News

The 2020 Babst Calland Report Highlights Legal and Regulatory Challenges for the U.S. Oil and Gas Industry

Oversupply and pandemic bring on need to adapt to a changing market

PITTSBURGH – Babst Calland today published its 10^th annual energy industry report: The 2020 Babst Calland Report – The U.S. Oil & Gas Industry: Federal, State, Local Challenges & Opportunities; Legal and Regulatory Perspective for Producers and Midstream Operators. 

In this Report more than 50 energy attorneys provide perspective on the current state of the U.S. natural gas and oil production industry and its growth to historic highs due to more than a decade of advances in on-shore horizontal drilling and high-volume hydraulic fracturing. It asserts that despite current challenges, a maturing shale industry is poised for future growth as natural gas and oil producers have driven down the costs of production. Transportation options for moving these natural resources from growing areas of production to customers continue to be built, even with new hurdles from regulators and other stakeholders.

Joseph K. Reinhart, shareholder and co-chair of Babst Calland’s Energy and Natural Resources Group, said, “The U.S. natural gas and oil industry has experienced tremendous growth and change since we first published this Report in 2011. Fast forward to an unprecedented 2020 with a pandemic, a corresponding economic slow-down and oversupply of natural gas and crude oil. With increased public and government pressure, sustained low prices, and less-reliable financing options, resiliency will continue to be the driving force of a dynamic energy market that continues to evolve.

Report highlights

The Babst Calland Report is an annual review of the issues and trends at the federal, state and local level in the oil and gas industry over the past year. The 102-page Report covers a range of topics from the industry’s business outlook, regulatory enforcement and rulemaking to developments in pipeline safety and litigation trends. The Firm’s collective legal experience and perspectives on these and related business developments are highlighted in this Report, including those summarized below:

• Long-term, U.S. energy production appears poised to continue to outstrip domestic consumption due in some measure to increased consumption efficiency, along with the obvious ramifications from the natural gas revolution.
• The regulatory environment is focused on climate change, reducing emissions, water quality developments, and enforcement. Increased volumes of written agency guidance, enforcement, and penalties continue to challenge the industry.
• Citizens groups continue to actively challenge federal and state initiatives designed to expand natural gas and oil development, creating delays and uncertainties.
• Land use and zoning challenges continue at the local level. Increasing industry headwinds have resulted in a slowdown of new permitting activity amid ongoing challenges and ordinance restrictions.
• Public interest in pipeline safety has grown amid opposition and new rules from the Pipeline and Hazardous Materials Safety Administration in response to increased public and congressional pressure to initiate and finalize new or revised pipeline safety regulations. Operators seek to install new or replace existing pipelines throughout the U.S. while advocacy groups aggressively oppose many pipeline projects.
• Title legislation and court decisions vary by state and basin. In Pennsylvania, for example, Act 85 took effect in January 2020 and defines the conditions in which oil and gas producers may drill a lateral wellbore that crosses between two or more pooled units.
• Although 2019 saw renewed claims of adverse health effects allegedly related to oil and gas development, support for such claims continues to be limited, as now noted by numerous publications.
• Unmanned aircraft systems take hold in the energy sector. Despite the pandemic and its impacts, unmanned aircraft systems (UAS) have emerged as essential tools for the energy industry for conducting complex inspection and monitoring of difficult to access infrastructure and locations.
• From a workforce standpoint, COVID-19 conditions and other wage and hour regulations, amendments to the Family Medical Leave Act, and expanded unemployment benefits under the CARES Act have had an impact on companies across the country.

The natural gas and oil industry continues to expand its reach and impact on U.S. energy supply and independence. Each company has its own set of opportunities and challenges to navigate based on its financing, debt, shareholder goals, and operations and infrastructure footprint. Nonetheless, the United States’ plentiful supply of natural gas and oil is expected to continue to fuel the country’s economic future and support national security.

Request a copy of the Report

Babst Calland’s Energy and Natural Resources attorneys support clients operating in multiple locations throughout the nation’s shale plays. To request a copy of the Report, contact info@babstcalland.com.

Veteran Environmental Attorney Joins Babst Calland’s Washington, D.C. Office

WASHINGTON, DC and PITTSBURGH, PA – May 6, 2019 – Babst Calland today announced the lateral move of Julie Domike, a veteran environmental attorney, who joined the firm’s Washington, D.C. office as shareholder, effective April 29.

Ms. Domike will provide senior-level legal counsel in key practice areas including Environmental, Mobility, Transport and Safety, and Litigation. Ms. Domike has represented numerous clients across the country in complex negotiations with the U.S. Department of Justice and EPA, resulting in global settlements affecting multiple company facilities. Much of Ms. Domike’s practice involves permitting and other issues under the Clean Air Act, addressing issues associated both with mobile and stationary sources.  Ms. Domike has worked with companies engaged in developing new projects or modifying existing plants, and she has worked with clients on environmental audits and subsequent correction and disclosure to state and federal environmental agencies.

Having previously served as an attorney and manager at the United States Environmental Protection Agency (EPA) Headquarters, Ms. Domike understands the Agency’s enforcement approach and counsels clients to engage with EPA in rulemaking, and enforcement. She has represented a variety of companies that have been the focus of EPA’s regulations, including refineries, engine manufacturers, independent power producers, chemical plants, fuel producers, and construction and farm equipment makers.

Commenting about this lateral move to the Firm, Donald C. Bluedorn II, managing shareholder of Babst Calland, said, “We are very pleased to welcome Julie to our Firm and to our established team in Washington, D.C. She is a natural fit for us and her experience further complements the existing synergies that we offer clients, particularly in the Energy, Mobility, and Transportation industries.”

Julie Domike’s arrival at Babst Calland also represents sustained growth in the Mobility practice, led by Firm shareholder Tim Goodman, responding to our clients’ requests to provide environmental and emissions mobile source services before EPA, the California Air Resources Board (CARB), and other regulatory agencies as a part of our best-in-class team.”

“As an attorney focused on environmental law, I am pleased to be joining a well-established, multidisciplinary legal team representing clients in the various industries where I have served ” said Attorney Julie Domike.

“Since opening Babst Calland’s Washington, D.C. office in 2016, we have grown to 10 professionals focused on serving clients in the energy, mobility, emerging technologies and transportation sectors. Julie brings a new dimension to our team, and allows the firm to better serve our clients throughout the country.” said James Curry, managing shareholder of the Washington, D.C. office.

Farone, Harris, Hido and Oven Join Babst Calland

PITTSBURGH, PA, April 29, 2019 – Attorneys Alexandra G. Farone, Bilal M. Harris, Daniel P. Hido and Amy T. Oven joined Babst Calland.

Alexandra G. Farone is an associate in the Litigation and Employment and Labor groups of Babst Calland. Ms. Farone has a broad range of litigation experience in several practice areas including complex commercial litigation, premises liability, employment, construction, and oil and gas law. She also has experience counseling corporate clients regarding employment matters including best practices and procedures, and compliance with the FLSA, ADA, ADEA and Title VII. She is a 2017 graduate, magna cum laude, of the University of Pittsburgh School of Law.

Bilal M. Harris is an associate in the Firm’s Environmental Group. As a former attorney for the U.S. Environmental Protection Agency (U.S. EPA), Mr. Harris utilizes his experience to assist clients on a broad range of matters under major federal and state environmental programs, with emphasis on matters arising under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). He is a 2011 graduate of Howard University School of Law.

Daniel P. Hido is an associate in the Environmental Group. Mr. Hido assists clients on environmental regulatory matters in the context of compliance counseling, enforcement defense, remediation obligations, and business transactions. With a broad background in the principal federal environmental regulatory programs, he particularly focuses on hazardous and non-hazardous waste issues, the Resource Conservation and Recovery Act (RCRA) and the Clean Water Act. He is a 2014 graduate of Cornell Law School.

Amy T. Oven is a staff attorney in the Energy and Natural Resources Group of Babst Calland. Mrs. Oven counsels various energy, oil, gas and mineral-related clients on transaction matters, including title examination, title curative, oil and gas title opinions, division order title opinions and due diligence. She is a 2007 graduate of the University of Pittsburgh School of Law.