PA DEP Finalizes Onerous New Drilling Regs, Industry Opposes
Major changes are on the way for Pennsylvania’s conventional (vertical) and unconventional (shale/horizontal) drillers. In 2011 PA began a process that’s gone on way too long, to update certain regulations that apply to oil and gas drillers known as Chapter 78 of the 1984 Oil and Gas Act. Along the way the PA legislature decided there should be separate rules governing conventional and unconventional drilling–so Chapter 78 has become Chapter 78 (conventional) and 78a (unconventional). PA was close to adopting the new rules at the end of the Tom Corbett administration but then he lost his bid for re-election, throwing the process into turmoil once again with newly elected Tom Wolf and his PennFuture buddies wanting to put their own stamp on drilling regulations in the Keystone State (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Yesterday the Dept. of Environmental Protection (DEP) released the final draft version for both Chapter 78 and 78a (copy below). Last week the group that will consider this new draft for conventional drilling, the Conventional Oil and Gas Advisory Committee (COGAC), preemptively said they would vote against adopting the draft (see PA DEP Sec Quigley’s Own Committee Appointees Turn Against Him). PennFuture DEP Sec. Quigley said, “COGAC’s opposition will not hinder the progress of the final rule, and I hope when they meet in August that they are prepared to engage with us as we finalize the rule.” In other words: “Screw you, I’ll do what I want to do anyway.” We predict fireworks at the COGAC meeting on August 27 in Harrisburg…
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On Friday Baker Hughes, which is being forced into a merger with Halliburton by the end of this year/early next year, issued a summary of rig counts last Friday. At first blush it appears to be good news, but when you dig under the surface, it’s not–at least for the Marcellus/Utica. The international rig count was 1,118, down 28 from the 1,146 counted in June 2015. However, the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015. It appears we’ve turned the corner on how low rig counts will go–we’ve bottomed and are either holding steady (in the U.S.), or perhaps every so slightly gaining ground again. But then we ran the numbers for the Marcellus/Utica and found rig counts continue to decline month over month…
Another anti-pipeline screed from PBS reporter Susan Phillips at the taxpayer-funded StateImpact Pennsylvania website. This is another propaganda piece in a series meant to smear the superb safety record of pipelines, which happen to be the safest form of transportation on earth (see