As the Trump administration began assuming the reins of the federal government, a number of executive and legislative actions were initiated impacting the oil and gas industry:

  • The White House initiated a “Regulatory Freeze Pending Review” of federal regulations;
  • A presidential memo called on TransCanada to resubmit its application for a Presidential Permit for a border crossing for the Keystone XL Pipeline;
  • A presidential memo called for expediting review and approval of regulatory actions regarding the construction of the Dakota Access Pipeline;
  • An executive order expedited environmental reviews and approvals for “High Priority Infrastructure Projects”; and
  • An executive order was made on “Reducing Regulation and Controlling Regulatory Costs.”

Additionally, Congress has taken steps on its Congressional Review Act authority to overturn the following regulations impacting the oil and gas industry:

  • Disapproval of the Stream Protection Rule;
  • Disapproval of the Securities and Exchange Commission disclosure rule on payments to foreign governments;
  • Disapproval of the venting/flaring rule; and
  • Disapproval of the Bureau of Land Management process for preparing, amending and revising Resource Management Plans.

Other federal actions

Venting and flaring rule challenged: In January a U.S. District Court denied requests from industry groups and western states for preliminary injunction to halt implementation of the venting and flaring rule. Later that month congressional Republicans began invoking authority under the Congressional Review Act to repeal rules finalized during the end of President Obama’s term. The House considered a resolution (H.J. Res. 36) in early February to revoke the rule.

Fracking rule hearing gets court date: Oral arguments will be in heard at the 10th U.S. Circuit Court of Appeals on March 22 in Denver. In 2015 the rule was challenged in court by states, industry and tribes. A U.S. District Court struck the rule down in 2016. That decision was appealed to the 10th Circuit by the government and environmental groups.

State/local actions

Colorado

  • The Colorado Attorney General sent Boulder County commissioners a letter asserting that the city’s moratorium on hydraulic fracturing, currently in place through May 1, is illegal.

Florida

  • State Senator Dana Young (R-Tampa) filed a bill (SB 442) to ban hydraulic fracturing in the state. The proposed legislation will be considered during the state legislative session beginning March 7.

Ohio

  • Governor John Kasich (R) proposed a budget calling for a 6.5% tax on oil production and a 4.45% tax on natural gas and NGL. Kasich previously sought the same rate increases in the 2015 budget.
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