Oil and Gas Production, Transaction, and Transportation Expertise

Troutman Sanders attorneys have decades of experience serving clients in all facets of the oil and gas industry in the United States and overseas. Working in teams with colleagues in our Federal Regulatory Policy, Real Estate, Transportation, and Project Development & Finance groups, our attorneys have assisted in the development and financing of energy projects, management of many different legal, commercial and technical facets of power station, petrochemical plant, and upstream oil and gas development and financing, trading and marketing, pipeline regulation, environmental compliance, and litigation. We have worked on a variety of complex energy litigation matters involving oil and gas pipelines and refining issues.
Several of our attorneys served in senior roles with major oil and gas companies, the Federal Energy Regulatory Commission, and U.S. Environmental Protection Agency and bring valuable business and regulatory expertise to their legal service. Providing assistance in this specialized field requires a full-service approach using a breadth of legal knowledge and expertise in several crucial areas of law:

  • Resource Law: Large-scale land and lease transactions, bidding and purchase;interaction with government land resource agencies such as the Department of Interior’s Bureau of Land Management (“BLM”) and Minerals Management Service.
  • Agency Reviews: Reviews by BLM, MMS, and the Environmental Protection Agency under the National Environmental Policy Act; Department of Commerce’s Coastal Zone Management Act consistency determinations, and state and local laws.
  • Licenses, Approvals, and Regulatory Compliance: Clean Air Act and Clean Water Act permitting and compliance, as well as Oil Pollution Act, Pipeline Safety Act, and emergency planning and preparedness requirements.
  • Post-Production and Energy Delivery: Transportation, royalty and rate issues before the Department of Transportation (Research and Special Programs Administration, and Pipeline Safety), DOI, and Federal Energy Regulatory Commission.

FERC Regulation

Troutman Sanders has an extensive practice before the Federal Energy Regulatory Commission, including significant work for virtually every segment of the natural gas industry affected by FERC regulation. Furthermore, our substantial experience with commercial, regulatory and public policy matters in connection with electric power restructuring complements the firm’s natural gas expertise on issues involving the convergence between natural gas and electricity markets. Our attorneys include a former Commissioner of that agency, and several former senior agency counsels. The firm’s attorneys:

  • Participated as FERC Commissioner in formulating FERC policies implementing the electricity and oil pipeline titles of the Energy Policy Act of 1992, Order No. 888 open access electric transmission rule, Order No. 592 merger policy statement, Order No. 636 natural gas restructuring rule and natural gas gathering policy;
  • Served as lead counsel to Sea Robin Pipeline Company in proceedings to remove its offshore pipeline system from FERC jurisdiction ("test case" for offshore pipeline restructuring in U.S.) and related complaint proceedings;
  • Served as counsel to BP in complex oil pipeline tariff litigation (Quality Bank case) involving the Trans Alaska Pipeline System before the FERC and Alaska Public Utilities Commission;
  • Represent a group of gas utilities in litigation involving system gas procurement, management and accounting issues;
  • Represent a large interstate gas utility in matters before FERC and with respect to that utility’s management of contractual, business and regulatory relationships with various pipelines and other natural gas service providers;
  • Counseled industrial gas users in US gas pipeline industry restructuring proceedings, gas pipeline rate cases and complaint proceedings before the FERC; and
  • Represent an interstate natural gas pipeline in connection with capacity expansion proposals in the Northeast.

Pipeline Siting and Construction

Troutman Sanders attorneys have assisted clients with pipeline siting and construction matters in the United States and overseas. Several firm attorneys served in senior positions within federal and state resource management agencies and, as a result, we offer particular expertise with regard to acquisition of use rights on federal and other public lands. Attorneys in our Real Estate and Utilities practice groups routinely assist clients with acquisition of rights of way and easements on private lands. For example, our attorneys:

  • Served as lead counsel for a client in their development of a 750 km gas pipeline extending from Argentina to Chile;
  • Managed design and construction of 24" and 20" pipelines to consolidate and shutdown satellite processing facilities in Jay/LEC Field;
  • Served as counsel for a significant refinery EPC project for the construction of submarine pipelines in Singapore and a significant refinery EPC contract for the construction of petroleum tanks in Singapore; and
  • Represented an interstate hazardous liquids pipeline before the U.S. Fish and Wildlife Service to secure a “no jeopardy” determination with regard to pipeline construction and operation in an area with numerous listed animal and plant species.

Pipeline Safety and Environmental Performance

Troutman Sanders attorneys are regularly involved in matters related to pipeline safety and environmental performance. Our attorneys have gained experience with oil and hazardous liquid spills from work in both the government and the private sector. For example, one of our attorneys assisted in drafting a state’s aboveground storage tank regulatory program. We are familiar with the requirements of the Oil Pollution Act of 1990 as they apply to oil and gas exploration and development and pipelines; we have a substantial amount of experience with hazardous waste spills from drums, tanks, and vehicles, and the SPCC regulations and reporting requirements under CERCLA and EPCRA. Our attorneys:

  • Represented an interstate products pipeline in connection with federal litigation challenging the adequacy of the environmental analysis of the pipeline, including negotiation of settlement with plaintiffs and oversight of NEPA and ESA analyses of the project, representation of pipeline before the U.S. Department of Justice, EPA, Department of Transportation, Department of the Interior, White House, and various congressional offices;
  • Represented an intrastate pipeline before the OPS in connection with a significant spill; assisted client in securing timely authorization to restart the line;
  • Represented pipeline owner and operator in connection with spill-related litigation and NTSB investigation;
  • Represented an interstate oil pipeline in connection with EPA investigation and federal litigation stemming from a spill involving natural resource damages; and
  • Advised owners of natural gas pipelines regarding drug testing requirements for pipeline operators

Marine Transport

We maintain an extensive marine practice that provides advice and representation to owners of tankers, barges, shoreside facilities and insurers on the intricate interplay of state and federal technical requirements and liability regimes. This representation includes proven litigation expertise at all levels of federal trial and appellate practice, including the Supreme Court of the United States. Our maritime attorneys are also active in environmental issues arising from agency rulemaking proceedings at the United States Coast Guard, the EPA and before the environmental agencies of several coastal states of the United States. Our experience extends to advice on response to vessel and pipeline pollution incidents. Examples of past representations include:

  • Successful constitutional challenge in the Supreme Court of the United States to state environmental regulations affecting vessel equipment training and operations;
  • Counseling clients from major maritime nations on vessel structural and operating requirements under the Oil Pollution Act and related federal statutes;
  • Advising insurers and vessel owners on liabilities for pollution incidents under state and federal statutes;
  • Legislative representation before the Congress of the United States on vessel safety and navigational infrastructure issues; and
  • Reviewing oil and chemical pollution response plans for compliance with applicable state and federal requirements.

Oil and Hazardous Liquid Spills

Our attorneys have gained experience with oil and hazardous liquid spills working both in the government and in the private sector. For example, one of our attorneys assisted in drafting Virginia’s aboveground storage tank regulatory program. We are familiar with the requirements of the Oil Pollution Act of 1990 as they apply to oil and gas exploration and development and pipelines; we have a substantial amount of experience with hazardous waste spills from drums, tanks, and vehicles, the SPCC regulations and reporting requirements under CERCLA and EPCRA. We have served as an arbitrator in deciding allocation between an oil pipeline company and natural gas distribution company of private damage award resulting from oil pipeline releases.

Sample representations include:

  • Successfully representing an oil pipeline before federal agencies to secure authority to restart the pipeline after a significant spill;
  • Representing an electric utility in Boston in preparing an environmental management plan to deal with prospective oil spills and in developing a Spill Prevention Control and Countermeasures Plan;
  • · Chairing the Chesapeake Bay Foundation’s internal work group on oil and gas exploration, transportation and spill response;
  • Counseling nitric acid plant on reporting requirements under CERCLA and EPCRA in relation to a release of ammonia and nitrogen oxide. We ultimately negotiated a favorable settlement with EPA Region 9 on behalf of our client;
  • Litigating a jury trial in state court for property damages under the Virginia Oil Discharge Act on behalf of a property owner who was unable to see his property after a routine Phase I Environmental Assessment determined that a neighbor had discharged oil into a stream on the property;
  • Representing the owner of a recreational facility in state court in a lawsuit against an adjacent property owner from whose property dry cleaning solvents and petroleum have migrated, seeking damages for lost sale of the property, diminution in property value and response costs. The suit resulted in a very favorable settlement for our client, including successfully disposing of the property;
  • Advising a large utility client on the risks and liabilities associated with the acquisition of a pipeline with a history of a significant spill in the course of a multi-million dollar transaction;
  • Representing commercial hazardous waste treatment and storage facility in reporting hazardous waste releases to regulatory authorities from treatment vessels and storage containers, including follow-up consultation with the agencies and appropriate corrective action;
  • Successfully representing aircraft refurbishing company before the Florida Department of Environmental Protection with respect to the accidental release of hazardous wastewater into an estuary. Ultimately, the state did not take any enforcement action against our client; and
  • Counseling an electric power producer regarding the assessment of and remediation planning for historical oil and chemical releases at power generation facilities in Trinidad/Tobago.

Upstream Resource Development

Our attorneys have been involved in every aspect of upstream development work. For example, we:

  • Participated in review and coordination of Minerals Management Service offshore leases in the Gulf of Mexico;
  • Served as lead counsel to minority group of sponsors in negotiation of upstream project development agreements for Tangguh LNG Project in Irian Jaya, Indonesia;
  • Prepared and negotiated upstream joint venture oil and gas agreements;
  • Engaged in strategic planning, financial analysis and reservoir development for US$1.5 billion Mobile Bay gas development project; chaired joint venture negotiations and key unitization committees;
  • Served as expert witness for federal and state regulatory hearings regarding OCS development;
  • Led reservoir development of Raccoon Point Field in the Big Cypress National Preserve, South Florida; and
  • Managed existing oil and gas reservoirs in Florida and Alabama, including coordination of drilling & workover operations.

Transactions

Troutman Sanders attorneys have assisted oil and gas industry clients with a wide range of domestic and international transactions, including service as:

  • Counsel to project sponsors in contract negotiations for US$7.2 billion of natural gas to be purchased from the Malampaya Reservoir, offshore Palawan, Philippines over 20 years;
  • Counsel to project sponsors in competitive tender and contract negotiations for the supply of up to 50,000 barrels/day of condensate, naphtha and/or gasoil to two power plants;
  • Counsel to buying cooperative of local natural gas distribution companies in development and implementation of on-line reverse auction for gas procurement;
  • Counsel to project sponsors for competitive tender, negotiation, and administration of EPC Contract for 24-inch gas pipeline;
  • Counsel to major oil and gas E&P company in preparation and negotiation of tender package to purchase offshore Gulf of Mexico assets of target company;
  • Counsel for the sale of a Petroleum Terminal in Malaysia and for the acquisition of an interest in a Petroleum Terminal in Pasier Gudang, Malaysia;
  • Counsel for the establishment of the first oil industry “umbrella company” (a special holding company) in China, and for the approvals to locate and operate the first corporate jet in China;
  • Counsel to independent power producers and integrated energy companies in preparation of bids and negotiation of acquisition agreements for the purchase of portfolios of existing and planned power plants, and other upstream and midstream oil and gas properties;
  • Counsel for structuring the international marketing of Hibernia crude oil production, RasGas condensate production and Sable Island condensate production;
  • Counsel for supply and logistics matters in connection with a refinery joint venture in the United States, with a foreign partner;
  • Counsel for supply and logistics matters in connection with the sale of a major United States petroleum refinery;
  • Counsel for the acquisition of shares in two Malaysian companies and the distribution of petroleum products in connection therewith;
  • Counsel for various ISDA master commodity swap agreements;
  • Counsel for a UK/US vessel financing;
  • Counsel to major petroleum company concerning its operations in 19 European countries, including:
  • Negotiation and drafting of various pan-European agreements (joint ventures, distribution, consignment, agency, construction and services) for major petroleum company.
  • Provision of advice on matters of, and conduct of internal seminars with respect to, EC competition and environmental law; and
  • Counsel to major petroleum company for various real estate acquisitions (fees and leases) and sales, wholesale credit operations (including bankruptcy cases), and on matters concerning the Petroleum Marketing and Practices Act.

Refining

During prior employment by a major oil company, one of our attorneys oversaw major oil and gas processing, gas sweetening and sulfur recovery facilities for treating over 100,000 barrels of oil per day in Florida and Alabama; prepared and stewarded US$500 million capital budget and annual volumes forecasts; planned and supervised major plant turnarounds and capital projects.

Developing Energy Law and Policy

Our Washington, D.C. office is actively involved with National Energy Policy and related developments within Congress and Federal Agencies. Our attorneys regularly practice before the federal agencies and are in touch with the cutting edge developments in energy policy nationally and worldwide.

Sample Representations:

Troutman Sanders attorneys recently have represented clients in several recent, major litigation and policy issues affecting energy production, including Offshore Oil and Gas Exploration and Development permits and associated issues under the Clean Water Act, Clean Air Act, National Environmental Policy Act, and Coastal Zone Management Act.

Troutman Sanders serves as environmental counsel to a petroleum pipeline company in the Southwestern U.S. that is converting an interstate line from carrying crude oil to refined products. Troutman attorneys have assisted this client through various stages of federal litigation involving application of the National Environmental Policy Act, and have provided counsel regarding compliance with the Endangered Species Act, and the rapidly-tightening regulatory program administered by the Department of Transportation's Office of Pipeline Safety under the Oil Pollution Act and Hazardous Liquids Pipeline Safety Act. In the course of this representation, we have led negotiations with the U.S. Department of Justice, White House Council on Environmental Quality, U.S. Fish and Wildlife Service, Environmental Protection Agency, and Department of Transportation. Our work has helped the client establish itself as a leader in pipeline safety and environmental performance, positioning itself to have significant credibility among federal and state regulatory agencies.

Troutman Sanders also provides environmental regulatory counsel to a national energy company with respect to an intrastate pipeline in the mid-Atlantic region. The line has been shut down in the wake of a significant spill. Troutman attorneys are working with the client to win approval for restarting the line by developing and implementing a strategy to comply with a corrective action order issued by the Office of Pipeline Safety and the Agency's new environmental regulations.

Troutman Sanders also serves as environmental counsel to some of the largest powerproducing companies in the United States on a variety of legal issues, including regulatory and transactional issues.

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