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Oil and Gas Update

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Gas Producer Sues WVDEP for Declaration that “Flat Rate Statute” Unconstitutionally Impairs Flat Rate Gas Leases

Historically, oil and gas leases have been of two types— those with flat rates and those with production-based royalties. In the “flat rate” leases, the lessees agreed to pay a flat annual fee to lessors for the right to extract oil and gas without regard to whether any mineral was extracted or the amount extracted. In the production-based leases, the lessees agreed to pay a percentage of the…

Sixth Circuit stays NEXUS pipeline construction in Green, Ohio pending review of Ohio EPA’s CWA §401 certification

On November 22, 2017, in one of many ongoing challenges to pipeline construction, a three-judge panel of the United States Court of Appeals for the Sixth Circuit (“Sixth Circuit”), in a 2-1 decision, granted an emergency stay of pipeline construction within the city of Green, Ohio (“Green”) pending a decision on the merits of Green’s petition seeking review of the Clean Water Act (“CWA”) §401…

Sierra Club Links Up with Libertarian Landowners in Continued Opposition to Gas Development

Opponents of natural gas development do not have the resources to challenge individual well permits in the Marcellus and related shale gas basins. Instead, they understand that the future of the industry depends on assembling the rights to draw gas from fractionated ownership and on the ability to attract higher prices by building transmission pipelines to carry the gas to new markets.  So, the…

OIL AND GAS INDUSTRY THINKING LONG TERM; SEEKS 50-YEAR “TAKE” PERMIT UNDER ENDANGERED SPECIES ACT

The oil and gas industry is working with the U.S. Fish & Wildlife Service (“USFWS”) to obtain an “incidental take” permit to cover potential effects of industry activities on five bat species located in Ohio, Pennsylvania and West Virginia. Section 9 of the Endangered Species Act prohibits unpermitted “takes” of protected species, but authorizes the USFWS to issue permits for “takes” incidental…

Sierra Club Expands War on Gas in Challenge to Air Permit for Gas Plant: Claims Emissions from Gas Supply Pipeline and Associated Compression Should be Included in Analyses

The Sierra Club and its acolytes have openly derided those who advocate using gas as a “bridge fuel.” Now, the group seeks to slow the construction of both a new gas-fired power plant in Virginia and the Atlantic Coast Pipeline slated to provide fuel to the Plant.  The Appalachian Mountain Advocates (“Appalmad”), who serve frequently as counsel to the Sierra Club, have bragged…

 

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