Pennsylvania Governor’s Shale Panel Issues Blueprint for the Future

by Duane Nichols on July 23, 2011

The Marcellus Shale Advisory Commission appointed by the Governor of Pennsylvania has now reported with 96 recommendation aimed at encouraging gas companies to invest in Pennsylvania, protecting environmental resources and helping local governments manage the industry that is remaking their communities.

Key recommendations in the Report are as follows: Enact a drilling impact fee that offsets “uncompensated” costs to local governments. Double civil penalties for violations and increase bonding fees held in case a well is abandoned. Establish construction standards for private water wells and increase the distance for which a driller is presumed liable for contamination. Require the state Public Utility Commission to oversee gathering lines and increase safety standards for pipelines in low-density areas. Update state law to make the Marcellus Shale eligible for “pooling.” That process allows for mineral resources at a certain depth to be added against the owner’s wishes into a larger drilling unit.

Praise for the report has come from Range Resources, EQT Corporation, and the Pennsylvania Independent Oil and Gas Association, among others. The Chesapeake Bay Foundation, Pennsylvania Environmental Council, the Nature Conservancy and Western Pennsylvania Conservancy gave a mixed assessment of the final report.

“We consider the report to be a meaningful first step toward improving Pennsylvania’s oversight of shale gas extraction, but additional improvements must be accomplished as the debate shifts to the General Assembly,” these latter organizations said in a joint release. Others who were not included in the process criticized the 137-page document, saying it was exactly what they feared from a panel stacked with industry executives. “From day one, we knew that the advisory commission is nothing more than a stalling tactic,” said Erika Staaf of the advocacy group PennEnvironment.

For more on this report, visit www.post-gazette.com/pipeline

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