Written by:
Brennan Weintraub -
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.
State Regulation:
Colorado Governor Signs New Oil and Gas Regulations into Law
On April 16, 2019,
Colorado Governor Jared Polis signed into law SB19-181,
Protect Public Welfare Oil and Gas Operations. The new law amends the purpose of the
state’s Oil and Gas Conservation Act by prioritizing public health, safety,
welfare, and the environment when regulating oil and gas development.
Notably, the bill provides local governments with greater authority to
regulate the siting of drilling operations, inspect facilities, and impose
fines for spills (p.1-2). In addition,
the bill requires drillers to continuously monitor their air pollution and
minimize their methane emissions (p.2-3).
Wastewater
Treatment/Disposal: Fifth Circuit Orders EPA to Create New Wastewater
Regulations
On April 12, 2019, the
U.S. Court of Appeals for the Fifth Circuit issued an opinion in a case brought by environmental groups challenging EPA
regulations governing wastewater from steam-electric power plants, which had
not been updated since 1982 (Southwestern Electric Power Company v.
Environmental Protection Agency, No. 15-60821) (p.1-2). In 2015, EPA issued
the final rule Effluent Limitation Guidelines and Standards for the Steam
Electric Power Generating Point Source Category which sets a best available
technology (BAT) standard for preventing pollution into waterways. The rule
allows these plants, in certain cases, to use best available technology from
1982 instead of the present day (p.2-3). Ultimately, the Fifth Circuit found
that this decision by EPA fell short of the standard of “reasoned
decisionmaking” and that the agency did not “stay within the bound of its
statutory authority.” The court, therefore, vacated and remanded the portions
of the rule at issue (p.53).
LNG Exports: FERC
Issues Final Environmental Impact Statement for Gulf LNG Project
On April 17, 2019, the
Federal Energy Regulatory Commission (FERC) announced that it had issued the final environmental impact statement for
the proposed Gulf LNG Liquefaction Project in Mississippi. The project will involve the construction of two liquefaction trains with a
total capacity of ten million tons of LNG per year. The project will use
5 miles of existing pipeline and will be connected to existing export
facilities on the Gulf Coast. FERC ultimately found that, while the project
would have some significant adverse environmental effects, mitigation measures
would be able to reduce them to non-significant levels.
LNG Exports: FERC
Issues Final Environmental Impact Statement for Jacksonville LNG Project
On April 12, 2019, the
Federal Energy Regulatory Commission announced that it had issued a final environmental impact statement for
the proposed Jacksonville LNG export facility in Florida. The project, once completed, will have a processing capacity of 1.5 million
gallons of liquefied natural gas per day and will ship to both domestic and
international markets. Construction is currently slated to begin in the second
half of 2019 and finish in 2021. FERC ultimately found that the project would
have some limited adverse environmental impacts, but that mitigation measures
would prevent them from becoming significant.
Landowner Royalties:
Court Strikes Down Repeal of Oil and Gas Valuation Rule
On April 12, 2019,
California and New Mexico Attorneys General issued a statement following a recent court ruling that struck
down the repeal of a rule regulating royalty payments for Federal and Indian
leases (State of California, et al. v. United States Dept. of the
Interior, Case No. C
17-5948). The rule, or Consolidated Federal Oil & Gas and Federal &
Indian Coal Valuation Reform (Valuation Rule) was first published in July 2016.
According to California Attorney General Becerra, stopping the repeal of
the rule will increase royalty payments for American landowners by $71 million
per year. The court held that by attempting to repeal the Valuation Rule,
the Office of Natural Resources Revenue (ONRR) violated the Administrative
Procedures Act. The court stated that ONRR
failed to explain inconsistencies and did not consider alternatives to
repealing the rule.
From the National Oil
& Gas Law Experts:
John McFarland, Texas Outfitters v. Nicholson and the Duty of the Holder
of the Executive Right, (April 18, 2019)
Pennsylvania
Legislation:
HB 509: would reform the permitting process for agencies to increase
transparency (Reported as committed - April 16, 2019)
“These candidates vow to leave fossil fuel reserves in
the ground, a 180ยบ turn from Trump” - Inside Climate
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