Showing posts with label Mariner East pipeline. Show all posts
Showing posts with label Mariner East pipeline. Show all posts

Monday, December 9, 2019

Shale Law Weekly Review - December 9, 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.
LNG Exports: FERC Approved Four LNG Projects in Texas
On November 21, 2019, the Federal Energy Regulatory Commission (FERC) approved construction of four liquefied natural gas (LNG) projects and their associated facilities in Texas.  These projects include the Texas LNG Brownsville Project, a project involving the construction and operation of new LNG export facilities along the Brownsville Ship Channel in Cameron County, with an export capacity of approximately 4 million metric tonnes per annum (MMtpa).  Two of the new LNG facilities will be the Rio Grande Terminal Project and the Annova LNG Brownsville Project, both located in the Port of Brownsville.  These facilities would have a capacity to export up to 27 MMtpa and 6 MMtpa, respectively.  The fourth project, the Stage 3 LNG Project, would expand the existing Corpus Christi Liquefaction’s LNG terminal by increasing the export capacity by an additional 11.45 MMtpa. 

Municipal Regulation: City of Broomfield, Colorado, Extends Temporary Moratorium on Oil and Gas Development Applications
On December 3, 2019, the Broomfield City Council passed Ordinance No. 2111 to approve a 6-month extension of a prior moratorium on processing or approving oil and gas development applications within the city and county of Broomfield.  The prior moratorium had been set to expire on December 4, 2019, and will now be in place until June 4, 2020. The council had previously directed its staff to prepare draft oil and gas regulations following the enactment of SB 19-181; however, it needed additional time to complete research and prepare related regulations.

Methane Emissions: Pipeline Companies File Legal Actions Against Texas Railroad Commission over Flaring Permits
On November 20, 2019, Williams MLP Operating, LLC and Mockingbird Midstream Gas Services, LLC petitioned the 345th Civil District Court in Travis County for a judicial review of an order granting a flaring exception to EXCO Operating Company, LP.  The plaintiffs are owners and operators of the Eagle Ford Gathering System that transports gas for the EXCO wells at issue.  EXCO requested an exception to the no-flaring rule for more than 130 wells in the Eagle Ford Shale Field.  The request was granted by the Railroad Commission of Texas in August 2019 pursuant to Statewide Rule 32.  Under Rule 32, operators are required to obtain a permit to flare gas from oil wells; however, plaintiffs argued that EXCO had no need to flare gas in this context because the company was already connected to a gathering system.  The plaintiffs also pointed out that for the period from 2013 through 2019, the Commission granted no less than 35,000 flaring permits.

Climate Change: Federal Judge Denies Exxon Motion to Remove Climate Change Lawsuit from State to Federal Court
On December 6, 2019, the U.S. District Court for the District of Massachusetts denied Exxon Mobil Corporation’s motion to remove the case from the Superior Court of Suffolk County, Massachusetts to federal court (Massachusetts v. Exxon Mobil Corp., No. 1:19-cv-12430). Massachusetts Attorney General Maura Healey filed this case in October 2019 alleging that Exxon violated the state’s Consumer Protection Act by deceiving investors and consumers about the consequences of climate change.  Exxon described this lawsuit as a “culmination of a multi-year plan concocted by Plaintiffs’ attorneys, climate activists, and special interests to force a political and regulatory agenda that has not otherwise materialized through the legislative process.”  Exxon argued that this lawsuit involves questions of federal law not state law and thus filed a request on November 29, 2019, before the federal court to remove the case from state court. 

Production and Operation: EIA Reports that U.S. is Net Petroleum Exporter for the First Time in 50 Years
On December 5, 2019, the U.S. Energy Information Administration (EIA) reported that in September 2019, and for the first time in nearly 50 years, the United States exported more petroleum than it imported.  This development is partially due to crude oil production more than doubling in the past decade. Specifically, crude oil production increased from 5.3 million b/d in 2009 to 12.1 million b/d through September 2019.  The change is also the result of decreasing crude oil imports from outside countries as well as the 2015 lifting of federal restrictions on oil exports.  The U.S. EIA, however, pointed out that the country is still a net importer of crude oil that comes mainly from Canada and Mexico.

Pipelines: Chester County District Attorney’s Office Files Suit Against Energy Transfer for Bribery and Conspiracy over Mariner East Pipeline
On December 3, 2019, Chester County District Attorney Tom Hogan announced in a press release that his office instituted criminal proceedings against Energy Transfer for bribery, conspiracy, and other related offences.  District Attorney Hogan alleged that Energy Transfer unlawfully hired armed Pennsylvania constables to act as private agents for the protection of the Marine East Pipeline in lieu of private security firms.  He argued that these constables were outside their jurisdictions and illegally used their badges and positions to intimidate the local population.  In addition, Hogan claimed that Energy Transfer developed an illicit scheme to conceal payments made to the constables, which would also hide the company’s fraudulent involvement.  All those implicated have been arrested and now await the hearing.  According to Energy Transfer, the allegations have no merit as the constables were legally hired through an “independent, Pennsylvania-based security firm.”

GHG Emissions: Spanish Company Repsol Makes a Step Towards Reducing GHG Emissions to Meet the Paris Climate Agreement Requirements
On December 2, 2019, Spanish Energy Company Repsol announced its aim to become a carbon neutral company by 2050.  According to their announcement, the company is the first oil and gas company to entertain a zero emissions objective.  Repsol is committed to producing a business plan that sets out steps towards limiting increases in global temperature to below 2 degrees Celsius in line with the Paris Climate Agreement.  In this respect, and among others, the company developed a low-carbon transition plan with the aim of increasing electricity generation capacity up to 7,5000 MW by 2025 from renewable energy sources.  In addition, the company has implemented a new oil and gas price scenario, including reevaluating some financial assets, with an after-tax accounting charge of about 4.8 billion euros. 

From the National Oil & Gas Law Experts:
Charles Sartain, The Duhig Rule Explained and Distinguished (Dec. 5, 2019)
John McFarland, The Economics of Flaring (Dec. 2, 2019)
John McFarland, Fight Over Flaring in the Eagle Ford (Nov. 25, 2019)
U.S. Energy Information Administration, Natural gas venting and flaring increased in North Dakota and Texas in 2018 (Dec. 6, 2019)
National Legislation
Engineers Corps
Notice; Occupational Safety and Health Programs for Federal Employees (Dec. 5, 2019)
Environmental Protection Agency
Final Action; Finding of Failure to Submit a Clean Air Act Section 110 State Implementation Plan for Interstate Transport for the 2015 Ozone National Ambient Air Quality Standards (NAAQS) (Dec. 5, 2019)
Pennsylvania Actions and Notices
Department of Conservation and Natural Resource
Execution of Oil and Gas Lease for Publicly-Owned Streambeds (Dec. 7, 2019)
Department of Environmental Protection
Applications, Actions and Special Notices (Dec. 7, 2019)
Availability of National Pollutant Discharge Elimination System General Permit for Discharges of Stormwater Associated with Construction Activities (PAG-02) (Dec. 7, 2019)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Oil: OPEC Nations Grapple With Oversupply” - Energy Wire
“Cornyn Sees Us Positioned to Share Energy Strength With Its Allies” - Oil & Gas Journal
“Shale’s Debt-fueled Drilling Boom is Coming to an End” - Oilprice.Com
“Europe Was Favored Destination For US LNG In November Amid Activity Ramp-up” - S&P Global
“Enviros: Proposed LNG Plant Will Harm Rare Marsh Bird” - Houston Chronicle
“Trump Lawyers Defend Pipeline’s Route Across Appalachian Trail” - Bloomberg Environment
“PA. Dep And Major Oil Companies Agree: Trump Administration Shouldn’t Roll Back Methane Rules” - Pittsburgh Post-gazette
“As Climate Warnings Grow Dire, Energy Companies Face a ‘new Frontier Of Threats’” - Npr
“Eagle Ford: Faded Texas Oil Field Offers Austerity Lesson For U.S. Shale” - Energy Wire
“Oklahoma: Earthquake Rattles Town Already Shaken 8 Years Ago” - Energy Wire
“Frac Sand Slump Continues to Sting Industry” - Houston Chronicle
“An Oil Giant Plans for Climate Change” - The Wall Street Journal
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Tuesday, May 29, 2018

Shale Law Weekly Review - May 29, 2018

Written by:
Brennan Weintraub - Research Assistant
Jackie Schweichler - Education Programs Coordinator

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

Pipelines: Ohio EPA Seeks Feedback on Proposed Pipeline to Run Through Parts of the Ohio Valley
On May 23, 2018, the Ohio Environmental Protection Agency extended its public comment period regarding the creation of Shell’s Falcon Pipeline, which would carry ethane gas through the eastern part of the state to western Pennsylvania. In particular, the agency is seeking comment on the potential impacts that the pipeline might have on the state’s water sources. The project has received some pushback from environmental groups, especially the Ohio Sierra Club, and members of the local coal industry, who fear that the expansion of natural gas in the region could have negative effects on their own business.

Electricity Generation: EIA Reports Electric Power Sector Uses Lowest Levels of Fossil Fuels since 1994
On May 24, 2018, the U.S. Energy Information Administration (EIA) reported in their Monthly Energy Review that in 2017 the electric power sector utilized the least amount of fossil fuels since 1994. According to EIA, fossil fuel consumption by the power sector has declined due to the decreased use of coal and petroleum, even though consumption of natural gas has increased. Additional factors affecting this trend include changes in fuel composition and improvements in electricity generating technology. As of 2017, more coal was consumed by the power sector than natural gas, however, natural gas power plants produced more electricity. The EIA also reports that changes in consumption and efficiency assisted in producing the lowest levels of carbon dioxide emissions from the electric power sector since 1987.

Pipelines: PUC Judge Orders Sunoco to Shut Down the Mariner East Pipeline
On May 24, 2018, administrative judge Elizabeth Barnes of the Pennsylvania Public Utility Commission ordered that Sunoco halt construction on its Mariner East pipeline, which is designed to carry natural gas from western Pennsylvania to the company’s processing facility in Marcus Hook, near Philadelphia. The judge ordered that Sunoco provide a public risk analysis of the pipeline and provide assessments of connected pipelines. The project had previously been halted due to concern over sinkholes, but the PUC allowed the project to restart construction earlier this month.

Pipelines: FERC Extends Comment Period on Revising Natural Gas Pipeline Process
On May 23, 2018, the Federal Energy Regulatory Commission (FERC) issued an order extending the public comment period regarding proposed changes to its policies on interstate transportation of natural gas to July 25. The agency is considering changes in how it determines whether proposed pipelines meet the standards of public convenience and necessity and is soliciting comments from the public to determine which, if any, additional factors should be considered. FERC’s current policies date back to 1999 and, according to the agency, are in need of an update due to “significant changes in the energy markets, as well as in the production, use and consumption of natural gas.”

Pipelines: Atlantic Coast Pipeline Begins Construction
On May 22, 2018, Dominion Energy began construction on the Marts Compression Station for the Atlantic Coast Pipeline. The station will provide compression to support the pipeline’s transmission of natural gas between Harrison County and Greensville County, Virginia. While work on the pipeline has begun, construction on a portion of the pipeline will be avoided due to a court decision from last week. Specifically, on May 15, 2018, the U.S Court of Appeals for the Fourth Circuit issued an order vacating the Dominion Energy’s Incidental Take Statement for the Atlantic Coast Pipeline (Sierra Club, et al. v. Atlantic Coast Pipeline, No. 18-1083). The court stated that the endangered species take limits were “so indeterminate that they undermine the Incidental Take Statement’s enforcement and monitoring function under the Endangered Species Act.” For now, approximately ten miles of the pipeline will need to be on hold. The court stated that they will provide a more detailed opinion at a future date.

Sovereign Wealth Funds: North Dakota Oil and Gas Legacy Fund Has Earned Over $1 Billion
On May 24, 2018, Dave Hunter, the executive director of the North Dakota Retirement and Investment Office reported to the state legislature that the Legacy Fund, which sets aside thirty percent of all state revenue from oil and gas production as an emergency fund, has earned over one billion dollars since its inception in 2011. The body responsible for overseeing the fund, the Legacy and Budget Stabilization Fund Advisory Board, voted on May 25, 2018, to maintain the fund’s current asset allocation.

Pipelines: New Hampshire Supreme Court Ruling Could Reopen Debate Around Proposed Hydro Power Transmission Project
On May 22, 2018, the New Hampshire Supreme Court overturned a state PUC (Public Utilities Commission) ruling against Eversource, which sought to use electric rates to pay for an expansion to the existing Algonquin Pipeline. The court overturned the PUC’s decision, that the use of electric rates to pay for the pipeline would violate state law that requires the separation of businesses that operate power plants from those that transmit electricity, by determining that the functional separation of such businesses was not the legislature’s “overriding purpose.”  The court’s reasoning could revive the controversy around the proposed Northern Pass hydro power transmission project, which would bring hydro power down to New Hampshire from Quebec. While the body responsible for the project’s fate, the Site Evaluation Committee, has decided not to re-hear the application at this time, the ruling could provide new pathways for companies to finance similar projects in the future.


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Monday, May 21, 2018

Shale Law Weekly Review - May 21, 2018

Written by:
Brennan Weintraub - Research Assistant
The following information is an update of recent local, state, national, and international legal 
developments relevant to shale gas.
Water Quality: University Study Finds No Groundwater Impacts from Drilling
On May 3, 2018, researchers from the University of Cincinnati (Ohio) published a four-year study on the effects of hydraulic fracturing (fracking) on the groundwater of the Utica Shale region of Ohio. “We found no relationship between Ch4 [methane] concentration or source in groundwater and proximity to active gas well sites,” said geology professor Amy Townsend-Small and the five other authors of the publication.

Environmental Rights Amendment: Gas Well Permits Don’t Violate PA Constitution, Panel Says
On May 11, 2018, the Pennsylvania Environmental Hearing Board issued its opinion in the Delaware Riverkeeper Network et al. v. Commonwealth of Pennsylvania case. The Board found that the state did not breach its constitutional duties as environmental trustee by issuing permits to Rex Energy Corp. to build several natural gas wells in Butler County. The relevant constitutional provision, Art. I, §27, designates the Commonwealth as the trustee of the state’s public natural resources.

Pipelines: Pennsylvania PUC Approves Restart of Mariner East 1 Pipeline
On May 3, 2018, the Pennsylvania Public Utility Commission unanimously approved a resolution allowing the Mariner East 1 pipeline to resume operations. The pipeline had been shut down after several sinkholes appeared in the area. The owners of the pipeline, Sunoco Pipeline, took “corrective actions,” per the request of the Commission.

Pipelines: Energy Transfer Partners Gets Approval for Additional Rover Facilities
On April 25, 2018, the U.S. Federal Energy Regulatory Commission gave its approval for the Rover Pipeline to put a compressor station and 51 miles of pipeline into service in northern Ohio. Nearly all of the pipeline and most of the necessary infrastructure is already finished. The entire project is expected to be completed within the next year.

Municipal Regulation: Colorado City Leaders Approve Extension of Hydraulic Fracturing Moratorium
On May 15, 2018, the Boulder City Council unanimously approved an extension of the city’s ban on hydraulic fracturing for another two years. The city has banned the practice since 2013, despite a 2016 ruling by the Colorado Supreme Court striking down a similar ban in Longmont. The Boulder ban, however, has not yet been challenged in court.

International Development: UK Makes Changes in Administration of Shale Gas Development
On May 17, 2018, the UK government announced that it will seek to make changes to regulations governing the exploration and extraction of shale gas. Greg Clark, the Secretary of State for Business Energy, and Industrial Strategy stated to Parliament that the government would create a new administrative body, the Shale Environmental Regulator, to simplify regulations. He also announced that a new support fund would be created to help local authorities process shale applications.

National Energy Policy: President Trump Alters Policy on Reduction of Energy Usage by Federal Agencies
On May 17, 2018, President Trump issued an executive order which altered requirements established by President Obama for federal agencies to reduce their energy use by 2.5 percent per year, use clean energy sources for 25 percent of their energy needs, and reduce overall water consumption by 36 percent. The new executive order removes the specific targets put into place in 2015 and allows agencies to set their own targets instead.


Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks
Connect with us on Facebook! Every week we will post the CASL Ledger which details all our 
publications and activities from the week.
Stay informed with our monthly Agricultural Law Brief located here.
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