December 18, 2023

Shale Law Weekly Review—Week of December 18, 2023

Methane Emissions: EPA Publishes Final Rule Aimed at Cutting Methane Emissions ⚡
On December 6, 2023, the Environmental Protection Agency (EPA) published a final rule with a stated aim to “reduce emissions of methane and other harmful air pollution from oil and natural gas operations” in the Federal Register. Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review 87 FR 74702. The EPA highlighted methane and volatile organic compounds (VOCs) as two of the emissions types targeted by the new guidelines.  Additionally, the EPA noted that the rule “will phase out routine flaring of natural gas from new oil wells, require all well sites and compressor stations to be routinely monitored for leaks, and provide companies greater flexibility to use innovative and cost-effective methane detection technologies.” The Rule outlines a two-year phase-out for routine flaring. The Rule classifies methane as a super pollutant and estimates reductions of nearly “58 million tons of methane emissions from 2024 to 2038.” The Rule also establishes a “super-emitter” program, through which the EPA will certify third parties to monitor well sites for large leaks known as “super-emitters.” Another feature of the Rule is “Emissions Guidelines” directed toward states as they develop and submit their own plans to reduce emissions. More information on the Final Rule, including fact sheets and overviews, is available on the EPA website and in their press release.

Water Quality: States Ask Louisiana Court to Vacate New CWA Rule With Expanded Permit Powers
On Monday, December 4, 2023, eleven states and three energy companies filed a lawsuit in Louisiana’s Western District Court challenging a 2023 revision to the Clean Water Act (CWA) that authorizes states and certain tribes to block proposed projects that “may result in a discharge into jurisdictional navigable waters.” More specifically, the plaintiffs seek to void the changes to CWA’s Section 401 certification process, which, since going into effect in November, has broadened the power of states and tribes to block noncompliant projects, like carbon capture facilities and pipelines, from being started. The plaintiffs argue that the 2023 Rule “uses a ‘cooperative federalism’ approach to achieve its aims,” which carves out “complementary roles for federal agencies on the one hand” and states and tribes on the other. These changes, according to the plaintiffs, eliminate the “clarity and consistency of the 2020 Rule” and grant the states and tribes certifying authority that exceeds the limitations set forth in the CWA.

 

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Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

DEP Plugs 132 Abandoned Conventional Oil & Gas Wells So Far; DEP Issued 499 NOVs For New Conventional Well Abandonments So Far In 2023 (PA Environment Digest)

Kinder Morgan’s Permian Highway pipeline expansion in service (Oil & Gas Journal)

Massachusetts Just Took a Big Step Away from Natural Gas. Which States Might Follow? (Inside Climate News)

EIA revises down crude oil price forecasts for 2024 (Oil & Gas Journal)

Occidental inks $12 billion CrownRock deal to build scale in Midland basin (Oil & Gas Journal)

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

Oil & Gas Law & Policy Resources:

McFarland, Contrasting Philosophies of Lease Construction: Boulder County v. Crestone Peak (Colo. 2023) (December 7, 2023)

Bibikos, At the Well Weekly (v.12.8.2023) (December 8, 2023)

Bloomberg, Oil Is Everywhere at COP28, Vexing Activists Seeking Its Demise (December 9, 2023)

Hanawalt & Field, The SEC’s Final Climate Disclosure Rule Must Respond to Emerging Legal Risks (December 11, 2023)

Bloomberg, Occidental to Buy Oil Driller CrownRock for $10.8 Billion (December 11, 2023)

Sartain, Who is responsible for the negligence of the “company man” on the well? (December 14, 2023)

Akin Gump, 7 Enforcement Predictions For US Export Controls, Sanctions (December 12, 2023)

Assereto & Hanawalt, A Comparative Analysis of the SEC’s Climate Disclosure Proposal (December 15, 2023)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Announces Clean Energy Achievements at COP28 (December 8, 2023)

DOE Launches New Office to Coordinate Critical and Emerging Technology (December 12, 2023)

BIRD Energy to Invest $9.75 Million in Cooperative U.S.-Israel Clean Energy Projects (December 14, 2023)

Interagency Statement by the Agencies Participating in the Sustainable Aviation Fuels Lifecycle Analysis Working Group (December 14, 2023)

Biden-Harris Administration Celebrates Opening of Nation’s First NEVI-Funded EV Charging Stations in Ohio and New York (December 15, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Begins Process to Prioritize Five Chemicals for Risk Evaluation Under Toxic Substances Control Act (December 14, 2023)

EPA Finalizes $585,000 Settlement with Lakeshore Railcar & Tanker Services in East Chicago, Indiana, for Alleged Violations of the Clean Water Act (December 13, 2023)

EPA Settles with Trucking Companies Over Claims of Violation of California Truck and Bus Pollution Rule (December 11, 2023)

Biden-Harris Administration Announces $1 Million to Recruit and Train Pennsylvania Workers for Community Revitalization and Cleanup Projects as Part of Investing in America Agenda (December 8, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register December 9– December 15, 2023)

Environmental Protection Agency

88 FR 86268: Rule: “Dodine; Pesticide Tolerances” (December 13, 2023)

88 FR 86093: Proposed Rule, Comments Close 1/11/24: “Air Plan Approval; California; Ventura County Air Pollution Control District” (December 12, 2023)

88 FR 86094: Proposed Rule, Comments Close 1/11/24: “Outer Continental Shelf Air Regulations; Consistency Update for North Carolina” (December 12, 2023)

Susquehanna River Basin Commission

88 FR 86437: Notice: “Projects Approved for Consumptive Uses of Water” (December 13, 2023)

Safety and Environmental Enforcement Bureau

88 FR 86378: Notice: “Oil and Gas Decommissioning Activities on the Pacific Outer Continental Shelf” (December 13, 2023)

88 FR 86285: Proposed Rule, Comments 12/12/2024: “Bonding Requirements When Filing an Appeal of a Bureau of Safety and Environmental Enforcement Civil Penalty” (December 13, 2023)

Other Agencies

88 FR 85852: Proposed Rule, Comments Close 2/9/24: “Small Business Size Standards: Revised Size Standards Methodology” (December 11, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.6819: “To require the Secretary of Labor and Secretary of Energy to submit a report to Congress on occupations and career paths affected by changes in energy production and critical manufacturing.” Referred to the Committee on Education and the Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (December 14, 2023)

H.R.6813 “To prohibit the Administrator of the Environmental Protection Agency from finalizing, implementing, or enforcing the proposed rule related to revisions to the air emissions reporting requirements, and for other purposes.” Referred to the House Committee on Energy and Commerce. (December 14, 2023)

H.R.6793 “To prohibit further action on the proposed rule entitled “Energy Conservation Program: Energy Conservation Standards for Ceiling Fans”.” Referred to the House Committee on Energy and Commerce. (December 14, 2023)

H.R.6747 “To speed up the deployment of electricity transmission and clean energy, with proper input from affected communities, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Natural Resources, Agriculture, the Judiciary, Transportation and Infrastructure, Financial Services, Oversight and Accountability, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (December 13, 2023)

H.R.6724 “To require a certain percentage of natural gas and crude oil exports be transported on United States-built and United States-flag vessels, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (December 12, 2023)

H.R.5482 “Energy Poverty Prevention and Accountability Act of 2023” Subcommittee Hearings Held. (December 12, 2023)

H.R.6665 “To amend the Internal Revenue Code of 1986 to eliminate certain fuel excise taxes and impose a tax on greenhouse gas emissions to provide revenue for maintaining and building American infrastructure, and for other purposes.” Referred to the Subcommittee on Highways and Transit. (December 11, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3496 “A bill to amend the Energy Policy Act of 2005 to address measuring methane emissions, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (December 13, 2023)

S.1657 “La Paz County Solar Energy and Job Creation Act” Placed on Senate Legislative Calendar under General Orders. Calendar No. 279. (December 12, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP to Hold Public Information Meeting on Permit Application for Noncoal Underground Mine in Washington County (December 11, 2023)

Pennsylvania Reaches Solar Milestone – Can Now Power Residents in a City the Size of Pittsburgh with In-State Solar (December 12, 2023)

DEP Assists in Cleanup of Oil Spill in Penndel Borough (December 14, 2023)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 50—December 16, 2023)

Department of Environmental Protection

53 Pa.B. 7742: Notices: “Applications, Actions and Special Notices”

Pennsylvania Legislature

HB 1476 “An Act providing for reporting requirements for qualifying crypto-asset mining operations and for an impact study; and imposing duties on the Department of Environmental Protection.” Third consideration and final passage [House] (December 13, 2023)

Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Jackie Schweichler, Staff Attorney