Archives: Natural Gas

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PSE&G Becomes First Public Utility to Secure SAFETY Act Liability Protections from DHS

Public Service Electric and Gas Company (PSE&G), New Jersey’s oldest and largest regulated gas and electric delivery utility, recently became the first utility in the United States to secure liability protections under the Support Anti-Terrorism by Fostering Effective Technologies Act (SAFETY Act) of 2002 for its internal physical security program. The July 9, 2018 decision … Continue Reading

DOE Fast Tracks Small Scale LNG Exports and Provides Assurance on Export Orders

The Department of Energy (DOE) recently acted in two separate orders to clear the path for small volume exports of LNG and allay concerns about the durability of its export authorizations.  In July, 2018, DOE adopted a rule to streamline its standards and process for approving small-scale LNG exports.  In a separate policy statement issued … Continue Reading

European Commission Launches New Antitrust Investigation into LNG Destination Clauses

On June 21, 2018, the European Commission (“Commission”) started a new investigation to determine whether so-called destination clauses in Qatar Petroleum’s liquefied natural gas (“LNG”) supply contracts with European buyers infringe the European Union (“EU”) antitrust rules.… Continue Reading

FERC Reviewing Gas Pipeline Policy

Under the Natural Gas Act (NGA), FERC certificates the construction and operation of pipelines to transport natural gas in interstate commerce if they are “required by the present or future public convenience and necessity.”  For almost two decades, FERC has used a 1999 policy statement’s guidelines to evaluate whether new pipelines meet that statutory standard.  … Continue Reading

Islamic Finance Update on the Dana Gas Case: Sanctity of English law Contract upheld, Notwithstanding Claims of Shari’ah Non-compliance

This post looks at the recent English High Court decision in Dana Gas PJSC v Dana Gas Sukuk Ltd & Ors [2017] EWHC 2928. Participants in the Middle East (and wider) Islamic finance markets held their breath during much of this year.  This was pending consideration by the High Court in England on some core … Continue Reading

FWS to Update Regulations Governing Drilling on National Wildlife Refuges

The United States Fish and Wildlife Service (FWS) recently announced its intent to update regulations governing its management of oil and gas activities on national wildlife refuges.  The proposal responds in part to a March 2015 report by the Inspector General of the Department of the Interior, which called management of oil and gas development … Continue Reading

Risk and Reward in the UKCS: Recent Positive Development

  Our Risk and Reward in the United Kingdom Continental Shelf (“UKCS”) series has reported on the challenging times recently faced by the UKCS oil and gas industry.  The past week has seen positive developments in the form of newly awarded exploration licences and the first modest improvement in the industry’s quarterly outlook since 2013. … Continue Reading

‘Trigger Happy’: Considering the Requirements of Your Price Review Clause

Given the fall in oil prices, many participants in the oil sector have been forced to re-evaluate their investments.[1]  A drop in oil prices not only impacts the oil industry; it can also have a significant effect on gas and LNG prices around the world.  Many long-term gas and LNG sales agreements continue to peg … Continue Reading

California Finalizes New Fracking Regulations

On December 30, 2014, the California Office of Administrative Law approved permanent regulations issued by that state’s Department of Conservation, Division of Oil, Gas and Geothermal Resources (“Division”) governing fracking.  The regulations follow the Division’s final interim regulations (effective January 1, 2014), which we discussed here, and further implement California’s fracking statute (SB 4), which … Continue Reading

FWS Announces ESA Protection for the Gunnison Sage-Grouse

On November 12, 2014, the United States Fish and Wildlife Service (FWS) announced that the Gunnison Sage-Grouse would be listed as a threatened species under the Endangered Species Act (ESA).  Meanwhile, questions remain about how a related species, the Greater Sage-Grouse, will be categorized under ESA when FWS makes a decision on its status in … Continue Reading

UK Parliament Announces Tighter Planning Guidance for Onshore Oil and Gas Applications

In the first blog of this two-part series, we considered the potential impact of the 14th Round on the commercialisation of the shale gas in the UK in light of recent developments in this industry. This second blog post focusses on the additional planning guidance for licence applications in National Parks, Areas of Outstanding Natural … Continue Reading

A Quick Look at the Gazprom/Naftogaz Contract Dispute

On Monday, June 16, 2014, Gazprom and Naftogaz each announced that they were commencing arbitration proceedings under the SCC Rules (seated in Stockholm, Sweden). The arbitration arises under Contract No. KP dated January 19, 2009 (the “Contract”), a 10 year, long-term gas sales agreement between Gazprom and Naftogaz for volumes ranging from 40 to 52 … Continue Reading

Pricing Complexity and Predictable Disputes – A primer on modern long-term gas supply contracts

On Monday, June 16, 2014, Gazprom announced that it commenced arbitration proceedings against Naftogaz under the SCC Rules (seated in Stockholm, Sweden) alleging that Naftogaz has failed to pay US$4.5 billion for gas that Gazprom has already delivered to Naftogaz. Naftogaz also announced that it had commenced a claim under the SCC Rules, seeking the … Continue Reading

“What’s in a Name?: Legal Implications of the EU Recommendation on Shale Gas”

While the European Commission’s Recommendation on Shale Gas of  January 22, 2014 is not legally binding, it may have different legal impacts on EU institutions and agencies as well as public authorities and private parties in the EU Member States.  The attached article published in the Environmental Law Reporter describes four different legal scenarios that could … Continue Reading

New gas-fired and renewable generators stress natural gas infrastructure; more gas storage may be the answer.

Half of the new electricity generation plants added in 2013 are fired by natural gas and almost 30% of new generation is powered by solar and wind energy, according to an April 8 report from the Energy Information Administration.  This combination is likely to mean even more demands on the already-strained natural gas delivery infrastructure. … Continue Reading

An International Approach: Events Shaping the Application of the Natural Gas Act

Three independent, but not wholly unrelated, events occurred over the last few weeks, each arising out of the Natural Gas Act’s application and the growing importance of LNG exports to the United States and the international community. (1) Following the crisis in Ukraine, there were continuing calls from a variety of politicians and pundits to … Continue Reading

White House Releases Strategy to Reduce Methane Emissions

On March 28, 2014, the White House released its “Climate Action Plan – Strategy to Reduce Methane Emissions.”  The plan summarizes the Administration’s strategy to reduce methane emissions from several sources.  The strategy includes proposing new standards, new rules, new voluntary strategies and programs and new regulations.   The plan outlines measures to reduce emissions and … Continue Reading

Upcoming New Legislation to Facilitate Shale Gas Operations in Poland

The Polish government has proposed new draft rules on the prospection, exploration and extraction of hydrocarbons as well as their taxation that aim to facilitate the development of shale gas operations in Poland. The proposed amendments to the Geological and Mining Law would significantly streamline the procedures to grant concessions and also extend concession periods.  … Continue Reading

FERC Acts to Improve Coordination Between the Natural Gas and Electricity Industries

The increasing reliance on natural gas to fuel electricity generators has sparked a need for more coordination between the operators of gas pipelines and electricity grids. Up to now, markets and operations in the two sectors have proceeded independently, but some differences between them have become problematic. Differences are especially problematic in New England, where … Continue Reading

EPA’s Environmental Appeals Board Rejects Attempt to Require Additional Greenhouse Gas Limits in a Natural Gas Power Plant Permit

EPA’s Environmental Appeals Board has rejected the Sierra Club’s attempt to require certain greenhouse gas (GHG) limits in a preconstruction permit for a new natural gas power plant, in one of the first EAB decisions to address this issue.  In re: La Paloma Energy Center, LLC, PSD Appeal No. 13-10 (EAB Mar. 14, 2014).  In … Continue Reading

California Announces Timing/Process for Issuing New Regulations on Appliance Efficiency

On March 19, 2014, the California Energy Commission, the state’s primary energy policy and planning agency, announced that it was initiating a regulatory process leading to the regulation of 15 categories of consumer appliances as to usage of electricity, natural gas, and water.  This comes in part in response to the three-year drought period in … Continue Reading
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