September 13, 2021

Shale Law Weekly Review – Week of September 13, 2021

Pipelines: D.C. Circuit Court of Appeals Rejects Petition to Rehear Decision to Remand FERC’s Certification Order for Spire STL Pipeline Project ⚡
On September 7, 2021, the U.S. Court of Appeals for the District of Columbia Circuit denied Intervenors Spire Missouri Inc. and Spire STL Pipeline’s petition for rehearing en banc to reconsider the court’s decision dated June 22, 2021, to vacate FERC’s certification order for the Spire STL Pipeline Project and remand with vacatur the case to the Commission for appropriate action. Environmental Defense Fund v. FERC, USCA D.C. Cir., No. 20-1016. The Spire STL Pipeline is an interstate project designed to connect the St. Louis metropolitan area with the existing Rockies Express Pipeline and was approved by FERC in August 2018. Petitioner Environmental Defense Fund sought review of FERC’s certification approval in January 2020, arguing that FERC’s decision was “arbitrary and capricious,” because it based its decision “uncritically and exclusively” on a prior agreement that there was market demand for the project and because it did not adequately weigh the benefits to be derived from the project against its adverse effects. Intervenors argued that the court’s vacatur “could have profoundly disruptive – and even deadly – consequences, and because FERC can correct any errors in its reasoning on remand, the appropriate remedy … is remand without vacatur.”

National Energy Policy: The U.S. Department of Energy Announces Major Funding to Curb Carbon Emissions from Transportation Sector
On September 9, 2021, the U.S. Department of Energy provided $64.7 million to fund projects focused on producing cost-effective, lower-carbon biofuels for purposes of reducing transportation emissions. These biofuels would replace petroleum fuels used by airplanes and ships. This follows the recent introduction by the Biden administration of the Sustainable Aviation Fuels (SAF) Grand Challenge, designed to help the aviation transportation sector become carbon neutral by 2050. In addition, the U.S. Department of Energy, the U.S. Department of Transportation, and U.S. Department of Agriculture signed a Memorandum of Understanding to work towards “the goals of supplying at least 3 billion gallons of SAF per year by 2030 and sufficient SAF to meet 100% of aviation fuel demand – currently 35 billion gallons per year – by 2050.”

Climate Change: A Recent Study Found that Fossil Fuel Use Must Decline to Meet Global Carbon Budget
A recent study published in the science journal Nature on September 8, 2021, found that “[b]y 2050 … nearly 60 per cent of oil and fossil methane gas, and 90 per cent of coal must remain unextracted to keep within a 1.5 °C carbon budget.” In addition, the study states that “oil and gas production must decline globally by 3 per cent each year until 2050.” The study is titled “Unextractable Fossil Fuels in a 1.5 °C World.”

Shale Law/Policy Resources of Interest:

Margaret Barry and Korey Silverman-Roati, September 2021 Updates to the Climate Case Charts (September 10, 2021).

Hillary Aidun and Claire Hodges, States Prohibiting Natural Gas Bans Feign Concern for “Energy Choice” (September 9, 2021).

Charles Sartain, Who Won and Who Didn’t: The 2021 Texas Legislature and Energy (September 9, 2021).

Korey Silverman-Roati and Romany M. Webb, Removing Carbon Dioxide Through Seaweed Cultivation: Legal Challenges and Opportunities (September 7, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

No Relevant Actions.

U.S. Department of Energy

DOE Announces Contract Awards for Crude Oil Sales from the Strategic Petroleum Reserve (September 10, 2021).

DOE Authorizes Second Exxon Strategic Petroleum Reserve Exchange to Bolster Fuel Supply Chain Following Hurricane Ida (September 9, 2021).

DOE Announces Nearly $65 Million for Biofuels Research to Reduce Airplane and Ship Emissions (September 9, 2021).

DOE Releases Solar Futures Study Providing the Blueprint for a Zero-Carbon Grid (September 8, 2021).

U.S. Environmental Protection Agency

Administrator Regan Discusses Climate Change and Environmental Justice with Mexico and Canada at CEC Council Session (September 10, 2021).

Justice Department, EPA and the State of Michigan Reach Clean Air Act Settlement with Arbor Hills Energy LLC (September 9, 2021).

EPA Expands Air Monitoring Efforts in Communities Impacted by Hurricane Ida (September 9, 2021).

U.S. EPA and UNEP Partner to Protect Human Health and the Environment (September 8, 2021).

EPA Issues Fuel Waiver for Port Fourchon, Louisiana (September 7, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 37—September 11, 2021)

Department of Environmental Protection

51 Pa.B. 5879 Notice: “State Water Plan Water Resources Committee Meetings Updated Schedule for 2021.”

51 Pa.B. 5880 Notice: “Water Resources Advisory Committee Virtual Meeting Rescheduled”

Pennsylvania Public Utilities Commission

51 Pa.B. 5965 Notice: “Electric Generation Supplier License Cancellations of Companies with an Expired Financial Security, Insufficient Financial Security Amount or Language.”

Pennsylvania Legislature

HB 1842 “An Act amending The Clean Streams Law, in general provisions and public policy, further providing for definitions; and, in other pollutions and potential pollution, providing for notice of discharge endangering health or the environment.” Referred to Environmental Resources and Energy [House] (September 9, 2021).

Upcoming Meeting: Senate Environmental Resources and Energy Meeting on Tuesday, September 14, 2021.

Upcoming Meeting: House Environmental Resources and Energy Meeting on Monday, September 27, 2021.

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register September 7 [No Issue from September 6, Labor Day]–September 10, 2021):

Bureau of Safety and Environmental Enforcement

86 FR 50373 Notice: “Agency Information Collection Activities; Oil and Gas Production Safety Systems” (September 8, 2021).

86 FR 50169 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Oil-Spill Response Requirements for Facilities Located Seaward of the Coastline” (September 7, 2021).

86 FR 50165 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Plans and Information [Clarification of Responsibilities and Obligations]” (September 7, 2021).

86 FR 50166 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Pollution Prevention and Control [Extension of Current Collection]” (September 7, 2021).

86 FR 50167 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Relief or Reduction in Royalty Rates [Extension of Current Collection]” (September 7, 2021).

86 FR 50168 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Safety and Environmental Management Systems [Extension of Current Collection]” (September 7, 2021).

86 FR 50163 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Well Control and Production Safety Training [Extension of Current Collection]” (September 7, 2021).

86 FR 50164 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Pipelines and Pipeline Rights-of-Way (ROW) [Extension of Current Collection]” (September 7, 2021).

Environmental Protection Agency

86 FR 50477 Rule: “National Priorities List [for the National Oil and Hazardous Substances Pollution Contingency Plan as required by CERCLA]” (September 9, 2021).

86 FR 50296 Proposed Rule: “Potential Future Regulation Addressing Pyrolysis and Gasification Units” (September 8, 2021).

86 FR 50117 Notice: “Information Collection Request Submitted to OMB for Review and Approval; Comment Request; Clean Watersheds Needs Survey (CWNS) (Reinstatement)” (September 7, 2021).

86 FR 50109 Notice: “Information Collection Request Submitted to OMB for Review and Approval; Comment Request; NSPS for Petroleum Refineries (Renewal)” (September 7, 2021).

Federal Energy Regulatory Commission

86 FR 50712 Notice: “Hardy Storage Company, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (September 10, 2021).

86 FR 50711 Notice: “Modernizing Electricity Market Design; Supplemental Notice of Technical Conference on Energy and Ancillary Services in the Evolving Electricity Sector” (September 10, 2021).

86 FR 50339 Notice: “National Fuel Gas Supply Corporation; Notice of Request for Extension of Time [for the Wharton WH23 Storage Well Abandonment Project]” (September 8, 2021).

86 FR 50339 Notice: “Iroquois Gas Transmission System, L.P.; Notice of Revised Schedule for Environmental Review of the Enhancement by Compression Project” (September 8, 2021).

86 FR 50097 Notice: “Roaring Fork Interstate Gas Transmission, LLC; Notice of Amendment to Application and Establishing Intervention Deadline” (September 7, 2021).

86 FR 50104 Notice: “Complaint of Michael Mabee and Petition to Order Mandatory Reliability Standards for Equipment and Monitoring Systems Marketed from the People’s Republic of China; Notice of Complaint” (September 7, 2021).

Geological Survey

86 FR 50371 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; National Geological and Geophysical Data Preservation Program (NGGDPP)” (September 8, 2021).

Justice Department

86 FR 50374 Notice: “Notice of Proposed Settlement Agreement Under the Comprehensive Environmental Response, Compensation and Liability Act and the Pennsylvania Hazardous Sites Cleanup Act [for 12 Public Utilities]” (September 8, 2021).

Southwestern Power Administration

86 FR 50105 Notice: “2021 Continuation of Temporary Power Sales Program” (September 7, 2021).

House Energy and Commerce Committee Actions:

H.R.5186 “CISA Leadership Act [‘To amend the Homeland Security Act of 2002 to provide for a five-year term of appointment of the Director of the Cybersecurity and Infrastructure Security Agency’]” Referred to the Committee on Homeland Security, and in addition to the Committees on Energy and Commerce, and Oversight and Reform. . . (September 7, 2021).

Senate Energy and Natural Resources Committee:

No relevant actions.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks September 6–September 10, 2021:

Pennsylvania’s Carbon Plan Clears Last Regulatory Hurdle, Associated Press

Cheniere Says Financial Performance Gives Lift to US LNG Growth Opportunities, S&P Global Platts

Bitcoin Miners and Oil and Gas Execs Mingled at a Secretive Meetup in Houston – Here’s What They Talked About, CNBC

Oil Extends Losses as Saudi Price Cuts Raise Competition Stakes, Bloomberg

Seneca Resources Signs on with Project Canary Over Certified Natural Gas, Pittsburgh Business Times

Oil Boom Remakes N. Dakota County with Fastest Growth in US, Associated Press

Latest Draft of New Mexico Oil, Gas Rules Stirs Tension, Associated Press

Pennsylvania Comes Close to Texas Natural Gas Production, Shale Gas Reporter (Farm and Dairy)

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