Pipelines: US Court of Appeals for the District of Columbia Vacates the Transcontinental Gas Pipeline Company’s Certificate to Build and Operate in U.S. ⚡
On July 30, 2024, the United States Court of Appeals for the District of Columbia issued an opinion reversing the Federal Energy Regulatory Commission’s (FERC) approval and granting of a certificate for the Transcontinental Gas Pipeline Company (Transco) pipeline project. FERC approved Transco to “construct and operate” a pipeline project that would go through multiple states, including New Jersey and Pennsylvania. The court determined that FERC did not properly explain why it chose not to “make a significant determination regarding greenhouse gas (“GHG”) emissions.” Additionally, the court found that FERC “failed to discuss possible mitigation measures.” In its reasoning, the court explained that FERC’s “decision not to make a case-specific determination” regarding Transco’s projected emissions was “arbitrary and capricious,” and thus a violation of the Administrative Procedure Act (APA). In its judgment, the court reversed the FERC’s orders and remanded the decision back to FERC for further action.

National Energy Policy: Appeals Court Rejects Environmental Protection Agency Denial of Temporary Waivers for Small Oil Refineries
On July 26, 2024, the U.S. Court of Appeals for the District of Columbia rejected a 2022 Environmental Protection Agency (EPA) decision that did not allow small oil refineries temporary waivers from the biofuel blending program. Sinclair Wyo. Refin. Co. LLC v. EPA, U.S. App. LEXIS 18543 (D.C. Cir. July 26, 2024). The biofuel blending program is part of the Renewable Fuel Standard program (RFS), which requires a certain percentage of traditional fossil fuels be replaced by renewable fuel sources, such as biofuels. This latest decision by the court allows small oil refineries the opportunity to apply for an exemption from the beforementioned RFS. The issue has been sent back to the EPA to review.

Energy Policy: Biden Administration Invests $163 Million in the Rural Energy for America Program
On July 16, 2024, the USDA announced a $163 million investment in the Rural Energy for America Program (REAP). Much of the funding comes from the Inflation Reduction Act, and will fund 338 different projects. Some example projects include installing solar energy infrastructure, constructing wind turbines, and building a geothermal energy system. The USDA published a complete list of all projects funded by this REAP investment. The projects are spread across 39 different states and Guam.

Renewable Energy: BOEM Cancels Gulf of Mexico Offshore Wind Lease Sale, Seeks Comments for Competitive Interest
On July 26, 2024, the Bureau of Ocean Energy Management (BOEM) announced the cancellation of the second offshore wind energy auction in the Gulf of Mexico due to lack of competitive interest. BOEM also announced that Hecate Energy Gulf Wind LLC submitted an unsolicited proposal to acquire a commercial wind energy lease on the outer continental shelf (OCS) in the Gulf of Mexico on February 2, 2024. The now-cancelled auction was first announced by the Department of Interior on March 20, 2024. BOEM published a notice in the Federal Register on July 29, 2024, requesting public comment on Hecate Energy Gulf Wind LLC’s proposal and to determine if there is competitive interest in two commercial wind energy leases for wind energy development on the OCS in the Gulf of Mexico. (89 FR 60913). BOEM is also seeking public comments on potential environmental consequences linked to wind energy development in the region. The public comment period is open until September 12, 2024.

State Regulation: Connecticut Superior Court Denies Motion to Dismiss Exxon Climate Case
On July 23, 2024, the Connecticut Superior Court issued a ruling denying Exxon’s motion to dismiss a climate-related lawsuit brought against them by the state of Connecticut. Connecticut v. Exxon Mobil Corp., 83 F.4th 122 (2d Cir. 2023). In the lawsuit, Connecticut alleges that Exxon continuously deceived the public about the impact of its fossil fuel activities on the environment. The lawsuit states that by the 1950’s, Exxon was aware of fossil fuel combustion’s impact on the environment and that by the 1980’s, Exxon was able to predict the amount of carbon dioxide in the atmosphere in 2020, along with the corresponding increase in temperature. In conclusion, Connecticut alleges that despite Exxon’s knowledge of the impact fossil fuel use had on the climate, they continued to deceive Connecticut consumers by misrepresenting or omitting details about Exxon fossil fuel and the impacts it had on the climate. Upon being presented with the lawsuit, Exxon filed a motion to dismiss, arguing that Connecticut had no personal jurisdiction over Exxon Mobil. In the dismissal of the motion, the court states that after analysis, the long-arm statute for foreign corporations applies to Exxon.

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CENTER PROGRAMS & RESOURCES

Ag Progress Days – the Penn State College of Agricultural Sciences will host its annual Ag Progress Days, “Pennsylvania’s largest outdoor agricultural exposition,” at the Russell E. Larson Agricultural Research Center in Pennsylvania Furnace. Throughout the event, the Penn State Center for Agricultural and Shale Law will host an information booth in the Horizon Farm Credit Exhibit Building at W. 6th Street & Main. Come visit us in booth A509!

Solar Law Symposium – Penn State Extension will host its virtual Solar Law Sympium. As part of the symposium, Center Staff Attorney Brook Duer will co-present a session on Penn State research about the impact of solar development on rural areas. Registration available with optional CLE credits.

2024 Pennsylvania Agricultural Law Symposium – The Center for Agricultural and Shale Law will host the 2024 Pennsylvania Agricultural Law Symposium in-person at Penn State Law, Lewis Katz Building in University Park, PA. This day-long symposium will offer 6 CLE credits for Pennsylvania-licensed attorneys.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

PUC Seeks To Accelerate Removal, Replacement Of Older Plastic Pipe In Natural Gas Distribution Systems (PA Environmental Digest)

PA US Sen. Casey Cosponsors Bill To Find, Clean Up Abandoned Oil & Gas Wells, Improve Detection, Plugging Tech (PA Environmental Digest)

Russia Accounted for a Fifth of EU Gas Imports in Q1 (Rigzone)

Banks Bolster Support for Oil and Gas (Natural Gas World)

Department of Energy files appeal to continue pause on new LNG export (Washington Examiner)

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

Oil & Gas Law & Policy Resources:

Bloomberg, China’s Metals and Power Fuel Imports Firm Despite Weak Economy (August 7, 2024)

Eisenson, Michigan’s New Siting Process Gives Some Authority to State Regulators, But Under What Circumstances? (August 7, 2024)

Bloomberg, Oil Holds Recovery Rally as Market Waits for Iran Retaliation (August 8, 2024)

Sartain, No Compound Interest on Unpaid Royalties Under Texas Oil and Gas Lease (August 5, 2024)

Chin, Oil Climbs From Seven-Month Low as Equities Claw Back Losses (Aug 6, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Biden-Harris Administration Announces States to Receive $190 Million to Improve Health, Safety, and Lower Energy Costs in K-12 Public Schools Across America (August 5, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register June 1, 2024 – June 7, 2024)

Environmental Protection Agency 

89 FR 64916 Notice: “Proposed Consent Decree, Clean Air Act Citizen Suit” (August 8, 2024)

89 FR 64916 Rule: “Announcement of the Delegation of Partial Administrative Authority for the Southern Ute Indian Reservation to the Southern Ute Indian Tribe for Implementation of the Clean Air Act Federal Minor New Source Review Program in Indian Country and the Indian Country Minor Source Oil and Gas Federal Implementation Plan” (August 9, 2024)

Federal Energy Regulatory Commission

89 FR 64438 Notice: “Florida Gas Transmission Company, LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (August 7, 2024)

Other Agencies

89 FR 63214 Notice (Fish and Wildlife Service): “Receipt of Incidental Take Permit Application for Participation in the General Conservation Plan for Oil and Gas Activities; Categorical Exclusion; Santa Barbara County, CA” (August 2, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 32 – August 10, 2024)

 

Written by:
Victoria Dutterer, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Jose Rojas, Research Assistant
Samuel Sweeten, Research Assistant
Jackie Schweichler, Staff Attorney