Saturday, July 22, 2023

Governor’s Regulatory Agenda: DEP To Propose Annual Permit Fee For Unconventional Shale Gas Operations; Updated Waste, Other Regulations Covering Conventional Oil & Gas Drilling Coming

On July 22, the Governor’s Office
published an update to the Regulatory Agenda of regulations in development that included a new annual permit fee for unconventional shale gas operations and a schedule for the release of updated waste and other environmental standards for conventional oil and gas drilling.  (formal notice)

The Agenda includes an estimated schedule of consideration for each regulation for public comment and the final versions to provide the public and interested stakeholders early notice of the proposals.

On the list of regulations in development for DEP are--

-- Annual Fee For Unconventional Shale Gas Operations to provide a stable source of funding for the Oil & Gas Program - Proposed in 4th quarter 2023;

[Note: DEP told the Senate Appropriations Committee in March it is projecting a $1,581,000 deficit in funding for the Oil and Gas Regulation Program due to the slowdown in unconventional shale gas drilling.  Read more here.

[In August of 2020 when the last permit fee increase was put in place, DEP estimated it would need the revenue from 2,000 unconventional shale gas permits a year to adequately support the regulatory program for both conventional and unconventional oil and gas drilling.

[In calendar year 2022, DEP received 731 unconventional shale gas permits.  So far in the first 10 weeks of 2023 through July 13, DEP received 418 unconventional shale gas drilling applications, and if that pace continues, will receive revenue from just over 800 permit applications in 2023.

[In February 2022, DEP reported to the Environmental Quality Board an estimated 60 percent of the costs of the Oil and Gas Program are accounted for by activities related to unconventional oil and gas wells-- about $15,988,224 and 40 percent by conventional oil and gas wells-- about $10,658,816.  Read more here.

[DEP also reported to the Board conventional oil and gas drilling companies only paid $46,100 of the $10,658,816 it cost for DEP to regulate that industry in FY 2020-21.  Read more here.]

-- Updated Environmental Protection Standards for conventional oil and gas operations - Proposed in 4th quarter 2023;

-- Updated Waste Management and Related issues for conventional oil and gas operations - Proposed 1st Quarter 2024;

-- Notification Requirements for Unauthorized Discharges to Waters of the Commonwealth - Proposed 1st quarter 2024;

-- List of Class A Stream Redesignations based on Fish & Boat Commission data - Proposed 4th quarter 2023; and

-- Delisting of Waste as Hazardous Waste at the MAX Environmental Technologies facilities in Bulger and Yukon - Final in 3rd quarter 2023.

Among the list of regulations for DCNR are--

-- Updated list of PA Native Wild Plants - Summer 2023 as Final

-- Prescribed Burning Practices - Fall 2024

Click Here to view the entire Governor’s Regulatory Agenda.

The Department of Environmental Protection has its own Regulatory Agenda for regulations in development and its own Non-Regulatory Agenda for technical guidance in development.  Read more here.

Related Articles This Week:

-- Marcellus Drilling News/The Allegheny Front: University Of Pittsburgh Study Finds At Least 800,000 Tons Of Oil & Gas Waste Sent To Landfills Unaccounted For In One Year; Oil & Gas Waste Adds To Radiation Accumulation In Stream Sediments  [PaEN]

-- Susquehanna River Basin Commission Aug. 10 Hearing On Proposed Water Withdrawals, Including 8 Related To Shale Gas Drilling Operations, 1 In Exceptional Value Loyalsock Creek  [PaEN]

-- PJM Interconnection Reports Higher Percentage Of Natural Gas-Fired Electric Generation Outages Than Originally Thought During Winter Storm Elliott - 70%  [PaEN]

-- PennVEST Invests $116.9 Million In 22 Drinking Water, Wastewater, Nonpoint Source Projects; And An Oil & Gas Wastewater Treatment Facility  [PaEN]

-- Steering Committee Releases Protocol To Allocate $5 Million Penalty Fund Related To The Shell Petrochemical Plant In Beaver County  [PaEN]

[Posted: July 22, 2023]  PA Environment Digest

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