Shale Law Weekly Review
Shale Law Weekly Review – March 16, 2020
LNG Infrastructure: FERC Issues Final Environmental Impact Statement for Alaska LNG Project
On March 6, 2020, The Federal Energy Regulatory Commission issued a Final Environmental Impact Statement (EIS) for the Alaska LNG Project (Project). The Final EIS concluded that the project would cause some impacts to the environment that could be reduced or mitigated through various proposed measures. However, FERC found that some permanent impacts of the Project would be significant and adverse to permafrost, wetlands, and forests in Alaska’s North Slope area. The project would also likely adversely affect six federally listed species: the spectacled eider, polar bear, bearded seal, Cook […]
Shale Law Weekly Review – March 9, 2020
Production and Operation: Pennsylvania Quarterly Natural Gas Report Shows Continued Increase in Production
On February 26, 2020, the Pennsylvania Independent Fiscal Office released the Natural Gas Production Report for the fourth quarter of 2019. While the report shows an overall increase in production from the fourth quarter in 2018, the 7.6 percent increase equates to the “lowest growth rate in over two years.” More specific data shows that all of the growth comes from wells that were spudded in 2018. The number of horizontal wells increased by 8.3 percent in the last year, and horizontal production increased by 26.8 percent in […]
Shale Law Weekly Review – March 2, 2020
Pipelines: Supreme Court Hears Oral Arguments Related to Construction of the Atlantic Coast Pipeline Across the Appalachian Trail
On February 24, 2020 the U.S. Supreme Court heard oral arguments related to construction of the Atlantic Coast pipeline across the Appalachian Trail (Atlantic Coast Pipeline v. Cowpasture River Preservation Ass’n, No. 18-1587). On June 25, 2019, Atlantic Coast Pipeline filed a Petition asking the Supreme Court to review a decision by the U.S. Court of Appeals for the Fourth Circuit. The Fourth Circuit ruled that the U.S. Forest Service did not have the authority to grant a special use permit giving the Atlantic […]
Shale Law Weekly Review – February 25, 2020
Water Quality: Study Examines Hydraulic Fracturing and Pennsylvania Watersheds
On February 3, 2020, the Proceedings of the National Academy of Sciences (PNAS) published a study that focused on shale gas development in 25 watersheds over a two-year period. The Pennsylvania State Forests (PASF) area was chosen for the study because the area has “few other potential anthropogenic stressors” on streams while containing a “gradient of shale gas development under a consistent regulatory structure.” The researchers found no chemical or microbial impact or connection between hydraulic fracturing and the watersheds. The study, however, did identify a possible relationship between sediment caused by […]
Shale Law Weekly Review – February 17, 2020
Economic Development: Pennsylvania Congress Approves Energy Manufacturing Tax Credit
On February 4, 2020, Pennsylvania’s House and Senate approved HB 1100, amending the 1971 Tax Reform Code and establishing a tax credit for natural gas “purchased and used in manufacturing of petrochemicals or fertilizers.” The bill was sponsored by Representative Aaron Kaufer as part of the “Energize PA Legislative Package.” According to the House co-sponsorship memoranda, the bill is “designed to make Pennsylvania attractive to outside businesses, create family-sustaining jobs and provide economic benefits to underserved regions.” The bill would create a tax credit for manufacturers that use natural gas to produce petrochemicals or fertilizers, invest […]
Shale Law Weekly Review – February 5, 2020
Pipelines: FERC Issues Declaratory Order to Offer Interpretation of Eminent Domain Provision in Natural Gas Act
On January 30, 2020, the Federal Energy Regulatory Commission (FERC) granted in part, and denied in part, a Petition for Declaratory Order filed by PennEast Pipeline Company, LLC on October 4, 2019. In this petition, PennEast Pipeline asked FERC to provide an interpretation of the scope of eminent domain authority under NGA Section 7(h). PennEast initiated this petition after the U.S. Court of Appeals for the Third Circuit ruled on September 10, 2019, that PennEast was barred by the 11th Amendment from suing New Jersey […]
Shale Law Weekly Review – January 27, 2020
Trespass by Fracture: Pennsylvania Supreme Court Addresses Trespass by Hydraulic Fracturing
On January 22, 2020, the Supreme Court of Pennsylvania issued a decision addressing the application of the Rule of Capture to unconventional oil and gas development in Pennsylvania. (Briggs v. Southwestern Energy Production, No. 63 MAP 2018). Briggs filed a complaint against Southwestern asserting conversion and trespass claims due to the alleged drainage of natural gas from their property resulting from hydraulic fracturing activities conducted at Southwestern wells on adjacent property. Southwestern responded by arguing that the Rule of Capture barred the Briggs’ claims. In 2017, the Court of Common Pleas dismissed […]
Shale Law Weekly Review – January 20, 2020
Climate Change: Federal Court Dismisses Climate Change Lawsuit for Lack of Standing
On January 17, 2020, the U.S. Court of Appeals for the 9th Circuit dismissed the Juliana v. United States climate change case, sending it back to the district court on the grounds that the children and youth plaintiffs did not meet Article III standing requirements (Juliana et al. v. United States of America, No. 6:15-cv-01517). In September 2015, a group of youth and children brought legal actions in the U.S. District Court for Oregon against the United States, alleging that the federal government failed to respond to climate change and should now […]
Shale Law Weekly Review – January 14, 2020
National Energy Policy: White House Council on Environmental Quality Issues Proposed Regulations Focused on Updating NEPA Review Process
On January 10, 2020, the White House Council on Environmental Quality (CEQ) published in the federal register a notice of proposed rulemaking designed to streamline the existing National Environmental Policy Act (NEPA) implementing regulations. CEQ acknowledged that it has been more than 40 years since NEPA regulations have been updated and that changes are needed to reflect the Trump administration’s intent to reduce the paperwork burden on federal agencies as well as to minimize administrative delay. CEQ therefore proposes, among other things, […]
Shale Law Weekly Review – January 7, 2020
Water Quality: Wyoming Department of Environmental Quality Publishes Report on Pavillion Water Wells
On December 23, 2019, the Wyoming Department of Environmental Quality (WDEQ) published findings as part of the investigation into the drinking water wells in Pavillion, Wyoming. The report is entitled, Final Pavillion, Wyoming Gas Field Domestic Water Wells Report on Recommendations for Further Investigation Pavillion, Wyoming. In the report, WDEQ focused on two recommendations, including additional sampling for bacterial populations which involved evaluating geochemical/biomarkers such as total dissolved solids, sulfide, and methane. The report also analyzed water samples for volatile organic compounds, semi-volatile organic compounds, and […]
