Showing posts with label Crude oil. Show all posts
Showing posts with label Crude oil. Show all posts

Tuesday, May 19, 2020

Shale Law Weekly Review – May 18, 2020

Written by:

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.       

National Energy Policy/LNG Exports: Department of Energy Issues Proposed Rule for Changes to NEPA Implementing Procedures

On May 1, 2020, the U.S. Department of Energy (DOE) issued a Notice of Proposed Rulemaking for changes to the Department’s National Environmental Policy Act (NEPA) implementing procedures.  The proposed rule states that DOE intends to amend its policies regarding NEPA review of certain imports and exports under the Natural Gas Act.  DOE is proposing changes to its procedures based on the legal principle found in Pub. Citizen and Sierra Club that NEPA review does not include review of environmental effects that an agency has no discretion over.  See Dep’t of Transp. v. Pub. Citizen, 541 U.S. 752 (2004) and Sierra Club v. Fed. Energy Regulatory Comm’n, 827 F.3d 36 (D.C. Cir. 2016).  DOE stated that section 3 of the Natural Gas Act does not give DOE discretion over authorizing natural gas imports because they have already been determined to be in the public interest.  Further, DOE explained that they do not have discretion over the construction and operation of LNG export facilities.  Therefore, DOE proposes to alter its NEPA review to exclude effects of export facilities and limit its review of environmental effects to “at or after the point of export.”  DOE is accepting public comments on the proposal until June 1, 2020.

 

Pipelines: Federal District Court Amends Ruling on Army Corps NWP 12 Permits

On May 11, 2020, the U.S. District Court for the District of Montana amended a previous summary judgment order regarding the U.S. Army Corps of Engineers (Corps) ability to issue Nationwide Permit 12 (NWP 12).  In the previous order, the court vacated NWP 12 and enjoined the Corps from authorizing any dredge or fill activities under NWP 12 until the Corps complied with the Endangered Species Act and consulted with U.S. Fish and Wildlife Service (FWS).  Following a motion for stay and request to revise the remedy filed by the Corps and TC Energy, the court partially amended its previous order.  The amendment allows the NWP 12 to remain in place for “non-pipeline construction activities and routine maintenance, inspection, and repair activities” on existing projects.  The revised order also allows the Corps to authorize dredge or fill activities for current projects.  However, the NWP 12 remains vacated with regards to new oil and gas pipeline construction pending consultation with FWS and compliance with environmental laws.  The Corps also remains enjoined from authorizing dredge or fill activities on new pipeline construction.

 

Crude Oil by Rail: PHMSA Preempts Washington State’s Vapor Limit for Transportation of Crude Oil by Rail

On May 11, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) preempted the state of Washington’s vapor pressure requirement and Advance Notice of Transfer for transportation of crude oil by rail car.  Montana and North Dakota had previously filed an application asking PHMSA to review Washington’s requirements, alleging that the rules were too burdensome to allow rail transportation of oil from the Bakken region.  PHMSA published a notice of the application in the Federal Register and received over 4,000 comments from a variety of interested groups.  After review, PHMSA found that Washington’s vapor pressure limit created a classifying scheme and handling requirement that was not substantively the same as existing federal regulations.  Further, PHMSA found that the limit was an obstacle to complying with the Federal Hazardous Material Transportation Law and the Hazardous Materials Regulations.  Therefore, PHMSA ruled that Washington’s vapor pressure regulation was preempted.  PHMSA also noted that it could not make a determination regarding preemption of Washington’s Advance Notice of Transfer requirement because the administrative record was insufficient.

 

Municipal Regulation: City Council in Colorado Approves Changes to Zoning for Oil and Gas Development

On May 12, 2020, Broomfield City Council in Colorado approved changes to its zoning code limiting oil and gas development in certain areas.  The city council proposed changes to the zoning code after the Colorado legislature passed SB19-181, authorizing local government to regulate the location and siting of oil and gas facilities.  The approved changes consist of deleting specific language from sections of zoning regulations that permitted oil or gas wells in certain districts.  Other sections have been amended to allow oil and gas wells except on “public or private open lands or . . . a public or private park.”  Further, the approved changes increase the current buffer between oil and gas development and residential neighborhoods from 1,000 feet to 2,000 feet.  More specifically, the 2,000 foot buffer will be required near athletic fields, child care facilities, correctional facilities, dwelling units, hospitals, schools, and undeveloped residential lots among other places.

 

From the National Oil & Gas Law Experts:

George Bibikos, PA Supreme Court Agrees to Hear O+G Lease Expiration Case (May 15, 2020)

 

AGENCY PRESS RELEASES—STATE/FEDERAL

Pennsylvania Department of Energy Press Releases:

No new releases May 11–18, 2020.

 

U.S. Department of Energy

The U.S. Department of Energy today released a Request for Proposals (RFP) to purchase up to one million barrels of sweet crude oil for the SPR (May 14, 2020).

Department of Energy Announces $30 Million for Innovation in Critical Materials Processing Technologies (May 14, 2020).

U.S. Department of Energy Launches $230 Million Advanced Reactor Demonstration Program (May 14, 2020)

 

U.S. Environmental Protection Agency

EPA completes oil spill cleanup at Duck Creek in Toledo, Ohio (May 13, 2020).

 

 

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices:

No actions May 18, 2020.

 

Pennsylvania Legislature:

HB 1106, “Energize PA Legislative Package” Removed from Table (May 13, 2020)

 

 

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies—Actions and Notices:

 

Environmental Protection Agency

85 FR 27979 “National Oil and Hazardous Substances Pollution Contingency Plan; National Priorities List: Partial Deletion of the Omaha Lead Superfund Site” Proposed Rule (May 13, 2020).

85 FR 29678 “Air Plan Approval; Massachusetts; Negative Declaration for the Oil and Gas Industry” Proposed Rule (May 18, 2020)

85 FR 29628 “Air Quality State Implementation Plans; APprovals and Promulgations: Massachusetts; Negative Declaration for the Oil and Gas Industry” Rule (May 18, 2020).

 

Federal Energy Regulatory Commission

85 FR 29444 “Dominion Energy Overthrust Pipeline, LLC” Request Under Blanket Authorization (May 15, 2020)

 

Justice Department

85 FR 28984 “Clean Water Act and Oil Pollution Act” Proposed Modification of Consent Decree ─ Notice (May 14, 2020).

 

Pipeline and Hazardous Material Safety Administration

85 FR 29511 “Washington Crude oil by Rail Volatility Requirements” Notice (May 15, 2020)

 

 

House Energy and Commerce Committee Actions:

No new actions May 11-May 18, 2020.

 

Senate Energy and Natural Resources Committee Actions:

S.3711 “A bill to amend the Energy Independence and Security Act of 2007 to reauthorize the Energy Efficiency and Conservation Block Grant Program, and for other purposes.” Referred to the Committee on Energy and Natural Resources (May 13, 2020)

S.3688 “A bill to amend the Federal Power Act to authorize the Federal Energy Regulatory Commission and the Secretary of Energy to offer assistance in securing the assets of the owners and operators of energy infrastructure against threats and increasing the security of the electric grid, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (May 12, 2020)

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:

“Trump administration to buy 1 million barrels of oil for national stockpile,” The Hill

“Energy regulator declines states' request for moratorium on pipeline approvals,” The Hill

“Oil bust takes heavy toll on Texas county,” National Public Radio

“Qatar Has a Lose-Lose Problem in Global Gas Fight,” Rigzone

“Yet Another State Quietly Moves To Criminalize Fossil Fuel Protests Amid Coronavirus,” Huffington Post

“Lawsuit says western Massachusetts pipeline approval ignored climate risk,” Energy News US

“Natural Gas Exports Slow as Pandemic Reduces Global Demand,” New York Times

“Does New York need a new natural gas pipeline? It’s about to decide,” Grist

“10 states ask energy regulators to postpone pipeline approvals amid pandemic,” The Hill

“States ask Trump administration to pay laid off oil workers to plug abandoned wells,” Reuters

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page, iTunes, Spotify, or Stitcher.

Check out the February Agricultural Law Brief ! Each month we compile the most significant legal developments in agriculture. If you’d like to receive this update via email, check out our website and subscribe!

Monday, January 20, 2020

Shale Law Weekly Review - January 20, 2020

Written by:
Chloe Marie – Research Specialist 
Jackie Schweichler – Staff Attorney
Audry Thompson – Research Assistant
The following information is an update of recent local, state, national and international legal developments relevant to shale gas. 
Climate Change: Federal Court Dismisses Climate Change Lawsuit for Lack of Standing
On January 17, 2020, the U.S. Court of Appeals for the 9th Circuit dismissed the Juliana v. United States climate change case, sending it back to the district court on the grounds that the children and youth plaintiffs did not meet Article III standing requirements (Juliana et al. v. United States of America, No. 6:15-cv-01517).  In September 2015, a group of youth and children brought legal actions in the U.S. District Court for Oregon against the United States, alleging that the federal government failed to respond to climate change and should now be held responsible for the consequences of its negligence to take action.  In its opinion, the Court of Appeals “reluctantly conclude[d] . . . that the plaintiffs’ case must be made to the political branches or to the electorate at large.”  The court explained that the plaintiffs failed to meet standing requirements because the injuries claimed by the plaintiffs could not be resolved by the court.  In a Press Release issued on the same day, Plaintiffs’ Attorney Julia Olson declared that they will appeal this decision. 

LNG: Attorneys General from 15 States Oppose PHMSA Proposed Rule Allowing LNG Shipment by Rail
On January 13, 2020, Attorney Generals from the states of Maryland, New York, California, Delaware, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and the District of Columbia submitted a public comment opposing a proposed rule allowing for additional liquefied natural gas shipments by rail.  The proposed rule, Hazardous Materials: Liquefied Natural Gas by Rail, was issued on October 24, 2019, by the Pipeline and Hazardous Materials Safety Administration (PHMSA).  The proposed rule would allow liquefied natural gas (LNG) to be shipped via rail tank cars, which is currently prohibited. The Attorneys General wrote that LNG shipment in rail tank cars would pose a serious threat to public safety, including to states’ residents and first responders.  According to the Attorneys General, PHMSA neglected to make a proper analysis of those risks and did not sufficiently assess climate change and environmental impacts of shipping LNG via rail tank cars.  Through the comment, the Attorneys General request that the agency withdraw the proposed rule and await the results of ongoing safety tests by the Federal Railroad Administration. 

Pipelines: Appellate Court Asks Maine Supreme Court for Legal Clarification over State Law Preemption Doctrine
On January 10, 2020, the U.S. Court of Appeals for the First Circuit deferred to the Maine Supreme Judicial Court and requested clarification on the state law doctrine of preemption and matters of statutory interpretation in a case involving crude oil transportation from Canada to South Portland, Maine (Portland Pipe Line Corp. et al. v. City of So. Portland, et al., No. 18-2118).  In their initial lawsuit, Portland Pipe Line Corporation (Portland Pipe Line) objected to the City of South Portland’s Clear Skies Ordinance, enacted in July 2014, which prohibits the loading of crude oil in the South Portland harbor.  The ordinance effectively blocked Portland Pipe Line from transporting oil from Canada to South Portland, Maine.  Portland Pipe Line argued that this ordinance violates Maine’s Coastal Conveyance Act and federal constitutional law (Portland Pipe Line Corp. et al. v. City of So. Portland, et al., No. 2:15-cv-00054).  In that case, the court held that the ordinance did not impose excessive foreign or interstate commerce burdens.  Here, the Court of Appeals certified three questions to the Maine Supreme Judicial Court.  The questions focus on whether the City Ordinance is expressly or impliedly preempted by the Coastal Conveyance Act (CCA), which authorizes the issuance of licenses for oil transfers in state waters. 
From the National Oil & Gas Law Experts:
Georges A. Bibikos, At the Well Weekly (Jan. 13, 2020)
Charles Sartain, 2019 Bad Guys in Energy (Jan. 16, 2020)
Pennsylvania Department of Energy Press Releases:
Pennsylvania Executive Agencies—Actions and Notices: 
Department of Labor and Industry
50 Pa.B. 283 “Liquefied Petroleum Gas Facility; Notice of Application” Notice (January 11, 2020). 

Pennsylvania Legislature:

H.B. 2233 “An Act amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in liquid fuels and fuels tax, further providing for definitions, providing for exempt entity use, sale and delivery of tax-free motor fuels and further providing for examination of records and equipment” Referred to Transportation [House] (January 17, 2020). 
S.B. 790 “An Act relating to conventional wells and the development of oil, gas and coal; imposing powers and duties on the Department of Environmental Protection; providing for preliminary provisions, for general requirements, for enforcement and remedies, for related funds and for miscellaneous provisions; and making an appropriation” Re-referred to Appropriations (January 15, 2020). 
H.B. 247  “This legislation will provide for a process and accounting mechanism to allow well bores to cross multiple units provided the operator has the right to drill wells on the units via leases with all landowners/members of the units.” Removed from table [House] (January 15, 2020). 
S.B. 790 “An Act relating to conventional wells and the development of oil, gas and coal; imposing powers and duties on the Department of Environmental Protection; providing for preliminary provisions, for general requirements, for enforcement and remedies, for related funds and for miscellaneous provisions; and making an appropriation” Removed from table [House] (January 14, 2020).
H.B. 2198 “A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, in restrictions on legislative power relating to legislation, providing for interstate compacts” Referred to State Government [House] (January 10, 2020). 

Federal Executive Agencies—Actions and Notices: 
Energy Department
85 FR 2419 “President's Council of Advisors on Science and Technology Meeting [Feb. 3 & 4, 2020]” Notice (January 15, 2020).
85 FR 2120 “National Petroleum Council [Notice of Renewal]” Notice (January 14, 2020). 

Environmental Protection Agency
85 FR 3306 “Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine Standards” Proposed Rule—Comment Period (January 21, 2020).
85 FR 3492 “Federal Implementation Plan for Managing Emissions From Oil and Natural Gas Sources on Indian Country Lands Within the Uintah and Ouray Indian Reservation in Utah” Proposed Rule—Comment Period (January 21, 2020).

Federal Energy Regulatory Commission 
85 FR 3366 “Combined Notice of Filings #1 [Innovative Solar 42, LLC.; Oklahoma Wind, LLC.; Sooner Wind, LLC.; Pacific Gas and Electric Company; Southwest Power Pool, Inc.; High Desert Power Project, LLC; Tri-State Generation and Transmission Association, Inc.; Duke Energy Progress, LLC; Tucson Electric Power Company; Appalachian Power Company, PJM Interconnection, L.L.C.]” Notice—Comment Periods (January 21, 2020).  
85 FR 3363 “Combined Notice of Filings [Transcontinental Gas Pipe Line Company, LLC; East Tennessee Natural Gas, LLC; Dominion Energy Carolina Gas Transmission LLC; Equitrans, L.P.; Guardian Pipeline, L.L.C.; Midwestern Gas Transmission Company; OkTex Pipeline Company, L.L.C.; Viking Gas Transmission Company]” Notice—Comment Periods (January 21, 2020). 
85 FR 3365 “Combined Notice of Filings #1 [Refresh Wind, LLC; Exelon Generation Company, LLC; Axium Modesto Solar, LLC; Constellation Power Source Generation, LLC; Handsome Lake Energy, LLC; Rhode Island Engine Genco, LLC; Midcontinent Independent System Operator, Inc.; ISO New England Inc.; MidAmerican Energy Company; Emera Maine; Source Power & Gas LLC; Tri-State Generation and Transmission Association, Inc.; Baltimore Gas and Electric Company, PJM Interconnection, L.L.C.]” Notice—Comment Periods (January 21, 2020). 
85 FR 3367 “Combined Notice of Filings [Rockies Express Pipeline LLC; Adelphia Gateway, LLC]” Notice—Comment Periods (January 21, 2020). 
85 FR 2733 “Combined Notice of Filings #1 [Southwest Power Pool, Inc.; Southern California Edison Company; PJM Interconnection, L.L.C.; ITC Midwest LLC; ]” Notice—Comment Periods (January 16, 2020).
85 FR 2733 “Questar Southern Trails Pipeline Company; Notice of Filing” Notice—Comment Period (January 16, 2020).
85 FR 2731 “Portland Natural Gas Transmission System; Notice of Schedule for Environmental Review of the Westbrook Xpress Project” Notice (January 16, 2020).
85 FR 2420 “Combined Notice of Filings #1 [PJM Interconnection, L.L.C.; ISO New England Inc.; PacifiCorp] Notice—Comment Periods (January 15, 2020).
85 FR 2420 “Combined Notice of Filings [Gas Transmission Northwest LLC; Rockies Express Pipeline LLC; Spire STL Pipeline LLC; NEXUS Gas Transmission, LLC; Equitrans, L.P. ] Notice—Comment Periods (January 15, 2020). 
85 FR 2420 “Notice of Filing [Enable Mississippi River Transmission, LLC] Notice (January 15, 2020).
85 FR 2126 “Commission Information Collection Activities (FERC-577); Comment Request; Extension [Natural Gas Facilities: Environmental Review and Compliance]” Notice—Comment Period (January 14, 2020). 
85 FR 2123 “Dominion Energy Questar Pipeline, LLC; Notice of Application” Notice—Comment Periods (January 14, 2020). 
85 FR 2126 “Combined Notice of Filings #1 [El Paso Electric Company, Sun Jupiter Holdings LLC; ISO New England Inc.; New York State Electric & Gas Corporation, New York Independent System Operator, Inc.]” Notice—Comment Periods (January 14, 2020).
85 FR 2126 “Combined Notice of Filings [Florida Gas Transmission Company, LLC; Millennium Pipeline Company, LLC; Enable Mississippi River Transmission, LLC]” Notice—Comment Periods (January 14, 2020).
85 FR 2124 “Combined Notice of Filings #2 [Midcontinent Independent System Operator, Inc.; Duke Energy Carolinas, LLC; GridLiance Heartland LLC; Emera Maine; Southern California Edison Company; Public Service Company of Colorado; Midcontinent Independent System Operator, Inc., ITC Midwest LLC; North Jersey Energy Associates, A Limited Partnership; Pacific Gas and Electric Company]” Notice—Comment Periods (January 14, 2020).
85 FR 2127 “Combined Notice of Filings #1 [Northeast Energy Associates, A Limited Partnership, North Jersey Energy Associates, A Limited Partnership, Vistra Energy Corp., NextEra Energy, Inc.; Virginia Electric and Power Company, Dominion Energy Generation Marketing, Inc.; Appalachian Power Company, PJM Interconnection, L.L.C.; Actual Energy, Inc.; PacifiCorp; Arizona Public Service Company; PJM Interconnection, L.L.C.; AEP Texas Inc.; Dominion Energy South Carolina, Inc.; El Paso Electric Company]” Notice—Comment Periods (January 14, 2020).
85 FR 2124 “Actual Energy, Inc.; Supplemental Notice That Initial Market-Based Rate Filing Includes Request for Blanket Section 204 Authorization” Notice (January 14, 2020).
85 FR 2128 “Idaho Power Company; Notice of Offer of Settlement” Notice (January 14, 2020).

Internal Revenue Service
85 FR 3486 “Credit for Indian Coal Production and Inflation Adjustment Factor for Calendar Years 2018 and 2019” Notice (January 21, 2020). 

International Trade Administration
85 FR 2110 “Renewable Energy and Energy Efficiency Advisory Committee [Feb. 6, 2020]” Notice (January 14, 2020).

International Trade Commission
85 FR 3419 “Oil Country Tubular Goods (OCTG) From India, Korea, Turkey, Ukraine, and Vietnam; Scheduling of Full Five-Year Reviews” Notice (January 21, 2020). 

Land Management Bureau
85 FR 2757 “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Oil and Gas Facility Site Security” Notice—Comment Period (January 16, 2020).

Maritime Administration
85 FR 2808 “Deepwater Port License Application: Texas COLT LLC; Correction” Notice—Comment Period (January 16, 2020).

Mine Safety and Health Administration
85 FR 2064 “Electronic Detonators” Proposed Rule—Comment Period (January 14, 2020).
85 FR 2022  “Electronic Detonators” Rule—Comment Period (January 14, 2020). 

Pipeline and Hazardous Materials Safety Administration
85 FR 2812 “Hazardous Materials: Notice of Actions on Special Permits” Notice—Comment Period (January 16, 2020).
85 FR 2813 “Hazardous Materials; Notice of Applications for New Special Permits” Notice—Comment (January 16, 2020).

House Energy and Commerce Committee Actions:
H.R.5430 “United States-Mexico-Canada Agreement Implementation Act” Message on Senate action sent to the House (January 16, 2020). 
H.R.5545 “NO EXHAUST Act of 2020” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.5542 “To require the Secretary of Energy to establish a grant program for States to provide incentives to natural gas distribution companies for the improvement of natural gas distribution systems, and for other purposes” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.5541 “Tribal Power Act” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.5527 “21st Century Power Grid Act” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.5518 “To require the Secretary of Energy to carry out a Clean Cities Coalition Program, and for other purposes” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.3361 “Reliable Investment in Vital Energy Reauthorization Act” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.3079 “Energy Savings Through Public-Private Partnerships Act of 2019” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.2906 “Clean Commute for Kids Act of 2019” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 
H.R.1426 “Timely Review of Infrastructure Act” Forwarded by Subcommittee to Full Committee by Voice Vote (January 9, 2020). 

Senate Energy and Natural Resources Committee Actions: 
S.3202 “A bill to discourage speculative oil and gas leasing and to promote enhanced multiple use management of public land and National Forest System land, and for other purposes” Read twice and referred to the Committee on Energy and Natural Resources  (January 16, 2020). 
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“The battle over pipelines, population and property rights in Texas’ Hill Country,” The Daily Climate
Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.
Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page, iTunes, Spotify, or Stitcher.
Check out the December Agricultural Law Brief ! Each month we compile the most significant legal developments in agriculture. If you’d like to receive this update via email, check out our website and subscribe!