On June 7, 2018, Pennsylvania Governor Tom Wolf and Department of Environmental Protection (DEP) Secretary Patrick McDonnell announced the final issuance of air permitting documents affecting oil and gas operations in the Commonwealth. DEP shortly thereafter released a suite of new materials to mark the latest step forward in implementing Governor Wolf’s Methane Reduction Strategy. The new permitting documents are controversial in so far as they represent a significant departure from the status quo, requiring operators to take a fresh look at when and where an air permit may be needed. Please read more about these program changes in this alert.
On November 30, 2017, the Pennsylvania Department of Environmental Protection announced the details of highly-anticipated changes to its air permitting program for the oil and gas industry. The Department released in final draft form two air program general permits, “GP-5” and “GP-5A,” as well as a permit exemption known as “Exemption 38.” Plans to revise the air permitting framework were first announced in January 2016 as part of Governor Tom Wolf’s Methane Reduction Strategy for Pennsylvania. The recently updated permits and exemption are not yet in effect or legally binding, which means there may still be an opportunity to influence these critical air permitting documents. To read more: click here.
On November 13, 2017, the Pennsylvania Environmental Hearing Board issued its second opinion analyzing Article I, Section 27 of the Pennsylvania Constitution, commonly known as the Environmental Rights Amendment, in light of the Pennsylvania Supreme Court’s June 20, 2017 decision in Pennsylvania Environmental Defense Foundation v. Commonwealth (PEDF). In Friends of Lackawanna v. DEP and Keystone Sanitary Landfill, EHB Dkt. No. 2015-063-L (November 10, 2017) the EHB applied the principles set out in PEDF and upheld a landfill permit renewal.
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On October 14, 2017, the DEP published notices of availability for a trio of draft Technical Guidance Documents (TGD) in the Pennsylvania Bulletin. Each of these TGDs proposes policy departures from current practices in both the form and substance of the respective TGD. Two of them, Policy for the Development and Publication of Technical Guidance and Policy for the Development and Review of Regulations, are significantly less detailed than their predecessor TGDs. For instance, the draft TGDs omit internal procedural steps and checkpoints involved in the DEP’s promulgation of new technical guidance documents and regulations. The revisions, if finalized, will affect those regulated and public entities who routinely participate in the DEP’s TGD and regulatory development process.
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On April 27, 2016, the Pennsylvania Department of Environmental Protection (DEP) announced that it has initiated an “unprecedented expansion” of the Commonwealth’s particulate matter air monitoring network to include additional monitors in areas near natural gas development. The expansion project will include 10 additional DEP monitoring stations and has a target completion date of fall 2017.
DEP plans to implement the expansion project in three stages, with one monitoring station added to each of 10 counties. DEP completed Phase 1 earlier this year with the addition of air monitoring stations in Towanda Township, Bradford County, and Holbrook Township, Greene County. The Department expects to complete Phase 2 by the end of 2016 by adding monitoring stations in Fayette, Indiana, Lycoming, Susquehanna, and Wyoming Counties. Phase 3 has a target completion date of fall 2017 and will include air monitoring stations in Clarion, Jefferson, and McKean Counties.
On January 19, 2016, Pennsylvania Governor Tom Wolf and the Department of Environmental Protection (DEP) announced a sweeping new regulatory strategy for reducing methane emissions from oil and natural gas operations in the Commonwealth. Methane, the primary constituent of natural gas, is considered by federal and state agencies to be a potent greenhouse gas which contributes to climate change. Governor Wolf stated that Pennsylvania, as the nation’s second-largest producer of natural gas, is “uniquely positioned to be a national leader in addressing climate change.”
The Pennsylvania methane reduction strategy is expected to result in significant changes to the air permitting and regulatory regime that currently applies to oil and natural gas industry sources. For more information, read our Administrative Watch.
The Pennsylvania Department of Environmental Protection (DEP) recently announced the draft final revisions to the “Environmental Protection Performance Standards at Oil and Gas Well Sites” rulemaking (Chapters 78 and 78a). Following the most recent round of public comment, DEP decided not to include the provisions for noise mitigation and centralized storage tanks for wastewater in the final regulations. DEP indicated that a separate process is more appropriate for noise mitigation due to the complex nature of noise mitigation. With regard to centralized storage tanks, DEP decided it would continue to regulate these facilities under the residual waste regulations. The amendments will be discussed at the upcoming meetings of the Conventional Oil and Gas Advisory Committee and, Oil and Gas Technical Advisory Board in late August and early September, respectively.
Earlier this week the Pennsylvania Department of Environmental Protection (DEP) released the 2013 air emissions inventory for the natural gas industry. Operators submit emissions data to DEP on an annual basis. Compared to 2012, the 2013 inventory includes data from 1,590 additional well sites and 33 additional midstream facilities. Despite an increase in the number of facilities reporting emissions data, the 2013 inventory shows a decrease in methane and carbon monoxide emissions compared to 2012. The 2013 inventory also shows increased emissions of nitrogen oxides, particulate matter, sulfur dioxide and volatile organic compounds.
On Saturday, November 15th, the Pennsylvania Department of Environmental Protection (DEP) published proposed changes to its General Plan Approval and/or General Operating Permit (BAQ-GPA/GP-5 or General Permit) for Natural Gas Compression and/or Processing Facilities (known as “GP-5”) issued in February 2013. Operators may apply for coverage under GP-5 to authorize the construction, modification, and/or operation of a natural gas compression and/or a gas processing facility.
Among other proposed changes, DEP has deleted the applicability threshold requirement for greenhouse gases in response to the United States Supreme Court’s Utility Air Regulatory Group (UARG) v. Environmental Protection Agency (EPA) decision issued on June 23, 2014. DEP also added a requirement to submit an annual compliance certification for GP-5; the annual certification would be due to DEP by March 1 each year. Public comments on the proposed revisions to GP-5 will be accepted by DEP until January 6, 2015.
Two bills primarily sponsored by PA Representative Tina Pickett (Republican, Bradford/Sullivan/Susquehanna) have recently passed the State House and Senate. House Bill (HB) 2278, Unconventional Well Report Act, would require the operator of an unconventional well to file a monthly report specifying the amount of production with the Department of Environmental Protection. Currently, production is reported to the Department every six months. HB 402, Recording of Surrender Documents from Oil and Natural Gas Lease Act, states that a lessee shall deliver to a lessor a surrender document not more than 30 days after the termination, expiration or cancellation of an oil or gas lease. If a lessor does not receive such notice within the 30 day time period, the lessor is permitted to serve notice on the lessee. A lessor who has served notice and fails to receive a timely challenge from the lessee may record an affidavit of termination, expiration or cancellation of a lease in the recorder’s office of the applicable county. The bills are awaiting review by Governor Tom Corbett.
Natural Gas Intelligence reports that the Marcellus Shale Coalition has awarded Pennsylvania-based consulting firm Environmental Standards Inc. with a contract to manage a study that will analyze the presence of methane in groundwater samples. Specifically, the study will seek to establish a consensus standard for analyzing light gases in groundwater, both before and after the drilling process. Although there are several published procedures for analyzing methane in water sources, none are widely adopted, nor has the U.S. Environmental Protection Agency published any particular one. The goal is to establish uniform standards that will provide more reliable test results. The study will examine the practices of the Pennsylvania Department of Environmental Protection’s laboratory, as well as 10-15 other private laboratories across the country. The final report is expected by the end of the first quarter of 2015.
Yesterday the Pennsylvania Department of Environmental Protection (DEP) released its inaugural Oil and Gas Annual Report, which showcases DEP’s regulation of Pennsylvania’s oil and gas industry. The Report describes the structure of DEP’s Oil and Gas Program and provides an overview of how Pennsylvania shale plays are connected to energy security. The Report also provides examples of the agency’s work in the areas of “Permitting”, “Inspections,” “Compliance and Enforcement,” and “Stray Gas Investigations,” including mention of a database created by DEP for stray gas investigations with information dating back to 1987. In the section devoted to “Regulatory and Policy Development,” DEP indicates that it anticipates presenting a final Chapter 78, Subchapter C rulemaking to the Oil and Gas Technical Advisory Board in 2014. The Report concludes with highlights of DEP “Innovations” and a summary of studies and proposed regulations set for 2014.
The Pennsylvania Department of Environmental Protection (DEP) recently published on its website a series of video training tutorials to provide guidance on how to complete quarterly well inspections under the Mechanical Integrity Assessment (MIA) requirements. MIA forms, instructions and user guides are also available on DEP’s website.
DEP also recently published a Frequently Asked Questions (FAQ) document addressing the Bureau of Air Quality’s General Permit-5 (GP-5) and Plan Approval Exemption Category No. 38. The GP-5 is a General Plan Approval and/or Operating Permit used to permit emissions from natural gas gathering, compression and/or processing facilities that are minor air contamination facilities, while Exemption Category No. 38 concerns a permit exemption for air emission sources located at a well pad.
Today, the Pennsylvania Department of Environmental Protection (DEP) issued a press release to announce the opening of the public comment period for its long-awaited proposal to revise the oil and gas regulations at 25 Pa. Code Chapter 78 (environmental protection standards). The comment period will open this Saturday when the official notice is published in the Pennsylvania Bulletin. Comments will be accepted through February 12, 2014.
During the public comment period, the Pennsylvania Environmental Quality Board (EQB) will host seven public hearings across the Commonwealth. Persons wishing to present testimony at a hearing must contact the EQB at least one week in advance. In addition to the EQB hearings, DEP will host two informational webinars on Thursday, December 19th from 2:30 – 3:30pm and Friday, January 3rd from 9:30 – 10:30am. DEP will answer questions about the rulemaking during the webinars.
Earlier this week, the Senate of Pennsylvania unanimously confirmed Ellen Ferretti as Secretary of the Department of Conservation and Natural Resources (DCNR), and in a 42-8 vote, also confirmed Chris Abruzzo as Secretary of the Department of Environmental Protection (DEP). Abruzzo’s background is mainly in prosecution but he also worked as Deputy Chief of Staff to Governor Corbett and in the drug enforcement section of the Pennsylvania Attorney General’s office. Ellen Ferretti previously served as DCNR’s Deputy Secretary for Parks & Forestry and has worked on environmental issues both in and out of government. Both nominees have already been serving in their respective positions; Abruzzo since April, and Ferretti since June.