The Pennsylvania Environmental Council this week expressed its strong opposition to language included in the Fiscal Code bill-- House Bill 278 (Baker-R-Tioga)-- that fundamentally changes the way conventional oil and gas operations are regulated in Pennsylvania.

The language came from Senate Bill 1378 (Scarnati-R- Jefferson) introduced on May 22 and House Bill 2350 (Causer-R-Cameron) introduced on June 16.

In May, in response to a co-sponsor memo sent before Senate Bill 1378 was introduced, PEC contacted and sent a letter to Sen. Joe Scarnati (R-Jefferson) and Sen. Scott Hutchinson (R-Venango) the principal sponsors of the bill expressing concerns about the legislation and asking for a meeting to discuss the issues.

PEC never received a response.

In early June PEC sent a letter opposing to the conventional well legislation to every member of the Senate, including Sen. Scarnati and Sen. Hutchinson, because it never received a response.

On June 25 the Senate and House Environmental Committees amended and reported out Senate Bill 1378 and House Bill 2350, but that’s all the further they got in the legislative process.  They were never passed on their own in either the Senate or House

On Friday June 27, PEC wrote to Sen. Joe Scarnati (R-Jefferson) and Rep. Martin Causer (R-Cameron) asking them to respond to several significant concerns about statements made by both members at and after the June 25 Committee meetings.

Sen. Scarnati said at the Senate Environmental Committee meeting the intent of his bill was to take conventional wells out of the basic law-- Act 13-- regulating oil and gas well activities leaving open the question of what kinds of environmental standards would apply to conventional wells.  Rep. Causer said in a press release his bill addresses the “over regulation” of the conventional drilling.

PEC never received a response from either Sen. Scarnati or Rep. Causer.

On Monday, June 30 the language on conventional well regulation from Senate Bill 1378 and House Bill 2350 was added as part of a 66-page amendment to House Bill 278 (Baker-R-Tioga) in the Senate Appropriations Committee with no notice.

John Walliser, Vice President, Legal & Government Affairs for PEC, issued this statement Monday:  “Inclusion of language requiring the alteration of regulations for conventional oil and gas wells in the Fiscal Code is an affront to transparency and the legislative process. Legislation has been introduced in both the Senate and House toward this objective, but neither has passed its respective chamber. There has not yet been adequate consideration of this language, nor sufficient time for public input. Conventional oil and gas well regulation is not a budgetary issue – it’s a public trust and protection issue. The Pennsylvania Environmental Council opposes any such action by the General Assembly, and we call on its members and the Governor to reject it.”

During the final Senate vote on House Bill 278 the announcement of the final vote was interrupted on the Senate Floor because it resulted in a 25-25 tie.  Only after Sen. Scott Wagner (R-York) changed his vote from no to yes was the 26-24 final vote announced.

On Wednesday, July 1, after the House Rules Committee amended the bill, but did not take out the conventional well language, PEC sent this communication to every House member-

“Yesterday the House Rules Committee amended House Bill 278 (now P.N. 3930) to remove several provisions from the legislation.

“We urge you to also remove language in House Bill 278 relating to conventional oil and gas well regulation – in P.N. 3930, from page 53, line 4 through page 54, line 9.

“Our reason for this request is simple: inclusion of language affecting natural gas well regulation is entirely separate from fiscal or budgeting matters, and goes against transparent public policy and the General Assembly’s own procedural rules.

“This language is drawn from companion legislation (House Bill 2350 and Senate Bill 1378, respectively) that has already been introduced, but not passed, in either chamber. This language and legislation should be required to stand on their own merits with full consideration and opportunity for public input.

“To end run the General Assembly’s own rules to pass language wholly unrelated to the budget goes against the public interest. We urge you to strike this language before final consideration of the Fiscal Code bill.”

During the House Floor debate, Rep. Greg Vitali (D-Delaware), Minority Chair of the House Environmental Resources and Energy Committee, challenged two provisions in the bill related to transferring $95 million from the Oil and Gas Fund to the General Fund to balance the budget and a section calling for new, separate operational and environmental standards for regulating conventional oil and gas wells.

Rep. Vitali’s motions to suspend the rules to offer an amendment to impose a moratorium on oil and gas drilling on DCNR land failed 70 to 130 a second amendment to remove sections related to conventional wells failed 79 to 121.

Rep. Vitali also challenged the constitutionality of the consideration of the bill since many of the provisions, including the conventional well sections, were never passed on their own by either the Senate and House.

The motion of constitutionality failed 117 to 83 and the House voted to send the amended House Bill 278 back to the Senate 121 to 78.

The Senate must now decide whether to insist on its amendments or concur with the House changes when they come back July 8.

 A detailed summary and House Fiscal Note are available on House Bill 278.

NewsClips:

Shallow Drillers Might Get A Break In PA Law

New Gas Well Regulations Slipped Into Budget Bill

Budget Mischief With Gas Well Regulations?

Fast-Tracked Drilling Bill Prompts Objection

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

7/7/2014