PA Environment Digest Blog

Wednesday, June 16, 2010

Senate Environmental Committee Expects Gas Well Blowout Report In 3 Weeks

Department of Environmental Protection Secretary John Hanger told the Senate Environmental Resources and Energy Committee his agency's investigation into the June 3 Clearfield County Marcellus Shale gas well blowout should be completed in about three weeks.
"As we develop this important clean energy resource, we must ensure that the safety of workers and local residents, as well as the protection of the environment and natural resources, is a top priority for all involved in the process," said Sen. Mary Jo White (R-Venango), Majority Chair of the Committee.
In opening remarks, Sen. White said the June 3rd blowout was a near miss and, along with the Gulf Oil spill, has shaken public confidence in safely drilling for oil and gas.
In response to a question, Secretary Hanger said there may be a need to clarify DEP's authority to withhold permits from well drillers who do not operate safely. He also suggested the state require the certification of well drilling operators, piggybacking on a federal certification requirement.
So far this year, DEP completed 1,700 well site inspections and found 530 violations which varied from simple administrative errors, but others he said were "concerning." Secretary Hanger said he is not pleased with this record. "There are too many leaks, too many spills, too much gas migration. This is not world class," he said.
Secretary Hanger said, although the full investigation is not complete, there are serious questions about the delay by the well operator in notifying his agency of the June 3 blowout. The blowout happened at 6:45 p.m. but no external calls were made by the operator until 9:30 p.m. he said.
The Senate Veterans Affairs and Emergency Preparedness Committee will hold a separate hearing on June 29 on the emergency response aspects of the gas well blowout and natural gas well emergencies generally.
Also addressing the panel were two representatives of the Pennsylvania Marcellus Shale Coalition: David Spigelmyer, Vice President for Government Relations Chesapeake Energy, and Ralph Tijerina, Director of Health, Safety, Security and Environment for Range Resources Inc.
Spigelmyer told the Committee, "Marcellus production holds enormous promise for this Commonwealth and we cannot jeopardize that potential through less than top-level operations." He said the blowout in Clearfield County was "unacceptable."
In addition, Sen. Jay Costa (D-Allegheny) submitted a statement for the record on several issues related to Marcellus Shale development in the state and DEP Deputy Secretary for Mineral Resources Management Scott Roberts accompanied Secretary Hanger at the hearing.
Sen. White said the Committee awaits the report to be delivered by DEP on the Clearfield County incident, and stands ready to work cooperatively with the department on ensuring that drilling activity is done safely in the Commonwealth.
All testimony, video and audio of the meeting will be posted online at the Committee's webpage.
Sen. Ray Musto (D-Luzerne) serves as Minority Chair of the Committee.
NewsClips
Report On Clearfield Gas Well Blowout Due Next Month
DEP Secretary Warns Of Consequences To Gas Industry
U.S. State Calls For Tougher Gas Drilling Regulation
PA Environmental Official Calls For Safer Natural Gas Industry

Governor Predicts 20,000 Worker Layoffs If Federal Funds Not Received

At a press conference this afternoon, Gov. Rendell said there was a joint decision with legislative leaders to not meet today because they thought there was progress in the meeting with the four Caucuses this morning.
Gov. Rendell also asked the legislative leaders to stay in Harrisburg continuously, starting June 21, until the state budget is finished.
In response to questions, if the federal government does not approve $850 million in federal Medicaid funding by July 1, he would begin putting state funds in escrow to cover that budget need. The funds, he said, would be gleaned from further budget cuts and state and local worker furloughs.
The Governor estimated there would be 20,000 state and local worker furloughs if the federal funds are not approved. (NewsClip: Medicaid Funding Uncertain)
Leaders from the four legislative caucuses met this morning on state budget issues and much of the discussion centered on trying to come to an agreement (they didn't) on a spend number and on the $850 million the state may or may not get from the federal government to cover some Medicaid costs.
They did, reportedly, agree they had $27.5 billion in revenue to spend, $26.65 billion if the federal Medicaid funds don't come through.
Click here for the full story.

Emergency Response For Gas Well Accidents Topic Of June 29 Senate Hearing

The sufficiency of local emergency response plans in gas drilling areas and the capacity of state officials to act quickly when problems hit will be the subjects of a public hearing on June 29 by the state Senate Veterans Affairs and Emergency Preparedness Committee.
Sen. Lisa Baker, Majority Committee Chair, said community groups and environmental activists are questioning whether plans to deal with well blowouts, leaks, and spills are in place and detailed enough to meet the challenges posed by the increased drilling activity in the Marcellus Shale.
"These concerns warrant our attention. As I have said many times, proper precautions are better than the best emergency response. Community safety, public health, and water quality are put at risk if there are any holes in emergency planning. With government budgets at every level under severe strain, it is a legitimate worry that preparation and training have not kept pace with the need," Sen. Baker stated.
"In the wake of the recent gas well blowout in Clearfield County, there are local rumblings that PEMA was either not ready or not properly engaged. There is a responsibility to air the situation and find the facts," she said.
"The heavy truck traffic resulting from equipment and fracking material being shipped in raises the possibility of collisions, turnovers, and spills. We are dealing mostly with rural areas and small communities. What is the state of readiness? Is there the necessary coordination and communication between levels of government, before we are tested by crisis? Are the resources immediately available when the worst happens?" Sen. Baker pointed out.
The Senate hearing will be held in Hearing Room #1 of the North Office Building.
Sen. Lisa Baker (R-Luzerne) serves as Majority Chair and Sen. Lawrence Farnese (D-Philadelphia) serves as Minority Chair.

Wednesday NewsClips

Senate GOP Leader: Budget Deadline In Jeopardy
House Yanks Vote On Marcellus Shale Tax Bill
Disagreements Delay Proposed Marcellus Shale Gas Tax
PA Is Considering An Extraction Tax On Natural Gas Drillers
Shale Tax Dispute Delays PA House Budget Vote
Letter: Natural Gas Severance Tax Should Benefit Growing Greener
Chester County's Green Fund Could Be Casualty Of State Budget
Sen. Ferlo Wants Moratorium On Marcellus Shale Gas Drilling
Sen. Ferlo Proposes Freeze On Drilling
6 Wayne County Gas Wells Ellude Delaware River Basin Moratorium
Proposed Lehman Twp. Gas Drill Site Contested
Resident Asks Council To Slow Gas Drilling Activity
Gas Firm Asks To Lay Pipeline In Dallas Twp.
PPL Webinars To Help Businesses Save Power
DEP Gives Blessing To Alliance Landfill Plan
Boback Calls For Short-Term Fixes For Drilling, Water Issues
Program Offers Training For Gas Drilling Jobs
Rep. Everett: Severance Tax Prevents Drilling

Tuesday, June 15, 2010

Deja Vu: House Democrats Again Fail To Pass Tax Bill

After two and a half hours of debate and several attempts to amend the bill, House Democrats failed to gather enough votes today to amend or pass House Bill 325 (Melio-D-Bucks) which would impose a new severance tax on natural gas production, on smokeless tobacco and cigars and raise the tax on cigaretts.
The bill was referred back to the House Appropriations Committee.
Rep. David Levdansky (D-Allegheny) attempted to suspend the rules to offer an amendment to provide environmental programs with more funding from the natural gas severance tax, but the effort failed by a vote of 104 to 95. Other amendments were either withdrawn or rebuffed.
The Marcellus Shale Coalition industry group issued this statement in response to the House consideration of a severance tax from Kathryn Klaber, president and executive director:
“Pennsylvanians continue to face troubling economic times, with nearly one out of every ten citizens in the Commonwealth out of work today.
“Despite this difficult climate, the environmentally-safe development of the Marcellus Shale’s natural gas resources continues to create tens of thousands of good-paying jobs at a time when they’re most needed. This responsible development is not only generating hundreds of millions of dollars in tax revenue for state and local governments, but it’s also delivering clean-burning, homegrown energy supplies to struggling families in the form of affordable natural gas for home and water heaters, as well electricity.
“We will continue to work closely with the General Assembly, the governor and his administration, as well as county and local officials, to craft commonsense solutions – especially modernizing our outdated regulatory framework – that encourage competitiveness, expanded job creation and energy security.
“Unfortunately, this enormous tax hike and misguided call for blanket moratoriums on shale gas production not only put Pennsylvania on a path to become one of the least competitive energy-producing states in the country but also threatens critical capital investments, which are essential for continued job growth. Instituting new taxes and an unnecessary moratorium will only drive away jobs – what a missed opportunity that would be.”
NewsClips:
House Yanks Vote On Marcellus Shale Tax
Disagreements Delay Proposed Marcellus Shale Gas Tax
Sen. Ferlo Wants Moratorium On Marcellus Shale Gas Drilling

Tuesday NewsClips

Severance, Tobacco Tax Proposal Could Go To Vote In House Today
Marcellus Shale Drilling On Hold In Delaware, For Now
Delaware River Panel Extends Its Gas Drilling Ban
Penn State Drilling Economic Study Questioned Over Industry Tie
Gas Well Permit Issuance Contested In Luzerne
FAA: Drilling At Airports Can't Be Used To Balance Budget
Editorial: Calls For Drilling Moratorium Premature
Op-Ed: Don't Believe The Green Jobs Hype
DCED Providing More Funds To Existing Infrastructure
Toomey Critical Of Cap And Trade Climate Proposal
Editorial: Threat To Delaware From Drilling Real
Gas Drilling In Noxen May Start Next Month
DRBC: No More Drilling
Four Montco Projects Receive PECO Funding
Meet The West Branch Susquehanna Sojourners
Thousands Involved In Ohio River Cleanup Saturday

Monday, June 14, 2010

DRBC Moratorium On Marcellus Shale Drilling Extended To Exploratory Wells

Delaware River Basin Commission Executive Director Carol R. Collier today announced she has supplemented her May 19, 2009 determination to include natural gas exploratory wells and as a result, the moratorium imposed on new wells in May applies.
"My 2009 determination that sponsors of natural gas extraction projects in shale formations must obtain commission approval before commencing such projects expressly did not cover wells intended solely for exploratory purposes," Collier said. "Today, I am extending the provisions of my 2009 determination to include exploratory wells, subject to reservations for exploratory well projects already approved by the states on or before June 14, 2010."
By this supplemental determination, all natural gas well project sponsors, including the sponsors of natural gas well projects intended solely for exploratory purposes, must first apply for and obtain commission approval before commencing any natural gas well project for the production from or exploration of shale formations within the drainage area of Special Protection Waters in the Delaware River Basin.
"For the purpose of this determination, any natural gas well drilled in or through shale is assumed to be targeting a shale formation and is subject to this determination, unless the project sponsor proves otherwise," Collier added. All other aspects of the 2009 determination remain in effect.
Today's action recognizes the risks to water resources, including ground and surface water that the land disturbance and drilling activities inherent in any shale gas well pose.
"In light of the commission's May 5, 2010 decision to finalize natural gas regulations before considering project approvals, this supplemental determination removes any regulatory incentive for project sponsors to classify their wells as exploratory wells and install them without DRBC review before the commission's natural gas regulations are in place," Collier said. "It thus supports the commission's goal that exploratory wells do not serve as a source of degradation of the commission's Special Protection Waters."
"Where entities have invested in exploratory well projects in reliance on my May 2009 determination and information from DRBC staff, there are countervailing considerations that favor allowing these projects to move ahead," Collier stated in her supplemental determination. "I am informed that since May of 2009, Pennsylvania has issued a limited number of natural gas well drilling permits within the Delaware River Basin targeting shale formations, while New York State has not issued any natural gas well permits targeting shales in the basin since that date. In contrast to the thousands of wells projected to be installed in the basin over the next several years, the risk to basin waters posed by only the wells approved by Pennsylvania since May 2009 are comparatively small.
"Not only are these wells subject to state regulation as to their construction and operation, but they continue to require commission approval before they can be fractured or otherwise modified for natural gas production. In light of these existing safeguards and the investment-backed expectations of the sponsors of these projects, this supplemental determination does not prohibit any exploratory natural gas well project from proceeding if the applicant has obtained a state natural gas well permit for the project on or before June 14, 2010."
Most of the shale formations that may be subject to horizontal drilling and hydraulic fracturing techniques requiring large volumes of water in the basin are located within the drainage area to DRBC’s designated Special Protection Waters.
The commission's SPW program is designed to prevent degradation in streams and rivers considered to have exceptionally high scenic, recreational, ecological, and/or water supply values through stricter control of wastewater discharges, non-point pollution control, and reporting requirements.
Coverage of the DRBC's SPW anti-degradation regulations includes the 197-mile non-tidal Delaware River from Hancock, N.Y. south to Trenton, N.J. and the land draining to this stretch.
Any person adversely affected by this action may request a hearing by submitting a request in writing to the commission secretary within 30 days of the date of this supplemental determination in accordance with the DRBC's Rules of Practice and Procedure.