Showing posts with label gas production. Show all posts
Showing posts with label gas production. Show all posts

Monday, March 9, 2020

Shale Law Weekly Review - March 9, 2020

Written by:
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:
Charles Sartain, Texas Easement Not Modified By Email (Mar. 9, 2020)
Courtney Roane, It’s Not You, It’s Me: Employee Separations in a Down Oil Market (Mar. 3, 2020)
John McFarland, The Changing Dynamics of Mineral Sales (Mar. 4, 2020)
Tiffany Challe, New Guides to the Scientific Integrity Policies of Federal Agencies (Mar. 6, 2020)

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)
EPA Settles Diesel Emissions Cases Against Three Northwest Companies (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 12783 “Sheetz, Inc. v. Colonial Pipeline Company; Notice of Complaint” 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
“With Oil at $45 and Falling, Texas Sector on Edge,” Houston Chronicle
“Developer Nixes New York Pipeline, Raising Questions About the Future of Natural Gas,” Forbes
“Report: Pa. Natural Gas Production Grew in 2019 But at Lower Rater,” Trib Live
“Coronavirus Delivers Another Blow to Embattled Shale Drillers,” Wall Street Journal
“Ohio Ethane Cracker Decision Expected Within Months,” Rigzone
“Wall Street Is Falling Out of Love With a Once-Coveted Fossil Fuel,” Bloomberg
“Exxon Outlines Its Steps to Reduce Harmful Methane Emissions,” Associated Press
“Energy Elite Start Listening to Climate Firebrand in Houston,” Climatewire
“As Climate Fight Intensifies, U.S. States Seek to Block Local Natural Gas Bans,” Reuters
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Check out the February Agricultural Law Brief ! Each month we compile the most significant legal developments in agriculture. If you’d like to receive this update via email, check out our website and subscribe!
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Monday, June 19, 2017

Shale Law Weekly Review - June 19, 2017

Written by Torin Miller - Research Assistant

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

Oil and Gas Operations: Pennsylvania Commonwealth Court Rules That Well Under Oil Refinery Is Not ‘Abnormally Dangerous’
On June 12, 2017, the Pennsylvania Commonwealth Court ruled that a permit issued by the Pennsylvania Department of Environmental Protection (DEP) is valid under the law even where the permit would allow the drilling of a well underneath an oil refinery. The Warren, Pennsylvania, refinery objected to the well, citing concerns of large fires or explosions, as well as the potential for leakage from old oil wells on the site. The court held that “hydraulic fracturing is not an abnormally dangerous activity under Pennsylvania law,” and that the permit is thus valid and legal.


Production Reports: Ohio Shale Gas Production Rises While Oil Falls
On June 9, 2017, the Ohio Department of Natural Resources (ODNR) issued its first-quarter production report for 2017. In comparison to the first-quarter report from 2016, this quarter’s natural gas production is up 12.86% while oil production is down 28.82%. Of the 1,613 unconventional wells listed in the report, 1,560 were producing gas or oil this quarter with an average oil production of 2,503 barrels and an average natural gas production of 238,411 Mcf.


Economic Development: Report Cites $50 Billion Investment in Ohio’s Marcellus and Utica Shale Formations in Recent Years
A May 2017 report released by Cleveland State University found that an estimated $50.4 billion was invested in Ohio’s Marcellus and Utica upstream, midstream and downstream markets between 2011 and 2016. Upstream investments constituted $38.8 billion of total investments, with the largest portion of that being attributed to investments in undeveloped land and drilling. Chesapeake Exploration LLC had nearly three times as many wells drilled, being drilled, and producing in that time period than the nearest upstream company.


Pipelines: Public Hearing Focuses On Ohio Pipeline Safety Issues
On June 15, 2017, the Ohio Power Siting Board (OPSB) held a public hearing regarding a 13-mile Hamilton County natural gas pipeline proposed by Duke Energy, according to a media report. According to the report, more than a 100 citizens attended the hearing with the majority citing safety concerns from the construction of a pipeline in a highly-populated area. The OPSB ultimately will make the decision on whether Duke Energy may proceed with the $86-112 million project.


Methane Emissions: EPA Delays Methane Emission Standards By Two Years
On June 13, 2017, the United States Environmental Protection Agency (EPA) issued a press release proposing a two-year delay of the New Source Performance Standards set by the EPA in 2016. The proposal comes a week after the EPA issued a 90-day delay. Specifically, the two-year stay affects “fugitive emissions, pneumatic pump and professional engineer certification requirements in the rule while the agency reconsiders issues associated with these requirements.” The Bureau of Land Management (BLM) is also following suit in delaying the implementation of requirements, according to a media report.


Pipelines: Judge Says Dakota Access Pipeline Needs New Environmental Impact Assessment
On June 14, 2017, the United States District Court for the District of Columbia ruled that the United States Army Corps of Engineers “did not adequately consider the impacts of an oil spill on fishing rights, hunting rights, or environmental justice, or the degree to which the pipeline’s effects are likely to be highly controversial.” The court noted, “To remedy those violations, the Corps will have to reconsider those sections of its environmental analysis upon remand by the Court.” However, the court also noted that whether the pipeline must cease to operate presently is a separate question to be determined in the near future.  


Public Lands: BLM Generates $4.7 Million In Oil And Gas Leases
On June 14, 2017, the United States Bureau of Land Management (BLM) issued a press release announcing that it had leased a combined 87 parcels in three states totaling nearly 68,000 acres and over $4.7 million. Proceeds from the sale, which included parcels in Colorado, Oklahoma and Texas, will be distributed among the three states and the federal government. “These oil and gas lease sales go a long way toward fueling America’s economy and supporting good-paying energy sector jobs,” BLM Acting Director Michael D. Nedd said in the release.


Water Quality: Wyoming Officials To Appear In Pavillion Water Contamination Litigation
On June 14, 2017, the United States District Court for the District of Wyoming ruled that Jerimiah Rieman, former energy advisor to Wyoming Governor Matt Mead, could be deposed in a case “that alleges a natural gas company's operations contaminated the drinking water of a Wyoming family,” according to a media report. This litigation follows an extensive investigation into potential water contamination in the Pavillion area. In November 2011, the United States Environmental Protection Agency (EPA) published a draft report stating that “inorganic and organic constituents associated with hydraulic fracturing have contaminated ground water at and below the depth used for domestic water supply” and that “gas production activities have likely enhanced gas migration at and below depths used for domestic water supply and to domestic wells in the area of investigation.” However, the EPA never finalized their report. On June 20, 2013, the State of Wyoming announced it would continue the Pavillion investigation, and it subsequently found that no connection between Encana’s operations and the contamination existed. Mr. Rieman facilitated the transfer of the investigation from the EPA to the state of Wyoming.


Natural Gas Production: North Dakota Reports Record Production in April
The North Dakota Industrial Commission (NDIC) released its latest production report on June 13, 2017. The report shows that a record number of 13,717 wells were producing gas in April 2017. Of these wells, about 86% were producing from unconventional plays, and gas production reached an all-time high of 1,836,308 MCF/day.


Wildlife: Report Finds that Overlap Between Energy Development and Grouse Habitat Is Not Significant
On June 9, 2017, Backcountry Hunters and Anglers released a report analyzing the overlap between key habitat areas of sage-grouse and areas of existing and potential energy development throughout the western United States. The report concludes that there is only a 4% overlap between key habitat and “existing coal and oil and gas leases on federal lands.” Additionally, “[t]he majority of federal lands within the [key habitat] have zero to low assumed potential for oil and gas development based on existing data sources.” Further, the report concluded that “[t]he majority of federal lands and minerals identified as assumed medium or high development potential for oil and gas are located outside of the [key habitat].”


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