Recently, when there was talk about Houston-based ATP Oil and Gas’ (ATP) legal problems, it was inevitably about its bankruptcy and its effort to bring the overriding royalty interests it had conveyed back into the bankrupt estate as debt instruments. That should change now that the Department of Justice (DOJ), acting jointly on behalf of
Liskow & Lewis
Sierra Club Asks Court to Ban Use of Legacy DOT-111 Tank Cars
As if crude producers and midstream transportation companies don’t already have enough problems trying to get crude oil from production fields to refineries thanks to inadequate pipeline infrastructure, tank car supply, rail safety concerns, and new regulations, they now also have to address a new, potentially market-busting lawsuit. In September, the Sierra Club, one of…
Trans Energy Settlement Shows Need for E&P Wetlands Compliance Strategy
On September 2, 2014, the Department of Justice announced a settlement in United States v. Trans Energy, Inc., No. 14-117 (N.D.W.Va.), requiring the oil and gas company to pay $3 million in civil penalties and to spend approximately $13 million to restore 15 sites in West Virginia that had been developed without dredge…
BSEE’s Investigations and Review Unit Changes the Playing Field on the OCS
The Bureau of Safety and Environmental Enforcement’s (BSEE’s) Investigations and Review Unit (IRU) substantially enhances the civil and criminal enforcement of the Outer Continental Shelf Lands Act (OCSLA) and the regulations issued thereunder.
Background
In 2010, in the wake of the Deepwater Horizon oil spill, the Department of Interior renamed the Minerals Management Service (MMS)…
Proposed Railroad Rules May Impact Crude Oil Producers: Proposed DOT/PHMSA Oil Tank Car Rules
Prompted by concerns heightened by several recent high profile train derailments and accidents, coupled with the boom in the number of oil-carrying trains, the Obama administration, through the Pipeline and Hazardous Materials Safety Administration (PHMSA), has proposed two new sets of rules aimed at addressing the perceived risks posed by the increase in rail transportation…
A Key Decision: Supreme Court of Texas Sides with Liskow Amicus Brief on Behalf of TXOGA
On June 20, 2014, the Supreme Court of Texas ruled in Key Operating & Equipment, Inc. v. Hegar (PDF) that a mineral lessee in a pooled oil and gas unit has the right to use the entire surface of the pooled acreage, regardless of the location of the producing well or whether actual production from…
Air Permitting Update: D.C. Circuit Decision Helps E&P Facilities
On May 30, 2014, in an unanimous decision in National Environmental Development Association’s Clean Air Project v. U.S. Environmental Protection Agency, the United States Court of Appeals for the District of Columbia Circuit vacated EPA’s policy limiting the reach of the Sixth Circuit’s decision in Summit Petroleum Corp. v. EPA.
In Summit,…
EPA and Army Corps of Engineers Propose Significant Revisions to Definition of “Waters of the United States”
On March 25, 2014, the Environmental Protection Agency (“EPA”) and the Army Corps of Engineers (“Corps”) jointly released a proposed rule purporting to clarify the scope of the “waters of the United States” protected under the Clean Water Act. The agencies claim that, as a result of the Supreme Court’s decision in Rapanos v. United …
TCEQ Updates Penalty Policy Document to Incorporate Legislative Enactments and Current Enforcement Practices
On January 6, 2014, TCEQ requested comments on a proposal to revise the agency’s penalty policy. See Revised Penalty Policy (PDF). According to TCEQ, the proposed revision to its Policy simply incorporates recent statutory changes and documents existing enforcement practices.
Recent Statutory Changes
House Bill 2615 (PDF) (83rd Legislature, 2013) significantly increased the administrative…
New Texas Law Encourages Recycling of Wastewater From Oil and Gas Operations by Clarifying Ownership and Limiting Tort Liability
House Bill 2767, which took effect on September 1, 2013, was enacted to encourage recycling of the wastewater produced in hydraulic fracturing (or “fracking”) and other oil and gas operations.
A hotly contested issue is the consumption of water by fracking activities. Fracking involves the injection of several millions of gallons of…