Showing posts with label Drilling. Show all posts
Showing posts with label Drilling. Show all posts

Monday, May 8, 2017

Shale Law Weekly Review - May 8, 2017

Written by Jacqueline Schweichler - Education Programs Coordinator
The following information is an update of recent local, state, national, and international legal developments relevant to shale gas.

Conservation Groups Sue Over Drilling Permits Granted in Ohio’s Only National Forest
On May 2, 2017, several conservation groups filed a lawsuit against the United States Forest Service and the Bureau of Land Management (BLM) for authorizing the development of oil and gas minerals in Wayne National Forest. The conservation groups argue that the BLM and Forest Service failed to take a “hard look” at the the potential impact of drilling in the area. The BLM approved leasing in approximately 40,000 acres of the forest after preparing and approving an Environmental Assessment and Finding of No Significant Impact. (Center for Biological Diversity v. U.S. Forest Service, et al.)
Study Links Largest Oklahoma Earthquake and Injection Well Activity
On May 3, 2017, a study published in the journal of Seismological Research Letters examined the relationship between the September 2016 Pawnee earthquake and wastewater injection activity. The 5.8 magnitude earthquake was the strongest in Oklahoma history and caused the Oklahoma Corporation Commission to close several injection wells in the area. The research suggests “...the combined effect of stress changes associated with a high-rate fluid injection transient and long-term injection may have influenced the timing and location of the Pawnee earthquake.” The study is entitled, “The Effects of Varying Injection Rates in Osage County, Oklahoma, on the 2016 M5.8 Pawnee Earthquake.” Also published in the journal of Seismological Research Letters was a study entitled, “Induced Seismicity in Oklahoma Affects Shallow Groundwater.” This study concluded that induced seismicity from injection wells could cause changes in groundwater levels at distances of greater than 150 km from the earthquake epicenter.
Environmental Groups File Lawsuit Against Executive Order on Drilling in the Arctic
On May 3, 2017, the League of Conservation Voters and several other environmental groups filed a lawsuit against the federal government challenging the recent Presidential Executive Order Implementing and America-First Offshore Energy Strategy. The executive order implements a new policy to “encourage energy exploration and production, including on the Outer Continental Shelf…” The plaintiffs argue that the executive order exceeded the President’s constitutional authority under the Outer Continental Shelf Lands Act.

Standing Rock Drops Appeal of Religious Based Preliminary Injunction
On April 28, 2017, the Standing Rock Sioux Tribe and Cheyenne River Sioux Tribe filed a motion for voluntary dismissal of their appeal against a decision made by the U.S. District Court for the District of Columbia. Last month the district court denied Standing Rock’s motion for preliminary injunction “to prevent the flow of oil through the Dakota Access Pipeline under Lake Oahe in North Dakota pursuant to the Religious Freedom Restoration Act…” The plaintiffs decided to drop the appeal after Dakota Access LLP announced oil had been placed in the pipeline as of March 27th.

Motion Granted to Hold Clean Power Plan Lawsuit in Abeyance
On April 28, 2017, the United States Court of Appeals for the District of Columbia granted the government’s motion to hold a case regarding the Clean Power Plan in abeyance (West Virginia, et al. v. Environmental Protection Agency, et al.). The case was brought by several states in opposition to the Clean Power Plan which established guidelines for emissions from existing power plants. The current administration requested the abeyance after the Environmental Protection Agency announced on April 4, 2017 that it is reviewing the rule and may revise or suspend it.

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Wednesday, January 18, 2017

Shale Law in the Spotlight: President Obama Issues Ban on Oil and Gas Drilling in the Arctic and Atlantic Oceans

In the final month of his presidency, with the presumed intention of preserving his environmental legacy, President Barack Obama has announced “historic steps to build a strong Arctic economy, preserve a healthy Arctic ecosystem and protect our fragile Arctic waters, including designating the bulk of our Arctic waters and certain areas in the Atlantic Ocean as indefinitely off limits to future oil and gas leasing.”

In the statement dated December 20, 2016, President Barack Obama permanently banned offshore oil and gas drilling in the U.S. Arctic and Atlantic oceans, acting on the authority vested by Section 12-A of the 1953 Outer Continental Shelf Lands Act (OCSLA). According to Section 12-A, “[t]he President of the United States may, from time to time, withdraw from disposition any of the unleased lands of the outer Continental Shelf.” In other words, the President of the United States has unilateral authority to withdraw areas of federal lands from oil and gas development. Some experts have suggested that only an act of Congress would carry enough authority to overturn President Obama’s ban given the delegated unilateral powers provided to the U.S. President under Section 12-A of the 1953 OCSLA. There is no legal precedent yet, however, to definitively resolve this question.

Relating to the Atlantic Ocean, President Obama has committed to prevent oil and gas development from 31 Atlantic canyons not yet protected by the National Monuments Authority (NMA) in order to preserve their ecological features. According to the White House, 5,990 square miles of federal lands located along the Atlantic continental shelf, starting from offshore New England down to the Chesapeake Bay, are being withdrawn indefinitely from oil and gas leasing. Many studies of Atlantic canyons have established that “[t]he withdrawal of these canyons from mineral leasing will help protect habitats, preserve critical ecological hot spots, conserve economically valuable fisheries, afford long-term opportunity for research and exploration, and help ensure that species dependent on the habitats of the canyons are protected.”

As for the Arctic seabed, President Obama identified new portions of the Arctic Ocean to be indefinitely banned from oil and gas development, including the Chukchi Sea and part of the Beaufort Sea where oil and gas activity have not yet occurred, in addition to 125 million acres in Arctic federal waters already protected from oil and gas leasing. The White House stated that “[e]ven recognizing the substantial steps taken by this Administration to improve the safety of potential Arctic exploration and development, there would still be significant risks associated with offshore drilling operations given that the U.S. Arctic is characterized by harsh environmental conditions, geographic remoteness, and a relative lack of fixed infrastructure and existing oil and gas operations.” Supporting this statement, the Interior Department has analyzed that oil spills are to be expected, “based on historical data and the harsh nature of Arctic conditions, that there could be up to one large spill (3,282 barrels) in each of the Chukchi and Beaufort Seas from a platform and up to four spills from pipelines (3,750 barrels) in each sea based on estimates of production volume.”

In the meantime, through the issuance of a United States-Canada Joint Arctic Leaders’ Statement, Canadian Prime Minister Justin Trudeau further stated that his government would halt oil and gas leasing in Canadian Arctic waters, which decision is to be reviewed every five years through a climate and marine science-based life-cycle assessment, while acknowledging the Obama Administration’s efforts to address climate change. This permanent ban follows several U.S. actions undertaken under the March 2016 U.S.-Canada Partnership on Climate Change, Clean Energy, and Environment.

Following the investiture of President-elect Donald Trump as U.S. President on January 20, 2017, many changes in terms of energy and environmental policies are to be expected.  The status of this permanent ban and the authority of the new administration to alter or overturn it remains an issue to follow. Stay tuned!


Written by Chloe Marie – Research Fellow
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Monday, December 26, 2016

Shale Law Weekly Review - December 26, 2016

The following information is an update of recent, local, state, national, and international legal developments relevant to shale gas.


New Bill Passed to Improve Safety for Oil Train First Responders
On December 16, 2016, President Obama signed into law a new bill intended to help first responders safely deal with spills from trains transporting crude oil.  The bill is called the RESPONSE Act of 2016 and establishes a subcommittee to provide recommendations on additional tools or resources that first responders may need to react to spills in the safest manner possible. According to a press release by Senator Heidi Heitkamp, she decided to sponsor this bill after the derailment of a crude oil train in Casselton, North Dakota.
California and New Mexico Join BLM in Support of New Oil and Gas Regulations
On December 15, 2016, California and New Mexico filed a memorandum to intervene on behalf of the Bureau of Land Management (BLM) in the ongoing case against the BLM in response to their new oil and gas regulations. The new rule, “Waste Prevention, Production Subject to Royalties, and Resources,” will become effective January 17, 2017. California and New Mexico argue in their memorandum that they will be benefited by the rule because the new regulations will generate more royalty revenue and benefit the health of state citizens by diminishing emissions. The two states also filed a motion in opposition to a preliminary injunction sought by Wyoming, Montana, and North Dakota.


Texas Will Monitor Earthquakes With TexNet System
On December 14, 2016, the Center for Integrated Seismicity Research (CISR) co-hosted a meeting with the manager of the Texas Seismological Network (TexNet) to discuss research progress, according to a press release by the University of Texas at Austin. CISR is a center at the University of Texas at Austin that conducts research on naturally occurring and induced seismic events. TexNet is an earthquake monitoring system that spreads across Texas and is intended to locate and determine the origins of earthquakes.


New Study by NBER Shows Economic Benefits of Shale Development
A working paper by the National Bureau of Economic Research (NBER) was issued in December 2016 on Fracking, Drilling, and Asset Pricing: Estimating the Economic Benefits of the Shale Revolution. According to the study, “shale oil development is responsible for $3.5 trillion of the increase in stock market value…” between 2012 and the third quarter of 2015. In addition, the study suggests shale oil development explains the employment growth rates during the same time frame.


British Court Rules Hydraulic Fracturing Permit was Issued Legally
On December 20, 2016, the High Court in Britain ruled in favor of a permit granted to an oil and gas development company, according to Reuters. The permit at issue was granted to developer Third Energy in 2012 to allow the company to use hydraulic fracturing in Yorkshire. The approval of the permit was challenged by several environmental groups due to health and safety concerns. The groups claim that despite this loss, they will continue to campaign against hydraulic fracturing.


New Mining Rules to Protect Water Sources Will Go Into Effect Next Year
On December 20, 2016, the Office of Surface Mining Reclamation and Enforcement (OSMRE) finalized their Stream Protection Rule. The new rule revises current regulations and is intended to protect water supplies from “the adverse impacts of surface coal mining operations and provide mine operators with a regulatory framework to avoid water pollution and the long-term cost associated with water treatment.” The rule will require mining operators to collect pre-mining data to establish a baseline in the event of any change in water quality. The new rule will go into effect January 19, 2017.


Oklahoma Develops Seismicity Guidelines to Mitigate Induced Earthquakes
According to a news release by the Oklahoma Corporation Commission (OCC) on December 20, 2016, the OCC Oil and Gas Conservation Division (OGCD) and the Oklahoma Geological Survey have developed new seismicity guidelines for oil and gas operations in two areas. The affected areas include the South Central Oklahoma Oil Province and the Sooner Trend Anadarko Basin Canadian and Kingfisher counties. The OCC states that neither operational area generates much wastewater but these guidelines will hopefully help mitigation earthquake activity. The rule impact statement for OAC 165:10, Oil and Gas Conservation states that persons most affected by these new rules include well operators and royalty owners in Oklahoma.


President Obama Bans Oil and Gas Leasing in Atlantic and Arctic Outer Continental Shelf
On December 20, 2016, President Obama banned mineral leasing in areas of the Atlantic Coast as well as the Arctic Outer Continental Shelf under the Outer Continental Shelf Lands Act, (OCSLA) 43 U.S.C. 1341(a). The OCSLA empowers the Secretary of the Interior to grant leases for oil and gas exploration. A statement released by the White House said “...even with the high safety standards that both our countries have put in place, the risks of an oil spill in this region are significant and our ability to clean up from a spill in the region’s harsh conditions is limited.”
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Monday, December 12, 2016

Shale Law Weekly Review - December 12, 2016

The following information is an update of recent, local, state, national, and international legal developments relevant to shale gas.

Penn Township Approves Agreement to Resolve Apex Drilling Lawsuit
On December 5, 2016, the Penn Township commissioners approved an agreement with Apex Energy LLC for oil and gas operations. According to an article by Trib Live, the three hundred million dollar lawsuit was brought by Apex against Penn Township for rejecting its applications to drill. The agreement will allow Apex to commence drilling operations subject to several conditions. The conditions include the installation of sound walls, the creation of a 24 hour emergency hotline, air quality monitoring, as well as other safety and environmental protections.

DEP Files Appeal in Drilling Regulations Case
On December 6, 2016, the Pennsylvania Department of Environmental Protection filed an appeal to the Pennsylvania Supreme Court in a drilling regulations lawsuit, according the the DEP Newsroom. The DEP is appealing the decision of the Commonwealth Court to enjoin certain provisions of the new Chapter 78a drilling regulations.  The lawsuit was initially filed by the Marcellus Shale Coalition to protest the new rules The rules set standards for the oil and gas industry to increase safety and protect the environment.

PA Auditor General Questions Impact Fee Spending
On December 6, 2016, the Pennsylvania Auditor General released a report on their audit of the impact fees given to local governments. The audit covers a four year period and was conducted to determine whether the Public Utility Commission appropriately distributed funds and to determine that counties used the funds in accordance with Act 13. The report suggests that Act 13 needs to be more specific and found that funds were being “spent on questionable costs such as balancing budget deficits, salaries and operational expenses, legal fees, and holiday celebrations.”

EIA Reports on Pipeline Capacity Increase in New England
On December 6, 2016, the U.S. Energy Information Administration released a report on the increase in natural gas pipeline capacity in New England. Since 2010, there have been no new pipeline projects in New England. Currently, two different projects by Spectra Energy Corporation will be completed; one will be finished by the end of December and the other will be complete in June 2017. The two projects cost $972 million and $63 million and will carry natural gas from the Appalachian Basin.

Study Estimates Effects of Closed Injection Wells on Induced Seismicity
On November 30, 2016, a study was published estimating how the decrease of wastewater injection in Oklahoma will affect induced seismicity. According to the study, Oklahoma has reduced the number of injection wells in operation by 40 percent. The study predicts that the number of earthquakes in the area should “significantly decrease by the end of 2016 and approach historic levels within a few years.” The rate of earthquake decrease will be slower in larger magnitude earthquake areas due to some continued aftershocks. The article entitled “How will induced seismicity in Oklahoma respond to decreased saltwater injection rates?” was published in Science magazine.

DOE Laboratories Awarded Funding for Shale Research
On December 5, 2016, the National Energy Technology Laboratory announced the awarding of six shale research projects to be given to the U.S. Department of Energy (DOE) laboratories.  The projects are intended to “investigate the processes associated with hydrocarbon extraction from unconventional shale reservoirs and lead to a better understanding of factors affecting prudent resource development.” The projects are to consist of two year investigations and will receive $4.8 million in funding. Some of the laboratory investigations will look at the permeability of fractures in shale, how water is absorbed by shale, and flow in shale pores.

Class Action Lawsuit Against Oil and Gas Companies For Oklahoma Earthquakes
On December 5, 2016, a class action lawsuit was filed in the District Court of Payne County, Oklahoma against oil and gas companies alleging those companies were the source of the recent earthquakes. The suit was filed by several residents of Cushing, Oklahoma and they seek property damages, market value losses to real property, punitive damages, and damages for emotional distress. The plaintiffs’ claim states that “By disposing of fracking wastewater deep into the earth, Defendants introduced contaminants into the natural environment that caused an adverse change to it in the form of unnatural seismic activity.” (David and Myra Reid, et al. v. White Star Petroleum LLC, et al., CJ-2016-543)

Australia to Begin Hydraulic Fracturing Inquiry
On December 5, 2016, the Northern Territory government in Australia released a statement announcing the start of a planned hydraulic fracturing inquiry. The inquiry will examine onshore unconventional reservoirs as well as other activities associated with hydraulic fracturing. Because of comments from the public, the scope was increased to include “water acquisition and treatment of wastewater.”  During the inquiry, hydraulic fracturing will continue to be prohibited. The first meeting will be December 8th and will determine a schedule and timeline.

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks
Recent ShaleLaw HotLinks include:
“Two lawsuits filed against Stone Energy Corporation for fraud, breach of contract” - WVRecord
New route for the Dakota Access Pipeline - CNN
“U.S. LNG exports hit record high”- LNG World News
New research on induced seismicity in Oklahoma - NGI
New hydraulic fracturing law or extended moratorium in Maryland? - Washington Post
No easement access for Dakota Access project - WSJ
Federal funding given to research projects on unconventional shale - NGI
New easements acquired for Falcon Ethane Pipeline system - PghBizTimes
With pipelines facing scrutiny, more crude oil may be transported by rail - Reuters
Pipeline company sues to reverse denial of easement for Dakota Access - WSJ

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Stay informed with our monthly Agricultural Law Brief located here. 

Written by Jacqueline Schweichler - Education Programs Coordinator
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Friday, October 9, 2015

Texas Court of Appeals Addresses Nuisance Claims over illness and property damages allegedly caused by drilling operations

On October 7, 2015, the Texas Fourth Court of Appeals affirmed a District Court’s ruling that a family failed to establish that their illness and property damages were caused by nearby property oil and gas drilling operations.

In May 2013, plaintiffs brought an action seeking personal injury compensatory and punitive damages from Marathon Oil Corporation and Plains Exploration & Producing Company in tort actions. Plaintiffs claimed that the companies had negligently operated their oilfield and, as a result, impaired plaintiffs’ health conditions and property value. Plaintiffs alleged that “[t]he constant traffic, dust, strong odors, and noise radically altered the lifestyle previously enjoyed by the plaintiffs and made the enjoyment of their outdoor activities impossible.” Defendants filed no-evidence and traditional motions for summary judgment arguing that plaintiffs did not have any causes of action.

The Karnes County District Court granted defendants’ motions for summary judgment and concluded that plaintiffs did not establish sufficient medical and scientific evidence that their health problems were caused by oil field emissions. Plaintiffs appealed the District Court’s decision.

The Texas Court of Appeals reasoned that the plaintiffs failed to exclude other potential causes for their health issues and property loss of value.

Further information on this case is available at docket no. 04-14-00650-CV.

Written by Chloe Marie - Research Fellow
10/09/2015
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