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On Wednesday, July 23, 2014 the Pipeline and Hazardous Materials Safety Administration (“Administration”), an agency within the U.S. Department of Transportation (“USDOT”), issued a Notice of Proposed Rulemaking (“NOPR”) for rail transport of crude oil and ethanol.  The NOPR, titled “Enhanced Tank Car and Operational Controls for High-Hazard Flammable Trains,” is available online, but has not yet been published in the Federal Register. 

There are three main provisions of the NOPR: “(1) new operational requirements for certain trains transporting a large volume of Class 3 flammable liquids; (2) improvements in tank car schedules; [and] (3) revision of the general requirements for offerors to ensure proper classification and characterization of mined gases and liquids.”  (NOPR, at p. 1.)  Notably, the USDOT proposes to phase out the use of older USDOT tank cars for the shipment of certain liquids within two years, unless the tank cars are retrofitted to comply with new tank car design standards.  (See USDOT, U.S. DOT Announces Comprehensive Proposed Rulemaking for the Safe Transportation of Crude Oil, Flammable Materials.)  This rule would include gradual prohibition on transport of most Bakken crude oil.Continue Reading USDOT Proposes New Rules for Rail Transport of Fossil Fuels

On Wednesday, July 9, 2014, the State Water Resources Control Board (“Water Board”) announced that it will be holding a “Stakeholder Meeting to Develop Groundwater Monitoring Model Criteria for Oil & Gas Areas.”  The meeting is scheduled for Thursday, August 7, 2014 from 8:00 am to 5:00 pm in the Kern County Supervisors Chambers in Bakersfield.  The Water Board is required to develop model groundwater monitoring criteria by July 1, 2015 pursuant to Senate Bill 4 (“SB 4”).  (Wat. Code, § 10783, subd. (c).) 

Interim well stimulation regulations, issued by the Department of Conservation’s Division of Oil, Gas & Geothermal Resources (“DOGGR”) came into effect on January 1, 2014.  DOGGR is on schedule to publish permanent regulations on January 1, 2015.  Under the interim regulations, well operators must submit a groundwater monitoring plan, or request an exemption from the Water Board if the operator can show the absence of protected waters.  (Interim Regulations, § 1783.1, subd. (b)(4).)  If the exemption is granted, the Water Board issues a written concurrence.  (§ 1783.4, subd. (c).)Continue Reading Water Board Announces Meeting to Develop SB 4 Groundwater Monitoring Criteria

With the federal Department of Transportation’s recent emergency order impacting those who transport crude oil by rail, state governments are likewise considering additional regulatory oversight that could affect the industry in the wake of recent train derailments such as the one yesterday in Virginia.

In Minnesota, where more than 800 tank cars carrying oil…

One of the largest oil-field services companies in the world, Baker Hughes, has revised its long-standing policies on disclosing the contents of hydraulic fracturing fluids on FracFocus.org – a non-profit database designed to provide the public with information related to oil and gas development.

The policy states that the company believes it is “possible to…

In several recent studies on methane emissions relating to the natural gas industry, scientists concluded that the U.S. Environmental Protection Agency (EPA) underestimated the quantity of methane the industry releases to the atmosphere. A study released Monday, based on air samples above wells in the Marcellus Shale formation in Pennsylvania, indicates that methane emissions may be from 100 to 1000 times higher than EPA estimates. But this study also found that hydraulic fracturing was not a primary source of methane emissions.

Also this week, EPA released five white papers for peer review identifying fracking, along with compressors, leaks, liquids unloading and pneumatic devices, as a potentially significant source of methane and volatile organic compound (VOC) emissions. The papers are the first step in President Obama’s Climate Action Plan Strategy to Reduce Methane Emissions targeting several areas, including the oil and gas sector, for reducing methane emissions.
Continue Reading Study Suggests EPA Underestimated Natural Gas Methane Emissions, But Not for Fracking, and EPA Releases Study Examining Fracking Emissions Controls

On March 19, the Minnesota Environmental Quality Board (EQB) approved its proposed model standards for local silica sand mining regulations and planning.  The standards are intended to serve as guidelines for city and county governments as they work to develop their own local ordinances for mining, processing, and transporting silica sand.  The Minnesota Legislature mandated…

In response to questions raised by the petrochemical industry, the federal Department of Transportation (USDOT) amended its emergency order restricting those who transport crude oil by rail in the United States last Thursday.  Among other revisions, the amended order requires that shippers test their oil cargoes with sufficient frequency to ensure that their hazardous…

In response to safety concerns over trains carrying crude oil extracted from Bakken shale, the federal Department of Transportation (USDOT) issued an Emergency Restriction/Prohibition Order yesterday, affecting all those who transport crude oil by rail in the United States.

Specifically, the USDOT stated that its investigations into train accidents and derailments in North Dakota…

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Here Stoel Rives shares insight and analysis about key mineral law developments. Drawing on a very active natural resources practice, we aim to keep readers informed about the legal aspects of news that impacts exploration and development of all things mineral.