PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules
Perhaps we now know why PA’s Acting Secretary of the Dept. of Environmental Protection, John Quigley, fired the entire DEP Oil & Gas Technical Advisory Board once he took office, something no other incoming governor/administration has done in more than a generation (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Why? To pack the board with new members who will agree to onerous changes to the 1984 PA Oil and Gas Act. Changes to the Act were required under the 2012 Act 13 law (see Rewrite of 1984 PA Oil and Gas Act Underway). A very long and detailed process took place over the past three years and that process was very nearly complete–frankly was complete, until Tom Wolf was elected governor. Wolf’s election put the final adoption of new rules on hold. In came the PennFuture administration (Quigley along with Cindy Dunn as head of the Dept. of Conservation and Natural Resources and John Hanger as Wolf’s head of policy are all alumni of the anti-drilling PennFuture). The PennFuture brigade has screwed around with the rules, adding their own anti-drilling changes, and they now want the Technical Advisory Board to rubber stamp it. Needless to say, the Marcellus industry isn’t taking it well…
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In February, West Virginia passed a new law “fixing” an old law. The old law, which was itself a new law just a few years ago, stipulated if oil and gas leases/operations change hands, the new owner must apply for permits to drill all over again, even if the previous owner had already been awarded those permits. This was a really big problem for Southwestern Energy that had just purchased $5 billion worth of leases and operations from Chesapeake Energy, most of it in WV. So the WV legislature passed, in record time, a law to fix the problem–and Gov. Earl Ray Tomblin signed it (see 
Yesterday some 120 new rules that govern oil and gas drilling in North Carolina–including a rule that lifts the moratorium on fracking shale deposits–went into effect. In just a couple of years NC was able to do what so far New York hasn’t been able to do in nearly seven years–it became the 34th state to allow shale drilling. While all shale layers are now open for business, the initial flurry of interest seems to be centered in the center of the state in Lee, Moore and Chatham counties. Popularly its called the Triassic Basin, although technically it’s part of a broader area called the Deep River Basin. Within the Triassic is a sub-basin called the Sanford, and it’s there that two companies are already “aggressively” leasing in the area…