October 11, 2021

Shale Law Weekly Review – Week of October 11, 2021

GHG Emissions: U.S. Environmental Protection Agency Issues Final Rule to Reduce Hydrofluorocarbons Use and Production ⚡
On October 5, 2021, the U.S. Environmental Protection Agency (EPA) published in the Federal Register a Final Rule, titled “Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act.” The purpose of this rule is to decrease the U.S. production and use of hydrofluorocarbons (HCFs) by 85% until 2036, in accordance with the 2020 American Innovation and Manufacturing Act. Hydrofluorocarbons are potent greenhouse gases that are commonly used as refrigerants in refrigeration and air-conditioning systems. In a Press Release dated September 23^rd, EPA declared that “[a] global phasedown of HFCs is expected to avoid up to 0.5 °C of global warming by 2100.” The rule is set to become effective on November 4, 2021.

Pipelines: Pennsylvania Office of Attorney General Charges Energy Transfer with Environmental Crimes Related to the Mariner East 2 Pipeline Construction
On October 5, 2021, Pennsylvania Attorney General Josh Shapiro announced that Energy Transfer L.P. has been charged with 48 counts of environmental crimes for their conduct related to the construction of the Mariner East 2 Pipeline. AG Shapiro’s announcement reads, “Energy Transfer failed to report the losses of fluid to the Pennsylvania Department of Environmental Protection (DEP) numerous times, in spite of the legal requirement to do so. The Grand Jury found that there were multiple drill locations where the drilling fluid contained unapproved additives that entered the waters of the Commonwealth – impacting the drinking water of Pennsylvanians who rely on water wells.”

Air Quality: The U.S. Environmental Protection Agency Settles Disputes with Fuel Companies Over Fuel Quality Standard Violations
In a Press Release dated September 30, 2021, the U.S. Environmental Protection Agency (EPA) reached administrative settlements in disputes with Chevron U.S.A. Inc., and American Refining Group, Inc. (ARG) over alleged violations of fuel quality standards under the Clean Air Act. According to EPA, “[t]he fuel quality violations … include Chevron’s failure to comply with the gasoline volatility standard, the gasoline per-gallon sulfur standard, and the gasoline benzene credit reporting requirements” and “ARG’s failure to comply with the maximum average gasoline benzene standard.” Chevron and ARG agree to pay $647,988 and $220,000 in civil penalties, respectively.

Shale Law/Policy Resources of Interest:

Charles Sartain and Brittany Blakey, Texas Court Rules on a Retained Acreage Clause (October 9, 2021).

Jessica Wentz, New Working Paper Examines Role of Climate Attribution Science in Endangered Species Management (October 8, 2021).

Jeremy Mercer, Religious Freedom Restoration Act Claims Against FERC-Regulated Pipeline Must Be Presented Initially to FERC, Regardless of Damages Sought (October 7, 2021).

Brigit Rollins, Biden Administration Begins Review of Environmental Regulations (October 7, 2021).

Jeremy Mercer, Plaintiff Lessors Bear Burden of Proof in Royalty Breach Claim (October 4, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

DEP Issues Code Orange Air Quality Action Day for Fine Particulate Matter for Friday, October 8, 2021, in Susquehanna Valley Area (October 7, 2021).

Wolf Administration Honors 13 Projects Statewide with 2021 Governor’s Awards for Environmental Excellence (October 6, 2021).

U.S. Department of Energy

DOE Sets 2025 Community Solar Target to Power 5 Million Homes (October 8, 2021).

DOE Announces $20 Million to Produce Clean Hydrogen from Nuclear Power (October 7, 2021).

DOE Announces Agency Climate Adaptation and Resilience Plan (October 7, 2021).

DOE Invests $45 Million to Decarbonize the Natural Gas Power and Industrial Sectors Using Carbon Capture and Storage (October 6, 2021).

DOE Announces Clean Energy Cybersecurity Accelerator Program to Modernize the Grid (October 6, 2021).

U.S. Environmental Protection Agency

EPA Acts on Petitions to Cut Climate-Damaging HFCs, Will Begin AIM Act Rulemaking Process (October 8, 2021).

EPA Releases 2020 Data Collected under Greenhouse Gas Reporting Program (October 6, 2021).

EPA Awards Almost $5 Million to Pennsylvania to Control Polluted Runoff, Restore Water Quality (October 4, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 41—October 9, 2021)

Department of Environmental Protection

51 Pa.B. 6421 Notice: “Applications, Actions and Special Notices [‘Applications for National Pollutant Discharge Elimination System (NPDES) Permits and Water Quality Management (WQM) Permits Under the Clean Streams Law and Federal Clean Water Act’].”

Pennsylvania Public Utilities Commission

51 Pa.B. 6498 Notice: “Acquisition by Purchase [Application for Purchase of 103 Stoney Ridge Drive, Monaca by Columbia Gas of Pennsylvania, Inc.’].”

Pennsylvania Legislature

HB 1801 “An Act amending. . . the Engineer, Land Surveyor and Geologist Registration Law, further providing for procedure for licensing as professional engineer.” Removed from Table [House] (October 6, 2021).

HB 1842 “An Act amending. . . The Clean Streams Law, in other pollutions and potential pollution, providing for notice of discharge endangering public health or environment.” Laid on the Table [House] (October 4, 2021).

HB 1947 “An Act amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in preemptions, providing for restrictions on utility services prohibited [Preventing Discrimination on the Basis of Energy Type].” Referred to Local Government [House] (October 4, 2021).

Upcoming Meeting: House Environmental Resources and Energy Meeting on Monday, October 25, 2021.

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register October 4 – October 8, 2021):

Council on Environmental Quality

86 FR 55757 Proposed Rule: “National Environmental Policy Act Implementing Regulations Revisions” (October 7, 2021).

Energy Department

86 FR 56258 Notice: “Freeport LNG Expansion, L.P.; FLNG Liquefaction, LLC; FLNG Liquefaction 2, LLC; and FLNG Liquefaction 3, LLC; Application for Long-Term Authorization to Export Liquefied Natural Gas to Non-Free Trade Agreement Nations” (October 8, 2021).

Environmental Protection Agency

86 FR 56263 Notice: “Release of the Draft Policy Assessment for the Particulate Matter National Ambient Air Quality Standards” (October 8, 2021).

86 FR 54968 Notice: “Proposed Consent Decree; Clean Air Act Citizen Suit [Alleging EPA Failures Related to State Implementation Plans for Air Quality and Oil and Gas Control Technique Guidelines]” (October 5, 2021).

Federal Energy Regulatory Commission

86 FR 56260 Notice: “Columbia Gas Transmission, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline [for Replacement of a Portion of the Pipeline and Several Facilities]” (October 8, 2021).

86 FR 55838 Notice: “Technical Conference on Greenhouse Gas Mitigation: Natural Gas Act Sections 3 and 7 Authorizations; Supplemental Notice of Technical Conference [on November 19, 2021]” (October 7, 2021).

86 FR 55838 Notice: “Texas Eastern Transmission, LP; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed Holbrook Compressor Units Replacement Project” (October 7, 2021).

86 FR 55840 Notice: “Mountain Valley Pipeline, LLC; Notice of Extension of Time Request [Extension for Serviceable Date of Greene Interconnect]” (October 7, 2021).

86 FR 54964 Notice: “Tesoro Logistics Northwest Pipeline LLC; Notice of Petition for Declaratory Order [Seeking Expansion of the SLC Core Pipeline System]” (October 5, 2021).

Justice Department

86 FR 56292 Notice: “Notice of Lodging of Proposed Consent Decree Under the Oil Pollution Act [for Payments Intended for the Restoration of Damaged Natural Resources” (October 8, 2021).

86 FR 55637 Notice: “Notice of Lodging of Proposed Consent Decree Under the Clean Air Act [for Three Natural Gas Processing Plants and a Natural Gas Treatment Plant]” (October 6, 2021).

Land Management Bureau

86 FR 55857 Notice: “Notice of Filing of Plats of Survey; New Mexico [Protests Required Before November 8, 2021 Filing]” (October 7, 2021).

National Institute of Standards and Technology

86 FR 56252 Notice: “National Cybersecurity Center of Excellence (NCCoE) Data Classification Practices: Facilitating Data-Centric Security Management [Inviting Letters of Interest]” (October 8, 2021).

Ocean Energy Management Bureau

86 FR 54728 Notice: “Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257 [Bid Deadline on Tuesday, November 16, 2021]” (October 4, 2021).

Pipeline and Hazardous Materials Safety Administration

86 FR 54786 Notice: “Pipeline Safety: Joint Meeting of the Gas and Liquid Pipeline Advisory Committees [Virtual Meeting on October 20-21, 2021; Public Attendees Must Register by October 15]” (October 4, 2021).

House Energy and Commerce Committee Actions:

H.R.5494 “Protect Peaceful Protests Act [Limiting Federal Law Enforcement Activities Without Jurisdictional Approval]” Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management (October 6, 2021).

H.R.5495 “Building Resilient Supply Chains Act [to Establish the Supply Chain Resiliency and Crisis Response Office in the Department of Commerce]” Referred to the House Committee on Energy and Commerce (October 5, 2021).

H.R.5477 “Federal Agency Climate PREP Act [to Require Federal Agencies to Maintain Plans for Responding to, Mitigating, and Adapting to Climate Change]” Referred to the Committee on Oversight and Reform, and in addition to the Committee on Energy and Commerce. . . (October 5, 2021).

Senate Energy and Natural Resources Committee:

S.2962 “A bill to amend the Mineral Leasing Act to ensure market competition in onshore oil and gas leasing, and for other purposes.” Read twice and referred to the Senate Committee on Energy and Natural Resources (October 7, 2021).

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks October 2–October 8, 2021:

EXCLUSIVE U.S. Justice Department Probes Suspected Manipulation of Platts Benchmarks—Sources, Reuters

Analysts Look at Oil and Gas Impact of New USA Bills, Rigzone

Five Midwest States to Collaborate on Electric Vehicle Charging Network, The Hill

NextEra Seeks Approval to Run Another Nuclear Plant for 80 Years, Bloomberg

Enbridge’s Long-Delayed Line 3 Oil Pipeline Project to Start Up Oct. 1, Reuters

Pa. Attorney General Announces 48 Criminal Charges against Energy Transfer in Mariner East Pipeline Construction, Pittsburgh Post-Gazette

Phillips 66 to Cut 30% Greenhouse Gas Emissions by 2030, Reuters

U.S. Frackers Fear Vaccine Mandate Will Worsen Worker Crunch, Wall Street Journal

U.S. Sets Nov. 17 Date for Gulf of Mexico Oil and Gas Auction, Reuters

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