North America Shale Blog

North America Shale Blog

U.S. Department of the Interior Launches Online Data Portal Giving Access To Revenue Data

Posted in Oil and Gas

Last Thursday, December 11, 2014, the Department of the Interior (“DOI”) became the latest governmental agency to open the doors to some of its data via a new online portal located at https://useiti.doi.gov/.[i]

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The new portal is part of the U.S. implementation of the Extractive Industries Transparency Initiative (“USEITI”) and follows President Obama’s May 9, 2013 executive order, making open and machine-readable data the new default for government information:[ii]

“To promote continued job growth, Government efficiency, and the social good that can be gained from opening Government data to the public, the default state of new and modernized Government information resources shall be open and machine readable. Government information shall be managed as an asset throughout its life cycle to promote interoperability and openness, and, wherever possible and legally permissible, to ensure that data are released to the public in ways that can make the data easy to find, accessible, and usable. In making this the new default state, executive departments and agencies (agencies) shall ensure that they safeguard individual privacy, confidentiality, and national security.” Continue Reading

Poe Leggette & Alex Obrecht Present on the Safety Concerns that Face Crude-by-Rail Transportation

Posted in Oil and Gas, PHMSA, Transportation

BakerHostetler’s energy group co-head and a member of the energy team recently presented on the safety concerns that confront the transportation of crude oil by rail. Focusing primarily on federal regulation, the team explained the role and powers of the Department of Transportation (DOT), the Federal Railroad Administration (FRA), and the Pipeline and Hazardous Materials Safety Administration (PHMSA). Additionally, the team outlined the regulatory efforts to date and discussed the possible outcomes of the current crude-by-rail rulemaking.

Although no strangers to traditional oil and gas regulation, midstream and upstream companies entering crude-by-rail transportation may find themselves facing new regulators, primarily FRA and PHMSA. These agencies can exercise significant power over crude-by-rail transportation, including unannounced inspections,[1] emergency orders,[2] and traditional rulemaking. Noncompliance with the agencies’ mandates may also result in significant civil, and even criminal, penalties.[3]
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Local and National Environmental Groups Seek to Intervene in Denton Fracking Case

Posted in Fracking, Hydraulic Fracturing, Oil and Gas, Texas

On Thursday, December 4, 2014, in Texas Oil and Gas Assoc. v. City of Denton, Cause No. 14-08933-431, 431st District Court, Denton County, Texas, the Denton Drilling Awareness Group and Earthworks filed a Joint Petition in Intervention seeking to “provide a vigorous defense of the legality and enforceability” of the December 2, 2014, ordinance (the “Ordinance”) which banned hydraulic fracturing in Denton. The suit was originally filed on November 5, 2014, by the Texas Oil & Gas Association, a day after Denton voters passed the Ordinance by a 59-41 percent margin.

The Denton Drilling Awareness Group is a Texas nonprofit corporation that created the “Frack Free Denton” campaign and extensively supported the ban. Earthworks is a nonprofit organization based in Washington, D.C., that worked with the Denton Drilling Awareness Group to support the Frack Free Denton campaign and advocated for passage of the fracking ban. Continue Reading

Denton Ban Emboldens Fracking Opponents in Other Texas Cities

Posted in Fracking, Hydraulic Fracturing, Texas

After the first municipal ban on hydraulic fracturing in Texas went into effect on December 2in Denton, residents of other Texas cities are considering whether to pursue bans in their own backyards. Residents from disparate parts of the Lone Star state, including Reno (100 miles northeast of Dallas in Lamar County), Alpine (170 miles southwest of Midland in Brewster County), and Presidio (250 miles southeast of El Paso in Presidio County), have taken notice of the Denton election results.
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To Fracture or Not to Fracture, That Is the Question in Florida

Posted in Florida, Fracking, Hydraulic Fracturing

Using one line to get to the heart of the matter, on December 2, 2014, two Florida senators filed a bill aimed to ban fracking throughout the state.  Senate Bill 166 defines hydraulic fracturing as the process of pumping fluids underground to create fractures in rock for the purpose of producing or recovering oil or gas.  Thereafter the legislative action states: “A person may not engage in hydraulic fracturing in this state.”  Beyond prohibiting this type of exploration activity, the measure makes no effort to include enforcement provisions or provide any state regulatory agency authority to act.  (Text of Senate Bill 166)

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Illinois Drilling Rules Dodge First Blow in Latest Lawsuit

Posted in Hydraulic Fracturing, Illinois

Illinois’ fledgling hydraulic fracturing industry avoided another delay last week. The rules, which adopt a regulatory framework to facilitate and regulate unconventional drilling, were finally published after over a year in the works. Last week, the rules faced a preliminary injunction in a pending lawsuit brought by Illinois landowners, who oppose unconventional drilling. However, Judge Barbara Crowder denied the request for a preliminary injunction, explaining that the landowners did not face irreparable harm.

The group of landowners sued the Illinois Department of Natural Resources (IDNR), complaining that it skirted the appropriate rulemaking procedures when it adopted its latest oil and gas regulations. Last summer, Illinois enacted the Hydraulic Fracturing Regulatory Act (HFRA), which gave the IDNR the power to make rules governing the unconventional drilling industry. In August, after considering thousands of public comments, the IDNR handed its draft rules over to the Joint Committee on Administrative Rules (JCAR), which reviewed them until early November. The JCAR had the final word on whether the rules fairly balanced the industry’s and environmentalists’ concerns. On November 6, it approved and published the IDNR’s rules.

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Colorado Oil & Gas Association Seeks Overturn of Broomfield Hydraulic Fracturing Ban

Posted in Colorado, Fracking, Hydraulic Fracturing, Oil and Gas

On Monday, November 24, the Colorado Oil & Gas Association (COGA) filed a lawsuit in the Broomfield District Court for declaratory judgment to invalidate that city’s temporary ban on hydraulic fracturing. The ban, known as Question 300, passed in November 2013 by 20 votes, places a five-year moratorium on hydraulic fracturing and prohibits storage in open pits and disposal of waste from hydraulic fracturing in Broomfield. Question 300 was put on the ballot by a grassroots group called Our Broomfield, which acted in response to oil and gas company Sovereign’s plans to begin hydraulic fracturing in the North Park area near Prospect Ridge Academy.

Similar drilling bans in Fort Collins, Lafayette and Longmont have already been struck down this year because they violated state law. “Colorado has among the most stringent and well-constructed oil and gas regulations in the nation, and we have a court system that respects the rule of law and rights granted through contractual agreements,” stated COGA President Tisha Schuller in a news release Monday. “For the last three years, COGA has worked diligently to create operating agreements with local jurisdictions that respect the law and meet the needs of local communities. It is my sincere hope that we can get the lawsuits resolved so we can focus on the important and successful work of engaging with our communities.” Continue Reading

EPA Announces New Greenhouse Gas Reporting Rule for Oil and Gas Sector

Posted in EPA Issues, Oil and Gas

On Friday, the U.S. Environmental Protection Agency (EPA) announced new rules for reporting greenhouse gas emissions that will apply to the oil and gas sector, part of EPA’s plan to institute a comprehensive strategy for dealing with methane in oil and gas production. The proposed rules would alter the greenhouse emissions reporting program first mandated by Congress in 2008.

Specifically, the new rules will change the calculation methods for oil and gas emissions by changing the units of measurement, altering the equations used for collecting and reporting data, and requiring separate reports for methane, carbon dioxide and nitrous oxide rather than a single category for “carbon dioxide equivalent.”  Additionally, the new rules would alter the equations for global warming potential and require oil and gas operators to calculate individual emissions in metric tons.

The proposal predicts that these new rules will “reduce the likelihood of errors and inconsistencies” by “reduc[ing] the number of calculations that need to be completed by reporters” and otherwise improving consistency among reporting entities. Continue Reading

The Myth of the Regulatory Gap: BLM’s Proposed Hydraulic Fracturing Rule Compared to Existing State Law

Posted in California, Colorado, Hydraulic Fracturing, New Mexico, North Dakota, Utah, Wyoming

For the better part of the last decade, oil and natural gas production from domestic wells has increased steadily. Technical advancements in identifying promising sources of oil and gas and extracting hydrocarbons from previously inaccessible formations has allowed domestic producers to reach production levels once thought impossible. Virtually all of this increased production has come through the application of the innovative but controversial well stimulation technique of hydraulic fracturing – the procedure by which oil and gas producers inject water, sand, and certain chemicals into tight-rock formations (typically shale) to create fissures in the rock and allow oil and gas to escape for collection in a well.

But while overall production growth has been profound, the domestic energy renaissance has left behind one important group of potential beneficiaries: American taxpayers. Because although domestic production continues to grow steadily, the percentage of that production that is extracted from federal lands has declined for most of the last decade. At first glance, this divergence should be surprising given that the federal government controls approximately 650 million surface acres – approximately one-third of the nation’s surface area – and over 700 million acres of federal mineral estate, as well as more than 55 million acres of Indian mineral estate. And for oil and gas operators in the western United States, in particular, federal lands are exceedingly difficult to avoid.

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Ohio Elections Yield Mixed Results on Local Hydraulic Fracturing Bans

Posted in Hydraulic Fracturing, Ohio

Last week’s Election Day in Ohio produced victories for fracing supporters and opponents alike. Proposed hydraulic fracturing bans were on the ballot in four different municipal contests.  Voters in one city, Athens, approved a ban, while similar legislation was rebuffed in three other municipalities. Looming in the background of these referenda, however, is the Ohio Supreme Court’s anticipated decision in Monroe Falls v. Beck Energy Corporation, which could determine the extent of localities’ authority to regulate fracing activities.

The ban in Athens, a city in the southeastern part of the state, passed in resounding fashion with 78% of the vote. There, voters endorsed legislation that prohibits fracing as well as the transportation of wastewater from any such operations. Although no oil or gas drilling currently occurs within the city’s borders, proponents of the ban say the measure is necessary to protect Athens’s drinking water. City councilman Jeffrey Risner voiced this sentiment: “We’re very cognizant of the fact that if fracking fluids got in there, we could not get them out.” Continue Reading