March 11, 2024

Shale Law Weekly Review—Week of March 11, 2024

Pipelines: Pennsylvania Public Utility Commission Publishes Updated Safety Standards for Intrastate HVL Transport  ⚡
On February 22, 2024, the Pennsylvania Public Utility Commission (PUC) published a Final Form Rulemaking Order (FFRO) to establish state specific safety standards for the intrastate transport of highly volatile liquids (HVLs) by public utilities. The FFRO amends the standards currently outlined in 52 Pa. Code §§ 59.1—59.111. Among the updated safety standards are revamped processes for reporting accidents and notification the PUC and community members of construction. The FFRO also adds spacing and location requirements for where construction on new and existing pipelines can take place. Additionally, the FFRO highlights horizontal directional drilling (HDD) and trenchless technology (TT) and adds identification and notification requirements related to their proximity to water supplies. This FFRO will become effective 60-days after it is published in the PA Bulletin, which has not yet taken place.

Pipelines: Pennsylvania Department of Environmental Protection Publishes Final Trenchless Technology Technical Guidance
On February 24, 2024, Pennsylvania Department of Environmental Protection (DEP) published a notice of availability for its final Trenchless Technology Guidance. The document provides guidance for implementing trenchless technology while complying with DEP’s regulations. 25 Pa. Code § 78a.68a. Trenchless Technology, as defined by DEP, encompasses techniques for the underground installation or repair of utilities such as pipelines and cables without significant excavation includes methods such as: “horizontal directional drilling, guided auger bore, cradle bore, conventional auger bore, jack bore, hammer bore, guided bores, and proprietary trenchless technology.”  The document outlines procedures and best practices to mitigate adverse environmental effects associated with construction activities using trenchless technology.

Pipelines: West Virginia District Court Condemns Easement Requiring Relocation of Columbia Gas Pipeline
On Wednesday, February 20, 2024, the West Virginia Southern District Court ruled that Columbia Gas did not have to follow an order by Amherst Industries to relocate their pipeline to accommodate for coal mining operations. Columbia Gas Transmission, LLC v. Easement Rights on Real Prop. Located in Kanawha Cnty., (No. 2:23-cv-00646.) In this case, there were several different motions before the court, including a Motion for Partial Summary Judgment brought by both the plaintiff, Columbia Gas Transmission, and the four defendants, Amherst Industries, Elite Materials, Investment Management Group, and Point Lick Energy. The original dispute arose after the defendants, following an amendment to their right-of-way agreement with Columbia in 1981, demanded the company to move its pipeline to accommodate new mining operations near the pipeline. This demand eventually led Columbia to bring a condemnation action under the Natural Gas Act (NGA) and to seek a new permanent easement that would solidify the company’s right to keep the pipeline in its current location. The court ruled in favor of Columbia, finding that it had satisfied the requirements to condemn the defendants’ easement under the NGA and to establish a new permanent easement for the pipeline. However, the court rejected Columbia’s motion for a preliminary injunction that would allow for immediate possession of the easement, citing a lack of imminent threat of irreparable harm to the pipeline.

Electricity Generation: Alberta Utilities Commission Takes “Agriculture First” Approach as Pause on Renewable Project Approvals Ends
On Wednesday, February 28, 2024, one day before Alberta’s seven-month pause on the issuance of approvals for renewable energy projects was set to end, Alberta’s Minister of Affordability and Utilities provided a Policy Guidance to the Alberta Utilities Commission (AUC), which emphasizes the Canadian Province’s new “agriculture first” approach to renewable energy projects. Following the receipt of the new guidance, the UAC promptly issued Bulletin 2024-03, which outlines the commission’s updated processes for reviewing proposed renewable energy projects considering the Minister’s newly stated goals for the province. More specifically, the Policy Guidance directs the AUC “to take an ‘Agriculture First’ approach” for land use evaluation. Moreover, the letter states that the development of renewables is to be prohibited on Class 1 and 2 lands, unless it is possible “for both crops and/or livestock and renewable generation to co-exist.” The letter also addresses buffer zones for viewscapes, renewable generation on Crown Lands, and forthcoming changes to transmission regulations. The Minister concludes by commending the AUC’s efforts in developing recommendations for a more sustainable electricity system in Alberta. In Bulletin 2024-03, the AUC confirmed that Interim Rule 007, which outlines the requirements for new power plant applications, “including wind, solar, thermal, hydroelectric and other power plants,” will remain in effect. These developments reflect the ongoing inquiry into the development of electricity generation in Alberta, with a focus on sound “policy, legislative and regulatory changes.”

Wastewater Treatment: Penn State Researchers Find Produced Water to Fail Beneficial Reuse Criteria
In the April 2024 edition of Science of The Total Environment, a group of researchers from Penn State published an article showing that based on their research, produced water from oil and gas wells does not meet the criteria for beneficial reuse as a road dust suppressant. According to recommendations by the Environmental Protection Agency (EPA), waste products should meet two criteria for beneficial reuse: “1) they perform as well as or better than the material being replaced, and 2) using the waste product does not increase the risk of harm to either the environment or human health.” To test these criteria, the researchers conducted a long-term experiment applying commercial products, produced water, and organic products to constructed roadbeds, testing their performance in varying humidity conditions and in simulated rainfall. This experiment showed that while produced water performed well in high humidity, commercial and organic products both were more consistently effective. While the salinity of both produced water and commercial product runoff creates risks to adjacent freshwater, the sodium makeup of the produced water can also cause clay dispersion, decreasing the stability of roadbeds and exacerbating dust pollution. Additionally, the studies found that produced water from the Appalachian Basin produces runoff presenting an excess of radium. Because of the elevated risks and lack of consistent effective performance, the researchers concluded that produced water does not meet the beneficial reuse criteria.

 

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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 March 15, 2024, from 2:00–4:00 pm (ET), Penn State Extension will present “Exploring Succession and Estate Planning: A Panel Discussion.” At 2:25pm, Brook Duer will present “Pros and Cons of Various Transition Methods/Tools” as part of the panel.

On Tuesday, April 16, 2024, from 12 noon–1:00 ET, 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, 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 

US EPA removes existing natgas plants from proposed carbon rule (Reuters)

‘There’s got to be an all-of-the-above strategy’: PA Senate GOP Leader Joe Pittman talks energy policy in Pennsylvania (City and State Pennsylvania)

SEC sets vote on landmark climate rule (E&E News)

More productive wells spur U.S. crude oil production higher (EIA)

SEC to vote on adopting contentious climate disclosure rule Wednesday (The Hill)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Energy Connects, TotalEnergies expands presence in South Africa’s Orange Basin with new offshore exploration license (March 6, 2024)

Bloomberg, India Cautious on Contracted Russian Oil as US Sanctions Bite (March 6, 2024)

Bloomberg, Oil Gains After Saudis Choose to Jack Up Prices Across Asia (March 6, 2024)

Sartain, Harsh Result in a Drilling Contract Dispute (March 7, 2024)

Bloomberg, Oil Advances After Canada-US Keystone Pipeline Briefly Halts (March 8, 2024)

Energy Connects, Massive South China Sea oilfield discovery by CNOOC will yield more than 100 MT hydrocarbons (March 8, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Announces $90 Million to Improve Building Efficiency, Increase Resilience, and Lower Costs for American Families and Businesses (March 4, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Adds Sites to the Superfund National Priorities List in Illinois, Iowa, Navajo Nation, Louisiana and Pennsylvania (March 5, 2024)

$5.8 million for 15 Clean School Buses awarded to Worcester Public Schools (March 4, 2024)

Statement from EPA Administrator Michael S. Regan on EPA’s approach to the power sector (February 29, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register  March 2– March 8, 2023)

Environmental Protection Agency

89 FR 16820: Rule: “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” (March 8, 2024)

89 FR 15986: Notice, Comments Close 4/5/24: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Federal Implementation Plan for Oil and Natural Gas Well Production Facilities, Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North Dakota (Renewal)” (March 6, 2024)

89 FR 16202: Rule: “Reconsideration of the National Ambient Air Quality Standards for Particulate Matter” (March 6, 2024)

89 FR 16408: Rule: “National Emission Standards for Hazardous Air Pollutants: Taconite Iron Ore Processing” (March 6, 2024)

89 FR 15868: Notice: “Final National Pollutant Discharge Elimination System (NPDES) General Permit for New and Existing Sources and New Dischargers in the Offshore Subcategory of the Oil and Gas Extraction Category for the Eastern Portion of the Outer Continental Shelf (OCS) of the Gulf of Mexico” (March 5, 2026)

89 FR 15098: Proposed Rule, Comments 4/1/24: “Air Plan Approval; Tennessee; Revisions to the Continuous Opacity Monitoring System Requirements” (March 1, 2024)

Pipeline and Hazardous Materials Safety Administration

89 FR 15636: Rule: “Hazardous Materials: Adoption of Miscellaneous Petitions and Updating Regulatory Requirements” (March 4, 2024)

Susquehanna River Basin Commission

89 FR 15921: Notice: “Projects Approved for Consumptive Uses of Water” (March 5, 2024)

Ocean Energy Management Bureau

89 FR 15890: Notice, Comments Close 5/6/24: “Agency Information Collection Activities; Leasing of Minerals Other Than Oil, Gas, and Sulphur in the Outer Continental Shelf” (March 5, 2024)

Other Agencies

89 FR 16474: Proposed Rule, Comments Close 4/8/24: “Special Conditions: BETA Technologies Inc. Model H500A Electric Engines” (March 7, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.3277 “Energy Emergency Leadership Act” Received in the Senate. (March 6, 2024)

H.Res.1064 “Recognizing the role and responsibilities of Texas operating the Electric Reliability Council of Texas and condemning any action to federalize the Texas electricity markets.” Referred to the House Committee on Energy and Commerce. (March 6, 2024)

H.R.7556 “To establish a working group to coordinate regulatory oversight of liquefied natural gas facilities, and for other purposes.” Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (March 5, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Reports Progress on Implementing Shapiro Administration Permitting Reform, Reduces Permit Backlog by 41 Percent (March 7, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 10 – March 9, 2024 )

Department of Environmental Protection

54 Pa.B. 1265: Notices: “Federal Consistency under the Coastal Zone Management Act; United States Army Corps of Engineers Proposed Maintenance Dredging at Conneaut Harbor, Ashtabula County, Ohio”

Pennsylvania Public Utility Commission

54 Pa.B. 1281: Notices: “Electric Generation Supplier License Cancellation of Companies with an Expired Financial Security, Insufficient Financial Security Amount or Language”

 

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