Shale Law Weekly Review - December 16, 2019

Written by:
Jackie Schweichler – Staff Attorney

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

Public Lands: BLM Issues Decision on Environmental Impact Statement for Bakersfield

On December 13, 2019, the U.S. Bureau of Land Management (BLM) issued the final decision on the Hydraulic Fracturing Supplemental Environmental Impact Statement (EIS) for the Bakersfield Field Office planning area in California.  The supplemental EIS states that the analysis showed no notable increase for hydraulic fracturing impacts.  In addition, the EIS found that estimated impacts and the program goals were consistent.  According to BLM, the EIS was prepared in response to a May 2017 court order.  As part of the settlement negotiations, BLM agreed to cease oil and gas lease sales pending the publication of the supplemental EIS and final decision.  The BLM also stated that this decision promotes energy development in support of Executive Order 13783: Promoting Energy Independence and Economic Growth and Secretarial Order 3349: American Energy Independence.   

Climate Change: NY Supreme Court Dismisses Lawsuit Against Exxon Mobil 

On December 10, 2019, the Supreme Court of the State of New York dismissed the claims against Exxon Mobil Corp. brought by the Office of the Attorney General. (People of the State of New York, et al. v. Exxon Mobil Corp., NYSCEF Doc. No. 567). The Attorney General claimed that Exxon violated the Martin Act or Executive Law §63(12) for the manner in which it disclosed the company’s climate change policies to the public.  In its dismissal, the court found that Exxon did not violate either law and that the Attorney General failed to show that Exxon’s statements or omissions “misled any reasonable investor.”  The court noted that while the Attorney General failed to prove Exxon’s legal responsibility in the present securities fraud case, its opinion did not address any legal responsibility that Exxon had with regard to the company’s contributions to climate change.  In a press release, Exxon criticized climate change lawsuits and reiterated that their investors were provided with “accurate information on the risks of climate change.”

Public Lands: District Court Suspends Drilling Permits in Colorado’s Bull Mountain Unit

On December 10, 2019, the U.S. District Court for the District of Colorado issued an order suspending drilling permits in the Bull Mountain Unit in Colorado and remanded the case to the Bureau of Land Management (BLM) for further analysis. (Citizens for a Healthy Community, et al. v. U.S. Bureau of Land Management, et al., Case 1:17-cv-02519-LTB-GPG).   This case was brought by several environmental organizations that allege BLM failed to take a hard look when considering alternatives and impacts of the master development plan for the Bull Mountain Unit.  In the March 27, 2019, ruling, this court found that BLM violated the National Environmental Policy Act by failing to “take a hard look at the reasonably foreseeable indirect impacts of oil and gas.”  At that time, the court deferred the final ruling and ordered the parties to endeavor to reach a good faith agreement on remedies.  No agreement was reached, and the court in the present order suspended all approved drilling applications and enjoined BLM from issuing new permits until BLM can complete their analysis on the reasonably foreseeable oil and gas impacts. 

Infrastructure: Puget Sound Clean Air Agency Approves LNG Project in Washington 

On December 10, 2019, the Puget Sound Clean Air Agency (CAA) issued an order of approval for the construction of Puget Sound Energy’s (PSE) liquefied natural gas facility in Tacoma, Washington.  According to the CAA executive director, PSE’s Notice of Construction Application met all agency requirements for emissions standards.  With the order of approval, CAA “imposed conditions on the permit designed to address greenhouse gas emissions” in light of comments received during the review process.  The PSE facilities are designed to hold 8 million gallons of LNG which will provide natural gas to local consumers and will not be used for exports.  PSE also states that transitioning ships from diesel to LNG fuel will reduce emissions and improve air quality.  

Community Impacts: Study Analyzes Impact of Oil and Gas Development on Housing Prices

On December 1, 2019, researchers from West Virginia University published the online issue of a study analyzing the impact of oil and gas development on housing prices.  The researchers examined housing sales and data from shale oil and gas well locations from 2006 to 2014.  According to the study results, nearby drilling activity lowered housing prices.  Visible wells decreased house prices by 0.8%, or approximately $3,000, and for every additional well within a mile of the home, the price decreased by 0.1% in value.  The study is titled Household Valuation of Energy Development in Amenity-Rich Regions, and it can be found in the journal Growth and Change.  

From the National Oil & Gas Law Experts:

George Bibikos, At the Well Weekly (Dec. 9, 2019)

Charles Sartain, No Sovereign Immunity for the Texas Land Commissioner (Dec. 12, 2019)

Nick McTyre, LNG Update: U.S. Eases Restrictions on Small-Scale LNG Export Projects (Dec. 11, 2019)

John McFarland, More Focus on Environmental Consequences of Methane Emissions (Dec. 16, 2019)

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Oil: OPEC Nations Grapple With Oversupply” - Energy Wire
"Germany tells Trump not to Meddle in Europe's Energy Issues" - E&E News 
"States look to Supreme Court to save pipeline" - AP
"Russia’s Gas Pipeline to Europe Faces Sanctions Under U.S. Defense Bill" - WSJ
"Big Oil Lobby Showing Subtle Shifts on Climate Change" - Axios 
"Federal Judge Dismisses Ohio Property Owners’ Plea to Stop Nexus Construction" - Shale Gas Reporter 
"America Blows Past The World in Oil And Natural Gas" - Axios
“Padep Using Act 13 to Demand New Compliance Requirements for Gas Storage Following National Trends" - Mondaq 

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 November 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!

Shale Law Weekly Review - October 28, 2019

Written by:

Chloe Marie – Research Specialist
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 Orders Immediate Suspension of All Construction Activities Relating to the Mountain Valley Pipeline

On October 15, 2019, the Federal Energy Regulatory Commission (FERC) issued a cease work order for certain activities relating to the construction of the Mountain Valley Pipeline following a stay of the 2017 U.S. Fish and Wildlife Service (FWS) Biological Opinion and Incidental Take Statement by the U.S. Court of Appeals for the Fourth Circuit (Wild Virginia, Inc. v. U.S. Dept. of the Interior, No. 19-1866).  The court issued the stay on October 11, 2019, to allow FWS and FERC to have a re-consultation to discuss project impacts on wildlife species.  Along with the stay, the court will hold the case in abeyance until January 2020.  This cease work order is immediate, but FERC will allow Mountain Valley to pursue any activity relating to right-of-way restoration and work area stabilization as long as such activity does not further impact wildlife species.  In addition, Mountain Valley must provide an updated interim right-of-way and work area stabilization plan for review and approval from the Director of the Office of Energy Projects.

Pipelines: South Dakota and ACLU Agree to Settlement in Riot Boosting Case

On October 24, 2019, the American Civil Liberties Union Foundation and South Dakota agreed to a stipulated settlement agreement relating to the state’s riot boosting statute (Dakota Rural Action v. Noem, 5:19-cv-5026-LLP).  The settlement allows some portions of the South Dakota statute to remain in effect, but it declares that other sections will not be enforced.  This agreement closely follows an order issued by the U.S. District Court for the District of South Dakota Western Division which temporarily enjoined the statute.  According to the court, these riot-boosting statutes were enacted by the South Dakota legislature as a way to address the costs of anticipated rioting resulting from construction of the Keystone XL pipeline.  For more information on the original South Dakota law, see the Shale Law in the Spotlight - South Dakota Governor Signs Pipeline Protest Legislative Package into Law

National Energy Policy: PHMSA Proposes Rulemaking Authorizing Shipment of LNG by Rail 

On October 24, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA), together with the Federal Railroad Administration (FRA), published a proposed rule which would amend regulations relating to the transportation of liquefied natural gas (LNG).  Currently, under the Hazardous Materials Regulations, LNG may not be transported in rail tank cars without a special permit issued by the Department of Transportation (DOT).  According to PHMSA, the number of LNG facilities in the U.S. has grown by 28.7 percent in the past decade, prompting a need for additional methods for LNG transportation.  The proposed rule would authorize the shipment of LNG by rail tank cars that meet certain DOT specifications.  This proposed rulemaking follows an Executive Order signed by President Trump on April 10, 2019, directing the Secretary of Transportation to update the Hazardous Materials Regulations to promote and expand the transportation infrastructure.

Climate Change: U.S. Supreme Court Declined to Hear Appeal in Climate Change Lawsuit 

On October 22, 2019, the U.S. Supreme Court declined to hear an appeal of the U.S. District Court for the District of Maryland’s order to remand a case addressing climate change to state court (BP P.L.C. v. Mayor & City of Baltimore, No. 19A368).  In this case, the mayor and City of Baltimore filed a complaint in July 2018 before the Circuit Court for Baltimore City against 26 energy companies, including BP, Chevron, ConocoPhillips, Shell Oil, and Exxon Mobil, seeking to hold them responsible for damages caused by global warming. The plaintiffs allege that these companies were aware of the dangers of greenhouse gas pollution contributed by fossil fuels and yet these companies engaged in efforts to conceal this danger.  Defendants Chevron Corp. and Chevron U.S.A., Inc. removed the case from state court to the U.S. District Court for the District of Maryland . Plaintiffs filed a motion to remand the case to state court in September 2018 arguing that the city sought relief only under state law.  The U.S. District Court granted remand on June 10, 2019.  On June 13, 2019, defendants appealed the remand order to the U.S. Court of Appeals for the Fourth Circuit and filed a motion to stay the order until the Court of Appeals issued its ruling.  The U.S. Court of Appeals denied the motion for a stay on October 1, 2019, and defendants subsequently filed an appeal of the remand order with the U.S. Supreme Court.

Wildlife Habitat: Federal District Court in Idaho Enjoins the 2019 BLM Sage-Grouse Plan Amendments from Becoming Effective for Six Western States

On October 16, 2019, the U.S. District Court for the District of Idaho issued an order granting a preliminary injunction to prevent the Bureau of Land Management (BLM) from implementing the 2019 BLM Sage-Grouse Plan Amendments for the states of Idaho, Wyoming, Colorado, Utah, Oregon, and Nevada/Northeastern California, until the court resolves the case (Western Watersheds Project et al. v. Schneider et al., No. 1:16-cv-00083).  In early 2016, the Western Watersheds Project, Wildearth Guardians, Center for Biological Diversity and Prairie Hills Audubon Society brought a legal action against BLM challenging numerous Environmental Impact Statements (EIS) governing western states.  This matter, however, was put on hold following President Trump’s order to review and revise the 2015 BLM-Sage Grouse Plans.  In March 2019, BLM issued amendments to the 2015 BLM-Sage Grouse Plans as well as six EISs for Idaho, Wyoming, Colorado, Utah, Oregon, and Nevada/Northeastern California.  On April 19, 2019, plaintiffs sought a preliminary ruling from the court to enjoin the six EISs from becoming effective. According to plaintiffs, BLM did not consider the science behind sage-grouse and thus failed to fully evaluate the environmental consequences of such amendments in its analysis. 

From the National Oil & Gas Law Experts:

Georges A. Bibikos, At the Well Weekly (October 18, 2019)

Stephen M. Boom Jr. et al., Rundown of Recent Developments in Covenant Running with the Land Tension (October 24, 2019)

National Legislation

Engineers Corps

Final Rule; Definition of “Waters of the United States” - Recodification of Pre-Existing Rules 84 FR 56626 (October 22, 2019)

Federal Energy Regulatory Commission

Final Rule; Revision to Policy Statement on Consultation with Indian Tribes in Commission Proceedings, 84 FR 56940 (October 24, 2019)

Pipeline and Hazardous Materials Safety Administration

Notice of Proposed Rulemaking; Hazardous Materials: Liquefied Natural Gas by Rail, 84 FR 56964 (October 24, 2019)

Pennsylvania Legislation 

Senate Bill 694: this bill would allow well bores to cross multiple units (in the House, first consideration & laid on the table; Oct. 22, 2019)

Senate Bill 790: this bill would create separate regulations for conventional oil and gas operations (referred to Environmental Resources and Energy on Oct. 22, 2019)

Senate Bill 258: this bill would require public utility facilities to meet with the county emergency coordinator in the event of a natural gas spill (laid on the table & removed Oct. 23, 2019)

Pennsylvania Actions and Notices

Department of Environmental Protection

Applications, Actions and Special Notices (October 26, 2019)

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Flaring Concerns Rise Again Before Texas Railroad Commissioners,” Hart Energy
“Fossil Fuels on Trial: Where the Major Climate Change Lawsuits Stand Today,” Inside Climate News
“Another Delay, Cost Increase for Mountain Valley Pipeline,” The Roanoke Times
“North Dakota Regulators Approve Study of Natural Gas,” Associated Press
“Chevron Sees ‘Boom Boom Boom’ Despite Signs of Slowdown,” Energy Wire
“PennEast Calls for Redo in Eminent Domain Fight,” Energy Wire
“Mountain Valley Pipeline Completion Date Delayed Again,” Shale Gas Reporter
“ExxonMobil Faces Trial Over Allegations of Misleading Investors on Climate Crisis,” The Guardian
“California Ditched Coal. The Gas Company is Worried It’s Next,” Los Angeles Times
“Pittsburgh International Airport to Build Mini Power Plant Dependent on Natural Gas and Solar Energy,” CBS Pittsburgh

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 September 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!

Shale Law Weekly Review - July 22, 2019

Written by:

Sara Jenkins - 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.

Post-Production Costs: Court Determines Oil and Gas Company Cannot Deduct Post-Production Costs from State Royalty Payments

On July 11, 2019, the Supreme Court of North Dakota ruled that Newfield Exploration Company (Newfield) could not deduct post-production costs incurred by the company from royalties paid to the state (Newfield Exploration Co. v. State of North Dakota, No. 20190088). Newfield filed the lawsuit to determine whether the royalty payments made to the State of North Dakota were correct after an audit of the company found the royalties were being underpaid according to the lease. Newfield was making royalty payments to the state “based on the gross proceeds it had received from the sale of the gas to Oneok Rockies Midstream L.L.C.” once Oneok processed the gas into a marketable form. The state argued that basing the royalties on profits received from Oneok required the state to “share in post-production costs incurred to make the gas marketable.” The district court initially ruled in favor of Newfield, determining the lease “allows the reduction of the royalty payments to account for expenses incurred to make the natural gas marketable.” The North Dakota Supreme Court, however, reversed the district court’s decision, finding that the term “gross proceeds” used in the lease meant the “lessor’s royalty is calculated based on the total amount received for the product without deductions for making the product marketable.”

Public Lands: Environmental Groups File Lawsuit Against Bureau of Land Management for Issuing Oil and Gas Leases in Arizona 

On July 15, 2019, environmental groups filed a Complaint in the U.S. District Court for the District of Arizona against the U.S. Bureau of Land Management (BLM) for issuing oil and gas leases in Navajo and Apache Counties (Center for Biological Diversity v. Suazo). The leases include land near the Petrified National Forest and the Coconino aquifer. The Plaintiffs, including the Center for Biological Diversity, Sierra Club, and WildEarth Guardians, contend that BLM violated the National Environmental Policy Act (NEPA) by relying on an Environmental Impact Statement (EIS) from 1988. According to the Complaint, BLM found that the 1988 EIS “included an adequate analysis of the environment impacts and alternative actions” for the land in which the leases were located. The Plaintiffs disagree with this finding and assert that “BLM failed to consider the numerous foreseeable impacts of oil and gas development on environmental and cultural resources” in the area. The Plaintiffs are asking the court to reverse and set aside the leases awarded by BLM. 

Pipelines: Pennsylvania’s Natural Gas Pipeline Expansion Proposal Signed into Law

On July 10, 2019, Pennsylvania State Representative Jonathan Fritz issued a press release detailing the passage of SB 712, expanding the Pipeline Investment Program initiative. The bill, which was signed into law as Act 20 on July 1, 2019, amends the Fiscal Code to provide additional grant money for the program. According to the program’s website, the grants can be used for “acquisition, construction, and site preparation costs associated with extending natural gas pipelines.” The press release states that the distribution lines will be completed to provide natural gas to “business parks and existing manufacturing and industrial enterprises,” ultimately providing access to natural gas for Pennsylvania residents.

Production and Operation: Pennsylvania's Department of Environmental Protection Releases Annual Oil and Gas Report

On July 10, 2019, Pennsylvania's Department of Environmental Protection (DEP) released its annual Oil and Gas Report. The report begins with a summary of new developments and programs implemented in 2018, including an improved permit review process, a four-point methane emissions reduction strategy, and compliance assistance for oil and gas regulations. The report also includes various statistics including numbers on production amounts, permits issued, and various wells present in the state. Some notable numbers show Pennsylvania’s 2018 overall production of natural gas at 6.1 trillion cubic feet, which amounts to Pennsylvania’s largest volume of natural gas ever produced in a year. Report statistics also show that 917 oil and gas wells were drilled in 2018, and 90% of fluids produced by hydraulic fracturing operations were recycled and reused. The report follows up with a section on what to expect in 2019, including permit fee rulemaking, a geologic hazard mitigation plan, and continuous improvement for data management. 

LNG Exports: FERC Order Approves Construction and Operation of LNG Export Facilities in Jackson County, Mississippi 

On July 16, 2019, the Federal Energy Regulatory Commission (FERC) issued an order approving the construction and operation of new liquefied natural gas (LNG) export facilities in Jackson County, Mississippi. Gulf LNG Liquefaction Company, LLC and Gulf LNG Energy, LLC (collectively Gulf Liquefaction) filed an application to construct the new facilities under section three of the Natural Gas Act. According to the order, Gulf Liquefaction proposed the construction of two natural gas liquefaction trains, pretreatment facilities, support facilities, and two marine offloading facilities. FERC approved Gulf Liquefaction’s proposal, concluding that the facilities would be built on land currently used for the import terminal site, and the environmental impacts from construction would be “temporary or short term.” Commissioner Click filed a lone dissent, stating the order violated both the Natural Gas Act and the National Environmental Policy Act by not properly addressing the climate change implications of constructing the LNG facilities. 

Crude Oil by Rail: North Dakota, Montana Petitions U.S. Department of Transportation to Overturn Washington State Law Prohibiting Crude Oil by Rail 

On July 17, 2019, the Attorneys General for North Dakota and Montana filed an application with the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to preempt a new Washington State law that restricts loading or unloading crude oil by rail. Senate Bill 5579, titled “An act relating to the volatility of crude oil received in the state by rail,” was signed into law on May 9, 2019 and takes effect July 28, 2019. The new law states that crude oil may not be loaded or unloaded “from a rail tank car unless the oil has a vapor pressure of less than nine pounds per square inch.” The law does not prohibit rail cars from transporting crude oil though Washington or require railcars to be stopped or checked for vapor pressure before entering the state. However, Attorney General Wayne Stenehjem, who co-filed the application, said in a statement that “Washington’s attempt to re-classify crude oil based on its vapor pressure is inconsistent with federal standards.” 

Methane Emissions: EPA Publishes New Data on Voluntary Methane Emissions Reductions 

On July 11, 2019, the U.S. Environmental Protection Agency (EPA) issued a news release highlighting new results from its Natural Gas STAR Methane Challenge Program. The news release states that oil and gas companies who participated in the program “reduced methane emissions equivalent to nearly 1 million metric tons of carbon dioxide” in 2017. Some of the data included in the news release shows company efforts to replace old pipelines including “1,400 miles of cast iron pipelines and more than 2,000 miles of unprotected steel pipelines.” Additionally, emission reduction efforts by the program’s participants “kept nearly $6 million worth of natural gas in the pipeline.” The EPA provides specific data on each oil and gas company participating in the program on their Methane Challenge Program webpage. 

Production and Operation: Analysis Shows Large Economic Impact of Energy Sector on Texas Business Activity and Job Creation

On July 8, 2019, the Perryman Group, a team of economic analysts, published a column detailing the large impact of the energy sector on business and job creation in Texas. The publication, Black Gold, found that the energy sector “directly or indirectly supports about one of every six Texas jobs.” The publication considered industry supply chains and consumer spending in its analysis, along with examining other industries to garner opportunities created from the energy sector’s influence. According to the column, oil and natural gas production in Texas has risen 500% since 2010, leading to reduced imports and an increase in U.S. crude oil. Additionally, the energy sector has created 1.9 million jobs and a total personal income of $120.6 billion.

From the National Oil & Gas Law Experts:

Charles Sartain, Industry Custom Does Not Supersede Contract Language, (July 16, 2019)

John McFarland, Administrative Hearings in Texas: Three Recent Cases, (July 15, 2019)

David Perlman, Kathryn Penry, & Annie Willet, Finding New FPA Authority, FERC Makes Policy Change to Authorize Retroactive Surcharges (and Maybe More), (July 17, 2019)

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

“Hill Country pipeline opponents threaten lawsuit over golden-cheeked warbler habitat” - Houston Chronicle

“Texas Showdown Flares Up Over Natural-Gas Waste” - Wall Street Journal 

“North Sea Oil is Learning From US Shale” - Bloomberg

“Philadelphia refinery to shut down” - Oil and Gas Journal 

“EPA's Methane Challenge Partners Are Leading The Oil And Gas Industry In Efficiency And Emissions Reductions” - Oil and Gas Online 

“What’s up with drilled but uncompleted wells?” - Shale Gas Reporter

“America's Hottest Shale Play Is Waning” - Bloomberg

“EIA forecasts U.S. shale oil output to climb by 49,000 barrels a day in August” - Market Watch

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.

This week we published a new Shale Law in the Spotlight article:

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

Shale Law Weekly Review - July 15, 2019

Written by:

Sara Jenkins - 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.

Infrastructure: Environmental Group files Lawsuit Against Washington State for Issuing Permit for LNG Facility 

On July 9, 2019, the Advocates for a Cleaner Tacoma (ACT) filed a Petition for Judicial Review of Agency Action against the Washington State Department of Ecology for issuing a permit for a liquified natural gas (LNG) facility (Advocates for a Cleaner Tacoma v. Washington State Dep’t of Ecology). According to the Petition, the Department issued Administrative Order 13764, granting water quality certification for Puget Sound Energy, Inc.’s proposed LNG facility. ACT contends that the Department violated the State Environmental Policies Act by issuing the permit even though analysis of greenhouse gas emissions for the LNG facility project was determined to be inadequate. The Puget Sound Energy LNG facility is being constructed at the Port of Tacoma, and is expected to be used to fuel ships, and to provide natural gas for local and commercial customers. According to the project’s website, the facility will be too small to be used for LNG exports.

Pipelines: Dakota Access Seeks to Waive Hearing Requirements for Additional Pipeline Pump Station 

On July 10, 2019, the North Dakota Public Service Commission (Commission) issued a Notice of Opportunity for Hearing following a request by Dakota Access, LLC, to waive hearing requirements for an additional Dakota Access pipeline pump station. According to the notice, the additional station would be located in Emmons County and would transport up to 1.1 million barrels of crude oil per day. Dakota Access filed an application to amend the pipeline’s current Certificate of Corridor Compatibility 179 and Route Permit 191 to allow for the additional pump station. The Commission is accepting written public comments on the application. Additionally, those with an interest in the project can file a request for hearing on the matter. The notice states that the Commission may make a decision without a hearing.

Production and Operation: Energy Information Administration Releases Short-Term Energy Outlook

On July 9, 2019, the Energy Information Administration (EIA) released its Short-Term Energy Outlook (forecast). Some highlights from the forecast include an increase in global oil production by 0.1 million barrels per day over the next year, due to the expected decrease in oil demand for 2019. The forecast also states the “U.S. crude oil production averaged 11.0 million b/d in 2018, up 1.6 million b/d from 2017, achieving a record high for total production and year-over-year growth.” Average gas prices for June were lower than May and are expected to remain around $2.65 per gallon in 2019 and $2.76 per gallon in 2020. The forecast predicts that U.S. electricity generation from coal will continue to decline, along with the use of nuclear power.

Public Health: Ohio Department of Natural Resources Works to Correct Data Used in University of Toledo Hydraulic Fracturing Study 

On June 21, 2019, Athens News published an article stating the Ohio Department of Natural Resources (ODNR) was working with the University of Toledo to correct data used in the University study associating indoor radon levels with hydraulic fracturing activities. The University also now includes a note in the news release of the study, stating the University was working with the ODNR to “examine the terminology used in this study related to fracking wells.” The study titled, Impact of the Hydraulic Fracturing on Indoor Radon Concentrations in Ohio: A Multilevel Modeling Approach, was published by Frontiers in Public Health on April 10, 2019. According to Athens News, the study incorrectly stated the total number of deep-shale hydraulic wells in Ohio, as well as incorrectly stated the number of deep-shale wells in certain counties in the state. Mark Bruce, a spokesperson for the ODNR’s Division of Oil and Gas Resource Management told Athens News that “[t]he Division is ready to help the authors [of the study] utilize and analyze oil and gas well data so that cited information is presented accurately because currently the Division is confident it is not.”

From the National Oil & Gas Law Experts:

Charles Sartain, Smart Pig Technology … and the Texas Merger Doctrine, (July 8, 2019)

John McFarland, Trial v. Dragon – The Duhig Doctrine and Estoppel by Deed, (July 8, 2019)

Ann Navaro & Christine Wyman, Highlights from the Trump Administration’s Rulemaking Agenda, (July 9, 2019)

Pennsylvania Legislation:

Act 20: Provides for transfer of money from the Oil and Gas Lease Fund into the Marcellus Legacy Fund (Enacted from SB 712 - June 28, 2019).

Act 1A: Details Oil and Gas Lease Fund Appropriations (Enacted from HB 790 - June 28, 2019)

Act 14A: Details federal appropriation amounts for natural gas pipeline safety (Enacted from SB 242 - June 28, 2019)

SB619: would amend the Clean Streams Law to only require reporting to DEP if the unauthorized discharge could cause a violation of water quality or if it is reportable under federal requirements (Third consideration and final passage (Senate), Referred to Environmental Resources and Energy (House) - June 27, 2019)

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

“What’s up with drilled but uncompleted wells?” - Shale Gas Reporter

“Pipeline infrastructure lags behind production boom” - E&E News

“U.S. oil output gains to outpace global demand growth until 2020: Goldman” - Reuters

“Permian Poised for Next Pipeline Wave” - Rigzone

“Rig count falls as New Mexico surpasses Oklahoma in drilling activity” - Houston Chronicle

“Philadelphia refinery closing reverses two years of U.S. capacity gains” - Reuters

“Atlantic Coast Pipeline Developer Stops Construction” - WVPB

“The U.S. Is Overflowing With Natural Gas. Not Everyone Can Get It.” - Wall Street Journal

“National Grid to NYC customers: Support the Williams Pipeline or no new service” - Grist

“Drilling Down: Top 10 drillers so far this year” - Houston Chronicle

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.

This week we published a new Shale Law in the Spotlight article: Shale Law in the Spotlight – Pennsylvania Supreme Court Rules that Residents of Neighboring Municipality Can Provide Testimonial Evidence in Land Use Hearing on the Impacts of Natural Gas Drilling

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