Shale Law Weekly Review – Week of August 2, 2021

Oil and Gas Leasing: PA Supreme Court Rules Revenue from Oil and Gas Leases Must be Used for Conservation ⚡
On July 21, 2021, the Supreme Court for the Middle District of Pennsylvania ruled that the Environmental Rights Amendment does not create an avenue that would allow funds from oil and gas development to be transferred to Pennsylvania’s general fund. Pennsylvania Environmental Defense Foundation v. Commonwealth of Pennsylvania, et al. No. 64 MAP 2019. This case was brought by the PA Environmental Defense Foundation which sued after funds from the Oil and Gas Lease Fund were transferred to the general budget. The environmental group argued that revenue from oil and gas leases must be used to conserve and maintain natural resources. The court agreed with the plaintiffs and ordered the funds to be returned, “as a matter of trust law.”

Shale Law/Policy Resources of Interest:

Charles Sartain and Brittany Blakey, Texas Court Addresses Anti-Washout Clause and Rule Against Perpetuities (July 29, 2021).

Charles Sartain, Texas Supreme Court Reverses Subsurface Trespass Judgment (July 26, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

Wolf Administration to Move Forward with Radiological Testing of Leachate at Landfills (July 26, 2021).

U.S. Department of Energy

DOE Announces $42.3 Million and New Industry Partnerships to Decarbonize American Manufacturing (July 29, 2021).

DOE Awards $60 Million to Accelerate Advancements in Zero-Emissions Vehicles (July 28, 2021).

DOE Announces New $60 Million Investment to Increase Energy Efficiency in Manufacturing (July 26, 2021).

U.S. Environmental Protection Agency

EPA and Army Announce Next Steps for Crafting Enduring Definition of Waters of the United States (July 30, 2021).

EPA Releases Preliminary Data for 2020 Toxics Release Inventory Reporting, Including First Ever Reporting on PFAS (July 29, 2021).

EPA Clean Air Act Settlement Addresses Engine Emissions from Vermont Company (July 28, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 31—July 31, 2021)

51 Pa.B. 4062 Proposed Rulemaking “Water Quality Standards: Dunbar Creek et al. Stream Redesignations.”

Pennsylvania Legislature

HB 1740 “An Act providing for power plant host community benefit agreements between municipalities and owners of certain electric generating facilities, for power plant host community impact fees paid by affected facilities and fee uses; establishing public participation requirements; and providing for administrative fees and for duties of the Department of Environmental Protection.” Referred to Environmental Resources and Energy [House] (July 30, 2021).

SB 15 “An Act amending the act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air Pollution Control Act, further providing for definitions, for fees and for disposition of fees, fines and civil penalties, providing for disposition of auction proceeds from CO2 Budget Trading Program, for clean air fund accounts, for the Energy Communities Trust Fund and for Environmental Justice Communities Trust Fund.” Referred to Environmental Resources and Energy [Senate] (July 26, 2021).

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register July 26–July 30, 2021):

Energy Department

86 FR 41029 Notice of Renewal: “Basic Energy Sciences Advisory Committee” (July 30, 2021).

Federal Energy Regulatory Commission [Note: SLWR No Longer Contains Combined Filings]

86 FR 40820 Notice: “Atlantic Coast Pipeline, LLC, Eastern Gas Transmission and Storage, Inc.; Notice of Availability of the Draft Supplemental Environmental Impact Statement for the Proposed Atlantic Coast Pipeline Restoration Project and Supply Header Restoration Project” (July 29, 2021).

86 FR 40822 Notice: “Columbia Gas Transmission, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (July 29, 2021).

86 FR 40234 Final Rule: “National Oil and Hazardous Substances Pollution Contingency Plan; Monitoring Requirements for Use of Dispersants and Other Chemicals” (July 27, 2021).

International Trade Administration

86 FR 41015 Notice: “Certain Oil Country Tubular Goods from the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2018-2019″ (July 30, 2021).

House Energy and Commerce Committee Actions:

H.R.4891 “To require the Secretary of Energy to establish a net-negative carbon dioxide baseload power development and commercialization program, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on Science, Space, and Technology. . . (July 30, 2021).

H.R.4872 “To require the Secretary of Energy to provide rebates for the installation of zero-emission technologies in single-family homes and multifamily buildings, and for other purposes.” Referred to the House Committee on Energy and Commerce (July 30, 2021).

H.R.4774 “To amend the Natural Gas Act with respect to the rehearing process, and for other purposes.” Referred to the House Committee on Energy and Commerce (July 28, 2021).

Senate Energy and Natural Resources Committee:

S.2561 “A bill to amend the Forest and Rangeland Renewable Resources Planning Act of 1974 and the Federal Land Policy and Management Act of 1976 to provide that a land resource management plan or land use plan approved, amended, or revised under those Acts shall not be considered to be a continuing Federal agency action or constitute a discretionary Federal involvement or control for a distinct Federal purpose, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (July 29, 2021).

S.2468 “A bill to amend the Gulf of Mexico Energy Security Act of 2006 to extend the moratorium on drilling off the coasts of the States of Florida, Georgia, and South Carolina, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (July 26, 2021).

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks July 26–July 30, 2021:

US, Germany Strike Deal to End Tensions Over Nord Stream 2 Gas Pipeline, Oil & Gas Journal

Energy Transfer Expects to Finish Mariner East 2 Pipeline in Q3, Shale Gas Reporter (Farm and Dairy)

Defending the U.S. Electric Grid Against Cyber Threats, House Committee on Oversight and Reform, Subcommittee on National Security Hearing

Oil Slips With Spread of Delta Variant Crimping Demand Outlook, Bloomberg

Natural Gas Hits 31-Month U.S. High as Heat Adds to Supply Worry, Bloomberg

Haynesville Production Surge Looms as Drilling, Well Completions Accelerate, S&P Global Platts

Union Co. Farmer Sues ODA Over Pipeline on Preserved Farmland, Farm and Dairy

Shale Gas Production Flat in May but Up 7% YOY, S&P Global Platts

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Written by:
Noah Gochnauer, Research Assistant
Audry Thompson, Research Assistant
Jackie Schweichler, Staff Attorney