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Oil and Gas Update

Technological Advancements Raise Questions to Ownership of Produced Water from Hydraulic Fracturing

Produced water is a byproduct generated during hydraulic fracturing, or “fracking.” During the fracking process, the extracting party fractures bed rock by injecting water into the subsurface at a high pressure to extract oil and natural gas. Upon completion, a slurry byproduct remains known as “produced water.” Originally seen as a waste product with limited uses, the extracting party typically…

Good News for West Virginia’s Oil and Gas Producers

The 2022 legislative session resulted in the passage of two bills of significance to oil and gas operators. First, Senate Bill 650 was passed (effective June 30, 2022). With this bill, the 2018 Co-Tenancy Modernization and Majority Protection Act is modified to eliminate the requirement that there be seven or more cotenants in order to utilize the provisions of the Act. Thus, the Act is now…

INJUNCTION ISSUED BY MONTANA COURT APPEARS TO PROHIBIT U.S. ARMY CORPS OF ENGINEERS FROM AUTHORIZING ANY UTILITY LINE ACTIVITIES UNDER NATIONWIDE PERMIT 12 UNTIL COMPLETION OF ENDANGERED SPECIES ACT REVIEW

In a case challenging the U.S. Army Corps of Engineers’ approval of the Keystone XL pipeline, a federal district court in Montana issued a sweeping injunction last week that, on its face, seems to prohibit the Corps from approving any activities under its Nationwide Permit 12 (“NWP 12”), which authorizes discharges of dredged or fill material associated with utility line activities, until it…

Federal Court Rejects Use of Virginia County Flood Ordinance to Limit Natural Gas Pipeline Construction

A federal court in Virginia has ruled that a county’s attempt to impede an interstate gas pipeline with a floodplain ordinance is preempted by the federal Natural Gas Act.  See Atlantic Coast Pipeline, LLC v. Nelson County Board of Supervisors, No. 3:18-00115 (W.D. Va. March 9, 2020).

The Atlantic Coast Pipeline (“ACP”) holds a certificate from FERC under the Natural Gas Act to construct and operate…

West Virginia Enhances Penalties for Trespass and Damages to Critical Infrastructure

The West Virginia Legislature has adopted a West Virginia Critical Infrastructure Protection Act. See W. Va. Code §61-10-34 (copy available at https://legiscan.com/WV/text/HB4615/2020). The new Act establishes three categories of criminal actions concerning “critical infrastructure”.

  1. Trespass: It is a misdemeanor to “willfully and knowingly … enter[] property containing a critical infrastructure…

Pennsylvania Supreme Court Affirms Application of Rule of Capture to Hydraulic Fracturing

On January 22, 2020, the Supreme Court of Pennsylvania reached a long-awaited decision regarding hydraulic fracturing and affirming the principle known as the “rule of capture.” In Briggs v. Southwestern Energy Production Company, the Supreme Court concluded that the rule of capture is applicable where hydraulic fracturing is utilized, and that said use, absent evidence of physical invasion, is…

EPA Proposes to Reconsider New Source Performance Standards for Oil & Gas Emissions

In 2016, EPA finalized new source performance standards for emissions of greenhouse gases in the form of limitations on methane and volatile organic compounds (“VOC”) from the oil and natural gas sector.  We have written about that rule before: “Obama Announces New Rules on Oil & Gas Industry’s Methane Emissions,” “EPA Withdraws 2016 Information Request on Methane Emissions from the Oil and Gas…

Federal Court Upholds Constitutionality of Ohio's Forced Unitization Law - R.C. 1509.28

In Kerns v. Chesapeake Exploration, LLC., N.D.Ohio No. 5:18 CV 389, 2018 WL 2952662,  the United States District Court for the Northern District of Ohio held that unitization pursuant to R.C. 1509.28, Ohio’s “forced unitization” statute, did not constitute a taking under the Fifth Amendment, the Fourteenth Amendment, or 42 U.S.C. § 1983.  In Kerns, landowners filed suit against Chesapeake…

Pennsylvania Appellate Court Decides "Rule of Capture" Does Not Preclude Liability From Trespass Due To Hydraulic Fracturing

In a decision which may have severe consequences on oil and gas operations not only in Pennsylvania, but nationwide, the Superior Court of Pennsylvania held on April 2, 2018, in Briggs. v. Southwestern Energy Production Company, 2018 PA Super 79 (Apr. 2, 2018) that the “rule of capture” would not preclude liability for trespass of oil and gas operations due to hydraulic fracturing.

 

The rule of…

PA Supreme Court Rejects PADEP's Theory of Limitless Civil Penalties for "Continuing Violation" of Clean Streams Law

We have previously written about a declaratory judgment action filed by a natural gas producer against the Pennsylvania Department of Environmental Protection (“PADEP”) challenging the agency’s interpretation of Pennsylvania’s Clean Streams Law. In that proceeding, the gas producer sought pre-enforcement judicial review of PADEP’s legal interpretation of what constitutes a “continuing violation”…

 

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