Permits Here....Get Your Permits Here...Get 'em While They're Cheap

PA DEP Gets Approval to Raise Marcellus Permit Application Fees

Pennsylvania's Environmental Quality Board today approved a Department of Environmental Protection request to impose new fees for Marcellus Shale drilling permits that will replace the $100 flat fee with a variable fee structure based on well depth. Though fees have not increased in the state since 1984, the new structure will result in a cost of $900 for a 1500' deep Marcellus Shale well plus $100.00 for each 500' of total depth. Applying for a typical Marcellus well permit with a total depth of 10,000' will cost $2,600 by the early Spring of 2009.

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Representative DeWeese Encourages DEP

Drop the Sledge and Hire More Staff

In a letter to acting Secretary of Environmental Protection John Hanger, Representative & Majority Whip, Bill DeWeese, Greene, Fayette & Washington counties, encouraged Hanger to rescind any blanket decree afflicting scientifically sound operators in the Marcellus Shale. He is, of course, referring to the DEP order banning the treatment of frac water in the Monongahela River Basin by municipal treatment plants. This decree, designed to reduce the TDS (total dissolved solids) in the river has resulted in a range of consequences from a total shut down of fraccing operations to the addition of significant costs to transport frac flowback to one of the few available treatment plants in the state. According to DeWeese, the decree makes no distinction between those operators and those of a lesser quality who might have inadequate or few pollution controls in place.

He also suggested that the agency expedite the permitting process so the natural gas industry doesn’t gravitate outside of the borders of the Commonwealth.

Press Release

SRBC Announces Streamlined Permitting Process for Consumptive Water Use

The Susquehanna River Basin Commission announced today that the permitting process for consumptive use of water from the basin has been streamlined. Among the streamlining provisions in the amended regulations, all requests for consumptive water use by the national gas industry will now be handled through SRBC’s simplified approval-by-rule process (commonly known as a general permit). To make this change possible, SRBC likewise expanded the sources of water that applicants can consider for their consumptive water use, including public water supplies, discharges from wastewater treatment facilities and other reclaimed waters, and withdrawals from other sources approved separately by SRBC.

Other key changes in SRBC’s regulations include:
- Regulating projects on a drilling-pad basis.
- Requiring project sponsors to certify compliance with state and/or federal laws for the treatment and disposal of flowback fluids or produced brines.
- Incorporating the August 14, 2008 determination by the SRBC Executive Director (which went into effect on October 15, 2008) that all quantities of water withdrawn or used for natural gas well development be reviewed.
- Limiting SRBC’s approval to five years versus the standard approval of 15 years for other types of projects.

The regulatory amendments will go into effect January 1, 2009, or when they have been published as final in appropriate federal and state registers, whichever comes later.

Press Release

PA Senate Hears Drilling Complaints

A hearing last evening at Misericordia University was called by the Senate Majority Policy Committee to explore the economic and environmental impact of drilling in the Marcellus. The most common theme throughout the evening was the time-consuming and lengthy permitting process and cumbersome regulations making it difficult for them to operate in Pennsylvania.

"I have great hopes for what the Marcellus shale play might still hold for Pennsylvania. Unfortunately, my experience to date does not lead me to be very optimistic," Wendy Straatman, president of Exco-North Coast Energy Inc...........DEP permitting delays that are "unlike anything we have seen in any other state in which we operate."

Scott Rotruck of Oklahoma City-based Chesapeake Energy Corp., predicted "ominous" consequences for Marcellus development if Pennsylvania's regulatory environment doesn't become more welcoming.

The state needs to be "careful we are not killing the goose that's laying the golden egg," said Sen. Mary Jo White, R-Venango.

"There has to be a smart way to protect what we need to protect, and at the same time (prevent) a delay that really serves no purpose," said DEP Secretary, John Hanger. "I believe there's a learning curve here for everyone involved."

Industry executives also opposed a tax on natural gas that the administration of Gov. Ed Rendell has said it is considering. "New taxes will stymie Marcellus development," said Ray Walker Jr., vice president of Range Resources Corp

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PA DEP Shoots SWPA Drillers First, Asks Questions Later

The Pennsylvania Department of Environmental Protection is investigating the source of unusually high levels of total dissolved solids, or TDS, detected at points along approximately 70 stream miles on the Monongahela River beginning at the West Virginia border to the confluence with the Youghigheny River. Test results indicate levels of up to 852 milligrams per liter which exceed the allowable 500mg/l.

To immediately address elevated TDS levels, DEP is directing all sewage treatment plants accepting gas well drilling wastewater, and which discharge to the Monongahela River or its tributaries, to drastically reduce the volume of gas well drilling wastewater they accept to one percent of their daily flow. Currently gas well drilling wastewater constitutes up to 20 percent of those plants daily flow. The restrictions will reduce the volume of drilling wastewater treated by 90 to 95 percent. The restrictions will remain in place until the levels of TDS fall below the 500 milligram per liter standard.

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NYC DEP Wants Ban on Marcellus Drilling in Certain Areas

If New York City's Department of Environmental Protection gets its way, 500,000 acres in the city's watershed would be off limits to Marcellus development. The request includes banning drilling in a one mile perimeter around the city's Catskill reservoirs and all infrastructure. Other requests that will impede development throughout the watershed are:

-Development of a new working group to develop permit conditions comprised of members from the DEP, DEC, NYS Dept of Health, US EPA,and watershed and environmental groups.

-That the DEC consult the DEP when reviewing permit applications and incorporate DEP concerns into an enforceable DEC permit.

-Add another level of review allowing public review and comment to the DEC's well permitting environmental assessment form (EAF).

-Assurance that permits from the NYS Municipal Separate Storm Sewer System SPDES are required.

-Affirmation that natural gas exploration and extraction are subject to NYC Watershed Rules and Regulations.

Full Story at http://www.nysun.com/new-york/citys-drinking-water-feared-endangered-10b-cost/83288/
NYC DEP Letter at http://s3.amazonaws.com/propublica/assets/natural_gas/emily_lloyd_letter_080718.pdf
Watershed Map http://www.nyc.gov/html/dep/html/drinking_water/wsmaps_wide.shtml

It's Not Easy Being Green

Scrambling for a seat at the Marcellus table, several environmental groups have asked New York Governor David Paterson for a moratorium on natural gas drilling until the environmental review that he promised has been completed. The signatories are the Catskill Mountainkeeper, Sierra Club Atlanta Chapter, Riverkeeper, Delaware Riverkeeper Network, Natural Resources Defense Council, Catskill Center for Conservation and Development, The Wilderness Society, and Catskill Citizens for Safe Energy.

Full Story at http://www.nytimes.com/2008/07/27/nyregion/27towns.html?ref=nyregion