Without a doubt, the natural gas boom in Pennsylvania has significantly benefitted the Commonwealth’s economy. Since Marcellus Shale drilling began in 2008, natural gas development has single-handedly created over 100,000 jobs, provided five-figure windfalls for residents who lease their land, generated an average annual employee salary between $63,904-$81,116 (as compared to the national average annual salary of $45, 230), and arguably revived Pennsylvania – a state that had previously struggled with budget deficits – by contributing hundreds of millions of dollars in revenue to the Commonwealth. On a larger scale, the natural gas boom even has the potential to significantly reduce the United States’ dependency on imported fossil fuel. Moreover, the Utica Shale has the potential to amplify the natural gas boom in all aspects. However, critics of natural gas development have argued that natural gas exploration and development has caused water pollution, groundwater pollution, air pollution, and land pollution, leading to health and environmental concerns. Critics point to drilling-related incidents and over 100 contamination cases that have been reported in Pennsylvania to support their opposition to natural gas development. By relying on these incidents and reports, critics believe that the hazardous and harmful chemicals involved throughout the drilling and extracting of natural gas, including related activities such as the well construction and transportation of natural gas and wastes, cause more harm than good to Pennsylvania and its citizens. (Image courtesy of Geology.com)
In response to these concerns, Pennsylvania has taken steps to ensure the reduction of incidents and pollution since the boom began in 2008. First, on February 14, 2012, the Oil and Gas Act of 1985 was recodified under Act 13. Under the Act, with the exception for trade secrets and proprietary information, well-operators must complete a chemical disclosure registry form within 60 days following the conclusion of hydraulic fracturing with information obtained from the service providers who perform any part of a hydraulic fracturing treatment and the vendors who provide hydraulic fracturing additives for a hydraulic fracturing treatment. Hydraulic fracturing involves pumping large volumes of water and other fluids into a well with immense pressure in order to release natural gas to the surface from a rock formation that has a very low permeability, which makes it extremely difficult to extract the shale without the use of horizontal drilling and hydraulic fracturing. Act 13 also lengthened an operator’s presumed liability for impaired water near a gas well. , Act 9 was enacted in response to the Marcellus Shale natural gas boom in February 2012. Act 9 requires operators of unconventional wells, those wells that require breakthrough recovery solutions such as horizontal well bores stimulated by hydraulic fracturing, to take certain precautions prior to drilling to improve the safety of the natural gas drilling process.
In addition to Act 13 and Act 9, Pennsylvania lawmakers are attempting to take a third step to further assure critics that natural gas development and extraction can be safe. Earlier this year, Pennsylvania Senator Joseph B. Scarnati, III (R-Jefferson County), proposed Senate Bill 555, an Act that, if enacted, would establish a Health Advisory Panel on Shale Gas Extraction and Natural Gas Use. The Advisory Panel, which would be uncompensated for their services but reimbursed for their incurred expenses, would consist of the Secretary of Health, who will chair the Panel, the Secretary of Environmental Protection, four members appointed by the General Assembly, and three members appointed by the Governor. Among many of its duties, the Advisory Panel would be responsible for holding meetings biannually, consulting with experts involved in the extraction and/or use of natural gas reserves, and consulting with the Department of Health and other experts when reviewing public health data relating to areas where shale gas extraction occurs and to the benefits of using natural gas. Moreover, the Advisory Panel would evaluate this data and information regarding the techniques and procedures used in natural gas extraction. The information gathered from the Advisory Panel’s investigation and study of extraction methods, drilling technologies, and public health data would enable the Advisory Panel to provide analyses and recommendations for the safe, efficient, and environmentally responsible extraction and use of unconventionally extracted natural gas in Pennsylvania. This information would also be made available to the public.
The Bill appears to have bipartisan support as well as support from Governor Tom Corbett’s Administration. Patrick Henderson, the Governor’s energy executive, wrote that “the administration looks forward to working with Scarnati on the legislation, and shares ‘his interest in ensuring that drilling activities are conducted in a manner that protects public health.’” Shortly after this statement was made, the Senate Public Health and Welfare Committee unanimously approved the Bill. Yet despite the Committee’s unanimous approval and Mr. Henderson’s comment, the Bill has been tabled since July 3, 2013.