State convenes summit on regs for natural gas

McGinty says: natural gas exploration, extraction will not come at natural resources’ expense HARRISBURG - With Pennsylvania facing record interest from the natural gas industry, Department of Environmental Protection Secretary Kathleen A. McGinty last week said taking advantage of the state’s energy resources is important to its economy and the nation’s interests, but doing so must be balanced against the need to protect its natural resources. Speaking at a first-of-its-kind summit attended by approximately 150 representatives of the oil and gas industry, McGinty said improving technology and higher energy prices are making it easier and more attractive for drilling companies to explore and extract natural gas, but that activity must be done in accordance with the state’s environmental laws and regulations. “The economics of the energy industry are driving an incredible level of interest in Pennsylvania’s natural resources,” said McGinty. “In three of the last four years, we’ve set a new record in terms of the number of permits issued to drill here, and this year could bring another record. “This activity can be a tremendous economic boon for our state’s citizens and industries, especially at a time when natural gas prices are at record highs. However, developing our energy resources cannot come at the expense of our environmental resources—our water, our land and our ecosystems. “This summit provides us an opportunity to come together to ensure the owners and operators of drilling operations—both those that are in state and those from elsewhere—have a clear understanding of our laws and regulations. These rules are in place to protect our natural treasures and we will not compromise on them.” Much of the new drilling activity taking place in Pennsylvania is targeted at reaching the natural gas found in the Marcellus Shale formation. Up until recently, those natural gas deposits were either inaccessible or reaching them was cost prohibitive because the Marcellus Shale is much deeper than formations where traditional gas fields are located. However, new drilling techniques, extraction methods and higher energy costs have brought drilling activities to areas of the state unaccustomed to such operations. Pennsylvania has experienced a steady growth in oil and natural gas exploration over the past eight years, with a record number of permits issued during 2004, 2005 and 2006. During 2007, the number of permits issued leveled off at 7,241, but based on activity so far this year, DEP expects a slight increase. The department has issued 2,510 permits in 2008 to date. Developing the Marcellus Shale formation requires significant amounts of fresh water. Recent inspections by DEP and its partners have uncovered violations that threaten the state’s water resources and its environment. The violations include poorly constructed and dangerous water impoundments, inadequate erosion and sediment controls, improper waste and fluid disposal, and improper and unregistered withdrawals of water from streams. The commonwealth is addressing those issues, said McGinty. “Over the past few weeks, DEP inspectors have observed a number of violations at drilling sites operated by companies that were new to Pennsylvania,” said McGinty. “In light of those discoveries, we acted quickly to stop this harmful activity and felt it was necessary to bring all current and potential operators together to meet directly with the agencies responsible for protecting our water and other natural resources.” On May 30, DEP ordered the partial shutdown of two drilling operations in Lycoming County and began enhanced inspections of drilling operations statewide. In addition to the recent summit, DEP is scheduling formal conferences with current and prospective gas exploration companies to review permit requirements and discuss the proper storage and disposal of drilling and fracing (pronounced fracking) fluids and the registration of water withdrawals. DEP regulates oil and gas exploration and drilling under the state oil and gas laws, the Clean Streams Law, the Dam Safety Act, the Solid Waste Management Act, and the Water Resources Act. The department was joined by other agencies responsible for protecting Pennsylvania’s natural resources including the Department of Conservation and Natural Resources, the Pennsylvania Fish and Boat Commission, the Susquehanna and Delaware river basin commissions, and the state’s county conservation districts. For more information, visit www.depweb.state.pa.us, keyword: Oil and Gas.