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.
Municipal Regulation:
Boulder County Approves Temporary Moratorium on New Oil and Gas Development
Applications
On June 28, 2019, the
Board of County Commissioners (Board) approved Resolution 2019-59 (Resolution), issuing a temporary moratorium on
new oil and gas development applications and seismic testing in Boulder County,
Colorado, according to the county’s press release. The moratorium was issued in response to SB 19-181 titled, Protect Public Welfare Oil and Gas Operations, which
was signed into law on April 16, 2019. The new state law gives local
governments more authority to regulate oil and gas land use in order to
minimize the effects of oil and gas operations on public safety and the
environment. The moratorium will allow Boulder County time to amend or create
regulations compatible with the new law. A public hearing is scheduled for July
16, 2019, to hear public testimony and to consider any final changes to the
moratorium.
Pipelines: Landowners
Petition Supreme Court for Review of Preliminary Injunctions Issued to Mountain
Valley Pipeline
On July 3, 2019,
landowners filed a Petition for Writ of Certiorari with the United States Supreme Court requesting
review of preliminary injunctions issued for the Mountain Valley Pipeline (Givens
v. Mountain Valley Pipeline, LLC). More specifically, the petition asks the
Supreme Court to review the issue of whether preliminary injunctions can be
used to grant possession of land to pipeline companies under the Natural Gas
Act before the company has paid just compensation to landowners. Earlier, on
February 5, 2019, the U.S. Court of Appeals for the Fourth Circuit issued an opinion that Mountain Valley Pipeline could obtain immediate access to
land easements granted by district court injunction orders without waiting for
a just compensation hearing (Mountain Valley Pipeline, LLC v. 6-56 Acres,
No. 18-1159). If accepted by the Supreme Court for review, the parties will be
given time to file briefs explaining their arguments in the case.
Pipelines: Environmental
Groups File Complaint Against U.S. Army Corps of Engineers for Issuance of
Keystone XL Permit
On July 1, 2019, several
environmental groups (Plaintiffs) filed a lawsuit in the U.S. District Court for the District of Montana against
the U.S. Army Corps of Engineers (The Corps) for the issuance of a permit
approving the Keystone XL pipeline (Northern Plains Resource Council v. U.S.
Army Corps of Engineers, No. 4:19-cv-00044-BMM). Plaintiffs consist of the
Northern Plains Resource Council, Bold Alliance, Natural Resources Defense
Council, Sierra Club, Center for Biological Diversity, and Friends of the
Earth. The Corps issued a Nationwide Permit 12, which allows pipeline work in “navigable
waters” without changing the “pre-construction contours of waters of the United
States.” According to the Complaint, the permit approves most of Keystone XL’s
water crossings “without analyzing its project-specific impacts” on the
environment. The proposed Keystone
XL pipeline
is expected to transport crude oil from Alberta, Canada to Steel City,
Nebraska.
PA Impact Fees:
Pennsylvania Public Utility Commission Distributes $252 Million in Gas Drilling
Impact Fees
On June 27, 2019, the
Pennsylvania Public Utility Commission (PUC) issued a press release detailing the most recent annual collection of gas
drilling impact fees, which totaled nearly $252 million. According to the press
release, the fees are significantly higher than the previous year due to the
increase in gas wells from 8,518 last year to 9,560 this year. Under the Unconventional
Gas Well Impact Fee Act (Act 13), the PUC is responsible for collecting and
distributing the impact fees to municipalities throughout the state. On the
PUC’s Act 13 website, fee distributions are separated by county, with
Washington County receiving the largest distribution of approximately $8.4
million. A further breakdown of the disbursements, including disbursements by
year, can be found on the PUC Act 13 website.
Public Health: Concerned
Health Professionals of New York Publish Compendium on Hydraulic Fracturing
On June 19, 2019, the Concerned Health Professionals of New York released the sixth edition of a hydraulic
fracturing study titled, “Compendium of Scientific, Medical, and Media Findings
Demonstrating Risks and Harms of Fracking” (Compendium). The compendium is compiled of research from medical
and scientific journals, journalists, and government agencies. The compendium
analyzes how different areas such as air quality, public health, and noise
pollution may be affected by unconventional oil and gas drilling. Apart
from industry drilling activities, the study also includes findings on how oil
and gas infrastructure impacts public health and climate change. Infrastructure described in the study include
compressor stations, pipelines, liquified natural gas facilities, and power plants.
The compendium concludes that an overall ban on hydraulic fracturing would be
needed to combat the adverse effects on public health and the environment.
From the National Oil & Gas Law Experts:
John McFarland, How to Identify and Resolve Your Oil and Gas Royalty Underpayments, (July 1, 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 14A: Details federal appropriation amounts for natural gas pipeline
safety (Enacted from SB 242 - June 28, 2019)
“America's liquefied natural gas boom may be on a
collision course with climate change” - CNN Business
“Proposed Oregon pipeline could give Utah’s natural gas
industry a big boost. Here’s why.” - The Salt Lake Tribune
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This week we published
a new Shale Law in the Spotlight article: Shale Law in the Spotlight – West Virginia Supreme Court
Rules that Surface Landowners Are Not Substantially Burdened by Off-Site
Horizontal Drilling Activities
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