With the Congressional Review Act deadline having passed in May, Congress’ ability to overturn Obama-era regulations through simple majorities has come to a close. Congress remains focused on regulatory reform of a more comprehensive nature, though prospects for passage are less certain. The administration continues to take executive actions to remove burdens on energy projects and is organizing interagency working groups to pursue regulatory reform and efficiency initiatives.

Federal actions

Trump administration reassesses oil and gas production in Alaska: Interior Secretary Ryan Zinke signed an order May 31 reversing the Obama administration’s drilling restrictions in the National Petroleum Reserve-Alaska. Secretary Zinke also ordered officials to update energy resource assessments for areas within the Arctic National Wildlife Refuge.

U.S. Environmental Protection Agency (EPA) methane standards under review: The court agreed to American Petroleum Institute et al. v. EPA et al. and several consolidated lawsuits to provide the EPA more time to review the rules updating methane emission standards for the New Source Performance Standards. The EPA must submit status updates to the court every 60 days. The EPA issued a 90-stay on the rules May 31.

U.S. Senate fails to repeal Venting and Flaring Rule: The Senate vote on HJ Res. 36, calling for congressional disapproval of the Waste Prevention, Production Subject to Royalties and Resource Conservation Rule, was 49-51. Following the vote, the Department of Interior announced it will “suspend, revise or rescind” the rule.

State/local actions

California

■ The Department of Conservation has proposed new regulations for underground natural gas storage facilities. The regulations were proposed following a blowout in Los Angeles and are intended to prevent leaks by setting standards for well construction, testing and inspections. The comment period closed July 13.

Colorado

■ Gov. John Hickenlooper’s administration announced it will not ask the Colorado Oil and Gas Conservation Commission (COGCC) to reconsider its decision to appeal a court ruling on Martinez v. COGCC, which stated the commission must ensure public health is protected as a precondition to permitting drilling.

Ohio

■ The state’s budget bill, currently making its way through the legislature, includes a provision for unitization, which would allow companies to drill in an area if a majority of landowners approve. The bill exempts state parks and nature preserves from unitization.

Texas

■ Gov. Greg Abbott signed a bill reauthorizing the Railroad Commission to operate another 12 years.

West Virginia

■ In a 4-1 decision the state’s Supreme Court ruled natural gas companies may take post-production expenses from royalty payments. In its judgment the court concluded that the intent of the state’s code permits the deduction “of reasonable post-production expenses actually incurred” by the company leasing the mineral rights.

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