July 31, 2023
Shale Law Weekly Review—Week of July 31, 2023
Oil and Gas Leasing: BLM Proposes Oil Drilling Royalty Rate Increase ⚡
On Monday, July 24, 2023, the Bureau of Land Management (BLM) proposed a rule that would raise royalty rates for oil drilling on public lands. According to the BLM, the proposed rule conveys the goals of the Inflation Reduction Act. The rule would increase the royalty rate from 12.5 percent to 16.7 percent. Additionally, the rule would set rental fees for oil and gas leases issued in the next ten years at $3/acre for years 1 and 2, $5/acre for years 3 through 8, and $15/acre year 9 and onward. The proposed rule is open for public comment on the Federal Register until September 22, 2023.
Methane Emissions: Federal Agencies Announce Notice of Intent to Monitor and Reduce Methane Emissions
On Monday July 24, 2023, the Environmental Protection Agency (EPA), U.S. Department of Energy (DOE), and DOE’s National Energy Technology Laboratory (NETL) announced a funding initiative to track and ultimately decrease methane emissions from the oil and gas sector. Up to $350 million in formula funding will be provided to eligible states to identify and “reduce methane emissions from low-producing (marginal) conventional wells.” Additional competitive solicitations for methane mitigation are planned, and technical assistance will be offered to support cost-effective solutions. The Methane Emissions Reduction Program is part of President Biden’s Inflation Reduction Act, providing $1.55 billion in funding for methane emissions reduction and environmental restoration.
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.
July 28, 2023, noon–1 pm (ET). Understanding the Basics of USDA Commodity Programs. (Register)
Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks
Fluor Completes Module Fabrication on LNG Canada Project [Hart Energy]
US Senate votes to block SPR sales to China [Argus Media]
NV Energy to Convert Sole Coal Plant to Natural Gas [Rigzone]
New rule would raise the cost of drilling on public lands [AP]
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Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.
Oil & Gas Law & Policy Resources:
John McFarland, PBEX v. Dorchester — Adverse Possession of a Non-Operating Working Interest (Jul. 18, 2023)
Energy Connects, JERA and ADNOC sign cooperation agreement on clean hydrogen and ammonia (Jul. 20, 2023)
Martin Lockman, A Climate Adaptation Toolkit for the Insurance Industry (Jul. 21, 2023)
David Stinger, G-20 Energy Ministers Meet as Extreme Heat Spurs Climate Focus (Jul. 22, 2023)
Julia Franzeres, Oil slips as traders watch for U.S. Fed decision and rate guidance (Jul. 26, 2023)
Maria Tigre, The Status of Global Climate Litigation: Tracking the Evolution of Legal Action (Jul. 27, 2023)
FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE
U.S. DEPARTMENT OF ENERGY PRESS RELEASES
Biden-Harris Administration Announces $100 Million to Transform Climate Pollution into Sustainable Products (Jul. 24, 2023)
DOE Announces $33 Million to Advance Energy Research Across America (Jul. 26, 2023)
U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES
EPA penalizes Fairbanks company $117,000 for installing ‘defeat devices’ (Jul. 21, 2023)
EPA penalizes Oregon company over $148,000 for installing ‘defeat devices’ (Jul. 21, 2023)
FEDERAL EXECUTIVE AGENCIES (Federal Register Jul. 21 – Jul. 27, 2023)
Environmental Protection Agency
88 FR 47095 Proposed Rule – Comment Period: “Air Approval Plan; Arkansas; Excess Emissions” (Jul. 21, 2023)
88 FR 47029 Rule: “Removal of Title V Emergency Affirmative Defense Provisions From State Operating Permit Programs and Federal Operating Permit Program” (Jul. 21, 2023)
88 FR 47413 Proposed Rule – Comment Period: “Air Plan Approval; Illinois; NAAQS Update” (Jul. 24, 2023)
88 FR 48598 Proposed Rule: “Spring 2023 Unified Agenda of Regulatory and Deregulatory Actions” (Jul. 27, 2023)
Federal Energy Regulatory Commission
88 FR 47138 Notice: “Combined Notice of Filings (Natural gas and Oil Pipeline Refund Report)” (Jul. 21, 2023)
88 FR 47492 Notice: “Port Arthur LNG, LLC; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed Port Arthur Liquified Natural Gas Amendment” (Jul. 24, 2023)
88 FR 48461 Notice: “ANR Pipeline Company; Notice of Availability of the Environmental Assessment for the Proposed; Wisconsin Reliability Project” (Jul. 27, 2023)
Energy Department
88 FR 48544 Proposed Rule: “Unified Agenda of Federal Regulatory and Deregulatory Actions” (Jul. 27, 2023)
U.S. Army Corps of Engineers
Land Management Bureau
88 FR 47562 Proposed Rule – Comment Period: “Fluid Mineral Leases and Leasing Process” (Jul. 24, 2023)
Natural Resources Revenue Office
88 FR 47003 Rule: “Partial Repeal of Consolidated Federal Oil & Gas and Federal & Indian Coal Reform” (Jul. 21, 2023)
U.S. HOUSE ENERGY AND COMMERCE COMMITTEE
H.R.4859 “To amend the Energy Policy and Conservation Act to direct the Secretary of Energy to submit to Congress a report containing an assessment of any physical or cybersecurity incidents to a storage facility or a related facility of the Strategic Petroleum Reserve.” Referred to the House Committee on Energy and Commerce. (Jul. 25, 2023)
U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE
S.2480 “A bill to require the Federal Energy Regulatory Commission to promulgate regulations with respect to regional and interregional transmission planning, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (Jul. 25, 2023)
STATE ACTIONS—EXECUTIVE & LEGISLATIVE
PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 27—Jul. 22, 2023)
Department of Envrionmental Protection
53 Pa.B. 3837 Notice: “APPLICATIONS FOR NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITS AND WATER QUALITY MANAGEMENT (WQM) PERMITS UNDER THE CLEAN STREAMS LAW AND FEDERAL CLEAN WATER ACT”
Governor’s Office
53 Pa.B. 3905 Notice: “Regulatory Agenda”
Pennsylvania Legislature
SB 198 “An Act amending the act of July 13, 1988 (P.L.530, No.94), known as the Environmental Hearing Board Act, further providing for definitions and for jurisdiction.”
Referred to ENVIRONMENTAL RESOURCES AND ENERGY (Jun. 22, 2023).
Written By:
Lonzie Helms, Research Assistant
Mary Johnson, Research Assistant
Josh Narey, Research Assistant
Jackie Schweichler, Staff Attorney
