March 16, 2025

Shale Law Weekly Review—Week of March 17, 2025

National Energy Policy: Commonwealth of Pennsylvania Announces the Unfreezing of Federal Funds Allocated to Pennsylvania ⚡
On February 24, 2025, the Commonwealth of Pennsylvania announced that federal funding that was allocated to Pennsylvania, which had previously been frozen, is now unfrozen. On January 27, 2025, the U.S. Office of Management and Budget issued the “Memorandum for Heads of Executive Departments and Agencies,” which required federal agencies to “identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.” The memorandum required federal agencies to place a pause on activities and programs that provided federal financial assistance “that may be implicated by the executive orders,” such as diversity, equity, and inclusion (DEI) programs and foreign aid. In response, the Governor of the Commonwealth of Pennsylvania had filed suit against the U.S Department of the Interior, the U.S. Environmental Protection Agency, and other executive agencies. Shapiro et al. v. U.S. Department Of The Interior et al, Docket No. 2:25-cv-00763 (E.D. Pa. Feb 13, 2025). In the complaint, the Governor of the Commonwealth of Pennsylvania argued that the funds that were allocated to Pennsylvania were “authorized and appropriated” by Congress, and, since there is no statute that gives a federal agency the ability to refuse “congressionally appropriated funds,” the funding freeze was “flagrantly lawless.” The announcement from the Commonwealth of Pennsylvania stated that the full amount of funding that was identified in the lawsuit, which was used for energy cost reduction and “mak[ing] abandoned mines safe” in Pennsylvania, has been unfrozen and is available to agencies.

Methane Emissions: Congress Nullifies EPA Rule Setting Fee on Oil and Gas Operation Emissions
On February 27, 2025, Congress passed a joint resolution nullifying a November 2024 Environmental Protection Agency (EPA) rule titled Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions. The overturned rule set a fee on oil and gas operations exceeding 25,000 tons/year of released CO2 equivalent. The resolution passed by a vote of 52-47 in the Senate, and 220-206 in the House.

For more background on the Waste Emissions Charge rule, see: SLWR Dec. 2, 2024 – “Methane Emissions: EPA Finalizes Methane Emissions Fee for Oil and Gas Sector” [

State Regulation: U.S. Department of Transportation Terminates Approvals for New York’s Congestion Pricing Toll Program
On February 19, 2025, the U.S. Department of Transportation (DOT) announced the termination of approvals previously issued for New York’s Central Business District Tolling Program (CBDTP). New York intended that CBDTP would work to reduce traffic in the city’s busier districts by imposing a toll on vehicles traveling to certain areas within the city. CBDTP was approved as a pilot project under the Value Pricing Pilot Program (VPPP). In a letter sent by the DOT revoking the Program’s approval, the DOT noted the cost this toll imposed on those who commuted to these parts of the city regularly, the fact that there was no toll-free option, and claimed that the primary goal of the CBDTP is to raise revenue for the Manhattan Transit Authority. The DOT also noted ongoing litigation challenging the CBDTP’s methods as beyond those authorized by the VPPP. The Federal Highway Administration will work with the New York Department of Transportation to end the program.

Hydraulic Fracturing Bans: Delaware River Watershed Hydraulic Fracturing Ban Challenge Dismissed
On February 3, 2025, the United States District Court for the Middle District of Pennsylvania dismissed a challenge to the prohibition of natural gas drilling in the Delaware River Basin. Wayne Land and Mineral Group, LLC v. Delaware River Basin Commission, No. 3:16-cv-00897 (M.D. Pa.).The suit, filed by Wayne Land and Mineral Group, LLC (Wayne Group) in May of 2016, argued that under the Delaware River Basin Compact, the Delaware River Basin Commission (DRBC) lacked jurisdiction to review and approve natural gas projects in the Basin. The complaint also argued that DRBC’s actions imposed an unauthorized de facto moratorium on natural gas operations in the area, causing economic injury and deprivation of constitutional rights. On February 25, 2021, DRBC adopted final regulations prohibiting high volume hydraulic fracturing within the Basin citing significant long-term risks to the conservation and preservation of the Basin and its protected waters. Citing these regulations, DRBC moved to dismiss the suit on the basis of mootness. In a memorandum opinion, U.S. District Judge Mariani explained that whether DRBC had exceeded their authority in requiring review and approval of natural gas projects in the Basin was moot given the 2021 prohibition, so that Wayne Group’s asserted harm could not be redressed by continuing with their claims.

For more background on this case, the prohibition, and related litigation, see: Shale Law in the Spotlight: Delaware River Basin Commission Finalizes Regulations Prohibiting High-Volume Hydraulic Fracturing Operations Within River Basin; SLWR Jan. 18, 2021 – “Water Quality: Pennsylvania Senators File Lawsuit Against Delaware River Basin Commission Seeking to Lift Drilling Moratorium;” and SLWR Jun. 21, 2021 – “Hydraulic Fracturing: Federal Court Dismisses Case Challenging Delaware River Basin Fracking Ban.”

LNG Exports: Golden Pass Receives LNG Export Permit Extension
On March 5, 2025, the U.S. Department of Energy announced that it had approved a liquified natural gas (LNG) export permit extension for Golden Pass LNG Terminal LLC (Golden Pass). The permit extension approval allows Golden Pass, which is currently under construction in Sabine Pass, Texas, additional time to begin LNG exports. The terminal is set to begin exporting LNG this year. For background, see SLWR—May 1, 2023, “FERC Approves Two LNG Projects in Brownsville, Texas.”

 

___________________________________________________

CENTER PROGRAMS & RESOURCES

Understanding Agricultural Law Series. A free monthly Zoom webinar series for agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. All events on Fridays, noon–1 pm (ET). Upcoming:

Microgreens Production: Potential Legal Issues – Center Staff Attorney Brook Duer will present the webinar “Microgreens Production: Potential Legal Issues,” hosted by Penn State Extension.

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:

Sartain, Texas Mineral Buyer’s Due Diligence Falls Short (March 10, 2025)

Bloomberg,  Top Oil Traders Turn Bearish on Prices, Seeing Oversupply (March 12, 2025)

McFarland, Basic Energy Services v. PPC Energy LLP – Another Case on Injection Wells in the Delaware Mountain Group (March 10, 2025)

Mallen, Hug, Treanor, Johnson, et al, Department of Energy Continues to Issue Orders that Support Liquefied Natural Gas Exports with Extension Authorization to Golden Pass LNG Terminal LLC (March 10, 2025)

Sartain, Scribner’s Error: A Cautionary Tale of Oil & Gas Fraud (March 12, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Issues Extension to Delfin LNG Project (March 10, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Will Revise Wastewater Regulations for Oil and Gas Extraction to Help Unleash American Energy (ELGs: Oil and Gas) (March 12, 2025)

Trump EPA Announces Reconsideration of Burdensome Greenhouse Gas Reporting Program (March 12, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register March 7 – 14, 2025)

Environmental Protection Agency

90 FR 11478 Rule: “Air Plan Approval; SC; Updates to the Cross-State Air Pollution Rule” (March 7, 2025)

90 FR 11968 Notice : “Clean Air Act Operating Permit Program; Order on Petition for Objection to State Operating Permit for AdvanSix Resins and Chemicals LLC, Hopewell Plant” (March 13, 2025)

Federal Energy Regulatory Commission

90 FR 11825 Notice: “Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline; Columbia Gas Transmission, LLC” (March 12, 2025)

90 FR 11531 Notice: “Texas-Kansas-Oklahoma Gas, LLC; Notice of Application and Establishing Intervention Deadline” (March 7, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.1949 Bill: “To repeal restrictions on the export and import of natural gas.” (March 6, 2025 – Referred to House Committee)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 10 – March 8, 2025)

Department of Environmental Protection

55 Pa.B. 2020 “Interstate Pollution Transport Reduction: Proposed 2025 Ozone Season Nitrogen Oxide Emission Limits for Nonelectric Generating Units” (March 8, 2025)

55 Pa.B. 2019 “Availability of Competitive Grants through the Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) Program” (March 8, 2025)

Pennsylvania Public Utility Commission

55 Pa.B. 2032 “Tentative Implementation Order to the Energy Efficiency and Conservation Program” (March 8, 2025)

55 Pa.B. 2029 “Revocation of Natural Gas Supplier Licenses of Companies that Did Not File a Natural Gas Supplier Annual Report or Pay Past Due Annual or Supplemental Fees” (March 8, 2025) 

 

Written by:
Jasmine Gunning, Research Assistant
Dillon Lightfoot, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Victoria Dutterer, Research Assistant
Jose Rojas, Research Assistant
Jackie Schweichler, Staff Attorney