July 7, 2025

Shale Law Weekly Review—Week of July 7, 2025

Pipelines: FERC Issues Waivers and Proposes Rule Changes to Expedite Pipeline Development ⚡
On June 18, 2025, the Federal Energy Regulatory Commission (FERC) announced a set of regulatory changes aimed at facilitating the construction of natural gas infrastructure. These regulatory adjustments include the following:

Most notably, these changes include a temporary waiver of Order No. 871 and the beginning of a process to permanently eliminate that rule, which limits construction when rehearing requests are filed. FERC also raised cost thresholds for certain activities that natural gas companies can undertake without case-specific approval, allowing greater flexibility in modifying or building pipelines. According to FERC, these actions are intended to help meet growing electricity demand by accelerating the development of infrastructure needed to support natural gas-powered generation. For more information on Order No. 871, see SLWR – Feb. 8, 2021, “National Energy Policy: FERC Allows Additional Briefing on Order Limiting Construction Activities Under Natural Gas Act Authorizations.”

PA Impact Fee: PUC Announces $164 Million in 2024 Natural Gas Impact Fee Distributions
On June 23, 2025, The Pennsylvania Public Utility Commission (PUC) announced the allocation of over $164 million in natural gas impact fees collected for the 2024 reporting year. The revenue, collected under Act 13 of 2012, is distributed among local governments, state agencies, and environmental programs to support infrastructure and development related to natural gas operations. Since the inception of the program, total impact fee distributions have surpassed $2.88 billion statewide. According to the data provided by the PUC, the 2024 amount reflects a decline of about $15 million from the previous year, largely due to a decrease in newly drilled wells.

Municipal Regulation: Commonwealth Court Overturns Natural Gas Well Pad Approval
On June 13, 2025, the Commonwealth Court of Pennsylvania reversed the Court of Common Pleas of Allegheny County approval of a shale gas well and infrastructure in Elizabeth Township. Protect Elizabeth Twp. v. Elizabeth Twp., No. 830 C.D. 2024. In May of 2022, Olympus Energy sought to drill and operate a natural gas well pad on a 187-acre plot of land. On the same day, Hyperion, a subsidiary of Olympus, filed to create a pipeline and an interconnect pad in connection with the natural gas well pad. After a series of Board hearings in Elizabeth Township, the Board concluded both companies met their burden of proving the projects would not be detrimental to the public welfare and thereby affirmed the projects. The Court of Common Pleas affirmed the approval by the Board. Friends of Elizabeth Township appealed the judgment of the Court of Common Pleas, arguing that the Board failed to consider the entirety of the zoning ordinances. The Commonwealth Court of Pennsylvania reversed the approval by the Court of Common Pleas, reasoning that zoning ordinance applies to principal structures and oil and gas conditional uses, something the Board failed to recognize. As such, the zoning ordinance prohibits the well pads “from being located on the proposed lots as the lots contain existing single-family dwellings.”

National Energy Policy: Supreme Court Issues Ruling in EPA Case for Renewable Fuel Standards Small Refinery Exemption
On June 18, 2025, the U.S. Supreme Court ruled that a challenge to the small refinery exception of the Clean Air Act must be heard in the D.C. Circuit Court of Appeals. EPA v. Calumet Shreveport Refin., L.L.C., 222 L.Ed.2d 230 (U.S. 2025). The Clean Air Act establishes the Renewable Fuel Standards (RFS), which require refineries to blend a certain amount of renewable fuels into their transportation fuels. However, the RFS contained a small refinery exemption, which allowed any refinery producing 75,000 barrels yearly an exemption until 2011, which could be extended for small refineries facing “economic hardships.” Partly in response to the Supreme Court’s 2021 decision in HollyFrontier (HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Assn. 594 U. S. 382) the Environmental Protection Agency (EPA) denied petitions from 105 operations requesting the small refinery exemption. These denials were challenged by the refineries in various circuit courts. Most of the circuit courts moved the action to the D.C. Circuit, but the Fifth circuit refused to do  so. The EPA argued that the denials were only reviewable in the D.C. Circuit. The Supreme Court agreed with the EPA and ruled that under the Clean Air Act’s venue provision, 42 U.S.C. §7607(b)(1), venue is proper only in the D.C. Circuit Court of Appeals. It reasoned that the denial was a locally applicable action, but “based on a determination of nationwide scope or effect,” thereby forcing the venue to be the D.C. Circuit.

 

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CENTER PROGRAMS & RESOURCES

July 2025 Quarterly Dairy Legal Webinar

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 the Basics of ADA Compliance for Agritourism Operations

The Penn State Center for Agricultural and Shale Law, alongside the Pennsylvania Department of Agriculture’s (PDA) Agricultural Business Development Center (ABDC), will present the next webinar in the Understanding Agricultural Law Educational Series:

“Understanding the Basics of Americans with Disabilities Act (ADA) Compliance for Agritourism Operations”

Solar Law Symposium Virtual Live Webinar

Penn State Extension and the Penn State Center for Energy Law and Policy will host their fifth annual Penn State Solar Law Symposium, co-sponsored by Penn State Center for Agricultural and Shale Law. Staff Attorney Brook Duer will co-present a session on the ethics of solar leasing as part of the program.

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:

Akin Gump, Simplifying the Funding of Energy Infrastructure and Critical Mineral and Material Projects (June 30, 2025)

Eisenson, Local Laws and Lawsuits Targeting Renewables Becoming More Prevalent in the US (June 30, 2025)

Nolette, Guarna, and Metzger, Examining the Remarkable Rise of Ultra Vires Claims Against the Executive Branch (July 1, 2025)

McFarland, O. Henry and the Texas General Land Office (July 1, 2025)

Tigre and Rocha, New Book Explores How Advisory Opinions Are Shaping International Climate Law (July 2, 2025)

Sartain, Ambiguity Frees Louisiana Royalty Owner From Post-Production Costs (July 2, 2025)

Wentz, Seven County Infrastructure Coalition: The Supreme Court’s “Substantial Deference” Standard and Implications for Judicial Review under NEPA (July 2, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Energy Secretary Announces Updated NEPA Procedures to End Permitting Paralysis and Unleash American Energy (June 30, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Approves Two Significant Air Quality Actions in Louisiana (June 30, 2025)

EPA Will Revise Wastewater Rules to Support Electric Energy Reliability and Unleash American Energy (June 30, 2025)

ICYMI: Administrator Zeldin in Milwaukee Journal Sentinel: Trump’s energy dominance plans driving manufacturing renaissance in Milwaukee (June 30, 2025)

EPA to open public docket and host listening sessions on Clean Water Act Section 401 implementation challenges (July 1, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register June 16 – 23, 2025)

Environmental Protection Agency

90 FR 27910 Rule: “Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Other Solid Waste Incineration Units Review” (June 30, 2025)

90 FR 29485 Rule: “National Emission Standards for Hazardous Air Pollutants: Integrated Iron and Steel Manufacturing Facilities Technology Review: Interim Final Rule” (July 3, 2025)

90 FR 29491 Rule: “National Priorities List” (July 3, 2025)

Federal Energy Regulatory Commission

90 FR 28741 Notice: “Potential Enhancements to the Critical Infrastructure Protection Reliability Standards” (July 1, 2025)

90 FR 29541 Notice: “Qualifying Facility Rates and Requirements Implementation Issues Under the Public Utility Regulatory Policies Act of 1978; Notice of Second Revised Procedural Schedule for the Environmental Assessment for Qualifying Facility Rates and Requirements Implementation Issues Under the Public Utility Regulatory Policies Act of 1978” (July 3, 2025)

90 FR 29423 Rule: “Removal of References to the Council on Environmental Quality’s Rescinded Regulations” (July 3, 2025)

Energy Department

90 FR 28873 Rule: “Energy Conservation Standards for Manufactured Housing” (July 2, 2025)

90 FR 29676 Rule: “Revision of National Environmental Policy Act Implementing Procedures” (July 2, 2025)

U.S. Army Corps of Engineers

90 FR 29461 Rule: “Procedures for Implementing NEPA; Removal” (July 3, 2025)

90 FR 29465 Rule: “Procedures for Implementing NEPA; Processing of Department of the Army Permits” (July 3, 2025)

Pipeline and Hazardous Materials Safety Administration

90 FR 26085 Notice: “Pipeline Safety: Recission of Advisory Bulletin on Section 114 of the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020” (June 18, 2025)

Susquehanna River Basin Commission

90 FR 29614 Notice: “Public Hearing” (July 3, 2025)

Safety and Environmental Enforcement Bureau

90 FR 27876 Notice: “Notice of Proposed Transfer of Pipelines” (June 30, 2025)

National Highway Traffic Safety Administration

90 FR 29507 Rule: “Recission of NHTSA’s 1975 Procedures for Considering Environmental Impacts” (July 3, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.4263 “To enhance the competitiveness of the nuclear sector of the United States in foreign countries, and for other purposes.” (Introduced June 30, 2025).

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

PN12-20 “Preston Griffith — Department of Energy”  (Cloture Motion Presented in Senate July 1, 2025).

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 27 – July 5, 2025)

Pennsylvania Public Utility Commission

55 Pa.B. 4631 Notice: “Implementation Order to the Energy Efficiency and Conservation Program”

 

Written by:
Benjamin Aronovitch, Research Assistant
Caden Dean-Sauter, Research Assistant
Jackie Schweichler, Staff Attorney