July 14, 2024

Shale Law Weekly Review—Week of July 15, 2024

LNG Infrastructure: Western District of Louisiana Blocks the White House’s Pause on Issuing LNG Export Permits ⚡
On July 1, 2024, the Western District of Louisiana issued a judgment, ordering White House officials to resume approving LNG export applications for “liquefied natural gas to non-FTA countries . . . .” In the memorandum ruling, the court concluded that the Plaintiffs had standing to bring the action to court and that the Plaintiffs be granted a preliminary injunction. The preliminary injunction will be granted for “the LNG Export Ban [to] be stayed in its entirety, effective immediately.” The court determined that the Plaintiff States had standing because they are likely to show an “injury-in-fact.” As for preliminary injunctive relief, the court determined that the Department of Energy’s (DOE) pause on approving LNG permits was “completely without reason or logic,” granting the Plaintiff States’ motion.

Pipelines: Pennsylvania Independent Regulatory Review Commission Approves Updated Safety Standards for Intrastate Hazardous Liquid Transport
On June 20, 2024, the Pennsylvania Independent Regulatory Review Commission (IRRC) approved the Pennsylvania Public Utility Commission’s (PUC) Revised Final Form Rulemaking Order (RFFRO) to establish state specific public utility safety standards for the intrastate pipeline transport of hazardous liquids. The RFFRO amends the standards currently outlined in 52 Pa. Code §§ 59.131–59.143, with the goal of “deterring inadvertent returns, leaks, subsidence events, and water supply contamination events related to the construction, operation, and maintenance of HVL pipelines by hazardous liquid public utilities within Pennsylvania.” The updated safety standards include updates to accident reporting, required geological and environmental impact studies regarding construction, and additional training for emergency personnel. PUC Chairman DeFrank states that this revised RFFRO “builds upon” the PUC’s FFRO adopted on February 22, 2024 (see SLWR—Mar. 11, 2024, ‘Pennsylvania Public Utility Commission Publishes Updated Safety Standards for Intrastate HVL Transport’). The RFFRO will become effective 60-days after it is published in the PA Bulletin, which has not yet taken place.

State Regulation: Ohio Appeals Court Reverses Maximum Allowable Injection Pressure Determination
On June 25, 2024, the Court of Appeals of Ohio reversed a trial court judgment, ruling an underground injection control (UIC) well operator company was deprived of due process. Omni Energy Grp., LLC v. Vendel, 2024-Ohio-2439 (Ohio Ct. App.). Plaintiff Omni Energy Wells (Omni) operates a Class II UIC well, which was permitted to use up to 1120 psi of injection pressure. Omni filed suit, seeking approval to use a higher psi. After suit was filed, an expert hired by the Ohio Department of Natural Resources (ODNR) concluded that Omni’s UIC well operating at 1120 psi was too high, and was causing fractures, and suggested revoking the existing permit and issuing a new permit for a lower psi. ODNR did just that, and Omni filed suit, arguing against the new permit. The trial court granted ODNR’s motion for summary judgment, and Omni appealed. On appeal, the court found that the trial court had applied the wrong standard of review, as it did not apply O.R.C. 119.12, which sets forth a standard of appeal. Furthermore, the appeals court determined that Omni had had its due process violated, as requests by Omni to admit additional evidence were denied, along with a request for an evidentiary hearing on the  merits, when due process demands they were accepted. As such, the judgment of the trial court was reversed and remanded for further proceedings.

Surface Owner Rights: 6th Circuit Court Grants Stay on Injunction in Favor of Surface Land Owners in Horizontal Well Drilling Dispute
On June 26, 2024, a 6th Circuit Court granted a motion to stay the injunction prohibiting the drilling of horizontal well pads in a dispute between the landowner and mineral rights owner.  EOG Res., Inc. v. Lucky Land Mgmt., LLC. No. 24-3211, 2024 U.S. App. (6th Cir. June 26, 2024). Lucky Land Mgmt. (Lucky), who owns the surface rights of the disputed land, motioned for the stay against EOG, who owns the minerals rights, claiming the drilling of the wells would disrupt their use of the property for hunting. The court agree noted that Lucky’s claim had a strong argument for success upon the merits as the district court relied on non-binding precedent and agreed that Lucky would likely suffer irreparable injuring as the construction of the wells would scare off deer. While both parties claimed their position benefited the public interest, the court found no compelling public interest in either party’s claim. The court thus granted the stay in favor of Lucky, and further granted Lucky’s petition to waive the filing of bond pending appeal.

 

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CENTER PROGRAMS & RESOURCES

July 2024 Quarterly Dairy Legal Webinar: U.S. State Milk Pricing & Supports, Part 2 – Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter and includes an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.1 hour of substantive CLE credit available for Pennsylvania licensed attorneys at no charge, more information, and registration available here.

“HPAI in Poultry and Cattle: How Can We Miss You if You Won’t Go Away?” Brook Duer Presents with the National Agricultural Law Center – This webinar will lay out the foundational statutes, regulations, manuals and procedures that authorize USDA-APHIS authority, through the lens of these two HPAI outbreaks in divergent species, including a slate of sometimes sweeping powers to compel a range of disease control measures and tactics. The webinar will also trace the last 60 days’ progression of the HPAI outbreak in dairy cattle to illustrate how the invocation of disease control measures evolves and adapts to the changing conditions of a disease, host animal, known potentials and methods for transmission, and the potential economic implications. More information, and registration available here

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.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Alaska sues to challenge new NPR-A oil and gas leasing rules (Reuters

Pennsylvania energy costs are rising. But why? (Pittsburgh Post Gazette)

Peering Inside the Pandora’s Box of Oil and Gas Waste (Inside Climate News)

US shale deals pivot to lesser-known basins (Argus)

Biden outlines regulatory plans for the rest of his term (Politico Pro)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Holds Advance as Risk-On Mood Eclipses US StockpiOil Rises for Third Day on Improving Demand and Weaker Dollarle Build (July 12, 2024)

McFarland, Ammonite Oil & Gas v. Railroad Commission – Supreme Court opinion on MIPA (July 10, 2024)

Sartain, Federal Court Enjoins Ban on LNG Export Permitting (July 9, 2024)

Hug, Mallen, Johnson, Reiter, Chevron ‘Sleeps with the Fishes’: US Supreme Court Sinks Deference to Agency Interpretation of Statutes (July 8, 2024)

Chin, Slumping Freight Rates Telegraph Warning on Asian Crude Demand (July 9, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Announces Nearly $2 Billion to Support American Auto Workers, Convert Facilities for Electric Vehicles (July 11, 2024)

Biden-Harris Administration Announces $14 Million to Increase Domestic Battery Recycling (July 9, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA and Justice Department announce $241.5M settlement with Marathon Oil to reduce climate- and health-harming emissions in North Dakota (July 11, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register June 1, 2024 – June 7, 2024)

Environmental Protection Agency

89 FR 55941 Notice: “Deepwater Horizon Natural Resource Damage Assessment Florida Trustee Implementation Group Final Restoration Plan 3 and Environmental Assessment: Water Quality and Finding of No Significant Impact” (July 8, 2024)

89 FR 56666 Rule: “Air Plan Approval; Pennsylvania; Interim Final Determination To Stay and Defer Sanctions Related to Reasonably Available Control Technology Requirements for Keystone, Conemaugh, Homer City and Montour Generating Facilities for the 1997 and 2008 Ozone National Ambient Air Quality Standards” (June 20, 2024)

Federal Energy Regulatory Commission

89 FR 56868 Notice: “Transcontinental Gas Pipe Line Company, LLC; Notice of Filing” (July 11, 2024

Indian Affairs Bureau 

89 FR 57165 Notice: “Termination of Preparation of the Environmental Impact Statement for the Farmington Mancos-Gallup Resource Management Plan Amendment, New Mexico” (July 12, 2024)

Safety and Environmental Enforcement Bureau

89 FR 55982 Notice “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Pipelines and Pipeline Rights-of-Way” (July 8, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.J.Res.184 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 Water Heaters”.” (July 11, 2024)

H.R.8986 Bill: “To amend the Clean Air Act with respect to designating and redesignating nonattainment areas, and for other purposes.” (July 10, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 28 – July 13, 2024)

 

Written by:
Victoria Dutterer, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Jose Rojas, Research Assistant
Samuel Sweeten, Research Assistant
Jackie Schweichler, Staff Attorney