March 24, 2025

Shale Law Weekly Review—Week of March 24, 2025

Methane Emissions: Congress Votes to Eliminate November 2024 Waste Emissions Rule ⚡
On March 4, 2025, Congress presented to the President H.J.Res.35, which is a joint resolution which would eliminate the rule, “Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions” (89 FR 91094). This final rule, which was promulgated through the Inflation Reduction Act, required the Environmental Protection Agency (EPA) to “impose and collect an annual charge on methane emissions that exceed waste emissions thresholds specified by Congress.” The House and Senate passed H.J.Res.35 on February 26, 2025, and February 27, 2025, respectively.  

Offshore Drilling: Federal Judge Rejects Attempt to Block Offshore Drilling Assurance Bonds
On March 11, 2025, a Louisiana Federal Judge rejected an attempt by Louisiana, Mississippi, and Texas to block a rule requiring the offshore oil and gas industry to provide financial assurance bonds to cover the costs of potential future liability for dismantling their structures. The rule, promulgated by the Bureau of Ocean Energy Management (BOEM) in June of 2024, received favorable remarks from both groups in the industry and environmental groups. However, it was challenged by the three aforementioned states, who moved for a preliminary injunction. The Federal Judge reasoned that the states had not met the burden to show that the rule would cause irreparable harm, and as such an injunction is not necessary.

National Energy Policy: EPA Announces it Will Consider Several Existing Energy Regulations
On March 12, 2025, the U.S. Environmental Protection Agency (EPA) announced plans to reconsider several energy-related regulations to more effectively align with Executive Order 14153, “Unleashing American Energy.” Among the regulations set for review are:

Wastewater Disposal: New CO Rules Increase Produced Water Recycling
On March 12, 2025, the Colorado Energy and Carbon Management Commission (ECMC) announced the finalization of new rules requiring oil and gas operations to increase recycling and reuse of oil and gas wastewater. The rules will require utilization of at least 4% recycled produced water in all downhole operations after January 1, 2026, with that requirement increasing to 35% for operations after January 1, 2038. Operators must report recycled usage to ECMC for every operational downhole site. To aid in compliance with these new utilization standards, the rules create a credit trading system allowing operators to generate credits for exceeding the standards that can be traded with other operators to bring them into compliance. Additionally, when submitting permit applications for new oil and gas development, operators will now have to include plans for how produced water will be recycled and reused in those operations. ECMC promulgated these new rules under the authority of HB23-1242, which required the Commission to implement regulations for decreasing the use of Colorado’s limited freshwater resources in oil and gas development by increasing recycling and reuse of produced water, without acting to increase emissions. Publication in the Colorado Register is forthcoming.

 

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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 Supreme Court Allows Enforcement of a JOA Debt After Foreclosure (March 14, 2025)

Bloomberg,  Vici Energy expands trading operations with new Renovo office in China’s Qingdao (March 18, 2025)

Bloomberg, Oil Advances as China Plans Economic Boost, Red Sea Risks Grow (March 17, 2025)

Bloomberg, Chevron Buys $2.3 Billion Hess Stake on Merger Confidence (March 17, 2025)

Silvermann-Roati, New Report on Liability Considerations for Marine Carbon Dioxide Removal in the U.S. (March 18, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Secretary Wright Signs Export Authorization for Venture Global CP2 LNG (March 19, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register March 15 – 21, 2025)

Environmental Protection Agency

90 FR 13093 Rule: “Extension of Effective Date for Removal of Gasoline Volatility Waiver for Ohio and Nine Counties in South Dakota” (March 20, 2025)

90 FR 13085 Rule: “Extending the Reporting Deadline Under the Greenhouse Gas Reporting Rule for 2024 Data” (March 20, 2025)

Federal Energy Regulatory Commission

90 FR 13161 Notice: “Northwest Pipeline LLC; Portland General Electric Company; B-R Pipeline, LLC; KB Pipeline Company; Notice of Applications and Establishing Intervention Deadline” (March 20, 2025)

90 FR 13158 Notice: “Natural Gas Pipeline Company of America, LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the Gulf Coast Storage Expansion Project” (March 20, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.J.Res.35 Resolution: “Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to “Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions”..” (March 14, 2025 – Became Public Law)

S.1030 Bill: “A bill to prohibit the Secretary of the Interior from issuing new oil or natural gas production leases in the Gulf of Mexico under the Outer Continental Shelf Lands Act to a person that does not renegotiate its existing leases in order to require royalty payments if oil and natural gas prices are greater than or equal to specified price thresholds, and for other purposes.” (March 13, 2025 – Read Twice and Referred to Committee)

S.1035 Bill: “A bill to prohibit certain exports of natural gas produced or refined in the United States, and for other purposes.” (March 13, 2025 – Read Twice and Referred to Committee) 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 11 – March 15, 2025)

Pennsylvania Public Utility Commission

55 Pa.B. 2234 “Natural Gas Service” (March 15, 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