March 3, 2024

Shale Law Weekly Review—Week of March 4, 2024

State Regulation: Colorado Limits Government Use of Gas-Powered Lawn Equipment ⚡
In February 2024, the Colorado Air Quality Control Commission (AQCC) formally adopted a new regulation first announced in December 2023, that limits the use of gas-powered lawn equipment by state agencies. The new regulation is only applicable during summer months, beginning June 2025, and affects local and state agencies differently. Local agencies within the nine-county span of the North Front Range Ozone Nonattainment area are prohibited from using lawn equipment with more than 10-horsepower on public property. State agencies are restricted statewide from using equipment with engines exceeding a 25-horsepower output. The new rule provides exemptions for wildfire mitigation, public safety measures, emergency services, and riparian or forest management. In their December announcement, AQCC stated that this regulation complements Colorado’s State Implementation Plan for federal Clean Air Act compliance, and is expected to “reduce unpleasant odors, noise pollution, and greenhouse gas emissions that cause climate change.” The final language of the new rule has not yet been published, but will be available here as Regulation 29.

Pipelines: FERC Authorizes Construction of the Saguaro Connector Pipeline
On February 15, 2024, the Federal Energy Regulatory Commission (FERC) published an order issuing a presidential permit and authorization under section 3 of the Natural Gas Act (NGA) for the construction and maintenance of the Saguaro Connector Pipeline. The project includes a 1,000 foot-long, 48-inch-diameter pipeline that runs from a facility in Sierra Blanca, Texas to the U.S.-Mexico border. At the border, the pipeline will connect with another pipeline that will run to a liquified natural gas (LNG) export facility in the gulf. Additionally, a smaller connector pipeline will be constructed that runs from the Waha Hub in Pecos County, Texas. Saguaro will now have three years to complete the project.

Climate Change: Major Oil Companies Face Climate Change Lawsuit from City of Chicago
On Tuesday, February 20, 2024, the City of Chicago filed a lawsuit against BP, Chevron, ConocoPhillips, ExxonMobil, Shell, and the American Petroleum Institute in the Cook County Circuit Court. City of Chicago v. BP et al., (No. 2024CH01024.) The lawsuit alleges that the oil and gas companies have, “for decades,” intentionally deceived the public about the impact of fossil fuels on humans and the planet through the production of “carbon dioxide and other greenhouse gas pollution.” The eleven factual allegations made in the complaint focus primarily on the extent of the knowledge these companies have had about the harms of fossil fuel products, dating back to “at least the 1950s,” and how, despite this knowledge, the companies “affirmatively concealed those harms by engaging in a campaign of deception to increase the use of those products.” Their efforts to deceive Chicago’s consumers, according to the lawsuit, were made successful through practices such as “misleading advertisements that portray Defendants as climate-friendly energy companies.” These practices, which incentivized the continued use of fossil fuels and disincentivized efforts to curb greenhouse gas emissions, have resulted in significantly higher costs for adaptation and mitigation efforts. As for legal causes of action, the complaint brings eleven counts against Defendants, including Failure to Warn, Negligence, Public Nuisance, Private Nuisance, Civil Conspiracy, Unjust Enrichment, and others. The city is requesting relief in several forms, including compensatory damages, equitable relief, disgorgement of profits, and more. The city is also requesting a trial by jury on all its claims.

Pipelines: FERC Approves a Motion Extending the Timeline to Complete the Driftwood Pipeline and LNG Terminal
On February 25, 2024, the Federal Energy Regulatory Commission (FERC) published an order granting a motion requesting a three-year extension to complete construction on the Driftwood liquified natural gas (LNG) Terminal and the Driftwood Pipeline Project. The FERC issued permits for the projects’ construction on April 18, 2019, and provided seven-years for their completion. The project includes construction of the Driftwood Pipeline, which would feed into the Driftwood LNG Terminal. Driftwood moved for an additional three years to finish construction, noting difficulties stemming from Covid-19 and supply chain disruptions. With the motion granted, the projects must now be completed by April 18, 2029.

Pipelines: PA DEP Accepting Comments on a Project to Temporarily Expose Portions of the Hunter and Wilhelm Carpenter Pipelines
On February 17, 2024, the Pennsylvania Department of Environmental Protection (DEP) published a notice in the PA Bulletin, seeking comments on a project proposed by MarkWest Liberty Midstream & Resources, LLC. The project would expose portions of the Hunter and Wilhelm Carpenter Pipelines for around six months in preparation for longwall mining activities to take place beneath the pipelines. Additionally, this project would impact three Palustrine Emergent (PEM) wetlands and five streams temporarily. To comment on the proposed project, contact DEP’s Southwest Region: Oil and Gas Management Program, 400 Waterfront Drive, Pittsburgh, PA 15222-4745 or call 412-442-4000.

Pipelines: Pennsylvania Department of Environmental Protection Publishes Special Notice of Permit Amendment for Pennsylvania Pipeline Project/Mariner East II
On February 17, 2024, the Pennsylvania Department of Environmental Protection (DEP) published a special notice of a permit amendment for the Pennsylvania Pipeline Project/Mariner East II, under the Southeast Region’s Waterways & Wetlands Program. The pipeline, operated by Sunoco Pipeline, L.P., a wholly owned subsidiary of Energy Transfer Partners, L.P., is undergoing modifications to enhance stormwater management in compliance with local regulations. Specifically, the amendment involves the construction of a stormwater management system, including a large retention berm, to comply with the West Goshen Township’s Management Stormwater Ordinances on water runoff for areas disturbed by construction. This initiative aims to reduce the impact of stormwater runoff, a key concern for local communities and environmental protection efforts.

 

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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 2, 2024, from 9:00am–2:00pm, Eastern Snyder County will hold a Child Safety Awareness Meeting. From 9:00–10:00am, Staff Attorney Brook Duer will speak about on-farm negligence, gross negligence, and liability issues as part of the meeting located at the Snyder Co. Produce Auction, 6130 Susquehanna Trail Port, Trevorton, PA 17864.

On March 6, 2024, the Center for Agricultural and Shale Law will join the SBDC Agriculture Center of Excellence, and Penn State Extension to host an agritourism webinar, “Agritourism and On-Farm Markets & Events: Planning for Your Success in 2024.” Staff Attorney Jackie Schweichler will give a presentation on “Legal Considerations for Agritourism Operations.”

On Wednesday, March 6, 2024, from 9:00am–1:00pm, the PA Agricultural Ombudsman Program, in collaboration with the Penn State Center for Agricultural and Shale Law, Penn State Extension, and the Blair County Conservation District, will present “ACRE Law 101: Agriculture, Local Regulations, and Nutrient Management” at the Liberty Room in the US Hotel Tavern in Hollidaysburg, Pennsylvania. Guest speakers will be Robert Willig, Senior Deputy Attorney General for the Pennsylvania Office of the Attorney General, and Robb Meinen, Assistant Research Professor with Penn State Extension, joined by Brook Duer, Center Staff Attorney.

On March 8–9, 2024, Penn State Extension will host “Beginning Farmer Intensive: Land, Law, and Transition” at the Inn at Leola Village. On March 9, 2024, from 11:15pm–noon and 12:45pm–1:30pm, Staff Attorney Brook Duer will present “Legal and Tax Structures for Business and Land Ownership” as part of the program.

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.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Natural Gas Hasn’t Been This Cheap in Decades (The Wall Street Journal)

California towns are banning new gas stations. Big Oil is paying attention. (Grist)

Driven by Industry, More States Are Passing Tough Laws Aimed at Pipeline Protesters (Inside Climate News)

FERC greenlights projects that could unleash gas exports (E&E News)

U.S. oil and natural gas production hits record highs (World Oil)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Trader Gunvor to Plead Guilty in US Case Tied to Ecuadorian Bribes (March 1, 2024)

Bloomberg, Oil Heads for Weekly Advance as Spreads Signal Market Strength (March 1, 2024)

Sartain, Mineral Lessee’s H2S Damage Claim Rejected (February 29, 2024)

Energy Connects, ADNOC acquires 24.9% stake in OMV to speed up global chemicals expansion strategy (February 29, 2024)

Energy Connects, ADNOC Distribution reveals new 5 year growth strategy (February 27, 2024)

Bloomberg, Oil Heavyweights Take Aim at Biden’s LNG Permitting Freeze (February 26, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE, USDA Launch Initiative to Help Farmers Reduce Costs with Underutilized Renewable Technologies as part of President Biden’s Investing in America Agenda (February 26, 2024)

DOE Announces $45 Million to Protect Americans From Cyber Threats and Improve Cybersecurity in America’s Energy Sector (February 26, 2024)

Biden-Harris Administration Announces $366 Million to Lower Energy Costs and Enhance Energy Security in Rural and Remote Communities Across the Nation (February 27, 2024)

Biden-Harris Administration Announces $18 Million for Transformative Clean Energy Projects Led by Tribal and Local Governments (February 27, 2024)

DOE Announces Funding for Tribal Clean Energy Projects (February 27, 2024)

Biden- Harris Administration Supports Local Projects to Save Energy and Tackle the Climate Crisis as part of Investing in America Agenda (February 28, 2024)

DOE Finalizes Efficiency Standards for Residential Clothes Washers and Clothes Dryers to Save Americans Billions on Household Energy and Water Bills (February 29, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA finalizes stronger safety standards to protect at-risk communities from chemical accidents (March 1, 2024)

EPA launches new office to strengthen engagement with agricultural and rural communities (March 1, 2024)

EPA Opens $1.5M Grant Competition for Pollution Source Reduction Projects, Apply By April 15th (February 29, 2024)

EPA invests $3B into clean ports (February 29, 2024)

Biden-Harris Administration announces new cleanup projects in Pennsylvania as part of President Biden’s Investing in America agenda (February 27, 2024)

Biden-Harris Administration announces over $1 billion to start new cleanup projects and continue work at 100 Superfund sites across the country (February 27, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register February 24– March 1, 2023)

Environmental Protection Agency

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

89 FR 14760: Rule: “Request From States for Removal of Gasoline Volatility Waiver” (February 29, 2024)

Land Management Bureau

89 FR 13982: Rule: “Onshore Oil and Gas Operations and Coal Trespass-Annual Civil Penalties Inflation Adjustments” (February 26, 2024)

Other Agencies

89 FR 15272: Proposed Rule, Comments Close 5/7/24: “Proposed Papahānaumokuākea National Marine Sanctuary” (March 1, 2024)

89 FR 14087: Notice, Comments Close 3/27/24: “National Environmental Policy Act Implementing Procedures for the Bureau of Land Management (516 DM 11)” (February 26, 2024)

89 FR 14056: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (February 26, 2024)

89 FR 14158: Rule: “Special Purpose Acquisition Companies, Shell Companies, and Projections” (February 26, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.7498: “To amend the Clean Air Act to create a national zero-emission vehicle standard, and for other purposes.” Referred to the House Committee on Energy and Commerce. (February 29, 2024)

H.R.6544: “Atomic Energy Advancement Act” Received in the Senate and Read twice and referred to the Committee on Environment and Public Works. (February 29, 2024)\

H.R.3277 “Energy Emergency Leadership Act” Placed on the Union Calendar, Calendar No. 331. (February 29, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

H.R.4669 “To provide for Department of Energy and Small Business Administration joint research and development activities, and for other purposes.” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (February 29, 2024)

S.3855 “A bill to interconnect the Electric Reliability Council of Texas to its neighbors, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 29, 2024)

S.3829 “A bill to address actions for applications to export liquefied natural gas, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 28, 2024)

S.3828 “A bill to prohibit the export of liquefied natural gas and petroleum products to certain countries.” Read twice and referred to the Committee on Energy and Natural Resources. (February 28, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 9 – March 2, 2024)

Department of Environmental Protection

54 Pa.B. 1072: Notices: “Applications, Actions and Special Notices”

 

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