September 9, 2024

Shale Law Weekly Review—Week of September 9, 2024

Public Lands: DOI Withdraws 28 Million Acres of Alaska Public Lands from Development ⚡
On August 29, 2024, the U.S. Department of Interior (DOI) Land Management Bureau published a Public Land Order in the Federal Register reinstating protections for approximately 28 million acres of public lands across the state of Alaska. (89 FR 70204). These protections, called “withdrawals,” were established pursuant to Section 17(d)(1) of the Alaska Native Claims Settlement Act of 1971. The protections were revoked in January 2021 under the Trump Administration. BLM analyzed the possible effects of revoking the withdrawals and found that it could negatively impact wildlife, vegetation, and permafrost. The analysis also found that lifting the withdrawals would negatively impact cultural resources and cultural practices across Alaska. DOI stated in a press release that the decision to reinstate the protections was made after a “robust public process gathered input from Alaska Native Tribes and Native Corporations, rural and urban communities, and the public, including 19 community meetings.”

Oil and Gas Regulation: PA Governor Announces Abandoned Oil and Gas Well Plugging Apprenticeship
On August 26, 2024, Pennsylvania Governor Josh Shapiro and the United Mine Workers of America (UMWA) announced a Gas Well Capping Technician registered apprenticeship program to providing training on how to plug abandoned and orphaned oil and gas wells. The program will “be run out of the UMWA Career Centers, Inc’s Ruff Creek Training Center in Green County, Pennsylvania.” The program is open to anyone over the age of 16 with a high school diploma or GED. Per the job listing, those interested can apply via phone or email. For background on Pennsylvania’s well plugging grant program, see SLWR—Nov 14, 2022, “Well Plugging Grant Program Presented to PA Governor.”

Environmental Impact Study: District Court Vacates Biological Opinion on Gulf of Mexico Oil Drilling
On August 19, 2024, the United States District Court for the District of Maryland granted the Sierra Club’s motion for summary judgment vacating a biological opinion (BiOp) regarding oil drilling and the impacts on endangered and threatened species in the Gulf of Mexico. The Sierra Club, along with Center for Biological Diversity and others filed suit against National Marine Fisheries Services (NMFS) and National Oceanic and Atmospheric Administration (NOAA) in October of 2020, alleging the BiOp violates the Endangered Species Act (ESA). Four years later, the court reasoned that the BiOp severely undercalculated the harm to endangered animals. As such, the BiOp will be vacated effective December 20, 2024, and the NMFS should have a new BiOp ready near that date.

LNG Infrastructure: D.C. Appeals Court Remands and Vacates Permits Issued by the FERC to Texas LNG Terminals
On August 6, 2024, the U.S. District Court of Appeals for the D.C. Circuit issued an opinion on a petition to review reauthorization permits issued by the Federal Energy Regulatory Commission (FERC) to Texas LNG Brownsville, LLC and Rio Grande LNG, LLC. City of Port Isabel v. FERC No: 23-1174. Both permits authorized projects to construct pipelines from LNG terminals operated by both companies along the Brownsville Shipping Channel in Cameron County, Texas. Permits authorizing the projects were initially challenged in 2021, with this same court remanded, without vacating, both permits to the FERC for reconsideration. Here, the court remanded and vacated both reauthorization permits to the FERC, finding in reauthorizing the permits the FERC failed to comply with the National Environmental Policy Act (NEPA) and Natural Gas Act (NGA). The court pointed to the FERC’s decisions in declining to issue supplemental environmental impact statements, its consideration of a carbon capture and sequestration systems, and declining to consider air quality data from a nearby monitor.

Economic Development: City of Baltimore Files a Class Action Complaint Against Shale Producers Alleging Price Fixing
On August 24, 2024, the City of Baltimore filed a class action complaint in the U.S. District Court for the District of New Mexico alleging that shale producers, since 2017, conspired to restrict the production of crude oil to artificially inflate prices. Mayor and City Council of Baltimore v. Permian Resources Corp. f/k/a Centennial Resource Development, Inc. No: 1:24-cv-00842. The complaint lists Permian Resources, Chesapeake Energy, and several other shale producers as defendants. The complaint heavily cites an investigation by the Federal Trade Commission into a Pioneer Natural Resources Company executive whose communications revealed attempts to artificially decrease crude oil production. Plaintiffs pointed to this investigation, the choice by each defendant to produce smaller amounts of crude oil, and the high degree of communication between the defendants as evidence of antitrust law violations. Plaintiffs seek to form a class of similarly situated states or municipalities who suffered injury from the alleged conspiracy. The complaint was submitted to the multidistrict litigation panel currently hearing similar claims of antitrust violations in the shale industry. In Re: Shale Oil Antitrust Litigation No: 1:24-md-03119. Defendants have not yet responded to the complaint.

 

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CENTER PROGRAMS & RESOURCES

Starting and Improving Farms Conference – Penn State Extension will host the Starting and Improving Farms Conference in-person at the Toftrees Golf Resort in State College, Pennsylvania. On September 14, 2024 at 3:15 p.m. Center Staff Attorney Brook Duer will present “Legal and Tax Structures for Business and Land Ownership” as part of the conference.

National Agricultural Law Center’s webinar series. – Center Director Ross Pifer will present “Right to Repair and Agriculture” as part of the National Agricultural Law Center’s webinar series. More Infromation Here

2024 Pennsylvania Agricultural Law Symposium – The Center for Agricultural and Shale Law will host the 2024 Pennsylvania Agricultural Law Symposium in-person at Penn State Law, Lewis Katz Building in University Park, PA. This day-long symposium will offer 6 CLE credits for Pennsylvania-licensed attorneys.

Understanding the Basics of PA Food Establishments & Cottage Food Regulations – 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. More Information Here

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Debate Flares Over Texas’ Proposed Oil and Gas Waste Rule  (Inside Climate News

Oil Markets Have Been on a Rollercoaster Ride (Rigzone)

Biden administration approves natural gas exports after pause is halted (The Hill)

US LNG exports rebound in August on higher output from Freeport LNG (Natural Gas World)

Air monitoring study by Pennsylvania gas driller finds fracking is safe (Chesapeake Bay Journal)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil’s Meltdown Worsens on Concern Over Demand and OPEC+ Supply (September 4, 2024)

McFarland, Railroad Commission Proposed New Waste Rules (September 5, 2024)

Bloomberg, Oil Pauses Near 14-Month Low on Signs of Falling US Stockpiles (September 5, 2024)

Sartain, Louisiana Supreme Court Issues Major Post-Production Cost Opinion (September 3, 2024)

Bloomberg, Oil Set for Deep Weekly Loss Even as OPEC+ Delays Adding Barrels (September 6, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Invests $430 Million to Upgrade America’s Hydropower Infrastructure (September 5, 2024)

Biden-Harris Administration Announces $31 Million for Transformative Clean Energy Projects Led by Tribal and Local Governments (September 5, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Biden-Harris Administration announces over $1.5 million grant to Mashantucket Pequot Tribal Nation to cut climate pollution and accelerate clean energy transition (September 5, 2024)

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

Environmental Protection Agency

89 FR 71838 Rule: “Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems; Correction” (September 4, 2024)

Federal Energy Regulatory Commission

89 FR 72834 Notice: “National Fuel Gas Supply Corporation; Notice of Application and Establishing Intervention Deadline” (September 6, 2024)

Pipeline and Hazardous Materials Safety Administration

89 FR 72152 Notice: “Pipeline Safety: Request for Special Permit; Gulf South Pipeline Company, LLC” (September 4, 2024)

Ocean Energy Management Bureau

89 FR 71398 Notice: “Pacific Wind Lease Sale 2 for Commercial Leasing for Wind Power Development on the Outer Continental Shelf Offshore Oregon-Final Sale Notice” (September 3, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.9447 Bill: “To prohibit funding for the Montreal Protocol on Substances that Deplete the Ozone Layer and the United Nations Framework Convention on Climate Change until China is no longer defined as a developing country.” (September 3, 2024 – Introduced)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 36 – September 7, 2024)

Department of Environmental Protection

Pennsylvania Public Utility Commission

[54 Pa.B. 5706]  “Replacement of Older Plastic Pipe in Natural Gas Distribution Systems (September 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