June 3, 2024
Shale Law Weekly Review—Week of June 03, 2024
LNG Infrastructure: FERC Approves Pre-Filing Environmental Review Process for Gulfstream LNG’s Louisiana Project ⚡
On May 16, 2024, the Federal Energy Regulatory Commission (FERC) approved Gulfstream LNG Development, LLC’s (Gulfstream) request for the use of FERC’s pre-filing environmental review process. The new Gulfstream LNG Terminal Project will be in Plaquemines Parish, Louisiana (docket number PF24-5). The planned construction includes: “a new liquefied natural gas (LNG) export facility with gas processing facilities; three LNG trains; one LNG storage tank; two marine loading births; and one on-site power generation plant.” Gulfstream states that the project will export 4 million tonnes of LNG per year. FERC has selected a third-party contractor, Perennial Environmental Services, LLC, to assist in preparing the required documentation under the National Environmental Policy Act (NEPA).
Oil and Gas Leasing: Western Energy Alliance Files Suit Against the U.S. Bureau of Land Management
On May 15, 2024, the Western Energy Alliance (WEA), along with the Independent Petroleum Association of New Mexico, New Mexico Oil & Gas Association, North Dakota Petroleum Council, Petroleum Association of Wyoming, and Utah Petroleum Association, filed suit against the United States Bureau of Land Management (BLM). Western Energy Alliance v. BLM, 2:24-cv-00100-KHR. WEA alleged three counts, asking the District Court for the District of Wyoming to overrule the BLM’s final rule titled “Fluid Mineral Leases and Leases Process” (the Leasing Rule). The Leasing Rule, which is to become effective on June 22, 2024, is intended to “enhance the BLM’s administration of oil and gas-related activities on America’s public lands” by changing requirements, as prescribed by the Inflation Reduction Act of 2022, such as adding fees for interest submissions and increasing rates and minimum bids. In their complaint, WEA asserted that the Leasing Rule is invalid because it is “procedurally deficient, arbitrary and capricious, and contrary to law.” In Count I, WEA alleges that the Leasing Rule is in contradiction with the Mineral Leasing Act, which was meant to encourage mining of different kinds of minerals, such as coal and oil, which WEA alleges the Leasing Act discourages. Count II asserts that the Leasing Rule is “arbitrary and capricious,” alleging that the BLM has not given proper reason for why the Leasing Rule was created and what issue it is supposed to address. Count III alleges that the BLM did not conduct a NEPA review, which is required by the Administrative Procedure Act. WEA requests that the court vacate the Leasing Rule, along with other relief the court deems necessary.
National Energy Policy: Appeals Court Denies Challenges to Biofuel Blending Targets
On May 14, the United States Court of Appeals for the D.C. Circuit denied two separate petitions requesting review of the Environmental Protections Agency’s (EPA) 2022 biofuel targets. Sinclair Wyo. Refin. Co. LLC v. EPA, Nos. 22-1210 (D.C. Cir. May 14, 2024). The court rejected the petitioner’s claims that the rule both set the volume for cellulosic biofuel too low, and the volumes in general were set too high. These claims were supported by arguments alleging that the EPA did not account for retroactive impacts, acted arbitrarily and capriciously, and violated the Endangered Species Act (ESA). The court rejected these arguments, stating the EPA calculated the volume appropriately and unambiguously. Furthermore, it concluded that the EPA reasonably acted to mitigate retroactive effects, as well as acted within its statutory power. The court rejected any claim under the ESA. As such, the petitions for review have been denied, and the 2022 biofuel blending targets upheld.
Air Quality: Finalized Methane Reporting Rule Ramps Up Monitoring Technology
On May 6, 2024, the Environmental Protection Agency (EPA) issued a final rule to their Greenhouse Gas Reporting Program (GHGRP) in order to “strengthen, expand, and update methane emissions reporting requirements.” The changes to Subpart W of the GHGRP include the assimilation of new methane measurement technologies. Some of these technologies include the use of satellites as a new way of measuring methane emissions. In addition, the EPA incorporated the use of empirical data in order to calculate emissions, a move that comes in response to public comments on the original rule proposal.
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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.
- June 28, 2024, 12:00 – 1:00 pm (ET). Understanding the Basics of the Clean Water Act & Agriculture. (Register)
Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks
China’s LNG Imports up 32% in April (Natural Gas World)
Top US Natural Gas Producer Chesapeake Energy Cuts Jobs (Natural Gas World)
New endangered listing for rare lizard could slow oil and gas drilling in New Mexico and West Texas (AP News)
Environmental Hearing Board Clears Away More Attempts By Olympus Energy To Block Shale Gas Permit Appeal By Protect PT In Westmoreland County; Olympus Fails To Provide Info On PFAS ‘Forever Chemical’ Use (PA Environment Digest)
US drillers add oil and gas rigs for first time in four weeks (Reuters)
Connect with us on Facebook.
Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.
Oil & Gas Law & Policy Resources:
McFarland, What Constitutes Production in “Paying Quantities”? (May 3, 2024)
Stoyanova, KlimaSeniorinnen and the Question(s) of Causation (May 7, 2024)
Bloomberg, World’s Most Important Oil Price Transformed by Adding US Crude (May 3, 2024)
Bloomberg, Thermon boosts capacity for electrification and decarbonisation solutions (May 7, 2024)
Lupin, Tigre, and Urzola, KlimaSeniorinnen and Gender (May 9, 2024)
FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE
U.S. DEPARTMENT OF ENERGY PRESS RELEASES
U.S. Department of Energy Announces Sale of Northeast Gasoline Supply Reserve as Americans Hit the Road for Summer Driving Season (May 21, 2024)
U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES
EPA awards over $3.2 million for cleanup and redevelopment projects in Northglenn and Lakewood, Colorado (May 20, 2024)
EPA Names Top Cities for ENERGY STAR Certified Buildings in 2023 (May 22, 2024)
Los Angeles Ranks First in the Nation for ENERGY STAR Certified Buildings (May 22, 2024)
FEDERAL EXECUTIVE AGENCIES (Federal Register May 18, 2024– May 23, 2024)
Federal Energy Regulatory Commission
89 FR 45652 Notice “Mississippi Hub, LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the MS Hub Capacity Expansion Project” (May 23, 2024)
89 FR 45654 Notice “Rover Pipeline LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the Rover-Bulger Delivery Meter Station Project” (May 23, 2024)
Energy Department
89 FR 44052: Rule: “Energy Conservation Program: Energy Conservation Standards for Air-Cooled Commercial Package Air Conditioners and Heat Pumps” (May 20, 2024)
89 FR 44464 Rule: “Energy Conservation Program: Energy Conservation Standards for Circulator Pumps” (May 20, 2024)
Safety and Environmental Enforcement Bureau
89 FR 42602 Rule “Renewable Energy Modernization Rule” (May 15, 2024)
Other Agencies
89 FR 43748: Rule: “Endangered and Threatened Wildlife and Plants; Endangered Species Status for the Dunes Sagebrush Lizard” (May 20, 2024)
50 CFR 217: Rule “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Sunrise Wind Offshore Wind Farm Project Offshore New York” (May 22, 2024)
U.S. HOUSE ENERGY AND COMMERCE COMMITTEE
H.R.8554 “To eliminate certain subsidies for fossil-fuel production..” Referred to the Committee on Ways and Means, and in addition to the Committees on Natural Resources, Transportation and Infrastructure, Financial Services, Science, Space, and Technology, Agriculture, Energy and Commerce, Foreign Affairs, and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (May 23, 2024)
H.R.1069 “To provide for the establishment of a Climate Justice Working Group to help guide the Nation’s just and equitable transition towards a clean, climate-resilient, zero-emission economy, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.. (May 23, 2024)
U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE
S.J.Res.58 “A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Energy relating to “Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces”” Held at the desk (May 22, 2024)
STATE ACTIONS—EXECUTIVE & LEGISLATIVE
PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES
Shapiro Administration Awards over $980,000 to Environmental Education Projects that Engage Youth and Adults (May 22, 2024)
PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 21 – May 25, 2024)
Department of Environmental Protection
Pennsylvania Public Utility Commission
54 Pa.B. 2911 “Petition for Emergency or Expedited Order Approving Temporary Modifications to the Universal Service and Energy Conservation Plan for 2023—2027” (May 25, 2024)
Pennsylvania Legislature
HB 1615 “An Act providing for minimum energy and water efficiency standards for certain products sold in this Commonwealth; imposing penalties; and making repeals.” Third consideration and final passage, [House] (May 7, 2024)
Written by:
Victoria Dutterer, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Jose Rojas, Research Assistant
Jackie Schweichler, Staff Attorney
