More changes coming to Pa. environmental rules for gas, oil wells

By David Conti, Pittsburgh Triblive.com, August 12, 2015

Pennsylvania regulators backed off plans to write noise limits and requirements involving off-site wastewater storage tanks into new environmental rules for oil and gas wells.

The Department of Environmental Protection on Wednesday called those changes the most significant in the final draft of proposed rules that seek to protect water, air and land around drilling sites. DEP officials said to expect more changes and a separate batch of regulations the agency will begin writing this year.

“These amendments reflect a balance between meeting the needs of the industry and the needs of public health and the environment, all while enabling drilling to proceed,” department Secretary John Quigley said.

‘A big step forward’

The Marcellus Shale Coalition blasted the rules as being too burdensome and unnecessary, estimating they will add $2 billion in annual costs to an industry suffering from low gas prices “without providing meaningful environmental benefits.”

“We have worked in good faith to provide constructive comments on this proposed rule,” said David Spigelmyer, president of the North Fayette-based industry group. He complained that Gov. Tom Wolf’s administration, which is seeking to increase taxes on the industry, “chose to ignore comments made by the regulated community and disregarded legislative directives to do any real cost benefit analysis.”

Quigley said the department took into account 30,000 comments. “We’ve gone the extra mile in every way,” he said. “We have made changes. We have done this right.”

A 2013 analysis by DEP estimated the rules would cost shale drillers between $53 million and $79 million annually. Spokesman Neil Shader said additional analysis would be available when the department submits the rules for final review.

The environmental group PennFuture said it was still “digesting” the draft but was encouraged. “Finalizing these rules and getting them in place is a big step forward,” staff attorney Michael Helbing said.

The 4-year rewrite has grown divisive as it stretched between two administrations and sought to regulate conventional drilling and the growing exploration of deep shale. The department took testimony at a dozen public hearings before lawmakers ordered it to separate the new rules for conventional and shale drilling.

Wolf this year revamped the advisory boards that review the rules as the department had made enough changes to the draft that it required a second round of public comment. The boards provide input and non-binding recommendations. Quigley acknowledged that one of those boards, the newly formed Conventional Oil and Gas Advisory Committee, won’t give its blessing to the regulations covering shallow wells.

Noise limits too vague

Industry and environmental advocates complained that noise limits included in that draft were too vague to include in well permits. Deputy Secretary Scott Perry said the department would publish separate guidance on the issue.

Off-site tanks built to handle wastewater will be handled like earthen impoundments for which drillers will need to obtain separate residual waste permits to build or operate. Leaks from impoundments have been a problem for drillers and led to multimillion-dollar fines.

The new changes clarify unclear language in the previous draft. Drillers that pollute drinking water supplies will have to restore them to a higher standard. Playgrounds whose presence near a well would trigger extra requirements in a permit do not include those privately operated by a restaurant or day care center. One-year drilling permits can be renewed only once, for two years, before a company needs to start over on the application process.

“We are confident this will be approved,” Quigley said of the proposal that requires approvals from the Environmental Quality Board and the Independent Regulatory Review Commission next year.

Perry said he expects more changes to this draft as it goes before the two advisory boards, which will meet August 27th and September 2nd.

A separate process to write stronger public health rules for the industry is starting, Quigley said.