Shale Law Weekly Review – November 11, 2019

National Energy Policy: United States Initiates Withdrawal Process from the Paris Agreement
On November 2, 2019, U.S. Secretary of State Mike Pompeo issued a statement that the Department of State formally notified the United Nations that the United States will withdraw from the Paris Agreement.  According to Secretary Pompeo, the United States will be officially out of the agreement within one year after the delivery of the notification. U.S. President Donald Trump first indicated his intention to withdraw from the agreement on June 1, 2017, arguing that the agreement puts the country at a competitive disadvantage in the global marketplace.  Secretary Pompeo added, however, that the United States will continue to participate in discussions on clean energy sources and technologies.

Pipelines: Appeals Court Denies Rehearing for PennEast Pipeline
On November 5, 2019, the U.S. Court of Appeals for the Third Circuit denied a petition for rehearing requested by the PennEast Pipeline Company.  The PennEast Pipeline is a 118-mile expansion project designed to transport Marcellus Shale gas through southeastern Pennsylvania and New Jersey.  PennEast was granted approval for the project by the Federal Energy Regulatory Commission in January 2018.  Following a series of legal challenges, the U.S. Court of Appeals for the Third Circuit held that PennEast Pipeline Company is barred by the 11th amendment from condemning properties along the pipeline route that are controlled by the state of New Jersey.

Induced Seismicity: United Kingdom Announces Permanent Shutdown of Hydraulic Fracturing in England
On November 2, 2019, United Kingdom Business and Energy Secretary Andrea Leadsom announced in a press release the cessation of hydraulic fracturing activities in England.  This decision follows the release of an interim report by the Oil and Gas Authority (OGA), which provides a scientific analysis and interpretation of data collected in the course of Cuadrilla’s drilling operations at the Preston New Road (PNR) site.  OGA commissioned multiple independent researchers to analyze the relationship between hydraulic fracturing and induced seismicity at PNR.  The interim report concluded that “[t]he methods for predicting event maximum and magnitude need further testing and cannot be viewed as reliable for [Preston New Road].”  Consequently, Secretary Leadsom declared that the ban will be implemented for an indefinite term until the government is provided with new scientific evidence that hydraulic fracturing is safe.  In addition, the government announced that it will not pursue its proposed planning reforms for shale gas exploration.

Methane Emissions: Study Examines Methane Point-Source Emissions in California
On November 6, 2019, the Nature Research Journal published a study examining point-source emissions in California.  The study, California’s Methane Super-Emitters, used airborne imaging spectrometry between 2016 and 2018.  The researchers were able to detect, identify, and quantify 564 methane point sources.  According to the study, the majority, or 41%, of California’s point-source emissions emanate from landfills.  The researchers estimate that dairies account for 26% and the oil and gas sector contributes 26% of methane point-source emissions.

From the National Oil & Gas Law Experts:
Georges A. Bibikos, At the Well Weekly (Nov. 1, 2019)
Charles Sartain, Limitations Title Not Precluded by Late Acknowledgement (Nov. 7, 2019)
Charles Sartain, Fake Mineral Leases Thwarted by the Texas Legislature (Nov. 5, 2019)
John McFarland, How Fracking Works (Nov. 4, 2019)
Stephen M. Boone Jr. et al., Rundown of Recent Developments in Covenant Running with the Land Tension (Oct. 24, 2019)

National Legislation

Land Management Bureau
Notice of Proposed Reinstatement of Terminated Oil and Gas Leases, NMNM 126064, NMNM 130871, NMNM 130872, NMNM 130873, NMNM 121491, NMNM 119270, NMNM 116002, NMNM 010192, New Mexico, 84 FR 59643 (November 5, 2019)
Notice of 2019 National Petroleum Reserve in Alaska Oil and Gas Lease Sale and Notice of Availability of the Detailed Statement of Sale, 84 FR 59642 (November 5, 2019)
Rule; Minerals Management: Adjustment of Cost Recovery Fees, 84 FR 59730 (November 6, 2019)

Pennsylvania Actions and Notices

Department of Environmental Protection
Applications, Actions and Special Notices (November 9, 2019)

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:
“Exxon denies that it misled investors on climate risks,” Associated Press
“Pipeline Spill Hardens Landowner Opposition To Keystone XL,” Hart Energy
“Did Exxon Mislead Investor About Climate-Related Risks? It’s Now Up to a Judge to Decide,” Inside Climate News
“Law: Panel approves 11th Circuit picks with energy ties,” E&E News
“Oil Shippers Turn to Rail Amid Keystone Pipeline Shutdown,” RigZone
“PennEast loses bid to redo eminent domain ruling,” E&E News
“Another sinkhole develops along Mariner East Pipeline route,” Shale Gas Reporter
“Trump administration pushes for LNG rail shipments,” Shale Gas Reporter
“Oil Rich Norway’s Central Bank Sounds Climate Risk Warning,” Bloomberg
“Keystone Pipeline Spills 383,000 Gallons of Oil into North Dakota Wetlands,” InsideClimate News

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Written by:
Chloe Marie – Research Specialist
Jackie Schweichler – Staff Attorney