February 11, 2025

Shale Law Weekly Review—Week of February 10, 2025

Pipelines: FERC Issues Order on Remand Reinstating Certificate and Abandonment Authorization to Transcontinental Gas Pipe Line Company ⚡
On January 24, 2025, the Federal Energy Regulatory Commission (FERC) issued an order reinstating the Transcontinental Gas Pipe Line Company’s (Transco) “certificate and abandonment authority . . . for the REAE Project.” The order, which detailed that the issue was on remand from the D.C. Circuit Court, found that the Regional Energy Access Expansion Project (REAE Project) was needed and “that the benefits outweigh the adverse impacts.” In its reasoning, FERC determined that there was a need for the REAE Project due to the whole project being “subscribed under precedent agreements” and that the project would help New Jersey LDC “meet their projected design day requirements.” Additionally, FERC determined that their look into the REAE Project’s potential effects on climate change and emissions was satisfactory under the obligations under the National Environmental Policy Act (NEPA). As such, finding that the REAE Project’s benefits outweighed its costs, FERC reinstated the project’s authorization.

National Energy Policy: DOI Pauses Renewable Energy Authorizations for Offshore and Public Land Projects
On January 20, 2025, the Department of the Interior (DOI) issued an order pausing approval of renewable energy projects offshore and on federally owned lands. The pause is to stay in effect for 60 days, unless revoked or amended, and will affect leases and amendments, right of way approvals and amendments, contracts, and any other government authorizations needed for renewable development. The order will not affect existing operations and leases, nor approvals necessary to avoid adverse impacts to health, safety, public lands and mineral resources. The DOI pause was issued the same day that the White House issued executive orders declaring a national energy emergency, requiring agencies to identify burdens imposed on domestic energy resource development, and prioritizing oil and gas development in Alaska. For background on these executive orders, see SLWR – Feb. 3, 2025 “LNG Exports: Department of Energy Lifts LNG Export Pause” and “National Energy Policy: Executive Order Encourages Development of Energy Resources in Alaska.” 

Municipal Regulation: Range Resources Challenges New Cecil Township Zoning Ordinance
On December 26, 2024, Range Resources filed a challenge to Cecil Township’s new zoning ordinance, claiming it is unfair and exclusionary. Specifically, Range challenges the setback limit, which was increased from 500 feet to 2,500 feet for protected structures (occupied residences, commercial businesses, schools, etc.), and claims the ordinance “prohibits and restricts” Range’s ability to use or develop land in which it has an interest. The case will be heard in the Washington County Court of Common Pleas. For more information on the Cecil Township Zoning Ordinance, see SLWR – Nov. 18, 2024 “Municipal Regulation: Cecil Township Amends Oil and Gas Zoning Ordinance.” 

State Regulation: U.S. Chamber of Commerce and API Challenge Vermont’s Climate Superfund Act
On December 30, 2024, the U.S. Chamber of Commerce and the American Petroleum Institute filed a complaint in the U.S. District Court for the District of Vermont seeking declaratory and injunctive relief from Vermont’s Climate Superfund Act (Superfund Act). Chamber of Commerce of the United States of America v. Moore No. 2:24-cv-01513. The Superfund Act imposes strict liability on companies that extracted fossil fuels or refined crude oil between January 1, 2000, and December 31, 2019, for damages caused by greenhouse gas emissions in Vermont. Plaintiffs allege the Superfund Act is federally preempted, as it imposes liability for emissions that do not occur in Vermont but eventually cause damage within the state. Plaintiffs first argue that the Constitution’s tenants of federalism require that these issues be governed uniformly at the federal level, as opposed to the state level. Plaintiffs then argue that the Clean Air Act only allows lawsuits related to emissions to be brought based on state claims against emitters located within the state, not interstate. Vermont has not yet filed a response to the complaint. Similar states have also passed climate superfund legislation, see SLWR—Jan. 13, 2025 “Climate Change: New York Governor Signs Climate Superfund Act into Law.”

 

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CENTER PROGRAMS & RESOURCES

Quarterly Dairy Legal Webinar series – 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.

Brook Duer Presents at “Conservation Cornerstone” Training Series – Center Staff Attorney will present at Penn State Extension Ag Conservation Assistance Program’s “Conservation Cornerstone” training series.

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:

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 Rises as Trump Slaps Tariffs on Biggest Crude Supplier to US (February 3, 2025)

Barry, Burger, Can Plaintiffs Challenge President Trump’s “10-to-1” Deregulation Order? A Look Back at Lawsuits Challenging the Order’s Predecessor (February 4, 2025)

Bredthauer, et al, Oil & Gas in 2025: M&A and Joint Venture Activity (February 5, 2025)

Sartain, What Will the Texas Supreme Court Say About Allocation and PSA Wells? (February 5, 2025)

Bloomberg, Oil Falls After Trump Delays Canada, Mexico Tariffs by a Month (February 4, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Secretary Chris Wright Announces Key Senior Staff Appointments (February 6, 2025)

Secretary Wright Acts to “Unleash Golden Era of American Energy Dominance” (February 5, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register November 29- December 6, 2024)

Environmental Protection Agency

90 FR 9010 Rule: “Delay of Effective Date for 2 Final Regulations Published by the Environmental Protection Agency Between December 11, 2024, and January 6, 2025” (February 5. 2025)

Federal Energy Regulatory Commission

90 FR 9078 Notice: “Florida Gas Transmission Company, LLC: Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed South Central Louisiana Project” (February 6, 2025)

Energy Department

90 FR 9018 Notice: “2024 LNG Export Study: Energy, Economic, and Environmental Assessment of U.S. LNG Exports; Extension of Comment Period” (February 5, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.J.Res.35  Resolution: “Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to “Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions”” (February 4, 2025 – Referred)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 4 – January 25, 2025)

Department of Environmental Protection

Pennsylvania Public Utility Commission

55 Pa.B. 1208 “Service of Notice of Damage Prevention Formal Complaints” (February 1, 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