Written
by Chloe Marie – Research Fellow
The Global Shale
Law Compendium series addresses legal developments and other issues related to
the governance of shale oil and gas activities in various countries and regions
of the world. In this article, we will focus on the legal, policy, and
governance issues related to shale gas development in the United States, and
more specifically in the state of Pennsylvania.
In prior articles, we reviewed statutes
applicable to unconventional oil and gas development that were enacted in
Pennsylvania during the time period from 2010 through 2012, and from 2013 to 2016, as well as fiscal legislation adopted from 2009 to
2017.
This article will address shale-related regulations that were promulgated from
2015 to 2018. In two preceding articles, we addressed regulations promulgated from 2008 to 2010, and from 2011 to 2014.
·
Regulatory
activity in 2015
On January 17, 2015, DEP amended the
General Plan Approval and/or Operating Permit (BAQ-GPA/GP-5 or General Permit)
for the construction, modification and/or operation of natural gas compression
and/or gas processing facilities. Major modifications include the removal of
the 100,000 ton per year greenhouse gas emissions applicability threshold for
the use of the GP-5 as well as the clarification of the GP-5 scope to all types
of natural gas-fired compressors. See PA Bulletin, Vol. 45, No. 3, January 17,
2015, pp. 370.
On April 4, 2015, DEP issued an advance
notice of final rulemaking proposing, in particular, the extension of the well
permit renewal from 1 year to 2 years and specifying that permits would expire
unless drilling is completed within 16 months of permit issuance. In addition, DEP
addressed the use of pits requirement to temporarily store waste at
unconventional well sites. DEP also sought public comments on those changes.
See PA Bulletin, Vol. 45, No. 14, April 4,
2015, pp. 1615 et seq.
·
Regulatory
activity in 2016
On January 2, 2016, DEP required anyone
involved in certain natural gas related activities in Pennsylvania to report
their air contaminant emission inventories for the calendar year 2015. Source
reports must be submitted to DEP no later than March 1, 2016. Thereafter, the
submission deadline is March 1 of every year. Furthermore, DEP specified that
natural gas related activities include, among others, unconventional natural
gas development, production, transmission, processing and related activities.
See PA Bulletin, Vol. 46, No. 1, January 2,
2016, pp. 67.
On October 8, 2016, the Environmental
Quality Board (EQB) issued a notice of final rulemaking amending Chapter 78
relating to oil and gas wells and adding Chapter 78a relating to unconventional
wells. EQB stated that “the goal of this final-form rulemaking is to set
performance standards for surface activities associated with the development of
unconventional wells and to prevent and minimize spills and releases to the
environment to ensure protection of the waters of the Commonwealth, public
health and safety, and the environment. New regulations in Chapter 78 mostly
concerned wastewater and waste management and disposal standards, well
monitoring for the ones located close to hydraulic fracturing activities, and
reporting and remediating spills and releases requirements. See PA Bulletin, Vol. 46, No. 41, October 8,
2016, pp. 6431 et seq.
·
Regulatory
activity in 2017
On February 4, 2017, DEP proposed a new
General Plan Approval and/or General Operating Permit for Unconventional
Natural Gas Well Site Operations and Remote Pigging Stations (BAQ-GPA/GP-5A or
GP-5A). In addition, DEP proposed to review the existing General Plan Approval
and/or General Operating Permit for natural gas compressor stations, processing
plants and transmission stations as well as the Air Quality Permit exemption
document.
The new GP-5A and GP-5 would have similar
requirements, but DEP added specific requirements for the GP-5A regarding well
drilling and hydraulic fracturing operations, well completion operations, and
wellbore liquids unloading operations. Concerning the Air Quality exemptions
document, DEP proposed to divide it into two new categories, namely Category
38a applicable only to conventional and unconventional natural gas well sites
constructed or modified between August 10, 2013 and the proposed amendment’s
effective date, and Category 38b applicable only to conventional natural gas
well sites constructed or modified after the proposed amendment’s effective
date. See PA Bulletin, Vol. 47, No. 5, February 4,
2017, pp. 733 et seq.
On October 21, 2017, EQB proposed to
amend Chapter 93 as part of the Federal required-triennial review of quality
standards in accordance with the Federal Clean Water Act. Among other things,
EQB proposed changes concerning toxic substances and human health and aquatic
life criteria for toxic substances. See PA Bulletin, Vol. 47, No. 42, October 21,
2017, pp. 6609 et seq.
On December 9, 2017, DEP announced that
it would extend for 12 months the availability of the existing Erosion and
Sediment Control General Permit (ESCGP-2) for earth disturbance associated with
oil and gas exploration, production, processing or treatment operations or
transmission facilities. See PA Bulletin, Vol. 47, No. 49, December 9,
2017, pp. 7533.
·
Regulatory
activity as of March 31, 2018
On February 24, 2018, the EQB proposed to
amend Chapter 245 relating to administration of the Storage Tank and Spill
Prevention Program and mandate underground storage tank (UST) owners and
operators to implement spill prevention, overfill prevention and release
detection equipment requirements, among other things. The EQB specifies,
however, that those owners and operators are not required to periodically
verify the equipment functionality. See PA Bulletin, Vol. 48, No. 8, February 24,
2018, pp. 1101 et seq.
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