January 15, 2024

Shale Law Weekly Review—Week of January 15, 2024

State Regulation: Ohio Governor Signs Legislation Limiting EV Regulations and Facilitating Funding for Natural Gas Projects ⚡
On December 28, 2023, the Governor of Ohio signed into law House Bill 201 (the “Bill”) which places limits on regulations of electric vehicles and provides natural gas companies with capabilities to fund future development projects. The Bill expressly prevents municipalities from enacting regulations based on a vehicle’s fuel source. Additionally, the Bill states that the EPA or any state agency is prevented from enacting the vehicle emissions standards recently enacted in California. For natural gas companies, the Bill states that “infrastructure development” projects can be funded pursuant to the Bill by charging customers $1.50 a month for a period of no longer than six years. The Bill notes “infrastructure development” projects as “upgrading [or] extending…transmission or distribution facilities” owned by that natural gas company. To be eligible for funding, the project must first be approved by the state’s public utilities commission. Funds received by natural gas companies may be used for “planning, development, and construction costs.”  More information on the Bill can be found on the Ohio Legislature’s website.

Climate Change: Wyoming Department of Environmental Quality Issues Permits for CO2 Injection Well for Carbon Storage
On December 14, 2023, Wyoming Department of Environmental Quality announced it issued the state’s first three Class VI permits for carbon dioxide (CO2) injection wells. These wells, developed by Frontier Carbon Solutions, are part of the Wyoming Regional Direct Air Capture Hub in Sweetwater County, aimed at removing at least 1 million tons of carbon annually from the atmosphere. This development follows Wyoming’s receipt of regulatory authority over underground injections wells from the EPA in 2020, making it one of only three states, alongside North Dakota and Louisiana, with this capability. 85 Fed. Reg. 64,018 (Oct. 9, 2020). The project, which has received a $12.5 million grant from the Department of Energy, is designed to explore the potential for geologic storage of CO2 in the United States.

GHG Emissions: EPA Authorizes Construction of Carbon Dioxide Storage Facilities in Louisiana
On Thursday, December 28, 2023, the Environmental Protection Agency (EPA) published a final rule authorizing the State of Louisiana the authority to issue permits for the construction of underground injections wells. Otherwise known as Class VI wells by the EPA’s underground injection well classifications, these facilities are “used for injection of carbon dioxide (CO2) into underground subsurface rock formations for long-term storage, or geologic sequestration.” In accordance with this final rule, the Louisiana Department of Natural Resources will now oversee the process of issuing underground injection control permits for all proposed Class VI wells in Louisiana. The final rule also notes that the EPA will retain the exclusive authority to permit the construction of all well classes on Indian lands in Louisiana and to oversee Louisiana’s permitting process for Class VI wells.

 

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CENTER PROGRAMS & RESOURCES

Understanding Agricultural Law – A free monthly Zoom webinar series for all agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. Recordings and materials from the series, more information, and registration available here.

On February 8–10, 2024, PASA Sustainable Agriculture will hold their 2024 Sustainable Agriculture Conference at the Lancaster County Convention Center in Lancaster, Pennsylvania. On Friday, February 9, 2024, from 4:00–5:00pm, Staff Attorney Brook Duer will present “Protecting Your Farm’s Food Business with Product Liability Insurance” with the Small Business Development Center as part of the conference.

On Tuesday, February 13, 2024, from 12 noon–1:00 ET, will conduct the latest installment in its Quarterly Dairy Legal Webinar series. Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter, as well as including an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

COP28 could spur wave of climate lawsuits (E&E News)

Report: Production starts at Russia’s Arctic LNG 2 despite US sanctions (Offshore Energy)

Natural Gas Producers’ Game Plan for LNG: Wait Out 2024 (Hart Energy)

DOE Announces $32.5 Million in Funding to Advance Transportation Electrification (DOE)

Cedar LNG signs Samsung, Black & Veatch to perform EPC work (Oil & Gas Journal)

Connect with us on Facebook.

Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.

Oil & Gas Law & Policy Resources:

Sartain, PSA Well Permit Dispute Makes its Way to the Texas Supreme Court (January 8, 2024)

Bloomberg, Oil Drops as Saudi Pricing Cuts Counter Middle East Supply Risks (January 8, 2024)

Bloomberg, Oil Holds Biggest Drop in a Month on Signs of Softening Market (January 9, 2024)

McFarland, Gill v. Hill – Another Case on Due Process Requirements in a Tax Foreclosure (January 10, 2024)

Energy Connects, TotalEnergies increases interest in offshore blocks in Namibia (January 10, 2024)

Bloomberg, Bond Traders Amp Up Dovish Fed Bets After PPI Data: Markets Wrap (January 12, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Announces Leading Heat Pump Manufacturers Successfully Develop Next-generation Prototypes to Withstand Subfreezing Weather (January 8, 2024)

DOE Announces Next Steps to Build Domestic Uranium Supply for Advanced Nuclear Reactors As Part of President Biden’s Investing in America Agenda (January 9, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Biden-Harris Administration Announces Proposed Rule to Reduce Wasteful Methane Emissions from the Oil and Gas Sector to Drive Innovation and Protect Communities (January 12, 2024)

Biden-Harris administration announces availability of $32M in grant funding to tackle air pollution at schools and deliver cleaner air for America’s children (January 11, 2024)

Biden-Harris Administration Announces at Least $9,875,000 in Awards for Clean School Buses Across Arkansas as Part of Investing in America Agenda (January 10, 2024)

United States and California Announce Diesel Engine Manufacturer Cummins Inc. Agrees to Pay a Record $1.675 Billion Civil Penalty in Vehicle Test Cheating Settlement (January 10, 2024)

Best Petroleum Corp. will Conduct Enhanced Monitoring to resolve violations of the Clean Air Act at gasoline storage facility in Guaynabo, Puerto Rico (January 8, 2024)

Biden-Harris Administration announces nearly $1B in awards for clean school buses across the nation as part of Investing in America Agenda (January 8, 2024)

Biden-Harris Administration Announces at Least $47.3 million in Awards for Clean School Buses Across Pennsylvania as Part of Investing in America Agenda (January 8, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register January 6– January 12, 2023)

Environmental Protection Agency

89 FR 1822: Rule: “Per- and Poly-Fluoroalkyl Chemical Substances Designated as Inactive on the TSCA Inventory; Significant New Use Rule” (January 11, 2024)

Federal Energy Regulatory Commission

Energy Department

89 FR 2220: Notice: “National Petroleum Council” (January 12, 2024)

89 FR 1025: Rule: “Inflation Adjustment of Civil Monetary Penalties” (January 9, 2024)

Natural Resources Conservation Office

89 FR 1062: Notice: “Mississippi Trustee Implementation Group Deepwater Horizon Oil Spill Final Restoration Plan 4 and Environmental Assessment: Restoration of Wetlands, Coastal, and Nearshore Habitats; Nutrient Reduction (Nonpoint Source); and Provide and Enhance Recreational Opportunities; and Finding of No Significant Impact” (January 9, 2024)

Susquehanna River Basin Commission

89 FR 1623: Notice: “Projects Approved for Consumptive Uses of Water” (January 10, 2024)

Other Agencies

89 FR 1877: Notice: “Certain Welded Carbon Steel Pipes and Tubes From India, Thailand, and the Republic of Turkey; Certain Circular Welded Non-Alloy Steel Pipe From Brazil, Mexico, the Republic of Korea, and Taiwan; and Certain Circular Welded Carbon Steel Pipes and Tubes From Taiwan: Continuation of Antidumping Duty Orders (India, Mexico, the Republic of Korea, Taiwan, Thailand, and the Republic of Turkey), Continuation of Countervailing Duty Order (the Republic of Turkey), and Revocation of Antidumping Duty Order (Brazil)” (January 11, 2024)

89 FR 1905: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (January 11, 2024)

89 FR 1532: Notice: “Tin Mill Products From the People’s Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part” (January 10, 2024)

89 FR 1550: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (January 10, 2024)

89 FR 1482: Proposed Rule, Comments Close 2/9/24: “Approval and Promulgation of Air Quality Implementation Plans; Massachusetts; Regional Haze State Implementation Plan for the Second Implementation Period” (January 10, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Issues Notice of Violation to Keystone Landfill for Malodor (January 8, 2024)

DEP Awarding $39.6 Million to Replace Aging Diesel Fleets with Zero-Emission Vehicle (January 10, 2024)

DEP Receives $3 Million From EPA to Develop Climate Action Plan, Proposes Grant Program to Reduce Emissions in Heavy Industry (January 12, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 2 – January 13, 2024)

Department of Environmental Protection

54 Pa.B. 154: Notices: “Applications, Actions and Special Notices”

Pennsylvania Legislature

HB 1476 “An Act providing for reporting requirements for qualifying crypto-asset mining operations and for an impact study; and imposing duties on the Department of Environmental Protection.” Referred to ENVIRONMENTAL RESOURCES AND ENERGY [Senate] (January 5, 2024)

Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Sergio Porras, Research Assistant
Jackie Schweichler, Staff Attorney