February 24, 2025

Shale Law Weekly Review—Week of February 24, 2025

Air Quality: The U.S. Supreme Court Denies Solicitor General’s Motions for Abeyance in Environmental Cases ⚡
On February 6, 2025, the United States Supreme Court ordered that two environmental cases against the EPA would not be granted abeyance (a pause or postponement), which was moved for the Acting Solicitor General. The Supreme Court denied abeyance in Pacificorp, et al. V. EPA, et al, which is a case involving state implementation plans (SIPs) for “interstate transport of ozone.” PacifiCorp, et al., Petitioners vs. Environmental Protection Agency, et al., Docket No. 23-1068 (U.S. Apr 01, 2024). The Supreme Court also denied abeyance in Diamond Alternative Energy, LLC v. EPA, et al., which is a case involving the Clean Air Act and “emission standards for new motor vehicles.” Diamond Alternative Energy, LLC, et al., Petitioners vs. Environmental Protection Agency, et al., Docket No. 24-7 (U.S. Jul 08, 2024).

Oil and Gas Leasing: District Court Grants Partial Default Judgement in Overriding Royalty Dispute
On January 28, 2025, the United States District Court for the Southern District of Ohio partially granted an oil and gas royalty holder’s motion for default judgment. Three Gold Res., LLC v. Energex Power, Inc., No. 2:23-cv-3495, 2025 U.S. Dist. LEXIS 14849 (S.D. Ohio Jan. 28, 2025). Defendant Energex owns over 2,700 oil and gas wells, and plaintiff Three Gold Resources (Three Gold) holds gross overriding royalty interests (ORRIs) in some of those wells. Energex stopped making ORRI payments in November 2022, and Three Gold sued for fraud, breach of contract, breach of implied warranties, theft, and conversion. Three Gold then moved for default judgment. The court granted the motion for the breach of contract claim, as they determined that there was a contract, performance, breach, and loss, and as such Three Gold is entitled to default judgement. However, default judgement for the other claims were dismissed with prejudice. Common law fraud is not recognized under Ohio law, the claim for breach of implied warranties fails, as the complaint fails to state a cause of action, and the theft claim fails, as Three Gold does not identify any independent duty to Energex. Further, the conversion claim fails, as it is based on a property right that arises entirely from contractual rights. However, the court determined a receiver should be appointed to oversee the wells, and to ensure that Energex is complying with the terms of the ORRI.

 

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CENTER PROGRAMS & RESOURCES

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:

The Legal Hour: Vehicles for Forest Land Ownership and Succession – Center Staff Attorney Brook Duer will present “The Legal Hour: Vehicles for Forest Land Ownership and Succession,” the fourth session of a five-part webinar series titled “Land Succession and Estate Planning for Forest Owners,” presented through Penn State Extension.

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, Diamondback Energy announces $4.08 billion acquisition to expand Permian presence (February 18, 2025)

Guarna, Burger, Demystifying President Trump’s “National Energy Emergency” and the Scope of Emergency Authority (February 14, 2025)

Murthy, Student Writing Competition: Marine Carbon Dioxide Removal Law and Policy (February 18, 2025)

McFarland, The Disconnect Season Three (February 19, 2025)

Sartain, How to Work for Free Under a Master Service Agreement (February 17, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Secretary Wright Issues First LNG Export Approval for Commonwealth LNG (February 14, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Administrator Zeldin’s Message to Agency Staff: “It’s Time to Return to the Office” (February 18. 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register February 14 – 20, 2025)

Environmental Protection Agency

90 FR 9844 Rule: “National Emission Standards for Hazardous Air Pollutants: National Perchloroethylene Air Emission Standards for Dry Cleaning Facilities Technology Review” (February 19, 2025)

Federal Energy Regulatory Commission

90 FR 9968 Notice: “National Fuel Gas Supply Corporation; Notice of Availability of the Environmental Assessment for the Proposed Tioga Pathway Project” (February 13, 2025)

90 FR 9718 Notice: “Gulf South Pipeline Company, LLC; Notice of Application and Establishing Intervention Deadline” (February 18, 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)

90 FR 9716 Notice: “Southern LNG Company, L.L.C.; Application for Blanket Authorization To Export Previously Imported Liquefied Natural Gas to Non-Free Trade Agreement Countries on a Short-Term Basis” (February 18, 2025)

National Highway Traffic Safety Administration

90 FR 9655 Notice: “Agency Information Collection Activities; Notice and Request for Comment; Reporting of Information and Documents About Potential Defects” (February 14, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.1412 “To amend the Public Utility Regulatory Policies Act of 1978 to establish additional Federal standards that require electric and gas utilities to transmit to each of its consumers information regarding the consumption of electric energy or gas, and for other purposes.” (February 18, 2025 – Referred to House Committee on Energy)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 7 – February 15, 2025)

Department of Environmental Protection

55 Pa.B. 1602  “Pennsylvania’s PM2.5 Exceptional Event Analyses for June 6, 2023, through June 8, 2023, and June 28, 2023, through July 1, 2023” (February 15, 2025)

Pennsylvania Public Utility Commission

55 Pa.B. 1654″Transfer by Sale” (February 15, 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