AAPL Governmental Affairs Weekly Report - 9/23/19

  • 1.  AAPL Governmental Affairs Weekly Report - 9/23/19

    Posted 09-24-2019 10:43
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    Following please find highlights from the AAPL Governmental Affairs Weekly Report for the week of September 23, 2019. The full report is attached to this post.

    STATE - LEGISLATIVE: Public Lands – California. On September 12, the final version of AB 342 was transmitted to Gov.Gavin Newsom (D) who has until October 14 to sign or veto the legislation. The bill, sponsored by Asm. Al Muratsuchi (D), seeks to block federal oil and gas leasing on protected federal lands within California, which includes national parks and wilderness areas in the state. Additionally, “Any new oil or gas projects approved in federally protected areas would be prohibited from having their pipelines or other essential infrastructure cross state lands.” However, the bill does provide an exemption for existing leases for oil pipelines and other infrastructure that cross state lands and “oil and gas companies still would have the right to enter into leases to use privately held land for infrastructure.” If signed into law, the bill would likely be challenged by the Trump administration in federal court as California does not have supremacy over federal lands in its jurisdiction. Read more.

    STATE - LEGISLATIVE: Mineral Rights – Ohio. On September 17, HB 100, originally introduced by Rep. Jack Cera (D) in February 2019, was the subject of a second hearing in the House Energy and Natural Resources Committee. The first hearing was held in June. The bill creates a process for a surface land owner seeking to obtain abandoned mineral interests to institute a legal challenge regarding the validity of an affidavit filed by a mineral interest holder who wants to preserve their mineral interests; creates a process for the mineral interest rights to vest in the surface land owner if a court finds that the affidavit filed by the mineral interest holder is not valid; clarifies that a mineral interest holder cannot make a claim to preserve the mineral interest if that claim is not filed within the 20 years prior to the date that the surface owner notifies the holder that the mineral rights are abandoned; narrows the classes of persons who may make a claim to preserve a mineral interest; and requires a surface land owner to comply with additional notice procedures when notifying a mineral interest holder of the surface owner's
    intent to declare the mineral interest abandoned. Read more.

    INDUSTRY NEWS: U.S. shale production to hit 14.5 million b/d by 2030. On September 12, energy research firm, Rystad Energy, projected that U.S. shale production will peak at 14.5 million b/d by around 2030, even higher than current records. Further, analysts expect Permian Basin production alone to grow to around 7.5 million b/d by 2040 making it the dominant part of domestic oil supply. Read more.

    Russell Cohen
    AAPL Governmental Affairs