The Nickel Report

On August 22, 2023, the Department of the Interior (“DOI”) announced that the Bureau of Safety and Environmental Enforcement (“BSEE”) has issued the final Well Control Rule for drilling, workover, completion and decommissioning operations.  This final rule clarifies blowout preventer (“BOP”) system requirements, modifies certain specific BOP equipment capability requirements, and builds upon the regulatory reforms that were originally implemented by the DOI after 2010.  The BSEE is setting an effective date of 60 days following publication of the final rule, by which time oil and gas operators in the federally regulated outer Continental Shelf will be required to comply with most of the final rule’s provisions. Operators have a one-year deferred compliance date following publication of the final rule to equip subsea BOP stacks with the remotely operated vehicle intervention capability to both open and close each shear ram, ram locks, and one pipe ram as required by 30 CFR § 250.734(a)(4).  The final rule:

The US Environmental Protection Agency (“EPA”) recently finalized its long-anticipated National Enforcement and Compliance Initiatives (“NECIs”) for fiscal years 2024 through 2027, naming six “priority areas” on which EPA’s Office of Enforcement and Compliance Assurance (“OECA”) will focus its enforcement efforts and direct additional resources. In his first significant action since being confirmed by the Senate on July 20, 2023, OECA Assistant Administrator David Uhlmann issued a memorandum on August 17, 2023 to the EPA Regional Administrators, advising of the six NECIs. He stated that over the next four years EPA will “address the most significant public health and environmental challenges, protect vulnerable and overburdened communities, and promote greater compliance with our environmental laws.”

As states across the country develop laws addressing per- and polyfluoroalkyl substances (PFAS), a patchwork of requirements has begun to emerge, creating challenges for those who manufacture, distribute, and sell products around the country. In 2023, over 200 bills were introduced addressing PFAS, including restrictions for PFAS in products. This trend is expected to continue.

The Greenhouse Gas (GHG) Protocol Corporate Standard and related guidance are widely accepted as leading sources for companies to use in quantifying and reporting their GHG emissions. Companies report GHG emissions for a number of reasons (both legally mandated and voluntary) and in a number of contexts. Accurate accounting and reporting is critical because inaccuracies in emissions reporting can potentially expose the reporting entity to several types of legal liability, as evidenced by the recent proliferation of lawsuits alleging “greenwashing” claims and increasing regulatory scrutiny in this area.

On August 14, EPA published its proposed modifications to regulations establishing the requirements for a state or tribe to assume the Clean Water Act (CWA) section 404 permit program, including necessary state program elements, EPA responsibilities (e.g., approval and oversight of assumed programs), and requirements for review, modification, and withdrawal of state programs.  88 Fed. Reg. 55,276 (Aug. 14, 2023).  The proposal provides helpful clarifications but does not resolve a number of key issues faced by states considering assumption and by permittees in those States.