Power & Pipes

A LawFlash prepared by our energy lawyers discusses the Federal Energy Regulatory Commission’s Notice of Inquiry regarding the certification of new interstate natural gas transportation facilities and the potential addition of environmental justice as an additional area of examination.

It’s been a difficult several days for the oil industry. First, the Biden administration revoked the border-crossing permit for the Keystone XL pipeline on January 20. Another executive order, among other things, directed the secretary of the US Department of the Interior to pause oil and natural gas leases on public lands and offshore waters pending a review of leasing practices. And on January 26, the US Court of Appeals for the DC Circuit affirmed a district court’s decision to vacate an easement vital to the Dakota Access Pipeline (DAPL or the pipeline) that had been granted by the Army Corps of Engineers (Corps). But the court, however, reversed the lower court’s order that required the pipeline to cease operations. Accordingly, the pipeline may continue to operate while the Corps decides what to do about Dakota Access’s trespass. Separately, however, local Native American tribes have sought an injunction before the district court, the briefing for which ended earlier this month.

The US Department of Energy (DOE or Department) finalized a rulemaking proceeding last week that revises its National Environmental Policy Act (NEPA) implementing procedures pertaining to certain authorizations under the Natural Gas Act (NGA). This update limits DOE’s review of environmental impacts associated with natural gas exports to certain countries; DOE’s review will only consider the environmental effects of marine transportation, which DOE has also determined as not creating a significant environmental impact.