The Senate and House Environmental Resources and Energy Committees Wednesday reported out legislation that would remove conventional oil and gas wells from regulation under the 2012 Act 13 drilling law and make DEP develop separate regulations for conventional and unconventional (Marcellus Shale) wells.

“We erred in including conventional oil and gas wells in Act 13,” said Sen. Joe Scarnati (R-Jefferson), prime sponsor of Senate Bill 1378 at the Senate Environmental Committee meeting. “The intent is to take conventional wells back out of Act 13.”

There was a similar discussion about House Bill 2350 (Causer-R-Cameron) in the House Environmental Committee before both were amended to make slight changes and reported out of their respective Committees.

“When it comes to regulations, it’s very important to recognize the vast differences between conventional drilling and drilling in the Marcellus Shale,” said Rep. Martin Causer (R-Cameron), prime sponsor of the House Bill. “Conventional wells are shallow and have significantly smaller well pads. Their overall impact on the surrounding environment is far less than that of deep, Marcellus wells. Both types of drilling will continue to be regulated under this bill, but by differentiating between the two, we can protect against overregulation that could eventually drive shallow well producers out of business.”

Rep. Kathy Rapp (R-Warren) agreed saying, “I am very pleased we are moving this legislation forward for the sake of our shallow well producers and all of the people they employ. The industry has been operating in northwestern Pennsylvania for more than 150 years, and I would put the quality of our environment up against any other in the state.”

“The regulations being drafted now are exceedingly broad in an attempt to encompass both types of drilling,” said Rep. Matt Gabler (R-Clearfield) a co-sponsor of the bill. “The development of separate regulations allows the Department of Environmental Protection to go back and look at both kinds of drilling and adopt something that is reasonable, relevant and realistic for each type of operation.”

Sen. Scott Hutchinson (R-Venango) a sponsor of the Senate Bill said, “The conventional oil industry is an important part of the regional economy in northwestern Pennsylvania – an economy that is already struggling. It cannot afford to be stymied by excessive and unnecessary regulatory burdens.

“Technological advances that have allowed for the development of previously inaccessible formations have necessitated updates and revisions to Pennsylvania’s laws and regulations governing this new unconventional ‘shale gas’ industry.  Unfortunately, many regulatory and legislative changes did not recognize the significant differences between conventional and unconventional industries,” Sen. Hutchinson said.  “The council created under Senate Bill 1310 would work with the DEP to ensure that the differences between the operations are taken into account as these regulations and laws are developed and implemented.”

The Senate Bill is now on the Senate Calendar for action.  The House Bill was referred to the House Rules Committee as all bills are this time of year.

Reaction

The Pennsylvania Environmental Council opposed both these bills because they would set different environmental standards for conventional oil and gas wells.  PEC also recommended the definition of conventional and unconventional wells should be made by technology, not by geologic formations.  Both kinds of wells use fracking to increase oil and gas production, for example.  Click Here for more background.

Sen. Gene Yaw (R-Lycoming) serves as Majority Chair of the Senate Environmental Resources and Energy Committee and Sen. John Yudichak (D-Luzerne) serves as Minority Chair.

Rep. Ron Miller (R-York) serves as Majority Chair of the House Environmental Resources and Energy Committee and Rep. Greg Vitali (D-Delaware) serves as Minority Chair.

Related Stories:

PEC Asks Sen. Scarnati, Rep. Causer To Respond To Concerns On Conventional Well Bills

Analysis: What Regulations Apply To Oil & Gas Wells, Drilling In PA If These Bills Pass?

6/30/2014