U.S. EPA Issues Draft Final Oil and Gas Methane Rule

The U.S. Environmental Protection Agency (EPA) released a draft of its final oil and gas methane rule on December 2, 2023. It may be some time before the final rule is officially published in the Federal Register, starting the clock on the rule’s compliance obligations. Interested parties will need that extra time to fully digest the 1,690-page draft final rule, which addresses methane emissions from new (in subpart OOOOb) and existing sources (in subpart OOOOc). Here are some of the rule’s key aspects to consider. (more…)

U.S. Fifth Circuit Reverses EPA’s Denial of Fuel Program Hardship Exemption for Refineries

In Calumet Shreveport Refining LLC v. EPA, Case No. 22-60266 (5th Cir. Nov. 22, 2023), the U.S. Court of Appeals for the Fifth Circuit struck down Environmental Protection Agency (EPA) denials of six small refineries’ petitions for hardship relief under the Clean Air Act Renewable Fuel Standard (RFS) program, holding that EPA used an “impermissibly retroactive” standard to deny the refineries’ petitions in violation of the Administrative Procedure Act. This ruling could serve as a basis for other refineries to challenge EPA’s retroactive denial of their hardship petitions — and provides support for similar petitions pending before the U.S. Court of Appeals for the D.C. Circuit.

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U.S. District Court Enjoins Biden Administration’s Nationwide Oil and Gas Leasing “Pause” Following Fifth Circuit’s Remand

On August 18, 2022, the federal district court for the Western District of Louisiana (the District Court) enjoined the nationwide pause of oil and gas leasing by the Biden administration (the Government). The District Court issued a permanent injunction just one day after the U.S. Court of Appeals for the Fifth Circuit (the Fifth Circuit) vacated and remanded the District Court’s order by which the District Court had previously issued a preliminary injunction enjoining the pause.

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U.S. Department of the Interior Releases Report on Federal Oil and Gas Leases

On November 26, 2021, the U.S. Department of the Interior (DOI) issued a long-anticipated report on federal oil and gas leases. The report focuses on the fiscal terms, leasing process, and remediation requirements of federal oil and gas leases. Notably, however, it does not discuss the possibility of banning new leases. (more…)

Congress Rescinds Trump-Era Methane “Policy Rule”

On June 25, 2021, the U.S. House of Representatives voted to rescind a Trump-era methane rule using its Congressional Review Act (CRA) authority, which includes special procedures that allow Congress and the President to rescind certain rules promulgated during a prior administration, within defined time limits. The Senate passed the CRA resolution disapproving the rule on April 28, 2021. The measure garnered bipartisan support in both chambers. Congress presented the resolution to President Biden, who signed it on June 30, 2021.

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Congress Moves to Repeal First Trump-Era Rule

Yesterday, the U.S. Congress started a process that could repeal its first Trump-era regulation pursuant to the Congressional Review Act (CRA). Enacted in 1996, the CRA provides Congress an important oversight tool over federal agencies to rescind certain rules. Majority members in both the House of Representatives and the Senate introduced resolutions disapproving the Environmental Protection Agency’s September 2020 final rule on policy amendments to new source performance standards for the oil and natural gas sector. The 2020 rule, which amended 2012 and 2016 standards, rescinded methane-specific emissions limits and removed two segments (natural gas transmission and storage) that were subject to the prior standards. While EPA was directed by President Biden’s Executive Order 13990 to review the 2020 rule and propose a new rule by September 2021, members of Congress are seeking to accelerate this effort by using the CRA.

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