January 8, 2024

Shale Law Weekly Review—Week of January 8, 2024

Pipelines: Michigan Public Services Commission Approves Upgrades to Enbridge Energy LP’s Pipeline in the Straits of Mackinac ⚡
On December 1, 2023, the Michigan Public Services Commission (Commission) announced the approval of an application filed by Enbridge Energy LP to replace segments of their pipeline on the lakebed of the Straits of Mackinac with a single pipeline dug into a tunnel below the lakebed. The Commission noted that the project met a public need to provide customers with fuel by cost-effective and safe means and to preserve the lake’s ecology by avoiding other less safe transportation methods. The Commission also determined that the new single pipeline would be significantly safer than the current dual pipeline system. Approval is conditioned on Enbridge obtaining further state and federally required permits without substantively altering the plans and not allowing third parties to co-locate within the tunnel without the Commission’s approval.

Pipelines: FERC Grants the Southgate Extension Project’s Application for a Three-Year Extension
On December 19, 2023, the Federal Energy Regulatory Commission (FERC) approved an application submitted by Mountain Valley Pipeline, LLC (Mountain Valley) for a three-year extension to finish their Southgate Extension project. The Southgate Extension will have facilities in “Pittsylvania County, Virginia, and Rockingham and Alamance Counties, North Carolina” and will connect with Mountain Valley’s main system in Pittsylvania County. Mountain Valley applied for this extension on June 15, 2023, citing delays in construction of the main system stemming from a series of challenging court decisions that paused construction at various points. FERC found that good cause existed for application’s approval since Mountain Valley acted adequately in seeking the necessary permits despite persistent legal challenges. The extension will provide Mountain Valley with an additional three years to complete the Southgate Extension with the extension deadline falling on June 18, 2026.

International Development: Brazil Joins the Clean Energy Marine Hubs Initiative
On December 10, 2023, Brazil announced at the UN Climate Change Conference (COP 28) that it had joined the Clean Energy Marine Hubs (CEMH), an initiative under the Clean Energy Ministerial, to engage in the transformation of maritime transportation for low-carbon fuel usage. Brazil, along with the United States, is a founding member of the Ministerial since 2010. The CEMH, adopted by the Ministerial in July 2023 at a summit in Goa, India, focuses on establishing networks for the distribution and transportation of low-carbon fuels in the maritime sector. Brazil joins adopting countries such as Canada, Norway, Panama, Uruguay, and the United Arab Emirates. Industry and nongovernmental partners include the Int’l Ass’n of Ports & Harbors, Int’l Chamber of Shipping, Global Ctr. for Maritime Decarbonisation, and Int’l Renewal Energy Agency.

Pipelines: Trans Mountain Pipe Size Variance Application Denied by Canada Energy Regulator
On Wednesday, December 20, 2023, the Canada Energy Regulator (CER) published the supporting reasons for its recent denial of a variance request for the Trans Mountain expansion project. According to a news release from the CER, the pipe size variance application submitted by Trans Mountain in October failed to properly address “concerns about pipeline integrity and related environmental protection impacts.” The originally approved project was designed to construct a 36-inch pipe for 2.3 kilometers by the Fraser River. The variance application sought to reduce the diameter of the pipe to 30 inches “due to challenging horizontal directional drilling (HDD) condition.” In denying the application, the CER explained that Trans Mountain failed to show, among other things, that the material of the newly proposed 30-inch pipe was of a quality adequate to maintain the integrity of the pipeline and to protect the environment from additional impact. In response to this denial, Trans Mountain filed a new variance application on December 14, 2023.

 

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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 February 8–10, 2024, PASA Sustainable Agriculture will hold their 2024 Sustainable Agriculture Conference at the Lancaster County Convention Center in Lancaster, Pennsylvania. On Friday, February 9, 2024, from 4:00–5:00pm, Staff Attorney Brook Duer will present “Protecting Your Farm’s Food Business with Product Liability Insurance” with the Small Business Development Center as part of the conference.

On Tuesday, February 13, 2024, from 12 noon–1:00 ET, 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 

OPEC to Resume Regular Monitoring Meetings Next Month (Rigzone)

NEXTERA CLOSES $1.8BN SALE OF TEXAS GAS PIPELINE PORTFOLIO (Natural Gas World)

Peoples Natural Gas asks regulators for rate increases for all customers (Pittsburgh Post-Gazette)

DEP: Shale Gas Operator Found Responsible For Water Supply Contamination After Investigation Documents Chemical Contamination Spread Across 3 Townships In Greene County (PA Environment Digest)

New Mexico proposes regulations to reuse fracking wastewater (AP)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Advances as Iran Warship Entering Red Sea Increases Tensions (January 2, 2024)

Sartain, Retail Electricity Customers Denied Relief from Uri (January 3, 2024)

McFarland, Point Energy Partners Permian v. MRC Permian Company – did a force majeure event save the lease? (January 3, 2024)

Bloomberg, Exxon Mobil to Take $2.5 Billion Writedown on California Assets (January 4, 2024)

Bloomberg, Texas Frackers Are Facing Water-Disposal Bans After a Slew of Earthquakes (January 4, 2024)

Bloomberg, APA to Buy US Shale Oil Driller Callon Petroleum for $4.5 Billion (January 4, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Announces Up to $70 Million to Strengthen Energy Sector Against Physical and Cyber Hazards (January 4, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Awards $200,000 to Los Angeles Small Businesses to Advance Innovative Environmental Technologies (January 2, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register December 30 – January 5, 2023)

Environmental Protection Agency

89 FR 703: Rule: “State of Louisiana Underground Injection Control Program; Class VI Primacy” (January 5, 2024)

89 FR 178: Proposed Rule, Comments Close 2/1/24: “Air Plan Disapproval; Kansas; Regional Haze” (January 2, 2024)

Land Management Bureau

89 FR 807: Notice, Comments Close 2/20/24: “Notice of Intent To Amend the Resource Management Plan for the Uncompahgre Field Office and Prepare an Associated Environmental Impact Statement, Colorado” (January 5, 2024)

Other Agencies

89 FR 776: Notice, Comments Close 2/5/24: “Agency Information Collection Extension” (January 5, 2024)

89 FR 751: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (January 5, 2024)

89 FR 590: Rule: “Combating Auto Retail Scams Trade Regulation Rule” (January 4, 2024)

89 FR 504: Proposed Rule, Comments Close 2/5/24: “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Maryland Offshore Wind Project Offshore of Maryland” (January 4, 2024)

89 FR 126: Rule: “Endangered and Threatened Species; Designation of Critical Habitat for the Nassau Grouper” (January 2, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.6872 “To require the Secretary of Energy to establish a grant program to support hydrogen-fueled equipment at ports and to conduct a study with the Secretary of Transportation and the Secretary of Homeland Security on the feasibility and safety of using hydrogen-derived fuels, including ammonia, as a shipping fuel.” Referred to the Subcommittee on Coast Guard and Maritime Transportation. (January 2, 2024)

H.R.6747 “Clean Electricity and Transmission Acceleration Act of 2023” Referred to the Subcommittee on Water Resources and Environment. (January 2, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Highlights National Radon Action Month, Provides Free Radon Test Kits (January 2, 2024)

DEP Seeks Project Applications for $5 Million Beaver County Environmental Mitigation Community Fund (January 3, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 1 – January 6, 2024)

Department of Environmental Protection

54 Pa.B.19: Notices: “Applications, Actions and Special Notices”

 

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