April 14, 2025

Shale Law Weekly Review—Week of April 14, 2025

Oil and Gas Leasing: Pennsylvania Superior Court Upholds Choice of Forum Clause in Lease ⚡
On March 20, 2025, the Superior Court of Pennsylvania ruled that the language of an oil and gas lease reserved the choice of forum decision to the lessor. Golden Eagle Res. II LLC v. EQT Prod. Co., Nos. 261 WDA 2024, 413 WDA 2024, 2025 Pa. Super. Unpub. LEXIS 763 (Mar. 24, 2025). Plaintiff Golden Eagle Resources (Golden Eagle) leased its oil and gas interest underneath two properties to LOLA, who subsequently leased it to defendant EQT Production Company (EQT). A provision allowed the lease to be extended past its initial term if actual drilling operations were conducted, or if oil and gas was produced in paying quantities. Golden Eagle brought suit at the end of the primary term, alleging the wells were completed and no other drilling operations would trigger the extension. Golden Eagle sought royalty payments, and to quiet title on the expired parcels. EQT objected to the suits and the filing in state court, claiming the lease contained an arbitration clause, the trial court dismissed it, and EQT appealed. The Superior Court reasoned that the terms of the lease contained language reserving to the lessors (in this case Golden Eagle) the choice of forum in which to file suit. Further, at the time of creation, the parties agreed that the addendum would supersede any conflicting lease terms, and as the forum clause was contained in the addendum, it was controlling. As such, Golden Eagle had the right to file suit in whatever court it wants, and the denial of EQT’s motion to compel arbitration is affirmed.

National Energy Policy: USDA Announces the Release of Funds for Biofuels Program
On March 31, 2025, the U.S. Department of Agriculture (USDA) announced the release of funds made available by the Higher Blends Infrastructure Incentive Program (HBIIP). The HBIP seeks to increase the use of fuels with “higher blends of ethanol and biodiesel” in efforts to support renewable fuel sources. This release of funds totals $537 million and is intended to fund 543 projects across 29 states. The USDA notes that these projects will further Executive Order 14154 “Unleashing American Energy.”

Pipelines: D.C. Court of Appeals Denies Environmental Groups’ Petition Challenging Louisiana Pipelines
On March 28, 2025, in a case involving challenges to the Federal Energy Regulatory Commission’s (FERC) approval of two Louisiana natural gas pipelines, the D.C. Circuit denied challenges from Healthy Gulf and Sierra Club. Healthy Gulf, et al v. FERC, Docket No. 23-01226 (D.C. Cir. Aug 21, 2023). Healthy Gulf and Sierra Club petitioned jointly for the D.C. Circuit to review the certificate that FERC granted to Driftwood Pipeline LLC (Driftwood) to “build and operate two new natural gas pipelines, Lines 200 and 300, in southwestern Louisiana.” Healthy Gulf and Sierra Club argued that FERC violated the National Environmental Policy Act (NEPA) by failing to consider numerous environmental effects that would be caused by the pipelines. The environmental groups also challenged the certificate based on the Natural Gas Act, contesting FERC’s determinations that “(1) the project would serve a market need and (2) the project’s public benefits would outweigh its adverse effects.” The court found that neither challenge had basis and denied the petition.

 

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CENTER PROGRAMS & RESOURCES

Understanding Agricultural Law Series. A free monthly Zoom webinar series for agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. All events on Fridays, noon–1 pm (ET). Upcoming:

April 2025 Quarterly Dairy Legal Webinar – The Penn State Center for Agricultural and Shale Law will conduct the latest installment in its Quarterly Dairy Legal Webinar series.  Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter and includes an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Beginning Your Farm Transition Process – Center Staff Attorney Brook Duer will join Penn State Extension’s Farm Transition Team to present “Beginning Your Farm Transition Process,” hosted by Penn State Extension.

Follow us on Twitter @AgShaleLaw to see the latest with our #ShaleLaw HotLinks 

Connect with us on Facebook.

Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.

Oil & Gas Law & Policy Resources:

Murthy, Regulation of Seaweed Cultivation and Sinking for Carbon Dioxide Removal in Alaska: New Sabin Center Report (April 10, 2025)

Bibikos,  At the Well Weekly (April 4, 2025)

Sartain, Texas Court Extends Statutory Waste Provisions to Disposal Wells (April 10, 2025)

Bloomberg, US Crude Flows to China Trickle to Near Zero After Tariff Blitz (April 10, 2025)

Turner, New Executive Order Tees Up Challenges to State and Local Climate Laws (April 8, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

ICYMI: Administrator Zeldin in NYPost: “So long to Biden’s ‘environmental justice’ scams — Team Trump is tackling REAL threats to water, air” (April 10, 2025)

EPA Issues Final Permits for Geologic Sequestration of Carbon Dioxide in Texas (April 7, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register April 4 – 11, 2025)

Environmental Protection Agency

90 FR 15001 Notice: “Ambient Air Monitoring Reference and Equivalent Methods; Designation of Two New Equivalent Methods” (April 7, 2025)

Federal Energy Regulatory Commission

90 FR 15362 Notice: “EcoEléctrica L.P.; Notice of Availability of the Environmental Assessment for the Proposed Ecoeléctrica LNG Supply Pipeline Capacity Project” (April 10, 2025)

90 FR 14823 Notice: “Transcontinental Gas Pipe Line Company, LLC; Notice of Request for Extension of Time” (April 4, 2025)

Pipeline and Hazardous Materials Safety Administration

90 FR 15032Notice: “Hazardous Materials: Notice of Actions on Special Permits” (April 7, 2025)

Ocean Energy Management Bureau

 90 FR 14866 Notice: “Outer Continental Shelf, Alaska Region, Cook Inlet Planning Area, Oil and Gas Lease Sale 258” (April 4, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.2769 Bill: “To provide that, for a 3-year period, applications for the exportation of natural gas to member countries of the North Atlantic Treaty Organization be granted without modification or delay, and for other purposes.” (April 9, 2025 – Referred to House Committee)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

Getting Stuff Done: DEP Reduces Permit Backlog by 88% and Has Already Reviewed More Than 9,000 Permits This Year (April 9, 2025)

MEDIA ADVISORY: THURSDAY – VIRTUAL TOWNHALL – DEP to Provide Update on Upper Makefield Township Washington Crossing Pipeline (April 9, 2025)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 14 – April 5, 2025)

 

Written by:
Jasmine Gunning, Research Assistant
Dillon Lightfoot, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Victoria Dutterer, Research Assistant
Jose Rojas, Research Assistant
Jackie Schweichler, Staff Attorney