July 14, 2025

Shale Law Weekly Review—Week of July 14, 2025

National Energy Policy: Department of Energy Revises NEPA Regulations ⚡
On June 30, 2025, the Department of Energy (DOE) published an interim rule removing its current National Environmental Policy Act (NEPA) regulations and issuing new guidelines. NEPA requires federal agencies to prepare environmental impact statements before approving major projects. This rule would remove NEPA obligations for natural gas imports or exports “to countries with which the United States has a free trade agreement.” Further, NEPA will also only apply to the Federal Energy Regulatory Commission’s (FERC) final actions, not any proposed rules. This rule comes after the Supreme Court’s ruling in Seven County Infrastructure Coalition v. Eagle County, which limited the scope of NEPA review. For more information on Seven County Infrastructure Coalition v. Eagle County, see SLWR – June 23, 2025, “Environmental Impact Studies: Supreme Court Clarifies Scope of Environmental Review Under NEPA.”

National Energy Policy: Agency Plans Review of 2024 Effluent Rules Impacting Coal and Other Fuels
On June 30, 2025, the U.S. Environmental Protection Agency announced plans to revise the 2024 Effluent Limitations Guidelines for Steam Electric Power Generating Units. The agency stated its intent to evaluate compliance timelines and explore regulatory alternatives that may address concerns raised about the impact of the current rule. As part of this review, the EPA specified that coal remains one of the domestically-sourced resources used in steam electric facilities, which could be affected by zero-discharge requirements. The upcoming rulemaking process will include efforts to collect additional information on the cost and performance of zero-discharge technologies.

State Regulation: Florida Passes Bill Prohibiting Oil and Gas Drilling Near National Estuarine Research Reserves
On June 26, 2025, the Florida Governor signed into law House Bill 1143, otherwise known as the “kill the drill bill.” This bill prohibits drilling, exploring and production of oil and gas within 10 miles of a national estuarine research reserve (NERR) off the coast of Florida. Further, for projects one mile inland from the shoreline or within one mile of any freshwater lake, the Florida Department of Environmental Protection must weigh the “measures in place to protect the natural resources [of said body of water] with the potential harm to the natural resources.” The bill is effective as of July 1, 2025.

Surface Owner Rights: Texas Supreme Court Affirms Mineral Lessee’s Ownership of Produced Fluid
On June 27, 2025, the Texas Supreme Court ruled on a dispute regarding the ownership of produced fluid generated during oil and gas extraction. Cactus Water Services, LLC v. COG Operating, LLC, No. 23-0676. The case involved COG Operating, LLC (COG), a mineral leaseholder, and Cactus Water Services, LLC (Cactus), which held a lease from surface owners. At issue was whether the produced fluid constituted oil and gas waste, belonging to the mineral estate, or if it was surface water, owned by the surface estate once separated from hydrocarbons. Both the trial court and the court of appeals previously ruled in favor of COG, asserting the mineral lessee’s ownership. The Court affirmed this decision, concluding that produced fluid is an inherent and necessary byproduct of hydrocarbon production. Their reasoning emphasized the historical understanding and industry practices at the time of the original conveyances implicitly included the disposal responsibility, and thus ownership, with the mineral operator. The court further determined that recent innovations for beneficial reuse do not alter the established intent of the initial agreements.

Pipelines: Open Season Begins for Natural Gas Transport on Palo Duro Pipeline
On June 30, 2025, Producers Midstream II, LLC (Midstream) announced the launch of an open season to solicit transportation service bids for its Palo Duro Pipeline project. The Palo Duro Pipeline will repurpose and convert an existing 16-inch intrastate pipeline to interstate service, connecting natural gas supply from the Permian Basin to markets in the Mid-Continent region using existing infrastructure. According to Midstream, the project is designed to enhance access to downstream markets, including those with growing demand from industrial, petrochemical, power generation, and AI-driven power applications. The open season, which runs through July 14, 2025, will allow interested parties to secure firm transportation rights ahead of the pipeline’s anticipated in-service date in the first quarter of 2026.

 

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CENTER PROGRAMS & RESOURCES

July 2025 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 ADA Compliance for Agritourism Operations

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:

“Understanding the Basics of Americans with Disabilities Act (ADA) Compliance for Agritourism Operations”

Jackie Schweichler to Join PA Small Business Development Center in Agritourism Seminar

On August 13, 2025, at 1:00pm (ET), staff attorney Jackie Schweichler will join the Pennsylvania Small Business Development Center to present at this year’s Ag Progress Days. The event, “Fields of Opportunity: Starting Your Agritourism Journey,” will be held in the Red Barn Annex.

Solar Law Symposium Virtual Live Webinar

Penn State Extension and the Penn State Center for Energy Law and Policy will host their fifth annual Penn State Solar Law Symposium, co-sponsored by Penn State Center for Agricultural and Shale Law. Staff Attorney Brook Duer will co-present a session on the ethics of solar leasing as part of the program.

Follow us on Twitter @AgShaleLaw to see the latest with our #ShaleLaw HotLinks 

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Sartain, It’s Been Decided, In Texas the Mineral Lessee, Not the Surface Owner, Owns Produced Water (July 7, 2025)

Akin Gump, Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources (Trump EO Tracker) (July 7, 2025)

Tigre, Bönnemann, and Silverman-Roati, A Blueprint for Rights-Based Climate Action: The Inter-American Court of Human Rights’ Advisory Opinion on the Climate Emergency (July 8, 2025)

Challe-Campiz, Sabin Center Releases Its 2024-2025 Annual Report (July 9, 2025)

Riemer and Scheid, A Differentiated Path Forward: The Inter-American Court’s Advisory Opinion on Climate Change and Human Mobility Rights (July 10, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Department of Energy Releases Report on Evaluating U.S. Grid Reliability and Security (July 7, 2025)

Energy Department Expands Commitment to Collaboration with Norway on Water Power Research and Development (July 7, 2025)

U.S. and Israel Pledge to Work Together to Unleash AI Innovation with New Memorandum of Understanding (July 8, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

 ICYMI: Administrator Zeldin in Washington Examiner: Celebrate American Independence by Advancing Energy Dominance (July 8, 2025)

EPA Meets with Leaders of 30 Tribal Nations, Highlights Muscogee (Creek) Nation Brownfields Grant (July 9, 2025)

EPA Releases New Online Resources Giving Americans Total Transparency on the Issues of Geoengineering and Contrails (July 10, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register June 16 – 23, 2025)

Environmental Protection Agency

90 FR 29828 Proposed Rule: “Establishment of Public Docket and Listening Sessions on Implementation Challenges Associated With Clean Water Act Section 401” (July 7, 2025)

90 FR 29751 Rule: “Renewable Fuel Standard (RFS) Program: Partial Waiver of the 2024 Cellulosic Biofuel Volume Requirement” (July 7, 2025)

90 FR 29997 Rule: “National Emission Standards for Hazardous Air Pollutants for Coke Ovens: Pushing, Quenching, and Battery Stacks, and Coke Oven Batteries; Residual Risk and Technology Review, and Periodic Technology Review” (July 8, 2025)

90 FR 30216 Rule: “Significant New Use Rules on Certain Chemical Substances (23-2.5e); Withdrawal” (July 9, 2025)

Federal Energy Regulatory Commission

90 FR 30230 Notice: “Adopting Categorical Exclusions Under the National Environmental Policy Act; Notice Of Adoption Of Categorical Exclusions Under The National Environmental Policy Act” (July 9, 2025)

Energy Department

90 FR 29773 Rule: “Department of Energy Acquisition Regulation” (July 7, 2025)

90 FR 29676 Rule: “Revision of National Environmental Policy Act Implementing Procedures” (July 2, 2025)

U.S. Army Corps of Engineers

90 FR 29461 Rule: “Procedures for Implementing NEPA; Removal” (July 3, 2025)

90 FR 30058 Notice: “Agency Information Collection Extension” (July 8, 2025)

Other Agencies

90 FR 30545 Notice: “Notice of OFAC Sanctions Action” (July 9, 2025)

 

Written by:
Benjamin Aronovitch, Research Assistant
Caden Dean-Sauter, Research Assistant
Jackie Schweichler, Staff Attorney