Shale Law Weekly Review—Week of May 01, 2023

LNG Infrastructure: FERC Approves Two LNG Projects in Brownsville, Texas ⚡
On Friday, April 21, 2023, the Federal Energy Regulatory Commission (FERC) authorized the construction and operation of two major liquid natural gas projects proposed by LNG companies in Brownsville, Texas. In their first order, FERC found the LNG project proposed by Rio Grande LNG to be consistent with the public interest and in compliance with the commission’s analysis of environmental justice impact. Similarly, in their second order, FERC found that the project proposed by Texas LNG, after taking into account the social cost of carbon and the potential impact on environmental justice, is “not inconsistent with the public interest.” Six days after these approvals, the Department of Energy’s Office of Fossil Energy and Carbon Management issued two orders authorizing additional long-term exports from other LNG facilities being constructed in Sabine, Texas by Golden Pass LNG and in Lake Charles, Louisiana by Magnolia LNG. As explained in the announcement, once completed, the Golden Pass facility will be permitted to export an additional .35 billion cubic feet per day (Bcf/d) of LNG, while Magnolia will be allowed to export an additional .15 Bcfd/d to legally permitted countries.

GHG Emissions: Pennsylvania IRRC Approves New Regulations on Conventional Oil and Gas Infrastructure
On Thursday, April 20, 2023, the Independent Regulatory Review Commission (IRRC) approved a final regulation that applies to conventional oil and gas sources of volatile organic compound (VOC)  emissions. As explained in the regulatory analysis form, VOC emissions are a major contributor to the formation of ground-level ozone, a toxic gas with environmental and public health implications. To comply with these new requirements, sources must implement reasonably available technology for the control and limitation of VOC emissions. The specific sources subject to the new requirements include natural gas-driven controllers and pumps, reciprocating and centrifugal compressors, gas processing plants and storage vessels, oil and gas wells, and more. By complying with this order, oil and gas operators must reduce methane emissions from their facilities.

Public Lands: Ohio Judge Denies Request to Block Law Expanding Oil and Gas Development on Public Lands
On Monday, April 10, 2023, the Franklin County Court of Common Pleas denied the Ohio Environmental Council’s motion for a temporary restraining order, pending a motion for a preliminary injunction, on a new leasing law that seeks to expand the exploration and development of natural gas on the public lands of Ohio. Ohio Environmental Council et al. v. State of Ohio et al., No. 23CV002403. The new law in dispute, House Bill 507, amends the Ohio Revised Code by requiring, rather than permitting, state agencies to lease public lands for gas exploration and development. Plaintiffs contend that this mandatory leasing was legislated through an unconstitutional process and, since becoming effective on April 7, 2023, has threatened the “recreational, cultural, and aesthetic interest” of public lands.  In the decision, Judge Cocroft explains that, because so few leases have been granted since state agencies were given the ability to do so twelve years ago, there is little reason to believe that the new provision will result in sufficiently immediate and irreparable injury to justify a temporary restraining order. Further, because the plaintiffs failed to challenge the constitutionality of the bill in the ninety days between its enactment and Governor DeWine signing it into law, they cannot argue that they were deprived of a constitutionally fair process. In closing, the court ordered the parties to propose a schedule for a hearing on Plaintiff’s motion for a preliminary injunction.

 

Oil & Gas Law & Policy Resources:

Bloomberg, A Golden Week for China Air Travel May Stem Drop in Oil Prices (April 23, 2023)

Bloomberg, Oil Rises in Volatile Session as Traders Assess Demand Signals (April 24, 2023)

Sartain, Ohio Federal Court Considers Subsurface Trespass (April 24, 2023)

Bloomberg, Oil Falls a Second-Straight Week Even With Macro Price Boost (April 28, 2023)

Bloomberg, Biden EPA to Allow Summer Sales of Higher-Ethanol E15 Gasoline (April 28, 2023)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks April 22 – April 28, 2023:

Texas LNG gets renewed FERC approval following remand (Oil & Gas Journal)

Board approves new air pollution standards for conventional oil and gas industry, over objections (Pittsburgh Post-Gazette)

Tellurian gets FERC permission to build Driftwood Line 200-300 system (Oil & Gas Journal)

Oil and gas drilling in state parks set to expand, while some say taxes on it are too low (Ohio Captial Journal)

Supreme Court declines Exxon, Chevron push to move state lawsuits to federal court (The Hill)

Connect with us on Facebook. 

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

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

DOE Launches New Consumer Energy Savings Hub (April 24, 2023)

DOE Announces $13 Million to Support Community Geothermal Heating and Cooling Solutions (April 25, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA Issues Emergency Fuel Waiver for E15 Sales (April 28, 2023)

Tesoro to Pay $27.5 Million For Violating Previous Court Order Requiring Them to Reduce Air Pollution at Their Martinez, Calif. Refinery (April 27, 2023)

EPA Names 2023 Top Cities for ENERGY STAR Certified Buildings (April 26, 2023)

Biden-Harris Administration Announces $400 Million Grant Program to Fund Clean School Buses that Reduce Emissions and Protect Children’s Health (April 24, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register April 22–April 28, 2023):

Energy Department

88 FR 25272: Rule: “Policy Statement on Export Commencement Deadlines in Authorizations To Export Natural Gas to Non-Free Trade Agreement Countries” (April 26, 2023)

Environmental Protection Agency

88 FR 26382: Rule: “Protection of Stratospheric Ozone: Listing of Substitutes Under the Significant New Alternatives Policy Program in Refrigeration, Air Conditioning, and Fire Suppression” (April 28, 2023)

88 FR 25926: Proposed Rule, Comments Close 6/16/23: “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles-Phase 3” (April 27, 2023)

88 FR 25574: Proposed Rule, Comments Close 5/30/23: “National Emission Standards for Hazardous Air Pollutants: Ethylene Production, Miscellaneous Organic Chemical Manufacturing, Organic Liquids Distribution (Non-Gasoline), and Petroleum Refineries Reconsideration” (April 27, 2023)

88 FR 25309: Proposed Rule, Comments Close 5/26/23: “Air Plan Partial Approval and Partial Disapproval; Missouri; Revision to Sulfur Dioxide Control Requirements for Lake Road Generating Facility” (April 26, 2023)

88 FR 25080: Proposed Rule, Comments Close 6/26/23: “New Source Performance Standards for the Synthetic Organic Chemical Manufacturing Industry and National Emission Standards for Hazardous Air Pollutants for the Synthetic Organic Chemical Manufacturing Industry and Group I & II Polymers and Resins Industry” (April 25, 2023)

88 FR 24854: Proposed Rule, Comments Close 6/23/23: “National Emission Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review” (April 24, 2023)

Bureau of Land Management

88 FR 25684: Notice: “Notice of Termination of Preparation of Environmental Impact Statement for the Hiawatha Regional Energy Development Project, Wyoming” (April 27, 2023)

Ocean Energy Management Bureau

88 FR 25247: Notice, Comments Close 6/12/23: “Commercial Leasing for Wind Power Development on the Gulf of Maine Outer Continental Shelf (OCS)-Call for Information and Nominations” (April 26, 2023)

Other Agencies

88 FR 25707: Notice, Comments Close 5/30/23: “Petition for Modification of Application of Existing Mandatory Safety Standards” (April 27, 2023)

88 FR 25620: Notice: “Announcement of Approved International Trade Administration Trade Mission” (April 27, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.2888 “To require the Secretary of Energy to establish a program to incentivize investment in facilities that carry out the metallurgy of rare earth elements and the production of finished rare earth products, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Education and the Workforce, and Financial Services, 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. (April 26, 2023)

H.R.2875 “To direct the North American Electric Reliability Corporation, in consultation with the Secretary of Energy, the Federal Energy Regulatory Commission, Regional Transmission Organizations, and Independent System Operators, to submit a report to Congress on the reliability of the electric grid.” Referred to the House Committee on Energy and Commerce. (April 26, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.1324 “A bill to establish the Southwestern Power Administration Fund, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (April 26, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES
Shapiro Administration Unveils New Interactive Soil and Water Sampling Map as Results Continue to Show No Contamination after the Norfolk Southern Train Derailment (April 24, 2023)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 17 April 29, 2023)

SUSQUEHANNA RIVER BASIN COMMISSION

53 Pa.B. 2406: Notices: “Public Hearing”

PENNSYLVANIA LEGISLATURE

HB 137 “An Act establishing the Solar for Schools Grant Program; providing for powers and duties of the Department of Community and Economic Development; and making an appropriation.” Reported with request to re-refer to CONSUMER PROTECTION, TECHNOLOGY AND UTILITIES [House] (April 25, 2023)

 

Written by:
Kole Zellers, Research Assistant
Kendal Ashman, Research Assistant
Jackie Schweichler, Staff Attorney