February 17, 2025

Shale Law Weekly Review—Week of February 17, 2025

Pipelines: Mountain Valley Pipeline Requests Approval to Build Southgate Extension ⚡
On February 3, 2025, Mountain Valley Pipeline, LLC (MVP) submitted an abbreviated application to the Federal Energy Regulatory Commission (FERC) regarding its Southgate Extension, which will run from Pittsylvania County, Virginia, to Rockingham County, North Carolina. MVP requests that FERC issue an order amending the project’s certificate of public convenience and necessity, which was originally approved by FERC in 2020, but has faced several legal battles over the past four years. MVP specifically requests approval to construct “31.3 miles of 30-inch-diamater natural gas pipeline . . . , four meter stations, and other ancillary facilities . . . required for the safe and reliable operation of the pipeline.” MVP states that it “has significantly reduced the scope from the Certified Project, with fewer water crossings, 43.8 fewer miles of pipe, and the removal of the proposed 28,915 horsepower Lambert Compressor Station.” MVP requests that FERC issue an order by December 31, 2025. For more on MVP-related cases, see the Center’s Natural Gas Pipelines Issue Tracker. 

National Energy Policy: Department of Interior Releases Six Actions, Targeting Energy Regulation
On February 3, 2025, the Department of the Interior (DOI) released five orders relating to the United States energy policy. Order 3417 addresses the “national energy emergency,” and expedites all permitting, leasing, development, production, and more of all energy resources available on Federal Lands, and the Outer Continental Shelf. Order 3418 “[u]nleashes [a]merican [e]nergy, by removing regulations, revoking previous executive orders, [and] encouraging energy exploration…” Order 3419 revokes clean energy and climate change policies, Order 3420 removes any regulations that blocked access to energy development and leasing in the Outer Continental Shelf, and Order 3422 prioritizes the development of Alaska’s Liquid National Gas (LNG), and expedites the permitting and leasing of energy projects in Alaska. All five orders are effective immediately.

National Energy Policy: U.S. Imposes Tariffs on Canada, Mexico and China
On February 1, 2025, the Trump Administration announced the issuance of Executive Orders 14193, 14194, and 14195 placing tariffs on Canada, Mexico, and China. The tariffs, which have since been paused for a 30 day period in regards to Canada and Mexico, impose an additional 10% tariff on Chinese imports, 25% on those from Mexico, and 25% on those from Canada, except Canadian energy resources which will be subject to a 10% tariff. The stated purpose for these orders was that they were a response to the influx of illicit drugs and unauthorized human crossings at U.S. border. According to the announcement, they were issued with authority from International Emergency Economic Powers Act (IEEPA) based on a declared national emergency. Previous to these orders, the administration released the “American First Trade Policy” memorandum outlining a comprehensive review of U.S. trade policy, including trade with the countries noted above, emphasizing an intent to protect domestic interests and growth. According to the U.S. Energy Information Administration (EIA), in 2024, Canada and Mexico represented the top two importers of petroleum to the U.S. at 52% and 11% respectively. Additionally, China is one of the top destinations for U.S. exports of petroleum and coal, and imports 6% of their LNG supply from the U.S. China has since announced retaliatory tariffs on imports of U.S. crude oil, coal and LNG.

Climate Change: New Jersey State Court Dismisses Case Against Oil and Gas Companies for Deceptive Practices
On February 5, 2025, the Superior Court of New Jersey Law Division Mercer County issued an opinion dismissing a lawsuit brought against several major oil and gas companies by the State of New Jersey. Matthew J. Platkin, et. Al. v. Exxon Mobil Corp et. al. No. MER-L-001797-22. The New Jersey Attorney General and two state agencies brought claims against oil and gas companies for deceptive marketing practices by downplaying the effects of climate change caused by oil and gas production and refinement. New Jersey claims these deceptive practices cost the state billions through response to climate related weather events and infrastructure development. The Superior Court dismissed the suit for failure to state a claim, siding with the oil and gas industry’s argument that the claims brought by the state were preempted by federal law, such as the Clean Air Act. The Court cited the interstate and international nature of the emissions involved in the claims as warranting federal preemption. New Jersey has not yet announced whether the ruling will be appealed. For background, see SLWR—Oct. 23, 2022, “Climate Change: New Jersey Files Lawsuit Against Oil and Gas Companies Alleging They Misled Public.”

Public Health: Earthjustice and Other Environmental Organizations File Suit Against Bureau of Land Management, Challenging Drilling on California Public Lands
On February 4, 2025, numerous environmental organizations, including the Center for Biological Diversity and the Wilderness Society, led by Earthjustice, filed suit against the Bureau of Land Management (BLM), alleging that the BLM violated the Clean Air Act, the National Environmental Policy Act (NEPA), the Federal Land Policy and Management Act (FLPMA), and the Mineral Leasing Act (MLA). In their complaint, the plaintiffs alleged seven claims for relief. In the first claim, the plaintiffs alleged a violation of the Clean Air Act, arguing that the BLM failed to properly “calculate emissions before issuing twenty-five drilling permits.” In the second claim, the plaintiffs alleged a violation of NEPA, arguing that the BLM failed to properly provide environmental impact information to the public regarding drilling permits given. In the third claim, the plaintiffs again alleged a NEPA violation, arguing that the BLM did not properly evaluate the potential environmental impacts of the drilling permits. In the fourth claim, the plaintiffs alleged a third NEPA violation, arguing that the BLM failed to consider “alternatives to the proposed action” by only considering the proposed action. In the fifth claim, also involving a NEPA violation, the plaintiffs argued that the BLM failed to conduct “the appropriate level of review” that NEPA requires. In the sixth claim, the plaintiffs alleged a violation of the MLA, arguing that the BLM failed to provide public details of the drilling permits. In the seventh claim, the plaintiffs alleged a violation of the FLPMA, arguing that the BLM did not provide the public with proper notice to provide comments. The plaintiffs requested that the court declare that the BLM violated the four acts, plus the Administrative Procedure Act, “[v]acate the EAs, Decision Records, and Findings of No Significant Impact for these drilling permits,” and prohibit the drilling from occurring.

 

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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, Stocks Climb as Traders Brush Aside Tariff Threats: Markets Wrap (February 10, 2025)

McFarland, Something Completely Different: Lord Edward Coke and the Rule of Law (February 8, 2025)

Barakat, et al, Oil & Gas in 2025: Energy Transition Opportunities (February 13, 2025)

Sartain, Texas Supreme Court Will Review Produced Water Case (February 10, 2025)

Bibikos, At the Well Weekly (v.2.7.2025) (February 12, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Secretary Wright Meets with Crown Prince of Jordan (February 12, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register February 7 – 13, 2025)

Federal Energy Regulatory Commission

90 FR 9540 Notice: “Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline; Columbia Gas Transmission, LLC” (February 13, 2025)

Energy Department

90 FR 9539 Notice: “Notice of Availability of the Draft Supplemental Environmental Impact Statement for the Proposed Venture Global CP2 LNG, LLC and Venture Global CP Express, LLC CP2 LNG and CP Express Pipeline Projects” (February 13, 2025)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.460 Bill: “A bill to promote domestic energy production, to require onshore and offshore oil and natural gas lease sales, and for other purposes” (February 6, 2025 – Read Twice and Referred)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 6 – February 8, 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