August 24, 2021

Shale Law Weekly Review – Week of August 23, 2021

Climate Change: The U.S. Department of Treasury Announces Guidance on MDB Funding of Fossil Fuels and Clean Energy Projects
On August 16, 2021, the U.S. Department of the Treasury released a guidance document to assist Multilateral Development Banks (MDBs) in funding and promoting the development of innovative sustainable projects rather than fossil fuel-based energy projects. In that regard, the U.S. Department of Treasury stated that it will “oppose” direct investment projects for new coal-based, oil-based energy, and upstream natural gas projects, among other things. The guidance document is titled Guidance on Fossil Fuel Energy at the Multilateral Development Banks and follows President Joe Biden’s Executive Order 14008 on Tackling the Climate Crisis at Home and Abroad issued this past January.

Public Lands: Biden Administration Appeals Decision to Resume Oil and Gas Leases on Public Lands and in Offshore Waters
On August 16, 2021, the Biden Administration filed an appeal with the U.S. Court of Appeals for the Fifth Circuit Court seeking to overturn the decision of a lower court granting a nationwide preliminary injunction against the U.S. Department of the Interior (DOI) and the U.S. Bureau of Land Management (BLM) from temporarily halting new oil and gas leases on public lands and offshore waters. State of Louisiana v. Biden, USCA Fifth Cir. No. 21-30505. For background, see SLWR – June 28, 2021, “Public Lands: Federal Court Issues Preliminary Injunction Against Public Land Lease Pause.”

Public Lands: Federal Court in Alaska Rules Against the Approval of Oil and Gas Development Project in National Petroleum Reserve-Alaska
On August 18, 2021, the U.S. District for the District of Alaska vacated and remanded for further proceedings the U.S. Bureau of Land Management’s (BLM) approval of the Willow Project in addition to the U.S. Fish and Wildlife Service’s (FWS) Biological Opinion and Incidental Take Statement (ITS). Sovereign Inupiat for a Living Artic, et al. v. BLM, et al., USDC Alaska, No. 3:20-cv-00290. Developed by ConocoPhillips, the Willow Project consists of expanding oil and gas development operations in the northeastern part of the National Petroleum Reserve in Alaska. The court found BLM’s omission of foreign greenhouse gas emissions in its EIS-alternatives analysis to be arbitrary and capricious. The court also ruled that the ITS is inconsistent with the law “because it lacks the requisite specificity of mitigation measures for the polar bear.”

Shale Law/Policy Resources of Interest:

Charles Sartain, Lessor Prevails in Texas Lease Termination Dispute (August 18, 2021).

John McFarland, EIA Issues Report on Battery Storage in the US (August 16, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

DEP Announces $1 Million in Grant Funding Available to Small Businesses and Farmers to Improve Operations through Energy Efficiency and Pollution Reduction (August 20, 2021).

U.S. Department of Energy

U.S. Department of Energy Announces $61 Million to Advance Breakthroughs in Quantum Information Science (August 19, 2021).

U.S. Department of Energy Announces $24 Million to Capture Carbon Emissions Directly From Air (August 17, 2021).

U.S. Environmental Protection Agency

EPA, Army Take Action to Address Implementation Challenges with 2020 Clean Water Act Section 401 Certification Rule (August 20, 2021).

EPA Celebrates 30 Years of Climate Partnerships (August 18, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 34—August 21, 2021)

51 Pa.B. 5255 Notice: “Wild Resource Conservation Program Public Input [Comments Due by Sept. 20].”

51 Pa.B. 5331 Notice: “Request for Comments on Implementation of Potential Amendments to 52 Pa. Code § 59.34 Relating to Leakage Surveys of Customer-Owned Service Lines [Tentative Implementation Order].”

Pennsylvania Legislature

No Relevant Actions.

Upcoming Meeting: House Environmental Resources and Energy Meeting on Thursday, September 2, 2021.

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register August 16–August 20, 2021):

Energy Department

86 FR 46793 Propose Rule: “Test Procedure Interim Waiver Process [Revising the Process to Align with the Purpose and Requirements of the Energy Policy and Conservation Act]” (August 20, 2021).

Environmental Protection Agency

86 FR 45724 Notice: “California State Nonroad Engine Pollution Control Standards; Large Spark-Ignition Engines Fleets Regulation; Request for Authorization; Opportunity for Public Hearing and Comment” (August 16, 2021).

86 FR 45726 Notice: “Proposed Information Collection Request; Comment Request; Diesel Emissions Reduction Act (DERA) Rebate Program; EPA ICR No. 2461.04, OMB Control No. 2060-0686 Renewal” (August 16, 2021).

Federal Energy Regulatory Commission

86 FR 46695 Notice: “Mountain Valley Pipeline, LLC; Notice of Availability of the Environmental Assessment for the Proposed Mountain Valley Pipeline Amendment Project” (August 19, 2021).

86 FR 46238 Notice: “Kendall County Solar Project, LLC v. PJM Interconnection, L.L.C.; Notice of Complaint” (August 18, 2021).

86 FR 45980 Notice: “PJM Interconnection, L.L.C.; Notice of Institution of Section 206 Proceeding and Refund Effective Date [Investigation into Reasonableness of Rates for Black Start Service Generating Units]” (August 17, 2021).

Land Management Bureau

86 FR 46711 Notice: “Agency Information Collection Activities; Onshore Geophysical Exploration [on Federal Land]” (August 19, 2021).

National Oceanic and Atmospheric Administration

86 FR 46683 Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico [Letter of Authorization for Telesis Geophysical Services, LLC]” (August 19, 2021).

Susquehanna River Basin Commission

86 FR 46750 Notice: “Projects Approved for Consumptive Uses of Water [Primarily Drilling Operations]” (August 19, 2021).

Workers Compensation Programs Office

86 FR 46778 Final Rule; Correction: “Claims for Compensation Under the Energy Employees Occupational Illness Compensation Program Act” (August 20, 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 16–August 20, 2021:

U.S. Shale Oil Output to Rise to Highest Since April 2020, Reuters

Biden Administration to Review Federal Coal Leasing, Appeal Injunction for Oil Leasing Pause, The Hill

API Supports Carbon Pricing, But Its Allies Remain Skeptical, E&E News

Oil Declines as Delta Clouds Outlook for Global Demand, Bloomberg

U.S. Natural Gas Dominance May Be Coming to an End, Oil Price

Frackers, Shippers Eye Natural-Gas Leaks as Climate Change Concerns Mount, Wall Street Journal

IEA: Global Oil Demand Falls in July on Delta Variant Spread, Oil & Gas Journal