On December 19, 2018, the U.S. Department of Energy issued a policy statement eliminating from any future export authorization orders the requirement that exporters report where LNG was “received for end use.’’ The relief is a nod to market participants who expressed concerns that exporters often have limited visibility into where their natural gas is ultimately consumed. The policy now will only require that exporters report where the natural gas was “actually delivered.” DOE issued an accompanying blanket order, DOE/FE Order No. 4322, to remove the end use provision from existing authorizations.
This week’s enforcement update covers:
- FERC Enforcement Staff presents the 2018 Summer Energy Market and Reliability Assessment;
- CFTC Staff issues report assessing market impacts of LNG;
- CFTC Commissioner Behnam discusses CFTC enforcement program and trends;
- FERC files opposition to TOTAL petition for writ of certiorari in the Supreme Court;
- Second Circuit affirms dismissal of class action against TOTAL for alleged natural gas manipulation; and
- FERC Enforcement settles investigation with PSEG.
Topics discussed this week include:
- Environmental group brings Clean Water Act citizen suit against Shell and Motiva that alleges climate change-related harms.
- District court stays CERCLA unilateral administrative order.
- District court overturns Department of the Interior stay of rule governing royalties for oil, natural gas and coal production on federal and Indian lands.
- Second Circuit upholds New York State’s decision to deny Clean Water Act certification to proposed pipeline.
- C. Circuit holds that FERC should consider power plant emissions in pipeline environmental impact statement.
- Hurricane Harvey affects Gulf Coast energy and chemical resources.
In a 2-1 decision that issued today, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in Sierra Club et. al v. Federal Energy Regulatory Commission (Sierra Club) vacated and remanded a Natural Gas Act (NGA) Section 7 certificate of public convenience and necessity granted by the Federal Energy Regulatory Commission (FERC) to the Southeast Market Pipelines Project (Project) in 2016. The Project comprises three natural gas pipelines currently under construction in Alabama, Georgia, and Florida that, once built, will transport over 1 billion cubic feet of natural gas per day over 500 miles to feed new and existing natural gas-fired electric plants in Florida and to serve the growing natural gas demand of Florida utility customers. (more…)