Shale Law Weekly Review – Week of April 26, 2021

National Energy Policy: Secretary of the Interior Revokes Orders Deemed Inconsistent with Executive Order on Climate Policies ⚡
On April 16, 2021, the U.S. Secretary of the Interior, issued a Secretary’s Order revoking previous orders deemed inconsistent with Executive Order (EO) 13990.  The EO titled, Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, was signed by President Biden on January 20, 2021.  The Secretary’s Order revoked twelve orders, issued by previous Secretaries of the Interior, related to energy development.  The Secretary’s Order also directed a review of Interior policies, rules, and regulations to determine if other inconsistencies with EO 13990 exist.  Assistant secretaries are to report within 60 days to determine what action, if any, should be taken by the department.  The Secretary’s Order will remain in effect until it is revoked, amended, or suspended.

Oil and Gas Leasing: BLM Announces Moratorium on Oil and Gas Lease Sales for Second Quarter of 2021
On April 21, 2021, the U.S. Bureau of Land Management (BLM) announced a moratorium on oil and gas lease sales for the second quarter of 2021.  BLM recently sold 5.6 million acres of public lands and waters for oil and gas development.  BLM issued the moratorium based on Executive Order 14008, which directed the Dept. of the Interior to conduct a review of oil and gas leasing in light of potential climate impacts.  BLM will continue the moratorium while it reviews “whether the current leasing process provides taxpayers with a fair return.”  BLM’s review of the leasing process will also include evaluating whether the process complies with environmental laws, such as the National Environmental Policy Act.

Environmental Impact Studies: Minnesota Supreme Court Rules Environmental Review Not Required for Wisconsin Power Plant
On April 21, 2021, the Minnesota Supreme Court ruled that a Wisconsin Power Plant did not need to undergo an environmental review.  (In the Matter of Minnesota Power’s Petition for Approval of the EnergyForward Resource Package, Nos. A19-0688, A19-0704).  A lower court previously ruled that the Minnesota Public Utilities Commission was required, under the Minnesota Environmental Policy Act, to consider whether an environmental review was necessary before approving construction and operation agreements for the power plant.  The plant is partially owned by Minnesota Power and required Commission approval of contracts with its affiliated interest.  The Minnesota Supreme Court reversed the appellate court decision, finding that Minnesota Environmental Policy Act review does not apply because the construction and operation agreements are not projects and do not cause environmental effects.

Pipelines: U.S. Government Accountability Office Releases Report on Offshore Pipeline Oversight and Decommissioning
On April 19, 2021, the U.S. Government Accountability Office (GAO) released a report regarding offshore pipeline oversight and decommissioning.  The report titled, Offshore Oil and Gas: Updated Regulations Needed to Improve Pipeline Oversight and Decommissioning, reviewed procedures of the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE).  The report found that over 97 percent of decommissioned pipelines have been left behind in the Gulf of Mexico since the 1960s.  The report also found that BSEE lacks a thorough process for reviewing the safety, environmental, and oversight concerns for decommissioning pipelines.  Active pipelines in the Gulf of Mexico require subsurface monitoring versus subsea inspections.  GAO recommended that BSEE update their regulations to address active pipeline integrity and improve oversight of pipeline decommissioning.

Shale Law/Policy Resources of Interest:

George A. Bibikos, At the Well Weekly, Art. 1, sec. 27 (April 16, 2021)

Brigit Rollins, Senate Advances Carbon Market Bill (April 22, 2021)

Charles Sartain, Texas Legislature to Consider Oil and Gas Lien Law Amendment (April 19, 2021)

Charles Sartain, Mother Hubbard Clause Saves a Property Deed (April 22, 2021)

John McFarland, Key Laws Texas Landowners Need to Know (April 23, 2021)

Hillary Aidun, Climate Reregulation: Three Months In (April 20, 2021)

Tiffany Challe, The Rights Of Nature — Can An Ecosystem Bear Legal Rights? (April 22, 2021)

Michael Burger, Climate Rules Built To Last (April 22, 2021)

Michael Burger, The Second Circuit Takes On The Clean Air Act’s International Air Pollution Provision And Climate Change (April 23, 2021)

AGENCY PRESS RELEASES – STATE/FEDERAL

United States Department of Energy

DOE Launches International Clean Energy Initiatives to Tackle Climate Crisis (April 23, 2021)

DOE Announces $109.5 Million to Support Jobs and Economic Growth in Coal and Power Plant Communities (April 23, 2021)

U.S.-India Joint Statement on Launching the U.S.-India Climate and Clean Energy Agenda 2030 Partnership (April 22, 2021)

DOE to Support 11 Remote and Island Communities Transitioning to Resilient Clean Energy Solutions (April 20, 2021)

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Legislature

HB 1161 “An Act providing for local solar program, for renewable energy credits and for powers and duties of the Pennsylvania Public Utility Commission” Re-committed to Appropriations (April 21, 2021)

SB 300 “An Act amending the act of November 30, 2004 (P.L.1672, No.213), known as the Alternative Energy Portfolio Standards Act” Referred to Consumer Protection and Professional Licensure (April 20, 2021)

SB 518 “An Act amending Title 15 (Corporations and Unincorporated Associations) of the Pennsylvania Consolidated Statutes, in corporate powers, duties and safeguards, further providing for additional powers of certain public utility corporations” Referred to Consumer Protection and Professional Licensure (April 20, 2021)

HB 1230 “An Act amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in liquid fuels and fuels tax, further providing for political subdivision and volunteer service use of tax-free motor fuels” Referred to Finance (April 20, 2021)

HB 1242 “An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in unconventional gas well fee, repealing expiration; and imposing a natural gas tax” Referred to Environmental Resources and Energy (April 20, 2021)

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 16—April 17, 2021)

51 Pa.B 2364 “Application for approval of abandonment of natural gas service” (April 24, 2021)

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register April 19-23 2021):

Federal Energy Regulatory Commission

86 FR 20492 Notice—Comments Period “Eastern Gas Transmission and Storage, Inc.; Notice of Application and Establishing Intervention Deadline” (April 20, 2021)

86 FR 20488 Notice—Comments Period “Hartree Partners, LP v. Northern Natural Gas Company; Notice of Complaint” (April 20, 2021)

86 FR 20491 Notice—Comments Period “Transcontinental Gas Pipe Line Company, LLC; Notice of Request for Extension of Time” (April 20, 2021)

86 FR 20627 Final Rule – correction “Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators; Correction” (April 21, 2021)

86 FR 20686 Notice—Comments “Gulf States Transmission LLC; Notice of Application and Establishing Intervention Deadline” (April 21, 2021)

86 FR 20677 Notice—Comments Period “Transcontinental Gas Pipe Line Company, LLC; Notice of Application and Establishing Intervention Deadline” (April 21, 2021)

86 FR 20679 Notice—Comments Period “Enbridge Energy, Limited Partnership; Notice of Filing of Supplement to Facilities Surcharge Settlement” (April 21, 2021)

86 FR 20682 Notice “Transcontinental Gas Pipe Line Company, LLC; Notice of Waiver Period for Water Quality Certification Application” (April 21, 2021)

86 FR 21312 Notice—Comments Period “Columbia Gas Transmission, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (April 22, 2021)

86 FR 21722 Notice—Comments Period “Texas Gas Transmission, LLC; Notice of Request for Extension of Time” (April 23, 2021)

Office of Natural Resources Revenue

86 FR 20708 Notice of Information Collection—Comments Period “Agency Information Collection Activities: Indian Oil and Gas Valuation, 30 CFR Parts 1202, 1206, and 1207” (April 21, 2021)

House Energy and Commerce Committee Actions:

H.R. 2823 “To provide for the consideration of energy storage systems by electric utilities as part of a supply side resource process, and for other purposes” Referred to the Committee on Energy and Commerce (April 22, 2021)

H.R. 2822 “To require the Secretary of Energy to carry out an energy storage research program, loan program, and technical assistance and grant program, and for other purposes” Referred to the Committee on Energy and Commerce (April 22, 2021)

H.R 2818 “To require the Secretary of Energy to establish a grant program for States to offset incremental rate increases paid by low-income households resulting from the implementation of infrastructure programs that are designed to accelerate the necessary replacement, repair, or maintenance of natural gas distribution systems, and for other purposes” Referred to the House Committee on Energy and Commerce (April 22, 2021)

H.R. 2810 “To ensure that certain Federal infrastructure programs require the use of materials produced in the United States, and for other purposes” Referred to the Committee on Transportation and Infrastructure (April 22, 2021)

H.R. 2801 “To establish a durable framework for achieving long-term reductions in methane emissions from the oil and gas sector through advanced detection, measurement, and abatement technologies and practices, and for other purposes” Referred to the Committee on Energy and Commerce (April 22, 2021)

H.R. 2780 “To provide for climate change planning, mitigation, adaptation, and resilience in the United States Territories and Freely Associated States, and for other purposes” Referred to the Committee on Natural Resources (April 22, 2021)

H.R. 2763 “To establish the Financing Energy Efficient Manufacturing Program at the Department of Energy to provide financial assistance to promote energy efficiency and onsite renewable technologies in manufacturing facilities, and for other purposes” Referred to the Committee on Science, Space, and Technology (April 22, 2021)

H.R. 2705 “To amend the Natural Gas Act to provide for expanded natural gas exports” Referred to the House Committee on Energy and Commerce (April 22, 2021)

H.Con.Res. 31 “Recognizing that the climate crisis is disproportionately affecting the health, economic opportunity, and fundamental rights of children, recognizing the importance of renewed leadership by the United States in addressing the climate crisis, and recognizing the need of the United States to develop a national, comprehensive, and science-based climate recovery plan to phase out fossil fuel emissions, protect and enhance natural sequestration, and put the United States on a path towards stabilizing the climate system” Referred to the House Committee on Energy and Commerce (April 21, 2021)

Senate Energy and Natural Resources Committee Actions:

1. 1359 “A bill to establish the Foundation for Energy Security and Innovation, and for other purposes” Read twice and referred to the Committee on Energy and Natural Resources (April 22, 2021)
2. 1352 “A bill to improve the quality and timeliness of Federal permitting and review processes with respect to critical mineral production on Federal land, and for other purposes” Read twice and referred to the Committee on Energy and Natural Resources (April 22, 2021)
3. 1332 “A bill to establish the Financing Energy Efficient Manufacturing Program at the Department of Energy to provide financial assistance to promote energy efficiency and onsite renewable technologies in manufacturing facilites, and for other purposes” Read twice and referred to the Committee on Energy and Natural Resources (April 22, 2021)

EC752 “A communication from the Assistant General Counsel for Legislation, Office of General Counsel, Department of Energy, transmitting, pursuant to law, the report of a rule entitled “National Environmental Policy Act Implementing Procedures” Executive Communication (April 20, 2021)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks April 19-23, 2021:

“62 Groups Urge Biden Admin To Scrap Mountain Valley Permits” Energywire

“Dakota Access Argues Pipeline Closure Would Cause ‘Economic Shock’” Reuters

“U.S. Natural Gas Exports to Mexico Beating Expectations as Pemex Production Growth Fizzles” Natural Gas Intelligence

“$100B+ in Stranded Gas Assets at Risk” Bloomberg

“Democrats And Republicans Square Off In Court Over Delaware River Basin Commission Fracking Ban” The Philadelphia Inquirer

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Written by:
Sara Jenkins – Research Assistant
Jackie Schweichler – Staff Attorney
Sarah Straub – Research Assistant