On July 28, 2015, the National Wildlife Federation (“NWF”) filed an intent to sue notice against the Department of Transportation (“DOT”), arguing the DOT has not properly approved pipeline projects for more than 20 years. The legal action carries nationwide implications: Every U.S. oil pipeline that intersects a navigable water may soon be subject to additional … Continue Reading
On Wednesday, August 26, a coalition of environmental groups threatened to sue the U.S. Environmental Protection Agency (“EPA”) if the regulations under the Resource Conservation and Recovery Act (“RCRA”) are not updated to restrict the disposal of waste associated with oil and gas production. The coalition specifically asked the EPA to review and revise the … Continue Reading
On August 18, 2015, the U.S. Environmental Protection Agency released proposed regulations aimed at cutting greenhouse gas emissions and volatile organic compounds (VOCs) from oil and gas facilities. These first-ever proposed standards are a key part of a broader strategy, under the President’s Climate Action Plan, to cut methane emissions in the sector by 40% … Continue Reading
On Thursday, the Environmental Protection Agency (“EPA”) released a long awaited, and congressionally mandated, study detailing the relationship between hydraulic fracturing and drinking water. The EPA found no signs of “widespread, systemic” drinking water pollution from hydraulic fracturing. “It is the most complete compilation of scientific data to date,” says Dr. Thomas Burke, with the EPA’s … Continue Reading
Three states have recently taken a stand for or against controversial bans on hydraulic fracturing. Oklahoma, Texas, and Maryland have all passed laws within the past month relating to hydraulic fracturing bans. Oklahoma Last Friday, Oklahoma Governor Mary Fallin signed Senate Bill 809, which prohibits local governments from choosing whether to have oil and gas … Continue Reading
Today, May 8, 2015, the Pipeline and Hazardous Materials Safety Administration published a final rule for rail transport of crude oil in the Federal Register. These rules come after several high-profile oil train derailments, including one recently in North Dakota that caused the evacuation of a nearby town. The final rule applies to “high-hazard flammable … Continue Reading
On Tuesday, May 5, 2015, the Internal Revenue Service (“IRS”) released proposed regulations defining qualifying income for Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships that are taxed as a partnership rather than a corporation. Being taxed as a MLP has many advantages. While shareholders in a corporation face double taxation ̶ paying taxes … Continue Reading
On Tuesday, April 21 the Obama Administration released the first Quadrennial Energy Review (“QER”) as a component of President Obama’s Climate Action Plan. The extensive report analyzes energy infrastructure in the United States, and “identifies the threats, risks, and opportunities for U.S. energy and climate security, enabling the federal government to translate policy goals into … Continue Reading
Less than one week after the Bureau of Land Management (BLM) released its Final Rule governing hydraulic fracturing practices on federal lands, North Dakota will proceed to explore the state’s legal options for challenging the new regulations. At their March 24 meeting, the members of the North Dakota Industrial Commission—comprised of Governor Jack Dalrymple, Attorney … Continue Reading
Today, Friday, March 20, the Bureau of Land Management (“BLM”), an agency within the Department of the Interior, published regulations for hydraulic fracturing on Federal and Indian lands. The Final Rule becomes effective in 90 days and will impact about 2,800-3,800 wells each year. In 2013, 90% of the 2,800 new wells on Federal and … Continue Reading
As many of you know, permitting delays are not only frustrating but can have real consequences for project applicants with contractual deadlines. In the case of a federal oil and gas lease, operators should be mindful of the primary term in their lease as recently highlighted by the Interior Board of Land Appeals (IBLA) in … Continue Reading
In a closely watched, 4-3 decision issued yesterday, February 17, the Ohio Supreme Court ruled that the ‘Home Rule Amendment’ to the Ohio Constitution does not grant the city of Munroe Falls the power to enforce its own oil and gas permitting scheme simultaneously with a state-wide permitting regime. (State ex rel. Morrison v. Beck … Continue Reading
On January 20, 2015 a U.S. District Judge overturned New Mexico’s ban on hydrocarbon extraction, which included a prohibition on hydraulic fracturing (“fracking”) in the state. (SWEPI, LP v. Mora County et al., Case No. 1:14-cv-00035-JB-SCY, filed Jan. 19, 2015.) Mora County, a political subdivision of the State of New Mexico, enacted the ban through a … Continue Reading
Today, the Environmental Protection Agency (“EPA”) announced a new goal to cut methane emissions from the oil and gas industry. (See White House Fact Sheet.) The EPA’s goal is to reduce methane emissions from the oil and gas sector by 40-45% from 2012 levels by 2025. The proposed regulations will set standards to reduce methane … Continue Reading
Last Tuesday, Alaska voters rejected a referendum proposal that would have repealed oil and gas production tax legislation signed into law by Governor Sean Parnell in May 2013, known the "More Alaska Production" Act.… Continue Reading
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 … Continue Reading
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 … Continue Reading
Today, the State Water Resources Control Board (State Board) released for public comment its Draft Industrial Storm Water Permit and supporting documents. This is the fourth (and likely final) version of the Draft Industrial Storm Water Permit, which is designed to replace the existing Industrial Storm Water Permit in place since 1997. The Draft Industrial … Continue Reading
Senator Mary Landrieu (D-LA) has confirmed today that she will take the position as Chair of the Senate Energy and Natural Resources Committee as soon as next week. (See previous post dated December 31, 3013.) The previous chairman – Senator Ron Wyden (D-OR) – is expected to be approved as Chair of the Finance Committee, and with … Continue Reading
While advances in hydraulic fracturing technology have resulted in an oil and gas boom in North Dakota and other parts of the U.S., the industry, federal and state regulators, and local communities have also had to contend with outgrowths of that development. One particular issue confronting those groups is how to handle and dispose of … Continue Reading
The Environmental Protection Agency (“EPA”) announced that starting on March 1, 2014, oil and gas operators performing offshore hydraulic fracturing operations must maintain an inventory of chemicals used to formulate frac fluid, and if there is any discharge of that fluid, to include the chemical formulation to the EPA within a quarterly discharge monitoring report. These new … Continue Reading
The North Dakota Supreme Court recently issued its second opinion in Van Sickle v. Hallmark & Associates, a case that has tested the boundaries of a mineral interest holder’s right to royalties when well operators go bankrupt. The Van Sickles own interests in oil and gas produced from a well in McKenzie County that’s operated … Continue Reading
On December 11, 2013, Stoel Rives and BSK Associates will host a complimentary breakfast seminar in Bakersfield, CA to share observations and strategies for complying with SB 4. Breakfast will begin at 7:30 a.m., with the program beginning at 8:00 a.m. The office of Jason Marshall, Deputy Director of the Department of Conservation, has confirmed … Continue Reading
In early September, OSHA issued a proposed rule that will limit permissible exposure to 50 micrograms of respirable crystalline silica per cubic meter of air. (See September 9, 2013 post.) This is approximately half of the current limit observed by industry. According to the U.S. Geological Survey, silica sand is used in approximately 60% of … Continue Reading
