Showing posts with label Pennsylvania DCNR. Show all posts
Showing posts with label Pennsylvania DCNR. Show all posts

Friday, February 26, 2016

Royalties affecting Conservation

On February 24, 2016, the Department of Conservation and Natural Resources (DCNR) Secretary Cindy Dunn testified during budget hearings.  She said that there are currently no natural gas rigs operating in state forests.  There is a moratorium from Governor Tom Wolf that prohibits Pennsylvania from entering into any new state forest leases, but Ms. Dunn testified that she doubts the industry would have any interest in the leasing the land at this time anyway.  DCNR has leased mineral rights for state-owned waterways.  The rationale for leasing beneath waterways is that riverbed leases lessen land disturbance, according to Ms. Dunn.

Ms. Dunn also testified regarding Governor Wolf’s proposed shift in DCNR funding from the Oil and Gas lease fund to a structure of more allocation from the state’s general budget.  Ms. Dunn testified that the shift in funding will reduce the reliance on the constantly fluctuating natural gas market. 


Governor Wolf’s budget proposal includes spending an additional $61.3 million from the state’s general budget fund on the DCNR to offset the $51 million reduction the agency is facing from the decrease in oil and gas royalties.  Royalty revenues were down in the first six months of the current fiscal year from $68.3 million to $36.7 million.  The budget proposal calls for an increase in landfill tipping fees for municipal waste to replenish the Oil and Gas lease fund.  The landfill fee increase is projected to raise $35 million.  It is anticipated that the fund will bounce back when the price of natural gas rises.  

Written by - Stephen Kenney
Research Assistant
Center for Agricultural and Shale Law

Friday, February 12, 2016

Environmental Groups Request Review of State Forest Resource Management Draft Plan by Pennsylvania DCNR

On January 29, 2016, a collection of environmental organizations, as members of the Save the Loyalsock coalition, wrote a letter to the Pennsylvania State Forester Daniel A. Devlin concerning the effects of shale gas development on state forest protection and preservation.

In 2015, Pennsylvania DCNR initiated a revision of the State Forest Resource Management Plan (SFRMP) and released a draft plan on September 24, 2015. In the letter, the environmental groups noted that “400,000 acres of state forest land is currently under lease for natural gas extraction” and explained that the draft plan “falls short of laying out a comprehensive plan for how all [shale gas] impacts will be avoided, minimized, or mitigated in a matter that will prevent the natural, scenic, historic, and esthetic values of Pennsylvania’s state forests from being diminished.”

Thus, the letter recommends that Pennsylvania DCNR should implement restrictions on access to state forest lands for drilling operations suggesting that oil and gas reservoirs could be reached from outside lands using advanced extraction technologies. In addition, the letter requests that Pennsylvania DCNR review its key role to protect Pennsylvania’s natural resources. 

More information on the 2015 SFRMP revision process is available here.

Written by Chloe Marie - Research Fellow
02/12/2016