Analysis: Is 8 Years Long Enough To Wait To Update PA's Drilling Law?

Since the first Marcellus Shale natural gas well was drilled in Pennsylvania in 2003, eight years ago, over 7,200 Marcellus Shale well permits have been issued, hundreds of miles of pipelines lain and billions of gallons of water used for fracking.

But Pennsylvania's Oil and Gas Act remains essentially the same, regulating these high-tech wells like they were the shallow wells Col. Drake drilled in Titusville in 1859.

The only substantive change made so far to the 27-year old law requires semi-annual reporting of Marcellus Shale gas production. A separate bill has updated another law coordinating gas wells and coal mining. But that's it.

Yes, the Department of Environmental Protection has updated well construction standards, hired more staff for inspections and generally has gone about as far as they can under existing legal authority, but that's the point.

The Governor's Marcellus Shale Advisory Commission report in July was not the first to conclude Pennsylvania needs to update its bonding requirements, offer better protection for streams and rivers through setbacks, expand liability for polluting rural water wells, increase penalties for violations and establish a better process for regulating thousands of miles of natural gas pipelines.

There are 30 or so recommendations in the Commission report that need to implemented by legislation.

Many of those recommendations have already been included in dozens of bills introduced in the House and Senate to update the Oil and Gas Act, but they've gone nowhere in eight years.

One important piece of this debate-- a severance tax or drilling fee to provide communities impacted by drilling with support and funding for threadbare state environmental restoration programs-- has gone nowhere, in spite of overwhelming and historic support by voters in Pennsylvania.

It has been three years since the first severance tax on natural gas production was proposed by Gov. Rendell. Last year the Senate, House and Gov. Rendell put a promise in law to enact a Marcellus Shale production tax by the end of 2010, but it went nowhere.

While the House has passed one proposal, the Senate took only its first step in the process by moving a bill out of Committee in June.

We've also had other proposals to support communities and programs like Growing Greener with fees and royalties from Marcellus Shale development.

They include proposals for leasing other state lands besides State Forests, using what will be $300 million in annual royalties from existing State Forest leasing more effectively and taxing natural gas mineral holdings like other property for the benefit of local governments and school districts.

But, they've gone nowhere.

The Senate and House Environmental Committees were busy holding hearings on Marcellus Shale issues over the last two years, but other than hearings involving the new Secretaries of DEP and DCNR, neither committee has held any hearings this year, or during their summer break, on Marcellus Shale issues.

Part of the reason for the delay was a request by Gov. Corbett for the General Assembly to take no action on Marcellus-related bills until his Advisory Commission report was completed. That happened July 22.

Gov. Corbett has not yet said which recommendations in the Commission report he supports.

When faced with significant environmental issues in the past, the Governor and General Assembly have provided the leadership needed to solve these kinds of problems.

In 1999, faced with federal Clean Water Act and nutrient and sediment reduction mandates to cleanup the Chesapeake Bay, Gov. Tom Ridge proposed the award-winning Growing Greener Program in his February budget address.

After lots of difficult work, the General Assembly passed and Gov. Ridge signed the initial $645 million program into law in December and by mid-January the first projects were already funded. It remains the largest single investment in restoring and preserving the environment ever made by the Commonwealth.

Yes it was a different time, money wasn't as tight, but the key difference was leadership. Leadership from the Governor and members of the Senate and House to make it happen.

And not coincidentally, in 1999, the Senate, House and Governor were all in Republican hands like today.

There is lots of talk these days about government setting priorities and returning to core missions.

What's more basic than protecting our water, our air and our land? In fact, it's a right guaranteed uniquely by Pennsylvania's Constitution in Article I, Section 27.

Is eight years too long to wait for changes to a 27-year old law to regulate an activity that is fundamentally changing Pennsylvania's economy, environment and landscape?

Yes.

What we need is leadership. The Senate returns to voting session September 19 and the House on September 26.

Let's get busy.