Now that our new president has been elected (Proud Boys, its over!), let’s take a look at what people smarter than I are predicting it will mean for the domestic oil and gas industry and the climate. In summary: bad for one, no meaningful help for the other, and the fury of the fiscal kraken will be unleashed. (As usual these are summaries; see the articles for a fuller picture).
Continue Reading Predicting the Effect of Biden’s Election on the Oil Industry and the Climate
Louisiana Oil Pipeline Expropriation System is Constitutional
The battle lines between pipeline companies and landowners are still being drawn. In Bayou Bridge Pipeline v. 38.00 acres nobody had a gun, nobody got taken away, and one side was right and one side was wrong.
There were two survivors:
- The constitutionality of Louisiana’s statutory scheme for expropriation of private land for oil pipelines, and
- BBP’s gamble to trespass and begin work before a judgment was obtained. As BBP said, “time is money”.
Note to non-Louisiana lawyers: Unlike Texas at least, a Louisiana pipeline must obtain a judgment of expropriation before going on the property.
Continue Reading Louisiana Oil Pipeline Expropriation System is Constitutional
On the Way to a Renewable Energy Future: What Could Possibly Go Wrong?
As the US continues to be more successful in reducing CO2 emissions than the parties to the Paris Climate Accord, those who would do the St. Vitus dance on the grave of the domestic oil and gas industry should consider the risks posed by the alternatives. Here are thoughts from some who know better than
Oil and Gas Producers – ESG is Here To Stay
The focus from many quarters on “Environmental, Social, & Governance” is intensifying. If you attended TIPRO’s annual summer conference week before last you heard Rep. Kenny Marchant confirm his belief that ESG considerations are not going away. Your energy business will be more competitive if you understand ESG and embrace it
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TOM MCNULTY, Principal
How Will the Texas Railroad Commission Address Gas Flaring?
Gas flaring, especially in the Permian and the Eagle Ford, is coming in hot these days at the Texas Railroad Commission. Presented here are viewpoints from several stakeholders in the discussion. My comments are summaries. For a fuller understanding please read the reports for yourself.
The players are in general agreement on several points:
- There needs to be an end to routine gas flaring.
- Texas flares a lot of gas: About as much annually as all of its residential users combined, or maybe as much as the seven largest cities, or maybe Houston. It depends on who’s talking. Values vary but in the Permian it ranges from $450 Million to $750 Million.
- Progress is being made, plenty for some, not enough for others.
The Texas Methane and Flaring Coalition
These seven trade associations and 40 operators are members of the Railroad Commission’s Blue Ribbon Task Force for Oil Economic Recovery. Their positon, among others:
- More detailed data submissions from operators will result in more effective operational and regulatory decisions that will reduce flaring.
- A proposed flaring matrix (see the report) identifies situations where flaring is necessary and makes recommendations for the application of Rule 32 that will result in overall flaring reductions because of the shortened time frame for administrative approvals.
- Methane emissions from oil and gas systems are down 23 percent since 1990.
- Texas flaring intensity is well below that of comparable countries according to the World Bank.
Continue Reading How Will the Texas Railroad Commission Address Gas Flaring?
The Fracking Fracas, Part 2
Last week’s discussion of the Pennsylvania Grand Jury’s report on alleged failures in enforcement of hydraulic fracturing is worthy of a follow-up. Here, combined into one document, is the Grand Jury’s report, the Department of Environmental Protection’s response (beginning on page 112) and the Department of Health’s response (beginning on page 165).
The Grand Jury recommends
Expand no drill zones, stop the “chemical cover-up”, regulate all pipelines, add up the air pollution sources, transport toxic waste more safely, deliver a real public health response, end the “revolving door”, and use the criminal laws.
The DEP responds
The report is unreliable, legally and factually inaccurate, not informed by applicable law or facts, relies on undocumented assertions, “does the public a disservice”, and the Attorney General failed to give the Grand Jurors accurate information. This, from a Democratic governor.
The former Secretary defends the department
A response from Michael Krancer, Secretary of the DEP from 2011 until 2013, says:
What’s New in the Fracking Fracas
There is “new news” and there is the same-old-same-old. Today is mostly the latter but it seems more “out there” than in it used to be.
The Pennsylvania Attorney General convened a grand jury that slammed regulatory failures in Pennsylvania gas drilling and recommended setbacks that would effectively destroy the ability to develop shale resources.
Marcellus Pipeline Permits Rejected by New York and New Jersey
If you follow the Marcellus shale there are political developments you should know about. Daniel Markind, a partner in the Philadelphia office of Flaster Greenberg PC, gave me permission to share this recent blog post.
Devastated By Coronavirus, New York’s Pipeline Politics Ensure A Tougher Second Round
By: This article originally ran on Forbes.com on May 20, 2020. All rights reserved.
Approximately 30% of all confirmed coronavirus cases in the United States have been reported in the New York City metropolitan area, which is located mainly in southeastern New York state and northeastern New Jersey. Last weekend, the administrations of the Governors of both states, Andrew Cuomo of New York and Phil Murphy of New Jersey, rejected once again the key permits for the Northeast Supply Enhancement Project (NESE), a natural gas pipeline that would have ensured sufficient natural gas supply to much of New York City and its environs. These decisions probably mean the death of NESE.
Click here to read the article in its entirety on Forbes.com.
Continue Reading Marcellus Pipeline Permits Rejected by New York and New Jersey
The Oil Business as an Essential Business During COVID-19
Gray Reed lawyer Ethan Wood explains what 
the oil industry’s classification as an essential business means during this crisis.
Read it here: COVID-19: Shelter-in-Place Orders and the Energy Industry
A musical interlude for the times.
And another. It’s about the coronavirus!
DONT CLICK ON THE VIDEO BELOW WITHOUT HEEDING THIS WARNING. By my count, this
What’s New in the War Over the Environment?
Is the world hurtling irreversibly toward incinerating, extinction-causing, fossil-fuel induced destruction while we’re doing nothing about it? Maybe not, if you consider overlooked and ignored sources of information.
We You will always have Paris
Despite bailing out of the Paris Climate Accord, the United States led the world in reducing CO2 emissions in 2019.