PA Environment Digest

"As a result of conversations with industry representatives, agency staff, and panelists, the advisory councils compiled a short list of issues that rose to the top of items of interest and areas that the CAC and CNRAC will want to continue to evaluate over time. These issues include:

-- Bonding: DCNR’s lease provisions are protective of activity on BOF lands, but the legal requirement as currently required under the Oil and Gas Act (as opposed to DCNR’s contractual requirement) is clearly inadequate and needs to be updated.

-- Water wells:

--Presumption of liability - DEP needs to evaluate the validity/adequacy of the 1000 foot presumption of liability in the Oil and Gas Law.

-- Water well testing - DEP is creating a list of analytical parameters for water well testing so that homeowners know what to test for and what it will cost.

-- CAC continues to advocate for passage of water well construction standards as one means to reduce the impacts of gas migration on homeowner’s water supplies.

-- Sufficiency of staff: Both agencies need to regularly evaluate the sufficiency of staff needed to properly manage Marcellus Shale development.

-- Forest integrity and monitoring: Some entity (presumably BOF) needs to continue to monitor the impact of Marcellus development on the integrity of the state forest resource. The state forest has been certified for sustainability, which could be negatively impacted by the scope of this development.

-- Gas development infrastructure (e.g., gathering and transmission lines, water impoundments, compressor stations, etc.): Companies should be encouraged to pursue a comprehensive local and regional coordinated approach to the development of this resource. This includes coordination of efforts to minimize forest fragmentation concerns, pursue co-location and/or sharing of infrastructure such as pipelines, compressor stations, roads and water impoundments.

-- Severance tax: The debate continues over the pros and cons of imposing a severance tax on natural gas drilling. Regardless of when such a tax is imposed, and in what form, both councils recommend that a significant portion of the proceeds be dedicated to land, water and wildlife conservation and to local governments impacted by gas exploitation, particularly Marcellus gas extraction. This can offset the damages caused by natural gas operations and avoid repeating the history of creating environmental scars and financial burdens for future generations. We have an extraordinary opportunity to invest in our natural resources and communities so that Pennsylvanians can prosper both during extraction activities and after the gas is gone, but we need to ensure these funds remain dedicated to the intended purpose, not raided for other shortfalls as has happened repeatedly to other environmental funding streams.

-- Unplugged wells:

-- Can seismic testing locate abandoned, orphan, unplugged wells, and can drilling? Companies should be encouraged or required to locate and plug orphan and abandoned wells in their area of activity (similar to encouraging re-mining and reclamation).

-- DEP’s orphan well plugging program needs to be adequately funded.

"The Marcellus Play is an enormous opportunity if developed responsibly. It has the potential to be disastrous, if not. Companies must do their absolute best to avoid/minimize impacts. Companies need to work together to ensure the best environmental outcomes."

A full copy of the report is available online.

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