March 31, 2025

Shale Law Weekly Review—Week of March 31, 2025

Water Quality: Bucks County Attorney General’s Office Announces Investigation into Sunoco Pipeline Leak ⚡
On March 11, 2025, the Bucks County Assistant District Attorney Edward Louka announced during a town meeting that the Attorney General’s office would be investigating leaks from a Sunoco pipeline in Upper Makefield, PA. The pipeline leak was confirmed by a Pennsylvania announcement in January 2025, which stated that the pipeline leak had contaminated six wells within Upper Makefield. Since the leak was announced, the Pennsylvania Department of Environmental Protection (DEP) had been involved with water testing within the wells for contamination, with potential contaminants including jet fuel and diesel. The DEP also gave multiple home treatment systems who had “detectable contamination” in their water.

Oil and Gas Leasing: Pennsylvania Superior Court Affirms Denial of Arbitration Clause in Leasing Dispute
On March 14, 2025, the Pennsylvania Superior Court affirmed the District Court’s denial of Defendant EQT Corporation’s (EQT) motion to compel arbitration in a lease dispute. Plaintiff Kriebel Minerals (Kriebel) entered into an oil and gas lease with Range Resources (Range). Kriebel Minerals, Inc. v. EQT Corp., No. 352 WDA 2024, 2025 Pa. Super. Unpub. LEXIS 608 (Mar. 14, 2025). Range subsequently assigned those rights to EQT. Under the terms of the lease, Kriebel has the right to participate in up to a 15% interest in each well drilled on the property. In order to do so, Kriebel must deliver notice of its intention to the drilling party (in this case EQT).  Further, the lease contained an arbitration clause. In March 2019, EQT notified Kriebel of its intention to drill a well, and Kriebel notified EQT of its election to participate. However, Kriebel was not aware production would not begin until June 2022 and demanded EQT return the participation payment. In 2023, Kriebel sued, alleging fraud and breach of contract. EQT responded by filing a motion to compel arbitration, which was denied. EQT appealed. The Superior Court affirmed the denial, stating that no matter how Kriebel styled its claims, it gets down to EQT withholding information from Kriebel. And as the arbitration clause only applied to the joint operating agreement (JOA), this dispute centers around the purchase and sale agreement (PSA). The court determined that if the parties intended the arbitration clause to apply to the PSA, it should have been included in the lease.

Methane Emissions: U.S. President Signs Resolution to Eliminate November 2024 Waste Emissions Rule
On March 14, 2025, President Trump signed into law joint resolution H.J.Res.35, which is a formal disapproval nullifying 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 the Environmental Protection Agency (EPA) promulgated pursuant to 2022 Inflation Reduction Act (IRA), required the EPA to “impose and collect an annual charge on methane emissions that exceed waste emissions thresholds specified by Congress.” Section 60113 of the IRA established the Methane Emissions Reduction Program. At this time, the IRA is still active law, though legislation has been introduced in the U.S. House to repeal the law, therefore the impact of this joint resolution on the Methane Emissions Reduction Program is unclear.

Workforce Issues: DOE and EPA Ordered to Reinstate Probationary Employees Fired as a Part of Government Reduction Movements
On March 13, 2025, a U.S. District Court Judge issued a temporary restraining order prohibiting the Environmental Protection Agency (EPA) from firing probationary employees, while a separate Judge denied motions challenging a similar order prohibiting the Department of Energy (DOE) from firing its probationary employees. American Federation of Government Employees, AFL-CIO v. United States Office of Personnel Management No: 3:25-cv-01780. State of Maryland v. United States Department of Agriculture No: 1:25-cv-00748. Both suits come after these executive bodies moved to terminate employment for probationary employees, defined as those who have been in place less than two years. The District Court of Maryland found faults with the way the employees were fired, such as the timing and absence of cause in many cases. The Court for the Northern District of California, in addition to noting similar faults, highlighted involvement by the Office of Personnel Management (OPM), finding that OPM had no authority to direct separate departments or agencies to fire employees. Both court orders require the terminated employees to be reinstated pending the results of the claims. Reports surfaced on March 14, 2025, indicating that the DOE was already working to reinstate the fired employees.

 

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CENTER PROGRAMS & RESOURCES

“Beginning Your Farm Transition Process,” – Center Staff Attorney Brook Duer will join Penn State Extension’s Farm Transition Team to present “Beginning Your Farm Transition Process,” hosted by Penn State Extension.

April 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 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:

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 Court Limits Tortious Interference Claims in Oil & Gas Assignment Dispute (March 25, 2025)

Bloomberg,  Billion-Dollar US Levies on Chinese Ships Risk ‘Trade Apocalypse’ (March 24, 2025)

McFarland, Iron Bar Holdings v. Cape – Tales of the Wild West (March 26, 2025)

Bloomberg, China Refiners Face Yet Another Blow as Trump Presses Venezuela (March 26, 2025)

Metzger, Cancelling the Buy Clean Program Will Not Cancel Low Embodied Carbon Construction (March 26, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Energy Department Advances Efforts to Lower Costs and Increase Consumer Choice (March 24, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Administrator Zeldin Meets with Local Leaders, Surveys Maui Wildfire Recovery Efforts, and Visits Red Hill Bulk Fuel Storage Facility (March 25, 2025)

FEDERAL EXECUTIVE AGENCIES (Federal Register March 21 – 28, 2025)

Environmental Protection Agency

90 FR 13702 Rule: “Interim Final Determination To Stay or Defer Sanctions; California; Antelope Valley Air Quality Management District” (March 26, 2025)

Federal Energy Regulatory Commission

90 FR 13356 Notice: “Natural Gas Pipeline Company of America, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (March 21, 2025)

90 FR 13748 Notice: “Notice of Schedule for the Preparation of an Environmental Assessment for the Transwestern Pipeline Company, LLC WT-0 Compressor Station Project” (March 26, 2025)

Pipeline and Hazardous Materials Safety Administration

90 FR 13658 Notice: “Pipeline Safety: Pipeline Safety Management System” (March 25, 2025)

90 FR 13821 Notice: “Hazardous Materials: Notice of Actions on Special Permits” (March 26, 2025)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 12 – March 22, 2025)

Department of Environmental Protection

55 Pa.B. 2395 “Household Hazardous Waste Education Grant Awards under Section 901 of the Municipal Waste Planning, Recycling and Waste Reduction Act, Act 101 of 1988” (March 22, 2025)

55 Pa.B. 2394 “Federal Consistency under the Coastal Zone Management Act; Erie Western Pennsylvania Port Authority Proposed Maintenance Dredging along Presque Isle Bay and Lake Erie” (March 22, 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