Shale Law Weekly Review—Week of June 19, 2023

State Regulation: PA District Court Finds NGA Does Not Preempt State Administrative Review of Environmental Permits ⚡
On Monday, June 5, 2023, the District Court for the Middle District of Pennsylvania filed a memorandum opinion in the case of Transcon. Gas Pipe Line Co., LLC v. Pa. Env’t Hearing Bd. denying Plaintiff Transcontinental Gas Pipe Line Company, LLC’s (Transco) motion to enjoin an appeal proceeding before the Pennsylvania Environmental Hearing Board (PAEHB).  The Federal Energy Regulatory Commission (FERC) had issued a Certificate Order for Transco’s construction and operation of a pipeline expansion project, provided Transco obtained certain federal authorizations.  One such authorization was a Water Quality Certification under Section 401 of the Clean Water Act,  conditioned on Transco receiving permits from the Pennsylvania Department of Environmental Protection (PADEP).  Transco received the permits, but several environmental groups appealed the permits before the PAEHB.  The District Court found that while the Natural Gas Act (NGA) requires that civil actions arising from NGA-required permits must be brought before the Third Circuit Court of Appeals, the NGA does not preempt Pennsylvania’s administrative review process.  Therefore, the court declined to enjoin the appeal, which will proceed before the PAEHB.

Federal Lands: BLM Announces Comment Period for Oil and Gas Lease Sale in Wyoming
On Monday, June 12, 2023, the Bureau of Land Management (BLM) Wyoming State Office posted a press release announcing a 30-day comment period for public input on a proposed oil and gas lease sale in Wyoming.  The proposed sale includes 36 oil and gas parcels amounting to a total acreage of 19,130.92 acres.  Comments may be submitted on BLM’s ePlanning website, which also contains maps of the parcels.  The public comment period will end July 12, 2023.

National Energy Policy: Strategic Petroleum Reserve Will Receive an Additional 6 Million Barrels of Crude Oil for National Replenishment Plan
On June 9, 2023, The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced that it is awarding contracts to five companies for approximately 3 million barrels of U.S. crude oil for the Strategic Petroleum Reserve (SPR). Along with a notice of solicitation for an additional 3 million barrels for SPR’s Big Hill site by September 2023. The average price of crude oil in 2022 was $95 per barrel, however, the contracted 3 million barrels will be sold at an average price of $73 per barrel in an effort to lower prices for consumers. This action is in support of the internationally coordinated replenishment plan following the global oil crisis due to the war in Ukraine. These contracts and purchases are a part of a larger three-part strategy for the SPR that include direct purchasing, exchange returns, and legislative solutions. The replenishment strategy is being implemented to ensure energy security during crude oil supply emergencies.

 

Oil and Gas Policy Resources

Emily Mallen, Environmental Justice Takes Center Stage At FERC (Jun. 9, 2023)

Micah Brown, Florida’s New Foreign Ownership Law Is Facing Legal Challenge: Part Two (Jun. 13, 2023)

John McFarland, A New Ad Valorem Tax Exemption for Minerals Owned by Charities (Jun. 13, 2023)

Charles Sartain, JOA Cross-Netting Question Almost Answered (Jun. 14, 2023)

Cynthia Hanawalt, The Slippery Notion of Boycotts in the Anti-ESG Movement (Jun. 14, 2023)

Oil & Gas Law & Policy Resources of Interest as released, collect weekly

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks collect weekly

AGENCY PRESS RELEASES—FEDERAL

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Announces $135 Million to Reduce Emissions Across America’s Industrial Sector (Jun. 15, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Settles with Three Transportation Companies Over Violation Claims of California’s Truck and Bus Rules (Jun. 12, 2023)

EPA, State and Local Officials Celebrate Award of Over $8.8M in Rebate and Infrastructure Funding for 28 Zero-Emission Buses in Connecticut (Jun. 15, 2023)

Federal Executive Agencies

Environmental Protection Agency

88 FR 38280: “National Oil and Hazardous Substances Pollution Contingency Plan; Product Schedule Listing and Authorization of Use Requirements” Rule (Jun. 12, 2023)

88 FR 38433: “Air Plan Approval; Oklahoma; Revisions to Air Pollution Control Rules” Proposed Rule – Comments Closed 7.13.23. (Jun. 13, 2023)

88 FR 38448: “Air Plan Disapproval; Louisiana; Excess Emissions” Proposed Rule – Comments Closed 7.13.23. (Jun. 13, 2023)

Federal Energy Regulatory Commission

88 FR 38042: “Combined Notice of Filings (Natural Gas Oil and Pipeline Report)” Notice (Jun. 12, 2023)

88 FR 38857: “National Fuel Gas Supply Corporation; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” Notice (Jun. 14, 2023)

88 FR 38855: “Transcontinental Gas Pipe Line Company, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” Notice (Jun. 14, 2023)

88 FR 39249: “Transcontinental Gas Pipe Line Company, LLC; Notice of Availability of the Environmental Assessment for the Proposed Texas to Louisiana Energy Pathway Project” Notice (Jun. 14, 2023)

Land Management Bureau

88 FR 39272: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Oil and Gas Leasing: National Petroleum Reserve-Alaska” Notice (Jun. 14, 2023)

Surface Mining Reclamation and Enforcement Office

88 FR 38094: “Submission to the Office of Management and Budget for Review and Approval; Federal Inspections and Monitoring” Notice (Jun. 12, 2023)

Ocean Management Bureau

88 FR 38093: “Agency Information Collection Activities; Operations in the Outer Continental Shelf for Minerals Other Than Oil, Gas, and Sulfur” Notice (Jun. 12, 2023)

Forest Service

88 FR 38416: “Minerals Cost Recovery” Proposed Rule – Comments Closed 8/14/23 (Jun. 13, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.4024: “To amend the Clean Air Act to provide for the establishment of standards to limit the carbon intensity of the fuel used by certain vessels, and for other purposes.” Referred to the House Committee on Energy and Commerce (Jun. 12, 2023).

H.R.4038: “To prohibit the Administrator of the Environmental Protection Agency from finalizing, implementing, or enforcing a proposed rule related to new source performance standards and emissions guidelines for greenhouse gas emissions from certain stationary sources, and for other purposes.” Referred to the House Committee on Energy and Commerce (Jun. 12, 2023).

H.R.4077: “To direct the Administrator of the Environmental Protection Agency to provide grants to air pollution control agencies to implement a cleaner air space program, and for other purposes.” Referred to the House Committee on Energy and Commerce (Jun. 13, 2023).

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.1936: “A bill to promote competition in the area of digital energy management tools, enhance consumer access to electric energy and natural gas information, allow for the development and adoption of innovative products and services to help consumers, organizations, and governments manage their energy usage, reduce greenhouse gas emissions, and improve electric grid reliability, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (Jun. 13, 2023).

State Actions – Executive and Legislative

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 23—Jun. 10, 2023)

Department of Environmental Protection

53 Pa.B. 3166 Notice: “Suspension of Enforcement of the Pennsylvania Heavy-Duty Diesel Emissions Control Program”

 

Written by:
Joshua Narey, Research Assistant
Lonzie Helms, Research Assistant
Mary Johnson, Research Assistant
Jackie Schweichler, Staff Attorney