Shale Law Weekly Review—Week of May 30, 2022

Pipelines: PHMSA Announces New Rulemaking for Carbon Dioxide Pipelines ⚡
On May 26, 2022, the U.S. Pipelines and Hazardous Materials Safety Administration (PHMSA) announced a new rulemaking to update standards for carbon dioxide (CO₂) pipelines. Additional new measures include an updated nationwide advisory bulletin and research solicitations to strengthen current pipeline safety. According to PHMSA, this rulemaking, and other enforcement actions, were initiated in response to the 2020 Satartia, Mississippi CO₂ pipeline failure.

Climate Change: Massachusetts Supreme Judicial Court Affirms Denial of Exxon Mobil’s Motion to Dismiss Lawsuit
On May 24, 2022, the Massachusetts Supreme Judicial Court entered an order affirming the Massachusetts Superior Court’s denial of Exxon Mobil’s special motion to dismiss which was based on the state’s “anti-SLAPP statute” or Strategic Litigation Against Public Participation law. The civil enforcement action, Commonwealth v. Exxon Mobil Corp. (docket no. SJC-13211), was brought by the Massachusetts Attorney General in October 2019 for multiple alleged violations regarding “the company’s communications with investors and consumers related to the impact of climate change.” The court found that anti-SLAPP statute did not apply to enforcement actions brought by the Attorney General.

Federal Lands: DOI Receives $33 Million to Close Orphaned Wells
On May 25, 2022, the U.S. Department of the Interior announced the Bipartisan Infrastructure Law will provide $33 million to provide jobs “plugging, remediating, and reclaiming” orphaned wells on public lands. The investment is a portion of a total of $275 million provided by the Bipartisan Infrastructure Law to address well sites. Four bureaus within the DOI and U.S. Department of Agriculture will tackle 277 high-priority wells across nine states and are “expected to immediately begin the process to acquire plugging and reclamation services through contracts and grants.”

Pipelines: FERC Approves Three Natural Gas Pipeline Expansion Projects in April 2022
On May 24, 2022, the U.S. Energy Information Administration updated its Natural Gas Pipeline Project Tracker to reflect the most recent Federal Energy Regulation Commission’s project approvals. FERC approved the Evangeline Pass Expansion Project and the Alberta Xpress Expansion Project, both of which will deliver gas to liquefied natural gas (LNG) terminals in Louisiana. FERC also approved the North Baja Xpress Project to expand capacity to transport natural gas to Baja California, Mexico. The purpose of these projects is to “increase U.S. natural gas exports via pipeline and as liquefied natural gas (LNG).”

 

Oil & Gas Law & Policy Resources:

Mabry, Markowitz, Mitchell, Hodge, & Whites, The (Carbon) Cost of Doing Business: Private Companies Prepare to Assess and Report GHG Emissions to Value Chain Partners, (May 23, 2022)

McFarland, Mitchell v. MAP Resources-Due Process Meets No-Extrinsic-Evidence Rule, (May 23, 2022)

Sartain & Cuppetilli, Clause to Protect Against Drainage in a Mineral Lease Deemed Ambiguous, (May 25, 2022)

Clark, Ag and Food Law Update, (May 26, 2022)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks May 15, 2022-May 21, 2022:

Dicey Long-term Natural Gas Outlook Stifles LNG Investment (Hart Energy)

Natural gas, natural fit: Proposed funding to boost energy supply, help Michigan famers (Michigan Farm News)

EU passes ‘massive’ increase in green energy to help end reliance on Russia (The Guardian)

In US, states struggle to replace fossil fuel tax revenue (AP News)

Energy Secretary Says Administration is “All-In” On Renewable Fuels (Brownfield Ag News)

Connect with us on Facebook.  Every week we post the CASL Ledger detailing our publications and activities from the week. 

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

DOE Announces Additional Notice of Sale of Crude Oil From The Strategic Petroleum Reserve (May 24, 2022)

U.S. ENVIRONMENTAL PROTECTION AGENCY

Joint Statement by the U.S. Environmental Protection Agency, the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, and the German Environment Agency (May 25, 2022)

Boston Makes the Top Ten of U.S. Cities with the Most Energy Star Certified Buildings (May 24, 2022)

FEDERAL EXECUTIVE AGENCIES (Federal Register May 22–May 28, 2022):

Environmental Protection Agency

87 FR 31798 Proposed Rule, comments close July 11, 2022: “Federal Implementation Plan Addressing Reasonably Available Control Technology Requirements for Certain Sources in Pennsylvania” (May 25, 2022)

Natural Resources Revenue Office

87 FR 32050 Notice: “Agency Information Collection Activates: Federal Oil and Gas Valuation” (May 26, 2022)

 Other Agencies

87 FR 31754 Proposed Rule, comments close July 11, 2022: “Energy Labeling Rule” (May 25, 2022)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.4231 “STREAM Act” Committee on Energy and Natural Resources Subcommittee on Water and Power. Hearings held. (May 25, 2022)

S.4280 “A bill to require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater, and for other purposes” Read twice and referred to the Committee on Energy and Natural Resources. (May 19, 2022)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 52, No. 21—May 21, 2022)

PENNSYLVANIA LEGISLATURE

HB 1577: “An Act amending the act of October 31, 2006 (P.L. 1210, No. 133), known as the Price Gouging Act, further providing for definitions, for price gouging prohibited and for investigation.” Removed from table. [House] (May 24, 2022).

Written by:
Kendal Ashman, Research Assistant
Ethan Durand, Research Assistant
Jackie Schweichler, Staff Attorney