August 17, 2021

Shale Law Weekly Review – Week of August 16, 2021

National Energy Policy: The U.S. Department of Energy Provided Funding for Carbon-Neutral Solution Projects
Recently, the U.S. Department of Energy (DOE) announced funding of $45 million for the integration of renewable energy sources into the grid as support for the decarbonization of the energy sector by 2035. Of this amount, $25 million is awarded to the creation of a consortium aimed to develop grid-forming inverters, which are described as “an emerging technology that allows solar and other inverter-based energy sources to restart the grid without a spinning turbine, typically an oil or coal-fired power plant.” In addition, the U.S. DOE provided $82.6 million in financial assistance to 44 innovative projects focusing on carbon neutrality.

Wildlife Habitat: BLM issued Notice to Reconsider a 2015 Mineral Withdrawal Proposal for 10 million acres of Federal Lands to Protect the Greater Sage-Grouse
On August 13, 2021, the U.S. Bureau of Land Management (BLM) published in the Federal Register a notice (86 FR 44742) to reconsider a proposal (80 FR 57635) issued in September 2015 by the Trump administration to withdraw approximately 10 million acres of federal lands – identified as “sagebrush focal areas” – from mining claims, and later cancelled in October 2017 (82 FR 47248). This notice follows a Feb. 11, 2021, court order issued by the U.S. District Court for the District of Idaho, directing BLM to address whether the withdrawal is needed for sage grouse conservation. Western Watersheds Project et al. v. Schneider, et al. USDC Idaho, No.1:16-cv-83.

National Energy Policy: Federal Court Orders EPA to Take Final Action to Update Portions of the National Oil and Hazardous Substances Pollution Contingency Plan
In an opinion issued on August 9, 2021, the U.S District Court for the Northern District of California directed the U.S. Environmental Protection Agency (EPA) to complete action on amendments to Subpart J of the National Oil and Hazardous Substances Pollution Contingency Plan (NCP). Subpart J of the NCP provides requirements for the use of dispersing agents to alleviate oil discharges into waters of the United States. Earth Island Institute et al. v. Wheeler et al., USDC N.D. Cal., No. 3:20-cv-670. In January 2015, EPA issued a proposed rule (80 FR 3380) revising portions of Subpart J of the NCP, including (1) monitoring requirements for dispersant use in atypical situations, (2) the authorization of chemical agent use in response to oil discharges, and (3) listing provisions for chemical agent products on the NCP Product Schedule. A group of individuals and environmental groups brought legal action against EPA in January 2020, seeking a court declaration that EPA failed to update and revise the NCP since 1994 as required by the Clean Water Act (CWA) and that EPA unduly delayed the issuance of a final rule. On July 6, 2021, EPA issued a pre-publication notice for the Federal Register of a final rule only addressing the first item of the 2015 proposed rule. Subsequently, the court ruled that EPA violated its nondiscretionary duty to finalize the rulemaking process and “unreasonably” delayed it. In addition, the court ordered EPA to take final action on the last two items of the 2015 proposed rule by May 31, 2023.

Shale Law/Policy Resources of Interest:

Charles Sartain, Louisiana Coastal Zone Litigation Likely to Remain in Federal Court (August 11, 2021).

Romany M. Webb, Carbon Storage in the Bipartisan Infrastructure Bill (August 10, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

DEP Collects $140,000 from ETC Northeast Field Services, LLC for Violations in Beaver County (August 10, 2021).

U.S. Department of Energy

DOE Announces Nearly $83 Million to Increase Building Energy Efficiency and Cut Consumers’ Energy Bills (August 13, 2021).

DOE Awards $45 Million to Advance Solar Manufacturing and Grid Technologies (August 11, 2021).

U.S. Environmental Protection Agency

EPA Methane Challenge Partners Lead in Efficiency and Emission Reductions (August 13, 2021).

Work to start in September at Peoples Gas Crawford Station in Chicago (August 11, 2021).

Justice Department and EPA reach $1 million settlement with Noble Energy and Noble Midstream to resolve Clean Water Act violations at Colorado oil and gas facilities (August 10, 2021).

EPA settles with Shell to recover $29.5 Million for cleanup work done at Fullerton, Calif., Superfund Site (August 10, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 33—August 14, 2021)

No relevant actions.

Pennsylvania Legislature

HB 1780 “An Act amending the Storage Tank and Spill Prevention Act, in general provisions, further providing for definitions; and, in financial provisions, further providing for powers and duties of Underground Storage Tank Indemnification Board, for Underground Storage Tank Environmental Cleanup Program and for Underground Storage Tank Pollution Prevention Program.” Referred to Environmental Resources and Energy [House] (August 12, 2021).

HB 1789 “An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in natural gas competition, further providing for standards for restructuring of natural gas utility industry, for consumer protections and customer service and for requirements for natural gas suppliers; and, in restructuring of electric utility industry, further providing for standards for restructuring of electric industry, for duties of electric distribution companies and for requirements for electric generation suppliers.” Referred to Consumer Affairs [House] (August 12, 2021).

Upcoming Meeting: House Environmental Resources and Energy Meeting on August 17.

Upcoming Meeting: Senate Environmental Resources and Energy Meeting on August 18.

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register August 9–August 13, 2021):

Energy Department

86 FR 43429 Proposed Rule: “Energy Conservation Program for Appliance Standards: Procedures, Interpretations, and Policies for Consideration in New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment” (August 9, 2021).

86 FR 43430 Proposed Rule: “Energy Conservation Program: Energy Conservation Standards for Certain Commercial and Industrial Equipment; Early Assessment Review; Commercial and Industrial Pumps” (August 9, 2021).

86 FR 43532 Notice: “Notice of Public Meeting on Understanding the Environmental, Health, and Local Impacts of Ethane Processing and Distribution” (August 9, 2021).

Environmental Protection Agency

86 FR 44710 Notice: “Information Collection Request Submitted to OMB for Review and Approval; Comment Request; NESHAP for Natural Gas Transmission and Storage (Renewal)” (August 13, 2021).

86 FR 43726 Proposed Rule: “Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards” (August 10, 2021).

86 FR 43469 Proposed Rule: “Public Hearing for Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards” (August 9, 2021).

Executive Office of the President

86 FR 43583 Presidential Document: “Strengthening American Leadership in Clean Cars and Trucks” (August 10, 2021).

Federal Energy Regulatory Commission

86 FR 44353 Notice: “Reliability Technical Conference; Supplemental Notice of Technical Conference” (August 12, 2021).

86 FR 43590 Final Rule: “Standards for Business Practices of Interstate Natural Gas Pipelines” (August 10, 2021).

86 FR 43539 Notice: “Carolinas Clean Energy Business Association v. PJM Interconnection, L.L.C., Duke Energy Process, LLC; Notice of Complaint” (August 9, 2021).

Land Management Bureau

86 FR 43563 Notice: “Agency Information Collection Activities; Onshore Oil and Gas Leasing, and Drainage Protection” (August 9, 2021).

House Energy and Commerce Committee Actions:

No relevant actions.

Senate Energy and Natural Resources Committee:

No relevant actions.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks August 9–August 13, 2021:

US June Oil Exports Rise, Boosted by India, South Korea, Argus

USA Shale Producers Stay Disciplined, Rigzone

BP to Buy Natural Gas Supplies Derived from Cow Manure in Iowa, Bloomberg

Cheniere Sees Record LNG Exports, but Commodity Price Exposure Leads to Losses, Natural Gas Intelligence

Texas’s Midland Basin Accounted for 15% of U.S. Crude Oil Production in 2020, US Energy Information Administration