Arbo

Catch up quick on the #EnergyTransfer / LEG #pipeline gathering determination dispute and why we haven't seen a decision from #FERC yet.

The unique circumstances of Altamira’s #LNG facility allow for some political sentiment testing while complying with the Natural Gas Act’s mandate that #DOE “ensure expeditious completion of” these authorizations, as highlighted by the court, and maintaining the defensibility of the “pause” position. 

Tom's take on what the recent Altamira #LNG #DOE authorization means for "The Pause."

Thomas L. Sharp on the NEPA review specifics behind the DC Circuit's recent remand of Commonwealth LNG's #FERC Certificate.

Our liquids tariff team has been working 'round the clock to keep the rate database current, amid a messy #FERC situation after the resolution of a proceeding implicating previous years' annual #oil indexing. Because the regs for index filings says carriers need to compute their ceiling levels based on "the most recent index published by the Commission..." and the Commission hasn't yet updated it's published index, over 40 pipelines' recent filings to increase their rates were rejected. 😵

A coalition of 20 states has recently challenged the new NEPA rules, while an opposing coalition of twenty #EnvironmentalJustice, labor, and conservation groups has intervened to defend them alongside CEQ. Many of the arguments raised by the 20 states were also raised in the notice and comment period during the rule’s promulgation, and as a result, addressed in the rule itself. These responses provide a preview of how the litigation may unfold. The 20 states argue broadly that these provisions exceed NEPA's statutory authority, as Environmental Justice itself is not mentioned in the law. In the rule, CEQ points to NEPA’s goals of ensuring “each person should enjoy a healthful environment” as justification for its inclusion, and the long-standing agency practice of analyzing EJ in NEPA reviews as demonstrated by its own previously issued EJ guidance, caselaw, and executive orders. The states also contend that the new approach to alternatives analysis including the “environmentally preferable alternative” creates an “impossible-to-meet standard” leading to regulatory uncertainty and litigation. In addressing similar arguments in the rule, CEQ again pointed to NEPA's statutory objectives, text, and policy statements, which include analyzing a reasonable range of alternatives. Regarding categorical exclusions and mitigation, the states argue the new rules improperly restrict their use and create new obligations. But in the rule, CEQ maintains that agencies retain discretion in these areas. For FERC, the balance between addressing EJ concerns and maintaining efficient project development and approval processes will likely remain a key point of tension and debate. The recent Rio Grande litigation underscores the challenges in determining appropriate EJ analysis scope and the potential for legal challenges. We'll be watching for #FERC's adjustments to its EJ analysis in this case and developments in the broader #NEPA litigation.

“It’s worth noting that judges (Bradley) Garcia and (Michelle) Childs were on the panel for both the REA and Rio LNG decisions, and that Chief Judge (Sri) Srinivasan was also on the Rio LNG panel, though he did not write the opinion,” Thomas L. Sharp said. “This shows some internal visibility and alignment within the D.C. Circuit on the substance of the decisions, particularly because rehearing requests are likely, and they are rarely granted.” https://lnkd.in/d9Ewm2ec

Given a recent slew of unfavorable pipeline and LNG decisions from the DC Circuit, we wanted to know if a trend could be observed — are Dem-appointed judges pushing the envelope on regulatory interpretation? Plus, how will recent NEPA changes reshape the way natural gas projects are evaluated from an Environmental Justice perspective? That and more in our latest newsletter.

A slew of developing LNG facilities have had their FERC authorizations removed or sent back for review, questions remain on what could be next for the industry. Former FERC attorney Thomas L. Sharp at Arbo gave me some insights. https://bit.ly/3T3hNrv

The intricate web of proposed intrastate #pipelines and #LNG projects continue to evolve, with significant implications for gas market pricing — in a dynamic landscape shaped by limited #regulatory oversight, ongoing litigation, and project milestones. A few key project updates: • ADCC Pipeline: Entered service, marking a major development in the intrastate sector. • Matterhorn Project: Secured easements for the majority, if not all, of its route. • Energy Transfer Litigation: Many pipeline crossing disputes resolved at the state level in Louisiana. • Louisiana Energy Gateway: Moving forward with construction while awaiting FERC's decision on the gathering determination, which will carry potential  implications industry-wide. We help our customers anticipate challenges, identify opportunities, and make informed decisions in an increasingly complex energy market by synthesizing complex data from regulatory, permitting, and legal realms — to provide more accurate and detailed analysis of project schedules for individual LNG facilities and pipelines.