American Oil and Gas Reporter - July 2021 - 17

Biden's EO essentially directs the U.S.
Department of Interior to stop
performing its oil and gas lease sale
obligations under OCSLA and MLA.
" The plaintiff states' claims are
substantial, " Doughty's ruling assesses.
" Millions and possibly billions of
dollars are at stake. Local government
funding, jobs for plaintiff state workers
and funds for the restoration of
Louisiana's coastline are at stake.
Plaintiff states have a reliance interest in
the proceeds derived from offshore and
on land oil and gas lease sales.
" Additionally, the public interest is
served when the law is followed, " the
judge continues. " The public will be
served if government defendants are
enjoined from taking actions contrary
to law. "
EID notes that Western Energy
Alliance President Kathleen Sgamma is
among those lauding the injunction.
" The bottom line is that the president
cannot simply ignore the plain language
of the law, " she is quoted. " This is an
appropriate check on a president
exceeding his authority, and we are glad
there are reasonable judges in the
federal court system that follow the law
and not just their policy preferences,
which had happened all too often in
recent years. "
But Sgamma cautions in press
accounts that Biden has other options to
achieve similar ends. " We lived through
the Obama administration, and it did a
lot of things to constrain leasing and
other activity on federal lands, " Sgamma
is quoted. " And frankly, (the Biden
administration) has the power to do so. "
Government lawyers already have
signaled intent to frustrate federal
leasing in other ways, according to the
assessment of former BLM Deputy
Director for Policy and Programs
William Perry Pendley. " The
government says 'Even if you tell us to
keep doing sales, we have the
discretion to implement the
postponement with another rationale,
we will find another way not to obey
the law.' It's pretty arrogant, " Pendley
is quoted in media reports.
Even so, Louisiana Oil & Gas
Association President Mike Moncla
says industry advocates are still happy
to notch the victory. " Louisiana's
economy has suffered under this
pandemic, and the energy sector has
gotten the brunt of it, " he reflects. " If
President Biden wants to truly enact
policies that get this nation back on
track, he should join the industry's
efforts in modernizing clean energy
practices while maintaining a
prosperous economy. Even though the
fight against the Biden administration's
climate agenda is far from over, this is a
glimmer of hope for an industry that has
suffered under this White House. " ❒
Federal Court Vacates
FERC Certificate On
Operating Pipeline
WASHINGTON-With a ruling that
accuses the Federal Energy Regulatory
Commission of ignoring its own protocol,
the U.S. Court of Appeals for the District
of Columbia Circuit has nullified an
operating pipeline's certification and
perhaps signaled that commission
approval may require applicants to clear a
higher bar going forward.
Owned by Spire STL, the 65-mile,
400 million cubic feet a day natural
gas pipeline in question connects
western Illinois to eastern Missouri
and was challenged in a suit led by the
Environmental Defense Fund. The
June 22 decision notes that both sides
of the lawsuit agree that natural gas
demand in the area appears likely to
remain flat for the foreseeable future,
and points out that FERC has not
determined that a new pipeline will
cut consumer costs. Therefore, the
court holds, FERC was wrong to rely
on a single precedent agreement
between affiliates to justify market
need and the commission's
certification was not reasoned and
principled.
Instead, the ruling argues, " FERC's
ostrich-like approach flies in the face of
the guidelines set forth in the certificate
policy statement. The challenges raised
by EDF and others were more than
enough to require the commission to
'look behind' the precedent agreement
in determining whether there was
market need. If it was not necessary for
the commission to do so under these
circumstances, it is hard to imagine a
set of facts for which it would ever be
required. Because the commission
declined to engage with EDF's
arguments and the underlying evidence
regarding self-dealing, its decisionmaking
was arbitrary and capricious. "
Press accounts note that analysts at
ClearView Energy Partners say the
ruling may stop the pipeline from
operating. " Spire STL's shutdown
currently looks to be more a question of
when than if, " the firm is quoted.
Media reports also cite numerous
anti-development groups as hailing the
decision's implications. Natural
Resources Defense Council attorney
Gillian Giannetti is among the
celebrants. " I don't think it can be
overstated how important this decision
is, " she is quoted. " This is a historic
opinion that could change the landscape
of how FERC assesses pipeline need. "
During a ceremony at its 74th
Annual Membership Meeting,
the Ohio Oil and Gas Association
presented its 2020 and
2021 Oilfield Patriot Awards
to Don (left) and Gene Huck,
brothers from Vincent, Oh.
OOGA notes the award recognizes
individuals who have
made significant contributions
to protect, promote and advance
the common interests
of Ohio's crude oil and natural
gas industry and says the
brothers were honored for
longtime advocacy, which has
included working with both
state and federal legislators
and representing the interests
of Ohio's oil and gas producers
for more than two decades.
Don Huck received the 2020
Oilfield Patriot Award-which
was not bestowed in 2020 because
of the pandemic-in part
because of his efforts to resolve
Ohio orphan well issues
by compiling large volumes
of data, such as detailed maps,
to help the industry and regulators better understand the situation. OOGA says it
presented the 2021 Oilfield Patriot Award to Gene Huck in part because he helped
shepherd oil and gas rulemaking at both the statehouse and with the Ohio Department
of Natural Resources' Division of Oil and Gas Resources.
JULY 2021 17
American Oil and Gas Reporter - July 2021

Table of Contents for the Digital Edition of American Oil and Gas Reporter - July 2021
