November 20, 2023

Shale Law Weekly Review—Week of November 20, 2023

Community Impacts: US Supreme Court Denies Motion to Stay Upcoming Coastal Erosion Case Against BP ⚡
On Tuesday, November 7, 2023, the United State Supreme Court denied an application for stay brought before the Court by BP America Production, Hilcorp Energy, and Shell Oil. BP America Production Company, et al., Applicants v. Parish of Cameron, Louisiana, et al. (No. 23A364.) The underlying lawsuit was filed by the Parish of Cameron back in 2013, seeking damages for the alleged destruction of Louisiana’s coastlines and waters by the activities of the defendant oil and gas companies. More specifically, Plaintiffs seek enough damages to pay for the actual restoration of the Cameron Parish Coastal Zone, which amounts to more than $7 billion dollars. Originally filed in the 38th Judicial District Court of Louisiana, this case has made it all the way up to the Supreme Court, where the defendants began the proceedings by filing an application for an emergency stay on October 17, 2023. In the application, the applicants assert that a change of venue is necessary because the juror pool of the current forum is comprised of “biased jurors” with “an interest in the outcome of the case,” which violates the applicants’ right to Due Process. Moreover, the applicants assert that the highly public nature of the case has “tainted Cameron Parish as a venue,” which would also violate their Due Process if the case were to continue to trial in the Cameron Parish on November 27 of this year. In denying the application, Justice Alito offered no explanation to supplement the Court’s decision.

National Energy Policy: Department of Energy is Soliciting Bids to Replenish the Strategic Oil Reserves
On November 6, 2023, the U.S. Department of Energy’s (DOE) Office of Petroleum Reserve announced a solicitation for up to 3 million barrels of U.S. produced crude oil for delivery in January 2024. The stated goal of the DOE through this solicitation is to resupply the Strategic Oil Reserves (SPRs) which have been recently utilized to address the “global supply disruption” caused by the situation in Ukraine. Interested parties may submit a proposal through the System for Award Management (SAM) website. Proposals should be based on the Request for Proposal (RFP), provided in Exhibit J. Additionally, proposals must be of at least 300,000 barrels, with a 3,000,000 barrel max, meet the quality requirements listed in Section J, Exhibit C-1, be “no older than six months,” and fully comprised of oil produced in the United States. Pricing will be “determined by the average (to the $0.001) of daily settlements for the NYMEX WTI,” with further information provided in Part 1 Section B-5. All deliveries must be made to the SPR’s Bill Hill site between January 1, 2023, and January 31, 2024. Proposals will be received until 11:00 a.m., Central Time (CT), on November 20, 2023, and will remain open until 4:00 p.m., CT, on December 1, 2023. More information about the solicitation can be found in the DOE’s press release and the SPR’s information sheet.

Pipelines: Trans Mountain Expansion Pipeline Halted for Environmental and Safety Non-Compliances
On November 2, 2023, an Inspection Officer of the Canada Energy Regulator (CER) issued an order halting work on the Trans Mountain Expansion Pipeline until several environmental and safety non-compliance issues are remedied. The Inspection Officer visited the site near Abbotsford on October 25, 2023, finding damage to trees and foliage outside of the temporary worksite and downed amphibian exclusion fencing. Further, the Inspection Officer found spoil piles improperly stored, missing sediment fences, and flumes directing discharge water onto roads. The order required Trans Mountain to fix the non-compliances, determine their causes, submit to the CER a plan for how to address the non-compliances, and conduct a safety inspection before work can resume.

Pipelines: Trans Mountain Expansion Pipeline Halted for Environmental and Safety Non-Compliances
On November 2, 2023, an Inspection Officer of the Canada Energy Regulator (CER) issued an order halting work on the Trans Mountain Expansion Pipeline until several environmental and safety non-compliance issues are remedied. The Inspection Officer visited the site near Abbotsford on October 25, 2023, finding damage to trees and foliage outside of the temporary worksite as well as damage to various environmental protections. Further, the Inspection Officer found improperly stored waste, missing sediment fences, and fluid improperly discharged into the roadway. The order required Trans Mountain to fix the non-compliances, determine their causes, submit to the CER a plan for how to address the non-compliances, and conduct a safety inspection before work can resume.

 

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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 December 11, 2023, at 12:00 pm, The University of Scranton SBDC, the PA SBDC Agriculture Center of Excellence, and the Penn State Center for Agricultural and Shale Law are co-sponsoring a webinar titled “Making Laws Work for You, Part 2: Right to Farm, ACRE, and the Agritourism Activity Protection Act—Brook Duer with SBDC Ag Center of Excellence.” This webinar series will provide plain-language examples of how five Pennsylvania laws—the Agricultural Area Security Law; the Agricultural Conservation Easement Purchase Program; Clean & Green Taxation; Right to Farm Law; the Agriculture, Communities and Rural Environment (ACRE) law; and the Agritourism Activity Protection Act—can help you preserve and protect your farm’s economic vitality and viability.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Russia-Ukraine War Hampers Nigerian Oil Flows to Global Market: Official (Rigzone)

Appeals court orders BOEM to go ahead with Gulf of Mexico oil, gas lease sale (Oil & Gas Journal)

Baker Hughes’ gas technology selected for Texas LNG export terminal (Offshore Energy)

U.S. Department of Energy Announces 13 Projects to Receive up to $44 Million for Innovations in Enhanced Geothermal Systems (Department of Energy)

High Level OPEC-India Meeting Takes Place (Rigzone)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Sartain, Duhig Rule Claim is Unsuccessful (November 13, 2023)

Bloomberg, China’s Carbon Emissions to Drop Next Year on Clean Energy Boom (November 13, 2023)

Bloomberg, Europe Warns Methane Polluters as Bloc Pushes to Slash Emissions (November 14, 2023)

Energy Connects, ADNOC Drilling delivers robust growth in third quarter of 2023 (November 14, 2023)

Bloomberg, Oil Steady With Differing Views From IEA, OPEC Clouding Outlook (November 15, 2023)

Bloomberg, Oil Majors’ Carbon Capture Plans Dubbed a ‘Dangerous Delusion’ (November 16, 2023)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE and Partner Agencies Find Americans Face Increased Risk of Extreme Weather and Worsening Inequity (November 14, 2023)

Biden-Harris Administration Announces More than $31 Million in Clean Energy Funding to 19 States and Local Communities (November 14, 2023)

Biden-Harris Administration Invests $444 Million to Strengthen America’s Infrastructure for Permanent Safe Storage of Carbon Dioxide Pollution (November 14, 2023)

Biden-Harris Administration Announces $3.5 Billion to Strengthen Domestic Battery Manufacturing (November 15, 2023)

Department of Energy Celebrates Two Years of President Biden’s Historic Investment in America’s Clean Energy Future (November 15, 2023)

Biden-Harris Administration Announces $40 Million to Expand Clean Energy Workforce Training and Enhance U.S. Building and Manufacturing Efficiency (November 16, 2023)

Biden-Harris Administration Announces $169 Million to Accelerate Electric Heat Pump Manufacturing as Part of Investing in America Agenda (November 17, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Announces First-Ever ENERGY STAR Certified Distilleries (November 17, 2023)

Biden-Harris Administration Announces Availability of $15 Million to Tackle the Climate Crisis by Cutting Hydrofluorocarbon Pollution as Part of the Investing in America Agenda (November 17, 2023)

U.S. EPA’s ENERGY STAR Program Celebrates over 25 Years of Achievements in Lighting Efficiency (November 15, 2023)

Regional Tribes receive over $4M in EPA Climate Pollution Reduction Grants (November 14, 2023)

EPA Settlement Requires Action be Taken to Prevent Leaks, Secures Nearly $300,000 Penalty to Settle Alleged Clean Air Act Violations at Peerless Oil and Chemicals Inc. in Puerto Rico (November 13, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register November 11 – November 17, 2023)

Environmental Protection Agency

88 FR 80480: Rule: “Adoption and Submittal of State Plans for Designated Facilities: Implementing Regulations Under Clean Air Act Section 111(d)” (November 17, 2023)

88 FR 80222: Proposed Rule, Comments Close 2/15/2024: “Potential Future Regulation for Emergency Release Notification Requirements for Animal Waste Air Emissions Under the Emergency Planning and Community Right-to-Know Act (EPCRA)” (November 17, 2023)

88 FR 78692: Proposed Rule, Comments Close 01/02/24: “National Emission Standards for Hazardous Air Pollutants: Rubber Tire Manufacturing” (November 16, 2023)

Federal Energy Regulatory Commission

88 FR 78742: Notice: “Sunshine Act Meeting Notice” (November 16, 2023)

Susquehanna River Basin Commission

88 FR 78091: Notice: “Projects Approved for Consumptive Uses of Water” (November 14, 2023)

Other Agencies

88 FR 80276: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (November 17, 2023)

88 FR 80348: Notice: “Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Approving a Proposed Rule Change To Amend the Short Term Option Series Program To Permit the Listing of Two Wednesday Expirations for Options on Certain Exchange Traded Products” (November 17, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.6421 “To prohibit the Secretary of Energy from enforcing energy efficiency standards applicable to manufactured housing, and for other purposes.” Referred to the House Committee on Energy and Commerce. (November 15, 2023)

H.R.6178 “Bidirectional Electric Vehicle Charging Act of 2023” Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management. (November 14, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3315 “A bill to establish a voucher program for the purchase and installation of emission reducing technologies for Class 8 trucks, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (November 15, 2023)

S.3301 “A bill to provide for Department of Energy and Department of Agriculture joint research and development activities, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (November 14, 2023)

S.3289 “A bill to ratify and approve all authorizations, permits, verifications, extensions, biological opinions, incidental take statements, and any other approvals or orders issued pursuant to Federal law necessary for the establishment and administration of the Coastal Plain oil and gas leasing program, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (November 9, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Enforcement Efforts Funding Oil City Recreation Projects (November 13, 2023)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 46—November 18, 2023)

Department of Environmental Protection

53 Pa.B. 7247: Notice: “Extension of General Permit for the Beneficial Use of Biosolids by Land Application (PAG-08)”

 

Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Sergio Porras, Research Assistant
Jackie Schweichler, Staff Attorney