The State Journal reports that West Virginia lawmakers introduced 60 energy-related bills in the first two days of the 2013 regular West Virginia legislative session. Twenty four of the bills concern natural gas, while 16 address a broad range of coal-related issues. In addition, The Dominion Post reports that West Virginia’s joint Legislative Rule Making Review Committee gave a “qualified blessing” to the rules proposed by the Department of Environmental Protection (DEP) to govern horizontal well development. WVDEP developed the proposed rules in 2012 in an effort to implement the Natural Gas Horizontal Well Control Act of 2011. In the next step of the rulemaking process, the proposed rules will be reviewed by House and Senate committees.
The Muskingum Watershed Conservancy District approved a lease with Antero Resources covering 6,500 acres located at Seneca Lake in Guernsey and Noble counties. The district, which stretches from southern Akron to the Ohio River, is now one of the biggest beneficiaries of the Utica Shale as a result of this lease and two prior leases executed in 2011 and 2012. The district has used initial leasing bonuses for debt payment and investments in public access and recreational facility improvement, with plans to utilize further payments for an additional $80 million worth of improvements and deferred maintenance.
The Charleston Gazette reports that Kureha PGA is making a product in its Belle facility that may be used by oil and gas companies. The product is a polyglycolic acid resin (PGA) called Kuredux, a high-performance polymer that has been certified as a biodegradable plastic in the U. S., Europe and Japan. Kureha PGA indicates that the product will help to minimize the damage caused to subterranean formations during production of oil and gas and will also help to minimize the number of operating steps necessary to bring wells on-line faster. According to the article, the product is meant to be used underground until it serves it purpose, and then biodegrades.
On February 12, 2013, two environmental groups reportedly filed a lawsuit in federal district court against the Town of Sanford, New York, alleging that the town board unconstitutionally restricted free speech rights by passing a resolution that precludes further discussion of natural gas drilling at monthly board meetings. Sanford, with a population of 2,400 residents, is located near the Pennsylvania border and lies above the Marcellus Shale formation. In September 2012, the board unanimously approved a resolution which provided that “hereafter no further comment will be received during the public participation portion of this or any future meeting regarding natural gas development,” until the New York State Department of Environmental Conservation completes its environmental review of hydraulic fracturing. The board has heard extensively from both sides of the hydraulic fracturing debate and, according to Sanford attorney Herb Kline, “the fracking discussions occupied so much time during the public participation portion of the prior meeting that the town board was not able to accomplish its regular business.” As an alternative, Mr. Kline said the board is willing to accept written materials regarding gas drilling.
On February 13, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA) published a notice in the Federal Register proposing to revise its annual report for gas distribution systems. According to the notice, PHMSA would like operators to specify the commodity transported in their distribution systems, to identify their operating status (i.e., as a municipal, privately-owned, or other system), to modify the category of causes for pipeline leaks, and to include additional categories of causes for excavation damage. PHMSA is seeking public comment on these proposals before sending the revised report to the White House Office of Management and Budget for approval as required under the Paperwork Reduction Act of 1995.
Ohio’s rules governing naturally occurring radioactive waste, already among the most restrictive in the country, may be getting even tighter. Several Ohio government agencies are proposing legislation that would tighten regulations dealing with radioactive waste generated during oil and gas drilling activities. Such low-level radioactive material is naturally occurring, and poses little risk to human health. However, the new rules would require materials with elevated levels of radiation to be disposed of in special landfills, or be treated and undergo testing before being disposed of in regular landfills under the supervision of the state EPA.
The Pennsylvania Senate Committee on Environmental Resources and Energy unanimously approved Senate Bill 411 on Tuesday. The Herald-Standard reports that the bill would provide liability protection from the perpetual treatment of mine water at its source when the end use is for hydraulic fracturing or industrial use. The bill would provide offer liability protection through a Pennsylvania Department of Environmental Protection process developed in the Environmental Good Samaritan Act. The issue was among the policy recommendations made by the Governor’s Marcellus Shale Advisory Commission in a 2011 report. The bill was previously approved by the Senate, but failed to get House approval during the last legislative session. The DEP also recently issued a white paper regarding the use of acid mine drainage in drilling operations.
On February 12, 2013, the Pennsylvania Department of Environmental Protection released its 2011 emissions data from the unconventional drilling industry, which accounts for emissions from natural gas production and processing facilities from “57 operators of unconventional wells and 40 mid-stream operators of 150 compressor stations.” In its Fact Sheet, the DEP notes that there were significant reductions for a number of air contaminants from 2008 (the last year that the DEP completed an emissions inventory) to 2011, including nitrogen oxides and sulfur oxides. In a press release, the Marcellus Shale Coalition noted that according to this 2011 air emissions data, “Marcellus Shale development accounts for less than 3 percent of nitrogen oxide (NOx) and 1 percent of the total volatile organic compounds (VOC) emitted each year in the Commonwealth.” Pursuant to the Oil and Gas Act of 2012 (Act 13), owners and operators of these point sources must report these air emissions annually to the DEP by March 1 each year. 2012 air emission data is due to the PADEP on March 1, 2013.
The Pittsburgh Tribune-Review reports that certain environmental groups and drilling companies will soon collaborate to establish the Institute of Gas Drilling Excellence, an organization that will measure drilling companies’ performances against the best industry standards. The report lists the Environmental Defense Fund, PennFuture, The Heinz Endowments and drilling companies EQT and Shell as collaborators in the institute.
At a recent press conference, West Virginia Governor Earl Ray Tomblin was reportedly confident that an ethane cracker will be built in West Virginia “in the future.” Stating only that the Commerce Department “continues to talk with those interested,” Governor Tomblin expressed hope for a potential cracker plant to be located in West Virginia. Although Shell Chemical announced on March 15, 2012 that it would consider a site in Beaver County, Pennsylvania, to build its ethane cracker plant, the Shell deal is not final. Pennsylvania Governor Tom Corbett has already offered Shell a tax credit incentive valued at $1.65 billion over 25 years.
The Ohio Department of Job and Family Services has issued its first quarterly report which summarizes employment and workforce trends related to specific oil and gas activities in Ohio. According to the report, over the past year, core industry employment (such as pipeline construction and well drilling) rose 17 percent, ancillary industry employment (such as freight trucking and environmental consulting) rose 3.1 percent and 39 core business establishments were added to the State.
The State Journal reports that Fairmont Brine Processing wastewater recycling facility has delayed its re-opening by a few months. The facility began operations in 2009 but shut down shortly thereafter due to an unmanageable level of corrosion. Wastewater recycling was accomplished through settling, filtration and multi-phase evaporation processes. Fairmont Brine is reportedly hoping to close on funding for the re-opening project by the end of February, and is looking at a potential start date of September 2013.
In a statement also released Wednesday, Thomas E. Stewart, executive vice president of the Ohio Oil and Gas Association (OOGA), supported the decision of the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management to revoke permits belonging to D&L Energy, Inc. and Hardrock Excavating, LLC. The companies are accused of dumping an estimated 40,000-50,000 gallons of oilfield wastewater into a Mahoning County storm sewer. OOGA cautioned not to let the acts of one individual or company diminish the good reputation of injection well operators across the area who strictly comply with the state’s laws and regulations.
The Allegheny County Airport Authority has approved an oil and gas lease with CNX Gas Co. that could net the Authority as much as $500 million from an up-front payment and estimated royalties, the Pittsburgh Post-Gazette reports. The agreement provides the Authority with an upfront rental payment of $50 million and will cover the 9,263 acres of mineral rights controlled by the Authority. Authority representatives said CNX was tentatively planning to develop six to seven well pads on the property and to drill 45 to 50 wells on those pads. The deal still requires approval from the Allegheny County Council.
Three Chesapeake employees helped rescue a man who had fallen through the ice at Atwood Lake in Dellroy. The employees were getting ready to leave for work when they heard faint noises coming from the lake. They quickly headed for the lake and found that 47-year-old Eugene Scott had fallen through the ice. With the assistance of another passerby, the Chesapeake employees were able to help pull Scott from the lake using a rope. Scott was treated and released from the hospital. The Chesapeake employees changed from their wet clothes and headed back to work.