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 Friday, July 11, 2014 the U.S. Environmental Protection Agency (“USEPA”) extended the public comment period for its advanced notice of proposed rulemaking (“ANPR”) for hydraulic fracturing chemical disclosure rules.  The USEPA initially requested public comment on May 9, 2014 by issuing the ANPR.  This set a 90-day public comment period, slated to end on…

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…

On April 29th, the California Geological Survey (CGS) released production data from 2012 indicating that the production of construction aggregate (sand, gravel and crushed stone) increased for the first time since 2007 in California.  Construction aggregate production increased by 7.3 percent to 121.3 million tons (valued at $1.162 billion).  Portland cement production also increased by…

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…

A new short video found at the website for Minerals Make Life – a National Mining Association initiative – illuminates the close ties between the widespread resurgence of manufacturing in the United States and the need for stable access to mineral resources.  As manufacturing experiences a resurgence in the United States, an expected 2 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

Minerals Make Life – a national, non-profit mining association – has recently developed an illuminating infographic indicating the increased demand for rare earth minerals. Presence of these minerals in the earth’s crust is common, but much less common in terms of minable concentrations. While demand for rare earths is rising, the current state of U.S.

In exchange for a $2.6 billion cut to Ohio’s state income taxes, Gov. John Kasich has proposed a package of tax increases in other areas.  Included among those increases would be the gradual implementation of a 2.75 percent tax on oil and gas extracted through horizontal drilling and hydraulic fracturing in Ohio, which is estimated…

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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.