USEPA Proposes Amendments to Air Rules Affecting Oil and Gas Industry

Today the U.S. Environmental Protection Agency (USEPA) published proposed amendments to federal air regulations at 40 C.F.R. 60, Subpart OOOO (Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution).  Subpart OOOO was first promulgated in 2012 and later revised in 2013.  In response to petitions for administrative reconsideration, USEPA is now proposing additional changes to Subpart OOOO and requesting public comment on a limited set of issues, including the management of flowback gases and liquids associated with well completions.  Comments are due on August 18, 2014 (or September 2, 2014, if a public hearing is requested).

Public Comment Deadlines Extended for Key USEPA Actions

The U.S. Environmental Protection Agency (USEPA) recently extended the public comment deadlines associated with its proposed rulemaking to redefine “waters of the United States” for federal Clean Water Act programs and its request for information regarding a possible rulemaking for the disclosure of hydraulic fracturing chemicals.  The new comment deadline for the Clean Water Act rulemaking is October 20, 2014.  The new deadline to comment on the advance notice of proposed rulemaking regarding chemical disclosure is September 18, 2014.

Administrative Watch: RACT Rulemaking Expected to Impact Major Sources of NOx and VOC Emissions in Pennsylvania

Proposed regulatory amendments published on April 19, 2014 are likely to affect hundreds of facilities in Pennsylvania.  The Pennsylvania Department of Environmental Protection (PADEP) has estimated that 141 sources will need to install additional pollution control equipment under the proposal.  Read our full Administrative Watch to learn more.

“Waters of the United States” Rule Open for Public Comment

On April 21, 2014, the U.S. Environmental Protection Agency published in the Federal Register its proposed rule to define “waters of the United States” and related key terms for purposes of determining the extent of federal agency jurisdiction under the Clean Water Act.  Public comments will be accepted until July 21, 2014.

EPA Proposes Amendments to Greenhouse Gas Reporting Rule for Petroleum and Natural Gas Systems

This week the U.S. Environmental Protection Agency (EPA) published a proposal to amend Subpart W of the greenhouse gas reporting program rules, which affects the Petroleum and Natural Gas Systems source category.  According to EPA’s fact sheet, “[t]he proposal includes revisions to certain calculation methods, monitoring and data reporting requirements, terms and definitions, and technical and editorial errors that were identified during the course of implementation.”  The fact sheet also indicates that EPA is proposing confidentiality determinations for “new or substantially revised data elements” and proposing a revised confidentiality determination for one existing data element.  EPA expects that the amendments would not “significantly” change the amount of entities or greenhouse gas emissions covered by the reporting program.

Pennsylvania DEP Announces Chapter 78 Comment Period, Webinars and EQB Public Hearing Schedule

Today, the Pennsylvania Department of Environmental Protection (DEP) issued a press release to announce the opening of the public comment period for its long-awaited proposal to revise the oil and gas regulations at 25 Pa. Code Chapter 78 (environmental protection standards).  The comment period will open this Saturday when the official notice is published in the Pennsylvania Bulletin.  Comments will be accepted through February 12, 2014.

During the public comment period, the Pennsylvania Environmental Quality Board (EQB) will host seven public hearings across the Commonwealth.  Persons wishing to present testimony at a hearing must contact the EQB at least one week in advance.  In addition to the EQB hearings, DEP will host two informational webinars on Thursday, December 19th from 2:30 – 3:30pm and Friday, January 3rd from 9:30 – 10:30am.  DEP will answer questions about the rulemaking during the webinars.

New York’s Proposal to Lift Ban on LNG Storage Facilities Stirs Debate

Environmental groups and industry organizations are at an impasse over regulations proposed by the New York State Department of Environmental Conservation (DEC) that would lift the state’s 40-year ban on the construction and operation of liquefied natural gas (LNG) facilities.  New York enacted a moratorium on the construction of LNG storage facilities after the explosion of an LNG tank in Staten Island killed 40 workers in 1973.  Several environmental groups that oppose the proposed regulations commented that lifting the LNG ban will open the door for shale gas development through hydraulic fracturing in New York.  Industry groups and the DEC, however, said that the regulations would facilitate the use of LNG in long-haul trucks, a cheaper and cleaner option to diesel fuel.  “These regulations have nothing whatsoever to do with fracking and everything to do with putting cleaner trucks on our highways,” said a spokeswoman for the DEC.   The DEC is expected to finalize the proposed regulations in early 2014.

Federal Pipeline Safety Regulator Proposes to Update Industry Standards Incorporated by Reference

On August 16, 2013, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) published a notice of proposed rulemaking (NPRM) in the Federal Register that contained a package of periodic updates to the voluntary consensus standards that are incorporated into the federal pipeline safety regulations by reference, as well as several non-substantive, miscellaneous amendments.  As PHMSA explained in the NPRM, the National Technology Transfer and Advancement Act of 1995 (Publ. L. 104-113) requires federal agencies to adopt voluntary consensus standards by regulation where appropriate, and there are 64 such standards incorporated by reference into the federal pipeline safety regulations.  PHMSA also explained that a congressional mandate in the recent reauthorization of the federal pipeline safety laws requires the agency to make these industry standards available to the public, free of charge, on the Internet.  Among the noteworthy changes in the NPRM is a proposal to incorporate the first edition of API Recommended Practice 5LT, “Recommended Practice for Truck Transportation of Line Pipe,” into the federal pipeline safety regulations.  A variety of other applicable industry standards would also be updated, including those that apply to the transportation of line pipe by rail, barge, marine vessel; the specifications for line pipe, pipeline valves, and storage tanks; and the methodology for conducting pipeline external corrosion direct assessments.  PHMSA is also proposing to clarify the text of three regulations by making non-substantive changes.

West Virginia Legislature to Consider Horizontal Well Rules and Several Energy Bills

The State Journal reports that West Virginia lawmakers introduced 60 energy-related bills in the first two days of the 2013 regular West Virginia legislative session.  Twenty four of the bills concern natural gas, while 16 address a broad range of coal-related issues.  In addition, The Dominion Post reports that West Virginia’s joint Legislative Rule Making Review Committee gave a “qualified blessing” to the rules proposed by the Department of Environmental Protection (DEP) to govern horizontal well development.  WVDEP developed the proposed rules in 2012 in an effort to implement the Natural Gas Horizontal Well Control Act of 2011.  In the next step of the rulemaking process, the proposed rules will be reviewed by House and Senate committees.

Fate of New York Fracking Rules Remains Uncertain Amidst Demands for Additional Public Comment

The fate of New York’s fracking moratorium remains uncertain.  According to the Huffington Post, if the rules proposed by the New York State Department of Environmental Conservation (DEC) are not finalized by February 27, 2013, the proposal will expire and create an opportunity for another round of public comment.  Whether the new rules will be issued by the deadline remains uncertain.  DEC Commissioner Joe Martens recently testified before state legislators that DEC “[does] not have a timetable” for completing the environmental impact review related to the regulations.  Martens indicated that DEC’s completion of the rules is dependent upon a forthcoming report from the Department of Health.  Martens added that completing the rules could take even longer if the Health report recommends modifications to the proposed rules.  A coalition of New York state lawmakers has demanded that DEC provide an opportunity for the public to comment on the health aspects of the impact review.  This could delay the completion of the rules even further.  Based on a recent telephone poll of approximately 1,200 registered voters in New York, there is an even divide among New Yorkers on whether to lift the 4 ½ year-long moratorium.

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