Harrisburg briefly took on the feel of Madison, Wisconsin Tuesday afternoon, when anti-drilling protesters staged a sit-in outside Governor Corbett’s office. Chants of “Corbett’s a Coward!” and “open the door!” rang out, as filmmaker Josh Fox and other environmental advocates unsuccessfully tried to schedule a meeting with the governor.
Fox, whose Academy Award-nominated documentary Gasland has become a rallying point for drilling opponents, told reporters he’s been trying to meet with Corbett for months. “We have sent letters. We have sent emails. We have sent phone calls. We have sent letters on behalf of huge numbers of people. We have never received a response,” he explained.
Fox and the other protesters made their way to Corbett’s office after a noon rally in the Capitol rotunda organized by environmental groups Clean Water Action, PennEnvironment and the Sierra Club. Myron Arnowitt, Clean Water Action’s western Pennsylvania director, said he’s frustrated. “Drilling has been going on in Pennsylvania for almost four years now. And what has our state legislature done? They have done nothing. Nothing. The problem keeps getting bigger and bigger. They keep drilling more wells. They keep having more blowouts. They keep contaminating more rivers.” Arnowitt and other speakers called for a moratorium on drilling – a politically unlikely action the rally’s crowd clearly endorsed. When Democratic Senator Daylin Leach voiced support for a severance tax, he was drowned out by calls for a full ban on drilling.
When the rally ended, many of the attendees visited lawmakers’ offices, to personally lobby for stricter regulations. Fox and several dozen other activists headed to the Capitol’s executive wing. “We were stopped at the door. We were told to call. I called several times,” Fox explained. “We had a few entertaining conversations about why they wouldn’t just come to the door and speak to us. I was sent to the scheduling person, who hung up on me. We are demanding that we have an appointment with Governor Tom Corbett to discuss what’s happening in Pennsylvania as a result of the gas drilling.”
Video shot by Roxbury News shows Fox and other organizers were less than polite about their request. “Are you telling me…that only certain people have the authority to open doors?,” he asked a Corbett staffer on the phone. Fox then pretended to be a member of the Marcellus Shale Coalition, as other protesters yelled and waved money in the air.
Regardless of their tactics, the environmental advocates aren’t alone in the frustration. Two weeks ago, a group of disabled people picketed Corbett’s office, after their attempts to set up a meeting about the Republican’s budget were been repeatedly ignored.
Many members of the press have had similar experiences. Corbett’s spokesman, Kevin Harley, ignored repeated requests for comment on this story, and hasn’t returned a call from this reporter since February 22.
Corbett was in Harrisburg on Tuesday. He gave an off-the-record talk to a group organized by Republican strategist Charlie Gerow in the morning, and headed to Washington, DC in the evening to attend a state dinner at the White House.
The anti-drilling activists have vowed to return on July 20th. They say they’ll spend all day -- and all night – at the Capitol, if they don’t get a meeting.
Showing posts with label Marcellus Shale. Show all posts
Showing posts with label Marcellus Shale. Show all posts
Wednesday, June 8, 2011
Saturday, June 4, 2011
Flow of Fracking Water to Treatment Plants Stopped?
Officials with the Pennsylvania Department of Environmental Protection believe that companies drilling for natural gas in the Marcellus Shale formation have just about stopped shipping chemically-treated waste water to treatment plants. The DEP had said a May 19th deadline for companies to voluntarily stop taking the waste water to the treatment plants that discharge into rivers. The agency says the plants are ill-equipped to remove all the pollutants. Department spokeswoman Katy Gresh says they've confirmed the transport of the fracking water is down to possibly a handful of trucks in the past 2 weeks, and they are trying to determine if those trucks did indeed carry the waste water.
Friday, June 3, 2011
More Shale Tax Ideas Floated
Two more severance tax proposals are joining the party in Harrisburg.
The new bills come from Republicans legislators from the southeastern corner of the state where there is little or no Marcellus shale. However, they are the latest sign of growing support for some sort of tax on Marcellus Shale drilling. At least five tax or fee proposals are now in front of the General Assembly.
Senate Majority Leader Dominic Pileggi and Rep. Nick Miccarelli are both introducing levies that would direct revenue toward tax relief. The two measures are a far cry from Senate President Pro Tem Joe Scarnati’s impact fee, which would funnel money to local governments in the Marcellus Shale formation, as well as environmental and infrastructure projects.
Pileggi’s measure would fund a property tax freeze for senior citizens. According to a co-sponsorship memo distributed to senators, “all revenue would be deposited into a dedicated fund to provide a school property tax freeze for Pennsylvania residents 65 and older. …the tax burden would be shifted from seniors, many of whom are struggling to stay in their homes on a fixed income, to companies involved in natural gas drilling in Pennsylvania.” Pileggi’s memo doesn’t mention a specific tax rate, but claims the “reasonable and competitive tax” would raise $250 million over the next five years.
Miccarelli’s measure would impose a three percent tax on drillers. “The money would go directly to reducing the personal income tax from 3.07 percent to 2.99 percent,” explained Miccarelli. The tax would eventually increase to five percent, and, he claims, “would generate, by fiscal year 2015, $1.1 billion.”
Pileggi and Miccarelli both represent districts in the Philadelphia area, where support for a severance tax is most intense. Neither of their constituents would see any benefit from Scarnati’s impact fee, which limits revenue to communities where drilling is actually taking place. In his memo, Pileggi writes he, “support[s] Senator Scarnati’s approach,” but if a tax or fee becomes law, the Republican wants to spread its funds around. “My view is that the entire commonwealth needs to benefit from an extraction tax, regardless of whether or not communities have wells or pipelines in their own area,” he said, on the day Scarnati unveiled his plan. Scarnati’s chief of staff, Drew Crompton, did not respond to a request for comment on the new proposals.
Neither new tax has been formally introduced yet. Miccarelli said he’ll release his bill next week. It’s unclear when Pileggi’s plan will be unveiled.
The new bills come from Republicans legislators from the southeastern corner of the state where there is little or no Marcellus shale. However, they are the latest sign of growing support for some sort of tax on Marcellus Shale drilling. At least five tax or fee proposals are now in front of the General Assembly.
Senate Majority Leader Dominic Pileggi and Rep. Nick Miccarelli are both introducing levies that would direct revenue toward tax relief. The two measures are a far cry from Senate President Pro Tem Joe Scarnati’s impact fee, which would funnel money to local governments in the Marcellus Shale formation, as well as environmental and infrastructure projects.
Pileggi’s measure would fund a property tax freeze for senior citizens. According to a co-sponsorship memo distributed to senators, “all revenue would be deposited into a dedicated fund to provide a school property tax freeze for Pennsylvania residents 65 and older. …the tax burden would be shifted from seniors, many of whom are struggling to stay in their homes on a fixed income, to companies involved in natural gas drilling in Pennsylvania.” Pileggi’s memo doesn’t mention a specific tax rate, but claims the “reasonable and competitive tax” would raise $250 million over the next five years.
Miccarelli’s measure would impose a three percent tax on drillers. “The money would go directly to reducing the personal income tax from 3.07 percent to 2.99 percent,” explained Miccarelli. The tax would eventually increase to five percent, and, he claims, “would generate, by fiscal year 2015, $1.1 billion.”
Pileggi and Miccarelli both represent districts in the Philadelphia area, where support for a severance tax is most intense. Neither of their constituents would see any benefit from Scarnati’s impact fee, which limits revenue to communities where drilling is actually taking place. In his memo, Pileggi writes he, “support[s] Senator Scarnati’s approach,” but if a tax or fee becomes law, the Republican wants to spread its funds around. “My view is that the entire commonwealth needs to benefit from an extraction tax, regardless of whether or not communities have wells or pipelines in their own area,” he said, on the day Scarnati unveiled his plan. Scarnati’s chief of staff, Drew Crompton, did not respond to a request for comment on the new proposals.
Neither new tax has been formally introduced yet. Miccarelli said he’ll release his bill next week. It’s unclear when Pileggi’s plan will be unveiled.
Thursday, June 2, 2011
The Changing Face of Washington County
There has been a lot of discourse about Marcellus Shale drilling. You’ve heard the two most common arguments – that it’s good for the economy and its bad for the environment. But today, we’re going to talk about something a little bit different. All the drilling is significantly changing the landscape of the region.
Back in 2006 there were 24 permits issued for Marcellus Shale drilling in Washington County. The natural gas extraction process of hydraulic fracturing was in an earlier experimental phase and not as well known. Things have changed. Last year, 250 permits were issued in Washington County. Wells upon wells are getting drilled. There are compressor stations and pipelines and more on the way. You can’t turn on a television without seeing a natural gas industry ad and every day, newspapers are full of stories. It’s what people talk about.
They have strong opinions. This is serious business. It could ruin the landscape and damage our water, poison our air, destroy our health. Wells explode. Workers get hurt. But –and this is what makes it tricky, it can create jobs, provide money and wean us off a dependency on foreign energy.
But of all the things people disagree on, there is one thing they do agree on. The Marcellus Shale, the drilling, the discourse, all of it are drastically changing the face and character of the region.
If you’ve never been, Washington County sits to the south of Allegheny County. At a little over 200,000, the entire county’s population is less than the population of the city of Pittsburgh. But by square mile acreage, the county is bigger than Allegheny County. So it’s a lot of land for a lot fewer people. With a few exceptions, it’s mostly rural, with miles of two lane roads, acres of rolling hills and vistas of trees. It’s quiet. Which is why Wayne Thompson chose to live here.
"I moved out here to Buffalo Township about 14 years ago. And I moved out here specifically to get away from the city. I mean I grew up, I could see the arches of the West End bridge out my bedroom window and I specifically picked this location to get away from the traffic, to get away from the noise," he said.
Wayne lives in a custom built log cabin off an interchange of gravely roads. It’s the kind of place that he used to cheerfully call “the middle of nowhere.”
But a few years ago, things started changing. First he was approached by a land–man – someone who wanted him to lease his land.
He signed on with Range Resources. Drilling hasn’t started yet on his five acres. But now, if you look out a window on one side of his home you see a chain of flares from rigs that have been burning nonstop for weeks. You can also hear them. They sound like an airplane flying overhead. If you look out the other side you see the beginnings of a massive compressor station.
Kevin Sunday, a spokesman for the Department of Environmental Protection told DUQ that they’ve given a permit to MarkWest for 6 compressor station engines with a stack, two oxidation catalyst engines, four other engines and a dehydrator. That’s 13 buildings.
Listen to the story here.
Back in 2006 there were 24 permits issued for Marcellus Shale drilling in Washington County. The natural gas extraction process of hydraulic fracturing was in an earlier experimental phase and not as well known. Things have changed. Last year, 250 permits were issued in Washington County. Wells upon wells are getting drilled. There are compressor stations and pipelines and more on the way. You can’t turn on a television without seeing a natural gas industry ad and every day, newspapers are full of stories. It’s what people talk about.
They have strong opinions. This is serious business. It could ruin the landscape and damage our water, poison our air, destroy our health. Wells explode. Workers get hurt. But –and this is what makes it tricky, it can create jobs, provide money and wean us off a dependency on foreign energy.
But of all the things people disagree on, there is one thing they do agree on. The Marcellus Shale, the drilling, the discourse, all of it are drastically changing the face and character of the region.
If you’ve never been, Washington County sits to the south of Allegheny County. At a little over 200,000, the entire county’s population is less than the population of the city of Pittsburgh. But by square mile acreage, the county is bigger than Allegheny County. So it’s a lot of land for a lot fewer people. With a few exceptions, it’s mostly rural, with miles of two lane roads, acres of rolling hills and vistas of trees. It’s quiet. Which is why Wayne Thompson chose to live here.
"I moved out here to Buffalo Township about 14 years ago. And I moved out here specifically to get away from the city. I mean I grew up, I could see the arches of the West End bridge out my bedroom window and I specifically picked this location to get away from the traffic, to get away from the noise," he said.
Wayne lives in a custom built log cabin off an interchange of gravely roads. It’s the kind of place that he used to cheerfully call “the middle of nowhere.”
But a few years ago, things started changing. First he was approached by a land–man – someone who wanted him to lease his land.
He signed on with Range Resources. Drilling hasn’t started yet on his five acres. But now, if you look out a window on one side of his home you see a chain of flares from rigs that have been burning nonstop for weeks. You can also hear them. They sound like an airplane flying overhead. If you look out the other side you see the beginnings of a massive compressor station.
Kevin Sunday, a spokesman for the Department of Environmental Protection told DUQ that they’ve given a permit to MarkWest for 6 compressor station engines with a stack, two oxidation catalyst engines, four other engines and a dehydrator. That’s 13 buildings.
Listen to the story here.
Monday, May 30, 2011
Feds, State Officials Meet on Criminal Enforcment of Drilling
Oversight of, or enforcement against Marcellus Shale gas drillers might call to mind the federal Environmental Protection Agency or the Pennsylvania Department of Environmental Protection.
Last week in State College more than 200 federal, state and local law enforcement officers, prosecutors and environmental officials from Pennsylvania, New York, West Virginia and Ohio participated in a 2-day Marcellus Shale Law Enforcement Training Conference.
The conference focused on potential environmental impacts and law enforcement issues arising from the rapid expansion of drilling in the Marcellus Shale region.
Ignacio Moreno, Assistant Attorney General at the Justice Department, said oil and gas extraction is occurring with increasing frequency......
"We must ensure that all laws intended to protect human health, sources of drinking water, wildlife and the environment are well understood and enforced to mitigate any potential adverse effects."
According to David Hickton, U.S. Attorney for Western Pennsylvania, the conference provided an overview of state and federal requirements that companies and subcontractors must follow to ensure that workers, the public and the environment are not put at risk. Hickton says his office has a responsibility to prosecute environmental crimes....
"If the frack water (used to break the shale and released the gas) is not handled properly and, for example, is dumped without proper disposition, there would be potential criminal issues involved."
Hickton says cooperation with state and local law enforcement is imperative because the federal authorities "do not have enough boots on the ground to cover the entire state." He says one goal of the conference was to create a "force multiplier" where all law enforcement works together to enforce the various laws.
"I think the buzzword for our current approach is we're trying to be alert, informed and vigilant and the public should know we're going to do our part to protect the law so that whatever is done with Marcellus Shale is done legally and appropriately."
Last week in State College more than 200 federal, state and local law enforcement officers, prosecutors and environmental officials from Pennsylvania, New York, West Virginia and Ohio participated in a 2-day Marcellus Shale Law Enforcement Training Conference.
The conference focused on potential environmental impacts and law enforcement issues arising from the rapid expansion of drilling in the Marcellus Shale region.
Ignacio Moreno, Assistant Attorney General at the Justice Department, said oil and gas extraction is occurring with increasing frequency......
"We must ensure that all laws intended to protect human health, sources of drinking water, wildlife and the environment are well understood and enforced to mitigate any potential adverse effects."
According to David Hickton, U.S. Attorney for Western Pennsylvania, the conference provided an overview of state and federal requirements that companies and subcontractors must follow to ensure that workers, the public and the environment are not put at risk. Hickton says his office has a responsibility to prosecute environmental crimes....
"If the frack water (used to break the shale and released the gas) is not handled properly and, for example, is dumped without proper disposition, there would be potential criminal issues involved."
Hickton says cooperation with state and local law enforcement is imperative because the federal authorities "do not have enough boots on the ground to cover the entire state." He says one goal of the conference was to create a "force multiplier" where all law enforcement works together to enforce the various laws.
"I think the buzzword for our current approach is we're trying to be alert, informed and vigilant and the public should know we're going to do our part to protect the law so that whatever is done with Marcellus Shale is done legally and appropriately."
Wednesday, May 25, 2011
Bill to Require Posting of Gas Wells' GPS Locations
A Pennsylvania Senate committee has passed a bill to document the exact location of every Marcellus Shale natural gas well in the state.
Sponsoring Senator Lisa Baker says emergency crews often cannot find gas wells in emergency situations. Baker, a Republican representing six northeastern counties, says if the GPS coordinates of each site were documented, responders could look up the well's location easily and arrive sooner.
In addition, gas well operators would need to submit emergency response plans to the local 911 center, to the Pennsylvania Emergency Management Agency, and to the state's Department of Environmental Protection.
"When every second counts in an emergency, this bill will cut down on emergency response time and keep small incidents from escalating into major accidents," writes Baker in a news release.
After unanimous approval from the Senate Veterans Affairs and Emergency Preparedness Committee, the measure now moves to the full Senate for consideration.
Sponsoring Senator Lisa Baker says emergency crews often cannot find gas wells in emergency situations. Baker, a Republican representing six northeastern counties, says if the GPS coordinates of each site were documented, responders could look up the well's location easily and arrive sooner.
In addition, gas well operators would need to submit emergency response plans to the local 911 center, to the Pennsylvania Emergency Management Agency, and to the state's Department of Environmental Protection.
"When every second counts in an emergency, this bill will cut down on emergency response time and keep small incidents from escalating into major accidents," writes Baker in a news release.
After unanimous approval from the Senate Veterans Affairs and Emergency Preparedness Committee, the measure now moves to the full Senate for consideration.
Tuesday, May 24, 2011
PA House Expected to Pass Budget Today
Pennsylvania House Speaker Sam Smith doesn’t support a local impact fee on natural gas drilling, and seems apathetic to the idea at best. But, speaking to the Pennsylvania Press Club in Harrisburg Monday afternoon, the Republican predicted the General Assembly will pass some sort of levy on drillers this year.
After a lengthy filibuster on whether he supports the bill authored by his former roommate, Senate President Pro Tem Joe Scarnati, Smith said, “the political realities of how the House and Senate shape up would suggest that something will happen on that issue in the very near future, whether that means the next two months, month and a half, or on the governor’s timeline. But I believe something will be resolved on that.” Corbett wants a fee vote after his Marcellus Shale Commission’s late July report, but Scarnati is pushing for the bill to become law by the end of June.
Smith says the major factor will be where the fee money goes. Right now, the Senate measure directs funding to local governments, environmental protection efforts and infrastructure projects. He also dismissed polls showing overwhelming public support for a full tax on drillers. “People have always been willing to tax the other guy, and that’s an industry is perceived as the other guy,” he reasoned. “So I don’t jump – get too excited about how the polls read, because the same polls will say, increase spending for this, but don’t tax me on that.”
On the overall budget, Smith resisted the idea of directing all or part of a $503 million tax surplus into next year’s spending plan. “[Republicans are] trying to avoid the ‘let’s spend every penny we can possibly get our hands on’ mentality,” he said. “…Moving forward with caution to allow for reliability and predictability in the program funding.” That being said, the Jefferson County lawmaker left the door open to a budget spending more than $27.3 billion, if analysts can show this year’s surplus is part of a long-term trend. He explained, “If the budget secretary and the governor’s office revise their revenue estimate once we get past the May numbers, and when they look at whatever the other economic projections are for forecasting the numbers for next year, certainly we would be open-minded to [a more expensive budget].” Both Corbett and Smith’s majority leader, Mike Turzai, are dead-set against spending more than $27.3 billion. Smith’s comments put him more in line with Senate Majority Leader Dominic Pileggi, who’s open to using the surplus money to augment education cuts.
The House begins debate on its budget this afternoon, and will likely pass the bill by the end of the week.
After a lengthy filibuster on whether he supports the bill authored by his former roommate, Senate President Pro Tem Joe Scarnati, Smith said, “the political realities of how the House and Senate shape up would suggest that something will happen on that issue in the very near future, whether that means the next two months, month and a half, or on the governor’s timeline. But I believe something will be resolved on that.” Corbett wants a fee vote after his Marcellus Shale Commission’s late July report, but Scarnati is pushing for the bill to become law by the end of June.
Smith says the major factor will be where the fee money goes. Right now, the Senate measure directs funding to local governments, environmental protection efforts and infrastructure projects. He also dismissed polls showing overwhelming public support for a full tax on drillers. “People have always been willing to tax the other guy, and that’s an industry is perceived as the other guy,” he reasoned. “So I don’t jump – get too excited about how the polls read, because the same polls will say, increase spending for this, but don’t tax me on that.”
On the overall budget, Smith resisted the idea of directing all or part of a $503 million tax surplus into next year’s spending plan. “[Republicans are] trying to avoid the ‘let’s spend every penny we can possibly get our hands on’ mentality,” he said. “…Moving forward with caution to allow for reliability and predictability in the program funding.” That being said, the Jefferson County lawmaker left the door open to a budget spending more than $27.3 billion, if analysts can show this year’s surplus is part of a long-term trend. He explained, “If the budget secretary and the governor’s office revise their revenue estimate once we get past the May numbers, and when they look at whatever the other economic projections are for forecasting the numbers for next year, certainly we would be open-minded to [a more expensive budget].” Both Corbett and Smith’s majority leader, Mike Turzai, are dead-set against spending more than $27.3 billion. Smith’s comments put him more in line with Senate Majority Leader Dominic Pileggi, who’s open to using the surplus money to augment education cuts.
The House begins debate on its budget this afternoon, and will likely pass the bill by the end of the week.
Monday, May 23, 2011
Drilling Group Wants Consistent Regs
The head of Pennsylvania’s Marcellus Shale Coalition is calling for uniform local drilling standards.
Katheryn Klaber’s request to Governor Corbett’s Marcellus Shale Commission is for “clarity and consistency” in local laws governing natural gas drilling. She pointed out the gas deposit stretches through 37 Pennsylvania counties and 1,491 municipalities. “If you were going to take a drive across Pennsylvania, and you needed to get a new license in each community you went through, that’s really the conditions in which the industry is operating,” she said.
Klaber complained a handful of municipalities – most notably Pittsburgh -- have passed regulations banning drilling or hydraulic fracturing within their boundaries, and argued those ordinances violate state law. She said other municipalities have accomplished the same result, through zoning restrictions targeting drilling, “including up to 1,500 feet from a resident, 2,500 feet – it goes on and on. All sorts of different setbacks from all types of structures,” she explained. “And what you really get in those types of situations, I guess it would be an effective ban. Because by the time you do that many setbacks, there isn’t any other area within that municipality to place the industry’s activities.”
Klaber got her figures from a Coalition study of drilling regulations in 66 southwestern Pennsylvania municipalities. The reports’ details haven’t been made public. (I’ve asked the Coalition for a list of the municipalities with these guidelines. Klaber told a Pittsburgh Post-Gazette reporter the group isn’t ready to release them yet.)
She said some townships have gone as far as banning nighttime noise increases over 5 decibels, in an attempt to keep rigs away. “If this were applied uniformly, those levels would be violated by a residential central air conditioning units, or quite literally, in some areas, the crickets,” she argued. “This is an area that can be dealt with, if there are reasonable and predictable noise standards. But when normal, unamplified conversations are between 60 and 70 decibels, it’s a little hard to operate. And it’s not appropriate for it to be on one single industry.”
Senate President Pro Tem Joe Scarnati’s local impact fee attempts to address Klaber’s concerns, by creating a model ordinance for municipalities, and barring local governments that pass stricter laws from receiving money from its $10,000- a-well levy.
For the most part, members of Corbett’s commission were sympathetic to Klabers’ concerns. Public Utility Commission Chair Robert Powelson compared Pittsburgh’s drilling ban to a “Model UN ordinance.” David Sanko, the executive director of the Pennsylvania State Township Supervisors Association, agreed “the industry should not be singled out differently,” when it comes to zoning. “It should be treated fairly, and it should have a level playing field,” he added, before arguing local drilling bans are “in violation of state law.”
At a press conference after the meeting, however, Lieutenant Governor Jim Cawley shied away from fully weighing in on whether municipalities have the right to keep drilling out of their borders, through direct or indirect bans. “I don’t have first-hand knowledge of the sum of the claims that were put forward about constitutional violations,” he said. “Any time the constitution is violated I’m going to be concerned. But that’s something we’re going to take a look at in greater depth, to understand the specific areas of where those claims have arisen.” The commission will hear from local government officials at next month’s meeting. Its final report is due in July.
Katheryn Klaber’s request to Governor Corbett’s Marcellus Shale Commission is for “clarity and consistency” in local laws governing natural gas drilling. She pointed out the gas deposit stretches through 37 Pennsylvania counties and 1,491 municipalities. “If you were going to take a drive across Pennsylvania, and you needed to get a new license in each community you went through, that’s really the conditions in which the industry is operating,” she said.
Klaber complained a handful of municipalities – most notably Pittsburgh -- have passed regulations banning drilling or hydraulic fracturing within their boundaries, and argued those ordinances violate state law. She said other municipalities have accomplished the same result, through zoning restrictions targeting drilling, “including up to 1,500 feet from a resident, 2,500 feet – it goes on and on. All sorts of different setbacks from all types of structures,” she explained. “And what you really get in those types of situations, I guess it would be an effective ban. Because by the time you do that many setbacks, there isn’t any other area within that municipality to place the industry’s activities.”
Klaber got her figures from a Coalition study of drilling regulations in 66 southwestern Pennsylvania municipalities. The reports’ details haven’t been made public. (I’ve asked the Coalition for a list of the municipalities with these guidelines. Klaber told a Pittsburgh Post-Gazette reporter the group isn’t ready to release them yet.)
She said some townships have gone as far as banning nighttime noise increases over 5 decibels, in an attempt to keep rigs away. “If this were applied uniformly, those levels would be violated by a residential central air conditioning units, or quite literally, in some areas, the crickets,” she argued. “This is an area that can be dealt with, if there are reasonable and predictable noise standards. But when normal, unamplified conversations are between 60 and 70 decibels, it’s a little hard to operate. And it’s not appropriate for it to be on one single industry.”
Senate President Pro Tem Joe Scarnati’s local impact fee attempts to address Klaber’s concerns, by creating a model ordinance for municipalities, and barring local governments that pass stricter laws from receiving money from its $10,000- a-well levy.
For the most part, members of Corbett’s commission were sympathetic to Klabers’ concerns. Public Utility Commission Chair Robert Powelson compared Pittsburgh’s drilling ban to a “Model UN ordinance.” David Sanko, the executive director of the Pennsylvania State Township Supervisors Association, agreed “the industry should not be singled out differently,” when it comes to zoning. “It should be treated fairly, and it should have a level playing field,” he added, before arguing local drilling bans are “in violation of state law.”
At a press conference after the meeting, however, Lieutenant Governor Jim Cawley shied away from fully weighing in on whether municipalities have the right to keep drilling out of their borders, through direct or indirect bans. “I don’t have first-hand knowledge of the sum of the claims that were put forward about constitutional violations,” he said. “Any time the constitution is violated I’m going to be concerned. But that’s something we’re going to take a look at in greater depth, to understand the specific areas of where those claims have arisen.” The commission will hear from local government officials at next month’s meeting. Its final report is due in July.
Thursday, May 5, 2011
Penn Environment Says Shale Gas Extraction Poses Risk
A new report released by Penn Environment, an environmental advocacy group says vulnerable populations such as children and the ailing who are close to Marcellus Shale gas drilling sites may experience extra negative effects.
The study says that there are permitted well sites within two miles of more than 320 day care centers, 67 schools and nine hospitals statewide. The report found that the Pennsylvania DEP recorded 241 violations of environmental regulations at Marcellus Shale well sites within 2 miles of day care facilities from January 2008 to June 2010.
"Whether its air or water pollution, accidents or explosions, we've seen that the effects of Marcellus Shale gas extraction don't necessarily end at the drill pad's borders," said Erika Staaf, an advocate with the organization.
Staaf said they have not identified an actual incident that has affected a school or one of the facilities such as an explosion.
Staaf said children are likely to be more vulnerable to pollution caused by natural gas extraction because they are still developing while those that are sick are also more vulnerable than the general population.
The group says Pennsylvania should designate places near where people live or work off limits to gas extraction.
The full report
The study says that there are permitted well sites within two miles of more than 320 day care centers, 67 schools and nine hospitals statewide. The report found that the Pennsylvania DEP recorded 241 violations of environmental regulations at Marcellus Shale well sites within 2 miles of day care facilities from January 2008 to June 2010.
"Whether its air or water pollution, accidents or explosions, we've seen that the effects of Marcellus Shale gas extraction don't necessarily end at the drill pad's borders," said Erika Staaf, an advocate with the organization.
Staaf said they have not identified an actual incident that has affected a school or one of the facilities such as an explosion.
Staaf said children are likely to be more vulnerable to pollution caused by natural gas extraction because they are still developing while those that are sick are also more vulnerable than the general population.
The group says Pennsylvania should designate places near where people live or work off limits to gas extraction.
The full report
Sierra Club: DEP "Trying to Rewrite History" Over Policy Hubbub
The Pennsylvania Department of Environmental Protection says a controversial policy change regarding the authority of on-site environmental inspectors to issue citations for violations was never in place. This denial comes after a report in the Pittsburgh Post-Gazette that the DEP rescinded the directive. The denial does not square with what the department initially said about the policy.
In March, several outlets, including WDUQ-FM, obtained a DEP email telling field inspectors to forward possible Marcellus Shale natural gas drilling violations to Harrisburg, for final approval from Secretary Michael Krancer. The note, written by Executive Deputy Secretary John Hines, read, “Effective immediately, any actions, NOVs and such must get approval of Dana and I with final clearance from Mike [Krancer]. Alisa and Dave are to be cc' on all correspondence related to these actions.
I need to repeat no final actions are to be taken unless approval comes from Dana and I with clearance from Mike [Krancer].”
Department spokeswoman Katy Gresh now says inspectors have maintained their power to issue permits, and the department just wants to keep tabs on what’s being issued where. “Inspectors are going into the field, writing notices of violation, as they have always done. And the regions are offering central office notification of what notices of violation are being issued,” she said Tuesday.
Jeff Schmidt, the director of Pennsylvania’s Sierra Club, doesn’t buy it. He insisted DEP is trying to “re-write history, and goes back to the initial leaked email. “To me, the fact that the executive deputy secretary of DEP referred to his message as a directive makes it clear that they had a policy of requiring NOV approval by Secretary Krancer,” he said.
On March 30th, Gresh had this to say about the new policy: “This effort to bring about consistency will ensure that enforcement actions levied against companies in one region for one activity will be levied against companies in every other region for the same activity.” A few days later, DEP announced the shift would be tested during a three-month trial period.
Schmidt kicked the latest back-and-forth off by releasing a letter Governor Corbett wrote to him, which read, “Inspectors in the field will continue to maintain the same ability to issue notice of violations as they have in the past. DEP remains poised to respond quickly and efficiently to any potential environmental hazard. DEP's goal is to act as one DEP and not as seven DEP's. For this reason, it has been necessary to make minor adjustments to several internal processes to enhance effectiveness. However, none of these adjustments will prevent inspectors from making "in the field" decisions and taking appropriate actions.”
Schmidt believes the department and Corbett Administration shifted course, after facing negative public reaction. Why is keeping final violation approval in inspectors’ hands so important for Schmidt? “By going up the chain and waiting, perhaps for days or weeks, for approval, environmental problems could go unaddressed,” he explained. “Beyond that, there’s also the matter of public record. If a notice of violation is not approved, it never becomes a public document,” he explained.
In March, several outlets, including WDUQ-FM, obtained a DEP email telling field inspectors to forward possible Marcellus Shale natural gas drilling violations to Harrisburg, for final approval from Secretary Michael Krancer. The note, written by Executive Deputy Secretary John Hines, read, “Effective immediately, any actions, NOVs and such must get approval of Dana and I with final clearance from Mike [Krancer]. Alisa and Dave are to be cc' on all correspondence related to these actions.
I need to repeat no final actions are to be taken unless approval comes from Dana and I with clearance from Mike [Krancer].”
Department spokeswoman Katy Gresh now says inspectors have maintained their power to issue permits, and the department just wants to keep tabs on what’s being issued where. “Inspectors are going into the field, writing notices of violation, as they have always done. And the regions are offering central office notification of what notices of violation are being issued,” she said Tuesday.
Jeff Schmidt, the director of Pennsylvania’s Sierra Club, doesn’t buy it. He insisted DEP is trying to “re-write history, and goes back to the initial leaked email. “To me, the fact that the executive deputy secretary of DEP referred to his message as a directive makes it clear that they had a policy of requiring NOV approval by Secretary Krancer,” he said.
On March 30th, Gresh had this to say about the new policy: “This effort to bring about consistency will ensure that enforcement actions levied against companies in one region for one activity will be levied against companies in every other region for the same activity.” A few days later, DEP announced the shift would be tested during a three-month trial period.
Schmidt kicked the latest back-and-forth off by releasing a letter Governor Corbett wrote to him, which read, “Inspectors in the field will continue to maintain the same ability to issue notice of violations as they have in the past. DEP remains poised to respond quickly and efficiently to any potential environmental hazard. DEP's goal is to act as one DEP and not as seven DEP's. For this reason, it has been necessary to make minor adjustments to several internal processes to enhance effectiveness. However, none of these adjustments will prevent inspectors from making "in the field" decisions and taking appropriate actions.”
Schmidt believes the department and Corbett Administration shifted course, after facing negative public reaction. Why is keeping final violation approval in inspectors’ hands so important for Schmidt? “By going up the chain and waiting, perhaps for days or weeks, for approval, environmental problems could go unaddressed,” he explained. “Beyond that, there’s also the matter of public record. If a notice of violation is not approved, it never becomes a public document,” he explained.
Wednesday, May 4, 2011
Steelworkers and Rich Fitzgerald Join Forces
At Steelworker headquarters this morning, union head Leo Gerard reiterated support for Rich Fitzgerald as the Democratic nominee for Allegheny County Executive, saying he would continue the work Dan Onorato has done to keep taxes down and support for working families high.
Fitzgerald’s opponent Mark Patrick Flaherty has proposed a public-private partnership between the county and companies drilling for natural gas on county land, which would use $4 billion of county assets to secure a higher yield than typical fees and royalties.
Fitzgerald calls the idea a “Republican” subsidy that could be lost if wells come up empty or the price of gas makes drilling unprofitable. As a drilling partner, Fitzgerald says the county would be liable in case of accident or death, and all of these risks would jeopardize the county’s bond rating.
He also questions whether the county could fulfill its role in protecting public health and the environment if it were a drilling partner.
The proper role of government vis-a-vis the natural gas resource, according to Fitzgerald, is to maximize the public benefit through an extraction tax and making sure the industry compensates for the cost of their operations. He says most companies know that would be fair. If done right, he says there will be many jobs created and no need to risk taxpayer funds.
Fitzgerald says the county added 24,000 private sector jobs last year, and the unemployment rate is 2-1/2% below the national average and has been for 38 straight months--the longest stretch since the 1930s.
Leo Gerard says Rich Fitzgerald was an easy choice for the Steelworkers’ endorsement because as president of County Council, he was current County Executive Dan Onorato’s right hand man. Gerard says he wishes Dan Onorato were governor. What's needed at the end of this worst recession since the Depression, according to Gerard, are jobs--not subsidies to an industry already rolling in money
Tuesday, May 3, 2011
Senate Dems Want Drillers to Pay State Income Tax
The Commonwealth is losing out on hundreds of millions of dollars in revenues because corporations with subsidiaries that operate in Pennsylvania continue to register them in Delaware to avoid paying Pennsylvania's corporate net income tax. That's according to a group of Democratic State Senators who are urging the Department of Revenue to aggressively audit the tax filings of Marcellus Shale drilling companies.
Senator Tina Tartaglione of Philadelphia is the prime sponsor of legislation that would require "combined reporting" for businesses in Pennsylvania and close the so-called "Delaware Loophole." 23 of the 45 states with a corporate income tax have already adopted a combined reporting standard.
Under combined reporting, the parent firm and its subsidiaries are viewed as 1 entity with their profits combined and then taxed by the state based on the level of business that entity conducts in the state compared to its business in other states.
Tartaglione says about 70% of companies doing business in Pennsylvania do not pay the corporate net income tax, and the number of businesses registered in Delaware over the past 20 years has soared from 6,000 to 115,000.
“The boom in natural gas drilling in Pennsylvania has been mirrored by a similar rise in the number Delaware subsidiaries registered by Marcellus Shale energy companies,” Tartaglione said. “All Pennsylvania taxpayers should question the reason for these
numerous affiliates and seek assurance that energy companies are paying
their share of state taxes.”
Tartaglione says that more than 500 Delaware business entities have been registered in the names of Marcellus Shale drilling companies in the past five years even though Delaware doesn’t have a single gas well.
Tartaglione and Senate Democratic leader Jay Costa of Allegheny County say if there is no severance tax on the drillers then the loophole on income tax should be closed.
The Democrats say several years ago, the revenue department estimated that $400
million in corporate taxes could be recouped by adopting a combined reporting standard.
Past legislative efforts to adopt the standard have failed.
Senator Tina Tartaglione of Philadelphia is the prime sponsor of legislation that would require "combined reporting" for businesses in Pennsylvania and close the so-called "Delaware Loophole." 23 of the 45 states with a corporate income tax have already adopted a combined reporting standard.
Under combined reporting, the parent firm and its subsidiaries are viewed as 1 entity with their profits combined and then taxed by the state based on the level of business that entity conducts in the state compared to its business in other states.
Tartaglione says about 70% of companies doing business in Pennsylvania do not pay the corporate net income tax, and the number of businesses registered in Delaware over the past 20 years has soared from 6,000 to 115,000.
“The boom in natural gas drilling in Pennsylvania has been mirrored by a similar rise in the number Delaware subsidiaries registered by Marcellus Shale energy companies,” Tartaglione said. “All Pennsylvania taxpayers should question the reason for these
numerous affiliates and seek assurance that energy companies are paying
their share of state taxes.”
Tartaglione says that more than 500 Delaware business entities have been registered in the names of Marcellus Shale drilling companies in the past five years even though Delaware doesn’t have a single gas well.
Tartaglione and Senate Democratic leader Jay Costa of Allegheny County say if there is no severance tax on the drillers then the loophole on income tax should be closed.
The Democrats say several years ago, the revenue department estimated that $400
million in corporate taxes could be recouped by adopting a combined reporting standard.
Past legislative efforts to adopt the standard have failed.
Monday, May 2, 2011
Scarnati: No Drilling, No Imact Fee Revenues
Municipalities in Pennsylvania’s Marcellus Shale formation have the right to pass zoning laws keeping drillers from extracting gas within their boundaries. They just shouldn’t expect any revenue from Republican Senate President Pro Tem Joe Scarnati’s proposed impact fee.
Scarnati’s legislation would “prohibit a municipality that adopts a zoning ordinance which exceeds [a statewide model published by the Public Utility Commission] from receiving funding from the local impact fee,” according to an outline released Thursday. (The bill itself won’t be introduced until next week, at the earliest.) The legislation boils down to an argument that townships can’t have their cake and eat it, too – if they’re keeping drillers out, Scarnati doesn’t want them taking money from the $10,000-a-well assessment.
“We’re not trying to be heavy-handed on the local level. But at some point, if local officials want to do everything in their power to ensure that natural gas companies cannot drill in their jurisdiction, then at some point for us, there’s got to be a ramification for that,” explained Scarnati’s chief of staff, Drew Crompton. “We don’t believe that there should be a benefit from the impact fees to those few jurisdictions that may elect to ensure that drilling cannot occur in that jurisdiction.”
Pittsburgh is the most high-profile municipality to ban drilling. Its Council passed an anti-hydraulic fracturing ordinance in November.
The executive director of the Pennsylvania State Association of Township Supervisors, Dave Sanko, said he’s “pleased with the concept” of Scarnati’s legislation, but he’s worried by the zoning language, especially if municipalities would lose revenue for simply passing restrictions that are tighter than the statewide standard. “If you start deferring those things to Harrisburg in these one size fits all solutions, and you do it for the gas industry, what’s next?” he asked. “Is Harrisburg going to start making zoning determinations for trailer parks or for adult book stores or for other things they don’t want the locals to handle? We’re the last line of defense for our residents in preserving and protecting the quality of life that they’ve come to expect. So we ought to have the ability to control those things.”
Scarnati’s legislation would “prohibit a municipality that adopts a zoning ordinance which exceeds [a statewide model published by the Public Utility Commission] from receiving funding from the local impact fee,” according to an outline released Thursday. (The bill itself won’t be introduced until next week, at the earliest.) The legislation boils down to an argument that townships can’t have their cake and eat it, too – if they’re keeping drillers out, Scarnati doesn’t want them taking money from the $10,000-a-well assessment.
“We’re not trying to be heavy-handed on the local level. But at some point, if local officials want to do everything in their power to ensure that natural gas companies cannot drill in their jurisdiction, then at some point for us, there’s got to be a ramification for that,” explained Scarnati’s chief of staff, Drew Crompton. “We don’t believe that there should be a benefit from the impact fees to those few jurisdictions that may elect to ensure that drilling cannot occur in that jurisdiction.”
Pittsburgh is the most high-profile municipality to ban drilling. Its Council passed an anti-hydraulic fracturing ordinance in November.
The executive director of the Pennsylvania State Association of Township Supervisors, Dave Sanko, said he’s “pleased with the concept” of Scarnati’s legislation, but he’s worried by the zoning language, especially if municipalities would lose revenue for simply passing restrictions that are tighter than the statewide standard. “If you start deferring those things to Harrisburg in these one size fits all solutions, and you do it for the gas industry, what’s next?” he asked. “Is Harrisburg going to start making zoning determinations for trailer parks or for adult book stores or for other things they don’t want the locals to handle? We’re the last line of defense for our residents in preserving and protecting the quality of life that they’ve come to expect. So we ought to have the ability to control those things.”
Lawyers to Gas Industry: More Regulations to Come
At a recent Oil and Gas gathering in Green Tree Pennsylvania, a pair of lawyers put the industry on notice that understanding federal regulations should be among its top concerns.
K&L Gates Government Affairs Lawyer Cliff Rothenstein said scrutinity of Marcellus Shale drillers at the federal level will only grow. “There’s going to be increased EPA oversight, The Corp of Engineers will be considering 404 permits (permits to work in and around waterways and wetlands) other [Department of Interior] regulations, additional hearings, rifle shot amendments… so there is a lot on the plate that folks are going to have to pay attention to,” said Rothenstein. He also believes there will be increased state regulations in the moths and years to come.
K&L Gates partner Tim Weston told the crowd that lawyers and administrators are still hashing out issues over how existing federal regulations should be applied to the Marcellus Shale gas industry. He says regulations governing hazardous materials may apply in places drillers do not expect. “Virtually any material present at, used in, or generated by natural gas exploration and production operations may come under one or more reporting requirements,” said Weston.
Weston opined that drillers could even be classified as chemical producers, “You have to go to the definition, it is ‘an employer with a workplace where chemicals are produced for use or distribution,’ where produced includes, ‘the generation, processing, or admitting of a chemical.’” The EPA says that includes the material that flows back after a well is fracked.
Weston warned that other hazardous materials laws kick in when a site holds more than 10-thousand pounds of hazardous material. He says that may sound like a lot but it is quickly reached when sand and diesel fuel are added into the total. He said racing that number becomes a “spreadsheet nightmare” when multiple contractors come and go from a drill pad with their own sets of materials.
Weston went on to warn that although the EPA has not started to put several wells in one area into an aggregate like it does with air pollution emissions, the law is worded vaguely enough that such a standard could be applied.
K&L Gates Government Affairs Lawyer Cliff Rothenstein said scrutinity of Marcellus Shale drillers at the federal level will only grow. “There’s going to be increased EPA oversight, The Corp of Engineers will be considering 404 permits (permits to work in and around waterways and wetlands) other [Department of Interior] regulations, additional hearings, rifle shot amendments… so there is a lot on the plate that folks are going to have to pay attention to,” said Rothenstein. He also believes there will be increased state regulations in the moths and years to come.
K&L Gates partner Tim Weston told the crowd that lawyers and administrators are still hashing out issues over how existing federal regulations should be applied to the Marcellus Shale gas industry. He says regulations governing hazardous materials may apply in places drillers do not expect. “Virtually any material present at, used in, or generated by natural gas exploration and production operations may come under one or more reporting requirements,” said Weston.
Weston opined that drillers could even be classified as chemical producers, “You have to go to the definition, it is ‘an employer with a workplace where chemicals are produced for use or distribution,’ where produced includes, ‘the generation, processing, or admitting of a chemical.’” The EPA says that includes the material that flows back after a well is fracked.
Weston warned that other hazardous materials laws kick in when a site holds more than 10-thousand pounds of hazardous material. He says that may sound like a lot but it is quickly reached when sand and diesel fuel are added into the total. He said racing that number becomes a “spreadsheet nightmare” when multiple contractors come and go from a drill pad with their own sets of materials.
Weston went on to warn that although the EPA has not started to put several wells in one area into an aggregate like it does with air pollution emissions, the law is worded vaguely enough that such a standard could be applied.
Friday, April 29, 2011
Reaction to Impact Fee: Not Far Enough...or...Too Far
Senate President Pro Tem Joe Scarnati may feel like he just can’t win. In the hours after he introduced a natural gas drilling impact fee in Pennsylvania – a plan that would assess a base levy of $10,000 against every Marcellus Shale well in the state – he’s been pounded by criticism and lukewarm reaction from both sides of the aisle.
House Democratic Leader Frank Dermody of Allegheny County released a statement calling the fee a “weak alternative” to a broader severance tax. “The huge corporations that will make billions of dollars by taking gas out of Pennsylvania must pay their fair share,” he argued. “This small impact fee will not achieve that. Right now, those corporations pay nothing. With this impact fee, they would pay only a small fraction of what they should.” Democratic Senator Jim Ferlo of Pittsburgh, an outspoken opponent of drilling who’s pushing for a statewide hydraulic fracturing moratorium, was equally critical. “There is evidence that the gas drilling industry will leave scars on the Pennsylvania landscape that will place a cost on state government and all Pennsylvania taxpayers,” he said in a statement. “A severance tax is uniform and fair, and is not unreasonable when you compare it to our competitor states. We should enact a severance tax now to make sure that we are not making our taxpayers pay for the impacts of the drilling industry.”
Environmental advocates are also cold on the idea. Myron Arnowitt of Clean Water Action didn’t like the fact the fee puts money into conservation districts, rather than the Growing Greener program. “There’s also no resources that will be available to the Department of Environmental Protection from this proposal. DEP has had their budget cut every year, and they are the agency that gets to oversee and make sure we don’t have negative impacts from Marcellus Shale drilling.”
Scarnati preemptively addressed these concerns during his initial conference call, pointing out a fee directing money to DEP – whose budget is located in state’s the state’s General Fund – would be vetoed by Governor Corbett. “Those that continue to talk about, we want a severance tax – a true statewide severance tax – I think they are forgetting the reality that we have a governor who has for a year said publically and privately he will veto a tax,” he said. “I don’t think that there’s any merit in either legislative body to be pushing ahead with a severance tax, and delaying this for well over another year.”
And while environmentalists and Democrats think his plan is too small, House Republicans are indicating it’s too large. House GOP spokesman Steve Miskin reacted to the idea: “Does our caucus support it, in that it has 102 Republican votes? No, it does not. But since, looking at where the money is spent, it is clearly not tied to the budget whatsoever. So it is an interesting proposal worthy of further staff evaluation.” If you’re not fluent in legislative-speak, when spokesmen say something like, “we’ll evaluate it” or “we’ll take a look at it,” they probably aren’t too inclined to call the measure to a vote.
Even Scarnati’s partner, Senate Majority Leader Dominic Pileggi, was lukewarm on the fee, which would not provide funding to counties where drilling isn’t taking place. “My view is that the entire commonwealth needs to benefit from an extraction tax, regardless of whether or not communities have wells or pipelines in their own area,” he said during a brief phone interview.
Where does Corbett stand on the issue? His spokesman, Kevin Harley, told the Post-Gazette, “[the proposal] starts a conversation. The governor is obviously awaiting the findings of the Marcellus Shale Advisory Commission, who is looking at ways to grow the natural gas industry in an economically and environmentally responsible way and one of the things that they will be looking at is an impact fee.” In other words, we’ll get back to you. Scarnati, however, told reporters that when he and Corbett had lunch together this week, the governor effectively gave the measure a “yellow light.”
Grumblings aside, the reality is that of all the fees and taxes proposed, this new measure is the most likely to end up on Corbett’s desk. As one of the Senate’s top Republicans, Scarnati has the power to bring it to a floor vote. His statement that “it ain’t going to be easy” to pass a budget without also passing the fee shows he’s serious about making the bill a priority during the upcoming budget season, when most legislation gets passed into law. While hard-line liberals like Ferlo may vote against it, Democrats representing districts dotted with drilling rigs will likely vote yes. That would probably offset the “no” votes from conservative Republicans who think the measure goes too far.
The fee’s House fate seems a bit murkier. Majority Leader Mike Turzai is very conservative, especially on fiscal issues. He and a good chunk of GOP lawmakers are inclined to oppose any sort of tax or fee increase, no matter where it goes. That being said, public support for a severance tax or fee continues to grow – this week’s Quinnipiac University poll showed 69 percent of Pennsylvanians are in favor of the idea. Moderate Republicans in suburban districts will likely support the fee for that reason. So, in the House, passage could come down to whether Democrats agree with Scarnati’s assessment that this fee is the best they’re going to get, or whether they’ll vote “no” in a philosophical show of support for a broader tax.
House Democratic Leader Frank Dermody of Allegheny County released a statement calling the fee a “weak alternative” to a broader severance tax. “The huge corporations that will make billions of dollars by taking gas out of Pennsylvania must pay their fair share,” he argued. “This small impact fee will not achieve that. Right now, those corporations pay nothing. With this impact fee, they would pay only a small fraction of what they should.” Democratic Senator Jim Ferlo of Pittsburgh, an outspoken opponent of drilling who’s pushing for a statewide hydraulic fracturing moratorium, was equally critical. “There is evidence that the gas drilling industry will leave scars on the Pennsylvania landscape that will place a cost on state government and all Pennsylvania taxpayers,” he said in a statement. “A severance tax is uniform and fair, and is not unreasonable when you compare it to our competitor states. We should enact a severance tax now to make sure that we are not making our taxpayers pay for the impacts of the drilling industry.”
Environmental advocates are also cold on the idea. Myron Arnowitt of Clean Water Action didn’t like the fact the fee puts money into conservation districts, rather than the Growing Greener program. “There’s also no resources that will be available to the Department of Environmental Protection from this proposal. DEP has had their budget cut every year, and they are the agency that gets to oversee and make sure we don’t have negative impacts from Marcellus Shale drilling.”
Scarnati preemptively addressed these concerns during his initial conference call, pointing out a fee directing money to DEP – whose budget is located in state’s the state’s General Fund – would be vetoed by Governor Corbett. “Those that continue to talk about, we want a severance tax – a true statewide severance tax – I think they are forgetting the reality that we have a governor who has for a year said publically and privately he will veto a tax,” he said. “I don’t think that there’s any merit in either legislative body to be pushing ahead with a severance tax, and delaying this for well over another year.”
And while environmentalists and Democrats think his plan is too small, House Republicans are indicating it’s too large. House GOP spokesman Steve Miskin reacted to the idea: “Does our caucus support it, in that it has 102 Republican votes? No, it does not. But since, looking at where the money is spent, it is clearly not tied to the budget whatsoever. So it is an interesting proposal worthy of further staff evaluation.” If you’re not fluent in legislative-speak, when spokesmen say something like, “we’ll evaluate it” or “we’ll take a look at it,” they probably aren’t too inclined to call the measure to a vote.
Even Scarnati’s partner, Senate Majority Leader Dominic Pileggi, was lukewarm on the fee, which would not provide funding to counties where drilling isn’t taking place. “My view is that the entire commonwealth needs to benefit from an extraction tax, regardless of whether or not communities have wells or pipelines in their own area,” he said during a brief phone interview.
Where does Corbett stand on the issue? His spokesman, Kevin Harley, told the Post-Gazette, “[the proposal] starts a conversation. The governor is obviously awaiting the findings of the Marcellus Shale Advisory Commission, who is looking at ways to grow the natural gas industry in an economically and environmentally responsible way and one of the things that they will be looking at is an impact fee.” In other words, we’ll get back to you. Scarnati, however, told reporters that when he and Corbett had lunch together this week, the governor effectively gave the measure a “yellow light.”
Grumblings aside, the reality is that of all the fees and taxes proposed, this new measure is the most likely to end up on Corbett’s desk. As one of the Senate’s top Republicans, Scarnati has the power to bring it to a floor vote. His statement that “it ain’t going to be easy” to pass a budget without also passing the fee shows he’s serious about making the bill a priority during the upcoming budget season, when most legislation gets passed into law. While hard-line liberals like Ferlo may vote against it, Democrats representing districts dotted with drilling rigs will likely vote yes. That would probably offset the “no” votes from conservative Republicans who think the measure goes too far.
The fee’s House fate seems a bit murkier. Majority Leader Mike Turzai is very conservative, especially on fiscal issues. He and a good chunk of GOP lawmakers are inclined to oppose any sort of tax or fee increase, no matter where it goes. That being said, public support for a severance tax or fee continues to grow – this week’s Quinnipiac University poll showed 69 percent of Pennsylvanians are in favor of the idea. Moderate Republicans in suburban districts will likely support the fee for that reason. So, in the House, passage could come down to whether Democrats agree with Scarnati’s assessment that this fee is the best they’re going to get, or whether they’ll vote “no” in a philosophical show of support for a broader tax.
Thursday, April 28, 2011
Marcellus Town Hall
The Senate Democratic Policy Committee held a Marcellus Shale Town Hall Meeting in Oakland on Thursday afternoon.
Head by State Senator Jim Ferlo, 6 Senate Members spent several hours hearing from natural gas industry executives, public safety officials and environmental advocates.
Ferlo said a primary concern of his is the Commonwealth’s 100 year old legacy of industrial capitalism as well as protecting the lucrative industries in the state such as agriculture, tourism and water.
Among the speakers was Conrad Dan Volz, the outgoing director of The Center for Healthy Environments and Community out of The University of Pittsburgh.
"We are essentially spending billions of dollars as a country to make our infrastructure not hard targets for terrorists. And here we are placing wells that explode, catch on fire and have serious blow-out problems within a stone’s throw from people’s homes," he said.
The meeting was interrupted by about a hundred protesters ranging in age from 5 to 93 years of age. They came from a variety of different groups, mostly teacher’s unions and the Pittsburgh Interfaith Network. They marched for several blocks through Oakland chanting, “Stop the Blasts, Tax Oil Gas!”
Protestors spoke about taxing the natural gas industry and using the money to offset the large financial deficits targeting education in the state budget. This came on the same day that speaking elsewhere, Governor Tom Corbett reportedly suggested universities facing financial problems could drill for natural gas on campuses.
They then opened up the meeting to public comment.
Ferlo has introduced two pieces of legislation concerning Marcellus Shale. One calls for a one year moratorium on expanded drilling and the other would establish higher fees for DEP Violations, improve well-site safety and would establish a severance tax that would return revenue to local communities.
Listen to a longer version of the story here.
Head by State Senator Jim Ferlo, 6 Senate Members spent several hours hearing from natural gas industry executives, public safety officials and environmental advocates.
Ferlo said a primary concern of his is the Commonwealth’s 100 year old legacy of industrial capitalism as well as protecting the lucrative industries in the state such as agriculture, tourism and water.
Among the speakers was Conrad Dan Volz, the outgoing director of The Center for Healthy Environments and Community out of The University of Pittsburgh.
"We are essentially spending billions of dollars as a country to make our infrastructure not hard targets for terrorists. And here we are placing wells that explode, catch on fire and have serious blow-out problems within a stone’s throw from people’s homes," he said.
The meeting was interrupted by about a hundred protesters ranging in age from 5 to 93 years of age. They came from a variety of different groups, mostly teacher’s unions and the Pittsburgh Interfaith Network. They marched for several blocks through Oakland chanting, “Stop the Blasts, Tax Oil Gas!”
Protestors spoke about taxing the natural gas industry and using the money to offset the large financial deficits targeting education in the state budget. This came on the same day that speaking elsewhere, Governor Tom Corbett reportedly suggested universities facing financial problems could drill for natural gas on campuses.
They then opened up the meeting to public comment.
Ferlo has introduced two pieces of legislation concerning Marcellus Shale. One calls for a one year moratorium on expanded drilling and the other would establish higher fees for DEP Violations, improve well-site safety and would establish a severance tax that would return revenue to local communities.
Listen to a longer version of the story here.
Corbett Suggests Drilling at State Schools
Pennsylvania Governor Tom Corbett says some Pennsylvania universities should consider drilling for natural gas below their campuses to help solve financial problems. The idea was offered up as the governor spoke to the Pennsylvania Association of Councils of Trustees, which was meeting at Edinboro University.
The idea comes as institutions of higher education see state funding about to be cut. Corbett's proposed budget for the next fiscal year would reduce aid to colleges and universities by 50 percent.
Corbett says six of the 14 campuses in the Pennsylvania State System of Higher Education are located on the Marcellus Shale formation.
The idea comes as institutions of higher education see state funding about to be cut. Corbett's proposed budget for the next fiscal year would reduce aid to colleges and universities by 50 percent.
Corbett says six of the 14 campuses in the Pennsylvania State System of Higher Education are located on the Marcellus Shale formation.
Environmental Group Not Impressed With Impact Fee
Senate Republicans' Marcellus Shale drilling impact fee proposal has moved closer to reality but it's not formal legislation just yet.
The bill itself won't be introduced until next week. But Senate President Pro Tem Joe Scarnati has unveiled the outlines of his plan, which would assess a $10,000 annual base fee on every Marcellus Shale well in Pennsylvania. The plan includes multipliers based on production and gas prices, which could increase the levy to more than $20,000 or $30,000 for some wells.
Scarnati's proposal would send more than half of the revenue to counties and townships where drilling is taking place. The rest would go to environmental conservation districts, and to fund environmental cleanup and infrastructure repair projects. Of the money designated for local governments, 36 percent would head to counties hosting Marcellus wells; 37 percent would go to municipalities where drilling is taking place; and 27 percent would be designated for municipalities having no producing sites but located in counties with producing unconventional gas wells.
"This is not a giveaway," said Scarnati. "Even the conservative numbers that we use are well above the estimated severance tax from last year's [Senate Republican severance tax] model."
A spreadsheet distributed by Scarnati's office estimates $121 million in 2011 and retroactive 2010 collections, and $103 in 2012 revenue.
Scarnati is hoping for an early June Senate vote, and passage of the law alongside this year's state budget.
"I cannot see how we can get the budget process done, with all the cuts that are occurring on so many lines, without addressing an impact fee for this industry," he said. "It's not going to solve our budget problem. Not by any sense. But the political pressures that are on legislators because of the cuts starts connecting dots."
Under Scarnati's proposal, the Public Utility Commission would collect and distribute the fee money. That, in his mind, works around Governor Corbett's demand that fee revenue stay out of Pennsylvania's General Fund.
Jan Jarrett of PennFuture isn't too impressed with Scarnati's plan, at first glance. "We need a robust and broad-based tax on the drillers that will protect the local communities, provide funding for environmental cleanup and protection, and benefit all Pennsylvanians for the loss of our natural resources. Senator Scarnati's plan unfortunately fails to provide vitally necessary environmental protection funding, and does little to benefit the average Pennsylvania taxpayer," she said in an emailed statement.
Anticipating criticism, Scarnati said hopes for a broader tax are unrealistic, given the fact Corbett has promised to veto any tax increase. "Those who have been clamoring for a severance tax or impact fee on the issue of issue of the environment, they should be very supportive in fact that we are putting dollars into real cleanup programs. "
Katherine Klaber, the president and executive director of the Marcellus Shale Coalition, issued the following statement on the proposal: "Our industry understands that, while there are tremendous financial opportunities in Marcellus Shale development, there also can be impacts felt by our host communities. Policy decisions made at the state and local levels of government most certainly have an effect on job creation and the investment of capital needed to develop and maximize the benefits of clean-burning natural gas from the Marcellus. Pennsylvania has the opportunity to create a sustained and highly-competitive environment for growth of this productive industry, with all of the associated benefits for its residents. In order to meet this goal together, any local impact fee on Marcellus production must be clear, straightforward, and competitive. We are open to discussing with the governor's Marcellus Shale Advisory Commission, and all legislators, proposals that focus on strengthening our partnership with municipal governments, while providing funds to local communities."
The bill itself won't be introduced until next week. But Senate President Pro Tem Joe Scarnati has unveiled the outlines of his plan, which would assess a $10,000 annual base fee on every Marcellus Shale well in Pennsylvania. The plan includes multipliers based on production and gas prices, which could increase the levy to more than $20,000 or $30,000 for some wells.
Scarnati's proposal would send more than half of the revenue to counties and townships where drilling is taking place. The rest would go to environmental conservation districts, and to fund environmental cleanup and infrastructure repair projects. Of the money designated for local governments, 36 percent would head to counties hosting Marcellus wells; 37 percent would go to municipalities where drilling is taking place; and 27 percent would be designated for municipalities having no producing sites but located in counties with producing unconventional gas wells.
"This is not a giveaway," said Scarnati. "Even the conservative numbers that we use are well above the estimated severance tax from last year's [Senate Republican severance tax] model."
A spreadsheet distributed by Scarnati's office estimates $121 million in 2011 and retroactive 2010 collections, and $103 in 2012 revenue.
Scarnati is hoping for an early June Senate vote, and passage of the law alongside this year's state budget.
"I cannot see how we can get the budget process done, with all the cuts that are occurring on so many lines, without addressing an impact fee for this industry," he said. "It's not going to solve our budget problem. Not by any sense. But the political pressures that are on legislators because of the cuts starts connecting dots."
Under Scarnati's proposal, the Public Utility Commission would collect and distribute the fee money. That, in his mind, works around Governor Corbett's demand that fee revenue stay out of Pennsylvania's General Fund.
Jan Jarrett of PennFuture isn't too impressed with Scarnati's plan, at first glance. "We need a robust and broad-based tax on the drillers that will protect the local communities, provide funding for environmental cleanup and protection, and benefit all Pennsylvanians for the loss of our natural resources. Senator Scarnati's plan unfortunately fails to provide vitally necessary environmental protection funding, and does little to benefit the average Pennsylvania taxpayer," she said in an emailed statement.
Anticipating criticism, Scarnati said hopes for a broader tax are unrealistic, given the fact Corbett has promised to veto any tax increase. "Those who have been clamoring for a severance tax or impact fee on the issue of issue of the environment, they should be very supportive in fact that we are putting dollars into real cleanup programs. "
Katherine Klaber, the president and executive director of the Marcellus Shale Coalition, issued the following statement on the proposal: "Our industry understands that, while there are tremendous financial opportunities in Marcellus Shale development, there also can be impacts felt by our host communities. Policy decisions made at the state and local levels of government most certainly have an effect on job creation and the investment of capital needed to develop and maximize the benefits of clean-burning natural gas from the Marcellus. Pennsylvania has the opportunity to create a sustained and highly-competitive environment for growth of this productive industry, with all of the associated benefits for its residents. In order to meet this goal together, any local impact fee on Marcellus production must be clear, straightforward, and competitive. We are open to discussing with the governor's Marcellus Shale Advisory Commission, and all legislators, proposals that focus on strengthening our partnership with municipal governments, while providing funds to local communities."
Drilling Official Asked To Withdraw from Panel
Environmental advocates are concerned by the number of drilling violations racked up by the energy companies serving on Governor Corbett’s Marcellus Shale Commission. Clean Water Action led a protest at today’s commission meeting to make that point, a day after releasing a report detailing more than 500 violations cited to energy companies on the panel in 2010.
But, in fact, Corbett did ask Chesapeake Energy’s representative to step down from the commission for just that reason.
When Corbett’s office announced the commission on March 8th, Chesapeake vice president Dave Spigelmyer was listed as one of its 30 members. According to four sources, Corbett asked him to withdraw from the panel after a February fire at a Chesapeake drilling site in Washington County injured three workers. Corbett advisers were worried the company’s violations would become a distraction, as the commission debates drilling policy.
Chesapeake, which currently operates 105 Marcellus Shale wells in Pennsylvania, racked up 132 violations in 2010, according to the Clean Water Action report. Last week, one of its Bradford County wells leaked tens of thousands of gallons of fracking fluid. The company has voluntarily halted hydraulic fracturing and other well completion activities at its Pennsylvania sites while it investigates the cause of the spill.
Chesapeake spokesman Matt Sheppard disputes the account of the people Pennsylvania Public Radio spoke with, who come from both inside and out of state government, emailing, “[Spigelmyer] stepped aside from the Marcellus Commission prior to the first meeting to focus on Chesapeake operations and his duties as vice chair of the Marcellus Shale Coalition.” Corbett’s office did not return calls for comment.
But, in fact, Corbett did ask Chesapeake Energy’s representative to step down from the commission for just that reason.
When Corbett’s office announced the commission on March 8th, Chesapeake vice president Dave Spigelmyer was listed as one of its 30 members. According to four sources, Corbett asked him to withdraw from the panel after a February fire at a Chesapeake drilling site in Washington County injured three workers. Corbett advisers were worried the company’s violations would become a distraction, as the commission debates drilling policy.
Chesapeake, which currently operates 105 Marcellus Shale wells in Pennsylvania, racked up 132 violations in 2010, according to the Clean Water Action report. Last week, one of its Bradford County wells leaked tens of thousands of gallons of fracking fluid. The company has voluntarily halted hydraulic fracturing and other well completion activities at its Pennsylvania sites while it investigates the cause of the spill.
Chesapeake spokesman Matt Sheppard disputes the account of the people Pennsylvania Public Radio spoke with, who come from both inside and out of state government, emailing, “[Spigelmyer] stepped aside from the Marcellus Commission prior to the first meeting to focus on Chesapeake operations and his duties as vice chair of the Marcellus Shale Coalition.” Corbett’s office did not return calls for comment.
Wednesday, April 27, 2011
EPA Update on Gas Well Leak
A spokesman for the U.S. Environmental Protection Agency says Chesapeake Energy Inc. has informed them that the company has sent the requested information about the spill of thousands of gallons of fracking water at a Marcellus Shale drilling site in Bradford County.
David Sternberg told WDUQ News this morning that Chesapeake Energy has told the agency that they overnighted a CD with the information that was requested. The EPA had wanted the information by yesterday but Sternberg says even though they haven't received the data yet, the agency considers the company "to be in compliance" with the request.
David Sternberg told WDUQ News this morning that Chesapeake Energy has told the agency that they overnighted a CD with the information that was requested. The EPA had wanted the information by yesterday but Sternberg says even though they haven't received the data yet, the agency considers the company "to be in compliance" with the request.
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