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.
Pipelines: Supreme Court
Hears Oral Arguments Related to Construction of the Atlantic Coast Pipeline
Across the Appalachian Trail
On February 24, 2020 the
U.S. Supreme Court heard oral arguments related to construction of the Atlantic Coast
pipeline across the Appalachian Trail (Atlantic Coast Pipeline v. Cowpasture
River Preservation Ass’n, No. 18-1587). On June 25, 2019, Atlantic
Coast Pipeline filed a Petition asking the Supreme Court to review a decision
by the U.S. Court of Appeals for the Fourth Circuit. The Fourth Circuit ruled that the U.S. Forest Service did not have the
authority to grant a special use permit giving the Atlantic Coast Pipeline a
right-of-way for construction across the Appalachian Trail on land located in
the George Washington National Forest. Typically, the Supreme Court accepts 100 to 150 cases out of over 7,000 cases that
are petitioned to the Court each year. The Supreme Court is expected to issue a
decision by the end of their current term, sometime in June or July of this
year.
Municipal Regulation:
California Energy Commission Approves Local Ordinances Limiting Natural Gas in
New Residential Construction
On February 20, 2020,
the California Energy Commission approved various local ordinance applications requiring
new residential construction to be all-electric. Several local
jurisdictions including Santa Rosa, Mountain View, Windsor, and Los Gatos
sought to exclude natural gas completely from new residential
construction. Other local jurisdictions including Berkeley, Palo Alto,
Milpitas, Healdsburg, and Brisbane require electricity for most uses in new
construction while allowing natural gas for limited use in fireplaces and
cooking. Most of the local ordinance
proposals also included
requirements for installing solar panels on new residential construction.
Additionally, Berkeley, Mountain View, and Palo Alto ordinances limit natural
gas usage in some new commercial construction.
Municipal Regulation:
Arizona Governor Signs Bill Preventing Municipalities from Denying Building
Permits Based on Utility Provider
On February 21, 2020,
Arizona Governor Doug Ducey signed House Bill 2686 preventing municipalities from denying building
permits based on the proposed utility provider for the project. The bill also states that municipalities
cannot restrict the use of a particular utility by issuing fees that would be
higher than fees imposed on other utility providers. The bill restricts the use of fines,
penalties, or other requirements that may restrict a “utility provider’s
authority to operate or serve customers.” The bill also extends the same language to
counties issuing building permits for construction costing $1,000 or more.
Wildlife Habitat: Idaho
District Court Approves Injunction on Oil and Gas Leases within Sage Grouse
Habitat Areas
On February 27, 2020,
the U.S. District Court for the District of Idaho issued a decision granting an injunction against oil and gas
leases within federally recognized sage grouse habitat areas (Western
Watersheds Project v. Zinke, No. 1:18-cv-00187-REB). In doing so, the
court set aside June and September 2018 oil and gas lease sales in Nevada,
Utah, and Wyoming. (pg. 4). Petitioners, Western Watersheds Project and Center
for Biological Diversity, argued that new lease issuing procedures used by the
U.S. Bureau of Land Management (BLM) did not allow for proper public input
regarding the leases’ effects on sage grouse populations. (pg. 2). Petitioners
requested the preliminary injunction until BLM could change its leasing
procedures though notice-and-comment rulemaking. (pg. 2). The court ultimately agreed with Petitioners
and reinstated the previous leasing procedures that were issued in 2010.
Pipelines: Pennsylvania
Public Utility Commission Motions to Amend and Approve Settlement Agreement
with Sunoco Pipeline
On February 27, 2020,
the Pennsylvania Public Utility Commission filed a motion to amend and approve a settlement with Sunoco
Pipeline, LLC following a 2017 leak of the Mariner East 1 Pipeline in
Morgantown, Pennsylvania. The Commission's motion amends the settlement that was previously approved by an
Administrative Law Judge in December 2019. The proposed amendments are
related to a Remaining Life Study that the parties agreed was necessary to
determine the pipeline’s remaining life related to age, coating, and soil
conditions. In the motion, the Commission clarified that while Sunoco would
choose three experts to complete the study, the ultimate decision on which
expert will be used falls with the Commission’s Bureau of Investigation and
Enforcement. The Commission also sought to add a provision requiring the
expert’s disclosure of any projects previously worked on involving Sunoco or
Sunoco’s parent company. The motion will
be approved as a Modified Settlement Agreement if no adverse comments are
received within 10 days of the motion.
Public Lands: Report
Claims $12.4 Billion in Federal Revenue Lost as a Result of Outdated Royalty
Rates
In February 2020,
Taxpayers for Common Sense issued a report claiming that the federal government had lost
$12.4 billion in revenue due to outdated royalty rates. The report states that the Mineral Leasing Act
set the royalty rate for oil and gas extraction on federal lands at 12.5 percent
in 1920. (pg. 2). The Bush
Administration increased royalty rates for offshore drilling to 18.75 percent,
but the rate for onshore drilling has remained the same. The study calculated
that if onshore royalty rates had been increased to 18.75 percent at the same
time as offshore rates, the federal government would have collected an
additional $12.4 billion in royalties.
From the National Oil & Gas Law Experts:
Ama Francis, Clinton Global
Initiative Convenes Climate Leaders for a Carbon Neutral Caribbean (Feb. 24, 2020)
AGENCY PRESS
RELEASES—STATE/FEDERAL
Pennsylvania
Department of Energy Press Releases:
No new releases Feb. 24-
Mar. 2, 2020.
U.S.
Department of Energy
Department of
Energy Announces $97 Million for Small Business Research and Development Grants (Feb. 24, 2020)
Secretary
Brouillette, Minister Naimski, and Minister Kurtyka Hold U.S.–Poland Strategic
Dialogue on Energy (Feb. 26, 2020)
U.S.
Environmental Protection Agency
What They Are
Saying: EPA Announces Proposed Decision to Regulate PFOA and PFOS in Drinking
Water (Feb. 21, 2020)
EPA Awards Over
$1.8 Million for Innovative, Market-Based Nutrient Reduction Projects in Great
Lakes Basin
(Feb. 24, 2020)
EPA Announces
More Than $200 Million for Infrastructure Projects to Protect Surface Water and
Drinking Water in New England (Feb. 25, 2020)
STATE
ACTIONS—EXECUTIVE/LEGISLATIVE
Pennsylvania
Executive Agencies—Actions and Notices:
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:
Federal Energy
Regulatory Commission
85 FR 10666, “Transcontinental Gas Pipe Line Company, LLC;
Notice of Intent to Prepare an Environmental Document for a Proposed Amendment
of the Northeast Supply Enhancement Project and Request for Comments on
Environmental Issues” Notice (Feb. 25, 2020)
85 FR 11064, “Mountain Valley Pipeline, LLC; Notice of
Availability of the Final Environmental Impact Statement for the Proposed
Southgate Project” Notice (Feb. 26, 2020)
85 FR 11066, “North Baja Pipeline, LLC; Notice of Schedule
for Environmental Review of the North Baja XPress Project” Notice (Feb.
26, 2020)
85 FR 11360, “Texas Eastern Transmission, LP; Notice of
Schedule for Environmental Review of the Middlesex Extension Project” Notice
(Feb. 27, 2020)
85 FR 11361, “Tennessee Gas Pipeline Company, LLC; Southern
Natural Gas Company, LLC; Notice of Application” Notice (Feb. 27, 2020)
85 FR 12280, “Texas Eastern Transmission, LP; Notice of
Intent to Prepare an Environmental Assessment for the Proposed Lily Expansion
Project and Request for Comments on Environmental Issues” Notice (Mar.
2, 2020)
Land Management Bureau
85 FR 10617, “Onshore Oil and Gas Operations - Annual Civil
Penalties Inflation Adjustments” Rule (Feb. 25, 2020)
House
Energy and Commerce Committee Actions:
No new actions Feb. 25-
Mar. 2, 2020
Senate
Energy and Natural Resources Committee Actions:
No new actions Feb.
25–Mar. 2, 2020.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Pitt Fossil Fuel Disinvestment Activists Begin Occupation of Cathedral,” Pittsburgh Post-Gazette
“Pitt Fossil Fuel Disinvestment Activists Begin Occupation of Cathedral,” Pittsburgh Post-Gazette
“California
Approves Natural Gas Limits on New Buildings in Nine Bay Area Cities,” San Francisco Chronicle
“Pa. House
Speaker Mike Turzai: Banning Fracking Would Destroy Pennsylvania’s Economy,” Philadelphia Inquirer
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