Source: Pennsylvania Bulletin

INDEPENDENT REGULATORY REVIEW COMMISSION
Environmental Quality Board
Regulation #7-483 (IRRC #3022)
Oil and Gas Well Fee Amendments
November 14, 2013

 We submit for your consideration the following comments on the proposed rulemaking published in the September 14, 2013 Pennsylvania Bulletin. Our comments are based on criteria in Section 5.2 of the Regulatory Review Act (RRA) (71 P. S. § 745.5b). Section 5.1(a) of the RRA (71 P. S. § 745.5a(a)) directs the Environmental Quality Board (EQB) to respond to all comments received from us or any other source.
1. Section 78.1. Definitions.—Clarity and lack of ambiguity; Need.

Conventional well

 EQB proposes to define conventional well as ''a bore hole drilled or being drilled for the purpose of or to be used for the production of oil or gas from a conventional formation.'' Commentators question whether secondary and tertiary recovery or disposal injection wells would be considered conventional wells under this definition. The commentators further state that both the regulated community, as well as regulators, would benefit from a more detailed definition of a conventional well. Specifically, commentators suggest using the description of a conventional well in Section E of the Preamble as the basis for a more detailed definition of conventional well in the regulation.

 We ask EQB to consider the commentators' suggestion or ensure that the definition of a conventional well in the final-form regulation is clear and lacks ambiguity for the regulated community.

Subsection (a)

 EQB proposes to delete the current subsection (a) which states that certain words and terms used in the chapter are defined by other statutes. EQB did not address this deletion in the Preamble. We ask EQB to explain the need for removing this subsection in the final-form regulation.
2. Section 78.19. Permit application fee schedule.—Economic or fiscal impacts; Reasonableness.

 The Department's Oil and Gas Program (Program) is funded primarily through the oil and gas well permit fee. The Department of Environmental Protection (Department) is required to evaluate the oil and gas well permit fee every three years and recommend any changes to the fee necessary ''to address any disparity between program income generated by the fees and the Department's cost of administering the program with the objective of ensuring fees meet all program costs and programs are self-sustaining.'' 25 Pa. Code § 78.19(f). However, the Oil and Gas Act (Act) requires the permit fee to bear a ''reasonable relationship'' to the cost of administering the Act. 58 P. S. § 601.201(d).

 Based on the most recent evaluation, EQB proposes to change the current oil and gas well permit fee from a sliding fee schedule to a fixed fee for most wells. The change would result in a fixed $5,000 fee for each nonvertical unconventional well (an increase of $1,800 or 36 percent from the current average permit fee of $3,200), and a fixed $4,200 fee for each vertical unconventional well (an increase that is more than double the current average permit fee of $2,000).

 As noted above, permit fees must bear a ''reasonable relationship'' to the cost of the Program. In reviewing the Regulatory Analysis Form and Preamble, we do not see an explanation regarding how the proposed permit fees relate to the anticipated Program costs. Given that EQB proposes significant increases for unconventional well permits, we ask EQB to explain how it arrived at the anticipated Program costs to support the reasonableness of the increases. We will review EQB's response to these concerns as part of our consideration of the final-form regulation.

SILVAN B. LUTKEWITTE, III, 
Chairperson
<http://www.pabulletin.com/secure/data/vol43/43-48/2234.html>


PENNSYLVANIA PUBLIC UTILITY COMMISSION
NOTICES
Certification of Well Plugging/Reclassification; Doc. No. M-2012-2288561
[43 Pa.B. 7051]
[Saturday, November 30, 2013]

 Under 58 Pa.C.S. §§ 2301—2318 (relating to unconventional gas well fee), known as Act 13, payment of the impact fee ceases upon certification (certification date) to the Department of Environmental Protection (Department) by a producer that the unconventional gas well has ceased production and has been plugged according to the Department regulations. See 58 Pa.C.S. § 2302(e) (relating to unconventional gas well fee). Consistent with Act 13, the certification date to the Department is the date an acceptable certificate of well plugging is filed with and time-stamped by the Department. The certification date is the date of the official Department time-stamp placed on the certificate of well plugging. Note that the date plugging was physically completed, as supplied by the producer on the certificate of well plugging, is not the certification date to the Department for purposes of 58 Pa.C.S. § 2302(e). The Pennsylvania Public Utility Commission (Commission) encourages producers to maintain time-stamped copies of all certificates of well plugging filed with the Department.

 Regarding reclassified unconventional wells, the date an acceptable reclassification document1 amending a well's classification is filed with and time-stamped by the Department is the reclassification date. The reclassification date is the date of the official Department time-stamp placed on that document. The Commission encourages producers to maintain time-stamped copies of all documents amending well classifications filed with the Department.

 Direct questions to John Herzog, Assistant Counsel, Law Bureau at (717) 787-5000.

ROSEMARY CHIAVETTA, 
Secretary
<http://www.pabulletin.com/secure/data/vol43/43-48/2237.html>

Southwest Region: Waterways & Wetlands Program Manager, 400 Waterfront Drive, Pittsburgh, Pa 15222-4745.
ESCGP-2 No.     Applicant Name &
Address     County     Municipality     Receiving
Water/Use
26138001     Texas Eastern Transmission
890 Center St
Suite 300 Waltham, MA 02451
    Fayette     German Township, Menallen Township, North Union Township, Redstone Township, and Dunbar Township     Dunlap Creek (WWF), UNT to Dunlap Creek (WWF), Jennings Run (WWF), UNT to Jennings Run (WWF), and UNT to Redstone Creek (WWF)
<http://www.pabulletin.com/secure/data/vol43/43-49/2275e.html>

-------------------------
Source: eNOTICE

Authorization ID:    999961
Permit number:    051-24525
Site:    CHESS 1H ESCGP-EXPEDITED
Client:    BURNETT OIL CO INC
Authorization type:    Drill & Operate Well Permit
Application type:    Renewal
Authorization is for:    FACILITY
Date received:    10/24/2013
Status:    Issued on 11/25/2013
Sub-Facility ID    Sub-Facility Name    Description
1086124     CHESS 1     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=999961>
Location: 39.859844,-79.7907 <http://mapq.st/UUd2cf>
Municipalities: Georges Twp [an Environmental Justice Area]

Authorization ID:    995710
Permit number:    ESX11-051-0039
Site:    REJISS 1H-3H UNIT ESCGP-EXPEDITED
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Expedited E&S Stormwater General Permit 1
Application type:    Amendment
Authorization is for:    SITE
Date received:    09/27/2013
Status:    Pending
Permit Review Notes:
Date    Review Note
11/26/2013    Applicant has been issued a deficiency letter. If applicable, this application no longer qualifies for the Permit Decision Guarantee.
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=995710>
Location [of REJISS UNIT 1H]: 39.835447,-79.884836 <http://osm.org/go/ZWpOF2yQ--?m=>
Municipalities: Nicholson Twp [an Environmental Justice Area]

Authorization ID:    1002118
Permit number:    ESX11-051-0034
Site:    DICARLO WELL SITES ESCGP-EXPEDITED
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Expedited E&S Stormwater General Permit 1
Application type:    Amendment
Authorization is for:    SITE
Date received:    11/12/2013
Status:    Pending
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1002118>
Municipalities: Luzerne Twp
Location [of DICARLO UNIT 13H OG WELL]: 39.934281,-79.895722 <http://osm.org/go/ZWpY724Q-?m=>

Authorization ID:    1003287
Permit number:    051-24595
Site:    BAILY 8-17 H WELL SITE ESCGP-2 EXPEDITED
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/15/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description    eMap PA Location
1121828     BAILY UNIT 11H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1003287>
Location [Approximate]: 39.963831,-79.989595 <http://osm.org/go/ZWpTvDYt--?m=>
[See Notes.]
Municipalities: Luzerne Twp

Authorization ID:    999881
Permit number:    ESX10-051-0042
Site:    KURUTZ 10H, 11H, AND 12H ESCGP-EXPEDITED
Client:    ATLAS RESOURCES LLC
Authorization type:    Expedited E&S Stormwater General Permit 1
Application type:    Amendment
Authorization is for:    SITE
Date received:    10/24/2013
Status:    Pending
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=999881>
Location [of KURUTZ UNIT 10H OG WELL]: 39.967378,-79.679111 <http://osm.org/go/ZWpzPebx--?m=>
[An Environmental Justice Area]
Municipalities: Dunbar Twp
[See Notes.]

Authorization ID:    990628
Permit number:    ESX10-051-0039
Site:    NORTH PIPELINE PROJECT ESCGP-EXPEDITED
Client:    LAUREL MTN MIDSTREAM OPR LLC
Authorization type:    Expedited E&S Stormwater General Permit 1
Application type:    Amendment
Authorization is for:    SITE
Date received:    08/20/2013
Status:    Pending
Permit Review Notes:
Date    Review Note
12/5/2013    Applicant has been issued a deficiency letter. If applicable, this application no longer qualifies for the Permit Decision Guarantee.
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=990628>
Municipalities: German Twp [an Environmental Justice Area], Menallen Twp, Redstone Twp

Authorization ID:    993275
Permit number:    GP04260713002
Site:    SR-4007 WATER INTAKE
Client:    SKYWATER DEV LLC
Authorization type:    GP-04 Intake & Outfall Structures
Application type:    New
Authorization is for:    FACILITY
Date received:    09/06/2013
Status:    Pending
Permit Review Notes:
Date    Review Note
12/6/2013    The technical review and decision review are complete and either the permit decision and/or permit issuance are forthcoming.
9/30/2013    Applicant has been issued a deficiency letter. If applicable, this application no longer qualifies for the Permit Decision Guarantee.
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=993275>
Estimated Location: 40.015602,-79.815322 <http://osm.org/go/ZWpe6QdQ--?m=> [See Notes.]
Municipalities: Redstone Twp

Authorization ID:    1003390
Permit number:    ESX11-051-0030
Site:    PORTER WELL SITE ESCGP-EXPEDITED
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Expedited E&S Stormwater General Permit 1
Application type:    Amendment
Authorization is for:    SITE
Date received:    11/21/2013
Status:    Pending
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1003390>
Location [Approximate, Speculative]: 40.126115,-79.766563 <http://osm.org/go/ZWshKb9A--?m=>
Municipalities: Perry Twp, Rostraver Twp, Westmoreland County

Authorization ID:    1004503
Permit number:    051-24483
Site:    ROSUL UNIT WEST OG WELL PAD
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit Drill Deeper
Application type:    New
Authorization is for:    FACILITY
Date received:    11/25/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description
1122516     ROSUL UNIT 5H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004503>
Location: 40.087967,-79.801267 <http://osm.org/go/ZW63fkFU--?m=>
Municipalities: Washington Twp

Authorization ID:    1004531
Permit number:    051-24602
Site:    MARTIN UNIT NORTH 1H OG WELL
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/25/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description
1122526     MARTIN UNIT NORTH 1H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004531>
Municipalities: Franklin Twp

Authorization ID:    1004541
Permit number:    051-24603
Site:    MARTIN UNIT NORTH 1H OG WELL
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/25/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description
1122549     MARTIN UNIT NORTH 2H     Well
1122550     MARTIN UNIT NORTH 2H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004541>

Authorization ID:    1004547
Permit number:    051-24605
Site:    MARTIN UNIT NORTH 1H OG WELL
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/25/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description
1122554     MARTIN UNIT NORTH 3H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004547>

Authorization ID:    1004554
Permit number:    051-24606
Site:    MARTIN UNIT NORTH 1H OG WELL
Client:    CHEVRON APPALACHIA LLC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/25/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description    eMap PA Location
1122555     MARTIN UNIT NORTH 4H     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004554>

Authorization ID:    1004545
Permit number:    051-24604
Site:    HIBBS 1H ESCGP-EXPEDITED
Client:    BURNETT OIL CO INC
Authorization type:    Drill & Operate Well Permit
Application type:    New
Authorization is for:    FACILITY
Date received:    11/27/2013
Status:    Pending
Sub-Facility ID    Sub-Facility Name    Description
1122553     HIBBS UNIT 2V     Well
<http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?AuthID=1004545>
Location [Approximate, Speculative] 39.850482,-79.832842 <http://osm.org/go/ZWpO2aP_--?m=>
Municipalities: German Twp [an Environmental Justice Area], Nicholson Twp

-------------------------
Source: DEP SPUD (drilling started) Report

SPUD DATE: 12/4/2013
API / PERMIT: 051-24537
OPERATOR: CHEVRON APPALACHIA LLC
MUNICIPALITY: Springhill Twp
FARM NAME: KNIGHT UNIT 14H
WELL TYPE: GAS
WELL STATUS: Active
LATITUDE: 39.738977
LONGITUDE: -79.844827
CONFIGURATION: Horizontal Well
UNCONVENTIONAL: Yes

SPUD DATE: 12/6/2013
API / PERMIT: 051-24538
OPERATOR: CHEVRON APPALACHIA LLC
MUNICIPALITY: Springhill Twp
FARM NAME: KNIGHT UNIT 15H
WELL TYPE: GAS
WELL STATUS: Active
LATITUDE: 39.739013
LONGITUDE: -79.844797
CONFIGURATION: Horizontal Well
UNCONVENTIONAL: Yes

SPUD DATE: 12/8/2013
API / PERMIT: 051-24539
OPERATOR: CHEVRON APPALACHIA LLC
MUNICIPALITY: Springhill Twp
FARM NAME: KNIGHT UNIT 16H
WELL TYPE: GAS
WELL STATUS: Active
LATITUDE: 39.739047
LONGITUDE: -79.844769
CONFIGURATION: Horizontal Well
UNCONVENTIONAL: Yes

-------------------------
Source: SkyTruth Fayette County Drilling Alerts

NRC Report ID: 1067369
Incident Time: 2013-12-02 21:30:00
Nearest City: Connellsville, PA
Location: 1450 MORRELL AVE.
Incident Type: FIXED
Material: UNKNOWN MATERIAL
Medium Affected: AIR
Suspected Responsible Party:
SkyTruth Analysis
Lat/Long: 40.002321, -79.604100 (Approximated from street_address)
Report Description
CALLER IS REPORTING A STRONG ODOR IN THE AIR FROM AN UNKNOWN SOURCE.
ID:    ea0cc0b3-e055-3059-81ae-b90fbfacd36a
Source:    http://www.nrc.uscg.mil/reports/rwservlet?standard_web+inc_seq=1067369
Date:    2013-12-02 21:30:00
Location:    40.0023208 -79.6041002
Tags:    NRC, release
<http://www.nrc.uscg.mil/reports/rwservlet?standard_web+inc_seq=1067369>

-------------------------
Source: Reuters Commodities: Energy
<http://www.reuters.com/finance/commodities/energy>

-------------------------
Notes:

Kurutz Unit 10H is one of the most notorious sites in Fayette County, with numerous violations. The most recent was Inspection ID  2048173, Violation ID 633423, 02/01/2012: "Impoundment not structurally sound, impermeable, 3rd party protected, greater than 20" of seasonal high ground water table." See: <http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleSite.aspx?SiteID=741359> for links to the other violations.

Environmental Justice Areas are determined by census tract. Not all census tracts in Dunbar Twp qualify as Environmental Justice Areas, but Kurutz Unit 10H is in one of the ones that does. (Cross-hatching on the maps indicates Environmental Justice Areas.)

The location for BAILY UNIT 14H was approximated as the center of the property map for parcel 19-24-0004, verified against the DEP location for the well BAILY 5 OG WELL. DEP is no longer publishing latitude / longitude for well permits that have not yet been issued.

The Estimated Location shown for SR-4007 WATER INTAKE is inferred from the Fayette County Planning Commission agenda for September, 2013, at the approximate closest point between Rowes Run Road and Redstone Creek. (eFACTS does not give an eMapPA link.) Sara Rosiek, Director of Planning, Zoning, and Community Development for Fayette County, informs that this facility will require a Special Exception for Public / Private Works from the Fayette County Zoning Hearing Board.

------------------------

DEP defines an environmental justice area as "any census tract where 20 percent or more individuals live in poverty, and/or 30 percent or more of the population is minority". (See:
<http://www.portal.state.pa.us/portal/server.pt/community/pa_environmental_justice_areas/20991>
<http://www.portal.state.pa.us/portal/server.pt/community/dep_enhanced_public_participation_policy/20988>
). There are supposed to be enhanced public participation requirements for permits in environmental justice areas, but news of this actually ever happening is scarce. In Fayette County, the entirety of Springhill, Nicholson, German, and Georges Townships are environmental justice areas, as well as a large part of Dunbar Township. DEP's policy document on public participation guidelines for environmental justice areas is located here:
<http://www.elibrary.dep.state.pa.us/dsweb/Get/Version-48671/012-0501-002.pdf>

eNOTICE records are likely to list the same permit multiple times, as that permit moves through the DEP process.

Oil & Gas Wells designated with a site a number and the letter H typically designate horizontal wells.

The eMapPa web site does not work in web browsers other than Internet Explorer. For instructions on how to view eMapPa data in Firefox send me E-mail.

-------------------------

Resources:

Pennsylvania Bulletin: <http://www.pabulletin.com/>

eNOTICE: <http://www.ahs2.dep.state.pa.us/eNOTICEWeb/>

DEP Well Details Report: <https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/WellDetails/WellDetails.aspx>

DEP Permits Issued Detail Report:
<http://www.depreportingservices.state.pa.us/ReportServer/Pages/ReportViewer.aspx?/Oil_Gas/Permits_Issued_Detail>

DEP SPUD (drilling started) Report:
<http://www.depreportingservices.state.pa.us/ReportServer/Pages/ReportViewer.aspx?/Oil_Gas/Spud_External_Data>

DEP Oil and Gas Compliance Report:
<http://www.depreportingservices.state.pa.us/ReportServer/Pages/ReportViewer.aspx?/Oil_Gas/OG_Compliance>

EPA-Echo: <http://www.epa-echo.gov/echo/compliance_report_air.html>

FERC citizen involvement: <http://www.ferc.gov/for-citizens/get-involved.asp>

Follow the directions and enter the docket number to subscribe to.

Township  Supervisors receive information regarding Erosion & Sedimentation permits, and these records may be reviewable at township municipal offices.

DEP permits are reviewable through the File Review process, for application to do file review see: <http://www.portal.state.pa.us/portal/server.pt/community/southwest_regional_office/13775/file_review/593164>

Environmental Hearing Board: <http://ehb.courtapps.com/public/index.php>

PA DEP Public Participation Center Proposals Currently Open for Comment:
<http://www.portal.state.pa.us/portal/server.pt/community/proposals/14008>

Federal Register Environment: <https://www.federalregister.gov/environment>

SkyTruth Fayette County Drilling Alerts: <http://frack.skytruth.org/pennsylvania-frack-alerts/fayette_pa>

EPA Region 3 Water Protection Public Notices: <http://www.epa.gov/reg3wapd/public_notices.htm>

Energy Assurance Daily: <http://www.oe.netl.doe.gov/ead.aspx>

-------------------------
Disclaimers:

This compilation from the above sources was done by hand using copy and paste and may omit relevant permits.

Does not currently include water supply permits. Does not include landfill permits even though many such are for Marcellus Shale waste. (It is not possible at this time to distinguish which landfill permits are for Marcellus Shale waste and which are not without doing File Review for each permit.)

Erosion & Sedimentation permit records do not currently include latitude and longitude. Where I am publishing latitude and longitude with E&S permits it is by inferring an associated well permit and using published latitude and longitude for the well. It is possible I may be inferring the wrong well site.

Municipalities are shown from eFACTS records on the DEP web site. The DEP has been known to list a municipality incorrectly.