Marcellus Shale Watch

By Andrew T. Bockis

Saul Ewing LLP

Harrisburg

The Department of Environmental Protection is currently soliciting public comment on changes it is proposing to make to its Oil and Gas regulations.  The Department’s proposed changes can be viewed by clicking here.  According to the Department, the proposed changes are part of an effort to provide better protection for both public and private water supplies.  The changes include revisions to the rules regarding the construction of oil and gas wells, in addition to revisions regarding the drilling, casing, cementing, testing, monitoring and plugging of oil and gas wells.

The Department is allowing an opportunity for public comment on these proposed changes before it submits a package to the Environmental Quality Board, which would then have its own, more formal, public comment period.  Public comments (during this pre-EQB period) are due by March 2, 2010.

Proposed Changes

The proposed changes would add additional requirements regarding the restoration or replacement of a water supply affected by oil and gas drilling operations.  The changes include a new notice requirement, and they set forth with more specificity the terms of an “adequate” water supply restoration or replacement.

The proposed changes would also require all drilling operations within the Marcellus Shale formation to use blow-out prevention equipment.  Currently, such equipment is only required when blow-out conditions are anticipated.  The changes also include significant revisions to casing, cementing, and operating requirements.

Area of Alternative Methods

Of note, the proposed changes would also authorize the Department to designate an “area of alternative methods” regarding the drilling, operation, or plugging of wells if the Department determines that additional requirements beyond the Oil and Gas regulations are necessary.  Any proposed area of alternative methods would be subject to publication in the Pennsylvania Bulletin and to public comment.  After review of any comments, the Department would then publish a final designation of the area and required alternative methods in the Pennsylvania Bulletin. 

Although any final designation regarding an “area of alternative methods” would be published in the Pennsylvania Bulletin, this proposal may raise concerns within the regulated community that the Department is side-stepping the rulemaking authority of the Environmental Quality Board.

www.dep.state.pa.us/dep/deputate/minres/oilgas/Oil%20&%20Gas%20Documents/CHAPTER%2078%20Revisions%20January%2027%202010.pdf

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