Showing posts with label underground storage. Show all posts
Showing posts with label underground storage. Show all posts

Monday, October 23, 2017

Shale Law Weekly Review - October 23, 2017

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.

State Regulation: PA House Finance Committee Approves Bill on Severance Tax
On October 18, 2017, the House Finance Committee approved House Bill 1401, also known as Natural Gas Drilling Tax Investment. House Bill 1410 provides for a volumetric based severance tax on natural gas produced in Pennsylvania. Governor Wolf has issued a statement urging a vote and calling the severance tax a “fair and commonsense proposal that will address our structural budget deficit.” If passed, House Bill 1401 will be effective July 2017.

Local Regulation: Monroeville Enacts New Ordinance Disallowing Oil and Gas Except Within Industrial Zones
On October 10, 2017, the Municipality of Monroeville in Allegheny County, Pennsylvania, enacted a new ordinance that eliminates oil and gas drilling from all zoning districts within the municipality other than in industrial districts. The new ordinance amends Ordinance 1443 which had allowed oil and gas wells to be drilled as a conditional use in all zoning districts. According to the Pittsburgh Post-Gazette, the council voted unanimously to enact the new ordinance.
Local Regulation: Oil and Gas Organizations File Lawsuit Challenging Municipalities
On October 10, 2017, the Colorado Oil and Gas Association (COGA) and the American Petroleum Institute (API) filed a lawsuit challenging the City of Thorton’s oil and gas regulations. The regulations include application, setback, and mitigation requirements in addition to the permitting process. According to the Denver Post, COGA claims that the regulations contravene state rules.

Pipelines: FERC Issues Approval for Mountain Valley and Atlantic Coast Pipeline Projects
On October 13, 2017, the Federal Energy Regulatory Commission issued certificates of approval for the Atlantic Coast pipeline project and the Mountain Valley pipeline project. The Atlantic Coast pipeline starts in West Virginia, splitting in Virginia with one half ending in Virginia and the other ending in North Carolina. It will transport 1.5 million Dth/d natural gas. The Mountain Valley pipeline project will transport 2,00,000 Dth/d natural gas from West Virginia to Virginia.

Pipelines: Court Allows Pipeline Activists to Present a Necessity Defense at Trial
On October 11, 2017, the U.S. District Judge for the Ninth Judicial District Court for Louisiana granted the defendants’ motion to present a necessity defense at trial. The defendants are accused of turning off the emergency shut-off valves for two pipelines last year as a form of protest. According to CNBC, the defendants plan to argue that the use of Canadian tar sands crude presents an immediate threat of physical harm from climate change. The defendants will also need to show that there was no legal alternative to breaking the law.

Natural Gas Storage: PHMSA Reopens Comment Period For Rule on Underground Natural Gas Storage
On October 19, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA) reopened the comment period for the final rule, Pipeline Safety: Underground Natural Gas Storage Facilities. Comments on the final rule may now be received until November 20, 2017. The comment period was reopened in response to petitions by the American Gas Association, American Petroleum Institute, and the American Public Gas Association. The final rule establishes minimum safety standards for the underground storage of natural gas.

Local Regulation: Ohio Supreme Court Denies Lawsuit over Charter Amendment Prohibiting Fossil Fuel Development
On October 19, 2017, the Supreme Court of Ohio denied a motion by Bowling Green resident, David Espen, to compel the Wood County Board of Elections to remove a charter amendment from their ballot (David Espen v. Wood County Board of Elections, No. 2017-Ohio-8223). The charter amendment, Community Rights to a Healthy Environment and Livable Climate, would prohibit fossil fuel development within the municipality. Espen argues that the proposed charter amendment exceeds the municipality’s authority. The court held that Espen’s argument had no merit and allowed the charter amendment to remain on the ballot.

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See our Global Shale Law Compendium and this week’s article, Shale Governance in New England States. (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, & Vermont)
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Monday, May 22, 2017

Shale Law Weekly Review - May 22, 2017

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.


Natural Gas Storage: Underground Gas Storage Project Abandoned by Arlington Storage Company
On May 9, 2017, Arlington Storage Company (Arlingon) reported they will no longer be expanding their underground gas storage facility in New York. Arlington had filed an application for authorization to expand the Seneca Lake Storage Project in Schuyler County. The expansion, the Gallery 2 Expansion Project, would have increased working capacity from 1.45 Bcf to 2.00 Bcf.  Arlington reported that they have “not been successful in securing long-term contractual commitments from customers…”
Case Law: Texas Court Rules in Favor of Landowner in Contamination Case
On April 28, 2017, The Supreme Court of Texas affirmed a lower court ruling that held the Railroad Commission does not have exclusive jurisdiction over claims for environmental contamination (Forest Oil v. El Rucio Land & Cattle Co.). The case was brought by rancher James McAllen against Forest Oil Corporation who produces natural gas on McAllen’s ranch. McAllen sued Forest for property contamination when it was discovered oilfield tubing donated to McAllen was contaminated with naturally occurring radioactive material.


Pipelines: Court of Appeals Affirms Dismissal of Case Where Plaintiffs Did Not Qualify for Class Action Suit
On May 11, 2017, the United States Court of Appeals for the Eighth Circuit ruled affirmed the district court’s ruling dismissing a class action lawsuit against Exxon Mobil Corporation (Webb, Harper, Harber, et al. v. Exxon Mobil Co.). Exxon owns the Pegasus Pipeline which travels between Corsicana, Texas and Pakota, Illinois. A group of plaintiffs brought this suit arguing that the operation of the pipeline was unreasonable and unsafe. The lawsuit was dismissed because the plaintiffs did not qualify for a class action through “commonality, typicality, or adequacy under Rule 23(a), as the nature of the claims were more “nuanced” than the district court had initially considered.”
Pipelines: FERC Tells Rover Pipeline No Horizontal Drilling Until Requirements are Met
On May 10, 2017, the Federal Energy Regulatory Commission (FERC) sent a letter to Rover Pipeline LLC (Rover) forbidding horizontal drilling activities where drilling activity has not yet commenced. FERC is implementing these measures after a spill earlier this year of approximately 2 million gallons of drilling fluid into wetland areas.  According to FERC, the delay is meant to “ensure the protection of all environmental resources during construction of the project…” The Rover pipeline consists of over 500 miles of pipe and will transport 3.25 Bcf/day of natural gas from the Appalachian supply area to Michigan.


Federal Lands: Environmental Groups File Suit for Leases Granted in Ohio National Forest
On May 2, 2017, The Ohio Environmental Council (OEC), the Center for Biological Diversity, and the Sierra Club filed suit against the U.S. Forest Service and the Bureau of Land Management (BLM) (Center for Biological Diversity, et al. v. U.S. Forest Service, et al.).  The environmental groups allege that the BLM and U.S. Forest Service failed to comply with the National Environmental Policy Act when they authorized oil and gas leases in Ohio’s Wayne National Forest. According to a press release by the OEC, pipelines in the 40,000 acres of land to be leased will be a “major disruptive presence in the forest.”


ShaleLaw HotLinks:
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Check out this week’s Shale Law in the Spotlight:  Approved Applications for LNG Export Projects in the United States (Part 1 of 2)

Stay informed with our monthly Agricultural Law Brief located here.
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