American Oil and Gas Reporter - June 2018 - 20

IndustryDigest
rulings constitute legal overreach.
San Francisco and Oakland assert
that Exxon and four other companies
should pay for infrastructure projects
such as sea walls to mitigate rising
ocean levels and other climate change
impacts because they broke the law by
producing fossil fuels and promoting
their use.
"But not law enacted by a
legislature, promulgated by a
government agency, or negotiated by a
president. Rather, the law plaintiffs
invoke is common law," the attorneys
general say, with the cities calling the
corporations' actions a "public
nuisance" that the federal judiciary
should stop.
The attorneys general of West
Virginia, Georgia, South Carolina,
Indiana, Arkansas, Alabama, Oklahoma,
Texas, Louisiana, Kansas, Nebraska,
Colorado, Wyoming, Utah and
Wisconsin filed their lawsuit in the U.S.
District Court of the Northern District
of California, San Francisco Division.
According to media reports, the
attorneys general contend if the cities'
lawsuits are allowed to proceed, that
will lead other cities to file their own
lawsuits, with different outcomes likely
to result. Their filing states, "The
questions of global climate change and
its effects-and the proper balance of
regulatory and commercial activity-are
political questions not suited for
resolution by any court. Indeed, such
judicial resolution would trample
Congress's carefully calibrated process
of cooperative federalism where states
work in tandem with the Environmental
Protection Agency to administer the
federal Clean Air Act."
Allowing federal courts to use public
nuisance theories would upset federal
and state legislative and administrative
processes by establishing multiple
policies on a piecemeal, case-by-case
basis, the attorneys general say.
To permit federal adjudication of
climate change remedies would disrupt
calibrated state regulatory schemes
devised by politically accountable
officials, the attorneys general argue.
The states have an especially strong
interest in this case, because the list of
potential defendants is limitless, they
say, with the plaintiffs' theory of
liability involving nothing more specific
than promoting the use of fossil fuels.
The U.S. Supreme Court already has
20 THE AMERICAN OIL & GAS REPORTER

ruled the Clean Air Act and related EPA
regulations have displaced the federal
common law on which the plaintiffs base
their claim, the attorneys general point
out. Also, the city plaintiffs are asking
the defendants to use revenues generated
outside the state to pay for infrastructure
projects benefitting only those two cities.
"In effect, plaintiffs would be imposing
limitations on commerce that takes place
wholly outside California's borders,"
they say. r

States, Green Groups
File Lawsuits Over New
Fuel Economy Standards
WASHINGTON-The U.S.
Environmental Protection Agency's
decision to loosen fuel economy and
tailpipe emission standards for cars and
light trucks has prompted a lawsuit
from seven environmental groups. That
lawsuit follows a petition filed by
California, 16 other states and the
District of Columbia opposing the
agency's action.
The groups-the Center for
Biological Diversity, Conservation Law
Foundation, Environmental Defense
Fund, Natural Resources Defense
Council, Public Citizen Inc., Sierra
Club and the Union of Concerned
Scientists-filed their petition in the U.S.
Court of Appeals for the District of
Columbia against EPA's Mid-Term
Evaluation of Greenhouse Gas
Emissions Standards for Model Year
2022-25, Light Duty Vehicles.
"When the Trump administration
announced it would reopen and weaken
the standards, it put the progress we
have made at risk, and disregarded the
science in the process," says Ken
Kimmell, president of the Union of
Concerned Scientists. "When you make
a decision like this, you need to show
your work and demonstrate why this
change in necessary. The Trump
administration simply failed to do so."
EPA unveiled the new standards on
April 2, with agency Administrator
Scott Pruitt deeming the tighter
standards imposed in the closing days
of the Obama administration
inappropriate and in need of revision
(AOGR, May 2018, pg. 19). "Obama's
EPA cut the midterm evaluation process
short with politically charged
expediency, made assumptions about

the standards that didn't comport with
reality, and set the standards too high,"
Pruitt said.
Pruitt also says EPA has begun a
joint process with the National Highway
Traffic Safety Administration to begin
the rule-making process for new
corporate average fuel economy
standards. The Obama standards would
have pushed fleetwide average fuel
economy requirements to 54.4 miles a
gallon by 2025.
The California-led lawsuit alleges
EPA's actions are arbitrary and
capricious, fail to follow agency
regulations in cancelling the Obama-era
standards, and violate the Clean Air Act.
Joining California are Connecticut,
Delaware, Illinois, Iowa, Maine,
Maryland, Massachusetts, Minnesota,
New Jersey, New York, Oregon,
Pennsylvania, Rhode Island, Vermont,
Virginia and Washington state.
EPA sets national standards for
tailpipe emissions under the Clean Air
Act, with California granted a waiver to
impose its own standards for certain
pollutants. According to media reports,
11 of the states involved in the lawsuit
have decided to adhere to the stricter
emissions standards that California first
imposed in 1966. r

Longmont, CO., OKs
Deal To Move Drilling
Beyond The City Limits
LONGMONT, CO.-The Longmont
City Council approved an agreement
with two oil and gas companies that the
council says essentially eliminates
drilling within city limits in exchange
for a $3 million cash payment and a
lease of 516 acres of city-owned
mineral rights. Council members voted
6-1 for the agreement at their May 22
meeting.
According to media accounts,
Governor John Hickenlooper has
suggested the concept of buying out
companies' holdings-instead of
attempting to condemn them through
bans-may offer an appropriate way for
local governments to address oil and gas
activity within their jurisdictions. "I
have always said the biggest problem is
this is someone's private property,"
Hickenlooper is quoted. "Now, what the
cities are doing, are saying 'If this is



American Oil and Gas Reporter - June 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2018

Contents
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