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Public Comment on Pennsylvania Oil and Gas Rulemaking Ends May 19

The public comment period in the final rulemaking of the “Environmental Protection Performance Standards of Oil and Gas Well Sites” ends on May 19, after four years of revisions to and multiple rounds of comment on the regulations proposed by the Pennsylvania Department of Environmental Protection (DEP).

The revisions to Chapter 78 of the Pennsylvania Code, governing the protection of natural resources, include public resource protection, revisions to information collected in the permit application process and revisions to waste storage/management regulations. In addition, the revisions split Chapter 78 into two sections, one for conventional oil and gas development and one for unconventional development (i.e., fracking).

The DEP said it is specifically looking for comments regarding noise mitigation, centralized tank storage, and “other critical communities,” which are defined as animal and plant species not currently on the endangered list.

Permits 

Impacts to public resources will be considered in the application process. These resources include, but are not limited to, publicly owned parks and game lands, public drinking water wellhead protection areas, and playgrounds and schools, among other areas.

Additional review of the application may come from the Fish and Boat Commission, Department of Conservation and Natural Resources, the Game Commission, and the Pennsylvania Historic and Museum Commission. These agencies will have 30 days (instead of 15 days) to review permits.

Abandoned and orphaned wells in the vicinity of the proposed development must be reported in the permit application process, with a monitoring plan in place for drilling operations.

The permit renewal term will be extended from one year to two years. Drilling must be completed within 16 months of permit issue.

Proposed regulations require operators to restore drinking water impacted by drilling to either the standards of the Safe Drinking Water Act or pre-drill conditions, whichever is of a higher quality. In addition, all remediation must be conducted in accordance with the Land Recycling and Environmental Remediation Standards Act.

Resource Protection

Requires operators of unconventional well sites to report to the DEP the amount and type of waste produced, and the method of disposal or reuse on a monthly basis.

Some additional permits may be required, including for operators using centralized wastewater storage impoundments.

The proposed regulations prohibit the use of pits for temporary storage of production fluids or wastes on unconventional well sites.

Storage and Disposal

In the event of a spill or release, the regulations require notification to owners and sampling of water supplies with the potential to be impacted.

Additionally, health standards for noise control from unconventional operations will be put into place.

A previously proposed requirement to remove older underground tanks was removed from the draft final rulemaking.

The draft makes a centralized tank storage site an option for natural gas drilling, with the proper permit approval and with geographical restrictions.

The proposed regulations require DEP approval of the disposal of waste and cuttings from below the casing seat at unconventional well sites.

For more details about the proposed regulations, visit Title 25 at pabulletin.com.

Written or electronic comments must be received by May 19, with a subject heading Oil and Gas Rulemaking and a return name and address. Faxes and voicemail will not be accepted.

Electronic comments can be submitted through the DEP online comment system at http://www.ahs.dep.pa.gov/RegComments or by email to RegComments@pa.gov.

Written comments can be sent to the Department of Environmental Protection Policy Office, 400 Market Street, P.O. Box 2063, Harrisburg, PA 17105.

Update on PA DEP Financial Requirements for Private Dams

In a recent Pennsylvania Department of Environmental Protection (PA DEP) informational meeting sponsored by Rep. Rosemary Brown (R-Monroe/Pike), DEP representatives discussed the annual permit fee imposed on dam owners to cover a portion of the DEP costs to administer the Dam Safety program and the fiscal responsibility regulations. The meeting was primarily for private dam owners, as the financial responsibility requirement is handled differently for publicly owned dams.

The legislation requires private owners of high hazard dams to post a financial guarantee adequate to breach the dam if the owner does not comply with DEP safety requirements by January 2016. Of the 3, 378 dams in Pennsylvania, 778 have been deemed high hazard. Those high hazard dams that are publicly owned do not have to prove fiscal responsibility and are not subject to annual fees.

The required fiscal guarantee poses a hardship for many private individuals and associations—such as hunting clubs, homeowners associations, and non-profit organizations—who are unable to obtain a surety bond. The alternative for private dam owners to meet this fiscal requirement is to provide a certificate of deposit (CD) that DEP can draw from if the dam must be breached. For some associations, the financial guarantee reaches into the $100,000’s, a sum that will be very difficult for many private owners to raise and have sit in a CD restricted for this purpose.

The level of funding needed to meet fiscal responsibility and dam permitting requirements, depends on the hazard classification of the dam. The dam hazard classification is based on the probable effects of a failure. Therefore, downstream developments beyond the control of the dam owner can cause the hazard classification of the dam to change. Dam owners may retain the services of an engineering firm to conduct annual inspections, evaluate the hazard level of the dam, and propose cost-effective improvements to maintain safe operation of the dam.

In late 2014, representatives from PA DEP and state legislators are discussing modifications to the existing legislation to establish an insurance program for private dam owners to cover the cost if a dam breach is required. Until further legislation is completed, however, the current dam permitting process, inspections, and fiscal responsibility will require potentially significant action from private dam owners throughout the state.

Additional Resources:

PA DEP dam safety information: http://www.portal.state.pa.us/portal/server.pt/community/dam_safety/10501

PA DEP “Dams and Dam Safety: The Invisible Infrastructure” presentation: http://www.education.state.pa.us/portal/server.pt/document/1203131/panel_on_dam_emergenies_-_pa_dep_presentation_pdf

RKR Hess Wins Lehigh Valley Planning Commission Award

On October 23, the Lehigh Valley Planning Commission (LVPC) held its inaugural “Celebration of Excellence in Planning” awards ceremony at Iacocca Hall in Bethlehem, Pa.  Read more

RKR Hess Presents Case Study at Flood Protection Program’s 14th Annual Workshop

Recently, the Pennsylvania Department of Environmental Protection (PADEP) invited RKR Hess engineers to make a presentation at the Flood Protection Program’s 14th Annual Workshop. Held in State College, Pa., the workshop was attended by municipal representatives responsible for the operation and maintenance of flood protection projects, as well as representatives from agencies that regulate and inspect these facilities. Read more

PA Gubernatorial Candidates’ Stances on Shale Gas Drilling and Regulations

In one week, Pennsylvania voters will take to the polls to choose their next governor. As the Republican incumbent, Governor Tom Corbett faces a major opponent in Democratic candidate Tom Wolf to secure his seat. Among the many issues debated throughout each candidate’s campaign, shale gas drilling remains an important topic for Commonwealth citizens. Read more

EPA Announces Initial Steps Toward Regulating Disclosure of Chemicals Used in Hydraulic Fracturing

On May 9, the Environmental Protection Agency (EPA) published an Advanced Notice of Proposed Rulemaking (ANPR) soliciting comment from stakeholders and the general public regarding obtaining information on chemical substances and mixtures used in hydraulic fracturing for oil and gas exploration and development.  Read more

Report on Chevron Well Explosion in Greene County, Pa.

On February 11, 2014, three gas wells exploded at Chevron’s gas well site in Dunkard Township, Green County, Pa. According to the Pennsylvania Department of Environmental Protection (PA DEP), as of March 6, all three of the gas wells involved—6H, 7H and 8H—are now secure.  Read more

Pennsylvania Counties Benefit From Act 13 Impact Fees

During the November 21, 2013, bi-monthly Pennsylvania Commonwealth Financing Authority (CFA) meeting, the dispersal of approximately $44 million from Act 13 impact fees gathered from Marcellus Shale well operators was approved for 183 projects across the Commonwealth. Read more

RKR Hess Welcomes Timothy Kramer to their Transportation Services Department

RKR Hess is excited to welcome the newest addition to our transportation services team, Project Engineer, Timothy Kramer, P.E. Joining us from Alfred Benesch & Company (Allentown, Pa.) where he served as Project Engineer, Kramer prepared and managed tasks associated with Design-Build, Design-Bid-Build, and highway design and bridge replacement projects.  Read more

A Report on the NE Pa. Marcellus Shale and DRBC Regulations

As reported by The Associated Press, energy companies Hess Corp. and Newfield Exploration Co. recently terminated their property leases in northeastern Pennsylvania, where drilling of the Marcellus Shale has been put on hold due to the ongoing creation and negotiation of environmental protection regulations by the Delaware River Basin Commission (DRBC). A master lease for drilling in the region was signed in 2008 between Newfield and Hess, and the Wayne Property Owners Alliance.  Read more