October 16, 2023
Shale Law Weekly Review—Week of October 16, 2023
Offshore Drilling: Bureau of Ocean Energy Management Publish Proposed Final Program for Lease Sales in Gulf of Mexico ⚡
On October 2, 2023, Bureau of Ocean Energy Management (BOEM), DOI, published a Notice of Availability for the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (PFP) and Final Programmatic Environmental Impact Statement (EIS). 88 Fed. Reg. 67,798 (Oct. 2, 2023). The PFP proposes three lease sales in the Gulf of Mexico Program Area – scheduled for 2025, 2027, and 2029. The PFP includes various lease requirements that are meant to provide protection to sensitive biological areas of the seafloor. The EIS provides analysis of four alternative plans, ultimately selecting the plan that includes the “Chukchi Sea, Beaufort Sea, Cook Inlet, Western GOM, Central GOM, and Eastern GOM Planning Areas.” The PFP and Final Programmatic EIS will be submitted to Congress and the President for review for 60 days; December 1, 2023 will be the earliest in which the PFP can be approved by the Secretary of the Interior. For additional information and resources, see BOEM’s National OCS Oil and Gas Leasing Program.
Climate Change: Department of Energy Announces Funding for Labs Working on the Energy Earthshots Initiative
On September 29, 2023, the Department of Energy (DOE) announced $264 million in funding for 11 new research centers and 18 university research teams to work on the Energy Earthshots Initiative. The Initiative is made up of various “Shots” that are designed to develop corresponding “reliable clean energy solutions” and together achieve net-zero carbon emissions by 2050. One such Energy Earthshot is the Carbon Negative Shot, whose aim is noted to be CO2 capture and is headed by the Office of Fossil Energy and Carbon Management. The DOE recently announced a new Earthshot, the Clean Fuels & Products Shot, whose aim is noted to be the decarbonization of fuel and lessening of greenhouse gas emissions (GHGs). This Shot is an aspect of the Sustainable Aviation Fuel (SAF) Grand Challenge, a push by the DOE, Department of Transportation (DOT), and the U.S. Department of Agriculture (USDA) to develop alternative aviation fuels.
Landowner Royalties: West Virginia Oil and Gas Owners Barred from Consolidating their Royalty Lawsuits
On Wednesday, September 27, 2023, the West Virginia Northern District Court denied a Motion to Consolidate Related Cases filed in three lawsuits brought by numerous oil and gas owners (lessors) against Antero Resources Corporation for the alleged underpayment of royalties in violation of their lease agreements. Goodno v. Antero Res. Corp., No 5:20CV100 (N.D.W. Va.). Specifically, the three separate lawsuits, which together represent a class of approximately 100 lessors, allege that Antero has violated their lease agreements by deducting post-production costs from royalty payments. In striking down the motion for consolidation, the district court first pointed to the fact that many of the leases include a market enhancement feature in the royalty provision. In accordance with Corder v. Antero Resources Corp., leases with this feature are subject to “individualized contract interpretation,” meaning that they cannot be consolidated with leases that do not possess this feature. More broadly, the court found that “there are not enough common questions of law and fact amongst the Braxton Minerals, Goodno, and Wright actions to justify consolidation.” Finally, the court found that, because the numerous breach of contract claims arise from royalty provisions with distinct language, a consolidation would “confuse the issues” and unfairly prejudice the defendant.
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.
- October 27, 2023, noon – 1 pm (ET). Understanding the Basics of Federal & State Seed Laws. (Register)
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.
- October 17, 2023, noon – 1 pm (ET), Quarterly Dairy Webinar: Risk Management/Income & Revenue Protection (Register)
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
Equitrans, PHMSA reach Mountain Valley pipeline agreement (Oil & Gas Journal)
Seaspan and AES to collaborate on LNG bunkering services in Panama Canal (Offshore Energy)
Exxon in Talks to Buy Pioneer in What Could Be 2023’s Biggest Deal (Rigzone)
France’s LNG buildout unnecessary amid falling gas demand, says IEEFA (Offshore Energy)
Oil, gas groups ask EPA to open door for more technologies to monitor methane (S&P Global)
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FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE
Bloomberg, Russian Fuel Exports Slip During Low Diesel Flows In Early October (October 11, 2023)
Sartain, Another Remand in Louisiana Coastal Zone Cases (October 10, 2023)
Bloomberg, Stockholm Bans Diesel, Petrol Cars in City Center From 2025 (October 11, 2023)
Bloomberg, Oil Erases Gain Since Hamas Attack as Concerns of Wider War Ebb (October 12, 2023)
U.S. DEPARTMENT OF ENERGY PRESS RELEASES
Biden-Harris Administration Announces More Than $38 Million to Support Hydropower Facilities Across the Country (October 11, 2023)
Biden-Harris Administration Announces $30 Million in Clean Energy Funding to 28 State, Local and Tribal Governments (October 12, 2023)
Biden- Harris Administration Launches New Energy Earthshot to Lower Energy Bills in Affordable Housing (October 12, 2023)
U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES
FEDERAL EXECUTIVE AGENCIES (Federal Register October 7- October 13, 2023)
Environmental Protection Agency
88 FR 70516: Rule: “Toxic Substances Control Act Reporting and Recordkeeping Requirements for Perfluoroalkyl and Polyfluoroalkyl Substances” (October 11, 2023)
Federal Energy Regulatory Commission
88 FR 69921: Notice: “Combined Notice of Filings” (October 10, 2023)
88 FR 70344: Rule: “Policy for Type Certification of Very Light Airplanes as a Special Class of Aircraft” (October 11, 2023)
U.S. HOUSE ENERGY AND COMMERCE COMMITTEE
H.R.5760 “Climate Resilience Workforce Act” Referred to the Subcommittee on Highways and Transit. (October 10, 2023)
STATE ACTIONS—EXECUTIVE & LEGISLATIVE
PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES
DEP To Host Public Hearing on Proposed Core5 Warehouse Project in Lehigh County (October 12, 2023)
DEP To Host Public Hearing on Proposed Betz Court Warehouse Project in Lehigh County (October 12, 2023)
PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 41—October 14, 2023)
Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Sergio Porras, Research Assistant
Jackie Schweichler, Staff Attorney
