FERC Declines to Change “Gas Day” Start Time; Adopts Other Proposed Natural Gas Scheduling and Contracting Changes

by: William Rice

On April 16, 2015, FERC issued a final rulemaking order in which it declined to adopt the controversial proposed change in the “Gas Day” start time, but adopted ...

Read moreFERC Declines to Change “Gas Day” Start Time; Adopts Other Proposed Natural Gas Scheduling and Contracting Changes

by: Kelly Malone, Kevin Futch and Ji Nin Loh

While projects to export hydropower production may provide an attractive option to some countries, they also bring added risk when compared with domestic projects. These risks need careful consideration from all of the project stakeholders, including governments and utilities, to ensure project development and operation can proceed as planned.Read more

by: David Strickland and Michael Yates

Owners and developers typically seek to minimize up-front costs during the early development of large-cap construction projects. Early attention to key development and construction issues, however, will likely pay rich dividends as these projects progress through completion. Here's how. Read more

by: Jeremiah Anderson

Resolving a circuit split, the Texas Supreme Court held that trial courts have discretion whether to dismiss a lawsuit against a licensed professional with or without prejudice when a plaintiff fails to file a Certificate of Merit contemporaneously with its original petition.Read more

by: Andrew Stakelum

In ruling that the Texas Railroad Commission possessed neither exclusive nor primary jurisdiction over landowner oilfield contamination claims, the Texas Supreme Court removed a significant obstacle to obtaining money damages in courts. Read more

by: Nina Howell

In March 2017 the UK Government published a Discussion Paper highlighting the fiscal issues preventing the transfer of late-life oil and gas assets on the UKCS, and soliciting feedback from industry stakeholders. The Discussion Paper is part of the UK Government’s strategy to maximise economic recovery from older fields in the UK North Sea. Tags/Keywords – these are topical buzz- or key-words that correspond with article post (separate tags with Read more

by: Jeffery Malonson and Denis Fallon

The MLP is a tax efficient structure through which to finance consolidation of mineral and royalty interests. This article highlights structural considerations for private equity-backed mineral and royalty interest companies evaluating the MLP as a vehicle to finance long-term growth.Read more

by: Benjamin Pollock and Craig Ledet

When a claim threatens a major construction project, the contract’s dispute resolution provisions do not always need to read as step-by-step instructions. Prudent parties will study the contract’s requirements but also consider options that might more effectively address the particular dispute and circumstances.Read more

by: Denis Fallon, Kathryn Furman, Jeffery Malonson and Thomas Spulak

Attracting more than 100 attendees from all over the country, King & Spalding’s second Energy Forum for 2017 held at The Houstonian Hotel in Houston, addressed energy capital markets from the perspective of both private equity and public offerings.Read more

by: King & Spalding

Gas is a key source of energy supply to Europe, and plays a fundamental role in Europe’s energy supply mix. Europe is a net importer of gas, which enters Europe in one of two ways: as natural gas which is transported via pipeline, or as liquefied natural gas (LNG) which is regasified in an LNG import (or regasification) terminal. This report provides an overview of the large-scale LNG import terminals in Europe today – existing, under construction and planned – and the services provided at Europe’s existing LNG import terminals.Read more

by: Merrick White, Sylvia Taslim and Zoe Bromage

The Indonesian upstream sector continues to undergo significant legal and regulatory change. This article examines five of the most recent developments in the Indonesian upstream sector that affect Indonesian Production Sharing Contracts and their participating interest holders.Read more

by: Carol Wood and Kathryn Marietta

Attracting more than 130 attendees from all over the country, King & Spalding’s first Energy Forum for 2017 held at the Houstonian Hotel in Houston tackled one of the most important issues facing the industry: Decommissioning and abandonment of oil and gas assets in upstream operations.Read more

by: Leroy Levy and Faris Al-Louzi

Much of the PPP debate in Saudi Arabia has focused on the importance of shifting the public sector expenditure burden to the private sector. Wherever this has been the sole focus of a PPP programme, the responsible government has struggled to achieve value for money. If public expenditure is the only concern, it is certainly possible to pass the responsibility to the private sector, but at what long term cost? The UK government’s PFI programme of the 1990s placed insufficient emphasis on value for money. This ultimately resulted in the termination of the programme. In other jurisdictions, ill-conceived projects resulted in the public sector desperately seeking to restructure deals in an attempt to secure value for money.Read more

by: Lynn Kerr McKay and Rachel Tennis

On December 1, 2016, EPA signed a proposed rule setting forth financial responsibility requirements for the hardrock mining industry under Section 108(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). The energy industry, among others, will also find this proposed rule of interest because, on the same day, EPA announced its intention to move forward with the regulatory process for three other classes of facilities: chemical manufacturing, petroleum and coal products manufacturing, and electric power generation, transmission, and distribution. Read more

by: S. Shawn Stephens

A Texas court of appeals held that an energy company did not waive the attorney/client privilege through the offensive use doctrine when it filed a lawsuit against the purchasers of properties for their failures to provide the company with . . . Read more

by: Rachel Tennis, Lynn Kerr McKay, Stephen McCullers and James Vines

Under a D.C. Circuit court order, EPA must propose new financial assurance requirements for the hard-rock mining industry—and identify industries next up for regulation—by December 1, 2016. There are a number of key issues that industry should consider when reviewing EPA’s forthcoming proposal.Read more

by: Benjamin Pollock and Jeremiah Anderson

Disputes often arise during the course of a construction project. The proper handling of these “in project” disputes is critical to advancing the project towards completion, preserving rights, and resolving these disputes.Read more

by: Neil Levy, David Tewksbury, Bruce Richardson and Kelsey Desloover

Two federal district courts hold that entities targeted by FERC enforcement actions who seek de novo review under the Federal Power Act are entitled to procedural due process rights of an ordinary civil action governed by the Federal Rules of Civil Procedure.Read more

by: Jennifer Josefson, Maya Melnikas, Alexandra Rotar, Christine Savage and Jeffrey Telep

U.S. led sanctions continue to pose an issue for companies looking to invest in Russia. This article explores the extension of sanctions and their potential impacts. Read more

by: Ilan Kotas and William Charnley

Parties routinely agree for the application of English law in energy related contracts. English common law remains unchanged after the UK Brexit vote and a reliable option for parties to resolve disputes.Read more

by: Edward Ripley

The rejection of midstream contracts in energy bankruptcy cases continues to be a significant issue. This article explores how parties have most recently litigated the issue in different matters.Read more

by: Tim Burbury

District energy projects are on the rise across the world. This article explores ten best practices related to the tendering of these projects. Read more

by: Rupert Lewi

The decline in commodity prices has resulted in many distressed resource and energy companies selling assets. Purchasers should be mindful of the unique risks in acquiring assets from these distressed sellers and take appropriate actions to mitigate these risks.Read more

by: Tim Burbury, Nabil Issa and Usman Ahmad

Islamic financing for renewable energy projects is expected to grow in the Middle East and North Africa regions. This article discusses certain key aspects of Islamic financing and how they may relate to the financing of large renewable energy projects.Read more

by: Stephen McCullers

The Bureau of Ocean Energy Management (BOEM) recently announced significant changes in how it determines the amount of financial assurance required to secure offshore decommissioning obligations.Read more

by: Tim Burbury and Timothy Smith

The resurgence of private financing for major infrastructure projects, including public private partnerships, in Saudi Arabia and the rest of the Gulf Cooperation Council, means it is now more crucial than ever for governments and procuring authorities to ensure their tendering processes are structured properly. We provide our Top 10 tips for tendering major infrastructure projects.Read more

by: Cynthia AM Stroman

The Pipeline and Hazardous Material Safety Administration (PHMSA) recently issued a proposed rule to expand oil spill response plan (OSRP) requirements for railroads transporting oil. Although stakeholders may have already provided input on an advanced notice of proposed rulemaking issued by PHMSA in 2014, the new proposal offers a more targeted, and potentially more effective, opportunity to address important open issues – including protection of security sensitive real-time transportation information, response times, and response resource capacity.Read more

by: Nina Howell and Jessica Trevellick

The English Courts recently confirmed the meaning of the phrase “commencement of drilling” in an oil and gas asset transaction to mean the penetration of the seabed with the drill, and not other preparatory activities. Read more

by: Philip Weems

LNG disputes are on the rise across the globe due to many factors. These disputes involve many types of parties, including buyers, sellers, project sponsors, customers, and governments. This article explores the nature of disputes that are becoming more frequent in the LNG industry.Read more

by: Michael Andrews

The Senate and the House have each passed comprehensive energy bills, which are aligned in many ways. Congress will now begin the task of reaching a compromise between the two bills. Read more

by: Neil Levy, David Tewksbury, Bruce Richardson and Stephanie Lim

FERC issued a notice of proposed rulemaking addressing the collection of certain data from sellers making sales at market-based rates and entities trading virtual products or holding financial transmission rights. The NOPR also proposes changes to FERC’s requirements with respect to other information submitted for market-based rate purposes. Read more

by: Rory Connor and Kenneth Culotta

Project financing is a challenge for nuclear projects. This article explores issues of construction risk, debt repayment from future revenues, and how small module reactors may help alleviate some of these issues. Read more

by: Cynthia AM Stroman and James Bowe

On June 22, 2016, the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2016 (PIPES Act) was signed into law. The new law reauthorizes the Pipeline and Hazardous Materials Safety Administration (PHMSA) for four years, but more importantly, it identifies new priorities for the agency, grants more extensive authority to act quickly to address imminent hazards, mandates increased stakeholder engagement, and requires more frequent reporting to facilitate Congressional oversight.Read more

by: Cynthia AM Stroman

On June 22, 2016, President Obama signed into law the Frank R. Lautenberg Chemical Safety for the 21st Century Act (the Act). Passed with significant bipartisan support, the Act is the first major update to a federal environmental statute in more than 20 years and the first update ever for the Toxic Substances Control Act (TSCA) of 1976. For many new or revised provisions, the Act establishes a timeline for the U.S. Environmental Protection Agency (EPA) to conduct rulemaking or take other action, but certain provisions took effect immediately. The revised requirements for confidential business information (CBI) claims are one such provision, with immediate implications for companies in the energy sector now preparing their reports under the 2016 Chemical Data Reporting (CDR) rule.Read more

by: Edward Ripley

The Sabine Bankruptcy Court’s decisions rejecting the gas gathering agreements as executory contracts and determining that certain agreements and commitments are not covenants that run with the land or equitable servitudes continue to affect E&P bankruptcies.Read more

by: Philip Weems and Nina Howell

Special consideration must be given to Unitization and Unit Operating Agreements where the gas to be produced from the unitized area will be liquefied and exported as LNG, especially as it may relate to issues of scope, redetermination, adjustments, voting threshold rights, default and withdrawal.Read more

by: Jules Quinn

The UK electorate has now voted in favour of the UK leaving the European Union.  The impact on the energy market may be significant given the economic uncertainty and impact on the regulatory environment. ... Read more

by: Tim Burbury and Timothy Smith

Public private partnerships may offer the solution for the Gulf Cooperation Council region’s challenges in financing and constructing new waste to energy projects.Read more

by: Mehdi Haroun and Nora Djeraba

Morocco is turning to LNG as it looks to further diversify its energy mix. This article explores the origin of Morocco’s national development plan for LNG in 2014, the main steps and intended schedule of this plan, and potential challenges.Read more

by: Philip Weems

Overview of the history and potential impact of North Africa and Sub-Saharan Africa in LNG export and import projects, delivered at the King and Spalding Africa Oil and Gas Conference in Houston, Texas Read more

by: Philip Weems

Philip R. Weems February 9, 2016Read more

by: Monica Hwang and Philip Weems

This article was published by Oil & Gas Journal in June 6, 2016.Read more

by: Philip Weems

Energy partner Philip Weems discussed the future of Global Gas at a recent client event held at our Moscow office on June 8, 2016.Read more

by: Benjamin Pollock and William Burns

Construction claims benefit from an early and thorough evaluation. This article explores key steps in investigating and assessing a claim, including assembling the proper team, preparing the written record, and determining whether to pursue a claim.Read more

by: Alex Blomfield and Jessica Trevellick

The recent English decision in J Murphy & Sons v Beckton Energy Ltd provides a cautionary tale of the potential unintended consequences of amending FIDIC provisions in a construction contract. This casenote explores the law of liquidated damages in construction disputes under English law.Read more

by: James Bowe and William Rice

FERC recently granted a company a two-year extension of time to construct a previously authorized underground natural gas storage expansion project. In doing so FERC signals that it is inclined to entertain opposition to the construction of natural gas infrastructure which continues to be expressed long after FERC has made its environmental determinations and issued an order authorizing project construction. Read more

by: Philip Weems and Nina Howell

Cross-border unitization and unit operating agreements present unique challenges not ordinarily found in similar agreements pertaining to fields wholly within a single government’s jurisdiction. This article identifies some of these challenges in the context of the AIPN Model Unit Agreement.Read more

by: Cynthia AM Stroman

EPA’s recently issued final rule on methane emissions from the oil and gas industry demonstrates EPA’s preference for newer technologies over more traditional emissions control methods.Read more

by: Leroy Levy

Saudi Arabia’s Vision 2030 represents the Kingdom’s vision for life without crude oil. This article explores key details of Vision 2030 and potential challenges for its implementation.Read more

by: Michael Andrews, James Bowe and Lauren Donoghue

House and Senate leaders are expected to conference and attempt to reach to reach a compromise on their respective energy bills. This could result in the first comprehensive energy bill in nine years, and one that includes key LNG provisions.Read more

by: Andrew Stakelum, Anisha Sud, Carol Wood and Tracie Renfroe

Remediation standards in domestic and international oilfield disputes are often hotly disputed issues. This article previously published in Bloomberg Bureau of National Affairs addresses the significance of remediation standards and how various jurisdictions and arbitration tribunals have considered the issue.Read more

by: Leroy Levy

Considering the complexity involved in developing a national PPP program, it is generally accepted that governments do not typically have the internal skill sets required to plan, implement and regulate such programs. The required skills include developing public policy, identifying appropriate projects, commercial and financial structuring , running the procurement process, negotiating contracts and overseeing the private sector’s implementation of each PPP project. Saudi Arabia’s Vision 2030 has been received with much praise from the international commercial community. However, without a strong capacity building program involving the establishment of strong PPP institutions, a robust regulatory regime, clear PPP procurement procedures and well trained government personnel, implementation will prove to be challenging.Read more

by: Alex Blomfield

Project developers, export credit agencies and other stakeholders in energy and infrastructure projects that benefit from export credit finance will need to be aware of, and factor into their project planning,... Read more

by: Andrew Metcalf and Leroy Levy

Introduction Islamic finance refers to practices used by those who wish to invest and arrange their finances in compliance with Shari’ah, or Islamic, law. Probably the most well-known feature of Islamic... Read more

by: Michael Andrews, James Bowe, Thomas Spulak and Claudia Hrvatin

The Senate recently passed the Energy Policy Modernization Act, a bipartisan, broad based energy bill focusing on all forms of energy production and policies. The LNG industry, in particular, stands to benefit from key provisions in the bill.Read more

by: John Richter, Brandt Leibe and William McClintock

State attorneys general have recently announced investigations into energy companies’ securities disclosures about the risks climate change poses to their businesses. These investigations are a striking reminder of the increasingly aggressive role that state AGs play in the government investigations arena.Read more

by: Robert Garner and Michael Yates

Developers of offshore projects should understand how OSCLA might affect the parties’ choice of law provisions. This article presents a summary of the factors one should consider when determining what choice of law will apply to offshore service contracts as well as the potential commercial impacts of OCLSA jurisdiction.Read more

by: Thaddeus Wilson, Sarah Borders, Mark Wege and Edward Ripley

In a case of first impression, the Sabine Oil & Gas bankruptcy court held that a midstream gathering agreement could be rejected by a debtor as an executory agreement. This article explores the decision and its potential impact on the oil and gas industry. Read more

by: Kate Hill

The International Court of Justice is currently considering a maritime boundary dispute between Somalia and Kenya, which may have important repercussions for offshore oil and gas development in East Africa. Read more

by: Benjamin Pollock and Martha Buttry Daniels

Energy industry professionals should be cognizant of ways to mitigate unforeseen obstacles during major construction projects. Taking early, proactive steps can help avoid costly and unnecessary disputes and put you in the best position to present or defend later claims, as necessary. When a potential dispute arises: understand the contractual landscape, talk to key people, organize important documents, and articulate a favorable position. Read more

by: Leroy Levy

Anticipated Saudi public-private partnership economic reforms will require new innovative deal structures. Past large-scale deals within the Kingdom may provide valuable insight on where best to begin.Read more

by: Jennifer Josefson and Alexandra Rotar

Russia has established new procedures that allow for the transfer of a party’s interests under a long-term capacity supply agreement. This article addresses these procedures and provides insight on the Russian wholesale power and supply markets.Read more

by: Kevin Conway, Thomas Pygall and Trinh Chubbock

This article explores significant oil and gas tax and related breaks contained in the UK government’s Budget 2016 and their potential impact on the oil and gas industry.Read more

by: Nina Howell and Trinh Chubbock

This article focuses on the role of natural gas and LNG in the EU and summarises the European Commission’s proposal on the EU strategy for LNG.Read more

by: Andrew Stakelum

The U.S. Coast Guard recently allowed the use of electronic navigational charts and publications to satisfy its historic “paper” chart requirements. While vessel owners and mariners may welcome this change, careful consideration should be given to the additional requirements imposed on a vessel owner and their associated risks in the event of a marine casualty.Read more

by: Tim Burbury and Usman Ahmad

The IFC recently published a detailed guide to assist in the development of solar power projects in Pakistan. This article provides a summary of the key steps and an overview of other notable items in this report. Read more

by: Leroy Levy

In July 2015, Air Products of the US and ACWA Holding of Saudi Arabia achieved financial close of the largest project financing of an air separation unit (ASU) project anywhere in the world.  The US$2... Read more

by: Brian Pierce

Depressed oil prices may cause states in the Gulf Cooperation Council to adopt public-private Partnerships to fund infrastructure development. This may lead to a number of prospects for both local and international industrial sponsors, and potentially infrastructure funds and other institutional investors, to invest in an asset class for which opportunities in the region have to date been relatively constrained.Read more

by: Kathryn Marietta, Jennifer Josefson and Vera De Brito de Gyarfas

Unlocking value in unconventional resources is even more important in today’s environment of depressed oil prices. Operators and service contractors are reassessing their relationships and fracking methods in an effort to maximize value.Read more

by: Neil Levy, David Tewksbury, Stephanie Lim and Bruce Richardson

FERC has recently issued a Notice of Inquiry seeking comments on possible reforms to its rules and regulations relating to primary frequency response.Read more

by: Yumi Ahn and Alex Blomfield

The Privy Council’s recent judgment in NH International (Caribbean) Limited v National Insurance Property Development Company Limited (Trinidad and Tobago) provides a rare example of a common law court interpreting specific clauses in a FIDIC construction contract and addressing issues of termination and rights to counter-claim or set-off. Read more

by: Mehdi Haroun and Ruxandra Lazar

On 8 January 2016 France enacted a new decree intended to facilitate offshore wind projects. Specifically, the decree addresses the process for legal challenges against authorizations and extends the maximum duration of the concessions.Read more

by: Michael Andrews

Congress is now considering a bipartisan bill authored by bill by Senators Murkowski and Cantwell described as an energy policy modernization act. The legislation broadly addresses energy production and policies concerning wind, solar, hydro, oil and gas and nuclear. Read more

by: Shannon Doyle Barna and Iain MacVay

Sanctions against Iran have been relaxed with the passage of Implementation Day under the previously agreed to Joint Comprehensive Plan of Action. This article explores the effect of Implementation Day on the U.S. and EU. Read more

by: Alex Blomfield, Nora Djeraba and Tolani Oyesanya

The Paris Agreement on climate change potentially has significant implications for Africa. This article explores these implications and particularly as they may relate to the energy sector.Read more

by: Cynthia AM Stroman, Vera De Brito de Gyarfas, Mona Katigbak, William Panlilio, Jennifer Josefson, Alexandra Rotar, Joelle Herschtel and Laura Chambon

The Paris Agreement on climate change will have varying impacts to its nearly 200 signatory countries. This article explores perspectives from regions around the world, including Latin America, Asia, Russia, the Middle East, the European Union, and North America.Read more

by: Timothy Smith

The latest version of the Production Tax Credit for renewable generation became law last month. While this is likely to spur development in the coming year, provisions for future years may not provide the same results.Read more

by: Tim Burbury

In recent years Kuwait and Dubai have replaced and introduced new public private partnership laws directed at the development of essential infrastructure assets and services. This article explores key concepts in these laws, including their similarities and differences.Read more

by: King & Spalding

State Attorneys General Investigations and Enforcement: What to Expect in 2016 In recent years, state Attorneys General (“state AGs”) have significantly increased their investigative and enforcement... Read more

by: Philip Weems and Monica Hwang

LNG is now the most valuable physical “commodity” after crude oil. This article answers the top ten questions facing the LNG industry amid an oversupplied market.Read more

by: King & Spalding

King & Spalding has prepared a report that focuses on LNG import terminals in Europe. The report describes large scale LNG import terminals that are either currently operating, under construction or planned in Belgium, France, Greece, Italy, Lithuania, the Netherlands, Portugal, Spain, Turkey and the United Kingdom. Read more

by: Cynthia AM Stroman, Sephen Orava, Nina Howell, Trinh Chubbock and Benjamin Burnham

The recent Paris Agreement on climate change represents a historic multi-national agreement to reduce greenhouse emissions, establish accountability, and support developing nations. This article explores the Paris Agreement’s potential implications for the energy sector.Read more

by: Grigori Lazarev, Alex Blomfield and Kelly Nash

The UK Supreme Court has recently clarified the English (and Scottish) law on penalties. In refusing to abolish the rule against penalties, the Supreme Court clarified the correct test for determining whether a provision is penal. Read more

by: Michael Andrews

President Obama recently signed into law the omnibus bill to fund the federal government for fiscal year 2016. This bill benefits the energy industry by lifting the export ban on crude oil and extending renewable energy tax credits. Read more

by: Andrew Stakelum

BSEE recently announced a “Pilot Risk-Based Inspection Program” for offshore facilities. Inclusion in this program and being designated an “at risk” or “higher risk” facility could lead to increased operating costs and liabilities. Read more

by: James Bowe and William Rice

FERC’s ANR Storage decision provides the natural gas industry a useful roadmap for future market-based applications, particularly in circumstances where the application might face opposition. Read more

by: Charles Julien

Recent reports of the influence of major oil and gas companies on the European Commission’s position on energy in the Transatlantic Trade and Investment Partnership (“TTIP”) negotiations —... Read more

by: S. Shawn Stephens

The traditional “good cause” standard used to assess run-of-the-mill discovery disputes may not be adequate protection when trade secrets are at issue. A court’s ordering of the disclosure of trade secrets is akin to transferring property from one party to another and should require the court to balance the trade secret owner’s constitutional right to be free from government taking of property. Read more

by: Andrew Stakelum

The 1989 grounding of the EXXON VALDEZ spurred Congress to enact the Oil Pollution Act of 1990 (OPA) to remedy what it believed to be a patch-work compensation scheme where liability and damages were subject... Read more

by: Cynthia AM Stroman, Lewis Jones and John Fortuna

Federal agencies will be adopting more stringent compensatory mitigation policies. These policies may increase the cost of mitigation projects and foreclose certain areas from development.Read more

by: Tim Burbury and Usman Ahmad

Kuwait’s new law on Public Private Partnerships is more comprehensive than its predecessor and promises to affect substantial projects on the horizon.Read more

by: Mark Francis, Phyllis Sumner and Nicholas Oldham

This article was written by Nicholas A. Oldham, Phyllis B. Sumner and Mark H. Francis. Nick Oldham is a former federal prosecutor with significant experience handling matters stemming from cybersecurity... Read more

by: Jennifer Josefson and Alexandra Rotar

In recent years the Russian Government has passed legislation and promoted investment in the Russian Far East. Most notably, Russia has established the Vladivostok Free Port and identified other territories for accelerated development, each receiving certain tax and other investment benefits. Read more

by: James Vines, Joseph Eisert, Martha Buttry Daniels and Michael Clements

OSHA recently published a revised manual instructing its inspectors on how they should conduct work site investigations. With recent government and media attention on the increased rate of fatalities and injuries at exploration and production work sites, the energy industry should take notice of these changes and prepare for increased OSHA scrutiny.Read more

by: Philip Weems, Nick Kouvaritakis and Richard Nelson

The FSRU market has grown exponentially in the past decade. This article explores the key drivers behind this growth how we expect the market to evolve in the future.Read more

by: Rory Connor and Alex Blomfield

Solar photovoltaic projects often require significant performance testing periods that extend beyond the construction of a facility. As a result, EPC contracts require special consideration as to how performance guarantees and remedies are structured.Read more

by: Daniel Rogers and David Phua (潘永光)

Long term LNG sale and purchase agreements have historically used the take-or-pay contract structure. The emergence of new and, often, less credit worthy buyers should cause sellers to examine the potential benefits of a cargo-by-cargo structure in these long term agreements.Read more

by: Ruxandra Lazar

“Gabon remains unexplored” is the conclusion of the Société Equatoriale des Mines (“SEM”), a wholly-owned State company created in 2011 to facilitate the development of the country’s natural... Read more

by: Ruxandra Lazar

In 2014 nuclear power generated more than 75% of France’s energy. A new law now caps nuclear energy at no more than 50% and creates an uncertain mechanism for reducing the current level of nuclear energy.Read more

by: Michael Andrews

The U.S. House of Representatives recently voted to end the 40-year-old ban on the export of domestic crude oil. The Senate will next consider the issue and President Obama has vowed to veto any bill that would end the ban. Read more

by: Lynn Kerr McKay and Bruce Hurley

A recent compendium of findings on the alleged harms of fracking and radon gas provides another opportunity for practitioners to emphasize the importance of using actual measurements rather than estimates to inform statements about risk. Past estimates were often unsupported or contrary to data, and generated artificial and inflated risks. Read more

by: Jia Hoe and Simon Dunbar

In recent years Hong Kong and Singapore have emerged as leading global centres for dispute resolution as a result of legislative changes, arbitration rules revisions, and the opening of new state-of-the-art facilities for mediation and arbitration.Read more

by: Amy Frey and Christopher Smith

Favorable incentive programs encouraged foreign and domestic investment in European alternative energy projects. However, some European countries have retroactively modified these programs significantly, impairing these investments. International investment treaties provide an avenue for some investors to recover their damages.Read more

by: Merrick White and Richard Nelson

King & Spalding advises Ramba Energy Limited on its farm-out of a 35% participating interest in the Lemang PSC to Mandala Energy and the farm-in of a 15% participating interest in the Lemang Block from Eastwin Global Investments Limited.Read more

by: David Phua (潘永光)

A breach of an energy commodity contract can give rise to substantial losses. These losses may be either consequential or direct losses; and the manner in which these losses are classified may affect their recoverability.Read more

by: Adrian Talamantes and Alex Blomfield

Mexico has recently published its first regulations affecting the wholesale electricity market.. These regulations are an important step in implementing a modern and competitive wholesale market in Mexico.Read more

by: Cynthia AM Stroman

EPA’s recently proposed RCRA amendments will impact energy companies in different ways. Some companies will benefit from the ability to consolidate intra-company waste under the proposed regulations. Other companies may incur increased operating costs to comply with the proposed waste labelling requirements.Read more

by: Mark Francis

The recent disclosure of more than 150 successful cyber intrusions into the Department of Energy’s computer systems between 2010 and 2014 highlights the risks posed by cyber-attacks against the energy sector.Read more

by: Tim Burbury

Three years ago, we predicted the global rise of the district energy sector.[1] The key drivers at the time were energy efficiency savings of up to 70% and reductions in greenhouse gas emissions. However,... Read more

by: Jeremy Worsham

Introduction On 11 August 2015, Angola’s New Private Investment Law (“NPIL”) came into force on its publication in Angola’s Gazette, repealing the previous 2011 law. Like its predecessor, the NPIL... Read more

by: James Bowe, Cynthia AM Stroman and Sara Peters

FERC has recently issued guidance containing best practices on how to conduct effective stakeholder outreach during FERC’s pre-filing process for applications to site, construct, and operate interstate natural gas pipelines and LNG terminal facilities.Read more

by: Cynthia AM Stroman

EPA’s recent proposed rule on New Source Performance Standards for the oil and natural gas sectors supplements its 2012 rules and focuses on methane emissions. The proposed rule focuses on methane standards for the oil and natural gas sector.Read more

by: David Tewksbury, Neil Levy and Bruce Richardson

FERC recently issued a Rehearing Order reaffirming its prior findings in Chehalis Power Generating, L.P. that addresses the distinction between an initial rate and a changed rate. The Rehearing Order has potential implications with respect to FERC-jurisdictional service provided for no compensation.Read more

by: Susanna Beard

The UK is implementing new procedures to fast track fracking applications through the approval process. The fast tracking of these applications should be well received by the fracking industry and bolster the latest round of bidding. Read more

by: Michael Andrews

Both the House and Senate have introduced bipartisan energy bills. While these bills address a range of significant energy issues, they fail to address important and contentious issues related to the approval of the Keystone Pipeline and the repeal of the ban on domestic oil exports. Read more

by: Ilana Saltzbart

EPA recently released its final rule on its Clean Power Plan. The final rule reflects changes from the proposed rule in response to the voluminous comments; but it still remains vulnerable to legal challenges.Read more

by: Charlene Sun and James Berger

The ICSID Convention is a critical mechanism for the settlement of investor-State disputes and provides binding and streamlined procedures for the enforcement of arbitral awards. Recent federal district court opinions from New York and the District of Columbia suggest a developing split in the application of ex parte state law judgment enforcement procedures. Read more

by: Christine Savage, Jeffrey Telep, Mark Wasden, Jane Cohen and Shannon Doyle Barna

The recent nuclear deal with Iran establishes a framework for easing sanctions over time. However, the deal contemplates a deliberate process whereby U.S. sanctions would be lifted over time allowing U.S. companies to re-engage with Iran.Read more

by: Michael Andrews, Thomas Spulak and Lauren Donoghue

With recent action by the Senate Finance Committee, several key energy related tax provisions are one step closer to law, including an LNG tax provision, which would make LNG fuel more competitive with diesel fuel.Read more

by: Sara Peters

The Pipeline and Hazardous Materials Safety Administration faces reauthorization by Congress this fall and a short deadline to publish numerous new and significant proposed rules.Read more

by: Cynthia AM Stroman

On July 23, 2015, the United States Environmental Protection Agency (EPA) issued its proposed framework for the Natural Gas STAR Methane Challenge Program.[i] Intended to encourage voluntary “beyond... Read more

by: Alex Blomfield and Ivan Davydov

The BRICS countries have recently established the New Development Bank in the hope of funding energy and infrastructure development in emerging markets.Read more

by: Nina Howell

The European Commission launched a public consultation on an EU strategy for LNG and gas storage. The consultation is part of the Commission’s strategy to explore the full potential of LNG and gas storage in the mid to long term and evaluate its important role in the EU’s energy policy.Read more

by: William Burns and Martha Buttry Daniels

A recent Texas Supreme Court decision addresses the obligation of royalty holders to pay postproduction costs.Read more

by: Jamie Miller

Mexico’s first auction of shallow water blocks in eighty years fell well short of expectations. While some may cite a significant decrease in the price of oil from when the auction was first announced, others have criticized harsh provisions in the model contract including the exclusion of key disputes from its arbitration clause.Read more

by: Lauren Donoghue

The Department of Energy (DOE) Wind and Water Power Technologies Office recently released a report examining the potential for wind energy to generate electricity in all 50 states. The report addresses both the current state of wind production in the US and future issues.Read more

by: Lewis Jones and Adam Sowatzka

The US EPA and Corps of Engineers recently finalized their new rule expanding federal jurisdiction under the Clean Water Act.Read more

by: Nina Howell

In May 2015 David Cameron’s Conservatives won a majority in the House of Commons and he appointed a new Secretary of State for Energy and Climate Change. These developments provide insight on the future of the UK energy policy.Read more

by: Jeremiah Anderson, William Burns and Eric Plourde

A recent Texas Supreme Court case concerning a failed methane exploration venture in Bulgaria holds that lost market value damages based on lost profits must be proven with the same “reasonable certainty” as claim for lost profit damages. Read more

by: Andrew Stakelum

Two recent U.S. federal court decisions illustrate the different legal risks involved with conducting offshore oil and gas operations. Indemnity for gross negligence will be examined on a case by case basis, as will seaman status for some offshore workers who work on both vessels and fixed offshore facilities.Read more

by: Kathryn Marietta

A properly drafted Preliminary Agreement can provide a useful framework for structuring and negotiating a transaction. However, if not carefully drafted, a Preliminary Agreement can created unintended rights and obligations. Read more

by: Lauren Donoghue

Congress has recessed allowing the Export-Import Bank to expire with the possibility that it may be later reauthorized.Read more

by: Mehdi Haroun and Ruxandra Lazar

The French government has proposed reforms to its current mining code. While the draft reforms address prior criticisms, the manner in which these reforms may be implemented risks creating additional issues.Read more

by: Jeremiah Anderson, William Burns and Eric Plourde

The Texas Supreme Court holds that the business judgment rule does not affect a plaintiff’s standing in a derivative suit brought by the shareholder of a closely held Texas corporation; and a shareholder of a closely held Texas corporation has so-called “double-derivative” standing to bring suit on behalf of the corporation’s wholly-owned subsidiary.Read more

by: Brad Thompson and Tanner Neidhardt

Inaccurate forecasting in large-scale infrastructure construction projects often leads to underestimated costs and overestimated benefits; knowing the causes of these inaccuracies and providing for measures that lessen their incidence can be the difference between success and failure.Read more

by: Adrian Talamantes

Mexico’s Comisión Nacional de Hidrocarburos has published a single form of its production-sharing contract (PSC) for the shallow-water blocks under auction in Round One. This article explores some of the significant issues of which any potential bidder should be aware. Read more

by: Vera De Brito de Gyarfas and Tomas Lanardonne

Vera de Gyarfas, a partner in King & Spalding’s Houston office, has co-authored the chapter Fiscal Regimes in the upcoming book Latin American Upstream Oil and Gas – A practical Guide to the Law... Read more

by: Alex Blomfield and Mona Katigbak

The fifty-seven prospective founding members of China-initiated Asian Infrastructure Investment Bank now have the opportunity to shape the rules that the bank will use to govern itself, as well as those it will employ in its financing of energy and infrastructure projects in Asia.Read more

by: Tim Burbury, Kevin Futch and Usman Ahmad

The nature of solar power projects requires that conventional power sale agreements be appropriately tailored for this this sector. This article addresses three key concepts that warrant consideration when drafting such agreements for large scale solar projects.Read more

by: Monica Hwang and Vera De Brito de Gyarfas

The implementation of U.S. LNG export projects creates new opportunities for Latin American LNG buyers.Read more

by: Philip Weems and Kathryn Marietta

With dozens of LNG export projects proposed around the globe in a low oil price environment, it is essential that project sponsors today consider those attributes that facilitate a successful project. This article identifies the ten key attributes of a successful LNG export project.Read more

by: C. Brannon Robertson

An important environmental trespass case before the Texas Supreme Court was expected to answer the question of whether migrating saltwater and other disposed wastewaters could give rise to a trespass cause of action. In February of 2015, the Court issued its decision. Unfortunately, for those expecting an answer on the subsurface trespass question, the holding was a narrow one.Read more

by: Sarah Vasani

Last month, the International Centre for Dispute Resolution (ICDR) Young & International, International Chamber of Commerce (ICC) Young Arbitrators Forum and the Portuguese Arbitration Association... Read more

by: Lynn Kerr McKay

Johns Hopkins University researchers reported a significant association between proximity to unconventional Marcellus Shale natural gas wells and radon concentrations on the first floor of buildings in Pennsylvania during the summer. The conclusions reached in this study should be scrutinized because of the methodology and collected data. Read more

by: William Rice

FERC recently issued a Policy Statement regarding Cost Recovery Mechanisms for Modernization of Natural Gas Facilities, which affords interstate natural gas pipelines the opportunity to propose surcharge mechanisms providing for the recovery of costs incurred to comply with certain government mandated programs.Read more

by: Sara Peters, James Bowe and Cynthia AM Stroman

PHMSA has stepped up enforcement efforts concerning pipeline and LNG terminal construction. Increased scrutiny by regulators and the DOJ warrant increased vigilance. Read more

by: William Rice

On April 16, 2015, FERC issued a final rulemaking order in which it declined to adopt the controversial proposed change in the “Gas Day” start time, but adopted several other changes contemplated by the notice of proposed rulemaking. Read more

by: Michael Andrews

A recent bill seeking to end the ban on crude oil experts provides hope that a policy that no longer serves its original purpose will be repealed in favor of free trade.Read more

by: Anthony Long

In the face of falling oil prices, Chancellor George Osborne has repealed a 2011 tax increase on oil and gas production.Read more

by: Joseph Eisert, Ilana Saltzbart and Granta Nakayama

Given its patchwork of regulatory authority over operations in the oil and natural gas industry, tEPA has adopted a national enforcement initiative to focus its efforts. A recent settlement provides further insight into EPA’s approach under the Clean Air Act and highlights the type of “beyond compliance” requirements on which industry should focus.Read more

by: Ruxandra Lazar

France is in the midst of altering the manner in which concessions are renewed in the hydroelectric sector. Read more

by: Kathryn Marietta

This article explores a few of the key attributes of a shared facilities agreement and key elements of such attributes. It also illustrates the complexities involved in an integrated LNG projects.Read more

by: Tim Burbury and Usman Ahmad

Falling oil prices no deterrent as the International Energy Agency estimates that by 2020, 2% of the global energy demand will be met by solar power with the figure rising to 16% by 2050.Read more

by: Sarah Borders and Jeffrey Dutson

A federal appeals court recently entered an opinion interpreting “the most litigated provision” in the standard-form title-insurance policy, Exclusion 3(a), which provides that liens that are “created, suffered, assumed or agreed to” by the insured lender will not be covered under the title policy.Read more

by: Cynthia AM Stroman

Recently, the Bureau of Land Management and the Environmental Protection Agency have articulated different views on the utility and effectiveness of FracFocus, a website used by many operators to report the chemicals used to fracture their wells.Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

FERC recently issued Order No. 807, which amends certain of FERC’s rules with respect to the ownership, control, and operation of Interconnection Customer’s Interconnection Facilities, or ICIF.Read more

by: Craig Ledet and Benjamin Pollock

The Texas Supreme Court recently decided a case involving the enforceability of “no damages for delay” clauses that could have significant impacts on energy disputes. Read more

by: Trinh Chubbock

In order to protect the UK oil and gas industry and make the most of the opportunities that the UK Continental Shelf presents, an independent review was conducted on how to maximise oil and gas recovery from the UKCS. We summarise the key issues identified by the review and the recommendations proposed thereunder and to set out the status of the government’s commitment to implement them.Read more

by: Sara Peters

Recent high-profile derailments of crude-carrying trains has prompted the Pipeline and Hazardous Materials Safety Administration to address safety concerns by revisiting technical standards for rail tank cars used to transport flammable liquids on high-hazard flammable trains and requirements for shippers to properly test and classify crude oil prior to transportation.Read more

by: Mark Wege, Kathryn Marietta, Edward Ripley and John Crespo

Volatile and unpredictable commodity markets present opportunities in the area of acquisition and divestiture. Industry participants face special considerations when buying and selling assets of companies experiencing financial distress. Read more

by: William Rice

The Federal Energy Regulatory Commission recently issued data requests to electric power industry participants in an attempt to obtain information that might support a proposed rulemaking that would change the ways in which the natural gas and electric power industries interact. The responses may make it more difficult for FERC to justify a rulemaking decision to redefine the “Gas Day,” a 24-hour period during which shippers nominate and schedule natural gas transportation services furnished by natural gas pipelines. Read more

by: John Fontham

Project owners and financiers are increasingly turning to delay in startup insurance to protect themselves from the financial consequences of delays in completion of large new construction projects, particularly for projects that are financed on a nonrecourse or limited recourse basis.Read more

by: Olga Kozyr, Jennifer Josefson and Alexandra Rotar

С открытием Роснефтью больших запасов легкой нефти и газа на скважине Университетская-1 в Карском море, интенсивное развитие недропользования на Арктическом шельфе становится лишь вопросом времени.Read more

by: Clinton Long

By announcing that processed lease condensate is not considered “crude oil,” the U.S. Department of Commerce’s Bureau of Industry of Security narrowed the scope of the U.S. crude oil export ban and opened the door for increased U.S. oil exports.Read more

by: Philip Weems and Monica Hwang

The only constant in the LNG industry again appears to be change – unpredictable change. The LNG supply and demand balance shifted in 2014 as LNG supply appears, at least temporarily, to have surpassed demand. Other conditions also seem favorable to LNG buyers as oil prices start the year at 50% of the level of a year ago and at least eight LNG export projects are scheduled to come on line just this year. Although the current focus is on oil price levels, the LNG industry is influenced by numerous other factors, from technological to political, and changes in a factor may affect the entire LNG market. This article examines some of the top questions that the LNG industry may face in 2015.Read more

by: Olga Kozyr, Jennifer Josefson and Alexandra Rotar

After Rosneft’s recent discovery of substantial light oil and gas reserves at the Universitetskaya-1 well in the Kara Sea, regular development of subsoil on the Arctic shelf will become just a matter of time.Read more

by: John Bowman

Despite an initial, notable rebuff of the notion of a lex petrolea some thirty years ago by an arbitral tribunal, today four possible sources of a lex petrolea can be identified and considered – national petroleum laws, international petroleum contracts, custom and practice in the international oil industry, and international arbitration awards – and questions about the existence and composition of a lex petrolea can once again legitimately be asked.Read more

by: Jennifer Josefson, Raymond Witt, Jane Cohen and Elizabeth Owerbach

Iran had planned to announce a new model petroleum contract intended to encourage foreign investment in its energy sector, but uncertainty relating to the sanctions negotiations continues to create uncertainty regarding the release of the new model contract.Read more

by: Kathryn Marietta and Merrick White

Drilling contracts are at the core of upstream operational agreements. They come in many forms and are negotiated to varying degrees depending on the value of the contract, level of risk involved, and existence of regional forms that may dictate terms. Avoiding ambiguity, or silence, in the contract with respect to critical terms, will prevent misunderstandings and conflict should situations arise that require contract interpretation.Read more

by: Andrew Stakelum

BSEE may propose new regulations that grant it formal oversight over contractors on work place safety.Read more

by: Lynn Kerr McKay and Scott Greer

A recent ruling in Cooper v. Tokyo Electric Power Company, No. 12-CV-3032, S.D. Cal., Oct. 28, 2014, one of three lawsuits[1] filed in the United States related to the 2011 incident at the Fukushima-Daichi... Read more

by: Cynthia AM Stroman

This morning, the U.S. Environmental Protection Agency announced its anticipated strategy to reduce U.S. emissions of methane from the oil and gas industry. The Agency aims to achieve a 40 to 45 percent cut from 2012 levels in the next 10 years.Read more

by: Craig Warner

Even as headlines in 2014 misleadingly suggested that lawsuits against hydraulic fracturing operations were gaining steam, continued scientific study provided new legal ammunition for energy companies defending state-of-the-art energy exploration.Read more

by: Lynn Kerr McKay and Scott Greer

A recent ruling in Cooper v. Tokyo Electric Power Company, one of three lawsuits filed in the United States related to the 2011 incident at the Fukushima-Daichi nuclear power plant, highlights gaps in the application of methods for managing nuclear liability and the need for global expansion and strengthening of those methods.Read more

by: Russell Blythe

An analysis of data recently provided by the United States Patent and Trademark Office shows that the number of patents granted in the oil and gas sector has grown at a double-digit rate in the six years since the 2008 recession, including a 47% increase in granted patents related to wells and a 62% increase in granted patents related to earth boring, well treating, and oil field chemistry.Read more

by: Nina Howell

The prosperity and economic stability of the European Union, and wider Europe, is dependent on a stable, abundant, diverse and competitively priced supply of energy. In light of recent geopolitical events, we consider the roles that European shale gas, or US LNG exports could play in supplying Europe’s energy markets.Read more

by: Mehdi Haroun and Ruxandra Lazar

Following the liberalisation of energy markets in the 2000s, electricity-intensive consumers have faced high and unpredictable prices. In this context, seven major industrial groups (Air Liquide, Solvay, Rhodia, Arkema, Alcan, Arcelor and UPM) established a consortium called Exeltium and launched a Europe-wide call for tender in order to negotiate better conditions for electricity supply.Read more

by: Ruxandra Lazar and Mehdi Haroun

The ongoing debate over environmental issues and their impact on the French energy model raises many issues. Following an eight-month national debate and two conferences which brought together ministers, elected officials and non-governmental organisations, on July 30 2014 a draft energy transition bill was put before Parliament.Read more

by: Scott Greer

Scott A. Greer, a partner in King & Spalding’s Global Transactions Practice Group, describes the firm’s construction practice and his role.Read more

by: James Bowe and William Rice

Comments recently filed with the Federal Energy Regulatory Commission show that the natural gas and electric power industries continue to disagree fundamentally on government efforts to redefine the “Gas Day,” a 24-hour period during which shippers nominate and schedule natural gas transportation services furnished by natural gas pipelines.Read more

by: Adrian Talamantes, Kenneth Culotta and Vera De Brito de Gyarfas

The Comisión Nacional de Hidrocarburos has issued the first call for bids under Round One and the terms and conditions governing the tender. CNH seeks to award 14 production-sharing contracts for the exploration and production of hydrocarbons in 14 areas located in shallow waters offshore the States of Veracruz, Tabasco and Campeche in the Gulf of Mexico.Read more

by: Nina Howell, Sarah Vasani and Grigori Lazarev

An ICSID tribunal recently ruled on the compensation payable by Venezuela to ExxonMobil for the nationalization of ExxonMobil’s Cerro Negro and La Ceiba projects. ExxonMobil had claimed US$14.5 billion and Venezuela had offered US$353 million. The ruling that Venezuela pay ExxonMobil US$1.6 billion has been declared a victory by both sides.Read more

by: Cynthia AM Stroman

The EPA recently issued a proposal to lower the ozone (O3) national ambient air quality standard from its current 75 parts per billion to a point between 65 and 70 ppb.Read more

by: Vera De Brito de Gyarfas and Santiago Fourcade

Argentina recently amended its hydrocarbons law to create incentives for foreign investment and boost the country’s conventional and unconventional hydrocarbons exploration and production. Read more

by: Rory Connor, Alex Blomfield and Seif Borin

The Privy Council recently reaffirmed the established principle, commonly referred to as the “fraud exception,” that, other than in cases of illegality, a court may only step-in to enjoin a call on a documentary letter of credit in the case of fraud on the part of the beneficiary. Read more

by: Anthony Long

Given the questions marks hanging over the commercial feasibility of the process, safety issues and environmental impact, not to mention financing underground coal gasification, it is going to take many years to know what exact role, if any, it will play in the UK’s plans to provide diversity of supply, energy security and cleaner energy.Read more

by: Lynn Kerr McKay

Regulators in Pennsylvania and Ohio are taking steps to address the presence of naturally occurring, and “technologically enhanced naturally occurring,” radioactive materials in shale gas wastes.Read more

by: James Bowe and William Rice

FERC recently issued a declaratory order holding that it would not have jurisdiction under the Natural Gas Act over the construction or operation of a proposed compressed natural gas (CNG) facility at the Port of Palm Beach, Florida.Read more

by: Laura Kane and Alex Blomfield

An English court recently handed down an unprecedented decision concerning a liquidated damages clause that may have a number of practical implications on contract amendments governed by English law.Read more

by: Trinh Chubbock

The new AIPN 2014 Model Unconventional Resources Operating Agreement (UROA) addresses issues unique to unconventional resources such as pilot projects, sub-areas, multi-pad drilling and production, and other aspects of horizontal drilling.Read more

by: Cynthia AM Stroman

For the past several years, the rapid growth of oil and natural gas production from shale and other unconventional sources has prompted vocal and often sensationalized concerns regarding the potential for migration of gas from hydraulic fracturing operations into sources of drinking water. Studies issued recently indicate that the presence of gas in drinking water resulted from faults in well casing or completion, not from the fractures.Read more

by: Kenneth Culotta, Adrian Talamantes, Alex Blomfield and Charity Kirby

Although much of the buzz around Mexico’s energy reform focused on the oil & gas sector, the Mexican power sector also underwent a fundamental change. Together with eight new and twelve amended federal laws, Mexico enacted the new Ley de la Industria Eléctrica on August 11, 2014. Read more

by: H. Victor Thomas

In the BP Gulf Oil Spill Litigation, Judge Barbier issued two conclusions of law that could affect future litigation involving energy companies, namely, (1) the standard for “gross negligence” and “willful misconduct” under the Clean Water Act and (2) the standard for vicarious liability for punitive damages under Maritime Law. Because there does not appear to be much precedent on the first issue and the U.S. Court of Appeals are divided on the second issue, these issues will likely be immediately appealed to the Fifth Circuit and then to the U.S. Supreme Court. Read more

by: Margrete Stevens

On September 1-2, King & Spalding sponsored a major conference on energy disputes held in Copenhagen. Hosted by the Danish Institute of Arbitration, the event included some 160 international practitioners and in-house counsel. Read more

by: Jeffrey H. Perry

The Petroleum Economist Awards were adjudicated by a panel of independent experts drawn from across the international energy industry and included: Abdullah Salem El Badri, Secretary General, OPEC; Lord Cullen of Whitekirk, KT; Torstein Indrebø, Secretary General, International Gas Union; and Lord John Browne, Baron Browne of Madingley, former Chief Executive, BP. Read more

by: Susanna Marshall

The UK’s Energy Minister recently invited applications for the award of new onshore petroleum exploration and development licences in the 14th Landward Licensing Round. The new round is being welcomed after a moratorium on fracking imposed between November 2011 and December 2012 following two seismic tremors near a frack site in Lancashire. Read more

by: Adrian Talamantes and Kenneth Culotta

State and privately-owned domestic and foreign companies may now compete in a free market for and directly engage in the exploration and production of liquid, solid and gaseous hydrocarbons, conventional or unconventional, pursuant to any type of host government instrument the Mexico creates and implements, except for concessions. Read more

by: Merrick White and David Phua (潘永光)

根据<>, 中国在2035年将成为全球最大的能源进口国,届时能源进口将超过欧洲。中国能源供应需求的预期增长、其利用更清洁与高效能源来源的计划以及液化天然气(LNG)和全球天然气市场的发展,为中国天然气消费拥有可观空间增长的看法,提供了强有力的依据。天然气进口量的增加很可能满足消费的增长。作为一个概述,本文章将探讨中国目前天然气消费与进口的状况、影响进口的供应与价格因素、进口增长的潜能以及LNG 和管道天然气各自提供的进口量。 [This is a Mandarin version of a previously published post titled, Natural Gas Imports into China – Prospects for Growth.] Read more

by: James Bowe, Kenneth Culotta and William Rice

North America’s new-found wealth in natural gas is driving energy industry participants to seek out new markets for the suddenly abundant fuel, including interest in LNG for vehicular and marine fuels, other applications employing high-horsepower engines, peak shaving or to serve “off the grid” demands. Development of these LNG production facilities raises questions as to whether they are subject to regulation by the Federal Energy Regulatory Commission (FERC) under the Natural Gas Act (NGA). On September 4, 2014, in response to LNG project developer petitions, FERC issued two orders addressing such questions. These orders are significant because in them FERC held that it does not have jurisdiction over activities that are likely to be performed by LNG facilities serving vehicular fuel, marine, high horsepower and some peak shaving and remote markets.Read more

by: C. Brannon Robertson

The Texas Railroad Commission has proposed expanding its pipeline permitting process, including requiring applicants to provide a sworn statement and documentation supporting any claim that a proposed pipeline will function as a common carrier line.Read more

by: Christine Savage, Iain MacVay, Mark Wasden, Jane Cohen, Sajid Ahmed, Shannon Doyle Barna and Clinton Long

In response to the continuing conflict in Ukraine, the United States and European Union have targeted Russia’s energy sector with a variety of sanctions.Read more

by: Neil Levy, David Tewksbury, Ashley Parrish and Stephanie Lim

On August 15, 2014, the D.C. Circuit issued a per curiam decision rejecting challenges to the Federal Energy Regulatory Commission’s Order No. 1000 rulemaking brought by certain petitioners, including... Read more

by: Rory Connor

Introduction Mr Justice Akenhead’s judgment in the case of Obrascon Huarte Lain SA v Her Majesty’s Attorney General for Gibraltar[2014] EWHC 1028 (TCC) provides judicial guidance on the interpretation... Read more

by: Merrick White and David Phua (潘永光)

A number of significant challenges confront the long term growth of the natural gas market in China. Nevertheless, both pipeline gas and LNG imports into China have favourable prospects for significant growth in the coming years.Read more

by: Adrian Talamantes and Kenneth Culotta

Mexican President Enrique Peña Nieto recently promulgated 21 new and amended laws which regulate last December´s historic constitutional energy reform. Among others, the new laws include a Hydrocarbons Law, which governs the upstream, midstream and downstream oil and gas sectors, a Hydrocarbons Revenues Law, which governs the manner in which the State may generate income in such sectors, and the Law of Pemex, which governs the conversion of Petróleos Mexicanos (Pemex), Mexico´s national oil company, into a “productive state enterprise”. Read more

by: Philip Weems and Nina Howell

2014 marks the 50th anniversary of the start of the first liquefied natural gas (LNG) export project. During the intervening years, Japanese companies have been central to establishing the LNG industry as a major source of global energy supply. Read more

by: Cynthia AM Stroman

The U.S. Environmental Protection Agency recently published a request for information on changes for its Risk Management Program accident prevention regulations under section 112(r) of the Clean Air Act.Read more

by: Sara Peters

The U.S. Department of Transportation (DOT) and its Pipeline and Hazardous Materials Safety Administration (PHMSA) recently announced a Notice of Proposed Rulemaking to strengthen safety standards for rail transport of crude, ethanol, and other flammable liquids.Read more

by: Bryan Adams

Constantly looking for ways to increase productivity and efficiency, the energy industry is increasingly looking to innovative software solutions from technology vendors. This article offers suggestions for a company to follow when negotiating a software license agreement.Read more

by: Ruxandra Lazar and Raphaele Bouniol

The enactment of a new mining code is eagerly awaited by the industry, which has been facing the consequences of public opposition to unconventional hydrocarbons for almost three years now.Read more

by: Susanna Marshall

The government of Greece will hold a new offshore oil and gas bidding round offering twenty blocks located to the south of Crete and in the Ionian Sea, covering a combined area of over 200,000 square kilometers.Read more

by: Patricia Barmeyer, Lewis Jones and John Fortuna

In a case involving remote harm to endangered whooping cranes, the Fifth Circuit Court of Appeals confirms that proximate cause and foreseeability are required elements for establishing Endangered Species Act liability and casts doubt on using the theory of “vicarious liability” to hold state agencies liable under the Act for failing to regulate private action that may harm protected species. The case is significant because it draws an important line against the trend of expanding ESA liability for attenuated harm to listed species.Read more

by: Cynthia AM Stroman, Patricia Barmeyer and Les Oakes

Greenhouse gas emissions rules are allowable for sources otherwise subject to federal Clean Air Act permitting.Read more

by: H. Victor Thomas

One lesson from this case is clear: If a state wishes to avoid litigation as to whether municipalities are precluded from passing zoning laws that prohibit all drilling and fracking operations, it should enact a law that expressly states that zoning laws are superseded or preempted.Read more

by: Nina Howell

Tanzania’s relatively rapid transition from an under-developed country to a potentially large LNG exporting nation has naturally brought with it a requirement to update and enhance existing legislation and regulations. We look at proposed provisions of a local content policy and consider industry’s likely reaction.Read more

by: William Rice, Alex Blomfield and Alexandra Rotar

Moscow hopes to spur on the development of renewable energy projects through a renewable energy capacity auction framework.Read more

by: James Bowe, Cynthia AM Stroman and William Rice

On June 6, 2014, the D.C. Circuit Court of Appeals issued an opinion holding that FERC acted improperly in separately analyzing the environmental impacts of certain pipeline projects, rather than treating them as one interrelated project for review under NEPA.Read more

by: Cynthia AM Stroman

The Department of Energy recently proposed a new approach to conducting its reviews of proposed projects to export liquefied natural gas (LNG) to non-FTA countries.Read more

by: Hywel Jones

With expected future investment in the petroleum sector of at least $20 billion over the next five years, Ghana has been reviewing the effectiveness of its regulatory framework, and in particular, has prioritized building into that framework transparency and accountability measures.Read more

by: Cynthia AM Stroman

The U.S. Environmental Protection Agency (EPA) recently unveiled its long-awaited proposed greenhouse gas (GHG) emission standards for existing power plants.Read more

by: Jonathan Marsh

Attempts by the U.S. government and State of California to hold various oil companies liable for CERCLA clean-up costs for refining wastes associated with government-directed aviation gas manufacturing efforts have been rejected by the Federal Circuit.Read more

by: Jeffrey H. Perry and Tim Engel

Flaring in North Dakota has increased more than 50 percent in the past two years to levels previously unknown in the United States and comparable to those of Russia and Nigeria. Due to the volume of gas flared, the dismissal of a group of proposed class actions alleging that certain oil and gas companies operating in the state underpaid royalties on natural gas flared from their operations is an important victory for the industry.Read more

by: Tomas Lanardonne and Vera De Brito de Gyarfas

The increase of domestic gas obligations imposed by Host States in pipeline gas or LNG export projects has become a trend in the international gas industry.Read more

by: Christine Savage and Sephen Orava

The presentation provides a summary of key international trade compliance issues (sanctions, export controls, customs) and opportunities to use trade rules to address barriers or problems with current operations or market access. The presentation is tailored to those issues of particular relevance and interest to energy exploration and production companies.Read more

by: Anthony Long

New rules on state aid announced in April may make it harder for UK and other governments to subsidise nuclear energy projects like the reactors at Hinkley Point.Read more

by: Merrick White and Sylvia Taslim

Frequently oil and gas are transported through or stored in facilities where they are commingled with the oil or gas of third parties. If a facility does not provide for the allocation of the oil or gas or if the allocation procedure is faulty, then what is the position at law? Who owns the oil or gas and in what proportions?Read more

by: William Rice

At the March open meeting, FERC issued a notice of proposed rulemaking (NOPR) in which it proposed changes to the Gas Day and pipeline nominations schedule.Read more

by: Elizabeth Taber

The Texas Supreme Court recently issued an opinion with implications for negotiating terms in power purchase agreements in the renewable energy market. The Court examined the nature of electricity as a good, finding it should be treated no differently than any other commodity when interpreting contracts.Read more

by: Andrew Stakelum

The U.S. Fifth Circuit recently addressed whether state law claims by local governments could co-exist and supplement the Clean Water Act (CWA) and the Oil Pollution Act (OPA) in a decision that provides important clarity on the risks that a company may face after an offshore pollution event.Read more

by: C. Brannon Robertson

In Texas, exploration and production companies are generally shielded from subsurface trespass liability when they use fluids to stimulate production. Whether they are also shielded from liability when their disposed fluids cross property lines remains an open question, but one that will hopefully be decided shortly.Read more

by: Bruce Hurley, C. Brannon Robertson and Elizabeth Taber

A Texas jury recently rendered a verdict awarding $2.925 million arising out of personal injury claims based on medical problems allegedly caused by natural gas development.Read more

by: Keith Townsend, Matthew Bozzelli and Jeffrey H. Perry

As the deadline for submission of a company’s Form SD draws closer, we continue to field questions from clients hitting on important concepts underlying threshold issues regarding the scope and content of their required disclosures.Read more

by: John Keffer and David Phua (潘永光)

相对于合资企业在上游项目所面对的问题,当前LNG行业刊物对中游液化天然气 (以下称LNG)项目的股东协议堪少着墨。虽然所有的股东协议多有类似,但中游项目是LNG价值链的关键环节之一,而中游项目股东协议对经营和拥有液化加工设施的实体引起的各类问题和必须考量的因素,值得我们更进一步详细地讨论和分析。 [This is a Mandarin version of a previously published post titled, Shareholders’ Agreements for LNG Midstream Projects.] Read more

by: John Keffer and David Phua (潘永光)

随着世界对天然气的需求日益增加,全球的液化天然气(以下称LNG)项目的投资金额和数量也相应提升。此类的项目投资可采用各种形式,而投资的最终形式取决于不同的因素,例如进行投资时的开发阶段,以及LNG项目所采用的运营模型。在这方面,某些LNG项目将建立一家独立的项目公司(以下称LNG公司),LNG公司建立之后拥有液化设施,可能购买天然气将其液化为LNG而进行销售,或者为上游参与者液化天然气,由此赚取服务费用。本文将浅谈对一家LNG公司投资所引起的事项。 [This is a Mandarin version of a previously published post titled, Investments in LNG Project Companies – Key Issues relating to Shareholding Acquisitions.]Read more

by: Neil Levy, Bruce Richardson and Jeffrey H. Perry

On March 7, 2014, the Federal Energy Regulatory Commission (FERC) directed the North American Electric Reliability Corporation (NERC) to develop reliability standards requiring owners and operators of the Bulk-Power System to address risks due to physical security threats and vulnerabilities in order to enhance the resilience of the transmission grid.Read more

by: Michael Andrews and Abraham N.M. Shashy, Jr.

The tax code may not be the best way to design a strategically sustainable energy policy, but for the past century, it has been the most important. In the coming months, as the congressional debate over tax reform intensifies, the nation’s energy policy should be central to that debate.Read more

by: Susanna Marshall

The UK government supports shale gas development for the significant economic and energy security benefits it perceives development will bring. The government is considering steps to allow operators to efficiently secure subsurface access rights from landowners.Read more

by: Adrian Talamantes and James Bowe

The recent constitutional reform of the Mexican energy sector will catapult Petróleos Mexicanos (Pemex) and Comisión Federal de Electricidad (CFE) into an unfamiliar competitive market environment. The rules of the game are not yet in place, but the former state monopolies over oil and gas exploration and production and electricity generation activities expect to compete in the broader national energy market side by side with other state and privately owned companies. This expectation has both Pemex and CFE scrambling to find a place in a new world and gain a competitive advantage against the newcomers.Read more

by: Adrian Talamantes

On March 21, 2014 Petróleos Mexicanos (Pemex) submitted its round zero proposal to the Secretaría de Energía (SENER), Mexico’s department of energy. Read more

by: Daniel Rogers, Merrick White and David Phua (潘永光)

随着亚洲LNG需求的日益增加,亚洲将继续作为世界的关键LNG市场是无庸置疑的。但是,亚洲LNG市场是否将大规模地转移至更高流动性的现货市场,因此在亚洲出现一个LNG 贸易枢纽的发展,目前未能确定。本文考虑亚洲贸易枢纽发展的必备因素,以及新加坡作为该枢纽的发展前景。 [This is a Mandarin version of a previously published post titled, Prospects for Development of an Asian LNG Trading Hub.] Read more

by: James Bowe

FERC rejects for the first time an oil pipeline petition seeking approval of proposed rates and terms of service, a prorationing policy and preferential allocation of excess capacity.Read more

by: Christine Savage, Mark Wasden, Jane Cohen, Shannon Doyle Barna and Clinton Long

The U.S. government has implemented temporary and limited sanctions relief for certain Iranian industries, including the petroleum industry.Read more

by: Michael Andrews

Ways and Means Committee Chairman Dave Camp's tax reform proposal targets tax breaks that have been the bedrock of the energy industry for decades.Read more

by: Andrew Stakelum

Evolving offshore energy regulations may increase risks in unexpected ways.Read more

by: Alex Blomfield

The U.S. Congress has passed legislation which could restrict funding of large hydropower projects by the United States and any international financial institution which the United States funds as well as increase scrutiny of projects funded by such institutions.Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

In late January and early February 2014, FERC issued a series of orders waiving the $1,000 per megawatt-hour offer caps imposed under the tariffs of PJM and NYISO to ensure that suppliers will be able to recover their costs in light of gas prices that have soared due to extreme cold weather.Read more

by: Cynthia AM Stroman

The EPA recently issued final guidance on the use of diesel fuels in hydraulic fracturing operations. Central to the scope of the guidance’s impact is the definition of “diesel fuel,” since any fracturing operation involving diesel fuel must obtain an underground injection permit under the Safe Drinking Water Act.Read more

by: Kathryn Marietta

With North America being the region of current focus as a result of the many LNG export projects that have access to North America grid gas, third party LNG tolling is front and center.Read more

by: Martha Buttry Daniels

OSHA inspectors have the authority to conduct sudden investigations without providing advance notice. It is important for industry professionals to be informed on how to anticipate, prepare for, and handle these surprise OSHA inspections.Read more

by: James Bowe and Sara Peters

Recent derailments and related explosions and fatalities have raised the profile of transportation of crude by rail with regulators, industry, and lawmakers.Read more

by: Nina Howell

The future of the UK North Sea has become a major battleground between voices in support of Scottish independence and those opposed, with both camps trying to persuade Scottish voters that they will do a better job of managing the UK’s oil industry in the future.Read more

by: Jonathan Marsh

A recent ruling is likely to provide the impetus necessary to have the Supreme Court of Texas take up the important issue of whether the statutory cap on a supersedeas bond applies per judgment or per judgment debtor.Read more

by: Louis-Alexis Bret and Kyle Sheahen

As trading companies have emerged from relative obscurity to become formidable players in global energy markets, a series of high-profile allegations of corruption involving energy traders has led to increased awareness of potential misconduct in the energy sector by both global financial regulators and parties engaged in international arbitration proceedings.Read more

by: Clinton Long

An increasing domestic supply of crude oil has a number of policymakers and members of the oil industry calling for a repeal of the restrictions. Some refiners, however, oppose repeal, arguing that the country is better off keeping U.S. crude oil inside its borders.Read more

by: Anthony Long

Tanzania's Natural Gas Policy: a domestic opportunity.Read more

by: Adrian Talamantes

Continuing a liberalization trend commenced with the signing of NAFTA, Mexico has amended its Political Constitution to allow the participation of private capital in its upstream, midstream, and downstream oil and gas businesses. Read more

by: Daniel Rogers, Merrick White and David Phua (潘永光)

Given the scale of LNG imports into Asia and in light of the efforts of different Asian countries in developing their own LNG trading capabilities there is a possibility of not just one but multiple trading hubs within the region. Read more

by: Jennifer Josefson and Alexandra Rotar

Recent legislative actions open the door for LNG export by companies other than Gazprom, and may become a starting point for further dialog on the subject of Russian gas export liberalization.Read more

by: Neil Levy, James Bowe and William Rice

FERC recently issued a rulemaking order clarifying and modifying the regulations applicable to interstate natural gas pipelines' minor construction and maintenance activities. Read more

by: Jonathan Marsh

A recent ruling could provide the oil and gas industry with a much-needed advantage with respect to how and where contamination-related claims from historic oil and gas exploration and production operations in Louisiana are to be litigated.Read more

by: C. Brannon Robertson and Ron Palmer

Almost every oilfield services contract will contain some type of indemnity provision. Yet several oil-producing states have enacted statutory provisions that will, at times, render unenforceable an indemnification provision that purports to require indemnification for the indemnitee's own negligence.Read more

by: Nina Howell

East Africa: Tanzania introduces new model Production Sharing Agreement and Mozambique prepares to enact new Petroleum LawRead more

by: Kevin Conway and Nina Howell

A new allowance, intended to support investment in developed oil fields, reduces the amount of adjusted ring fence profits subject to a Supplementary Charge for fields that are to undergo additional development. Read more

by: Tomas Lanardonne and Vera De Brito de Gyarfas

Although with caution, investors are responding to shale oil and gas projects in the "Vaca Muerta" play located in the Province of Neuquén.Read more

by: Harold Shaw

The demand for action has increased the pressure on the EPA to impose additional new environmental requirements on the oil & gas sector, including fracking activities.Read more

by: Thomas Spulak, Michael Andrews and Allison Kassir

While renewable energy tax issues remain in flux amidst negotiations between Congress and the Administration, work on other federal renewable initiatives continues. Read more

by: Adrian Talamantes

The Mexican government published in the Diario Oficial de la Federación, its official daily gazette, a Decree amending Articles 25, 27 and 28 of the Constitution (the “Decree”). The Decree became effective on December 21, 2013 (the “Effective Date”) and, except as set forth below, requires that the government further enact implementing legislation within 120 days thereof. Read more

by: Kathryn Marietta

A tolling model has been used in several recent LNG export projects. Many variations can exist, so understanding decision points upfront will help bring definition to participants' objectives, and facilitate negotiations and preparation of project documentation.Read more

by: Anthony Long

Reserve based lending is a type of financing where a loan is secured by the undeveloped reserves of oil and gas of a borrower. Although it has some similarities to traditional working capital asset-based lending facilities there are some key differences, including commodity pricing assumptions.Read more

by: Henry Burnett, Craig Miles, Wade Coriell, John Savage and Peter Megens

Recent developments in the Mongolian mining sector depict an increasingly unpredictable business environment, which severely constrains foreign mining companies' ability to invest and operate.Read more

by: Jessica Beess und Chrostin

Two recent cases illustrate the importance of gas pricing arbitration for parties seeking a revision of contract prices under long-term gas supply contracts.Read more

by: Suzanne Rab

The Court of Justice of the EU has dismissed an appeal by German energy company E.ON Energie AG against a lower court’s decision upholding a fine of EUR 38 million on E.ON for breaking a seal during an EU competition inspection or “dawn raid.” Read more

by: H. Victor Thomas

For many decades, parties in Texas courts did not have any right to appellate review of a trial court's new trial order and trial courts were not required to specify their reasons for setting aside a jury's verdict. Recently, the Texas Supreme Court fixed this anomaly by expanding the mandamus jurisdiction of the appellate courts to allow review of the correctness of a new trial order. Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

Two federal district courts recently found that the exclusive jurisdiction of the Federal Energy Regulatory Commission preempts state requirements that regulated utilities enter into contracts-for-differences with generators, under which utilities would make additional payments to generators for capacity sold into Reliability Pricing Model capacity auctions held by PJM Interconnection, L.L.C. Read more

by: Nina Howell

With UK political campaigns in full swing for the next general election in May 2015, Labour's leader, Ed Miliband pledged that gas and electricity bills would be frozen for all UK households and business for 20 months if Labour wins power. Labour estimates a price freeze would cost energy firms in the UK £4.5 billion.Read more

by: Jennifer Josefson and Alexandra Rotar

New amendments passed in September 2013 provide a tax framework necessary for the realization of offshore projects. They provide a legal basis for cooperation between Russian companies holding exploration and development licenses and other companies (including foreign companies) based on a modified risk service model.Read more

by: John Keffer and David Phua (潘永光)

An investment in a midstream LNG project company requires consideration of a variety of issues and related project agreements, as well as negotiations with different entities. Each investment will raise its own set of issues that likely need to be addressed during the acquisition process.Read more

by: Stephen McCullers

The Bureau of Safety and Environmental Enforcement has proposed revisions to Oil and Gas Production Safety Systems (OGPSS) rules and the best available and safest technology (BAST) rule. These rules last received major revisions in 1988 and 1978, respectively.Read more

by: Susanna Marshall

Under new EU legislation, large and listed companies in the extractive industries will be required to disclose details of any significant payments they make to governments and authorities of all countries in which they operate. Read more

by: Kenneth Culotta and Adrian Talamantes

In what amounts to a sea-change in Mexican energy politics, competing bills have been proposed to amend the Mexican Constitution to permit, for the first time in generations, the participation of private capital in Mexico's upstream oil and gas business.Read more

by: Isabel Fernandez de la Cuesta

Mexico's efforts to open its oil and gas business provide an occasion to review the protections afforded to investors by Mexico's well-established and vast network of international treaties on direct foreign investment.Read more

by: Jonathan Marsh

A Ninth Circuit ruling on California's low carbon fuel standard could have significant consequences for oil and ethanol producers all across the globe. Read more

by: Cynthia AM Stroman

While the EPA's recently-proposed standard for new coal-fired power plants may be generating the most controversy, the natural gas-fired power plant standard is the one most generators will have to achieve. Read more

by: Vera De Brito de Gyarfas

In an attempt to foster investment in shale oil and gas, particularly in the Vaca Muerta formation, the Argentine government recently issued a new promotion regime for development activities in this "top five" country.Read more

by: Nina Howell

UK energy providers have signed deals to buy LNG from the Sabine Pass and nearby Golden Pass LNG export facilities in the US. We look at the role that US natural gas may play in the UK's future energy mix.Read more

by: Tim Burbury and Lachlan Doyle

The introduction of the UK Treasury's revised approach to public-private partnerships in many respects reflects the model and structure that independent infrastructure projects have taken in the Gulf Cooperation Council. So what has changed and how might the benefits be felt across the GCC?Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

Two recent Federal Energy Regulatory Commission orders will result in the imposition of civil penalties totaling nearly three quarters of a billion dollars, as well as additional requirements to disgorge unjust profits totaling nearly $160 million, for alleged market manipulation in violation of Section 222 of the Federal Power Act and FERC's regulations. Read more

by: Kelsey Desloover

Today's oil and gas exploration increasingly involves drilling deeper, increasing the likelihood of encountering elevated levels of naturally-occurring mercury in hydrocarbons found at these advanced depths. This drilling can lead to damage downstream from the wells in processing equipment. Read more

by: Jeffrey H. Perry

The U.S. Department of the Interior's Office of Natural Resources Revenue (ONRR) recently proposed significant changes to federal royalty reporting requirements covering all solid minerals, including coal. The proposed rule would impose new procedures governing the valuation of Federal Coal for advance royalty purposes and impose a new, uniform "Solid Minerals Sales Summary" on all Federal and Indian solid mineral leases.Read more

by: C. Brannon Robertson

It has a long been a rule in Texas that the mineral estate is dominant over the surface estate. This rule has taken on an increased importance recently with the shale boom driving increased E&P activity in the state.Read more

by: H. Victor Thomas

OSHA has proposed a new rule sharply reducing the limits for workers' exposure to silica that some experts believe could have a major impact on fracking operations and might increase the risk of litigation.Read more

by: Philip Weems and Denis Fallon

Recent amendments to The Convention of Liability for Maritime Claims 19 November 1976 increase the liability that a shipowner must pay out in the event of an accident by approximately 51 percent.Read more

by: Susanna Marshall

The UK government recently implemented regulations permitting fees to be charged for considering and issuing certain authorizations required of petroleum exploration and production licensees.Read more

by: Kevin Conway and Nina Howell

The UK government has issued a consultation to solicit views on tax incentives and other measures aimed at encouraging early investment in shale gas exploration and exploitation.Read more

by: Alexandra Rotar and Jennifer Josefson

The last two years have seen a boom in Russian Arctic oil and gas development projects. New amendments to Russia's continental shelf body of law address concerns related to inherent risks involved in deep water development.Read more

by: Jonathan Marsh

Within a matter of just a few days, the federal courts put an end to climate change litigation, including one case that had originated in 2005 in the wake of Hurricane Katrina.Read more

by: Jennifer Price

Designating the seat of arbitration is one of the most important elements of an effective international commercial arbitration agreement.Read more

by: Benjamin Pollock

Two recent decisions indicate that Texas courts are likely to examine common carrier status more closely when landowners challenge a pipeline company's ability to secure easements by eminent domain.Read more

by: Russell Blythe

Whether a patented product is marked as such can have a dramatic effect on preserving – or avoiding – substantial damages in patent infringement litigation. This aspect of patent law should not be overlooked by patent owners, or those accused of infringement.Read more

by: Nina Howell

A new draft Petroleum Law, by attracting foreign investment into Turkey's energy sector, should help Turkey increase exploration in territorial waters, increase domestic production, and reduce the country's dependence on imports of oil and gas.Read more

by: Keith Townsend, Matthew Bozzelli and Jeffrey H. Perry

The SEC released twelve frequently asked questions in an effort to provide guidance on various aspects of the conflict minerals rules, including guidance important to mining operators as well as pipeline and transmission companies. Read more

by: Cynthia AM Stroman and Cameron Norris

The Court's decision will have major implications for the energy sector and help shape the regulatory landscape regarding interstate air pollution for the foreseeable future.Read more

by: Jeffrey H. Perry and Tim Engel

An Inspector General report evaluating coal leasing activities overseen by the Bureau of Land Management noted "weaknesses" in the lease sale process that put the government "at risk of not receiving full value for coal leases." Read more

by: Cynthia AM Stroman

The President's new Climate Action Plan is long on ambitious goals and short on details, but clearly will impact businesses in the energy sector.Read more

by: J. Michael Taylor, Mark Wasden, Bonnie Byers and Patrick Togni

A Buy American provision would mandate the use of American iron, steel, and manufactured goods in certain water resources projects.Read more

by: John Keffer and David Phua (潘永光)

Key issues and considerations arise in relation to shareholder agreements for parties responsible for owning and operating LNG processing facilities.Read more

by: Louis-Alexis Bret

Two recent arbitral decisions have confirmed that key aspects of modern energy trading fall within the scope of investment treaty protection. Read more

by: Joshua Snead

Historically low energy prices in the United States have provided incentives to global manufacturers to expand their operations in the United States. Read more

by: Cynthia AM Stroman

A careful look at the Department of Energy's recent order granting conditional authorization of the Freeport LNG Export Project through an "environmental lens" magnifies some hints for applicants in future projects.Read more

by: Vera De Brito de Gyarfas

The Venezuelan government recently established a system to regulate the purchase of foreign currency by importers in the energy industry operating in the country.Read more

by: Anthony Long

A “Petroleum Industry Bill” has created an unprecedented level of discussion for a new piece of legislation in Nigeria. However, reaching consensus on the Bill continues to be problematic. Read more

by: Kevin Conway and Susanna Marshall

The Budget for 2013 announced initiatives designed to encourage investment in the exploitation of UK shale gas resources including: (1) a new shale gas field allowance; (2) possible tax measures to encourage E&P; and (3) an extension of the “Ring Fence Expenditure Supplement.”Read more

by: Louis-Alexis Bret

Panelists at the King & Spalding Energy Forum on Crisis Management in Houston shared insights on developing a successful crisis management strategy.Read more

by: Neil Levy, David Tewksbury, Bruce Richardson and Stephanie Lim

FERC recently issued a notice of proposed rulemaking stating that it intends to approve Version 5 of the Critical Infrastructure Protection Reliability Standards submitted by the North American Electric Reliability Corporation, which pertain to the cyber security of the bulk electric system.Read more

by: William Beard

As the number of patent infringement lawsuits brought by Non-Practicing Entities (NPEs) has increased, oil and gas companies have increasingly become targets. Read more

by: C. Brannon Robertson

Recently, a California federal court blocked drilling on certain federal land located in California’s Monterey Shale Formation play. The decision could have far-ranging effects concerning the types of fracking activities that BLM must consider when deciding to sell a lease.Read more

by: Suzanne Rab

The European Commission has approved without conditions Rosneft’s US$ 54.8 billion acquisition of TNK-BP two months after the Russian Federal Antimonopoly Service announced that it had conditionally approved the merger.Read more

by: Jeffrey H. Perry

The European Commission’s Directorate-General for Trade has issued a consultation to solicit views on a potential EU initiative for conflict minerals disclosures. Canada's Conflict Minerals Act would cover minerals from Great Lakes Region of Africa used in the course of business.Read more

by: Timothy J. Sullivan

The D.C. Circuit Court of Appeals dealt the Federal Energy Regulatory Commission a major setback in its enforcement efforts by ruling that it had encroached on the exclusive jurisdiction of the Commodity Futures Trading Commission in a market manipulation case. Yet FERC retains substantial authority over manipulation of physical markets.Read more

by: Jeffrey H. Perry

The United States has long held that its citizens and corporations have rights to explore and exploit the resources of the deep seabed and may do so whether or not the U.S. accedes to the 1982 United Nations Convention on the Law of the Sea. These rights extend to mining activities for hard minerals of the deep seabed.Read more

by: Wade Coriell

An investment arbitration tribunal in the Chevron vs. Ecuador case has issued a series of three escalating and increasingly targeted interim awards in an effort to preserve the status quo between the parties, as well as its own jurisdiction ultimately to decide the merits of Chevron’s case against a $19 billion Ecuadorian court judgment. The Chevron tribunal’s third interim measures award continues a recent trend.Read more

by: Tim Burbury, Hoda Naghdy and Khaled Dahlawi

A new “end user Build-Operate-Transfer (BOT) concession” model is being adopted by sophisticated developers on projected financed district energy schemes across the Middle East.Read more

by: Adrian Talamantes

Pemex Exploración y Producción (PEP) recently published a model contract to be used in the bidding for E&P contracts in Chicontepec, an area in the eastern coastal plains of Mexico estimated to contain 33 percent of the country’s total hydrocarbons reserves.Read more

by: Jennifer Josefson and Alexandra Kotlyachkova

The unconventional hydrocarbon resource boom that hit the U.S. and Europe had gone relatively unnoticed in Russia until the Fall of 2012 when Russia suddenly re-engaged in intensive drafting of legislation on tax incentives for tight oil.Read more

by: Daniel Rogers and Merrick White

A properly constructed take-or-pay contract provides a seller with an assured revenue stream, is a form of contract that is generally understood by lenders, and is often the most important means for a seller to secure the substantial external debt financing on limited recourse terms that energy projects often require.Read more

by: Suzanne Rab

Liberalization of the EU natural gas sector began almost two decades ago. Since then, the European Commission has used various mechanisms to facilitate market opening.Read more

by: Mark Wege and Eric English

An issue that is often overlooked, but should be considered in the context of large project transactions, is the potential insolvency of contractors and subcontractors. A bankruptcy proceeding involving a key contractor can cause headaches and costly delays, particularly if title to goods or work completed has not been transferred to a project owner.Read more

by: Bruce Richardson, Eleanor Hill, Phyllis Sumner, Alexander Haas and Pulina Whitaker

President Obama’s Executive Order on Cybersecurity and the EU’s Cybersecurity Strategy and Proposed Directive indicate greater regulatory burdens and disclosure requirements on the energy sector and electric grid operators.Read more

by: Suzanne Rab

The UK government has proposed reforms to UK competition law which could allow the removal of the “concurrent” powers of sector regulators to apply competition law.Read more

by: Anisha Sud

Modification of the Renewable Identification Number market is hoped to protect refiners and importers from civil penalties and to restore credibility to the RFS program.Read more

by: Susanna Marshall

The UK government has proposed reforms to UK competition law which could allow the removal of the “concurrent” powers of sector regulators to apply competition law.Read more

by: Lingna Yan

The Energy Development 12th Five Year Plan clarifies the guidelines, principles, goals, targets, key tasks, and policy measures for China’s energy sector’s development for the period from 2011 to 2015.Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

FERC’s decision to grant protections to non-contract rates on a discretionary basis is within the agency’s discretion under the Federal Power Act.Read more

by: Jeffrey H. Perry and Tim Engel

A joint letter from the Senate Energy and Natural Resources Committee has triggered an investigation of federal royalty payments derived from coal mined in the Powder River Basin.Read more

by: Christine Savage, Mark Wasden, Jane Cohen and Shannon Doyle Barna

Since the easing of U.S. sanctions, the Burmese government has been actively seeking investors in its economy, particularly in the energy sector. Although U.S. persons may now engage in most transactions with Burma, caution should still be exercised as restrictions against dealings with the Government of Burma and leaders of the military junta remain. Read more

by: Suzanne Rab

Since it is early in 2013 (according to the Gregorian calendar), this competition law update considers possible competition law developments in the year ahead. Rather than a “Janus” approach of rounding... Read more

by: Mark Wege and Eric English

Most people think of an oil and gas mineral “lease” as, so named, a lease. In reality, the law is far from settled as to whether a “lease” of a mineral interest is in fact a lease and/or executory contract for purposes of the United States Bankruptcy Code. Read more

by: Matt Salo, Kenneth Culotta and Monica Hwang

DOE’s Office of Fossil Energy suspended review and approval of all applications for export of LNG pending the completion of two studies on the impact of LNG exports on U.S. markets and gas prices. With those studies now complete, DOE has opened a public comment period on the pending export applications. Read more

by: Tim Burbury and Khaled Dahlawi

Correct risk allocation is critical in all infrastructure projects and is a key factor for lenders in deciding whether a project is ‘bankable.’ Developing a ‘back-to-back’ EPC contract is one way to ensure that construction, operation, and maintenance risks have been allocated and passed through correctly from the project company to the relevant sub-contractor.Read more

by: Michael Andrews

A great deal of attention has been focused on the generous tax incentives for the renewable energy industry that were added to the "fiscal cliff " legislation during the closing hours of negotiations. Those provisions have a net cost of over $12 billion, according to Congressional Research Service (CRS) estimates. It was an enormous victory for wind and solar energy developers. Left out of that debate were provisions in the tax code that are essential to the oil and gas industry.Read more

by: Christine Savage, Shannon Doyle Barna and Jane Cohen

The United States began the new year with more of the same with respect to its approach to containing Iran -- more sanctions. These new sanctions are likely to have a measurable impact on companies in various industries, but particularly in the energy sector. Below are recent developments of which energy companies should be particularly aware.Read more

by: Suzanne Rab and Alexander Kudelin

The Russian Federal Antimonopoly Service has cleared Rosneft’s acquisition of TNK-BP, subject to divestments and conduct remedies. The deal will reduce the number of major oil companies in Russia from four to three and, arguably, will make Rosneft the world’s largest public oil and gas company engaged in the production of liquid hydrocarbons.Read more

by: John Gaffney and Cedric Soule

Growing importance is being placed on the relationship between EU law and intra-EU investment arbitration in the context of newly-joining EU Member States. A recent decision in Electrabel S.A. v. the Republic of Hungary has important implications for intra-EU bilateral investment treaty and intra-EU Energy Charter Treaty claims.Read more

by: Suzanne Rab

The EU’s second-highest court upheld a fine of EUR 20 million against an acquiring company for early implementation of a merger without notifying and seeking prior approval from the European Commission.Read more

by: Suzanne Rab

The European Commission announced formal proceedings to investigate potential abuse of dominant market positions by two companies in electricity wholesale markets.Read more

by: Dominique Askew and Anthony Long

Despite the 1982 United Nations Convention of the Law of the Sea (UNCLOS) providing member states with a 200-mile offshore exclusive economic zone for exploiting maritime reserves, international waters are still being contested.Read more

by: Jane Cohen, Christine Savage and Shannon Doyle Barna

Over the past three years a series of new laws have continued to expand already restrictive U.S. sanctions programs by, among other things, expanding the extraterritorial reach of U.S. law. In particular, these new sanctions have a direct impact on the energy and petrochemical industries.Read more

by: Stephen Jones

The boom in U.S. natural gas production from shale deposits has important implications for U.S. trade policy. The rapidly increasing supply of natural gas as fracking techniques continue to improve is resulting in lower prices for consumers and increasing the competitiveness of U.S. manufacturing. At the same time, however, lower prices in the United States are causing producers to seek business in export markets.Read more

by: Daniel Crosby

The ever expanding substantive and geographic scope of international trade rules forces governments to seek out increasingly nuanced and creative modes of protection in order to disguise treaty violations. The recent trend toward unapologetic protectionism may indicate a new direction in trade policy. Read more

by: Pete Musgrove

Economic stability is one of the most important issues for a sponsor to consider when investing in a project in a foreign country, especially when dealing with the governments of developing nations in industries that are politically sensitive such as the export of energy and other natural resources. A Host Country Agreement may help contribute to the long-term success of such an energy project.Read more

by: James Vines, Stephanie Salek and Kelsey Desloover

National Environmental Policy Act (NEPA) review and related litigation impose delays and financial impacts on energy projects generally and present unique obstacles to project development.Read more

by: Harold Shaw

Recognizing that its existing rules for the oil and gas industry do not adequately address developing trends involving fracking-fluid recycling, the Texas Railroad Commission has proposed changes to rules governing the recycling of produced water and/or fracking-fluid.Read more

by: Jeffrey H. Perry

Due to a confluence of technological, economic, and legal developments, seabed resource extraction in deep waters represents an advanced front of international mineral exploration efforts and is poised to begin supplying a portion of the world’s resource needs.Read more

by: Gilbert Kaplan and Lauren Donoghue

The Aspen Institute in Washington, DC recently held an event focused on the impact of the boom in domestic natural gas production on U.S. manufacturing. A strong consensus emerged during the discussion that increased access to supplies of natural gas through shale deposits will have very positive impacts on U.S. manufacturers, as well as create jobs and drive U.S. economic growth, for years to come.Read more

by: Monica Hwang

As many U.S. LNG import terminals transition to bi-directional operations, they are likely to extend the use of port liability agreements to allocate ship-shore liability to their liquefaction operations. Read more

by: Ralph H. Johnson

FERC recently rejected claims that radon in Marcellus Shale natural gas would lead to thousands of lung cancer deaths for New York consumers, finding that “Marcellus-sourced gas will not pose a health hazard to end users.”Read more

by: Neil Levy, David Tewksbury, Bruce Richardson and Grace Su

FERC’s NOPR was prompted by concerns that the interaction of the Earth’s magnetic field and solar events can cause low frequency geomagnetically induced currents to flow along the surface of the Earth and into the bulk-power system.Read more

by: Suzanne Rab

The rules set out how the Competition Commission intends to ensure that appeals against decisions by Ofgem to modify energy licences are conducted in a fair, efficient, and timely manner.Read more

by: Harold Shaw and Jeffrey H. Perry

The 2012 Green Guides outline general principles that apply to any marketing claims involving the environmental attributes of a product, package, or service, regardless of whether it is being marketed to individuals or in a business-to-business context. Read more

by: Martha Buttry and Jeffrey H. Perry

The American Petroleum Institute and the U.S. Chamber of Commerce, among others, recently challenged a federal regulation requiring certain publicly-traded oil, gas, and mining companies to disclose payments made to governments for the development of natural resources.Read more

by: Cynthia AM Stroman

Given the significant increase in exploration and production in shale formations across the United States, whether air emissions from oil and gas operations are federally-regulated major sources or state-regulated minor sources is of significant interest.Read more

by: Susanna Marshall

A summary of the present investment environment for oil and gas assets in the UK North Sea.Read more

by: Suzanne Rab

The EU General Court recently decided in favor of a Greek state-owned power company appealing a European Commission decision opposing the utility’s virtual monopoly rights over lignite or “brown coal” because the EC failed to prove actual or potential abuse of a dominant position.Read more

by: Suzanne Rab

The Competition Commission of India’s investigation against Coal India Limited alleging unfair trade practices and abuse of dominant position further illustrates the increasingly complaints-led nature of competition probes in India.Read more

by: James Berger and Charlene Sun

The Second Circuit recently clarified the scope of the so-called “competence-competence” doctrine and affirmed that where a party agrees to arbitrate under rules that authorize an arbitration tribunal to rule upon its own jurisdiction, a party who subsequently opposes confirmation of an award will be foreclosed from obtaining independent judicial review of the tribunal’s arbitrability determinations.Read more

by: Jonathan Marsh

The Ninth Circuit’s holding in Kivalina forecloses the use of “federal common law” to create a cause of action where none previously existed. The decision affirmed that the Clean Air Act displaces an Alaska Native village’s claim for money damages against select oil, coal, and utility companies for historic emissions of significant quantities of greenhouse gases under a theory of federal common law nuisance.Read more

by: Marcus Young

Given that international joint ventures are intended to benefit from synergies of co-operation and mutuality, what are the problems that frequently arise when negotiating and operating in emerging markets?Read more

by: Neil Levy, David Tewksbury and Grace Su

FERC recently issued an order directing the firm to show cause why it should not be found to have violated FERC’s Market Behavior Rules, and why its authorization to sell electric energy, capacity, and ancillary services at market-based rates should not be suspended in connection with allegations of submission of misleading information and omission of material information. Read more

by: Louis-Alexis Bret

Extra heavy crude is so dense and viscous as to require special techniques and installations to be economically produced, transported, and refined. These characteristics bestow unique vulnerabilities to disputes and underline the importance of ensuring that a party be able to navigate through potential disputes under the best conditions possible.Read more

by: Michael Biles, Adam Swick and Paul Bessette

Topics covered in this second installment include solar equipment manufacturers, Chinese energy companies, and recently filed class actions.Read more

by: Thomas Gutting

On March 2, 2012, the Texas Supreme Court issued a new opinion that has reinforced and modified its landmark 2011 Denbury decision, which has particularly significant implications for the pipeline industry in Texas. At issue is the eminent domain power of private entities.Read more

by: Suzanne Rab

The European Commission is seeking comments on commitments offered by Czech electricity incumbent operator, CEZ, to address allegations that it may have infringed EU antitrust rules by restricting market entry on the Czech electricity market.Read more

by: Patricia Barmeyer

During 2012, the United States Environmental Protection Agency (“EPA”) issued multiple rules affecting the U.S. energy sector. Two of these rules, however, have directly stymied energy developers’ efforts to construct new coal-fired generating facilities. The two rules reflect an apparent decision by this Administration to shift the energy sector towards natural gas-fired generation and away from coal, and have the potential to dictate the composition of the Nation’s generation fleet for decades to come.Read more

by: Allison Kassir and Thomas Spulak

Before leaving for the August recess, a bipartisan group of 44 House Members wrote to Department of Energy Secretary Steven Chu, urging him to expedite the approval process for pending applications to export liquefied natural gas (LNG).Read more

by: Vera De Brito de Gyarfas and Alberto Ravell

Venezuela’s recent denunciation of the multilateral treaty will have no impact on ongoing arbitrations that were pending before the denunciation became effective but is expected to have a great impact on new investment decisions.Read more

by: Jeffrey H. Perry

New rules should concern companies that are required to file annual reports with the SEC and that either (1) engage in the commercial development of oil, natural gas, or minerals or (2) use so-called “conflict minerals.” In a departure from the proposed rules, companies subject to these rules must file their disclosures in a new specialized disclosure report.Read more

by: Suzanne Rab

In a case involving an alleged pact to carve up natural gas markets, the EU’s second-highest court disagreed with the European Commission’s assessment of fines.Read more

by: Thomas Spulak and Allison Kassir

Topics include: discussions regarding a carbon tax; continued pressure for a moratorium on the export of natural gas; and the Department of Energy’s loan guarantee programs.Read more

by: John Gaffney

Following the accession of former socialist states to the EU, almost 400 bilateral investment treaties became treaties between EU Member States. Recent cases call into question the extent of the substantive and procedural protections afforded by these intra-EU BITs.Read more

by: Nina Howell

Oil and gas laws of nations bounding the Levant Basin are evolving to address the challenges presented by a region now perceived as a promising new frontier for natural gas.Read more

by: Paul Bessette, Michael Biles and Adam Swick

Part One of this two-part article examines oil and gas reserve calculation and reporting issues, corporate safety policies, and fracking-related disclosures.Read more

by: Kenneth Culotta, Jeffrey H. Perry and Tim Engel

OGM companies should ensure industry has a seat at the table to advocate their interests in the multi-stakeholder process.Read more

by: Hywel Jones

The UK Court of Appeal recently established that a parent company can be held directly culpable for an act or omission of its subsidiary should it be deemed to have assumed a duty of care on the basis of common law negligence. Although this is not technically piercing the corporate veil, the effect is certainly the same.Read more

by: Crayton L. Bell and S. Kiran Lingam

Chinese investment in the U.S. energy sector has the potential to provide tremendous benefits for both America and China. Given the current political climate in America, Chinese investors would do well to highlight the positive impact that their transactions will have on U.S. job growth as they navigate the regulatory process.Read more

by: Suzanne Rab

Historically, consolidation in the water industry has been challenging and mergers between the larger water companies have been prohibited or subject to conditions. While the regulatory regimes for the energy and water sectors are similar, the water sector has several specific features.Read more

by: Suzanne Rab

A recent decision by Spain’s National Competition Commission highlights the increasing competition law scrutiny of the energy sector in the European Union and the delicate balance between general competition law enforcement and sector-specific regulation.Read more

by: Thomas Spulak and Allison Kassir

Ensuring energy security for operations and installations is a top priority for the U.S. Department of Defense, the largest energy consumer in the country. In response to various concerns, the Department of Defense has set an ambitious goal of obtaining 25 percent of its energy from renewable sources by 2025.Read more

by: Keri Smith

Courts have long been hesitant to find work of certain environmental consultants to be protected by attorney-client privilege unless it is clear that the consultant was retained to provide legal advice. Read more

by: Philip Weems and Matt Salo

International energy companies often find the most attractive oil and gas prospects to be located in countries where the risk of expropriation looms on the horizon. Given the right political and social atmosphere and the rising value of hydrocarbons, any of these nations could become the next expropriator.Read more

by: Neil Levy, David Tewksbury, Stephanie Lim and Grace Su

FERC’s Order No. 764 is intended to remove barriers to the integration of variable energy resources (such as wind and solar) into the electric grid. Because these resources represent an increasing percentage of generation capacity, FERC concluded that it must take steps to prevent public utility transmission providers from treating these customers in an unduly discriminatory manner.Read more

by: Suzanne Rab

In our August 2011 newsletter, we reported on the status of efforts to implement a regulatory framework for promoting integration of, and increased competition in, EU natural gas and electricity markets. Now, the European Commission has sent eight “reasoned opinions” to five Member States following their failure to implement the new rules.Read more

by: Hywel Jones

Most commentators are of the view that the more likely outcome is that one or more States will withdraw from the Eurozone, abandon the euro and create a new domestic currency. If you are a party to a contract with a company in the Eurozone, where payments under the contract are to be made in euro, this article should be of interest.Read more

by: Susanna Marshall

In a joint letter, six major renewable energy developers expressed their concern that the proposed electricity market reforms will not be capable of supporting major renewable energy financing.Read more

by: Jennifer Price

Having arbitration language in one’s contract does little good if the arbitration provisions are not effective. This note sets out the basics for an effective, enforceable, and workable arbitration agreement.Read more

by: Cynthia AM Stroman and Elizabeth King

The U.S. Environmental Protection Agency requires certain companies to provide periodic updates to the national inventory of chemical substances. The new reporting requirements for 2012 suggest that more gas processing sites will be subject to reporting than in previous cycles.Read more

by: Tim Engel

Soon after the Deepwater Horizon oil spill in the Gulf of Mexico, environmental groups launched wide-ranging challenges to all phases of offshore oil and gas exploration and development. In Defenders of Wildlife v. Bureau of Ocean Energy Management, Regulation and Enforcement, the court held that environmental reviews of the specific impacts of the Deepwater Horizon spill were not required before BOEM issued new leases in the Gulf. In Gulf Restoration Network, Inc. v. Salazar, the Fifth Circuit dismissed a number of consolidated challenges under NEPA on grounds that the environmental groups had failed to participate in the underlying administrative proceedings as required by OCSLA.Read more

by: Nina Howell

Political and economic stability are essential in high-cost, long-term energy projects. This article provides an overview of political risk mitigation instruments to support investment in emerging and pre-emerging markets.Read more

by: Suzanne Rab

In April, Pakistan’s Competition Commission (CCP) granted a manufacturer total immunity from fines for its cooperation in a cartel investigation relating to bid rigging in supplies to power companies. This case is the first time that the fledgling competition authority has received and granted a request for leniency.Read more

by: Suzanne Rab

The Competition Commission of India (CCI) has fined ten explosives companies for rigging bids put out by Coal India Limited. The fines show the CCI strenuously asserting its cartel enforcement jurisdiction. At the same time, its reasoning as to the finding of an “agreement” and the level and quality of the evidence relied on, have not been beyond question.Read more

by: Hywel Jones

The legal principles governing the withholding of consent were developed by English courts in the context of landlord and tenant disputes. They had not been applied to energy contracts until relatively recently. Read more

by: Philip Weems and Denis Fallon

If countries share a common hydrocarbon reservoir across an established border, and are unable to agree on a definitive unitization agreement after making reasonable efforts to cooperate, international law does not require them to unitize the reservoir. Most countries, however, prefer a cooperative approach for economic and political reasons, not necessarily legal reasons. Read more

by: H. Victor Thomas

Two recent decisions apply federal pleading requirements to complaints alleging contamination from hydraulic fracturing, but with very different results.Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

FERC recently granted authorizations to site, construct, and operate facilities to export LNG at Sabine Pass LNG’s existing import terminal in Louisiana. This represents the first time that FERC has authorized a project that would export LNG from domestic production. Concurrently, FERC issued an order vacating the authorization previously granted to Jordan Cove for an LNG import terminal in Oregon based on its understanding that the company is instead planning to use the proposed facilities to export natural gas.Read more

by: Drew Bell, Christopher Benson and Cynthia AM Stroman

In Sackett v. EPA, the Supreme Court unanimously held that landowners may bring a civil action under the Administrative Procedure Act (“APA”) to challenge an EPA compliance order issued under the Clean Water Act (“CWA”). Sackett may have broader implications for regulated parties, including energy companies in two areas holding promise for extending Sackett’s reasoning: (1) challenges to compliance orders issued under environmental statutes other than the CWA; and (2) challenges to the substance of EPA compliance orders.Read more

by: Jennifer Josefson

In February 2012, AIPN published the 4th version of its model Joint Operating Agreement (JOA). The revisions include changes and additions to provisions related to (i) Operator rights and duties, (ii) limitations on Operator liability, (iii) removal and replacement of Operators, (iv) revisions to Work Programs, Budgets, and AFEs, (v) decommissioning, (vi) the consequences of Exclusive Operations, (vii) default, (viii) conflicts of interest, and (ix) Bribery compliance.Read more

by: Suzanne Rab

The Competition Commission of India (CCI) has sent a clear signal that cartel-like behavior will not be tolerated and significant fines await violators of the prohibition on restrictive agreements.Read more

by: Suzanne Rab

The European Commission announced fines totalling EUR 2.5 million against two Czech energy companies for obstructing an EU competition inspection.Read more

by: Tim Burbury

Under a split engineering, procurement, and construction (EPC) structure, a company’s legal and contractual positions can be protected to the same extent that they would be under a single turnkey EPC structure, while at the same time ensuring that taxation and other commercial benefits obtained by splitting the works are not jeopardized in the process. Read more

by: Nina Howell

While it is widely predicted that shale gas will play an important part in Europe’s future energy mix, even with the most optimistic projections, shale gas will not substantially impact European gas production for almost a decade.Read more

by: Hywel Jones

In a recent decision, the UK Court of Appeal confirmed that an enforceable contact and guarantee can be created under English law by a series of email exchanges.Read more

by: Drew Bell and Lynn Kerr McKay

In the wake of preliminary findings that “strongly indicate” a Class II injection well induced tremors, including an earthquake measuring 4.0 on the Richter scale, Ohio proposed regulations to address concerns about induced seismicity from disposal wells. Read more

by: Scott Greer and Robert Garner

The right performance security, in connection with a well-drafted construction agreement, heavily strengthens an owner’s position by reducing risks associated with contractor default and providing additional remedies should a default occur.Read more

by: Ned Crady and Matt Salo

FERC stated that “going forward, we will apply our open season policies to all new construction projects, including market-based rate storage projects, that create capacity.”Read more

by: Brian Meiners

In a recently-settled civil antitrust case, the DOJ sent a clear message to energy firms that they should expect close scrutiny of their conduct in bidding for government leases for development rights.Read more

by: Alberto Ravell

The Chávez administration continues to adopt measures aimed at dismantling the apertura petrolera initiatives that were instituted during the 1990s in order to attract foreign investors to the Venezuelan oil industry.Read more

by: Philip Weems and Matt Salo

With numerous technological, commercial, and geopolitical factors influencing a global LNG market in flux, the LNG industry surely will grapple with these top ten issues in 2012.Read more

by: C. Brannon Robertson

The Texas Supreme Court’s latest decision on the statute of limitations and fraudulent concealment exception favors operators over royalty owners, but the decision creates potential pitfalls for oil & gas companies as well.Read more

by: Thomas Spulak and Allison Kassir

Some in Congress question whether attempts to convert LNG import terminals to export terminals may result in negative economic and environmental consequences to the U.S. Read more

by: Hywel Jones

With M&A activity in the energy sector still buoyant, particularly in developing economies, the need for effective and risk sensitive diligence into potential bribery and corruption by target entities is becoming more important than ever.Read more

by: Neil Levy, David Tewksbury and Stephanie Lim

An electric generator requesting an extension under EPA’s policy memorandum would be required to file the same information with FERC for review. FERC staff would then submit written comments on each request to the EPA.Read more

by: Stephanie Salek, Jonathan Henry and Kelsey Desloover

Proposed changes to BSEE’s safety and environmental management systems (SEMS) rule would eliminate program audits by operators’ employees and impose stringent requirements on who may qualify as an independent third-party auditor.Read more

by: Suzanne Rab

A comparative review of recent EU competition law investigations in the water sector and their implications for investment in utilities.Read more

by: John Bowman

This short article highlights a few of the many and varied tasks that form part of in-house energy counsel’s job description when a dispute goes to international arbitration.Read more

by: Drew Bell and Lynn Kerr McKay

Recent seismic events associated with the disposal of hydraulic fracturing wastewater may invite a regulatory response.Read more

by: Kevin Conway and Nina Howell

Decommissioning liability is currently a key consideration for oil and gas companies operating in the UK North Sea. Also, in December, the UK Government published the draft Finance Bill 2012 which introduces a cap to limit the relief on decommissioning expenditures for Supplementary Charge purposes.Read more

by: Ronald Scott Chalmers

Certain key considerations regarding choice of English law for cross-border construction contracts.Read more

by: Jeffrey H. Perry

Delays by the SEC in promulgating final rules pertaining to Section 1502 of the Dodd-Frank Act further continues to fuel speculation as to the compliance burdens the rules are likely to impose on affected companies, and when.Read more

by: Jeffrey H. Perry

Section 1504 of the Dodd-Frank Act requires companies that file annual reports with the SEC to disclose information regarding payments to either the U.S. government or a foreign government for the purpose of commercial development of oil, natural gas, or minerals. [1] The SEC proposed rules to implement these provisions and the comment period was scheduled to close January 31, 2011. (Public interest in the proposed rules has been so great that comment period was extended.) No final rules have been issued. Read more

by: C. Brannon Robertson

In Edwards Aquifer Authority v. Day, the Texas Supreme Court held that Texas property owners have an actual ownership interest in the groundwater beneath their property. While this holding does not directly address oil & gas issues, it may well affect the industry because petroleum production activities are frequently water-intensive.Read more

by: Matt Salo

Although it has had one of the fastest growing economies in Latin America over the past twenty years, Chile is severely limited with respect to domestic conventional energy resources.Read more

by: Jamie Miller and C. Brannon Robertson

This term, the U.S. Supreme Court is due to decide whether the EPA can seek civil penalties for violations of administrative orders without having to prove a statute, regulation, or law has been violated. Read more

by: Drew Bell and Lynn Kerr McKay

Although New York has been hesitant to develop its region of the Marcellus Shale, work proceeds on regulations that will permit the use of techniques required to produce natural gas from the formation.Read more

by: Thomas Spulak and Allison Kassir

Energy tax incentives were noticeably absent from deal struck by Congress to preserve several provisions that were set to expire on December 31st.Read more

by: Crayton L. Bell and S. Kiran Lingam

Buyer concerns are driving an increase in the use of deferred compensation structures in M&A transactions involving renewable energy/greentech companies. Read more

by: Monica Hwang and Matt Salo

The discovery of significant shale gas reserves and the development of the technology necessary to exploit them have solidified the United States’ role as a potential major LNG exporter.Read more

by: Vera De Brito de Gyarfas

U.S. sanctions on Venezuela’s national oil company have not produced an immediate visible impact on U.S. companies with business related to Venezuela. Read more

by: Jennifer Josefson and Alexandra Kotlyachkova

Amendments to Russia’s Strategic Investment Law take effect in mid-December and should ease some of the current restrictions on foreign investment in the oil and gas superpower.Read more

by: Rizwan Kanji and Lidia Kamleh

Given the prevailing economic climate, project sponsors should weigh a number of factors before incorporating project bonds into a project’s capital funding structure.Read more

by: Nina Howell, Susanna Marshall and Khaled Dahlawi

The development of potential shale gas opportunities in the UK continues to receive increasing interest from energy companies looking to diversify. Read more

by: Kendall Carter

Four principal areas of Brazil’s carefully-planned energy policy informed recent discussions between President Obama and President Rousseff.Read more

by: Lynn Kerr McKay and Drew Bell

On November 3, EPA released its final Plan to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources. The study will be EPA’s most extensive review of hydraulic fracturing to date.Read more

by: Louis-Alexis Bret

Energy traders’ moves into acquisition, ownership, and operation of large-scale assets have altered the landscape of energy trading disputes.Read more

by: Suzanne Rab

The European Commission announced it conducted unannounced inspections - so-called “dawn raids” - at the premises of companies active in the supply, transmission, and storage of natural gas in ten EU Member States, mainly in Central and Eastern Europe.Read more

by: C. Brannon Robertson

Texas confers upon private pipeline developers the power of eminent domain, so long as pipeline is designated a “common carrier” available for “public use.” Historically, whether or not a pipeline company is a “common carrier” has largely been for the company itself to decide. A recent Texas Supreme Court decision—Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC—may change this historic rule.Read more

by: Tim Burbury and Hoda Naghdy

Master Developers of a steady stream of greenfield utility projects coming online in the Middle East are taking advantage of opportunities to ‘monetise’ their utility assets.Read more

by: Lynn Kerr McKay and Cynthia AM Stroman

This article reviews recent key environmental actions in Pennsylvania addressing concerns about the speed of development, air emissions, and state regulatory oversight of this gas play.Read more

by: Thomas Spulak

TransCanada's Keystone Pipeline Appears to Be Headed Toward Approval by the Obama Administration. Will Congressional Opponents Be Able to Reverse This Outcome?Read more

by: David Tewksbury and Grace Su

On October 13, 2011, in Montana Consumer Counsel v. FERC, the United States Court of Appeals for the Ninth Circuit re-affirmed the lawfulness of the Commission’s market-based rate approach under the Federal Power Act.Read more

by: Crayton L. Bell

Kinder Morgan, Inc.’s $38 billion acquisition of El Paso Corporation reflects a key move toward the consolidation of the natural gas pipeline business in the U.S. It appears likely to trigger more M&A activity in the sector.Read more

by: Philip Weems and David I. Lavery

The first fifty years of LNG has seen a remarkable evolution. In this final part we look at current “realities” facing industry and consider how the industry will evolve over the next twenty years.Read more

by: Theodore Hester, Kenneth Culotta, Margaret O'Neil and Daniel Donovan

The Congressional investigation of Solyndra, Inc., the California solar panel manufacturer that received a $535 million loan guarantee and recently filed for bankruptcy, is a gathering threat to the entire Department of Energy (DOE) Loan Guarantee Program.Read more

by: Cynthia AM Stroman and Harold Shaw

The Cross-State Air Pollution Control Rule, which requires “upwind” states to reduce power plant SO2 and NOx emissions that add to fine particle and ground-level ozone pollution in “downwind” states, has raised serious economic and political issues.Read more

by: Nina Howell and Khaled Dahlawi

On 7 September 2011, the EU’s Energy Commissioner Guenther Oettinger announced plans that would require member states to share information about proposed energy deals with nations outside of the EU zone. Read more

by: Kenneth Culotta and Jeffrey H. Perry

President Obama boldly declared that the United States will implement the disclosure provisions to ensure that taxpayers are receiving every dollar due from the extraction of U.S. natural resources. OGM companies should be prepared to participate in the multi-stakeholder process that will mark the government’s implementation of the EITI standards.Read more

by: Nina Howell and Khaled Dahlawi

Despite having one of the strongest safety and environmental regimes in the world, following the incident in the Gulf of Mexico the UK was forced to review its own regulatory regime for deepwater drilling on the UK continental shelf.Read more

by: Jeffrey H. Perry

The U.S. Securities and Exchange Commission announced that it will host a public roundtable on October 18, 2011 to discuss the agency’s required rulemaking under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection ActRead more

by: David Tewksbury, Bruce Richardson and Grace Su

Amended regulations ensuring efficient and cost-effective investment decisions are necessary because changes in generation mix are driving the demand for additional investment in transmission.Read more

by: Thomas Spulak and Allison Kassir

The sheer amount of deficit reduction in the debt deal reached by President Obama and congressional leaders will have a major impact on federal support for energy spending.Read more

by: Tim Engel and Jeffrey H. Perry

In a recent comment to the SEC, ONRR described Dodd-Frank’s oil, gas, and minerals payment disclosure provision as potentially “very useful” to the agency’s efforts to check that oil, gas, and mining companies are reporting revenues “correctly” to the U.S. federal government.Read more

by: Crayton L. Bell and Shawna Enright

The retail electric power market is in the midst of a consolidation that is expected to accelerate as some regulated utilities and large independent retail suppliers continue to seek ways to expand their retail customer bases, and smaller independent providers seek capital and other resources for continued growth.Read more

by: C. Brannon Robertson and Jamie Miller

Since the United States Supreme Court held that the Federal Arbitration Act set out the exclusive grounds on which a court could vacate or modify an arbitration award governed by the FAA, energy companies utilizing arbitration clauses have sought alternate routes to broaden their rights to seek appellate review. According to the Texas Supreme Court, the Texas Arbitration Act provides just such a route.Read more

by: Alissa B. Rubin

Key new developments in In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010.Read more

by: Thomas Spulak and Allison Kassir

As negotiations over the federal debt limit illustrate the difficulty of reaching bipartisan agreement in Washington on any issue of significance, the issue of electric vehicle development may be one of the few areas where it could be possible for the congressional majority and minority to find common ground. Read more

by: Kevin Conway and Khaled Dahlawi

On 5 July 2011, nearly four months after imposing a £2 billion windfall tax on oil and gas producers subject to the UK's North Sea oil fiscal regime the UK Government has bowed to industry pressure and granted a limited reprieve to the producers operating in the UK's North Sea.Read more

by: Kenneth Culotta, Jeffrey H. Perry and Tim Engel

The U.S. State Department has issued a statement encouraging the conduct of, and outlining a framework for, conflict minerals-related due diligence.Read more

by: Suzanne Rab, Nina Howell and Khaled Dahlawi

A revised regulatory framework for promoting integration of, and increased competition in, EU natural gas and electricity markets awaits national legislation by each of the 27 EU Member States required for the Third Energy Package to take full effect.Read more

by: Emily M. Leung and Matt Salo

Energy M&A transactions present opportunities for buyers and sellers to negotiate Representations and Warranties clauses that are targeted to the type of asset being acquired.Read more

by: James Vines, Crayton L. Bell and William Clarkson

In July, ExxonMobil's Silvertip pipeline ruptured along the Yellowstone River in Montana, releasing an estimated 1,000 barrels of crude oil. The event occurred as the U.S. State Department decides whether to authorize an Alberta to Gulf oil pipeline and presents additional challenges for Keystone XL's proponents.Read more

by: Jeffrey H. Perry

International efforts to alter royalty regimes in developing and resource-rich nations combined with corporate social responsibility (CSR) efforts can pay dividends in investment sustainability.Read more

by: Thomas Childs

If a host State alters a settled tax regime in a way that negatively impacts economics of an energy project, a bilateral investment treaty could offer an affected investor certain protections.Read more

by: Scott Greer, Angelica G. Alfaro and Heleina Formoso

Tips on how to negotiate and draft an enforceable liquidated damage provision in construction contracts.Read more

by: Crayton L. Bell

Private equity participation in U.S. shale plays has increased as the economy recovers and lease-owners are needing development capital to retain their interests.Read more

by: Nina Howell

The UK's Bribery Act significantly strengthens the UK's position on bribery and corruption. Commentators believe that oil and gas is the most likely industry sector to be investigated.Read more

by: Thomas Gutting and David L. Schwan

On July 9, King & Spalding hosted its quarterly Energy Forum, focusing on the rapidly evolving field of shale energy production. Hydraulic fracturing technology has opened enormous new shale energy resources, creating a multitude of opportunities and potential risks as industry and regulators adapt to the evolving shale gas industry.Read more

by: Jeffrey Telep and Jasper Wauters

Government support plays a crucial role in the development of renewable energy sources, including wind and solar. Recently, two such government support programs were challenged before the World Trade Organization (“WTO”) as being discriminatory and in violation of the rules of the WTO Subsidies Agreement.Read more

by: David Tewksbury and Stephanie Lim

FERC's order implementing new demand response regulations in wholesale energy is generating worries among many in the industry who feel it gives demand response resources preferential treatment.Read more

by: Tim Engel

The U.S. Department of the Interior's Office of Natural Resources Revenue (ONRR) is requesting public comments through July 28, 2011, on potentially sweeping changes in the way oil and gas is valued for royalty purposes.Read more

by: Tim Engel and Timothy J. Sullivan

Dodd-Frank's amendment of the Commodities Exchange Act has spurred efforts by the CFTC to aggressively expand its view of jurisdiction over alleged market manipulation.Read more

by: C. Brannon Robertson and Jeremiah Anderson

Larger companies or private equity groups often buy smaller companies by offering minority interests to owners. Buyers need to be wary of potential problems, especially when the new majority owner later decides to sell the purchased company.Read more

by: Khaled Dahlawi and Nina Howell

The UK Government is dependent on continued investment from oil companies to ensure production from remaining North Sea reserves. That investment is threatened by an unexpected tax increase on North Sea production in the government’s 2011 Budget.Read more

by: Suzanne Rab

UK energy regulator, Ofgem, has announced a series of reforms to force open electricity and gas markets. They represent the government’s most significant attempts yet to encourage competition in these sectors.Read more

by: Susanna Marshall

UK shale gas industry receives a boost after the Energy & Climate Change Committee concludes a moratorium on fracking is unnecessary and finds no evidence that the process poses a risk to groundwater.Read more

by: Tim Burbury

Public-Private-Partnerships have the potential to become the new standard for “District Energy” (centralized heating and cooling plant) deals in the Middle East. PPPs differ from traditional models in that a private sector partner undertakes to finance system expenses.Read more

by: Philip Weems and David I. Lavery

The LNG trade has evolved over past years to become a crucial segment to many economies.Read more

by: Cynthia AM Stroman

Oil and gas drilling in the United States has used hydraulic fracturing techniques for more than 60 years. The Society of Petroleum Engineers estimates that more than one million fracturing procedures... Read more

by: Elizabeth Silbert and Caline Mouawad

Various forms of interim relief issued by tribunals in recent years suggest that claimants in energy-related arbitrations should strongly consider whether their needs would be met by a well-developed interim measures request.Read more

by: Philip Weems

The Asia-Pacific region is one of the most active gas exploration, production and distribution markets in the world. Rapid economic growth in the region, particularly in China, has led to an increased demand for energy and has spurred the hunt for additional sources of gas supply. Recent technological advances are making certain conventional and unconventional gas reserves in the region economically viable for the first time, and visionary Asian governments are taking an active role in developing the infrastructure required to produce, distribute, market, import and use these resources. Read more

by: Philip Weems

In this article, originally published in Pipeline Dubai in 2010, K&S attorneys discuss the future of LNG supply to world markets. Can Qatar retain its crown, or will new projects in Australia knock it off the supplier’s top spot?Read more

by: Philip Weems

After years in the doldrums, LNG transportation is on the rise. LNG importers and exporters acted quickly in recent years to secure rights to the few remaining available LNG tankers. Although some LNG sellers and buyers elected to acquire ownership of LNG vessels, often companies in need of LNG transport chose to enter into long-term time charters with a shipowner.Read more