PEC Statement on the Commonwealth Court’s Decision Concerning Act 13

Yesterday the Commonwealth Court of Pennsylvania issued a significant decision that reaffirmed the constitutional rights and responsibilities of local governments to enact rational and necessary controls on natural gas activities. The decision also invalidated provisions of Act 13 that inappropriately expanded waiver allowances to permit siting standards for unconventional gas wells.

The Pennsylvania Environmental Council fully supports and commends the Commonwealth Court’s decision. Responsible development of natural gas in Pennsylvania requires thorough consideration of our unique community and natural resources, with appropriate site-specific and regional protections in place as a result of that analysis.

Responsible development of natural gas is important to the people and economy of Pennsylvania, but of equal importance are appropriate community, health, and environmental protections. The Court’s decision ensures that Pennsylvania’s Oil & Gas Act better meets those goals.

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PEC Statement on Chemical Disclosure in Act 13

The chemical disclosure provisions of Pennsylvania’s new law relating to shale gas drilling are not perfect, but they are far ahead of what was required before. Since the passage of Act 13, there has been a lot of discussion on the disclosure for chemicals used in the hydraulic fracturing process. Some of this discussion has mischaracterized the new law as we understand it.

During deliberations of the Governor’s Marcellus Shale Advisory Commission last year the Pennsylvania Environmental Council (PEC), recognizing there were no health representatives on the Commission, proactively reached out to the health community (Drexel School of Public Health and University of Pittsburgh School of Public Health) to solicit specific recommendations for consideration in the Commission’s final report. PEC submitted those recommendations and all were included in the final report. Since that time PEC has consistently advocated for prompt action on those recommendations, which do not require new legislation for implementation. To date these recommendations await action.

PEC’s primary focus on the legislation (House Bill 1950 and Senate Bill 1100) that ultimately led to Act 13 was improvements to the environmental protection provisions in the Oil & Gas Act, consistent with our landmark July 2010 Policy Report, our point-by-point May 2011 Legislative Proposal for amending the existing law, and our November 2011 response document to House Bill 1950 and Senate Bill 1100. The latter two proposals were developed in partnership with the Chesapeake Bay Foundation.

As the public legislative debate came to a close at the end of 2011, and worked shifted to resolving differences between the House and Senate bills, PEC saw an opportunity to improve the chemical disclosure provisions in the legislation. It was apparent that, without a strong push, the final bill would likely have done nothing more than codify the existing agency rules for disclosure. These rules were anemic to say the least.  They only required disclosure of a partial subset of the chemicals used in hydraulic fracturing treatment. And there was no meaningful public reporting of even that partial list.

Working with legislative leadership and the Governor’s office, PEC was able to help secure language that will now require disclosure of all chemicals, along with the concentrations at which the chemicals are used on a well-by-well basis.  Further, in addition to reporting these chemicals to the Department of Environmental Protection (DEP), operators of unconventional wells will be required to post their chemical disclosures on FracFocus.org, a website that is rapidly becoming the main disclosure platform used by states and operators around the country.

Yes, just as has been the case in every single state that has adopted chemical disclosure requirements, operators will be allowed to assert trade secret claims to keep the identities of certain chemicals secret. Here, PEC fought to make sure trade secret claims would be subject to Pennsylvania’s Right-to-Know law.  Because we were successful, any citizen will have a right to challenge trade secret assertions – giving Pennsylvania one of the better systems of any state in the nation for policing trade secret claims.

Now, however, concerns have been raised about the chemical disclosure language some are calling a “gag order” on medical professionals.  Our understanding of the language is this:

The language provides a mechanism to ensure that medical professionals can quickly get direct access to chemical information for which trade secret protections have been claimed in cases where it’s needed for diagnosis or treatment of a patient.  As part of the process, companies can require a confidentiality agreement when circumstances permit, but the law ensures that medical professionals can get the information first.

PEC did not write this language. This language replicates the same process that is in place for the same purpose in other states and that has existed for decades in the federal Occupational Health and Safety Act (OSHA) and the federal Emergency Planning and Community Right-to-Know Act (EPCRA).

Our understanding is that without such language, there’s nothing to guarantee that a doctor will be able to compel companies to turn over trade secret information quickly or even at all.

Prior to Act 13, health professionals would have had to submit a request to DEP for trade secret information, or pursue a Right to Know claim. And even after passage of Act 13, they still have that option available to them without any new limitations.

If the professional health community believes the framework unduly restricts the ability of medical professionals to get access to chemical information and use that information to treat patients or address public health impacts, then Pennsylvania needs an open and immediate discussion on how the disclosure provisions of Act 13 need to be changed.

PEC fully supports this discussion. We maintain our long standing principle that public health is a fundamental element for proper management of shale gas development in Pennsylvania.

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Looking Ahead: What’s Next after Passage of Act 13

The continuing work of adapting Pennsylvania laws and regulations took a significant step forward in February 2012 with the signing of Act 13. But, for as difficult as it was to reach this milestone and though the legislation falls short of our expectations in certain aspects, it is only a step on the path to comprehensive energy development and regulation.

See PEC’s full analysis of Act 13.

Unconventional shale gas drilling in Pennsylvania is still at the start of what appears to be a century of development and production. And we are also at the beginning of understanding and adapting to a new era of drilling and production technologies that have redefined gas production in Pennsylvania and continue to evolve as new processes emerge and are utilized.

To manage with the environmental challenges posed by this growing industry, the state has updated the regulations governing cementing and casing, production reporting, and total dissolved solids in wastewater. It has called for voluntary changes in wastewater handling, increased permitting fees, changed the process for erosion and sedimentation permits, and enacted Act 13. The Pennsylvania Environmental Council (PEC) will continue to seek more stringent regulation and enforcement, and continuously work to make Pennsylvania the model for deep shale drilling and development nationwide.

While we look forward to revisiting these issues, PEC is also focused on those steps that have been left undone.  One of our highest priorities is to ensure that the environmental protection standards set forth in Act 13 are expeditiously enacted into regulation by DEP.  In fact, we believe that there are a number of standards in the Act that DEP and the industry can implement immediately through a repeat of the DEP Secretary’s call for voluntary action on the part of the shale gas industry.

Further, we encourage DEP and the Governor’s office to promptly implement the recommendations from the Governor’s Marcellus Shale Advisory Commission that do not to need legislative action, including both environmental protections and those related to public health. This is also an immediate imperative as there are a number of critical pieces that remain outstanding from that report.

PEC’s implementation priorities for 2012 includes:

Act 13 (Agency Rulemaking or Policy Revisions)

  • Criteria for Water Management Plans consistent with new standards included in Section 3211.
  • Criteria for new well site containment standards, including siting restrictions in floodplains [Sections 3218.2 and 3215].
  • Criteria for wastewater tracking and reporting requirements pursuant to Section 3218.3.
  • Criteria for tacking and reporting of air contaminant emissions pursuant to Section 3227.
  • Procedures for disclosure of chemicals used in the hydraulic fracturing process pursuant to Sections 3222 and 3222.1.

Marcellus Shale Advisory Commission Report Recommendations

  • Legislation establishing construction standards for private water wells. [9.2.17]
  • Promote the use of non-freshwater sources for hydraulic fracturing. [9.2.22]
  • Openly identify and establish adaptive Best Management Practices for the industry that can be utilized in addition to regulatory measures. [9.2.23]
  • Maintain public benchmarking of Pennsylvania’s regulatory management programs. [9.2.25]
  • Enhance planning efforts and resources by proactively identifying areas of high ecological value; establish additional criteria or restrictions for development in or near these areas. [9.2.26]
  • Improve planning and permit review through adoption of enhanced site assessment criteria. [9.2.29]
  • Advance public health evaluation and reporting efforts. [9.2.37 to 9.2.43]

Looking ahead, PEC remains confident that the best way to manage the impacts of the burgeoning shale gas industry is through aggressive adaptive management. To achieve this, policymakers, regulators, industry, communities, and advocacy groups must all work toward development, understanding, and enforcement of strong and evolving standards that are protective of human health and the environment.

For our part, PEC pledges to continue on this path and will continue to fight for the standards that we believe are necessary to allow the industry to develop but within strict parameters that protect Pennsylvania’s common good.

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PEC to Leadership in Harrisburg: Its Time to Act

PEC sent the following message in to the Governor and Leadership in the General Assembly today:

After several years of work and debate, Pennsylvania stands close to passage of meaningful updates to the decades-old Oil & Gas Act.  On behalf of the Pennsylvania Environmental Council (PEC), we are writing to urge you to quickly reconcile and pass these critical protection provisions before the end of the year.

Because shale gas development has already established a tremendous footprint in our state, and it will only continue to grow, it is essential that these protections be enacted now – they should not be captive to further delays resulting from negotiation on an impact fee or local land use controls.

PEC and its partnering environmental organizations (Chesapeake Bay Foundation, The Nature Conservancy, and Western Pennsylvania Conservancy, who all served on the Governor’s Marcellus Shale Advisory Commission) have developed a summary annotation (available here) of what we believe is essential in the resulting reconciliation process – whether the framework of SB1100 or former HB1950 is the ultimate vehicle of choice.   This summary is in line with the recommendations of the Marcellus Shale Advisory Commission as well as the objective and inclusive work that PEC and our other partners have performed through consultation with agencies, industry, and communities.

With each passing day Pennsylvania continues to manage this widespread, industrial-scale activity pursuant to a severely outdated law.  It is time to act.

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PEC and CBF Statement on Marcellus Legislation

Last week PEC and the Chesapeake Bay Foundation held a press event urging lawmakers to pass meaningful and comprehensive legislation, before the end of the year, to update the Pennsylvania Oil & Gas Act.  Here is the Press Statement.

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PEC Responds to S.B. 1100

Read PEC’s response to the amendment and passage of SB1100 from the Senate Appropriations Committee.  While the legislation is still considered a work in progress by leadership in the Senate, a number of key environmental protections must be added to the bill before final consideration —  PEC’s response outlines what’s still missing.

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Comparative Analysis of Marcellus Shale Advisory Commission Report

PEC has created a summary document comparing PEC’s May 2011 Legislative Proposal for amending the Oil & Gas Act with the final report of the Governor’s Marcellus Shale Advisory Commission.

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PEC Statement on Marcellus Shale Advisory Commission Report

Today Governor Corbett’s Marcellus Shale Advisory Commission has released its recommendations for managing the state’s burgeoning natural gas industry.  The Pennsylvania Environmental Council (PEC) is encouraged by the fact that there was consensus among Commission members on a majority of measures surrounding environmental protection and public health and safety.  Many of these recommendations were originally proposed by PEC earlier this year and were introduced to the Commission by PEC chairman Tony Bartolomeo.

So now it’s time to act.  And act fast.

We’ve been discussing and debating Marcellus Shale legislation and regulations for more than two years.  And with each passing day, the Department of Environmental Protection approves permit applications for new wells to be drilled somewhere in Pennsylvania.  The people of Pennsylvania have waited patiently for their elected officials to lead on this issue.  While PEC does not support every recommendation in the Commission Report, there are a significant number of recommendations that did achieve consensus and which deserve immediate attention.

With this consensus among industry and environmental community interests, as well as the DEP, on how to better regulate Pennsylvania’s Marcellus Shale gas industry, the time has come for the Governor and legislature to put this plan into action.

The Pennsylvania Environmental Council calls on Governor Corbett to request a special session of the General Assembly for the express purpose of enacting legislation that will govern the development of natural gas from Pennsylvania Marcellus Shale.

Specifically, we believe this legislation should amend the Pennsylvania Oil & Gas Act as follows:

  • Incorporate all applicable environmental protection recommendations outlined in the Marcellus Shale Advisory Commission’s report.
  • Expand the permitting process to allow for the option of regional comprehensive planning, in advance of individual site approvals, as a means to reduce surface and cumulative impacts of regional importance.
  • Give DEP the authority to deny permits based on impacts to public resources; and expand the list of public resources to include additional sensitive ecological areas such as designated high quality or exceptional value waters.
  • Ensure that DEP has sufficient authority to quickly adapt policies and controls in response to new technologies or information that are still unknown.

While the Marcellus Shale Advisory Commission report touches upon issues that go beyond the purview of the Oil & Gas Act and in themselves require immediate attention, we believe it is now clear that meaningful and effective legislative updates to the Act can be accomplished quickly this fall. The path has been made clear – we must act now.

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Joint Statement on Marcellus Shale Advisory Commission Report

Marcellus Shale Advisory Commission Members:
Matthew J. Ehrhart, Chesapeake Bay Foundation
Anthony S. Bartolomeo, Pennsylvania Environmental Council
Ronald L. Ramsey, The Nature Conservancy
Cynthia Carrow, Western Pennsylvania Conservancy

Last week, members of Governor Tom Corbett’s Marcellus Shale Advisory Commission reviewed and voted on almost one-hundred policy recommendations which will be announced by the Governor today. Those recommendations will be considered in crafting future policy and regulatory guidance to assist the Commonwealth in how to best move forward and manage natural gas drilling operations. The final recommendations, the “Report of the Marcellus Shale Advisory Commission” was presented to the Governor earlier today.   The four environmental representatives on the Commission today release the following statement:

“As representatives of the four environmental organizations appointed to the Commission, we appreciated the opportunity to serve in this capacity and took our role seriously as we presented the group with real environmentally-focused concerns and scenarios.

While we, collectively and individually, did not support every recommendation that will be contained in the report,  we agree that a number of the recommendations—including several dealing with environmental issues—propose significant  improvements in state law and policy intended to effect better management of the shale gas industry.

The report will propose, among other things:

  • meaningful expansion of well site setbacks from surface waters and  wetlands, water supplies, floodplains, and structures;
  • increased bonding and penalties for operators; enhanced public disclosure of well reports and enforcement activities;
  • mandated site inspection;
  • greater information gathering and analysis in the permitting process;
  • improved tracking and reporting of hydraulic fluids and wastewater;
  • measures designed to improve protection of vulnerable wildlife species and important ecological areas;
  • using revenue from an impact fee for community-based environmental, conservation and recreation projects;
  • improved siting of pipelines; and
  • greater restrictions to protect public resources.

Many of these recommendations meet or exceed previously proposed changes to the Pennsylvania Oil & Gas Act identified by the Pennsylvania Environmental Council and Chesapeake Bay Foundation.

In addition to these important environmental considerations, we also agree about the need for increased attention to the protection of human health.  The report recommends a number of actions involving the Department of Public Health obtaining, evaluating, and reporting on public health findings. We encourage the General Assembly to work collaboratively with local groups to develop additional safeguards to protect the residents of the Commonwealth.

We share concern, however, about several recommendations contained in the report.  Among these concerns are:

  • potential threats to the integrity of the State’s Oil and Gas Lease Fund;
  • lack of clear environmental or surface impact reduction standards relating to the concept of pooling;
  • failure to specifically include Growing Greener or the Environmental Stewardship Fund in the impact fee provisions;
  • adding natural gas to Tier II of the Alternative Energy Portfolio Standards; and
  • no clear prohibition on surface impacts from future state forest land leasing.

We consider the report to be a meaningful first step toward improving Pennsylvania’s oversight of shale gas extraction, but additional improvements must be accomplished as the debate shifts to the General Assembly.  We will continue to promote action to address these concerns in coming months. It is imperative that the General Assembly and Governor adopt –no later than the end of this year – a meaningful and comprehensive reform of Pennsylvania’s management of this wide-scale industry.   We look forward to working with the Administration, General Assembly, and all stakeholders on the future consideration of recommendations in the report and additional matters related to the management of shale gas development in Pennsylvania.”

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PEC Releases Conservation Lease Guide for Landowners

The Pennsylvania Environmental Council has released an online Lease Guide for landowners contemplating leasing their property for Marcellus Shale development.  The Guide provides a suite of conservation principles that landowners may consider in negotiating a lease.

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