Shale Law Weekly Review - February 12, 2019

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.

Pipelines: Second Circuit Vacates New York Denial of Pipeline Permit

On February 5, 2019, the U.S. Court of Appeals for the Second Circuit issued an order vacating and remanding a decision by the New York State Department of Environmental Conservation (NYDES) denying a water quality certification for the proposed Northern Access pipeline project (National Fuel Gas Supply Corp. v. New York State Department of Environmental Conservation, No. 17-1164-cv). National Fuel Gas Supply Corp. seeks to build this natural gas pipeline in western Pennsylvania and upstate New York and, pursuant to §401 of the Clean Water Act, applied for water quality certifications from both states. Pennsylvania granted the application in February 2018, but New York sent the petitioners a denial letter in April 2017. The Second Circuit noted that the denial letter contained no citations on the record to justify its denial of the application and that it could not say for certain whether the decision was made in an arbitrary and capricious manner. The court remanded the decision back to NYDES to more clearly explain its rationale.

LNG Exports: FERC Issues Final EIS for Port Arthur LNG Export Project

On January 31, 2019, the Federal Energy Regulatory Commission (FERC) issued a final Environmental Impact Statement (EIS) for the proposed Port Arthur LNG export project in Texas and Louisiana.  In the EIS, FERC concluded that adverse impacts from the project will be reduced to “less-than-significant levels” once mitigation measures are implemented.  The Port Arthur project, if approved, will include the creation of an LNG export terminal in Jefferson County, Texas and the creation of a 170-mile natural gas pipeline from Louisiana to Texas. In addition, two natural gas liquefaction trains will be built, each with a yearly capacity of nearly seven million tons.

Pipelines: Federal Court Declines to Block Bayou Bridge Pipeline Construction

On February 7, 2019, the U.S. District Court for the Middle District of Louisiana denied a motion for a preliminary injunction seeking to halt the continued construction of the Bayou Bridge Pipeline (Atchafalaya Basinkeeper v. U.S. Army Corps of Engineers, 18-23-SDD-EWD).  The lawsuit was brought by Atchafalaya Basinkeeper and other environmental groups who allege that continued construction of the Bayou Bridge pipeline will cause irreparable harm to the Atchafalaya Basin.  The court pointed to a number of factors in its decision in denying the motion, including a period of almost a year between the plaintiffs learning of the potential harm and the filing of the motion and the near-completion of the project at issue. Once completed, the Bayou Bridge pipeline will carry crude oil roughly 160 miles in Louisiana from Lake Charles to St. James for distribution to refineries in the region.

National Energy Policy: Energy Groups File Amicus Briefs in NEPA Case

On February 1, 2019, several U.S. energy groups filed two amicus briefs supporting the Federal Energy Regulatory Commission (FERC) in a pending action before the U.S. Court of Appeals for the District of Columbia (Otsego 2000, Inc. v. FERC, No. 18-1188).  The lawsuit was brought by landowners and Otsego2000 on July 16, 2018.  The plaintiffs argue that FERC did not follow precedent by failing to evaluate greenhouse gas emissions from the New Market project.  Under the National Environmental Policy Act, FERC is required to consider “indirect effects” that are “reasonably foreseeable” results of the proposed project.  FERC argues that the kinds of emissions that the petitioners wish to be considered are not “reasonably foreseeable” under NEPA and should not be considered in approving proposed projects.  The Interstate Natural Gas Association of America filed one of the briefs in support of the FERC decision. The other amicus brief was filed by the American Fuel & Petrochemical Manufacturers, American Petroleum Institute, U.S. Chamber of Commerce, and the National Association of Manufacturers.  The New Market project is owned by Dominion Energy and is designed to transport 112,000 Dth/day of natural gas to Dominion’s existing system in New York.

Interstate Commissions: New Jersey Governor Announces Support for Full Ban on Hydraulic Fracturing Activities in the Delaware Basin

On January 30, 2019, Governor Phil Murphy of New Jersey sent a letter to the Executive Director of the Delaware River Basin Commission announcing his support for a full ban on all hydraulic fracturing-related activities in the Basin. Currently, no hydraulic fracturing is allowed within the Delaware River Basin. The Commission, however, does allow the importation of hydraulic fracturing wastewater into the Basin for treatment and eventual discharge. Under Governor Murphy’s proposal, these activities would also be banned.

From the National Oil & Gas Law Experts:

George Bibikos, At the Well Weekly, (February 8, 2019)

Charles Sartain, Insurer Liable for Macondo Blowout Defense Costs, Energy and the Law (February 5, 2019)

Pennsylvania Legislation:

HB 414: would require DEP to complete permitting approval/disapproval within 45 days for erosion and sediment control permits (Referred to House Environmental Resources and Energy - Feb. 6, 2019)

SB 261: would authorize municipalities to impose a fee on the pipelines in the county for funding to support emergency responders (Referred to Senate Environmental Resources and Energy - Feb. 7, 2019)

SB 264: would allow local governments to tax natural gas and hazardous liquid transmission pipelines (Referred to Senate Finance Committee - Feb. 7, 2019)

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

“Exxon plans $10 billion Texas natural gas export terminal” - The Hill

“Southwestern Pennsylvania leads the state when it comes to new shale gas wells drilled” - Pittsburgh Business Times

“How a ‘monster’ Texas oil field made the U.S. a star in the world market” - New York Times

“U.S. on track to become net energy exporter by 2020” - Shale Gas Reporter

“Early version of Ocasio-Cortez Green New Deal touts clean power” - Bloomberg

“Moniz: ‘A 100% renewable system is not realistic’” - Energywire

“Driller backs off demand to have homeowner thrown in jail” - Greenwire

“Atlantic Coast Pipeline delayed amid $2 billion- $3 billion price increase” - Fayetteville Observer

“4 charged in oil pipeline shutdown attempt” - MPR News

“Fracking firm Cuadrilla says earthquake rules hinder its work” - The Guardian

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page, iTunes, Spotify, or Stitcher.

Check the January 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 - December 12, 2018

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.

Pipelines: State Department to Prepare Supplemental Environmental Impact Statement for Keystone XL Pipeline

On December 3, 2018, the U.S. State Department issued a Notice of Intent to prepare a supplemental Environmental Impact Statement (EIS) for the proposed Keystone XL pipeline. TransCanada resubmitted its 2012 Presidential permit application for the Keystone XL in January 2017.  Shortly thereafter, the Under Secretary of State for Political Affairs issued the pipeline permit to TransCanada, and the Nebraska Public Service Commission approved the Mainline Alternative Route.  Following the Department of State’s (Department) issuance of the draft EIS for the Mainline Alternative route, the U.S. District Court for the District of Montana ordered Department to supplement its analysis.  The court found that Department had not taken a sufficiently “hard look” at the potential environmental impacts of the project (Indigenous Environmental Network v. United States Department of State, CV-17-29-GF-BMM). The pipeline, if completed, will carry crude oil from Canada to terminals in Oklahoma and Texas.

Air Quality: Ohio EPA Considers Expanding Air Pollution Requirements to Existing Unconventional Oil and Gas Facilities

On November 20, 2018, the Ohio Environmental Protection Agency issued a press release asking for comments on proposed changes to oil and gas rules in the state. Specifically, the agency is considering expanding air pollution emission standards.  The new rules would continue to cover all new unconventional oil and gas facilities as well as existing facilities.  According to the press release, the agency is looking for comments from stakeholders before they draft new language for the rules. The agency will be accepting comments through December 14, 2018.

Pipelines: Louisiana Court Orders Bayou Bridge to Pay Fees for Trespass but Allows Expropriation of Properties Along Pipeline Route

On December 6, 2018, the Louisiana 16th Judicial District Court held that Bayou Bridge Pipeline, LLC (Bayou Bridge) trespassed when it built its pipeline on private land in the Atchafalaya Basin (Bayou Bridge Pipeline, LLC v. 38 Acres, More or Less, Located in St. Martin Parish, No. 87011). The court also found that Bayou Bridge, an entity owned by Energy Transfer Partners, had the right to expropriate properties along the pipeline route. The court determined that the Bayou Bridge Pipeline has a public purpose and that expropriation is reasonably necessary to complete the project.  Bayou Bridge obtained “numerous rights of way” from the hundreds of owners who own a portion of the 38 acres at issue in this lawsuit.  The three landowners in this case had interests between 0.00994% and 0.05803%.  The court determined treble damages based on market value to be between $0.91 and $6.64.  The plaintiffs each were awarded a total of $150 in damages and compensation.  The pipeline, once complete, will carry crude oil 163 miles from Lake Charles to St. James, Louisiana, from where it will be distributed to refineries across the Gulf Coast.

Public Lands: BLM Announces Plans to Open Sage Grouse Habitat to Development

On December 6, 2018, the Bureau of Land Management (BLM) detailed its plans to open roughly nine million acres currently protected as sage grouse habitat to mining and drilling operations.  BLM published the proposed resource management plan amendments and final environmental impact statements regarding the Greater Sage-Grouse for Oregon, Colorado, Idaho, Utah, Wyoming, Nevada and Northeastern California.  According to a New York Times article, the proposed changes would limit the species’ protected area to roughly 1.8 million acres.   These changes follow a 2015 decision that placed restrictions on oil and gas drilling within nearly eleven million acres of sage grouse habitat.

From the National Oil & Gas Law Experts:

George Bibikos, At the Well Weekly, (December 10, 2018)

Charles Sartain, Local Taxation of Oil and Gas Activities Fails Again, Energy and the Law (December 11, 2018)  

John McFarland, Miller on Negotiating Oil and Gas Leases, Oil and Gas Lawyer Blog (December 10, 2018)

Dena Adler, Four Important Points About EPA's Revised New Source Performance Standards for Electric Generating Units, Climate Law Blog (December 7, 2018)

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

“Qatar is pulling out of OPEC to focus on gas” - CNN Business

“U.S. natural gas exports to Mexico hit new record” - Houston Chronicle

“Shell to set-sector leading emissions targets after investor pressure” - Reuters

“Construction begins on South Jersey pipeline tied up in court” - The Press of Atlantic City

“Report: Trump stance hurting oil sector, Texas economy” - Houston Chronicle

“Atlantic Sunrise doubles prices in Appalachia” - Argus Media

“Cheap oil is no longer a huge positive for the U.S. economy” - CNN Business

“Big Oil battles gender problem that may take decades to fix” - Bloomberg

“U.S. coal consumption drops to lowest level since 1979” - Associated Press

“U.S. M&A activity is red hot, but will it continue?” - Rigzone

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

This week we published a new Shale Law in the Spotlight article: PHMSA Amends Regulatory Requirements for Crude Oil Trains

Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page, iTunes, Spotify, or Stitcher.

Check the December 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.

Shale Law in the Spotlight: Bayou Bridge Pipeline Project – An Overview of the Current Legal Developments

Written by Chloe Marie – Research Fellow

Recently there has been a lot of attention on the Bayou Bridge pipeline extension project in southern Louisiana, specifically focusing on whether it will adversely impact the Atchafalaya Basin. Litigation challenging construction of the pipeline was successful in briefly halting construction, but a recent ruling, handed down on March 15, 2018, by a federal appeals court, has allowed construction to proceed. This article provides an overview of the legal developments relating to the Bayou Bridge pipeline extension project.

The existing Bayou Bridge pipeline currently transports crude oil from terminal facilities in Nederland, Texas, to terminal facilities and refineries in Lake Charles, Louisiana. The 163-mile extension project carried out by Bayou Bridge Pipeline, LLC, a subsidiary of Energy Transfer Partners, will connect the existing Clifton Ridge Marine terminal on the Calcasieu River in Lake Charles, Louisiana, to existing crude oil terminal facilities near St. James, Louisiana, and refineries located in the Baton Rouge area. Part of the extension project will enter coastal zone in the Gulf Coast of the United States.

This extension project also includes the installation of two pump stations in Jefferson Davis Parish and St. Martin Parish, and would have a maximum capacity of 480,000 barrels of crude oil per day. 

In April 2017, the Louisiana Department of Natural Resources granted a Coastal Use permit authorizing the construction of 16.5 miles of pipelines within the St. James Parish’s Coastal Zone, providing that such construction did not disrupt or destroy black bear habitat or the nesting areas for certain species of birds.

On October 23, 2017, the U.S. Army Corps of Engineers issued a Finding of No Significant Impact (FONSI) concluding that construction of the pipeline extension project would not create significant environmental impacts and thus did not require the preparation of an Environmental Impact Statement.

On December 12, 2017, the Louisiana Department of Environmental Quality issued a Water Quality Certification to Bayou Bridge Pipeline, LLC, and contended that “the Bayou Bridge Pipeline Project, as proposed, is not expected to cause or contribute to violation of the water quality standards as provided for in LAC 33:IX.Chapter 11.”

Two days later, the U.S. Army Corps of Engineers granted permits authorizing the construction and operation of the Bayou Bridge pipeline extension project across 8 federal projects and 14 federal easements in Calcasieu, Jefferson Davis, Acadia, Vermilion, Lafayette, St. Martin, Iberville and Assumption Parishes, Louisiana, pursuant to Section 10 of the Rivers & Harbors Act, Section 404 of the Clean Water Act, and Section 103 of the Marine Protection Research and Sanctuaries Act. 

The project construction was estimated to be completed in the second half of 2018; however, ongoing litigation has had an impact on the construction process. On January 11, 2018, various environmental groups filed a lawsuit (docket no. 3:18-CV-00023) against the U.S. Army Corps of Engineers to halt pipeline construction. In this lawsuit, filed in the U.S. District Court for the Middle District of Louisiana, environmental groups allege that construction of the pipeline extension will likely have significant environmental impacts on the human and natural environment of Louisiana, and they challenge the Corps’ permits allowing construction and operation of the pipeline.

As part of their arguments, the environmental groups state that the Atchafalaya Basin is “one of the nation’s ecological crown jewels and a critical component of the nation’s flood protection system” before pointing out that “with a capacity of 480,000 barrels per day, and in light of its location in rate and unique aquatic environments, even a small leak could have major ecological consequences.”

Shortly after filing the lawsuit, the environmental groups filed a motion on January 29, 2018 seeking a preliminary injunction to stop construction of the pipeline claiming that the Atchafalaya Basin would be irreparably harmed if construction of the project is undertaken or pursued. They argued that oil and gas pipeline development already impacted important portions of the Basins’ wetlands and waterways. The U.S. District Court granted the requested preliminary injunction on February 23, 2018, halting the construction of the extension pipeline project through the Atchafalaya Basin.

Bayou Bridge Pipeline, LLC filed an appeal to the U.S. Court of Appeals for the 5^th Circuit (docket no. 18-30257) challenging the Ruling and Order granting motion for preliminary injunction. On the same day, Bayou Bridge Pipeline, LLC, asked the U.S. District Court to stay the preliminary injunction pending appeal. The U.S. District Court denied this request to stay on March 8, 2018.

On March 15, 2018, the U.S. Court of Appeals for the 5^th Circuit granted Bridge Pipeline, LLC’s motion for stay of the preliminary injunction pending appeal stating that “rather than granting a preliminary injunction, the district court should have allowed the case to proceed on the merits and sought additional briefing from the Corps on the limited deficiencies noted in its opinion.” Thus, construction of the Bayou pipeline extension project can resume while the underlying litigation continues.

Stay tuned for further legal developments!

Shale Law Weekly Review - March 5, 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.

Induced Seismicity: Oklahoma Changes Drilling Protocol to Address Seismicity

On February 27, 2018, the Oklahoma Corporation Commission (OCC) issued a new protocol in order to address induced seismicity resulting from oil and gas development. OCC protocol now requires that all operators conducting hydraulic fracturing activities must use a seismic array to see real-time seismicity readings. The protocol decreases the earthquake magnitude (ML) levels where operators must take action from 2.5ML to 2.0ML. In addition, operators will be required to pause activities for 6 hours when seismicity reaches 2.5ML, instead of the previously required 3.0ML.

Pipelines: Virginia District Court Grants Atlantic Coast Pipeline Access to Land for Tree Felling

On February 28, 2018, the U.S. District Court for the Western District of Virginia granted the Atlantic Coast Pipeline, LLC’s (ACP) motions for summary judgment in several cases involving landowner disputes over easements. Defendants in the case are landowners of properties in Virginia where construction of the Atlantic Coast Pipeline is planned. APC filed motions for summary judgment after failing to obtain easements with these landowners. ACP argues that they need immediate possession of the parcels so that tree felling will be completed by mid-March in order to comply with the Migratory Bird Act. The court is allowing ACP immediate access to the properties but is requiring ACP to post a security bond so that landowners will be fully compensated subject to a final determination of value.

Pipelines: Court Orders Construction of Bayou Bridge Pipeline Expansion to Cease

On February 27, 2018, the U.S. District Court for the Middle District of Louisiana granted a motion for preliminary injunction, effectively halting construction of the Bayou Bridge Pipeline project (Atchafalaya Basinkeeper, et al., v. U.S. Army Corps of Engineers, 18-23-SDD-EWD). The project is a 163 mile expansion of existing pipeline that will run from Lake Charles, Louisiana, to St. James, Louisiana. The project will consist of a 24-inch pipe and transport crude oil. Opponents to the project argue that construction of the pipeline will damage century old trees and valuable cypress forest swamp as well as the overall ecology of the Basin. The court granted the order to prevent “further irreparable harm until this matter can be tried on the merits.”

Frac Sand: USGS Announces Study Suggesting That River Sediment May Be Used as Frac Sand

On February 27, 2018, the U.S. Geological Survey (USGS) issued a press release on a recent study suggesting that sediment from the Missouri River Basin could be used a proppant in hydraulic fracturing. The researchers removed samples of sediment from the Missouri River and analyzed them using protocols from the American Petroleum Institute. They found that sand coming from the Nebraska Sand Hills and flowing into the Missouri River could potentially be used as suitable proppant or “frac sand.” The researchers also suggest that use of river sediment for hydraulic fracturing could help mitigate the cost of removing excess sediment from river basins. The study is entitled, Suitability of River Delta Sediment as Proppant, Missouri and Nibrara Rivers, Nebraska and South Dakota.

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

"Shell: LNG outlook points to potential global supply shortage" - OGJ online

"Murrysville council places additional conditions on Huntley & Huntley pipeline construction" - TribLive

"This Just In: LNGFrom Cove Point Is Soon Heading Out" - Oil and Gas Investor

"Rover Pipeline donating $270,000 to emergency responders in 4 states" - MLive

"Interaction between wells can boost production" - MRT

"IEA: US To Overtake Russia As Top Oil Producer By 2019 At Latest" - Rigzone

"OPEC to meet with U.S. shale firms in Houston on Monday - sources" -  Reuters

"Eclipse closes $92.2M deal for Utica shale acreage" -Shale Gas Reporter

"US Congressional committees request FERC for Rover gas line briefing" - OGJonline

"NEXUS pipeline expected to generate millions in tax revenue" -Shale Gas Reporter

"Chevron board member questions oil industry's future" - EENews

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

See our Global Shale Law Compendium and this week’s article, Shale Governance in Michigan

Check out this week’s Shale Law in the Spotlight: Overview of BLM Oil and Gas Leasing Program Reform

Stay informed with our monthly Agricultural Law Brief located here.

Shale Law Weekly Review - January 29, 2018

Written by:
Jacqueline Schweichler - Education Programs Coordinator

Errin McCaulley - Research Assistant

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

Federal Lands: California Sues BLM for Repeal of Hydraulic Fracturing Rule

On January 24, 2018, California filed a lawsuit against the Bureau of Land Management (BLM) over BLM’s repeal of its 2015 rule regarding hydraulic fracturing operations on federal lands. The 2015 rule, among other things, established new requirements concerning wellbore integrity, water quality, and public disclosure of chemicals used in the hydraulic fracturing process. On March 28, 2017, President Trump issued Executive Order 13,783 (82 Fed. Reg. 16,093) ordering the Secretary of the Department of the Interior to review the 2015 rule. Citing high compliance costs, BLM concluded the 2015 rule was unjustified and rescinded the rule on December 29, 2017. In its complaint, California argues BLM’s repeal of the 2015 rule violates BLM statutory mandates, ignores environmental considerations relating to hydraulic fracturing, and violates several federal statutes, including the Administrative Procedure Act.

Pipelines: Louisiana Court Rules that Record Laws Do Not Apply to Bayou Bridge Pipeline

On January 25, 2018, the U.S. District Court for the Middle District of Louisiana refused to compel Bayou Bridge Pipeline LLC to turn over  pipeline project records because they are a private, for-profit company, according to Pipeline & Gas Journal. According to the article, the judge states there are no public funds at issue and, therefore, public record laws don’t apply here. The article also states that the judge will allow fifteen days for the plaintiffs to amend their complaint. The lawsuit was brought by several environmental groups that are concerned that the Bayou Bridge pipeline will negatively affect the health of the forested swamps within the Atchafalaya Basin. In their complaint, the environmental groups argue that the permits and authorizations issued by the Army Corps of Engineers are invalid.

Water Quality: Wyoming Landowners Reach Settlement With Encana Over Groundwater Contamination Lawsuit

On January 24, 2018, a Wyoming family reached a settlement with Encana Corporation in a case regarding alleged well water contamination, according to Star Tribune. The case was filed in 2014 by Jeff and Rhonda Locker who allege that Encana negligently drilled oil and gas wells in the vicinity of the Locker’s home, causing their well water to become contaminated (Locker et al v. Encana Oil & Gas Inc, 1:14-CV-00131). The Lockers obtained water samples from their well when they purchased their family farm in 1988 and later in 1992. The second water sample showed that the total dissolved solids, sulfate concentrations, and sodium concentrations had increased almost ten-fold. Encana operates natural gas wells in the oil and gas reservoir under the Locker’s land, known as the Pavillion Field. According to the Star Tribune article, details of the settlement have not yet been released.

Air Quality: EPA Issues New Guidance Memorandum Changing Hazardous Air Pollutant Standards

On January 25, 2018, the U.S. Environmental Protection Agency (EPA) announced that the reclassification of major sources of hazardous air pollutants in a new guidance memorandum. The EPA is withdrawing the “once in, always in” policy under section 112 of the Clean Air Act which required major sources to remain subject to the control standards even if they reduced their emissions below the defined standards. Under the new guidance memorandum, “sources of hazardous air pollutants previously classified as ‘major sources’ may be reclassified as ‘area’ sources when the facility limits its potential to emit below major source thresholds.” Major sources are defined as sources that emit at least 10 tons per year of hazardous air pollutants.

Production and Operation: EIA Releases Reports on Natural Gas Consumption and Costs for 2018 and 2019

On January 25, 2018, the U.S. Energy Information Administration (EIA) announced that 2018 and 2019 natural gas consumption in the U.S. is expected to increase while natural gas and crude oil prices remain constant.  For 2018, residential and commercial natural gas consumption is expected to increase by 1.3 Bcf/d and consumption will be similar in 2019. In addition, EIA expects that the increase in dry natural gas production will exceed domestic consumption of natural gas during this time period. Prices for U.S. gasoline at regular retail are forecasted to average $2.57/gal in 2018 and $2.58/gal in 2019. Crude oil prices are expected to average $60 per barrel in 2018 and $61/barrel in 2019.

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"House GOP looks to give FERC final say on natural gas exports" - Washington Examiner

"Exxon Shouldn’t Be Surprised by Climate Change Investigations, States Say" - Inside Climate

"Exclusive: Philadelphia Energy Solutions to file for bankruptcy - memo'" - Reuters

"Study: Conventional drilling waste responsible for radioactivity spike in rivers" - State Impact

"Why the U.S. Is Buying Natural Gas From Russia"  - Bloomberg

"AG Shapiro: Drilling firm 'won't force our hand' on gas royalties" - Post Gazette

"Technology to Help Make Pipelines Safer in the Future" - PSU Extension

"Bigger wells, but more water" - Express News

"Big Apple Vs. Big Oil: Litigator Says Lawsuit Shouldn’t Be Taken Lightly" - Hart Energy

“Superpads” taking over Marcellus Shale" - Shale Gas Reporter

"It’s official: China is now world’s No. 2 LNG importer" - LNG World News

"Radium again found in Allegheny River and tributaries" - Post-Gazette

"FERC to review pipeline certification policies” - Shale Gas Reporter

"Ninth U.S. city sues big oil firms over climate change"  - Reuters

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

See our Global Shale Law Compendium and this week’s article, Shale Law Governance in Pennsylvania - Fiscal Code Legislation for 2009 to 2017.

Check out this week’s Shale Law in the Spotlight: Oil and Natural Gas Severance Taxes in the United States (Indiana, Kentucky, Alabama, and Mississippi)

Stay informed with our monthly Agricultural Law Brief located here.