Shale Law Weekly Review - September 17, 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.

Pipelines: Circuit Court Rules PennEast Pipeline Cannot Move Forward on Condemnation Lawsuit Against New Jersey 

On September 10, 2019, the U.S. Court of Appeals for the Third Circuit ruled PennEast Pipeline Company (PennEast) was barred by the Eleventh Amendment from bringing a suit against New Jersey to obtain property under eminent domain (In re: PennEast Pipeline Company, LLC, No. 19-1191). PennEast was granted approval for their pipeline project which required access to several properties owned by the state of New Jersey. PennEast filed suit under § 717f(h) of the Natural Gas Act (NGA), which allows the “necessary right-of-way” to construct a pipeline. The court noted that the power of eminent domain and the power to bring a state into federal court were two separate issues. The Eleventh Amendment to the U.S. Constitution gives states immunity from suit by private parties.  The court ultimately remanded the case back to the district court for dismissal under the grounds that “New Jersey’s sovereign immunity has not been abrogated by the NGA.”

Oil and Gas Leasing: California Legislature Passes Bill Limiting New Oil and Gas Leases for Infrastructure

On September 9, 2019 the California Senate passed Assembly Bill 342 prohibiting new oil and gas leases on public lands used to support production on certain federal lands. More specifically, the bill prevents leases on public lands for oil and gas-related infrastructure that would be used to support oil and gas production on federally protected lands. The bill defines “federally protected land” as “a national monument, park, wilderness area, wildlife refuge, or wilderness study area.” The bill does not prohibit maintaining and repairing current pipelines, and does not prohibit leases for oil and gas infrastructure used to support production on state lands. The bill previously passed the House on May 22, 2019, and was sent to the governor for signature on September 12, 2019. 

State Regulation: New Hampshire Governor Approves Bill Prohibiting Offshore Oil and Natural Gas Exploration

On September 10, 2019, New Hampshire’s governor approved Senate Bill 76, prohibiting offshore oil and natural gas exploration, development, and production in coastal waters of the state. According to the Associated Press, Governor Chris Sununu signed the bill stating that it was “another step in the right direction.”  The bill prevents the Department of Environmental Services from issuing any permits, approvals, or endorsements for “oil or natural gas exploration, development, or production in coastal state waters.”  The bill will take effect on November 10, 2019.

Electricity Generation: Pennsylvania Public Utility Commission Releases Electric Power Outlook Showing Increase in Natural Gas Generation and Alternative Energy Usage

In August 2019, the Pennsylvania Public Utility Commission (PUC) released the Electric Power Outlook for 2018 to 2023. The report shows an increase in natural gas generation as well as increasing usage of alternative energy resources. More specifically, natural gas generation was projected to contribute “greater than 60 percent of on-peak capacity” in some areas.  According to the report, natural gas generation provides important adaptability that is “essential for managing wind and solar variability.”  The report predicts that the amount of electricity supplied by alternative resources will increase to a total of 18 percent by 2021.  Some alternative energy resources include solar, wind, biologically derived methane gas, and coal mine methane. 

From the National Oil & Gas Law Experts:

George Bibikos, At the Well Weekly, (September 13, 2019)

Ann Navaro, Sara Burgin, & Daniel Pope, EPA Repeals Obama Rule Defining Waters of the U.S., (September 13, 2019)

Nina Howell, Ryan Pereira, Gaffney, Cline & Associates, LNG in Europe: Current Trends, the European LNG Landscape and Country Focus, (September 16, 2019)

Charles Sartain, Gas Well Operator’s Injunction Against Texas Town is Dissolved, (September 12, 2019)

John McFarland, Chesapeake v. Bell – Another Decision Construing an Express Drainage Offset Clause, (September 10, 2019)

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

“Exclusive: Exxon Agrees $4 Billion Sale of Norway Oil and Gas Assets – Sources” - Reuters

“New Permian Gas Pipelines Will Reduce Flaring, But What About Prices?” - Forbes 

“House Approves Oil Drilling Ban Off Atlantic, Pacific Coasts” - Associated Press 

“A Giant Bet Against Natural Gas Is Blowing Up” - Wall Street Journal

“Dutch Government Aims to Halt Gas Extraction By Mid-2022” - Associated Press

“Minn. Oil Pipeline Fight Highlights Democratic Dilemmas” - Associated Press 

“Gas Plants Will Get Crushed by Wind, Solar by 2035, Study Says” - Bloomberg

“US Wants Energy Dominance Regardless Of What Happens To Oil Prices, Deputy Energy Secretary Says” - CNBC

“Loosening Methane Rule Could Hurt U.S. Gas Abroad — Experts” - E&E News 

“N.Y. To Fight FERC's Decision On Constitution Project” - Associated Press

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Check out the August 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 - May 15, 2018

Written by:

Jacqueline Schweichler - Education Programs Coordinator

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

Municipal Regulation: Youngstown Voters Fail to Pass Ballot Initiative on Hydraulic Fracturing

On May 8, 2018, the voters of Youngstown failed to pass the ballot initiative, Youngstown Drinking Water Protection & Fair Elections Bills of Rights. The initiative would have recognized that Youngstown residents have the right to clean water and the right to be free from some types of fossil-fuel development.  Initially, the Mahoning County Board of Elections refused to include the initiative on the ballot, but was then compelled to include it by the Ohio Supreme Court. The initiative lost with 56% of the votes against the initiative and 44% in favor.

Pipelines: Louisiana Court Rules Bayou Bridge Pipeline Permit Failed to Follow Guidelines

On April 30, 2018, the 23rd Judicial District Court in Louisiana ruled that the Coast Use Permit issued to Bayou Bridge Pipeline, LLC (Bayou Bridge) failed to apply all pertinent guidelines (Harry Joseph Sr., et al., v. Louisiana Dept. of Natural Resources). The judge stated that the Bayou Bridge pipeline has the potential to impact ecologically sensitive areas such as the Atchafalaya Basin and other wetlands. In the order, the judge remanded the case to the Department of Natural Resources (DNR) and required Bayou Bridge to develop environmental protection and emergency evacuation plans prior to the continued issuance of the permit.  The case was brought by the Gulf Restoration Network, The Atchafalaya Basinkeeper, Bold Louisiana, and other environmental groups who argued that DNR did not consider potential pollution, spills, noise and traffic, and other impacts the pipeline would have on the area. For more information on recent Bayou Bridge legal developments, see the Shale Law in the Spotlight: Bayou Bridge Pipeline Project- An Overview of the Current Legal Developments.

State Regulation: New York Governor Proposes Bill to Prohibit Offshore Drilling in New York

On May 4, 2018, New York Governor Cuomo presented a new bill to prohibit offshore drilling and exploration in New York waters. The bill, entitled “Save Our Waters,” will amend New York’s environmental conservation law to prohibit state land leasing for oil or gas production within the North Atlantic Planning Area. The bill also would prohibit the shipment of offshore crude through navigable waters of New York. According to the Governor, the purpose of the bill is to prevent environmental disaster, safeguard New York’s offshore assets, and increase support for renewable energy development.

International Development: International Energy Agency Publishes Offshore Energy Outlook

On May 4, 2018, the International Energy Agency (IEA) published its 2018 Offshore Energy Outlook, a projection of global offshore oil and natural gas production. The study projects forward to 2040 and suggests that all energy-related offshore activity, including wind energy, will increase. According to IEA’s possible scenarios, the offshore energy sector may require $4.6 trillion or $5.9 trillion in cumulative capital spending up through 2040. The study also suggests that there will be a rapid increase in floating drilling facilities, while use of fixed platform facilities are expected to increase more slowly. In addition, the study notes that as more offshore projects are initiated, offshore platform decommissioning will become an increasingly important issue by 2040.

Pennsylvania Actions and Notices:

Department of Environmental Protection

• Pennsylvania to hold public hearing and extend comment period for Sunoco permit modification application 
•  Pennsylvania announces creation of new grant program with funds collected from Sunoco Pipeline

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.

Check out this week’s Shale Law in the Spotlight: Mariner East Pipeline Project - An Overview of Status and Current Legal Developments.

Stay informed with our monthly Agricultural Law Brief located here.

U.S. Department of Interior Settles with Environmental Defense Center Over an Offshore Hydraulic Fracturing Dispute

Recently, the U.S. Department of the Interior declared that it would perform an environmental impact assessment of hydraulic fracturing in the Pacific Ocean under the terms of a settlement it has reached with the Environmental Defense Center. The U.S. Department of the Interior also agreed to suspend new permit applications off the coast of California until the environmental effects of offshore hydraulic fracturing are better known. Existing offshore drilling permits, however, will remain intact.

This settlement decision resolves a claim for declaratory and injunctive relief filed by the Environmental Defense Center in March 2014 against the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM). The Environmental Defense Center alleged that BSEE’s approval of 51 permits for well stimulation offshore California was unlawful under the National Environmental Policy Act (NEPA), the Administrative Procedure Act (APA), and the Outer Continental Shelf Lands Act (OCSLA).

In February 2015, the Center for Biological Diversity brought an action against BSEE and BOEM arguing that “the Bureaus have a pattern and practice of rubber-stamping permits to frack with no analysis of the environmental impacts, no determination of whether such activities are consistent with the plans governing oil development and production in the Pacific Region or California’s Coastal Management Program, and no public involvement.”

The environmental impact assessment is scheduled for completion by May 28, 2016.

Written by Chloe Marie - Research Fellow

02/08/2016

U.S. DEPARTMENT OF INTERIOR AGREES TO DISCLOSE RECORDS ABOUT HYDRAULIC FRACTURING OCCURING IN THE GULF OF MEXICO’S WATERS

On June 2 2015, the U.S. Department of Interior agreed to reveal information about the use of the hydraulic fracturing technique in the Gulf of Mexico’s waters as part of a legal settlement with the Center for Biological Diversity (CBM).

The Center for Biological Diversity filed a lawsuit against the U.S. Department of Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) “challeng[ing] BSEE’s and BOEM’s failure to issue a timely response to its FOIA request for records related to the extent that BSEE and BOEM have allowed hydraulic fracturing and other unconventional well stimulation in offshore oil and gas operations in the Gulf of Mexico”.

The agreement stipulates that “BOEM and BSEE will begin providing [the CBM] with a rolling production of non-exempt documents subject to FOIA that are responsive to the FOIA request as narrowed beginning on July 1, 2015, and will complete the production by April 30, 2016”. 

Written by Chloe Marie - Research Fellow

06/08/2015