November 20, 2024

Shale Law Weekly Review—Week of November 18, 2024

Environmental Impact Studies: Environmental Assessment Completed for Drilling in the Arctic Wildlife Refuge ⚡
On November 6, 2024, the Biden administration, through the Bureau of Land Management (BLM), released the final environmental analysis for proposed oil and gas drilling in the Arctic Wildlife Refuge, in northeast Alaska. This comes after the Trump Administration’s 2017 Tax Cuts and Jobs Act mandated two sales for the right to drill in the Arctic Refuge. The first sale was held in 2020, and the leases of which were subsequently blocked by the Biden Administration. This second sale, overseen by the Biden Administration, will be confined to the smallest amount of land legally permissible: 400,000 acres. However, before the sale period could begin, the BLM was required to conduct an environmental analysis, as mandated in the National Environmental Policy Act (NEPA). The four volume, 2,101-page document assesses the environmental impacts of oil and gas drilling in the refuge.

Pipelines: Transco Seeks FERC Approval for Southeast Supply Enhancement Project to Natural Gas Transportation Across the Southwest
On October 29, 2024, Transcontinental Gas Pipe Line Company, LLC (Transco) filed for a Certificate of Public Convenience and Necessity with the Federal Energy Regulatory Commission (FERC) seeking authorization to construct its Southeast Supply Enhancement Project (the Project). According to Transco, the Project would expand their existing pipeline structure, allowing for firm transport of 1,596,900 Dth/day across the southwest. Additionally, Transco seeks authorization to abandon several compression facilities in connection with the Project. The specified areas of pipeline expansion are in Pittsylvania County, VA and Rockingham, Guilford, Forsyth, and Davidson Counties, NC. Transco also plans to modify existing compression stations and mainline valves to facilitate the increased transport capacity. Transco claims expanded capacity in these areas would allow increased natural gas distribution to delivery points in Virginia, North Carolina, South Carolina, Georgia, and Alabama to meet projected local energy demands. Transco has asked FERC to respond to the application by February 2026, in order to meet energy demands by November 2027.

State Regulation: Texas Railroad Commission Seeks Emergency Funding to Respond to Well Blowouts
In late October, the Texas Railroad Commission (RRC) sent a letter to state legislators requesting an additional $100 million in emergency funding to address well blowouts within the state. The RRC had just filed its annual budget request for $226 million in August, but the RRC explained that the $226 million did not include enough money to devote to environmental protection following blowouts, particularly regarding groundwater impacts. The agency cited that it has previously devoted too much money to remediating emergency well situations, such as those actively leaking, so that there has not been enough money leftover for non-emergency, high priority wells. Since 2022, RRC has used $168 million of federal and state funds to plug 2,491 of the state’s estimated 9,000 total orphaned wells, but the agency says that’s not enough in light of the increased frequency of blowouts. The October request states that the additional money will be used to hire staff to investigate the cause of the blowouts, and to respond to increased labor and material costs associated with plugging wells.

Air Quality: EPA Announces a Grant of Over $59 Million to Hawaii’s Department of Transportation for Air Quality Projects at Ports in Hawaii
On October 29, 2024, the Environmental Protection Agency (EPA) announced that the Hawaii Department of Transportation (HDOT) would receive $59,232,500 under the EPA’s Clean Ports Program. The grant, which is funded through the Inflation Reduction Act (IRA), was given to HDOT to “purchase and deploy zero-emission technology at Honolulu Harbor.” The EPA stated that ports cause larger amounts of pollution, and the impact pollution has on communities needs to be addressed. Through the grant, the HDOT plans to buy a “hydrogen-fueled equipment” and “install a hydrogen fueling station at Honolulu Harbor.” The project delegates funding to increase jobs in the community as well as contribute to air quality efforts.

Pipelines: Voters in South Dakota Reject Referred Law 21 During 2024 General Election
On November 5, 2024, Referred Law 21 was rejected by South Dakota voters. Referred Law 21 was a ballot measure on South Dakota citizens’ ballots during the 2024 General Election that was composed of South Dakota Senate Bill 201. The bill, which was entitled “An Act to provide new statutory requirements for regulating linear transmission facilities, to allow counties to impose a surcharge on certain pipeline companies, and to establish a landowner bill of rights,” is composed of fifteen sections pertaining to pipeline regulations, costs, and construction, and transmission line regulations and construction. Though Senate Bill 201 was passed March of 2024, Referred Law 21 did not receive the votes necessary during the 2024 General Election.

Municipal Regulation: Cecil Township Amends Oil and Gas Zoning Ordinance
On November 4, 2024, the Cecil Township Board of Supervisors in Washington County, PA, adopted an ordinance amending zoning rules relating to oil and gas development. This ordinance sets the edge of well pads and oil/gas facilities a minimum of 2,500 feet from protected structures (homes and businesses), and 5,000 feet from any school or hospital. It allows the owners of protected structures to waive the requirement through writing; however, no school or hospital may waiver the requirement. The ordinance was also amended to include the terms “school” and “hospital” throughout the document, especially in the “limitations” section. The ordinance includes a requirement for an environmental impact analysis to “describe, identify and analyze all environmental aspects of the site and of neighboring properties that may be affected by the proposed  operations or the ultimate use proposed to be conducted on the site.” This ordinance is only effective in Cecil Township.

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CENTER PROGRAMS & RESOURCES

Understanding the Basics of Animal Disease Control & Quarantines – Penn State Center for Agricultural and Shale Law, alongside the Pennsylvania Department of Agriculture’s (PDA) Agricultural Business Development Center (ABDC), will present the next webinar in the Understanding Agricultural Law educational series:

“Legal and Tax Structures for Business and Land Ownership,” Brook Duer Presents at the Cultivating Business Conference with Penn State Extension. – Penn State Extension will host the “Cultivating Business Conference” in-person at the American Helicopter Museum in West Chester, Pennsylvania. As part of the conference, Center Staff Attorney Brook Duer will present “Legal and Tax Structures for Business and Land Ownership. More Infiormation Here

Understanding the Basics of Children, Minors & Farm Work – The Penn State Center for Agricultural and Shale Law, alongside the Pennsylvania Department of Agriculture’s (PDA) Agricultural Business Development Center (ABDC), will present the next webinar in the Understanding Agricultural Law educational series.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Gas Storage Capacity Needed, But Will Companies Rise to the Challenge?  (Hart Energy)

Analysts: NatGas Price Will Drive Next Appalachian Pipeline (Hart Energy)

Exxon chief presses Trump to stay in Paris climate agreement (The Hill)

Panama Canal chief warns proposed US tariffs may disrupt global LNG trade (Freight Waves)

OPEC Outlook: US Shale Oil Volumes to Hit 16.7 MMbbl/d by 2030 (Hart Energy)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bibikos, At the Well Weekly (November 14, 2024)

Sartain, Texas Business Court Bounces Oil and Gas Case (November 19, 2024)

Turner, Cities, Climate & Trump: An Early Research Agenda (November 13, 2024)

Bloomberg, Oil Trader Faces Lawsuit Over Company Hit by US-Iran Sanctions (November 18, 2024)

Bloomberg, US Stocks Erase More Than Half Post-Election Gains: Market Wrap (November 15, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Releases First-Ever Blueprint for a Clean and Competitive Industrial Sector (November 18, 2024)

U.S. Department of Energy Releases New Report on Pathways to Commercial Liftoff for Sustainable Aviation Fuel (November 13, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA New England issues a Draft OCS Air Permit for new offshore wind farm project (November 15, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register November 11 – 18, 2024)

Environmental Protection Agency

89 FR 91094 Rule: “Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions” (November 18, 2024)

Federal Energy Regulatory Commission

89 FR 89989 Notice: “Colorado Interstate Gas Company, L.L.C.; Notice of Availability of the Environmental Assessment for the Proposed Totem Enhanced Deliverability Project” (November 14, 2024)

89 FR 90686 Notice: “Transcontinental Gas Pipe Line Company, LLC; Notice of Application and Establishing Intervention Deadline” (November 18, 2024)

Energy Department

89 FR 89720 Rule: “Department of Energy Acquisition Regulation (DEAR)” (November 13, 2024)

Land Management Bureau

89 FR 90037 Notice: “Clarifying the Implementation of Certain BLM Oil and Gas Measurement Regulations” (November 14, 2024)

Natural Resources Revenue Office

89 FR 90734 Notice: “Agency Information Collection Activities: Indian Oil and Gas Valuation (November 18, 2024)

Pipeline and Hazardous Materials Safety Administration

89 FR 90827 Notice: “Pipeline Safety: Identification and Evaluation of Potential Hard Spots-In-Line Inspection Tools and Analysis” (November 18, 2024)

Safety and Environmental Enforcement Bureau

89 FR 90735 Notice: “Notice of Proposed Transfer of Pipelines” (November 18, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

Shapiro Administration Reduces DEP Permit Backlog by 75 Percent, Completely Eliminates Backlog for Oil and Gas Permits (November 19, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 46 – November 16, 2024)

Department of Environmental Protection

[54 Pa.B. 7533] “Extension of Erosion and Sediment Control General Permit (ESCGP-3) for Earth Disturbance Associated with Oil and Gas Exploration, Production, Processing or Treatment Operations or Transmission Facilities” (November 16, 2024)

 

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