Sara Jenkins – Research
Assistant
Jackie Schweichler –
Staff Attorney
Brennan Weintraub –
Research Assistant
The following information is an update of recent local, state,
national and international legal developments relevant to shale gas.
Production and
Operation: Pennsylvania Quarterly Natural Gas Report Shows Continued Increase
in Production
On February 26, 2020,
the Pennsylvania Independent Fiscal Office released the Natural Gas Production Report for the fourth quarter of 2019. While the
report shows an overall increase in production from the fourth quarter in 2018,
the 7.6 percent increase equates to the “lowest growth rate in over two
years.” More specific data shows that all of the growth comes from wells
that were spudded in 2018. The number of
horizontal wells increased by 8.3 percent in the last year, and horizontal
production increased by 26.8 percent in the last two years. Susquehanna County remains the top producer by
volume in Pennsylvania, followed by Washington and Greene Counties.
According to the report, Pennsylvania is currently the second largest natural
gas producer in the United States behind Texas.
Pipelines: NiSource Subsidiary
Columbia Gas to Pay $53 Million for Safety Violations Resulting from
Massachusetts Explosions
On February 26, 2020,
U.S. Attorney Andrew Lelling announced
that NiSource subsidiary Columbia Gas will pay a $53 million fine for federal
violations that caused fatal explosions in the Merrimack Valley region of
Massachusetts in 2018. Attorney Lelling stated in a press conference that the explosions were the result of “flagrant disregard” for
the public safety while Columbia Gas was executing a pipeline replacement
project. As part of the plea deal, Columbia Gas of Massachusetts agreed
to plead guilty to violations of the Federal Pipeline Safety Act.
Columbia Gas’ parent company NiSource Inc. also agreed to sell Columbia Gas in
order to stop doing business in Massachusetts.
Columbia Gas activities will be monitored monthly by the Department of
Transportation to ensure compliance with safety regulations until the company
is sold. According to the National Safety Transportation Board, the 2018 explosions were caused by
high-pressure natural gas being released into a low-pressure distribution
system.
GHG Emissions: BP
Announces Split with Three U.S. Trade Associations Following Net Zero Goal
On February 26, 2020,
British Petroleum (BP) announced its split with three U.S. trade associations following its decision to become a net zero company by 2050. BP decided to leave
the American Fuel and Petrochemical Manufacturers (AFPM), the Western States
Petroleum Association (WSPA), and the Western Energy Alliance (WEA) after
determining the organizations did not align with BP’s climate-related
policies. BP issued a report finding it was not in agreement with AFPA and WSPA on their stance
on carbon pricing, and with WEA on its policy regarding federal regulations of
methane. The move follows BP’s February 12, 2020, outline on how it plans
to reach net zero carbon emissions while cutting carbon intensity and methane emissions
by 50 percent. BP estimates its current carbon emissions at 55 million
tons per year.
International
Development: OPEC Addresses Coronavirus Impact on Global Oil Markets at 178th
Meeting of the Conference
On March 5, 2020, the
Organization of the Petroleum Exporting Countries (OPEC) held an extraordinary session of their semi-annual Meeting of the Conference
to address the impact of the COVID-19 (Coronavirus) outbreak on global oil
markets. At the December 2019 meeting, OPEC projected global oil demand to grow by
1.1 million barrels per day in 2020, but the projection has now fallen to 0.48
million barrels per day. The Conference
recommended production adjustments of 500 thousand barrels per day to extend
throughout 2020, with an additional adjustment of 1.5 million barrels per day
until June 30, 2020. The Conference
plans to reconvene on June 9, 2020.
From the National Oil & Gas Law Experts:
AGENCY PRESS
RELEASES—STATE/FEDERAL
Pennsylvania
Department of Energy Press Releases:
No new releases Mar.
2–9, 2020.
U.S.
Department of Energy
No new releases Mar.
2–9, 2020.
U.S.
Environmental Protection Agency
Agency Releases Annual Automotive Trends
Report Showing Marginal Increases in Fuel Economy (Mar. 2, 2020)
EPA Announces Grant Opportunity Supporting
Innovative Solutions for Reducing Pollution (Mar. 5, 2020)
STATE
ACTIONS—EXECUTIVE/LEGISLATIVE
Pennsylvania
Executive Agencies—Actions and Notices:
No actions Mar. 9,
2020.
Pennsylvania
Legislature:
The House will reconvene
on Monday, March 16, 2020 at 1:00PM
The Senate will
reconvene on Monday, March 16, 2020 at 1:00PM unless sooner recalled by the
Pres. Pro Temp.
FEDERAL
ACTIONS—EXECUTIVE/LEGISLATIVE
Federal
Executive Agencies—Actions and Notices:
Bureau of Safety and
Environmental Enforcement
85 FR 12733 “Oil and Gas and Sulfur Operations on the Outer Continental
Shelf-Civil Penalty Inflation Adjustment” Rule (March 4, 2020)
Coast Guard
85 FR 12451 “Waterway Suitability Assessment for Operations of Liquefied
Hazardous Gas Terminal; Beaumont, TX” Proposed Rule (March 3, 2020)
Energy Department
85 FR 13152 “Notice of Orders Issued Under Section 3 of the Natural Gas Act
During January 2020” Notice (March 6, 2020)
Environmental Protection
Agency
85 FR 13055 “Approval and Promulgation of Air Quality Implementation Plans;
District of Columbia; Negative Declaration for the Oil and Gas Control
Techniques Guideline” Rule (March 6, 2020)
Federal Energy
Regulatory Commission
85 FR 12547 “Columbia Gas Transmission, LLC; Notice of Intent to Prepare an
Environmental Assessment for the Proposed Leach XPress Project Amendment and
Request for Comments on Environmental Issues” Notice (March 3, 2020)
85 FR 12781 “Texas Eastern Transmission, LP; Notice of Revised Schedule for
Environmental Review of the Cameron Extension Project” Notice (March 4,
2020)
85 FR 12784 “National Fuel Gas Supply Corporation; Notice of Application for
Amendment” Notice (March 4, 2020)
85 FR 12911 “PennEast Pipeline Company, LLC; Notice of Intent To Prepare an
Environmental Assessment for the Proposed PennEast 2020 Amendment Project and
Request for Comments on Environmental Issues” Notice (March 5, 2020)
85 FR 12914 “Northwest Pipeline LLC; Notice of Request Under Blanket
Authorization” Notice (March 5, 2020)
Fish and Wildlife
Service
85 FR 13181 “Draft Environmental Assessment and Draft General Conservation
Plan for Oil and Gas Activities in Santa Barbara County, California” Notice
(March 6, 2020)
Pipeline and Hazardous
Material Safety Administration
85 FR 13703 “Pipeline Safety: Request for Special Permit; Empire Pipeline,
Inc.” Notice (March 9, 2020)
House
Energy and Commerce Committee Actions:
H.R.6112 “To Require Operators of Oil and Gas Production Facilities to
Take Certain Measures to Protect Drinking Water, And For Other Purposes” Referred
to the House Committee on Natural Resources (Mar. 5, 2020).
Senate
Energy and Natural Resources Committee Actions:
No new actions Mar. 2–9,
2020.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“U.S. Oil and Gas Output in December Pulled Back From Record Highs,” Reuters
“U.S. Oil and Gas Output in December Pulled Back From Record Highs,” Reuters
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