Shale Law Weekly Review – May 4, 2020

Pipelines: Federal District Court Denies Stay Regarding Keystone XL Pipeline Permit Decision
On April 28, 2020, the U.S. District Court for the District of Montana denied a request to stay an April 15, 2020, order issued by the court to vacate a Nationwide Permit 12 (NWP) for the Keystone XL pipeline. (Northern Plains Resource Council v. U.S. Army Corps of Engineers, No. CV-19-44-GF-BMM).  The U.S. Army Corps of Engineers filed the request for partial stay pending appeal of the case and requested an expedited briefing on the issue. (order p. 1).  The Corps specifically requested that paragraphs five and six of the April 15th order be stayed. (order p. 1).  Paragraph five vacated the NWP 12 pending consultation with the U.S. Fish and Wildlife Service and compliance with all environmental laws. (April 15 order, p. 26).  Paragraph six stops the Corps from allowing any dredge or fill activities under NWP 12, also pending consultation and compliance with environmental laws.  The court denied the request for a stay of paragraphs five and six, but granted an expedited schedule to brief the issue.  All of the parties briefing documents are scheduled to be filed with the court by May 8, 2020.  Read more about the court’s April 15th order here.

Wastewater Disposal: Pennsylvania Department of Environmental Protection Approves Underground Wastewater Injection Well
On April 15, 2020, the Pennsylvania Department of Environmental Protection (DEP) issued a permit for an underground injection control well for disposal of wastewater used in oil and gas production.  Penneco Environmental Solutions, LLC applied for the permit to convert its existing well, Sedat 3A, into a disposal well.  In a news release announcing approval of the well, DEP explained that the well was approved following a public hearing where related comments and testimony were received.  The permit includes several conditions that must be met before disposal activities can begin at the well site.  The permit requires Penneco to create a seismic monitoring and mitigation plan that includes seventeen specific components listed in the permit. (permit, p. 1-3).  Other predisposal conditions require that Penneco obtain a permit to convert their Sedat #1 well into a monitoring well to track the injected fluid levels. (permit p. 3).

Methane Emissions: Environmental Defense Funds Releases Study on Methane Emissions in the Permian Basin
On April 29, 2020, the Environmental Defense Fund released data in its Permian Methane Analysis Project (PermianMAP), concluding that flaring activities were one of the largest sources of methane emissions in the Permian Basin. (aerial survey results).  PermianMAP gathered data from helicopter surveys of the Delaware and Midland basins in Texas.  Using data collected with infrared cameras through February and March 2020, the surveys found that 11% of flares were either malfunctioning or unlit within the study area. (helicopter survey map).  Further, the study found that unlit flares were venting “completely uncombusted methane” into the atmosphere. (aerial survey results).  The study ultimately concluded that companies in the region are “emitting 3.5 times more methane than what the Environmental Protection Agency assumes.” (aerial survey results).  In a more detailed publication of the project’s methodology, PermianMAP explained that the project’s data collection and analysis was implemented through a combination of aerial, ground, and flaring surveys.  Penn State researchers were involved in calculating total methane emissions for the region (methodology p. 5).

From the National Oil & Gas Law Experts:
Charles Sartain, Examining a Unit Operator’s Duties to an Unleased Mineral Owner (Apr. 29, 2020)
John McFarland, Texas Railroad Commission: Commissioner Sitton’s Proposed Proration Order to Be Considered May 5th; Commissioner Christian Opposed (Apr. 30, 2020)
Hillary Aidun, Local Governments Across the Country File Legal Brief Challenging EPA’s Failure to Address Power Plant Pollution (Apr. 24, 2020)

AGENCY PRESS RELEASES—STATE/FEDERAL

Pennsylvania Department of Energy Press Releases:
No new releases Apr. 27–May 4, 2020.

U.S. Department of Energy
No new releases Apr. 27-May 4, 2020.

U.S. Environmental Protection Agency
EPA Provides $1 Million Grant to Help South Carolina Address Leaking Underground Petroleum Storage Tanks (Apr. 28, 2020)
EPA Highlights Enforcement Actions Against Those Who Violate the Defeat Device and Tampering Prohibitions Under the Clean Air Act (Apr. 30, 2020)

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices:
No actions May 4, 2020.

Pennsylvania Legislature:
HB 247 “Reducing Surface Impact from Unconventional Gas Wells” Removed from Table (Apr. 20, 2020)
HB 827 “Economic Justice for DRBC Takings” Removed from Table (Apr. 21, 2020)
SB 790 “Conventional Oil and Gas Wells Act” Removed from Table (Apr. 20, 2020)

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies—Actions and Notices:

Energy Department
85 FR 25340 “National Environmental Policy Act Implementing Procedures” Proposed Rule (May 1, 2020)

Environmental Protection Agency
85 FR 23825 “Information Collection Request Submitted to OMB for Review and Approval; Comment Request; NSPS for VOC Emissions From Petroleum Refinery Wastewater Systems (Renewal)” Notice (April 29, 2020)

Federal Energy Regulatory Commission
85 FR 23512 “Carbon Pricing in FERC-Jurisdictional Organized Regional Wholesale Electric Energy Markets; Notice of Request for Technical Conference or Workshop” Notice (April 28, 2020)
85 FR 23513 “Questar Southern Trails Pipeline Company; Notice of Extension of Time Request” Notice (April 28, 2020)
85 FR 23517 “Golden Pass LNG Terminal LLC and Golden Pass Pipeline LLC; Notice of Application to Amend Section 3 and Section 7 Authorizations” Notice (April 28, 2020)
85 FR 23953 “Transcontinental Gas Pipe Line Company, LLC; Notice of Availability of the Environmental Assessment for the Proposed Northeast Supply Enhancement Project Amendment” Notice (April 30, 2020)
85 FR 26450 “Gulf South Pipeline Company, LLC; Notice of Request Under Blanket Authorization” Notice (May 4, 2020)
85 FR 26453 “Enable Gas Transmission, LLC, Enable Gulf Run Transmission, LLC; Notice of Schedule for Environmental Review of the Gulf Run and Line CP Modifications Project” Notice (May 4, 2020)

House Energy and Commerce Committee Actions:
No new actions Apr. 27-May 4, 2020.

Senate Energy and Natural Resources Committee Actions:
No new actions Apr. 27-May 4, 2020.

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“U.S. Natural Gas to Be World’s Priciest Amid Virus Upheaval,” BNN Bloomberg
“U.S. Oil Firm Continental Resources Halts Shale Output, Seeks to Cancel Sales,” Reuters
“U.S. Delays Oil Pipeline Approvals After Environmental Ruling,” Associated Press
“U.S. Fracking Set for Biggest Ever Monthly Drop,” Rigzone
“COVID-19 Mitigation Efforts Result in the Lowest U.S. Petroleum Consumption in Decades,” EIA
“‘Frac Holiday’ Means Prolonged Pain for Oil Industry,” Wall Street Journal
“The Great Texas Oil Shutdown Has Begun,” Houston Chronicle
“Chatterjee Defends How FERC Treats Protesting Landowners,” Energywire
“Exclusive: Chesapeake Energy Preparing Bankruptcy Filing,” Reuters
“Nation’s Oil Dreams Dim as State Giants Cut Spending,” Energywire

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Written by:
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Brennan Weintraub – Research Assistant