Shale Law Weekly Review—Week of November 29, 2021

Public Lands: Interior Review of Oil and Gas Leasing Programs Finds Failures to Provide a Fair Return
On November 26, 2021, the Department of the Interior (DOI) released a report critiquing the functioning of the federal government’s onshore and offshore leasing programs. The report specifically condemned the leasing programs’ financial operations, suggesting that the royalty rates for leasing on public lands be increased, and that the bonding levels should likewise be increased. The report was requested by President Biden as part of Executive Order 14008 and it was based on studies previously conducted by the Government Accountability Office (GAO) and the DOI’s Office of the Inspector General (OIG), as well as interviews with Tribal leaders, expert panelists, and other stakeholder groups.

Air Quality: EPA Requires Natural Gas Plants to Report Emissions to Toxics Release Inventory
On November 24, 2021, The Environmental Protection Agency (EPA) published a final rule in the Federal Register requiring natural gas processing facilities to report any emissions of benzene, toluene, methanol, and other chemicals that might occur at the site of the plant. Natural gas facilities will report emissions to the Toxics Release Inventory (TRI), as required by the Emergency Planning and Community Right-to-Know Act (EPCRA). The TRI was created in 1986 by Congress to register and track hazardous emissions from a variety of industrial sectors, but natural gas processing plants were not previously included among the types of industrial sectors required to report. Natural gas processing facilities will be required to report emissions starting from January 1, 2022. Th EPA estimates that incremental costs for the industry will be between $11.8 million to $18 million in the first year, and between $5.6 million to $8.6 million in subsequent years.

National Energy Policy: Department of Energy to Release 50 Million Barrels of Oil from Strategic Reserve
On November 23, 2021, President Biden asked the Department of Energy to release 50 million gallons of oil from the Strategic Petroleum Reserve. Of the proposed drawdown, 18 million gallons would satisfy a sale of oil that Congress had previously authorized. The remaining 32 million gallons were intended to help ease oil prices as the US exited from the Covid-19 crisis and oil supply struggled to meet demand. The Biden Administration noted that the 32 million gallon withdrawal was temporary and would be replaced in the coming years. The announcement came as China, India, Japan, South Korea, and the United Kingdom all also announced similar dips into their strategic petroleum reserves. As part of this process, the Biden Administration asked the Federal Trade Commission (FTC) to scrutinize the oil and gas industry for potential anti-competitive practices that could have been driving oil prices up.

Pipelines: TC Energy Files $15 Billion Arbitration Claim Against U.S. Government After it Cancelled Keystone XL pipeline permits
On November 22, 2021, TC Energy (formerly TransCanada), filed a $15 billion arbitration claim against the United States for revoking a presidential permit that would have allowed the company to build the Keystone XL pipeline. The Keystone XL pipeline was the subject of environmental protests in the United States, and in 2015, former President Obama announced the decision to deny necessary permits for construction of Keystone XL to continue. In 2016, TransCanada brought its under the North American Free Trade Agreement (NAFTA). When the former President took office, he issued a presidential permit that would have allowed construction on Keystone XL to continue, and TransCanada dropped its $15 billion claim. When President Biden took office, he revoked his predecessor’s presidential permit, and TC Energy announced that it would end all plans to build Keystone XL. In July 2021, TC Energy announced its intent to file a new $15 billion arbitration claim under legacy NAFTA chapters. In its November statement reflecting the filing, the company said it had no intention of reviving the Keystone XL pipeline, and the purpose of its claim was to recuperate costs.

 

Shale Law/Policy Resources of Interest:

Charles Sartain and Brittany Blakey, Fair and Reasonable Offer Required Before Force-Pooling in Texas (November 22, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

No Relevant Actions.

U.S. Department of Energy

DOE To Make Available a Release Of 50 million Barrels of Crude Oil from the Strategic Petroleum Reserve (November 23, 2021).

U.S. Environmental Protection Agency

North Idaho’s West Silver Valley attains Clean Air Act standards for fine particle pollution (November 24, 2021).

KCMO’s Metropolitan Energy Center Awarded Over $1.4 Million to Reduce Diesel Emissions in Six Regional Cities (November 22, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 48—November 27, 2021)

No Relevant Actions.

Pennsylvania Legislature

HB 2104 “An Act amending Title 27 (Environmental Resources) of the Pennsylvania Consolidated Statutes, providing for decommissioning of alternative energy facilities [Solar or Wind Facilities].” Referred to Environmental Resources and Energy [House] (November 23, 2021).

SB 945 “An Act providing for the disposition of alternative energy credits [Providing for Sale, Auction or Transfer].” Referred to Environmental Resources and Energy [Senate] (November 23, 2021).

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register November 22 – November 26, 2021 [Except Thanksgiving, November 25]):

Energy Department

86 FR 67038 Notice: “Request for Information on DOE’s Cybersecurity Capability Maturity Model (C2M2) Version 2.0 (July 2021)” (November 24, 2021).

Environmental Protection Agency

86 FR 67419 Proposed Rule: “Renewable Fuel Standard (RFS) Program: Extension of Compliance and Attest Engagement Reporting Deadlines” (November 26, 2021).

86 FR 67418 Proposed Rule: “Air Plan Approval; Pennsylvania; Revision of the Maximum Allowable Sulfur Content Limit for Number 2 and Lighter Commercial Fuel Oil in Allegheny County” (November 26, 2021).

86 FR 66953 Rule: “Addition of Natural Gas Processing Facilities to the Toxics Release Inventory” (November 24, 2021).

86 FR 66993 Rule: “Significant New Use Rules on Certain Chemical Substances (21-2.5e) [‘for chemical substances that were the subject of premanufacture notices (PMNs) and are also subject to Orders issued by EPA pursuant to TSCA’]” (November 24, 2021).

Federal Energy Regulatory Commission

86 FR 67051 Notice: “Florida Gas Transmission, LLC; Notice of Availability of the Draft Environmental Impact Statement for the Proposed Big Bend Project” (November 24, 2021).

Fish and Wildlife Service

86 FR 67352 Rule: “Endangered and Threatened Wildlife and Plants; Technical Corrections for 18 Southwestern United States Species Found in Arizona, New Mexico, and Texas [Editorial Changes Without Substantive Changes” (November 26, 2021).

Justice Department

86 FR 67086 Notice: “Notice of Lodging of Proposed Consent Decree Under the Oil Pollution Act [‘lawsuit against Bridger Pipeline LLC. . . discharge of oil from Bridger’s Poplar Pipeline into the Yellowstone River’]” (November 24, 2021).

Labor Department

86 FR 67089 Notice: “Agency Information Collection Activities; Submission for OMB Review; Comment Request; Notification of Methane Detected in Underground Metal and Nonmetal Mine Atmospheres” (November 24, 2021).

Land Management Bureau

86 FR 66333 Notice: “Agency Information Collection Activities; Onshore Oil and Gas Leasing, and Drainage Protection” (November 22, 2021)

National Oceanic and Atmospheric Administration

86 FR 67449 Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (November 26, 2021).

House Energy and Commerce Committee Actions:

H.R.6071 “To prohibit the Administrator of the Environmental Protection Agency from retroactively reducing certain determinations under the Renewable Fuel Program, and for other purposes.” Referred to the House Committee on Energy and Commerce (November 23, 2021).

Senate Energy and Natural Resources Committee:

No Relevant Actions.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks November 20–November 26, 2021:

PUC: Sunoco Pipeline L.P. to Enhance Public Safety in Mariner East Pipeline Construction, WTAJ News

Anti-OPEC+ Officially Emerges, Rigzone

Coal-Fired Power Plants to Close after New Wastewater Rule, Associated Press

EPA Forces Natural Gas Plants to Make Pollution Data Public, E&E News

U.S. FERC Investigates Two Cases for Market Manipulation During Texas February Freeze, Reuters

Biden Administration to Release 50 Million Barrels of Oil from Strategic Reserve, The Hill

International Energy Group Sees OPEC+ Sticking with Output Increases, Reuters

Analysis: ‘Living Hand to Mouth’: Europe’s Gas Crunch Shows Little Sign of Easing, Reuters

EOG’s Permian, Eagle Ford Production Ready To Supply Gulf Coast Export Projects, Natural Gas Intelligence

Connect with us on Facebook.  Every week we post the CASL Ledger detailing our publications and activities from the week. 

Penn State Shale Law Podcast: Listen to the latest episode here.

 

Written by:
Megan Geuss, Research Assistant
Noah Gochnauer, Research Assistant
Chloe Marie, Research Specialist
Jackie Schweichler, Staff Attorney