Shale Law Weekly Review—Week of December 5, 2022

Methane Emissions: DOI and BLM Announce Proposed Rule to Limit Methane Emissions on Public Lands ⚡
On November 28, 2022, the U.S. Department of the Interior announced a proposed rule which would place limits on gas flaring on public lands, require technology upgrades where economically feasible, and require leak detection and waste minimization plans by operators. The proposed rule would also compensate the federal government or Indian mineral owners when gas is used for excessive flaring.

GHG Emissions: PA Approves Emergency Rule Limiting VOC Emissions
On November 28, 2022, the Pennsylvania Environmental Quality Board announced that it had adopted an emergency rule, not yet published in the Pennsylvania Bulletin, which would limit volatile organic compound (VOC) emissions and methane emissions from oil and gas sources. The limitations are based on reasonably available control technologies in line with the EPA’s recommendations. According to the announcement, Pennsylvania has until December 16, 2022 to submit a State Implementation Plan to the EPA, under threat of losing highway funding.

State Regulation: Environmental Groups Appeal Extension of Air Pollution Permit for Natural Gas Power Plant in PA
On November 22, 2022, environmental groups, including the Center for Biological Diversity, announced they had filed a Notice of Appeal in response to the Pennsylvania Department of Environmental Protection (DEP) extending an air pollution permit for the construction of the Renovo Energy Center along the West Branch Susquehanna River. The groups argued the extension is illegal, arguing that the permit it extends is illegal, including accusations of abuse of discretion, improperly narrow analyses, and so on. The environmental organizations included similar arguments in their ongoing appeal against the issuance of the initial plan approval issued by DEP.

Oil & Gas Leasing: DOI to Auction Cook Inlet for Oil & Gas Leasing
On November 28, 2022, the U.S. Department of the Interior and Bureau of Ocean Energy Management (BOEM) announced that they would hold an auction for more than 958,000 acres in Alaska’s Cook Inlet Planning Area, following BOEM’s October publication of an environmental impact analysis for the area. The auction will close on December 29, 2022.

Water Quality: Coterra Pleads No Contest to Charges of Water Supply Contamination
On November 29, 2022, the Pennsylvania Office of the Attorney General announced that it had reached a settlement with Coterra Energy on charges of violating Pennsylvania state environmental laws and polluting the Dimock, Susquehanna County water supply. Coterra, previously Cabot Oil and Gas, is to pay over $16 million for a new water supply in Susquehanna County.

 

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Plunges to Lowest Since 2021 as China Unrest Rattles Market (November 28, 2022)

Bloomberg, UAE Plans Global Energy Push With $150 Billion of Spending (November 29, 2022)

Sartain, Louisiana Environmental Citizen Suit Survives Exceptions (November 30, 2022)

Hug & Johnson, FERC Proposes to Update NERC Reliability Standards for Renewable Resources and Energy Storage (November 30, 2022)

Markowitz & Treanor, Summary of the Department of Interior’s New Methane Rule (December 1, 2022)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks November 26– December 2, 2022:

US to Auction Almost 1 Million Acres Off Alaska for Oil Drilling (Bloomberg)

Oil companies urge Supreme Court to review climate case (E&E News)

Biden admin proposes methane rules for public lands (E&E News)

Germany to get new Qatari LNG flows through QatarEnergy, ConocoPhillips deal (Reuters)

Midwest transmission project goes on trial again in Illinois (E&E News)

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FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

Biden- Harris Administration Launches $80 Million Program for Energy Upgrades in Public Schools (November 29, 2022)

U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA Takes Next Steps in Renewable Fuel Standard Program for 2023-25 (December 1, 2022)

FEDERAL EXECUTIVE AGENCIES (Federal Register November 26–December 2, 2022):

Energy Department

87 FR 73259: Proposed Rule, Comments Close 1/30/23: “Energy Conservation Program: Energy Conservation Standards for Oil, Electric, and Weatherized Gas Consumer Furnaces” (November 29, 2022)

Environmental Protection Agency

87 FR 73956: Rule: “Renewable Fuel Standard Program: Canola Oil Pathways to Renewable Diesel, Jet Fuel, Naphtha, Liquefied Petroleum Gas, and Heating Oil” (December 2, 2022)

87 FR 74060: Proposed Rule, Comments Close 1/3/22: “Air Plan Conditional Approval; Colorado; Revisions to Regulation Number 7 and RACT Requirements for 2008 8-Hour Ozone Standard for the Denver Metro/North Front Range Nonattainment Area” (December 2, 2022)

87 FR 72991: Notice, Comments Close 12/28/22: “Information Collection Request Submitted to OMB for Review and Approval; Comment Request; NESHAP for Oil and Natural Gas Production (Renewal)” (November 28, 2022)

87 FR 72891: Rule: “Community Right-to-Know; Adopting 2022 North American Industry Classification System (NAICS) Codes for Toxics Release Inventory (TRI) Reporting” (November 28, 2022)

Pipeline and Hazardous Materials Safety Administration

87 FR 73395: Notice: “Pipeline Safety: Informational Public Meeting Addressing Multiple Safety Topics Including Methane Emission Reduction, Safety Bulletins, and NTSB Recommendations” (November 29, 2022)

Bureau of Land Management

87 FR 73588: Proposed Rule, Comments Close 1/30/22: “Waste Prevention, Production Subject to Royalties, and Resource Conservation” (November 30, 2022)

Ocean Energy Management Bureau

87 FR 73322: Notice: “Alaska Outer Continental Shelf, Cook Inlet Planning Area, Oil and Gas Lease Sale 258” (November 29, 2022)

87 FR 73323: Notice: “Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 258” (November 29, 2022)

87 FR 73032: Notice, Comments Close 12/28/22: “Agency Information Collection Activities; Submission to the Office of Management and Budget; Oil and Gas Production Requirements in the Outer Continental Shelf” (November 28, 2022)

Other Agencies

87 FR 74128: Notice: “Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings” (December 2, 2022)

87 FR 73527: Proposed Rule, Comments Close 1/17/23: “Enhancing Surface Cyber Risk Management” (November 30, 2022)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.4651 “A bill to amend the Energy Policy and Conservation Act to require the Secretary of Energy to stipulate, as a condition on the sale at auction of any petroleum products from the Strategic Petroleum Reserve, that the petroleum products not be exported to certain countries, to prohibit such sales to certain state-owned entities, and for other purposes.” Committee on Energy and Natural Resources. Hearings held. (December 1, 2022)

S.4515 “No Emergency Crude Oil for Foreign Adversaries Act” Committee on Energy and Natural Resources. Hearings held. (December 1, 2022)

S.3152 “A bill to amend the Energy Policy Act of 2005 to disqualify certain borrowers from receiving a guarantee for a project, and for other purposes.” Committee on Energy and Natural Resources. Hearings held. (December 1, 2022)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

EQB Adopts Emergency Air Quality Regulation for Existing Conventional Oil and Gas Sources (November 30, 2022)

DEP Launches $12.7 Million Initiative to Electrify Truck Fleets for Cleaner Air (December 1, 2022)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 52, No. 49 December 3, 2022)

 

Written by:
Ethan Durand, Research Assistant
Kendal Ashman, Research Assistant
Jackie Schweichler, Staff Attorney