PA SENATE COMMITTEES EXAMINE THE QUESTION OF SAFE TRANSPORTATION OF ENERGY PRODUCTS IN THE STATE

On June 9, 2015, during a joint hearing in Harrisburg, the Pennsylvania Senate Transportation Committee and Senate Environmental Resources & Energy Committee engaged with various representatives of the energy and rail industries, Governor’s office, Public Utility Commission, American Petroleum Institute, and emergency responders to discuss and debate the best ways to address “[s]afe transportation of crude oil (and other energy products) by rail in Pennsylvania.”

In a report published in 2014, the U.S. EIA observed that, due to increasing crude oil production in the Bakken shale oil field of North Dakota, the number of unit trains shipments from North Dakota to Eastern refineries, such as Philadelphia Energy Solutions’ plant in South Philadelphia, massively increased.

As Mr. Philip Rinaldi, Chief Executive Officer of Philadelphia Energy Solutions, testified, “we are the single largest consumer of Bakken crude consuming upwards of 20% of the total production of North Dakota” which brings challenges in terms of potential significant public and environmental impacts in case of rail incidents.

The general outcome of the hearing pointed out the importance of a comprehensive approach to prevent train derailments by conforming to new federal safety rules and providing first emergency responders the proper means of intervention through training programs.

Further information is available at http://www.senatorgeneyaw.com/2015/06/08/safe-transportation-of-crude-oil-and-other-energy-products-by-rail-in-pennsylvania/.

Written by Chloe Marie - Research Fellow

06/12/2015

PENNSYLVANIA CONSIDERS ENACTING A SEVERANCE TAX

On February 11, 2015, Pennsylvania Governor Tom Wolf proposed to implement a severance tax on natural gas extraction as part of his legislative proposals for an Education Reinvestment Act. The proposals enact a 5% severance tax on the value of the gas and natural liquids, plus 4.7 cents per thousand cubic feet of gas extracted – modelled after the severance tax in West Virginia.

As the Joint Hearing of the Senate Environmental Resources & Energy Committee and Senate Finance Committee on the proposed severance tax on natural gas was taking place on June 1^st, 2015 in Harrisburg, various representatives and political figures debated and discussed the relevance of such tax proposition.

In her testimony, Acting Secretary for the Pennsylvania Department of Revenue, Eileen McNulty stated that “the tax will only apply to gas severed from unconventional formations using the technology generally known as hydraulic fracturing, or fracking”. She also mentioned that “since Pennsylvania exports a significant amount of the natural gas it produces, an estimated 80 percent of the tax will ultimately be paid by non-Pennsylvanians, according to the Independent Fiscal Office”.

Written by Chloe Marie - Research Fellow

06/02/2015

Senate Subcommittee Holds Hearing on Fugitive Methane

On November 5, 2013, the Senate Environment and Public Works Committee's Subcommittee on Oversight held a hearing to discuss fugitive methane, with testimony coming from the EPA, oil and gas producers, and academics/researchers.  Fugitive methane is methane that is not capturing during oil and gas production and that escapes into the atmosphere.  The hearing discussed the recent Methane Emissions study by Dr. David Allen of the University of Texas and Dr. A. Daniel Hill of Texas A&M, which found that natural gas production releases significantly less methane than the 2011 EPA estimates and that pneumatic devices at wellsites account for more methane releases than estimated by the EPA in 2011.  The subcommittee discussed the economics of natural gas, the possibility of LNG exports, and the financial incentive that energy companies have in capturing methane. The subcommittee further discussed environmental concerns, such as the global warming ramifications of methane, which is 28 times stronger than carbon dioxide as a greenhouse gas.  Several of the panelists discussed how to better capture or prevent fugitive methane, such as with better methane capture devices or with flaring, which burns methane, turning it into carbon dioxide.

A video of the subcommittee hearing is available here: http://www.epw.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_id=0ad995f7-0b75-a66e-155c-bc7397b70d86

The methane emissions study by the University of Texas is available here: http://www.pnas.org/content/early/2013/09/10/1304880110.full.pdf+html

Written by: Tom Panighetti

November 6, 2013

BLM Extends the Comment Period on Disclosure of Hydraulic Fracturing 60 Days.

On June 22, 2012, the Bureau of Land Management (BLM) extended the comment period on disclosure of hydraulic fracturing by 60 days, from July 10, 2012 to September 10, 2012.

On May 11^th, the BLM proposed rules requiring companies to disclose fracking chemicals, guidelines for well casing, and handling of wastewater flowing back to the surface of well drilling operations on federal lands. According to the BLM these rules will ensure that oil and gas operations will follow a common sense industry standard.   

The BLM decided to extend the comment period to allow greater public participation in order to allow a more thorough analysis of the proposed changes. As of the decision to extend the comment period, the BLM had received 170 public comments.

Analysts say that the proposed rules are likely to add up to an additional 49-day delay in the permit application process. However they will also require drilling companies to increase groundwater protection measures, disclose more about chemicals used when fracking, and conduct additional tests before drilling and extracting gas.

Written by Joseph Negaard, Research Assistant
June 25, 2012  

Comments may be submitted here.

EPA Draft Guidance: Hydraulic Fracturing Using Diesel Fuels

The Environmental Protection Agency (EPA) is conducting a study examining fracking fluids that include diesel fuel in order to understand the impact of fracking on ground water. The research will examine every step of the fracking process from the mixing of chemicals to its treatment and disposal. The draft guidance was released on May 4, 2012 and the final draft report should be released sometime in 2014.

Written by Joseph Negaard, Research Assistant
May 7, 2012

Click here to read the EPA’s Draft Guidance

The Draft Guidance is open for comment until August 23

Click here to comment

PA PUC Announces Public Hearings for Pentex and Peregrine Pipelines

On September 19, 2011, the Pennsylvania Public Utility Commission announced that it had scheduled public hearings regarding the pending applications of Pentex Pipeline Company and Peregrine Keystone Gas Pipeline to become public utilities under the Public Utility Code. Two hearings will be held for each company with the Pentex hearings taking place on October 7, 2011 and the Peregrine hearings taking place on October 26, 2011.

Pentex's application for a certificate of public convenience was filed in March 2011 and offered gathering and transporting services through a proposed pipeline in the Townships of Wyalusing, Herrick, Terry, Tuscarora, Stevens and Wilmot in Bradford County, PA. Peregrine's application was filed in September 2010 and offered pipeline services to all municipalities located in Pennsylvania's Greene, Fayette and Washington counties.

Click here to read the PUC press release for the Pentex hearings

Click here to read the PUC press release for the Peregrine hearings

Written by Andy Schwabenbauer, Research Fellow
September 20, 2011

EPA Announces Public Hearings on Fracking Emission Standards

On August 25, 2011 the Environmental Protection Agency announced it will hold three public hearings regarding its proposed emission standards. The new regulations are aimed at reducing toxic air pollution cause by the hydraulic fracturing of unconventional oil and gas wells. The rules utilize existing technologies to reduce the air pollution caused by well drilling, leaking pipes, storage tanks and compressor stations. The first hearing is scheduled for September 27, 2011, at the David Lawrence Convention Center in Pittsburgh, PA followed by hearings in Denver, CO on September 28, and Arlington, TX on September 29.

Click here to read the hearings announcement

Click here to read the proposed rules

Written by Andy Schwabenbauer, Research Fellow
September 19, 2011