Showing posts with label mariner east 2 pipeline. Show all posts
Showing posts with label mariner east 2 pipeline. Show all posts

Monday, September 9, 2019

Shale Law Weekly Review - September 9, 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.

Municipal Regulation: Adams County, Colorado Approves Changes to Oil and Gas Regulations
On September 3, 2019, the Adams County Board of Commissioners voted to approve changes to the county’s oil and gas regulations.  The new regulations were approved following the implementation of Colorado’s Senate Bill 19-181, which expanded the power of local governments to implement oil and gas regulations that address impacts to public health and the environment.  The new regulations include safety requirements, operational standards, and information on obtaining permits for new oil and gas facilities.  Board Chair Steve O’Dorisio said in a statement, “[O]ur staff has been hard at work creating a set of regulations that is fair to the industry but also provides for the safety of our residents.”  According to the county’s news release, Adams County set out to “establish regulations that allow for reasonable development of oil and gas . . . while ensuring that facilities are sited in appropriate areas.” 

Pipelines: Pennsylvania’s Department of Environmental Protection Issues $319,000 in Penalties Against Mariner East 2 Pipeline
On August 29, 2019, the Pennsylvania Department of Environmental Protection (DEP) issued $319,000 in penalties against Sunoco Pipeline, LP for Mariner East 2 pipeline construction violations.  The first penalty was issued in 2017 for violations concerning “accelerated erosion and sedimentation” at several construction sites.  The second penalty was issued to Sunoco Pipeline, LP for violations of the Clean Streams Law and Dam Safety and Encroachment Act that occurred in 2018. More specifically, the violations stemmed from “unauthorized discharges of drilling fluids” into wetlands and tributaries in several counties.   The Mariner East pipeline project has been issued more than 80 violations and accrued $13 million in penalties.  The project is expected to expand the existing pipeline for transporting natural gas from Ohio to Delaware County, Pennsylvania. 

National Energy Policy: Institute for Energy Research Files Lawsuit Against USDA to Release Documents on the Renewable Fuel Standard Regulatory Process
On September 5, 2019, the Institute for Energy Research (IER) filed a Complaint against the U.S. Department of Agriculture (USDA) to compel the release of documents under the Freedom of Information Act (Institute for Energy Research v. USDA, No. 19-2654).  The Complaint alleges that USDA had 20 working days to respond to a request for records, but it had not responded after five months.  IER’s request letter states the documents sought are to obtain information regarding lobbyist efforts surrounding the “mandate of using food crops as transportation fuel.”  According to IER’s press release, the public has an interest in any efforts by Deputy Secretary of Agriculture Stephen Censky to influence the Renewable Fuel Standard (RFS) regulatory process.  Additionally, IER claims that any involvement in lobbying efforts would “materially benefit” Mr. Censky’s former employer, the American Soybean Association, “[g]iven that soybeans are the second largest source of biofuels used for compliance with RFS.”  

LNG Exports: FERC Formally Accepts Commonwealth LNG’s Permit Application
On September 3, 2019, Commonwealth Projects, LLC, announced that the Federal Energy Regulatory Commission accepted its filing application for a liquified natural gas (LNG) project permit.  The project consists of constructing one LNG plant with six liquefaction trains and facilities.  The trains are expected to have a total liquefaction capacity of 8.4 million metric tonnes per annum.  Further, the project will include a three-mile pipeline that will connect the LNG facility with existing pipelines to transport gas to the project.  The project is located on the U.S. Gulf Coast near Cameron, Louisiana.  Commonwealth LNG expects to begin operations of the new facility in 2024. 

From the National Oil & Gas Law Experts:
George Bibikos, At the Well Weekly, (August 30, 2019)

Charles Sartain, Cyberspace Saves an Out-of-State Oil Company, (September 5, 2019)

John McFarland, Unit-Line Allocation Wells, (August 30, 2019)

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

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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!

Monday, March 18, 2019

Shale Law Weekly Review - March 18, 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: FERC Approves Construction of Empire North Project
On March 7, 2019, the Federal Energy Regulatory Commission issued an order approving the construction of the proposed Empire North Project in New York and Pennsylvania. The project will involve the construction of two new compressor stations, one in each state, and is expected to increase the Empire Pipeline’s overall capacity by over 200,000 Dth/day of natural gas. The Project is expected to begin construction later this year and will be completed in September of 2020.

State Regulation: West Virginia Legislature Passes Natural Gas Utility Bill
On March 8, 2019, the West Virginia House of Representatives passed House Bill 2661, which seeks to incentivize utilities to provide natural gas to areas where dependable sources are not currently accessible. The bill would allow for gas utilities to petition the state Public Utility Commission for rate increases in areas where dependable, lower-priced sources of natural gas are not available. The bill would also prevent the abandonment of existing gas services unless present and future public convenience and necessity permits it.

Wildlife Habitat: Bureau of Land Management Announces Changes to Sage Grouse Protections
On March 15, 2019, the Bureau of Land Management announced that Records of Decisions were being issued to amend land-use restrictions related to sage grouse habitat in several Western states. The amended plans will continue to designate roughly 29 million acres of sagebrush steppe as priority habitat for the sage grouse.  The plans will also designate roughly 23 million acres as general habitat, which creates more flexible restrictions on land-use. These new plans will affect public land in Colorado, Idaho, Nevada and Northern California, Oregon, Utah, and Wyoming.

Pipelines: Delaware County District Attorney Announces Investigation of Mariner East Pipeline
On March 11, 2019, District Attorney Katayoun Copeland of Delaware County, Pennsylvania announced an investigation into allegations of criminal misconduct related to the construction of the Mariner East Pipeline. The Mariner East 2 Pipeline, the latest expansion of the pipeline, is expected to boost the system’s total capacity to roughly 345,000 barrels of natural gas per day. Due to the pipeline’s seventeen-county span across Pennsylvania, D.A. Copeland announced that the investigation will be conducted jointly with the Pennsylvania Attorney General’s Office.

International Development: Western Australia Temporarily Rescinds Greenhouse Gas Guidelines
On March 14, 2019, the Western Australia Environmental Protection Authority (EPA) announced that it would be withdrawing its newly-revised greenhouse gas guidelines following discussions with affected companies. EPA plans to engage in further discussions with industry members in order to ensure that the guidelines are able to be implemented practically and that companies will be able to anticipate the way in which the guidelines will be applied. The most significant concern of potentially-affected companies is the way in which offsets will be regulated under the new guidelines.

From the National Oil & Gas Law Experts:
Charles Sartain, Texas Supreme Court Clarifies Hyder, (March 12, 2019)

Pennsylvania Legislation:
HB 781: would allow counties the option to use impact fee funds for stormwater management (Referred to Environmental Resources and Energy - Mar. 11, 2019)

SR 33: would establish a commission to recommend safety, oversight, and coordination improvements for the transport of oil, gas, and other hazardous liquids (Referred to Consumer Protection and Professional Licensure - March 13, 2019)

HB 828:  would extend the term for well permits, allow for a single well permit to apply to multiple wells, and allow the final well location to be within 50 feet of the location specified on the permit (Referred to Environmental Resources and Energy - March 14, 2019)

HB 817: would have DEP establish a telephone hotline number for Pennsylvania residents to report suspected oil and gas violations (Referred to Environmental Resources and Energy - March 14, 2019)

HB 819:  would allow trained response teams to be in place for drilling and production operations (Referred to Labor and Industry - March 14, 2019)

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.

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 February 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!

Monday, April 2, 2018

Shale Law Weekly Review - April 2, 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.

Water Quality: Pennsylvania Supreme Court Rules Against Imposition of Additional Fines by DEP for Ongoing Pollution
On March 28, 2018, the Pennsylvania Supreme Court held that penalties for violations of the Clean Streams Law apply only to contamination that occurs from the original release of a pollutant and not for subsequent days when that pollutant remains in the waterway. (EQT Production Co. v. DEP, No. 6 MAP 2017). The court determined that it was “most reasonable to conclude the Legislature was focused on protecting the waters of the Commonwealth with reference to the places of initial entry.” The case revolves around fines issued by the Department of Environmental Protection (DEP) against EQT Production Company.  DEP issued a fine that included penalties for each day that the pollution remained in Pennsylvania waters. EQT argued that the Clean Streams Law only authorizes penalties for the initial waste violation.

Pipelines: DEP Halts Drilling Operations for Mariner East II at Two Sites After Spills
On March 26, and 30, 2018, the Pennsylvania Department of Environmental Protection (DEP) issued two notices of violation to Sunoco for drilling fluid spills associated with the Mariner East 2 Pipeline Project. Both incidents involved less than one gallon of drilling fluid that was released into wetlands qualifying as waters of the Commonwealth. The drilling fluids in this case constitute Industrial Waste and discharge; therefore, the spills violate the Clean Streams Law. The first spill occurred in Huntingdon County on March 23, 2018, and the second spill occurred in Perry County on March 29, 2018. Sunoco may not restart drilling operations for either site until DEP has given its approval.

Bankruptcy: Bankruptcy Court Approves Plan for Philadelphia Energy Solutions
On March 26, 2018, the U.S. Bankruptcy Court for the District of Delaware approved the bankruptcy plan for Philadelphia Energy Solutions (PES). According to The Inquirer, PES was forced to engage in bankruptcy proceedings due to the high cost of renewable energy credits. As the largest oil refining complex, PES operates two domestic refineries which process 335,000 barrels of crude oil per day. PES is owned by The Carlyle Group and is a subsidiary of Energy Transfer Partners, L.P.

Landowner Royalties: West Virginia No Longer Allows Post Production Deductions from Royalty Payments
On March 9, 2018, West Virginia Governor Jim Justice signed into law a new bill that will not allow for the issuance of a well permit unless the operator certifies that minimum royalty obligations have been satisfied.  Senate Bill 360 amends W. Va. Code §22-6-8, which generally prohibits the issuance of permits with flat well royalty leases unless the permit is accompanied by an affidavit certifying a specified minimum payment to the lessor. Originally, the law required that the lessor would be granted at least a one-eight interest of the total amount of the interest at the wellhead. Senate Bill 360 amends the law so that a new permit will be invalid unless the royalty is not less than one-eighth of the gross proceeds with no post-production cost deductions.

Pipelines: Virginia Approves Two Permits for Mountain Valley Pipeline
On March 26, 2018, the Virginia Department of Environmental Quality (DEQ) approved Erosion and Sediment Control and Stormwater Management Plans for Mountain Valley Pipeline, LLC (MVP). DEQ’s approval authorizes MVP to begin “land disturbing activities.” The Mountain Valley Pipeline will carry natural gas from the Marcellus and Utica shale plays to markets in the Mid and South Atlantic regions of the U.S. The pipeline is over 300 miles long and will provide up to two Bcf of gas per day. According to Argus, this new approval means MVP may now begin full construction in the state.  

Methane Emissions: Report Recommends Increased Collection of Methane Emissions Data
On March 27, 2018, the National Academies of Science, Engineering, and Medicine (NASEM) released a report that examines various approaches to measuring, monitoring, and developing methane emissions. Research for the report was conducted by the Committee on Anthropogenic Methane Emissions in the United States. The purpose of the report is to assist in the development of improved methane emissions inventories that are more accurate and verifiable.  The Committee examined emissions from cattle farms as well as petroleum and natural gas facilities. The report is entitled, Improving Characterization of Anthropogenic Methane Emissions in the United States, and can be found on the NASEM website.

International Development: Australian Territory Presents Final Report on Hydraulic Fracturing
On March 27, 2018, the Independent Scientific Inquiry into Hydraulic Fracturing on Onshore Unconventional Reservoirs in the Northern Territory (Inquiry) presented their final report to the Northern Territory Government. The Inquiry was established after the Northern Territory Government announced a moratorium on onshore hydraulic fracturing. The purpose of the report, Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, is to identify and examine “the environmental, social, cultural, and economic risks associated with hydraulic fracturing for onshore shale gas in the NT, and to make recommendations to mitigate those risks...” The report includes a list of recommendations for regulatory reforms and actions that could be taken to mitigate any negative effects of hydraulic fracturing.

Induced Seismicity: Southern Methodist University Publishes Research on Geohazards Associated with Human Activity
On March 16, 2018, researchers from the Southern Methodist University of Dallas published a report on the relationship between human activity and geohazards. The researchers examined West Texas’ Permian Basin using satellite radar imaging. They conclude that oil and gas production activities have a “negative impact on the ground surface and infrastructures, including possible induced seismicity.” The researchers suggest that proactive, detailed, and continuous monitoring of oil and gas operations is essential for human safety, preservation of property, and for the growth of the energy industry. The study is entitled Association Between Localized Geohazards in West Texas and Human Activities, Recognized by Sentinel-1A/B Satellite Radar Imagery.

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"Local groups allege lack of transparency from Shell Pipeline" - BC Times

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 - Regulations from 2008 to 2010
Check out this week’s Shale Law in the Spotlight: Rover Pipeline Project - An Overview of the Current Legal Developments.

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