October 9, 2023

Shale Law Weekly Review—Week of October 9, 2023

National Energy Policy: The White House Publishes Directive on the Social Cost of Greenhouse Gases in Guiding Executive Agency Decisions ⚡
On September 21, 2023, the White House published a fact sheet directing federal agencies to consider the Social Cost of Greenhouse Gases (SC-GHG) when making budgeting decisions, during procurement processes, and in National Environmental Policy Act (NEPA) related environmental reviews. The fact sheet noted that these directives stem from recommendations made by an Interagency Working Group (IWG) charged with analyzing the impacts of SC-GHG pursuant to Executive Order 13990. According to the directive, accounting for the SC-GHG “allows better comparisons to other costs and benefits of agency decisions that may also be presented in dollar figures.” The White House expressed a hope that agency decisions made in accordance with this directive would “combat the climate crisis, further protect communities, and save hardworking families money.”

Production and Operation: West Virginia District Court Permits Three Mineral Owners to Intervene as Defendants in Well-Plugging Lawsuit
On Friday, September 22, 2023 the Northern District Court of West Virginia granted a Motion to Intervene as Defendants which was filed by three West Virginia (WV) mineral owners who asserted a direct interest in the plaintiffs’ claims to “plug thousands of alleged abandoned gas wells” in the state. In support of their motion, the three mineral owners argued that if these wells were plugged, they would be deprived of royalty payments from wells that are currently producing or capable of rehabilitation. In response, Plaintiffs argued that the interests of the intervenors were already represented by those currently involved in the action. The District Court found that the three intervenors have a mineral interest in Well 047-039-02361, a gas well that Plaintiffs seek to plug for lack of production since 2018. To address this allegation, the Court pointed to the fact that the well is listed as an “Active Well” on the WV Department of Environmental Protection Office of Oil and Gas website and that the well’s chart shows gas production in 2022. Because the well is still producing, the intervenors were deemed to have a direct interest in the outcome of Plaintiffs’ claim and permitted to act as defendants.

LNG Infrastructure: FERC Approves Permit for the Port Authur LNG Phase 2 Expansion
On September 21, 2023, Sempra Infrastructure (Sempra) announced that the Department of Energy (DOE) Federal Energy Regulatory Commission (FERC) approved a permit for the Port Arthur LNG Phase 2 expansion. Sempra states that the expansion will add two additional liquefaction trains, increasing the site’s output by 13 million tonnes per annum (Mtpa). Phase 1 of Sempra’s Port Arthur LNG is currently under construction with one liquefaction train scheduled to be operational in 2027 and another in 2028.

 

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.

Quarterly Dairy Legal Webinar – Penn State Law’s Center for Agricultural and Shale Law will conduct the latest installment in its Quarterly Dairy Legal Webinar series.  Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter, as well as including an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

On Wednesday, October 25, 2023, from 1:00–2:00pm ET, Center Staff Attorney Brook Duer will present a webinar entitled, “Where Will Pennsylvania’s Solar Future Be Located and How Will It Get There?” More information here can be found on the WeConservePA website.

  • October 25, 2023, 1 pm – 2 pm (ET). Where Will Pennsylvania’s Solar Future Be Located and How Will It Get There? (Register)

On Wednesday, October 25, 2023, from 1:00–3:00pm ET, PA Farm Link, in collaboration with the Penn State Center for Agricultural and Shale Law, Sustainable Agricultural Research & Education Program, and the Pennsylvania Department of Agriculture, will present “Medicaid Look-back Ag Professional Continued Education Program” with guest speaker MacGregor Brillhart, attorney at Stock & Leader. More information is available on the PA Farm Link event page.

  • October 25, 2023, 1 pm – 3 pm (ET). Medicaid Look-back Ag Professional Continued Education Program. (Register)

On Thursday, October 26, 2023, from 10:30am–1:30pm, the PA Agricultural Ombudsman Program, in collaboration with the Penn State Center for Agricultural and Shale Law and Pysher & Associates, Inc., will present “ACRE Law 101: Agriculture, Stormwater, and Local Regulations with PA Agricultural Ombudsman Program” with guest speaker Robert Willig, Senior Deputy Attorney General for the Pennsylvania Office of the Attorney General, joined by Brook Duer, Center Staff Attorney. More information available here.

  • October 26, 2023, 10:30 am – 1:30 pm (ET). ACRE Law 101: Agriculture, Stormwater, and Local Regulations with PA Agricultural Ombudsman Program.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

OPEC+ maintains oil policy stability, Saudi Arabia and Russia continue production cuts (Oil & Gas Journal)

Oil and Gas Sector Reacts to Federal Offshore Leasing Program (Rigzone)

US LNG exports slump in September as plant outages pare output (Reuters)

U.S. Crude Inventories Dive By 4.210 Million Barrels, API Reports (Oil Price)

McKinsey: Shale Poised for Big Role in Long-term LNG Demand (Hart Energy)

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

Oil & Gas Law & Policy Resources:

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Announces $5 Million to Support Cleaner Domestic Manufacturing (October 6, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Greenhouse Gas Reporting Program: 2022 Data Publication (October 5, 2023)

EPA Approves Joint Task Force-Red Hill Pre-Defueling Preparedness Report (October 3, 2023)

EPA settlement with XTO Energy resolves Safe Drinking Water Act injection well violations in Utah (October 3, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register September 30– October 6, 2023)

Environmental Protection Agency

88 FR 69632: Notice: “Environmental Impact Statements; Notice of Availability” (October 6, 2023)

88 FR 68535: Proposed Rule, Comments Close 11/20/2023: “New Source Performance Standards Review for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels)” (October 4, 2023)

Federal Energy Regulatory Commission

88 FR 69630: Notice: “Combined Notice of Filings” (October 6, 2023)

88 FR 69174: Notice: “Combined Notice of Filings” (October 5, 2023)

88 FR 69294: Rule: “Accounting and Reporting Treatment of Certain Renewable Energy Assets” (October 5, 2023)

88 FR 68602: Notice: “Combined Notice of Filings” (October 4, 2023)

Energy Department

88 FR 69826: Proposed Rule: “Energy Conservation Program: Energy Conservation Standards for Consumer Furnace Fans” (October 6, 2023)

88 FR 69686: Rule: “Energy Conservation Program: Energy Conservation Standards for Commercial Water Heating Equipment” (October 6, 2023)

Land Management Bureau

88 FR 67964: Rule: “Helium Contracts” (October 3, 2023)

Ocean Energy Management Bureau

 88 FR 69658: Notice: “Notice on Outer Continental Shelf Oil and Gas Lease Sales” (October 6, 2023)

88 FR 69660: Notice: “Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 261” (October 6, 2023)

88 FR 67803: Notice, Comments Close 11/1/2023: “Notice of Intent To Prepare a Gulf of Mexico Regional Outer Continental Shelf Oil and Gas Programmatic Environmental Impact Statement” (October 2, 2023)

88 FR 67801: Notice, Comments Close 11/1/2023: “Call for Information and Nominations for Western, Central, and Eastern Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sales for 2024-2029″ (October 2, 2023)

88 FR 67798: Notice: “Notice of Availability of the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program and Final Programmatic Environmental Impact Statement” (October 2, 2023)

Other Agencies

88 FR 69623: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (October 6, 2023)

88 FR 68672: Notice: “Notice of Lodging of Proposed Consent Decree” (October 4, 2023)

88 FR 68429: Proclamation: “National Clean Energy Action Month, 2023” (October 4, 2023)

88 FR 68106: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (October 3, 2023)

88 FR 68290: Proprosed Rule, Comments Close 11/17/2023: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to the U.S. Navy Training and Testing Activities in the Hawaii-Southern California Training and Testing Study Area” (October 3, 2023)

88 FR 67870: Proposed Rule, Comments Close 12/1/2023: “Updates to Floodplain Management and Protection of Wetlands Regulations To Implement the Federal Flood Risk Management Standard” (October 2, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3033 “A bill to withdraw certain Federal land in the Pecos Watershed area of the State of New Mexico from mineral entry, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (October 4, 2023)

S.3026 “A bill to amend the Inflation Reduction Act of 2022 to repeal restrictions on offshore wind leasing.” Read twice and referred to the Committee on Energy and Natural Resources. (October 4, 2023)

S.3025 “A bill to amend the Inflation Reduction Act of 2022 to repeal restrictions on onshore wind and solar.” Read twice and referred to the Committee on Energy and Natural Resources. (October 4, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 40—October 7, 2023)

Department of Environmental Protection

53 Pa.B. 6268: Notices: “Public Comment Meeting on the Interim-Final Environmental Justice Policy and Pennsylvania Environmental Justice Mapping and Screening Tool (PennEnviroScreen) Methodology Document Public Comment Meeting; Location Change for October 16, 2023, Meeting”

Pennsylvania Public Utility Commission

53 Pa.B. 6331: Notices: “Pennsylvania Public Utility Commission, Bureau of Investigation and Enforcement v. Duquesne Light Company”

53 Pa.B. 6346: Notices: “Pennsylvania Public Utility Commission, Bureau of Investigation and Enforcement v. Mifflin Energy Corp.”

Pennsylvania Legislature

HB 1740 “An Act amending Title 27 (Environmental Resources) of the Pennsylvania Consolidated Statutes, providing for transition to renewable energy; imposing duties on the Department of Environmental Protection and other Commonwealth agencies relating to energy consumption and renewable energy generation; establishing the Renewable Energy Transition Task Force, the Just Transition Community Advisory Committee, the Renewable Energy Center of Excellence, the Council for Renewable Energy Workforce Development and the Renewable Energy Workforce Development Fund; providing for interim limits on energy produced from nonrenewable sources and for wage requirement for energy producing systems.” Referred to ENVIRONMENTAL RESOURCES AND ENERGY [House] (October 3, 2023)

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