Posts Tagged ‘Camille’

By Laura Legere (Staff Writer)
Published: June 29, 2010

Gas tax law could OK ‘forced pooling’

Firms would drill from nearby site

The Marcellus Shale natural gas industry wants to see legislation attached to any severance tax adopted by the state that would force property owners who refuse leases to allow drillers to gather the gas beneath their land, an industry coalition leader said Monday.

Calling it the most economical and conservative land-use approach to drilling for gas, David Spigelmyer, Chesapeake Energy’s regional vice president for government relations, said in a Times-Tribune editorial board meeting that “forced pooling” is a key element of any legislation the state’s Marcellus drillers could support and is actively being discussed during budget negotiations in the capital.

Mr. Spigelmyer said he does not expect forced pooling to be adopted in the coming days as part of budget talks, but he said “an agreement” likely will emerge with the budget “to talk about (the severance tax) holistically” with other industry-supported legislation on forced pooling.

The Marcellus Shale Coalition, an organization of the state’s Marcellus drillers, “has not said, ‘Hell no’ ” to a severance tax, said Mr. Spigelmyer, the group’s vice chairman. “We’ve said there needs to be a broader discussion.”

A forced pooling statute would require landowners without gas leases to allow a company to drill under their land from a nearby leased property, and it would define the amount of royalties those holdout landowners are owed for their gas.

Eminent domain

Such a statute would help avoid an unnecessary proliferation of wells, Mr. Spigelmyer said, but critics say it is a form of eminent domain.

In May, State Rep. Camille “Bud” George, D-74, Houtzdale, Clearfield County, called it a “controversial, ugly provision” through which “an intrusive government would be depriving an individual’s property rights to benefit private companies.”

Limit zoning laws

As part of severance tax discussions, the industry also wants to limit municipal ordinances that attempt to regulate where gas drilling can occur – a development spurred by a state Supreme Court decision last year that opened the door for municipalities to have some control over where gas wells are located through zoning.

“We’re willing to work with municipalities, but we’re seeing … an extraordinary number of ordinances that are coming into play that basically zone out development completely,” Mr. Spigelmyer said. “We want to make sure we don’t have ordinances in place that basically remove your rights.”

Negotiations over a severance tax are at the center of ongoing state budget decisions, and Mr. Spigelmyer said Monday a Pennsylvania tax needs to look like those in other, competing shale-gas producing states.

Pennsylvania has benefitted from increased drilling without a severance tax, he said, but an unfair tax and recently introduced legislation to halt drilling in the state will deter development.

“I’ve already seen where companies have walked away from joint venture opportunities to invest in Pennsylvania because of the mere inference of a moratorium,” he said.

“It has the potential to, and I think it already has, limited capital investment in the commonwealth.”

Contact the writer: llegere@timesshamrock.com

View article here.

Copyright:  The Scranton Times

Elected official who held hearing in area last week on natural gas drilling says he was responding to pro-energy group attack.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

A state representative says he was unfairly attacked in a press release by a pro-energy group after holding a public hearing in the Back Mountain last week.

State Rep. Camille “Bud” George, majority chair of the House Environmental Resources and Energy Committee, issued a rebuttal Friday, saying that “money and misinformation are the hallmarks of a gas industry attack titled, ‘Rep. George’s Fact-Free Fact-Finding Mission.’”

Energy In Depth sent the press release to media outlets on Thursday, a day after George convened a committee hearing at 1 p.m. in the Lehman Township Municipal Building to hear testimony on the impact of Marcellus Shale drilling and proposed legislation that would put more environmental safeguards in place.

State Rep. Phyllis Mundy, D-Kingston, invited George to have a hearing in her district, where EnCana Gas & Oil USA plans to drill the first natural gas exploratory well in Luzerne County in May or June. The well will be drilled in Lehman Township.

Area residents and lawmakers are concerned for many reasons, including the fact that the drill site would be less than two miles from the Huntsville and Ceaseville reservoirs, which supply drinking water to nearly 100,000 area residents.

Energy In Depth’s press release classified the hearing as a “pep rally staged by anti-energy activists and like-minded public officials in Northeast Pennsylvania.”

“Characterized as a ‘field hearing’ by … George, who held the event as far away as he could from his home in Clearfield County, the forum included representatives from the Sierra Club and Clean Water Action league, as well as testimony from a local podiatrist and someone describing himself as a ‘naturalopathic’ physician. The only thing missing? Anyone in possession of real, genuine facts related to responsible gas exploration in the Commonwealth,” the release stated.

In response, George said the most troubling aspect of “the attack by Energy In Depth, whose members include the Pennsylvania Independent Oil and Gas Association, is its slur of concerned lawmakers and citizens of Northeastern Pennsylvania as anti-energy activists.”

George noted that the committee had a hearing on Feb. 18 in Clearfield County, where the president of the Marcellus Shale Coalition and executives from some of the leading gas companies in Pennsylvania, including Range Resources and Chesapeake Energy, testified. He also participated two weeks ago in a House Democratic Policy Committee hearing in Ebensburg that included testimony from Chief Oil & Gas and Chesapeake. Ebensburg is in the Altoona area.

“The industry has not been an unwanted stranger at hearings,” George said.

Energy In Depth’s press release then listed quotes – pulled from a story in The Times Leader – of people who testified and rebutted them with quotes from gas industry representatives, a state Department of Environmental Protection fact sheet and Gov. Ed Rendell.

Energy In Depth pointed to testimony from Mundy in which she said she supports House Bill 2213 “which would among other things … require full disclosure of the chemicals used in hydraulic fracturing.”

The organization then pointed to a DEP fact sheet which states that drilling companies “must disclose the names of all chemicals to be used and stored at a drilling site … that must be submitted to DEP as part of the permit application process. These plans contain copies of material safety data sheets for all chemicals … This information is on file with DEP and available to landowners, local governments and emergency responders.”

But George said that “full disclosure of the chemicals – not just the trade names – and how they are used is not (now) required.”

“The precise chemical identities and concentrations and how and when they are employed can be crucial to emergency responders and remediation efforts after spills, and is at the crux of efforts to remove the infamous ‘Halliburton Loophole’ that exempts the industry from oversight by the Environmental Protection Agency,” George said.

“The gas industry can bloat campaign coffers with money, buy discredited and ridiculed studies and poison the debate by taking statements out of context. However, its ‘best management practices’ should never be taken at face value to be the best for Pennsylvania,” George said.

Steve Mocarsky, a Times leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

House committee members hear testimony on impact of gas drilling, proposed environmental safeguards.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Members of the state House of Representatives Environmental Resources and Energy Committee came to the Back Mountain on Wednesday to hear testimony on the impact of Marcellus Shale drilling and proposed legislation that would put additional environmental safeguards in place.

Testifying were representatives of two environmental groups, a local physician active in environmental issues and a resident of Dimock Township, Susquehanna County, where the state Department of Environmental Protection ordered a gas company to provide drinking water to residents after their wells were contaminated by methane.

State Rep. Camille “Bud” George, committee majority chairman, said the committee convened at the township municipal building at the invitation of state Rep. Phyllis Mundy, D-Kingston.

Mundy said she requested the hearing because she and many of her constituents “have serious concerns about the potential impact of Marcellus Shale drilling on our streams, our land and especially our drinking water,” noting that a proposed well site is less than two miles from the Huntsville and Ceasetown reservoirs.

Noting the contamination of drinking water in Dimock Township and a recent drilling-related mud spill in Clinton County, Mundy said there was “still time to put safeguards in place to protect the environment and the public health from the negative impacts” of gas drilling.

“That is why I strongly support Chairman George’s House Bill 2213, the Land and Water Protection Act, which would, among other things, require state inspections of well sites during each drilling phase and require full disclosure of the chemicals used in hydraulic fracturing,” she said.

The act would also:

• Extend from 1,000 feet to 2,500 feet the presumed liability of a gas well polluting a water supply.

• Update bonding requirements to cover the costs of decommissioning a well from a $2,500 bond to a $150,000 bond for a Marcellus Shale well and to a $12,000 bond for all other wells.

• Reaffirm that local government may regulate aspects of drilling within traditional powers, such as hours of operation.

Jeff Schmidt, Sierra Club state chapter director, said the club supports the bill and suggested adding some provisions:

• Require a drilling permit applicant to publish in a local newspaper and in the Pennsylvania Bulletin that a permit application was submitted to DEP.

• Require that erosion and sediment control and storm water discharge plans for drill sites be as stringent as requirements for all other earth disturbance activities, and require DEP to offer county conservation districts the opportunity to review those plans and fund the work.

Brady Russell, Eastern Pennsylvania director for Clean Water Action, said the gas industry will “cut corners” if not properly supervised. He made several recommendations, including requiring an inspector – or eco-cop – on each drill site to make sure drillers follow approved plans.

He also suggested requiring drillers to pay for pre- and post-drilling testing of nearby water sources.

Dr. Thomas Jiunta, a podiatrist from Lehman Township, where issuance of a drilling permit is expected to be approved next week, said that since he has been researching Marcellus Shale exploration, he has “gotten a lot of lip service from senators and representatives about how we need to do it right. Before I start, I just want to say that maybe, maybe – and this is the first time I’ve said this word – we need a moratorium to stop it until we get it right.”

Audience members burst into applause and cheers at Jiunta’s suggestion.

After sharing his concerns about an inadequate number of treatment plants capable of removing hazardous chemicals from water used in hydraulic fracturing and risks associated with storing those chemicals underground, Jiunta made several suggestions for the bill.

One is adding a requirement that recovered waste water from the fracturing process be stored in sealed tanks rather than in surface pits that have liners that he said could tear and overflow with heavy rain.

Dimock Township resident Victoria Switzer testified first that a gas company “landman” talked her and her “misinformed, uninformed and na�ve” family into leasing their land for $25 an acre and a 12.5-percent royalty minus transportation cost.

“We now sit in the middle of 63 natural gas wells. In spite of what has gone terribly wrong here, the 2010 plan calls for a doubling of their efforts,” Switzer said.

She said gas drilling has resulted in diminished or contaminated drinking water supplies, destruction of roads and bridges, increased traffic beyond road capacity; decreased air quality, loss of aesthetics and more.

Mundy said she can’t imagine what Switzer is going through.

“How do you like less government – fewer DEP employees, lower taxes, no severance tax? This is what we’ve got; let’s fix it,” Mundy said.

State Rep. Tim Seip, D-Pottsville, said a severance tax on gas extraction is necessary to fund more inspectors and conservation district work. He said the public should lobby their state senators to adopt the bill when it comes before them.

Asked if he thought a moratorium was possible in Pennsylvania, George said he thought, “It’s really going to help Pennsylvania if every place where there’s drilling we get this type of attention.”

Copyright: Times Leader

Environmental Resources and Energy hearing Wednesday at Kingston Township building.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Several people with concerns about natural gas drilling in Pennsylvania – and especially in the Back Mountain – are scheduled to testify Wednesday at a public hearing before a state House of Representatives committee.

State Rep. Phyllis Mundy requested and is hosting a hearing of the House Environmental Resources and Energy Committee at the Kingston Township Municipal Building from 1 to 3 p.m.

Mundy, D-Kingston, said she has “grave concerns” that there are inadequate protections in place to protect the environment from drilling associated with the Marcellus Shale formation.

“I don’t think we’re going to be able to stop Marcellus Shale drilling, but we need to make sure it doesn’t leave a legacy like that of coal. An ounce of prevention is worth a pound of cure,” Mundy said on Monday.

She said she believes a proposed drilling site in Lehman Township is “much too close” to the Huntsville and Ceasetown reservoirs, which provide drinking water to many of her constituents.

Committee Majority Chairman Camille “Bud” George notes in a press release that the state Department of Environmental Protection issued more than 1,300 drilling permits in 2009 and more are expected in coming years, yet no study exists on the environmental or human health impacts of gas development in Pennsylvania.

Testimony will be presented about mitigating environmental risks and House Bill 2213 – the Land and Water protection Act introduced by George, D-Clearfield County.

The bill would:

• Require state inspections of wells during each drilling phase.

• Extend to 2,500 feet the presumed liability of a well polluting a water supply; the current radius is 1,000 feet.

• Require full disclosure of chemicals used in the hydraulic fracturing of the gas.

• Update bonding requirements to cover the costs of decommissioning a well. Current regulations call for a $2,500 bond, but the cost to cap a well could range from $12,000 to $150,000 for a deep well, according to George.

Scheduled to testify are Dr. Thomas Jiunta, a local podiatric physician active in environmental causes; Dr. Gere Reisinger, a physician whose 200-acre farm in Wyoming County has been affected by drilling; Victoria Switzer, whose water at her home in Dimock, Susquehanna County, was contaminated after nearby drilling; Brady Russell, eastern Pennsylvania director, Clean Water Action; and Jeff Schmidt, senior director, Sierra Club, Pennsylvania Chapter.

Copyright: Times Leader