Law Commons^™

Climate Choice Architecture, Felix Mormann

Faculty Scholarship

Personal choices drive global warming nearly as much as institutional decisions. Yet, policymakers overwhelmingly target large-scale industrial facilities for reductions in carbon emissions, with individual and household emissions a mere afterthought. Recent advances in behavioral economics, cognitive psychology, and related fields have produced a veritable behavior change revolution. Subtle changes to the choice environment, or nudges, have improved stake-holder decision-making in a wide range of contexts, from healthier food choices to better retirement planning. But the vast potential of choice architecture remains largely untapped for purposes of climate policy and action. This Article explores that untapped potential and makes the …

The Case For Corporate Climate Ratings: Nudging Financial Markets, Felix Mormann, Milica Mormann

Faculty Scholarship

Capital markets are cast as both villain and hero in the climate playbill. The trillions of dollars required to combat climate change leave ample room for heroics from the financial sector. For the time being, however, capital continues to flow readily toward fossil fuels and other carbon-intensive industries. Drawing on the results of an empirical study, this Article posits that ratings of corporate climate risk and governance can help overcome pervasive information asymmetries and nudge investors toward more climate-conscious investment choices with welfare-enhancing effects.

In the absence of a meaningful price on carbon, three private ordering initiatives are trying to …

When Drills And Pipelines Cross Indigenous Lands In The Americas, Guillermo J. Garcia Sanchez

Faculty Scholarship

From the Missouri River, passing through the Sonora Desert, all the way down to the Amazon Forest and the Andean Mountains, drills and pipelines are crossing over indigenous lands. In an energy-thirsty continent, there is no land left to spare, not even tribal land. Many of these energy infrastructure projects involve international investments that are protected by treaties and enforced by arbitral tribunals. At the same time, tribal communities have an internationally recognized right to receive prior and informed consultation before they are affected by projects of this nature. The Article focuses on the clash of rights between energy extraction …

The Footprint Of The Chinese Petro-Dragon: The Future Of Investment Law In Transboundary Resources, Guillermo J. Garcia Sanchez

Faculty Scholarship

Chinese offshore investments in the oil and gas sector around the world are on the rise. Like dragons roaming the seas trying to dominate the tides, Chinese state-owned companies are particularly eager to bid for oil fields in maritime borderlines. The article tells the story of how Chinese state-owned companies are over paying for oil on the US-Mexico boundary to gather experience on how China’s global competitors handle resource development conflicts. My argument is that Chinese participation in transboundary field development fits within a long-term strategy to master international legal regimes. The presence of these petro-dragons in borderlines is an …

The Fine Print Of The Mexican Energy Reform, Guillermo J. Garcia Sanchez

Faculty Scholarship

Five years ago, when Mexico transformed its energy sector, most commentators were worried about the government’s capacity to implement the reform. What would the upstream contracts look like? Would the auctions be transparent? How would international companies react? After two successful auction rounds, 107 signed contracts, and the creation of viable regulatory agencies to manage and monitor the reform agenda, the questions have changed. Today, Mexico’s capacity to implement energy reforms and attract foreign investment is no longer in doubt. Today, the most pressing questions about the reform concern its long-term sustainability. Can it survive the Mexican electoral cycles? Will …

Framework Of Surface And Ground Water In Oklahoma And Texas: Perspectives For Oil And Gas Development, Jessica Foster, Gabriel Eckstein

Faculty Scholarship

Chapter Extract:

Advancements in drilling techniques have broadened possibilities for producing hydrocarbons; but the innovations of unconventional drilling have exacerbated existing threats that the oil and gas industry have posed to water resources while creating new challenges. In today's industry, conventional methods of drilling for free-flowing crude oil are playing a secondary role to unconventional oil and gas production capable of bringing hydrocarbons trapped in tight or previously inaccessible geologic formations. Compared to conventional production, unconventional methods use much greater amounts of water in chemical-laden processes that can impact the availability and purity of freshwater resources in concentrated localities where …

The Hydrocarbon Industry’S Challenge To International Investment Law: A Critical Approach, Guillermo J. Garcia Sanchez

Faculty Scholarship

The research presented here challenges the contemporary view that the international investment regime has a “chilling effect” on host government policies. That critique errs in assuming that the effects of the modern bilateral investment treaties on decision-making within host governments have been uniform across states and economic sectors The main argument presented here is that in developing countries that depend on the oil and gas sectors, the international investment regime rarely deters host government rent-seeking behavior that can harm foreign investors.

In petro-dependent developing nations that have weak institutional capacity the survival of the government becomes tied to its ability …

The 2012 Agreement On The Exploitation Of Transboundary Hydrocarbon Resources In The Gulf Of Mexico Confirmation Of The Rule Or Emergence Of A New Practice?, Guillermo J. Garcia Sanchez, Richard J. Mclaughlin

Faculty Scholarship

This Article explores the international law applicable to the exploitation of hydrocarbon resources that straddle the boundaries between States (transboundary fields) and its applicability to the U.S. and Mexico maritime boundary in the Gulf of Mexico. After a detailed examination of the different sources of international law including treaties, customary norms, judicial decisions, and bilateral practice, the Article concludes that the United States and Mexico have deviated in some regards from the standard international legal practices that other States have adopted to exploit transboundary hydrocarbon resources. The two most notable deviations are in allowing either nation to unilaterally exploit the …

Energy Reform In Mexico: Lessons And Warnings From International Law, Guillermo J. Garcia Sanchez

Faculty Scholarship

The article analyzes some of the contents of the Mexican Energy Reform of 2013 and warns on the international legal implications that the path that Mexico has chosen to follow could bring to its economy and international relations. Concretely, it argues that in order to avoid falling into the same mistakes made by other Latin American countries in the region, Mexico must consider its obligations contained in international treaties signed with the United States on transboundary resources, and its obligations in bilateral investment treaties that protect foreign investors from certain government acts and policies.

Pooling Clauses And Statutes, Gina S. Warren

Faculty Scholarship

Pooling is a tool used to bring together small or irregular tracts of land or mineral interests to form one drilling unit for the purposes of oil or gas production. In general, pooling can be accomplished in a variety of ways, including separate pooling agreements, community leases, voluntary pooling clauses within leases, and compulsory pooling statutes.

This article will focus on voluntary pooling lease clauses and compulsory pooling statutes. This article will discuss the requirements for valid pooling under a voluntary lease provision and look at the remedies available for invalid or improper pooling. It will analyze the effect of …

Endangered Species In The Oil Patch: Challenges And Opportunities For The Oil And Gas Industry, Gabriel Eckstein, Jesse Snyder

Faculty Scholarship

Tension among competing interests is nothing new in environmental law. Even among the most tenacious adversaries, the ability to find common ground can serve as an impetus to further the aims of both industry and environmental proponents. Broadly speaking, advocates of the oil and gas industry prefer few restraints, if any, on exploration, development, and production. Comparatively, champions of biological and ecological preservation favor regulatory protections to conserve these interests. Cutting across these often disparate objectives, the Endangered Species Act (ESA) presents a not-so-obvious opportunity for both sides to receive a share of the pie through cooperation and forward planning. …

Pooling Clauses And Statutes, Gina S. Warren, Mark G. Walston

Faculty Scholarship

Pooling is a tool used to bring together small or irregular tracts of land or mineral interests to form one drilling unit for the purposes of oil or gas production. In general, pooling can be accomplished in a variety of ways, including separate pooling agreements, community leases, voluntary pooling clauses within leases, and compulsory pooling statutes. For purposes of this article, we will be focusing on voluntary pooling lease clauses and compulsory pooling statutes.

This article will discuss the requirements for valid pooling under a voluntary lease provision, briefly outline how royalties are distributed for pooled units, and discuss remedies …