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US Department of Energy reverses LNG ban following Trump’s executive orders

On 20 January, US President Donald Trump issued an executive order lifting the pause on issuing LNG export permits for trade with countries that do not have a free trade agreement with the United States. The pause had been implemented by President Trump’s predecessor, Joe Biden, in January 2024. 

Under the executive order, the US Department of Energy (DOE) was directed to “restart reviews of applications for approvals of LNG exports as expeditiously as possible.” The order also supports the approval of an application to construct an offshore, deepwater LNG project in the US Gulf of Mexico, which is pending consideration by the US Maritime Administration. 

A separate executive order prioritized the development of LNG in Alaska, including the sale of LNG from Alaska to other parts of the United States. Selling Alaska’s natural gas to other parts of the US would likely require LNG tankers compliant with the Jones Act (i.e., tankers built in the US), which do not exist presently. 

To export gas from the US, a company must obtain permits from the DOE and the US Federal Energy Regulatory Commission, a process outlined by the Natural Gas Act (NGA). If the shipment is going to a country that does not have a free trade agreement with the US, then the DOE must make a determination whether the export is in the public interest prior to granting or denying the permit. This is the part of the process that had been affected by the pause – as Congress did not define the “public interest” in the NGA, the DOE has discretion in making and adjusting public interest determinations.

Click here to read a Congressional Research report on the lifting of the LNG export ban.

BOEM rescinds notice on Expanded Rice’s Whale Area

On 20 February, the US Bureau of Ocean Energy Management (BOEM) rescinded its Notice to Lessee and Operators (NTL) 2023-G01, which had placed various restrictions on oil and gas activities in the US Gulf of Mexico (GOM) as a means to protect the Rice’s whale, an endangered species. 

The previous restrictions, which were issued in 2023, said that all oil and gas activity in what it defined as the “Expanded Rice’s Whale Area” within the GOM should be conducted with five recommended measures:

• using trained visual observers to monitor “vessel strike avoidance”;
• documenting and retaining records regarding any transit;
• observing a year-round speed restriction in the area; 
• maintaining a defined minimum separation distance from Rice’s whales; and 
• including a functioning Automatic Identification System onboard all vessels of 65 ft or greater that are associated with oil and gas activity.

In a statement issued on 21 February, National Ocean Industries Association President Erik Milito said the following: “BOEM and NMFS (US National Marine Fisheries Service) are following a more established regulatory process as they update the Biological Opinion governing (GOM) oil and gas permitting and work on the Rice’s whale critical habitat designation, both expected later this year. Unlike the NTL, this process allows for greater transparency, stakeholder input, and adherence to established regulatory norms.”

EPA approval paves way for drilling of carbon capture, storage wells in West Virginia 

The US Environmental Protection Agency (EPA) signed a final rule approving the state of West Virginia’s request to regulate the injection of carbon dioxide into deep rock formations. The rule grants the state primacy for Class VI wells under the Safe Drinking Water Act, officially allowing for carbon capture and storage (CCS) wells to be drilled there.

West Virginia is the fourth state to receive clearance for Class VI wells, following North Dakota, Wyoming and Louisiana. The EPA regulates wells used for underground injection of carbon dioxide, known as Class VI wells. The Safe Drinking Water Act prohibits underground injection of fluids without a permit, including the underground injection of carbon dioxide for geologic sequestration. The EPA can delegate primary enforcement authority for underground injection control programs to states that meet minimum requirements.

A state must demonstrate that it has the legal authorities and processes in place to administer the Class VI program. A memorandum of agreement between a state with primacy and the EPA, submitted along with other required documents, typically serves as the foundation for the state’s responsibilities and commitments in administering the Class VI program.

Colorado rules target gas-powered pneumatic devices

On 21 February, the Colorado Air Quality Control Commission announced that it had approved measures to phase out the use of natural gas-powered pneumatic devices at oil and gas facilities in the state. Operators can use natural gas-powered pneumatic devices that are self-contained or routed to process (i.e., do not emit emissions into the atmosphere) or replace them with pneumatic devices that run on electricity, nitrogen or compressed air. 

Operators must achieve a 25% phase-out by May 2026, 50% by May 2027, 75% by May 2028 and 100% by March 2029. 

In addition, operators with facilities located in areas within the state that do not meet US federal health standards for ground-level ozone pollution must achieve a 50% phase-out by May 2026 and a 100% phase-out by May 2027.

The commission cited reductions in methane emissions and other air pollution as the goal of these phase-outs.