On April 26, Republicans on the House Environmental Resources and Energy Committee reported out legislation imposing far-reaching decommissioning bonding requirements on solar and wind energy facilities, while ignoring the fact taxpayers are on the hook to pay for more than $1.8 billion to plug oil and gas wells regularly abandoned by conventional oil and gas operators.

Republicans also approved letters opposing Environmental Quality Board final regulations to reduce methane emissions from oil and gas operations, the Public Utility Commission’s proposed regulations improving natural gas and hazardous liquids pipeline safety and DEP’s proposed Environmental Justice Permit Review Policy.

Solar/Wind Bill

Republicans amended House Bill 2104 (Rapp-R-Forest) which set minimum statewide bonding and decommissioning requirements for solar and wind energy facilities to make it more restrictive.  The bill also preempts local governments from adopting their own requirements.

Rep. Greg Vitali (D-Delaware), Minority Chair of the Committee, said the amendments made the bill worse and were not supported by the Mid-Atlantic Renewable Energy Coalition.

The legislation also goes far beyond the best industry practices the Senate passed for utility-scale solar energy facilities in Senate Bill 284 on April 12.  Read more here.

Rep. Vitali said the maker of the bill, an enthusiastic supporter of the oil and gas industry, needs to “clean up your own house first” by requiring adequate bonding to pay for plugging tens of thousands of conventional oil and gas wells across the state.

DEP has estimated taxpayers are on the hook to pay for $1.8 billion in well plugging costs for conventional oil and gas wells.  Read more here.

The Pittsburgh Post-Gazette reported DEP only has $15 per well onhand through bonding and finance assurances to plug the 100,500 active conventional wells, and guess who picks up the remaining costs-- Jane and Joe Taxpayer.  Read more here.

State law now actually prohibits DEP from setting any bonding requirements covering plugging for conventional wells drilled before April 1985, which is most conventional oil and gas wells.  Read more here.

DEP records show even now conventional oil and gas well operators routinely try to abandon their wells and were issued over 4,270 notices of violation for abandoning oil and gas wells without plugging them in the last six years.  Read more here.

The Environmental Quality Board has a petition before it to increase bonding amounts for both conventional and unconventional oil and gas wells.  Read more here.

DEP announced this week, as part of the taxpayer funded federal Bipartisan Infrastructure Law Conventional Oil and Gas Well Plugging Program, it will be reevaluating its well plugging and financial assurance requirements to help prevent operators from abandoning new wells.  Read more here.

The bill was reported to the full House and was Tabled, which is the normal process.

Comments On Regs/Guidance

Republicans also approved letters opposing final regulations to reduce methane emissions from oil and gas operations, the proposed regulations improving natural gas and hazardous liquids pipeline safety and a proposed Environmental Justice Permit Review Policy--

-- PUC Proposed Regulations Improving Pipeline Safety: The letter by Republicans to the Independent Regulatory Review Commission said the proposed regulations, which are part of a years-long effort by the Public Utility Commission to improve natural gas and hazardous liquids pipeline safety, should be withdrawn because they will “dramatically increase the costs of constructing new pipelines and modifying existing pipelines in this uncertain economic moment when companies are making decisions about which states to invest in,” and refers to Russia’s invasion of Ukraine.

The letter goes on to say there is “absolutely no need for this regulation,” ignoring the fact that a brand new natural gas pipeline blew up in Beaver County in 2018 and new pipeline construction in the state have been hit with record penalties of over $55 million for consistently violating environmental laws and regulations and the Attorney General has filed criminal charges against the operators of two new natural gas and hazardous liquid pipelines in the state so far.  Read more here.

The pipeline and oil/natural gas industry and several unions submitted comments to the PUC opposing the regulations saying they went impermissibly beyond federal law. Read more here.

The Republicans that run the Senate and House have spent literally years ignoring legislation to improve natural gas and hazardous liquids pipeline safety.  Read more here.

Frustration in the ability of state law to prevent damage caused by pipeline construction related to the Mariner East Pipeline can be illustrated by a 2018 quote from Republican Sen. Don White (Indiana County) at a Senate Committee meeting-- “We should be able to deal with that company and put them out of business.”  Read more here.

But still, nothing was ever done by the General Assembly.

-- Final EQB Methane Reduction Regulation: The letter by the Republicans to the Independent Regulatory Review Commission said the regulations violate Act 52 of 2016 because it does not provide for separate regulations for conventional oil and gas well operators. 

DEP has said Act 52 only applies to regulations adopted under state Oil and Gas Act and to revisions of regulations in 25 Pa. Code Chapters 78 and 78a.

These regulations were promulgated under authority of the state Air Pollution Control Act and apply to all oil and gas operators that meet the threshold emissions requirements.

Unconventional shale gas well operators have generally supported this regulation.

The IRRC is scheduled to consider the final regulation at their meeting on May 19.  Read more here.

There are currently no comments on file with IRRC opposing the final regulation, except for the letter sent by House Republicans.

-- Proposed DEP Environmental Justice Policy: The letter by the Republicans opposed DEP’s draft Environmental Justice Permit Review Policy now available for public comment because they said there is currently no legislative authority for the policy.  At the very least, the letter said, DEP should be promulgating the policy as a formal regulation.

The deadline for public comments on DEP’s proposed policy is May 11. Read more here.

Click Here to watch a video of the April 26 Committee meeting.

Rep. Daryl Metcalfe (R-Butler) serves as Majority Chair of the House Environmental Committee and can be contacted by calling 717-783-1707 or sending email to: dmetcalf@pahousegop.com. Rep. Greg Vitali (D-Delaware) serves as Minority Chair and can be contacted by calling 717-787-7647 or sending email to: gvitali@pahouse.net.

Related Articles:

-- New Abandoned Wells: DEP Records Show Abandoning Oil & Gas Wells Without Plugging Them Is Pervasive In Conventional Drilling Industry; Who Is Protecting Taxpayers?

-- Quarterly Report: DEP Issued 77 Notices Of Violations To Conventional Drillers, 8 To Shale Gas Drillers For Attempting To Abandon Wells Without Plugging Them

[“Warning: The average person is likely to be shocked at the number and extent of the violations documented by DEP day in and day out.”]

-- 12 Unconventional Shale Gas Drillers Issued DEP Notices Of Violation For Abandoning Wells Without Plugging Them At 35 Well Pads In 17 Counties

-- Financial Assurance, Plugging Regulations To Be Reviewed To Prevent New Abandoned Oil & Gas Wells Under Federal Bipartisan Infrastructure Law Plugging Program

-- Senate Budget Hearings: PA’s Experience With New Pipeline Construction Shows State Laws Not Strong Enough To Prevent Environmental Damage, Protect Public Safety

-- PUC Invites Public Comments On Enhancements To Regulation Covering Petroleum & Hazardous Liquids Pipelines

-- DEP, Others Recommend Ways To Strengthen PUC Regulations On Natural Gas, Hazardous Liquids Pipeline Safety; Oil, Gas, Pipeline Industry, Unions Oppose New Rules

Related Articles This Week:

-- DEP: Latest Penn State Report On Environmental Impact Of Road Dumping Conventional Drilling Wastewater Will Have ‘Immediate,’ ‘Large,’ ‘Intense’ Impact In PA, Nationally [PaEN]

-- Financial Assurance, Plugging Regulations To Be Reviewed To Prevent New Abandoned Oil & Gas Wells Under Federal Bipartisan Infrastructure Law Plugging Program  [PaEN]

-- DEP: Federal Bipartisan Infrastructure Law Prompting Review Of On-Site Disposal Options For Oil & Gas Well Plugging Wastes; Radioactive Waste Disposal  [PaEN]

-- DEP: Draft Updates Coming To Regs. On Conventional Oil & Gas Waste Disposal As Early As July; Waste Reporting Changes Invited  [PaEN]

-- DEP Not Seeing Uptick In Oil & Gas Drilling; Expects $8 Million Deficit In Funding Oil & Gas Regulatory Program  [PaEN]

-- Physicians For Social Responsibility Release 8th Compendium of Scientific, Medical, Media Findings On Risks, Harms Of Fracking And Oil & Gas Infrastructure  [PaEN]

[Posted: April 27, 2022]

5/2/2022