February 12, 2024

Shale Law Weekly Review—Week of February 12, 2024

National Energy Policy: DOE Finalizes Efficiency Standards for Cooking Products ⚡
On January 29, 2024, pursuant to a Congressional directive, the Department of Energy (DOE) issued a direct final rule updating energy efficiency standards for residential cooking products. The DOE stated that these updates will reduce household utility costs over a period of thirty years by $1.6 billion, while preserving “consumer-desired features” and improving appliance performance. The updates echo the joint recommendation of a variety of interested parties, including appliance manufacturing, energy efficiency, and consumer advocacy groups. DOE states that most stove models on the market today already meet these new standards and therefore only a small percentage of models will need to meet compliance by January 31, 2028, when the standards take effect. Specifically, the announcement states that “97 percent of gas stove models and 77 percent of smooth electric stove models” are in compliance with these new standards. An outline of the standards submitted with the joint recommendation can be found here.

LNG Exports: White House Announces Pause on LNG Export Authorizations
On January 26, 2024, the White House announced a pause on authorization request for all liquified natural gas (LNG) exports to countries with no active free trade agreement (FTA). The White House indicates that this export pause will remain in effect until the Department of Energy (DOE) completes a public interest evaluation of the current “economic and environmental analyses” used to authorize these exports. This pause will be for both proposed exports and those currently under review. The announcement notes that the current standards used by DOE in their analysis are five years old, and market trends in LNG production dictate the need for reevaluation. Further, the White House highlighted environmental concerns associated with LNG production and distribution, including greenhouse gas emissions. More information on the DOE’s evaluation process can be found on the DOE website.

Hydraulic Fracturing: Pennsylvania DEP Requires Disclosure of Fracturing Chemicals Used by Operators
On Friday, January 26, 2024, the Pennsylvania Department of Environmental Protection (DEP) announced new disclosure requirements for operators of drilling and hydraulic fracturing facilities. As explained in the announcement, operators will now be required to publicly disclose the chemicals used during the processes of drilling, fracturing, and well development. The article notes that operators were already required to submit the details of which chemicals would be used at their facilities upon request by the DEP, but the new policies will require that this be done for all wells during the permitting process and prior to drilling. The announcement also notes that DEP will draft regulations for methane emissions that mirror the Environmental Protection Agency’s newly enacted performance standards for oil and gas sector emitters. Finally, the announcement details an “independent study of unconventional natural gas wells” being conducted by Pennsylvania’s DEP, which will, through the access to CNX Resource’s facilities, allow for air emissions to be monitored “before, during, and after development of the new wells.” In closing, the announcement mentions that the DEP will now provide information on how to conduct proper disclosure to well operators in well permits granted after January 3, 2024.

Pipelines: DOJ Publishes Consent Decree Proposing to Settle Claims Relating to 2022 Oklahoma Oil Spill from Osage Pipeline
On February 6, 2024, the DOJ published a notice of a proposed consent decree with Holly Energy Partners-Operating L.P. and Osage Pipe Line Company LLC under the Clean Water Act, which, if approved by the reviewing court, would settle a complaint about a July 2022 pipeline spill in Oklahoma. 89 Fed. Reg. 8248 (Feb. 6, 2024). The complaint, filed in the Western District of Oklahoma, centers on an oil spill, occurring on July 8, 2022, when the Osage Pipeline ruptured near Cushing, Oklahoma. This rupture resulted in approximately 7110 barrels, or approximately 300 thousand gallons, of crude oil being discharged into the environment. The decree requires a $7.4 million penalty and corrective measures, including environmental cleanup and improvements to pipeline management. The penalties would contribute to the federal Oil Spill Liability Trust Fund. The consent decree is subject to a 30-day comment period, ending on March 7, 2024.

Pipelines: FERC Authorizes Two New Pipelines Projects, the Texas-to-Louisiana Energy Pathway and the Cumberland Project, and Grants One-Year Extension to Northeast Supply Enhancement Project
On January 18, 2024, the Federal Energy Regulatory Commission (FERC) approved two significant natural gas infrastructure projects. The first authorization was for the Texas-to-Louisiana Energy Pathway – an expansion of the Transcontinental Gas Pipe Line – aimed at increasing the gas supply from Texas to Louisiana. Transcontinental Gas Pipe Line Company, LLC, Docket No. CP22-495-000, 186 FERC ¶ 61047 (2024). The second approval was for the construction of the Cumberland Project, a new pipeline by Tennessee Gas Pipeline Company, intended to provide natural gas to a Tennessee Valley Authority power plant. Tennessee Gas Pipeline Company L.L.C., Docket No. CP22-493-000, 186 FERC ¶ 61046 (2024). Additionally, FERC granted a one-year extension for the completion of the Northeast Supply Enhancement project, which aims to transport natural gas to New York City. Transcontinental Gas Pipe Line Company LLC, Docket No. CP17-101-005, 186 FERC ¶ 61038 (2024).

 

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CENTER PROGRAMS & RESOURCES

Understanding Agricultural Law – A free monthly Zoom webinar series for all agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. Recordings and materials from the series, more information, and registration available here.

On Tuesday, February 13, 2024, from 12 noon–1:00 ET, the Center 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, as well as including an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

DOE releases $1.2B funding round for transmission (PoliticoPro)

Carbon capture suffers another blow as legislation fails in first committee (New Mexico Political Report)

EIA: US dry natural gas production down in January on cold weather disruptions (Oil & Gas Journal)

GlobalData Says North America Leads Long Term LNG Deals (Rigzone)

China starts new year with robust imports of crude, LNG, coal and iron ore (Reuters)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Stock Bulls Vindicated as S&P 500 Hits Milestone: Markets Wrap (February 9, 2024)

Bloomberg, Oil Poised for Weekly Gain on Heightened Middle East Tensions (February 9, 2024)

Energy Connects, Production at Nigerian offshore field starts (February 8, 2024)

Sartain, What’s New From the Climate-Alarm Industry? (February 7, 2024)

Rabin, et al., New California Laws Provide Private Right of Action for Unlawful Restrictive Covenants; Require Notice to Affected Employees by February 14, 2024 (February 6, 2024)

Bloomberg, BP-Leased Oil Rig Pipe Drops to Sea Floor in North Atlantic (February 6, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Welcomes New Biden-Harris Appointees and Announces Promotions (February 7, 2024)

U.S. Department of Energy and FEMA Study Finds Puerto Rico Can Achieve 100% Renewable Energy Future By 2050 (February 7, 2024)

Selections Announced: Arctic Energy Ambassadors Program Empowers Sustainable Energy Leadership in Alaska (February 6, 2024)

Biden-Harris Administration Requests Proposals to Expand and Modernize the Nation’s Electric Grid (February 6, 2024)

Biden-Harris Administration Invests Nearly $16 Million to Advance Marine Energy in the U.S. (February 6, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA and DOE announce intent to fund projects to reduce methane emissions from the oil and natural gas sectors as part of President Biden’s Investing in America agenda (February 9, 2024)

EPA finalizes changes to strengthen implementation of Toxic Substances Control Act, improve chemical reviews (February 8, 2024)

EPA finalizes stronger standards for harmful soot pollution, significantly increasing health and clean air protections for families, workers, and communities (February 7, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register February 3 – February 9, 2023)

Environmental Protection Agency

89 FR 9634: Proposed Rule: “Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions” (February 9, 2024)

89 FR 8606: Proposed Rule, Comments Close 4/8/24: “Listing of Specific PFAS as Hazardous Constituents” (February 8, 2024)

Ocean Energy Management Bureau

89 FR 9175: Notice, Comments Close 4/9/24: “Agency Information Collection Activities; Cook Inlet Recreation and Tourism Survey” (February 9, 2024)

89 FR 9598: Proposed Rule: “Semiannual Regulatory Agenda” (February 9, 2024)

Other Agencies

89 FR 9292: Proposed Rule: “Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions-Fall 2023” (February 9, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.7273: “To rescind certain unobligated balances relating to charging and fueling grants and national electric vehicle grants.” Referred to the Committee on Appropriations, and in addition to the Committees on Energy and Commerce, and Transportation and Infrastructure, 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. (February 7, 2024)

H.Con.Res.90: “Condemning the Biden administration for its ban on the issuance of liquefied natural gas export permits.” 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. (February 6, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3753: “A bill to amend the Energy Policy and Conservation Act to provide financial assistance to States to implement expanded energy savings performance contracting programs, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 7, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Begins Emergency Project to Plug Abandoned Gas Wells in Scott Township, Allegheny County (February 5, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 6 – February 10, 2024)

Pennsylvania Legislature

SB 832: “An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, in boards and offices, establishing the Independent Energy Office.” Re-reported as committed [Senate] (February 5, 2024)

 

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