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: PA
Appeals Court Rules that Grandmother Lacks Standing to Challenge Natural Gas
Well Location
On June 6, 2019, the
Commonwealth Court of Pennsylvania upheld a trial court ruling that a grandmother concerned over her
granddaughter’s health lacked standing to challenge the location of a natural
gas well site (Worthington v. Mount Pleasant Township, No. 1149 C.D.
2018). The Plaintiff, Jane Worthington, was denied party status at a Mount
Pleasant Township Board of Supervisors (Board) hearing regarding approval of a
conditional use permit for the well site. Ms. Worthington requested party
status to contest the location of the well site over concerns that wind could
carry benzene from the site to her granddaughter’s school nearby, affecting her
granddaughter’s already poor health. Ultimately, the Commonwealth Court agreed
with the Board and the trial court, finding that Ms. Worthington’s “theoretical
concerns” did not amount to the “substantial, direct and immediate interest”
required to establish standing.
Surface Owner Rights: WV
Supreme Court Rules Surface Landowners Not Substantially Burdened by Horizontal
Drilling
On June 10, 2019, the
Supreme Court of Appeals of West Virginia ruled that surface landowners were not substantially burdened by the
horizontal drilling used to develop the Marcellus shale beneath their
properties (Andrews v. Antero Resources Corp., No. 17-0126).
Petitioners, consisting of various surface landowners, argued that their use
and enjoyment of land was being improperly and substantially burdened by the
drilling operations. The Petitioners alleged the drilling activities amounted
to nuisance and negligence caused by heavy equipment, truck traffic,
vibrations, noise, and dust. Respondents, Antero Resources Corporation and
Antero Resources Bluestone, LLC had obtained development leases from severance
deeds that retained the mineral rights beneath Petitioners’ properties. The court
found that the Respondents were not causing any physical damage to the
Petitioners’ properties, and the Respondents were within their surface use
rights to conduct the activities in question.
International
Development: Norway’s Parliament Votes for Increased Restrictions on Fossil
Fuel Investments
On June 12, 2019,
Norway’s Parliament voted to increase restrictions on fossil fuel investment
within Norway’s sovereign wealth fund. According to Reuters, the vote prohibits investment in companies that “mine more than
20 million tonnes of coal annually or generate more than 10 gigawatts (GW) of
power from coal.” Norway’s sovereign wealth fund currently invests in 341 oil and gas companies around the world.
Reuters reports that the new rules would mean Norway’s fund would divest its
stake in companies such as Glencore and Anglo American.
LNG Exports: Commission
Approves New Pier for Natural Gas Transportation in New Jersey
On June 12, 2019, the
Philadelphia Inquirer reported the approval of plans to construct a new pier in Greenwich
Township, New Jersey for the transport of liquified natural gas (LNG). The
Delaware River Basin Commission, made up of representatives from Pennsylvania,
New Jersey, Delaware, New York, and the federal government, approved the plans
at a meeting on June 12. The pier project, proposed by Delaware River Partners, LLC, would allow large
tankers to dock along a 1600-foot pier, increasing the capability to ship
several commodities, including LNG produced from Pennsylvania wells. The
project is expected to cost $96 million.
LNG Exports: City
Council Approves Liquified Natural Gas Facility in Southwest Philadelphia
On June 13, 2019 the Philadelphia City Council approved ordinance 181063, which creates a partnership between Philadelphia Gas Works (PGW)
and Passyunk Energy Center, LLC (PEC) to build and operate liquified natural
gas (LNG) facilities in the city. According to Whyy.org, the city council approved the ordinance with a 13-4 vote. The project will be funded by PEC, and is expected to generate $4 million per
year in revenue for PGW. The new LNG facilities will be located within PGW’s
existing Passyunk Plant. No additional pipelines or water supplies will be
needed for the project.
From the National Oil
& Gas Law Experts:
Romany Webb, Climate Change, Ferc, And Natural Gas
Pipelines: A New Sabin Center White Paper, (June 10, 2019)
Pennsylvania
Legislation:
SB 305: would allow landowners to receive compensation in certain
eminent domain actions by the Delaware River Basin Commission (Re-referred to Appropriations - June 11, 2019)
HB 1392: would create an electric vehicle road use fee in accordance
with the oil company franchise tax for highway maintenance and construction
(Re-committed to Rules - June 10, 2019)
“Stanford scientists creating ways to quickly,
accurately and inexpensively find natural gas leaks” -Stanford News
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This week we published
two new Shale Law in the Spotlight articles: Shale Law in the Spotlight – Existing LNG
Export Facilities in the United States: Alaska, Louisiana, Texas, and Maryland and Shale Law in the Spotlight – Delayed or
Abandoned LNG Export Projects in the United States: Louisiana, Maine, and Texas
Check the May Agricultural Law Brief! Each month we compile the biggest legal
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