December 23, 2024

Shale Law Weekly Review—Week of December 23, 2024

Public Health: Department of Energy Releases Three Action Plans for Transportation Emissions ⚡
On December 12, 2024, the United States Department of Energy (DOE) announced three action plans regarding transportation emissions. In 2023, the DOE, the Department of Transportation (DOT), the Environmental Protection Agency (EPA), and the Department of Housing and Urban Development (HUD) partnered to create the U.S. National Blueprint for Transportation Decarbonization. Stemming from this plan, the DOE, DOT, EPA, and HUD worked together to develop the three action plans – An Action Plan for Maritime Energy and Emissions Innovation, An Action Plan for Rail Energy and Emissions Innovation, and An Action Plan for Medium – and Heavy-Duty Vehicle Energy and Emissions Innovation. An Action Plan for Maritime Energy and Emissions Innovation focuses on creating “sustainable maritime grand challenge[s],” “transition[ing] to low-GHG fuels,” and lead certain international collaborations. An Action Plan for Rail Energy and Emissions Innovation aims to create a “U.S. Rail Partnership,” support grid resilience, and prioritize public health impacts. An Action Plan for Medium – and Heavy-Duty Vehicle Energy and Emissions Innovation key actions include implementing “The Global Memorandum of Understanding” and advancing cost parity by 2030.

Oil and Gas Leasing: Appeals Court Rejects Challenge to Abandonment Under the Ohio Dormant Mineral Act
On Monday, November 21, 2024, the Court of Appeals of Ohio, Seventh Appellate District, ruled that a property was properly abandoned under the Ohio Dormant Mineral Act (DMA), and as such the lease signed subsequently was valid. In 2015, Monroe County deemed that the property in question had been abandoned by the previous owners of the property, and the deed was subsequently awarded to the current owners. Immediately after the property was deeded, SWN production company began drilling. The abandonment was then challenged, claiming the original owners never abandoned the property. The appeals court upheld the district court’s judgment, which held that under the DMA, a mineral estate is properly abandoned if the surface owner exercise reasonable diligence and mails notice to an out of court address. As the current owners did both things, the property was properly abandoned, and the subsurface lease with SWN is legitimate.

Water Quality: Florida Court Hears Challenge to Exploratory Permits for Apalachicola Watershed
On December 9, 2024, a Florida administrative law judge began hearing arguments regarding a challenge brought against a draft permit approved by the Florida Department of Environmental Protection (FDEP). In late 2023, Louisiana-based company Clearwater Land & Minerals sought approval from FDEP to drill a 14,000 ft. deep directional exploratory well in Calhoun County, FL, and on April 26, 2024, FDEP gave notice of intent to issue the requested permit. Apalachicola Riverkeeper, a non-profit organization, then filed a challenge to the draft permit on June 9, 2024, citing the pollution and environmental harm that could come the targeted area’s location within floodplain of the Apalachicola River. Apalachicola Riverkeeper argues that FDEP’s approval of oil production in the area would prioritize the economic goals of the oil company over natural resource protection and the stability of local economies, particularly those who rely on the river for oyster farming. Clearwater Land & Minerals said during opening statements that there is a high probability that oil and gas could be produced at this site in commercial quantities with minimal environmental threat. FDEP’s draft permit does provide for an array of best management practices (BMPs) to be implemented at the site and would require drilling to commence within one year of approval. The Apalachicola River and watershed are designated a UNESCO Biosphere Reserve due to its unique biodiversity.

State Regulation: Ohio Approves Expanded Hydraulic Fracturing in State Park
On December 9, 2024, the Ohio Oil and Gas Land Management Commission voted to approve two requests for expanded hydraulic fracturing on state owned land. The land at issue is comprised of two parcels, containing 371 and 513 acres respectively, within Salt Fork State Park in Guernsey County, OH. This vote was previously delayed from October of this year with Ohio Department of Natural Resources citing the need for further review of public comments as the reason for the delay. Almost 600 public comments were previously submitted regarding these requests, with a significant majority of them criticizing the public health and environmental impacts of fracking, particularly in green spaces like the state park. The identities of the requesting parties will be released when permits are issued.

International Development: Australia, Norway Announce Clean Energy Transition Partnership Implementation Guidelines
On December 9, 2024, the Clean Energy Transition Partnership (CETP) announced that the governments of Australia and Norway have published implementation guidelines for their membership in the Clean Energy Transition Partnership (CETP). Both nations have confirmed their commitment to ending international support for unabated fossil fuels. The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has defined “unabated fossil fuels,” to “refer to fossil fuels produced and used without interventions that substantially reduce the amount of [greenhouse gases] emitted throughout the life cycle; for example, capturing 90% or more of CO2 from power plants, or 50-80% of fugitive methane emissions from energy supply.” The CETP was first announced on November 4, 2021, with thirty-signatory countries including the United States.

 

___________________________________________________

CENTER PROGRAMS & RESOURCES

Quarterly Dairy Legal Webinar – The Penn State Center for Agricultural and Shale Law 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 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.

Understanding the Basics of Pennsylvania’s Carbon Sequestration Law – 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 

Industry blasts US DOE analysis on expanded US LNG exports   (Oil and Gas Journal)

Novel EOR Process Could Save Shale from a Dry Future  (Hart Energy)

Energy Department says unrestricted natural gas exports would spike prices (The Hill)

Greenhouse gas emissions from federal lands trended mostly downward since 2009 peak (USGS)

Adnoc Signs 15-Year LNG Supply Deal With Germany’s EnBW (Rigzone)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Falls as Dollar Surges on Fed Outlook for Fewer Rate Cuts (December 19, 2024)

Bibikos, At the Well Weekly (December 18, 2024)

Sartain, Choice of Words Matters in an Override Assignment (December 18, 2024)

Sartain, Louisiana Operator Survives Forfeiture of Right to Recover Drilling Costs (December 20, 2024)

Turner, Seattle, King County & Nonprofits Challenge Washington’s Ballot Initiative Preempting Local Efforts to Phase Out Natural Gas (December 20, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE and EPA Announce $850 Million to Reduce Methane Pollution from the Oil and Gas Sector (December 20, 2024)

DOE Re-opens Funding Opportunity, Making $500 Million Available to Build Out a Safe and Reliable National Carbon Transport Network (December 20, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Ameren Missouri Ordered to Pay $61M to Mitigate Effects of Illegal Emissions at Rush Island Power Plant Near Festus (December 17, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register November 29- December 6, 2024)

Environmental Protection Agency

89 FR 103824 Notice: “Alternative Methods for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From Mitsubishi Motors Corporation” (December 19, 2024)

Federal Energy Regulatory Commission

89 FR 104142 Notice: “Pacific Gas & Electric Company; Notice of Application for a Variance Under Article 402 Accepted for Filing, Soliciting Comments, Motions To Intervene, and Protests” (December 20, 2024)

Energy Department

89 FR 104132 Notice: “2024 LNG Export Study: Energy, Economic, and Environmental Assessment of U.S. LNG Exports” (December 20, 2024)

Land Management Bureau

89 FR 101042 Notice Notice of Availability of the Record of Decision for the Final Supplemental Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska” (December 13, 2024)

Ocean Energy Management Bureau

89 FR 101044 Notice: “Notice of Availability of a Gulf of Mexico Regional Outer Continental Shelf Oil and Gas Draft Programmatic Environmental Impact Statement” (December 13, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.5508 Bill: “A bill to require the Secretary of the Interior to annually submit to Congress, and make publicly available on a website, a report on decommissioning offshore oil and gas wells, platforms, and pipelines.” (December 12, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 51 – December 21, 2024)

Pennsylvania Public Utility Commission

54 Pa.B. 8369 “Pennsylvania Public Utility Commission, Bureau of Investigation and Enforcement v. Columbia Gas of Pennsylvania, Inc.” (December 21, 2024)

 

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