DEP recommends overhaul to Gas Act

BY ROBERT SWIFT, Times-Shamrock Writer

The Department of Environmental Protection is recommending a major overhaul of the state Oil and Gas Act with stronger buffer zones to keep natural gas drilling away from water sources, tougher penalties and bond requirements, and a “cradle-to-grave” manifest system to track wastewater from hydraulic fracturing, or fracking.

These recommendations address issues involving environmental protection, regulatory oversight and rights of neighboring landowners that have surfaced since the deep-well drilling boom in the Marcellus Shale formation got under way in 2007 in Northeast Pennsylvania and other parts of the state.

“The amendments embody Gov. Corbett’s concepts to improve (the Oil and Gas Act), as well as some improvements needed that have come to our attention as we regulate the natural gas industry,” wrote DEP Secretary Michael Krancer in a May 27 letter to the governor’s Marcellus Shale Advisory Commission.

Regarding water protection, DEP recommends restricting well drilling within 1,000 feet of a public water supply, doubling the distance from 250 feet to 500 feet to separate a gas well from a private water well, prohibiting wells in floodplains and extending a well operator’s presumptive liability for pollution or water loss from 1,000 feet to 2,500 feet. This presumptive liability would cover problems stemming from priming a well.

Another proposal would require operators to notify property owners and local municipalities within 2,500 feet of a proposed well. DEP recommends the manifest system for fracking wastewater at high-volume wells that use more than 80,000 gallons of water.

Also DEP wants greater regulatory authority in several areas. Specifically, DEP is seeking clearer authority to revoke, withhold or deny well permits because of failures or inaction on the part of an operator.

Contained in the agency’s recommendations are increases in criminal and civil penalties for violations of the oil and gas act.

These include increasing the maximum civil penalty to $50,000 from $25,000, plus $2,000 for each day of the violation. The agency endorses a bill by Sen. Mary Jo White, R-21, Oil City, to increase well bond amounts set that date to 1984.

In addition, DEP wants authority to contract with well-control specialists to provide an emergency response in case of an accident, give them immunity from damage liability and recover costs from operators who didn’t take timely action in such cases. DEP also would like authority to put conditions on a well permit based on the potential impact on public resources.

DEP’s letter answers a call by Lt. Gov. Jim Cawley, the shale commission chairman, for policy recommendations from members as part of its deliberative process. The commission faces a July 22 deadline to make a report outlining comprehensive recommendations for developing the Marcellus Shale gas reserve.

Changes to the Oil and Gas Act would have to win approval through the legislative process.

The Oil and Gas Act was enacted in 1984 after a drilling boom in the traditional shallow gas fields of Northwest Pennsylvania spurred by an energy supply crunch.

The drilling of the deep Marcellus wells have spurred lawmakers of both parties to sponsor bills amending sections of the act. But DEP’s recommendations are the most comprehensive to date.

Rep. Dave Reed, R-62, Indiana, chairman of the House Majority Policy Committee, plans to take hold hearings on revising the oil and gas act this summer.