, Staten Island, and Long Island.
PA Impact Fee: Pennsylvania Expected to See
Increase in Impact Fee Collections for 2018
On January 24, 2019, the Pennsylvania Independent
Fiscal Office released its estimate
of state impact fee collections for 2018 and projected a total amount of $247
million. The estimation indicates an overall increase of $37.4 million
from the previous year. The report found that approximately $15.1 million
of the increase was due to new wells, while the remaining $22.3 million
consisted of outstanding payments from wells previously involved in litigation. Of the $247 million generated by the impact fee in 2018, the Office
estimates that roughly $137 million will go to counties, municipalities, and
the Housing Affordability and Rehabilitation Enhancement Fund. The
remaining funds will go to the Marcellus Legacy Fund, Commonwealth Agencies,
and Conservation Districts/Commission.
GHG Emissions: Governor of New Mexico
Issues Executive Order on Greenhouse Gas Emissions
On January 29, 2019, the Governor of New Mexico
issued Executive
Order 2019-003, which establishes a goal of reducing the state’s greenhouse
gas emission levels by 45% during the twenty-five year period from 2005 to 2030. To achieve this goal, the order requires the creation of a Climate
Change Task Force comprised of state agency heads, which will set emissions
limits for pollutants and seek to reduce vehicle emissions, in particular. The
order also requires that the Environment Department and Energy, Minerals, and
Natural Resources Department jointly develop a program to reduce methane
emissions from oil and gas activities in the state.
State Regulation: North Dakota Commission
Alters Crude Oil Conditioning Requirements
On January 19, 2019, the Industrial Commission of
North Dakota announced
that it had amended crude oil conditioning requirements in the state.
Notably, the amendments will alter the frequency of vapor pressure testing and
the time of year in which such testing occurs. This, the Commission
said, would improve the efficiency of testing while continuing to address
concerns about safety and marketability of crude oil.
State Regulation: Colorado Supreme Court
Denies Motion to Vacate Decision Regarding Proposed Oil and Gas Rule
On January 28, 2019, the Colorado Supreme Court denied
a motion to vacate or reconsider and modify its decision in a case
regarding a proposed rule the Colorado Oil and Gas Conservation Commission
(Commission) declined to consider (Martinez v. Colorado Oil & Gas
Conservation Commission, No. 2017SC297). The plaintiffs are young
residents of Colorado who petitioned
the Commission to issue a rule that would suspend the issuance of hydraulic
fracturing permits until it could be shown that the drilling process will not
negatively impact human health and the environment. The Colorado
Supreme Court determined that the Commission properly declined the
rulemaking under the Colorado Oil and Gas Conservation Act. The
plaintiffs filed a motion
to vacate the decision in light of the order vacating the dissenting
opinion of district court judge Laurie Booras. The Colorado Supreme Court
relied on and cited Judge Booras’s dissent in its decision. Judge
Booras’s dissent was vacated after the Colorado Commission on Judicial
Discipline determined that the judge had engaged in activities undermining her
“integrity, independence, and impartiality.” A timeline and additional
documents related to this case can be found here.
From the National Oil & Gas Law
Experts:
George Bibikos, At
the Well Weekly, (January 25, 2019)
Charles Sartain, Texas
Court Addresses Bad Acts in a Lease Play, Energy and the Law (January
31, 2019)
Pennsylvania Legislation:
HB
178: would amend Oil and Gas Act to include a natural gas tax on
unconventional operations. (Referred
to House Environmental Resources and Energy - Jan. 28, 2019)
HB
187: would dedicate a portion of Pennsylvania’s impact fee to communities
with impacts from pipelines (Referred
to House Environmental Resources and Energy - Jan. 28, 2019)
HB
247: would allow unconventional well bores to cross multiple units (Referred
to House Environmental Resources and Energy - Jan. 28, 2019)
Follow us on Twitter at PSU Ag &
Shale Law (@AgShaleLaw)
to receive ShaleLaw HotLinks:
“Court
weighs challenge to FERC on Mountain Valley” - Energywire
“Drillers
are easing off the gas” - Wall Street Journal
“Tough
times for sand miners” - Hart Energy
“Texas
oil production strong despite recent price drop” - Houston Chronicle
“Trump
considers action to limit states’ ability to block pipelines” - Shale Gas
Reporter
“Oil
trains make comeback as pipeline bottlenecks worsen” - Wall Street Journal
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This week we published one new Shale Law
in the Spotlight article: Shale
Law in the Spotlight – Atlantic Coast Pipeline: Overview of Litigation
Regarding the Pipeline Construction (Part 3 of 3).
Check the January
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