July 1, 2015

U.S. Supreme Court Holds that EPA Must Consider Costs before Regulating Mercury Emissions from Power Plants

Administrative Watch

On June 29, 2015, the U.S. Supreme Court ruled in Michigan v. EPA that the U.S. Environmental Protection Agency (EPA) failed to properly consider compliance costs before promulgating the Mercury and Air Toxics Standards (MATS) rule for fossil fuel-fired power plants under Section 112 of the Clean Air Act (CAA). The Supreme Court’s decision could influence future EPA rulemakings and comes at a time when the agency is putting the final touches on a controversial suite of air regulations aimed at reducing carbon dioxide emissions from power plants.

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July 1, 2015

EEOC Rules Discrimination Based on Sexual Orientation is Sex Discrimination under Title VII

Employment Bulletin

Less than one month after the United States Supreme Court issued its landmark decision legalizing gay marriage nationwide, the U.S. Equal Employment Opportunity Commission (EEOC) issued a controversial interpretation in Complainant v. Anthony Foxx, Secretary, Department of Transportation (Federal Aviation Administration) in which it found that Title VII of the Civil Rights Act of 1964 prohibits discrimination based on an individual’s sexual orientation. The EEOC’s decision is a significant development in the law because it rejected several previous courts of appeals decisions holding that Title VII does not prohibit discrimination based upon sexual orientation. In this case, a supervisory air traffic control specialist with the Department of Transportation’s Federal Aviation Administration (FAA) filed an Equal Employment Opportunity (EEO) complaint alleging that the FAA subjected him to discrimination on the basis of sex. Specifically, the complainant alleged that he was discriminated against when he was denied a permanent position as a front line manager because he is gay. The EEO complaint was initially dismissed on timeliness grounds. The complainant appealed the dismissal to the EEOC, which reversed, concluding that the complainant’s allegations of discrimination on the basis of his sexual orientation stated a claim of discrimination on the basis of sex within the meaning of Title VII, and that such claim was timely. In light of its conclusion, the EEOC remanded the case for a decision on the merits.

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June 25, 2015

New Charleston Location

The State Journal

With a growing team of attorneys and client base, Babst Calland has moved to a new location at BB&T Square in Charleston, WV’s downtown business district.

“Our team of West Virginia attorneys welcomes the move to BB&T Square in the center of our beautiful downtown district,” said Steven Green, shareholder and energy attorney at Babst Calland. “The new space will accommodate our continued growth while enabling our entire staff to better serve current and new clients.”

Babst Calland opened its Charleston office in 2011, initially serving clients in the growing natural gas market in West Virginia and the Appalachian Basin. The office has grown steadily since then, and last year added a team of senior West Virginia attorneys in lateral moves from two other local firms. The firm focuses on representing clients through a multi-disciplinary team approach with attorneys in key practice areas, including energy and natural resources, environmental, employment and labor, business services, title, litigation, land use, and construction law.

The firm has more than 30 attorneys admitted to practice in West Virginia who have been serving the natural gas, coal and other industries for many years.

Its new Charleston office is located at 300 Summers St., Suite 1000.

Babst Calland also has offices in Pittsburgh and State College, PA., as well as Canton, Oh and Sewell, N.J.

June 14, 2015

Energy Spotlight: Jay Hammond

Pittsburgh Tribune Review 

In a depressed natural gas market in which every dollar counts for drillers, Jay Hammond tries to help people make deals efficiently.

The attorney joined Downtown Pittsburgh-based Babst Calland last month and advises energy companies on transactions including leasing, joint venture agreements, and mergers and acquisitions.

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June 12, 2015

2015 Babst Calland Report

U.S. remained world’s largest producer of petroleum and natural gas hydrocarbons in 2014.

PITTSBURGH, PA, June 12, 2015 – The law firm of Babst Calland today released its fifth annu­al energy industry report called, “The 2015 Babst Calland Report – Appalachian Basin Oil and Gas Industry: Rising to the Chal­lenge; Legal and Regulatory Perspective for Producers and Midstream Operators.” This annual review of energy and natural resources development activity acknowl­edges the continuing evolution of this in­dustry in the face of economic, regulatory, legal and local government challenges.

In this report, Babst Calland attorneys provide insights into Marcellus and Utica shale issues, challenges and recent devel­opments most relevant to Pennsylvania, Ohio and West Virginia. In general, a sig­nificant challenge ahead for shale devel­opers in the current price environment is for operators to continue to be productive and active in finding land and drilling wells while effectively delivering the natural re­source to market.

According to the U.S. Energy Informa­tion Administration, regional and national natural gas production reached an all-time high at the end of 2014. Thus far in 2015, the oil and gas industry’s rig count in the Appalachian Basin and elsewhere is down substantially compared to the previous two years. Although Marcellus shale devel­opment is leading the way in the U.S. natu­ral gas production by producing 17 million cubic feet per day of gas, persistently low gas prices are forcing producers to curtail capital expenditures, adjust staffing and wring cost savings from their respective supply chains.

Joseph K. Reinhart, shareholder and co- chair of Babst Calland’s Energy and Natu­ral Resources Group, said, “This Report identifies the many challenges faced by the oil and gas industry, including commod­ity pricing, efforts to impose or increase taxes, pipeline capacity, vocal opposition, environmental and litigation challenges, impacts of local regulation, and the grow­ing importance of due diligence in asset transactions.”

The 44-page Report contains five sec­tions, each addressing key challenges for Appalachian Basin oil and gas producers and midstream operators.

June 5, 2015

Maximizing the Marcellus Shale: Benefits of Shallow Well Pooling

West Virginia Executive

Despite the state legislature’s efforts, laws in West Virginia that allow pooling exclude shallow horizontal wells. Since wells drilled in the Marcellus Shale are considered shallow, creating a shallow pooling law may be the key to maximizing the state’s shale development.

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June 4, 2015

Law firm: Pa. municipalities becoming more aggressive in attemps to regulate gas industry

PIttsburgh Business Times

As a result of a Pennsylvania Supreme Court decision, municipalities are adopting a greater number of ordinances that impact oil and gas operations, according to a new report by Pittsburgh law firm Babst Calland.

“Local governments are adopting, at an accelerated pace, ordinances that regulate the oil and gas industry’s operations, sometimes in a very aggressive and restrictive fashion,” the firm, which tracks local rule-making, said in the report.

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June 1, 2015

OSHA expands the Severe Violator Enforcement Program to include oil and gas operations

The PIOGA Press

On February 11, the Occupational Safety and Health Administration (OSHA) issued a memorandum to all OSHA regional directors and state plan designees authorizing the addition of upstream oil and gas hazards to the list of high-emphasis hazards in the Severe Violator Enforcement Program (SVEP). This policy change is significant because
it permits OSHA to concentrate resources and enforcement efforts on oil and gas employers any time an incident meets the SVEP criteria.

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June 1, 2015

Individual, Collective and Class Action Suits Alleging Misclassification of Oil and Gas Industry Workers Flood the Dockets

Employment Bulletin

Individual, collective and class action lawsuits alleging misclassification of oil and gas industry employees under federal and state wage hour laws have flooded the Pennsylvania and Ohio dockets. This is occurring approximately two and a half years after the United States Department of Labor (DOL) prioritized an ongoing multi year enforcement initiative under the Fair Labor Standards Act (FLSA). By December 2014, this initiative resulted in more than 5,300 oil and gas industry employees recovering nearly $4.5 million in back wages for unpaid overtime and other wage violations.

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May 31, 2015

Failing to properly calculate overtime payments on day rates and bonus payments could lead to significant liability

The PIOGA Press

Recently, the United States Department of Labor (DOL) announced that it has helped more than 5,300 oil and gas workers recover nearly $4.5 million in back wages for unpaid overtime and other wage violations as a result of an “ongoing multiyear enforcement initiative” conducted by the DOL’s Wilkes-Barre and Pittsburgh Wage and Hour Division offices which found significant violations of the Fair Labor Standards Act (FLSA). The DOL found that the majority of the FLSA violations were due to improper payment of overtime. In many cases, employee’s production bonuses were not included in their “regular rate” of pay. In other cases, employers failed to pay overtime to employees that were paid day rates. The DOL attributed the wage violations in part to the structure of the oil and gas industry in Pennsylvania and West Virginia. According to the DOL, job sites “that used to be run by a single company can now have dozens of smaller contractors performing work, which can create downward economic pressure on lower level subcontractors,” which can lead to noncompliance with wage and hour laws and regulations.

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May 28, 2015

EPA Issues New Rule on Definition of Waters of the United States

Administrative Watch

On May 27, 2015, the United States Environmental Protection Agency (EPA) and the United States Army Corps of Engineers (Corps) released the long-awaited final rule redefining the extent of the agencies’ jurisdiction over “waters of the United States” (WOTUS) under the Clean Water Act. The Final Rule, known as the “Clean Water Rule,” abruptly changes (i.e., within 60 days of publication in the Federal Register) the types of waters that will be regulated under numerous federal programs, including NPDES permitting, wetland and watercourse (i.e., dredge and fill) permitting, spill response planning, and spill reporting. The Final Rule will affect all types of industries, real estate development, construction activities, and other entities by increasing the types and extent of waters that will be regulated under the Clean Water Act and introducing a new analysis for evaluating whether a water is jurisdictional.

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May 22, 2015

Charleston Area Alliance Excited to Announce Newest Member

Charleston Area Alliance

We would like to send out a warm welcome to our newest member of the Alliance, Babst Calland Clements & Zomnir, P.C.

Babst Calland is one of the most respected top-tier law firms in the mid-Atlantic United States. Their attorneys have the knowledge and experience needed to solve complex legal problems for corporations, private companies and organizations of all types. Babst Calland attorneys deliver a broad range of quality legal services, responding quickly and efficiently to answer questions and solve problems and litigate issues in federal state courts and before administrative tribunals. Babst Calland’s Charleston, WV office handles a wide range of legal issues that include a particular focus on natural gas and other energy related issues, as well as environmental, business services, title, litigation, land use, construction, and employment and labor law. Babst Calland just moved to their new office centrally located in the BB&T building in Downtown Charleston.

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May 1, 2015

The EEOC’s Resistance to ACA-Approved Employer Wellness Plans: Long Awaited Guidance May Be On Its Way

Employment Bulletin

On April 20, 2015, the United States Equal Employment Opportunity Commission (EEOC) issued its long-awaited Proposed Amendment to Regulations under the Americans with Disabilities Act (the “Proposed Rule”), which provides guidance on the EEOC’s application of the Americans with Disabilities Act (ADA) to employer wellness programs. Specifically, the Proposed Rule addresses: (1) whether a wellness program is considered “voluntary”; (2) what notice must be provided to employees concerning a wellness program; and (3) the limits to incentives or disincentives that may be provided by employers. While the Proposed Rule offers some much needed clarity to the EEOC’s position on wellness programs, it also raises several questions and concerns in an already muddied area of law. The publication of the Proposed Rule triggered a 60-day public notice and comment period. Employers sponsoring wellness programs are encouraged to submit comments by June 19, 2015.

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April 30, 2015

Zoning ordinance validity challenges persist in the wake of the Robinson Township plurality opinion

The PIOGA Press

In a somewhat ironic twist, anti-industry residents and environmental groups have been relying on their victory in Robinson Township v. Commonwealth, 83 A.3d 901 (2013), which invalidated the statewide standardized land use control set forth in Act 13 and restored local land use control over oil and gas operations, to challenge local zoning ordinances that regulate oil and gas development. The challengers in these validity actions generally argue that, per the plurality’s expansion of the Pennsylvania Constitution’s Environmental Rights Amendment (ERA) in Robinson Township, each municipality must engage in substantial environmental and safety analysis prior to enacting oil and gas regulations or issuing permits thereunder. According to the challengers, an ordinance enactment process or permit review process that does not satisfy these requirements is invalid.

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April 28, 2015

Pa. Supreme Court Continues to Clarify Property Right Protections: Land Use & Planning

The Legal Intelligencer

The Pennsylvania Supreme Court recently rendered a decision in Reading Area Water Authority v. Schuylkill River Greenway Association, 100 A.3d 572 (Pa. 2014), further narrowing the definition of what constitutes a “public purpose” for a taking by eminent domain in Pennsylvania. The Reading opinion is significant, as it constitutes yet another Pennsylvania decision favoring the protection of private property rights from seizure by the government. The decision is particularly noteworthy in the context of the U.S. Supreme Court’s controversial expansive view of the eminent domain power in Kelo v. City of New London, 454 U.S. 469, from 2005.

*Reprinted with permission from the 4/28/15 issue of The Legal Intelligencer. © 2015 ALM Media Properties, LLC. Further duplication without permission is prohibited.  All rights reserved.

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