February 3, 2025

Shale Law Weekly Review—Week of February 3, 2025

LNG Infrastructure: D.C. Circuit Court of Appeals Vacates PHMSA’s Rule on LNG Rail Transportation ⚡
On January 17, 2025, the Court of Appeals for the District of Columbia vacated the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) rule that allowed LNG rail transportation without a permit. Sierra Club, et al v. DOT, et al, Docket No. 20-01317 (D.C. Cir. Aug 18, 2020). The petitioners argued that PHMSA was required to prepare an environmental impact statement (EIS) in order to comply with the National Environmental Policy Act (NEPA). The court agreed with the petitioner’s assertion, finding that the PHMSA’s failure to produce an EIS was arbitrary and capricious. The court explained that NEPA requires an EIS when an agency proposes a “major Federal action significantly affecting the quality of the human environment.” In finding that the PHMSA’s decision was arbitrary and capricious, the court reasoned that the PHMSA’s “consideration of the probability of a rail accident involving LNG tank cars was demonstrably inadequate” and that an accident involving LNG tank cars “could be dire, if not cataclysmic.” For those reasons, the court vacated the rule and remanded to PHMSA.

LNG Exports: Department of Energy Lifts LNG Export Pause
On January 21, 2025, the United States Department of Energy announced it would be ending the liquified natural gas (LNG) pause. This allows the Office of Fossil Energy and Carbon Management (FECM) to consider applications to export LNG to countries with which the United States has a free trade agreement (FTA). This announcement comes the day after the White House issued an executive order, titled “Unleashing American Energy,” which encourages energy exploration, and forced agencies to identify actions that “impose an undue burden on the identification, development, or use of domestic energy resources — with particular attention to oil, natural gas, coal, hydropower, biofuels, critical mineral, and nuclear energy resources.”

National Energy Policy: Executive Order Encourages Development of Energy Resources in Alaska
On January 20, 2025, the White House issued an executive order titled “Unleashing Alaska’s Extraordinary Resource Potential.” This order aims to maximize the production of natural resources in Alaska, accelerate the permitting and leasing processes for energy projects in Alaska, and capitalize on Alaska’s liquified natural gas potential. Specifically, the order calls for all agencies to issue the necessary permits for pipelines and other transporting/exporting infrastructure, begin development of the Arctic National Wildlife Refuge, and to fully develop the National Petroleum Reserve in Alaska. For more information on the Alaska Wildlife Refuge, see SLWR – Jan. 20, 2025, “Public Lands: Alaska Files a Claim Against the Department of the Interior Over the Recent Oil and Gas Lease Sales in the Arctic Refuge.” 

Pipelines: PHMSA Issues New Emissions Detection Requirements for Natural Gas Pipelines
On January 17, 2025, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a final rule requiring natural gas pipeline operators to update leak detection programs in order to enhance the safety of pipelines. Pipeline operators will now need to utilize commercial advanced leak detection technologies, increase the frequency of pipeline surveys, reduce both unintentional and intentional emissions, and consider installation of methane capture equipment. The rule revises the reporting minimum threshold for leaks, as well as establishes timeframes for repair of leaks that pose risks to the public or the environment. According to PHMSA’s announcement, these new standards are expected to reduce natural gas pipeline emissions by 500,000 metric tons and net $1.5 billion in annual public benefits. This new rule was implemented pursuant to a statutory requirement imposed on the agency by the PIPES Act of 2020 and was part of the Biden Administration’s U.S. Methane Emissions Reduction Action Plan, which aimed to reduce methane emissions while also promoting technological innovation. Publication in the Federal Register is forthcoming.

LNG Exports: DOE Extend Public Comment Deadline on 2024 LNG Export Study
On January 21, 2025, the Department of Energy (DOE) extended the deadline for public comment on the 2024 LNG Export Study: Energy, Economic, and Environmental Assessment of U.S. LNG Exports to March 20, 2025. DOE notes this extension will allow more time for stakeholder input. This announcement came in concert with the announcement that the pause on LNG exports would be lifted. For background information on the study, see SLWR—Jan. 6, 2025 “LNG Exports: DOE Releases Updated Study on LNG Exports and Invites Public Comment.”

National Energy Policy: Texas Sues Biden Administration Over Withdrawal of Federal Coastline Waters from Oil and Gas Leasing
On January 20, 2025, the State of Texas and W&T Offshore, Inc. filed a complaint in the U.S. District Court for the Eastern District of Texas challenging the outgoing Biden Administration over its memoranda banning new oil and gas leasing of over 625 million acres along the Atlantic and Pacific coastlines, the eastern Gulf of Mexico, and additional parts of the Northern Berring Sea in Alaska; none of these Outer Continental Shelf (OCS) lands were under any existing leases. In a concurrent announcement, Texas Attorney General claims the withdrawal was an “unlawful attempt to indefinitely extend the withdrawal of some offshore drilling sites under the Outer Continental Shelf Lands Act.” The complaint further argues that President Biden “exceeded his statutory authority,” and requests that the OCS lands be made available for development immediately. The President has authority under section 12(a) of the Outer Continental Shelf Lands Act, 43 U.S.C. 1341(a) to withdraw U.S. ocean lands from future oil and natural gas leasing. For background on the withdrawals, SLWR—Jan. 20, 2025, “President Biden Issues Memorandum U.S. Protecting Coastline from Oil and Gas Leasing.”

 

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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.

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 Steadies as Traders Try to Make Sense of Trump’s Tariff Talk (January 28, 2025)

Turner, Webb, UPDATED: OMB’s Pause on Climate Grants, Loans, and Other Financial Assistance: Legal Issues and Next Steps for Federal Awardees (January 28, 2025)

McFarland, Opielas Settle Suits Against Magnolia on Allocation and PSA Wells (January 28, 2025)

Sartain, Louisiana Oilfield Anti-Indemnity Act Nullifies an Indemnity Obligation (January 27, 2025)

Sartain, Arbitration Result Can Be “Good”, “Bad” or “Ugly” (January 30, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

ICYMI: What Energy Experts are Saying About President Trump Restoring LNG Exports (January 24, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Lee M. Zeldin Sworn in as 17th EPA Administrator (January 30, 2025)

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

Environmental Protection Agency

90 FR 8254 Rule: “Delay of Effective Date for 4 Final Regulations Published by the Environmental Protection Agency Between November 29, 2024, and December 31, 2024” (January 28. 2025)

Federal Energy Regulatory Commission

90 FR 8392 Notice: “CenterPoint Energy Resource Corporation; Delta North Louisiana Gas Company, LLC; Notice of Application and Establishing Intervention Deadline” (January 29, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.Res.57  Resolution: “Recognizing the benefits of natural gas to the United States economy and environment, and recognizing natural gas as an affordable and “green” energy..” (January 23, 2025 – Referred)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

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

Department of Environmental Protection

55 Pa.B. 887 “Proposed Designation Recommendations for the 2024 Primary Annual Fine Particulate Matter (PM2.5) National Ambient Air Quality Standard; Public Hearing” (January 25. 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