Shale Law Weekly Review—Week of November 22, 2021

Pipelines: Bridger Pipeline, LLC Agrees to Pay $2 million to Montana in Natural Resources Damages Caused by Pipeline Spill Incident
On November 17, 2021, the United States and the state of Montana filed a lawsuit against Bridger Pipeline, LLC, the owner of the Poplar Pipeline, seeking recovery of damages for injury caused by a pipeline break and spill into the Yellowstone River in January 2015. USA, et al. v. Bridger Pipeline, LLC, USDC Montana, No. 1:21-cv-122. The same day, the parties agreed to settle the dispute through the payment of $2 million to Montana. A press release from the U.S. Attorney’s Office for the District of Montana indicates that of the $2 million, $1,739,795 will be deposited into a natural resource damages state fund and used to address the alleged injuries. The remaining $260,205 will be paid to the U.S. Department of Interior Natural Resource Damage Assessment and Restoration Fund “as reimbursement for the United States’ natural resource damage assessment costs.”

LNG Infrastructure: The U.S. Department of Transportation (DOT) Proposes to Temporarily Prohibit LNG Transportation by Rail
On November 8, 2021, the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) published in the Federal Register a notice of proposed rulemaking (86 FR 61731) to temporarily suspend the “Hazardous Materials: Liquefied Natural Gas by Rail” Final Rule  issued in July 2020 (85 FR 44994). The 2020 Final Rule became effective on August 24, 2020, and authorized the transportation of liquefied natural gas (LNG) in rail tank cars. PHMSA proposed to prohibit LNG transportation by rail until PHMSA issues a final rule concerning the safe transportation of LNG by railroad tank cars (RIN 2137-AF54) or June 30, 2024, whichever comes earlier.

Public Lands: Interior holds first New Oil and Gas Lease Sale Since the Pause on Lease Sales was Reversed Earlier this Year
On November 17, 2021, the Department of the Interior (DOI) held its first oil and gas lease sale since the Administration’s pause on such sales was reversed earlier this year. In a Final Notice of Sale, the DOI notified potential lessees that it would receive bids for blocks in the Gulf of Mexico Outer Continental Shelf. In a publication of sale day statistics, the DOI reported that it received $191,688,984.00 in high bids resulting in the lease of 308 out of 15,100 blocks. For more information on the pause on oil and gas lease sales, see the Shale Law Weekly Review – Week of January 25, 2021 and the Shale Law Weekly Review – Week of April 26, 2021.

Federal Lands:  Biden Administration to Propose a New Leasing Ban Around Tribal Site in New Mexico
On November 15, 2021, the Biden Administration announced that it would propose a 20-year ban on oil, gas, and mining leases around Chaco Culture National Historical Park in New Mexico. The proposed withdrawal establishes a 10-mile buffer around already-protected lands that have spiritual and historical significance for tribes in the area. A leasing ban would cover “approximately 325,000 acres of federal minerals under nearly 950,000 surface acres” and would last for 20 years. The Biden Administration said that it would publish a notice of the proposed withdrawal in the Federal Register in the coming weeks, with a 60-day comment period.

Pipelines: Pennsylvania Public Utilities Commission Approves April 2021 Initial Decision Requiring Sunoco to Supplement Safety Materials
On November 18, 2021, the Pennsylvania Public Utilities Commission (PUC) voted 3-0 to require Sunoco to enhance or supplement public safety awareness and emergency preparedness materials and programs with respect to its Mariner East pipelines. The initial decision was made by an Administrative Law Judge in April 2021, after hearing testimony from people and organizations that alleged that Sunoco had not done enough to mitigate risks from the Mariner East pipelines construction. The PUC Commissioners incorporated the initial decisions’ conclusions fully into the Opinion and Order issued on Thursday. All the exceptions to the initial decision that were requested by both the complainants and Sunoco were denied by the three commissioners.

 

Shale Law/Policy Resources of Interest:

John McFarland, Solar Farms vs. Oil and Gas Development (November 19, 2021).

Amy Turner and Michael Burger, Cities Climate Law: A Legal Framework for Local Action in the U.S. Offers Guide for Local Policymakers (November 18, 2021).

Brigit Rollins, Court Vacates CWA Section 401 Certification Rule (November 18, 2021).

Paul Greening & Euan Strachan, COP26 and Article 6: Where Did Singapore End Up? (November 15, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

DEP Offers “DEP Grants 101” Webinar for First-Time Applicants (November 19, 2021).

DEP Proposal to Set Stricter PFAS Limits Approved by Environmental Quality Board (November 18, 2021).

U.S. Department of Energy

Statement by Secretary Granholm on House Passage of the Build Back Better Act (November 19, 2021).

DOE Celebrates Signing of Landmark Bipartisan Infrastructure Deal (November 15, 2021).

U.S. Environmental Protection Agency

EPA Report: U.S. Cars Achieve Record High Fuel Economy and Low Emission Levels as Companies Fully Comply with Standards (November 19, 2021).

EPA Awards More Than $77 Million for Diesel Emissions Reduction Projects (November 18, 2021).

EPA Announces Appointments of Regional Administrators for Regions 2, 4, and 8 (November 18, 2021).

EPA Announces Outcomes from White House Tribal Nations Summit (November 16, 2021),

EPA Announces Public Hearing on Proposal to Cut Methane and Other Pollution from the Oil and Natural Gas Industry (November 15, 2021).

U.S. EPA fines The Gas Company over Clean Air Act violations in Kapolei (November 15, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 47—November 20, 2021)

Department of Conservation and Natural Resources

51 Pa.B. 7248 Notice: “Execution of Oil and Gas Lease for Publicly-Owned Streambeds.”

Susquehanna River Basin Commission

51 Pa.B. 7326 Notice: “Projects Approved for Consumptive Uses of Water [for October].”

Pennsylvania Legislature

HB 1842 “An Act amending. . . The Clean Streams Law, in other pollutions and potential pollution, providing for notice of discharge endangering public health or environment.” Removed from table [House] (November 17, 2021).

HB 2075 “An Act providing for the abrogation of regulations relating to the Pennsylvania Heavy-Duty Diesel Emissions Control Program and for the applicability of Federal standards.” Removed from table [House] (November 15, 2021).

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register November 15 – November 19, 2021):

Energy Department

86 FR 63318 Proposed Rule: “Energy Conservation Program: Energy Conservation Standards for Distribution Transformers, Webinar and Availability of the Preliminary Technical Support Document” (November 16, 2021).

Environmental Protection Agency

86 FR 66096 Rule: “National Emission Standards for Hazardous Air Pollutants: Carbon Black Production and Cyanide Chemicals Manufacturing Residual Risk and Technology Reviews, and Carbon Black Production Area Source Technology Review” (November 19, 2021).

86 FR 64385 Rule: “National Emission Standards for Hazardous Air Pollutants: Flexible Polyurethane Foam Fabrication Operations Residual Risk and Technology Review and Flexible Polyurethane Foam Production and Fabrication Area Source Technology Review” (November 18, 2021).

86 FR 64115 Rule: “Significant New Use Rules on Certain Chemical Substances (21-2.F) [‘for chemical substances that were the subject of premanufacture notices (PMNs)’]” (November 17, 2021).

86 FR 63110 Proposed Rule: “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” (November 15, 2021).

Federal Energy Regulatory Commission

86 FR 64467 Notice: “Iroquois Gas Transmission System, L.P.; Notice of Availability of The Final Environmental Impact Statement for The Proposed Enhancement by Compression Project” (November 18, 2021).

86 FR 64464 Notice: “Driftwood Pipeline LLC; Notice of Amendment to Application and Establishing Intervention Deadline [Increase of Proposed Capacity]” (November 18, 2021).

86 FR 64195 Notice: “Golden Pass Terminal, LLC; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed Golden Pass LNG Export Variance Request No. 15 Amendment” (November 17, 2021).

86 FR 63374 Notice: “Technical Conference on Greenhouse Gas Mitigation: Natural Gas Act Sections 3 and 7 Authorizations; Supplemental Notice of Technical Conference [on November 19, 2021]” (November 16, 2021).

86 FR 63015 Notice: “Texas Gas Transmission, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline [Pipeline Replacement]” (November 15, 2021).

86 FR 63008 Notice: “Florida Gas Transmission Company, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline [Compressor Modification]” (November 15, 2021).

86 FR 63016 Notice: “Florida Gas Transmission Company, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline [Compressor Modification]” (November 15, 2021).

Land Management Bureau

86 FR 63059 Notice: “Notice of Filing of Plats of Survey, Colorado [Sixth Principal Meridian and New Mexico Principal Meridian]” (November 15, 2021).

Natural Resources Revenue Office

86 FR 64523 Notice: “Agency Information Collection Activities: Indian Oil and Gas Valuation” (November 18, 2021).

Pipeline and Hazardous Materials Safety Administration

86 FR 63266 Rule: “Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments” (November 15, 2021).

Tennessee Valley Authority

86 FR 64290 Notice: “Meeting of the Regional Energy Resource Council [December 8, 2021]” (November 17, 2021).

Transportation Security Administration

86 FR 63050 Notice: “Extension of Agency Information Collection Activity Under OMB Review: Pipeline Corporate Security Review” (November 15, 2021).

House Energy and Commerce Committee Actions:

H.R.5991 “Science-Based Emissions Standards Act of 2021 [Ensuring Study of Marginal Well Emissions by EPA and DOE]” Referred to the House Committee on Energy and Commerce (November 17, 2021).

H.R.5987 “PFAS Definition Improvement Act” Referred to the House Committee on Energy and Commerce (November 16, 2021).

Senate Energy and Natural Resources Committee:

S.2433 “Federal Land Asset Inventory Reform Act of 2021 [Instructing the Department of the Interior to Create and Maintain an Inventory for Federal Real Property and Take Related Actions]” Committee on Energy and Natural Resources. Ordered to be reported with an amendment in the nature of a substitute favorably (November 18, 2021).

S.3214 “SMART Energy Act [Promotes Production of Fossil Fuel and Renewable Energy Domestically]” Read twice and referred to the Senate Committee on Energy and Natural Resources (November 16, 2021).

S.3205 “Industrial Energy-Efficient Technology Act of 2021 [to Improve Industrial Energy Efficiency and Implement a Flex-Tech Program]” Read twice and referred to the Senate Committee on Energy and Natural Resources (November 15, 2021).

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks November 13–November 19, 2021:

China Urges Developed Countries to Take the Lead in Cutting Out Coal, The Guardian

Biden Administration Auctions off Drilling Leases in Gulf of Mexico, The Hill

America’s Magical Oil Patch Is Out of Tricks, Wall Street Journal

Citing High Gas Prices, Biden Asks FTC to Redouble Probe of Possible ‘Illegal Conduct’ Reuters

Germany Suspends Procedure to Certify Nord Stream 2, Rigzone

Gas Price Relief on the Horizon as Global Oil Supply Picks Up, Says IEA, CNN

Judge Rules Enbridge Pipeline Case with Michigan Be Heard in U.S. Federal Court, Reuters

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Written by:
Noah Gochnauer, Research Assistant
Megan Geuss, Research Assistant
Chloe Marie, Research Specialist
Jackie Schweichler, Staff Attorney