Shale Law Weekly Review—Week of May 15, 2023

Pipelines: DOT Proposes New Pipeline Leak Detection Rules ⚡
On Friday, May 5, 2023, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration proposed a new rule aimed at improving the detection and repair of leaks from old gas pipelines. The rule will take advantage of the $196 million in grants that were provided on April 5, 2023, to create the necessary jobs to repair, replace, and rehabilitate over 2.7 million miles of pipelines. As explained in the most recent announcement, if the actions proposed in rule are finalized, an approximate $2.3 billion in annual benefits will be realized through improved efficiency and reductions in pollution and waste, particularly from methane emissions and other air polluting gases.

GHG Emissions: Conservation Group Sues EPA for Oil Company Permitting Procedures
On Wednesday, May 3, 2023, conservation group Wildearth Guardians filed a complaint against the Environmental Protection Agency (EPA) in the New Mexico District Court, alleging that the agency failed to correct two air pollution operating permits before the nondiscretionary deadline prescribed by the Clean Air Act (CAA). Wildearth Guardians v. EPA, No. 1:23-cv-00379-SCY-KK. The two operating permits at issue were granted by the New Mexico Environment Department (NMED) to Frac Cat and Big Lizard Compressor Stations, which are operated by Lucid Energy Delaware, LLC in Lea County, New Mexico. The EPA initially objected to the issuance of the two permits because the NMED failed to show that the compressor stations would, through their operations, protect National Ambient Air Quality Standards for ozone. Further, the stations did not make a showing of proficient standards for monitoring of emissions venting. The plaintiffs allege that after New Mexico failed to respond to the EPA’s objections to the permits within 90 days, the EPA Administrator failed to issue or deny the permits. Therefore, the EPA has violated its nondiscretionary duty under the CAA by failing to issue or deny the permits before the nondiscretionary deadline.

 

Oil & Gas Law & Policy Resources:

Bloomberg, Wildfires in Canada Force Evacuations, Cut Oil and Gas Output (May 8, 2023)

Mallen, et al., Summary of Senate Energy and Natural Resources Committee Hearing on FERC Oversight (May 9, 2023)

McFarland, EP Energy v. Storey Minerals – a $41 million most-favored-nations clause (May 9, 2023)

Sartain, Lessee Can’t Satisfy Texas Supreme Court’s Force Majeure Requirements (May 10, 2023)

Webb, Rethinking the Willow Project: Did BLM Have Other Options? (May 10, 2023)

Silverman-Roati, Cities, counties, and states score major procedural win in climate liability suits against fossil fuel companies (May 12, 2023)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks May 6- May 12, 2023:

Ohio shale counties collect nearly $350 million in property taxes from oil and gas production (Shale Gas Reporter)

Should bonds be used to fix Pa.’s abandoned well problem? (Shale Gas Reporter)

9 states, DC and NYC call for federal action on gas stoves (The Hill)

Feds seek one of the biggest fines ever for Calif. oil spill (PoliticoPro)

Public health versus costs: EPA hears both sides on truck rule (PoliticoPro)

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

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

Biden-Harris Administration Releases Nearly $600 Million to Modernize and Advance Water Power Across America (May 8, 2023)

DOE Announces $40 Million for More Efficient Cooling for Data Centers (May 9, 2023)

Biden-Harris Administration Invests $26 Million to Support a Modern, Reliable, and Resilient American Clean Energy Grid (May 10, 2023)

Biden-Harris Administration Announces $50 Million To Boost Clean Energy Solutions and Cut Costs for Rural America (May 11, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA Proposes New Carbon Pollution Standards for Fossil Fuel-Fired Power Plants to Tackle the Climate Crisis and Protect Public Health (May 11, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register May 6–May 12, 2023):

Energy Department

88 FR 30508: Proposed Rule, Comments Close 7/10/23: “Energy Conservation Program: Energy Conservation Standards for Automatic Commercial Ice Makers” (May 11, 2023)

Environmental Protection Agency

88 FR 29827: Rule: “Air Plan Approval, Conditional Approval, Limited Approval and Limited Disapproval; Colorado; Serious Attainment Plan Elements and Related Revisions for the 2008 8-Hour Ozone Standard for the Denver Metro/North Front Range Nonattainment Area” (May 9, 2023)

Bureau of Land Management

88 FR 29689: Notice, Comments Close 6/7/23: “Opportunity To Comment on Changes to the Proposed Four Rivers Field Office Resource Management Plan, Idaho” (May 8, 2023)

88 FR 29689: Notice: “Notice of Availability of the Draft Resource Management Plan Amendment and Supplemental Environmental Impact Statement for the 2015 Miles City Field Office Approved Resource Management Plan, Montana” (May 8, 2023)

88 FR 29691: Notice: “Notice of Availability of the Draft Resource Management Plan Amendment and Supplemental Environmental Impact Statement for the 2015 Buffalo Field Office Approved Resource Management Plan, Wyoming” (May 8, 2023)

88 FR 29591: Proposed Rule, Comments Close 6/7/23: “Air Plan Approval; Florida; Amendments to Stationary Sources-Emission Standards” (May 8, 2023)

Other Agencies

88 FR 30750: Notice, Comments Close 7/11/23: “Proposed Data Collection Submitted for Public Comment and Recommendations” (May 12, 2023)

88 FR 30442: Rule: “Economic Growth Regulatory Relief and Consumer Protection Act: Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE)” (May 11, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.3277: “To amend the Department of Energy Organization Act with respect to functions assigned to Assistant Secretaries, and for other purposes.” Referred to the House Committee on Energy and Commerce. (May 11, 2023)

H.R.3216: “To amend the Rural Electrification Act of 1936 to reauthorize and improve the ReConnect loan and grant program, and for other purposes.” Referred to the Committee on Agriculture, and in addition to the Committee on Energy and Commerce, 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. (May 11, 2023)

H.R.3182 “To amend the Energy Policy Act of 2005 to require the Secretary of Energy to create a plan for research, development, and commercialization projects capable of making significant reductions in the greenhouse gas emissions or carbon intensity of qualified fuel production facilities, and for other purposes.” Referred to the Committee on Science, Space, and Technology, and in addition to the Committee on Energy and Commerce, 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. (May 10, 2023)

H.R.3180: “To require the Secretary of Energy to establish a program to encourage deployment of electric school buses and vehicle-to-grid technologies and applications, and for other purposes.” Referred to the House Committee on Energy and Commerce. (May 10, 2023)

H.R.3137: “To require the Secretary of Energy to submit a report on radioactive isotope dependency and how advanced nuclear reactors can reduce such dependency.” Referred to the House Committee on Energy and Commerce. (May 9, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.1548 “A bill to require the Secretary of Energy to establish a program to encourage deployment of electric school buses and vehicle-to-grid technologies and applications, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (May 10, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 19 May 13, 2023)

DEPARTMENT OF ENVIRONMENTAL PROTECTION

Pennsylvania Energy Development Authority

53 Pa.B. 2678:Notices: “Natural Gas Service”

PENNSYLVANIA LEGISLATURE

HR 105 “A Resolution urging the United States Environmental Protection Agency to re-examine the United States Pipeline and Hazardous Materials Safety Administration’s hazardous materials regulations and make any necessary changes that would help to provide better protection to the public and the environment and urging the United States Congress to pass the Decreasing Emergency Railroad Accident Instances Locally (DERAIL) Act to provide for the tightening of regulations for trains carrying hazardous materials.” Referred to ENVIRONMENTAL RESOURCES AND ENERGY, [House] (May 10, 2023)

 

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