April 7, 2025

Shale Law Weekly Review—Week of April 7, 2025

Environmental Impact Studies: Penn State Research Shows Environmental Benefits from Reusing Abandoned Oil and Gas Wells ⚡
On February 28, 2025, a research article was published in the Journal of Energy Storage titled Underground energy storage using abandoned oil & gas wells assisted by geothermal. The authors explore the potential for abandoned oil and gas wells (AOGWs) to be reused as “containment cells for pressurized air,” a process that may reduce greenhouse gas emissions from AOGWs. Finding that reusing the AOGWs would be beneficial by providing “stability and natural insulation,” the article proposes that AOGWs be used as “inexpensive [compressed air energy storage] containers by sealing and converting their structure.” The article mentioned advantages of using AOGWs as compressed air energy storage, which include sealed rock formations, ideal infrastructure, and the ability to “mitigate environmental risks associated with methane leakage.”

State Regulation: Shapiro Announced 300th Abandoned Well Plugged
On March 12, 2025, Pennsylvania Governor Josh Shapiro announced the 300th abandoned well plugged by the Pennsylvania Department of Environmental Protection (DEP) as part of Governor Shapiro’s Well Plugging Program. According to the announcement, DEP has plugged more wells through this program over the past two years than were plugged over the past decade. In the announcement, Shapiro noted his proposed “$13 million increase in state funding” for the Well Plugging Program in the 2025-2026 budget.

Oil and Gas Leasing: Federal Judge Rules U.S. Department of the Interior Unlawfully Canceled Oil and Gas Leases in Alaska National Wildlife Refuge
On March 25, 2025, the United States District Court for the District of Alaska issued a decision and order holding that the U.S. Department of Interior’s cancellation of Alaska Industrial Development and Export Authority’s (ADIEA) oil and gas leases in the Alaska National Wildlife Refuge (ANWR) was unlawful. Alaska Indus. Dev. & Export Auth. V. U.S. Dep’t of the Interior, No. 3:24-cv-0051. The court held that when Congress passed the 2017 Tax Cuts and Jobs Act, they intended for the Naval Petroleum Reserves Production Act (NRPA) regulations to apply to the Coastal Plain program, and therefore the Secretary of Interior does not have authority to cancel leases without judicial intervention, specifically a court order. The court vacated DOI’s lease cancellation decision, holding that DOI’s cancellation was “not in accordance with law because it failed to seek a court order,” and remanded the case to the DOI for further proceedings to be consistent with this ruling. For background, see SLWR—Nov. 6, 2023 “Alaska Challenges DOI’s Cancellation of Leases in Alaska National Wildlife Refuge.”

National Energy Policy: USDA Announces the Release of Funding for Rural Energy Projects
On March 25, 2025, the U.S. Department of Agriculture (USDA) announced the release of funding provided under the Rural Energy For America Program (REAP), Empowering Rural America (New ERA), and Powering Affordable Clean Energy (PACE) programs. These programs fund new and, in some cases, sustainable energy projects in rural areas. Funding is available for individuals and entities, depending on the program. Program recipients will have 30 days to review and “voluntarily revise” aspects of their proposals to ensure alignment with Executive Order 14154 “Unleashing American Energy.”

National Energy Policy: Department of Interior Takes Immediate Steps to Expand Oil and Gas Production in Alaska
On March 20, 2025, the Department of Interior (DOI) released a press release stating the DOI will immediately increase development of Alaska’s oil and gas resources. The DOI had previously issued a Secretary’s Order, aiming to expedite and lease energy projects in Alaska, which was a direct response to an Executive Order with the same goal. The newest steps announced include opportunities for development in the National Petroleum Reserve and the Coastal Plain. The DOI will also help expedite public land permitting for the Ambler Road and Alaska Liquified Natural Gas Pipeline projects. For more information on the Secretary’s Orders, see SLWR – Feb. 17, 2025, “National Energy Policy: Department of Interior Releases Six Actions, Targeting Energy Regulation.” For more information on the Executive Orders, see SLWR Feb. 3, 2025, “National Energy Policy: Executive Order Encourages Development of Energy Resources in Alaska.” 

 

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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:

Bloomberg, Oil, natural gas and refined product imports exempted from new US tariffs (April 3, 2025)

Sartain,  Marcel Exception to Louisiana Oilfield Anti-Indemnity Act Clarified (April 3, 2025)

Bloomberg, NewsOil Oil Declines as Trump’s Wide-Ranging Tariffs Threaten Demand (April 3, 2025)

Guarna, EPA’s Attacks on Greenhouse Gas Reduction Fund and the Fate of IRA’s “Green Banks” (April 2, 2025)

Bloomberg, Oil Rally Wavers as Focus Turns to US ‘Liberation Day’ Tariffs (April 2, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Department of Energy Awards Management and Operating (M&O) Contract for Strategic Petroleum Reserve (April 3, 2025)

Energy Department Takes Action to Remove Barriers for Requests to LNG Export Commencement Date Extensions (April 1, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Trump EPA Announces $18 Million in Savings from Federal Leases (April 1, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register March 28 – April 4, 2025)

Environmental Protection Agency

90 FR 14341 Rule: “Air Plan Approval; Connecticut; Approval of State Implementation Plan Requirements for the 2008 Ozone Standard” (April 1, 2025)

90 FR 14414 Rule: “Interim Final Determination To Defer Sanctions, Placer County Air Pollution Control District” (April 2, 2025)

Federal Energy Regulatory Commission

90 FR 14649 Notice: “Southern Star Central Gas Pipeline, Inc.; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (April 3, 2025)

Energy Department

90 FR 14411 Rule: “Rescission of Policy Statement on Export Commencement Deadlines in Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries” (April 2, 2025)

Federal Trade Commission

90 FR 14257 Notice: “Petition of EnCap Investments L.P., et al., To Reopen and Modify Order” (March 31, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.1949 Bill: “To repeal restrictions on the export and import of natural gas.” (March 6, 2025 – Referred to House Committee)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 13 – March 29, 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