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    PA Environment DigestAn Update On Environmental Issues In PAEdited By: David E. Hess, Crisci Associates

    Winner 2009 PAEE Business Partner Of The Year Award

    Harrisburg, Pa August 12, 2013

    Future Of New Drilling Regs In Doubt, Oil & Gas Advisory Board Meets Aug. 14-15

    On August 14-15 the Oil and Gas Technical Advisory Board Workgroups will meet in State College

    and the first item on the agenda will be a discussion of the future of proposed Chapter 78 regulations

    DEP drafted to implement the enhanced environmental protection measures included in Act 13

    Marcellus Shale drilling law passed 18 months ago.In April, the Advisory Board voted to urge DEP to move the proposed regulations to the

    Environmental Quality Board and on to public comment. However, in a surprise July 18 letter, the

    drilling industry-dominated Board suddenly said the regulations were deficient and not ready to go to the

    Board for public review.

    DEP announced plans to take the proposed Chapter 78 regulations to the Environmental

    Quality Board at its August 27 meeting, however, no formal agenda for the meeting has been posted on

    DEPs website as of August 9.

    The Technical Advisory Board said the regulations were not ready for public review for five

    reasons--

    -- It does not meet the requirements ofExecutive Order 1996-1 or the Departments Policy forDevelopment, Approval and Distribution of Regulations because the agency did not review the

    regulations to determine if the cost of the regulation outweigh the benefits, if non-regulatory alternatives

    were explored and preferred over regulation, if the regulations address a compelling public interest

    and definable public health, safety or environmental risks, and if the regulation will hamper

    Pennsylvanias ability to compete effectively with other states.

    -- Significant portions of the rule were removed from discussion at TABs April 2013 meeting because

    they require further development in technical workgroups, a process that has just begun. The subjects

    removed include: public resource protection, pre-hydraulic fracturing assessment (orphaned and

    abandoned wells), waste management at well sites and water supply restoration standards.

    -- Certain provisions of the proposed rule exceed statutory authority, including provisions related topublic resources, site restoration, pipelines and horizontal direction drilling and tanks and containers.

    -- The Department has not critically analyzed or accommodated the anticipated impacts of the

    proposed rule on small businesses, which is required by the Regulatory Review Act and the Act 76 of

    2012.

    -- The rule fails to proposed criteria, which the Environmental Quality Board is specifically directed to

    do by Act 13, for the Department to use to impose permit conditions to mitigate probably harmful

    impacts to public resources while ensuring optimal development of oil and gas resources and respecting

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    the property rights of oil and gas owners.

    To allow for full and robust public comment period, all of these concerns should be addressed

    before the proposed rule is published for comment.

    (The) Environmental Quality Board should remand the proposed rule to the Department and

    delay publishing any rule until the regulatory package is more fully developed and suitable for public

    comment.Indeed, the rules failure to propose any criteria with respect to public resource permit

    conditions renders the package incomplete and requires its return to the Department.

    The members of the Advisory Board signing the letter included: Gary Slagel (CONSOL

    Energy) Robert Watson, PhD (Penn State University) Samuel Fragale (Chief Oil & Gas) Burt Waite

    (Moody & Associates) and Arthur Yingling (Ark Resources, Inc.).

    In early July, DEP announced the Advisory Board was convening subcommittees to discuss

    four major issues to be included in Chapter 78: public resource protection, pre-hydraulic fracturing

    assessment, waste management at well sites and water supply restoration standards.

    In addition to Advisory Board members, DEP invited groups like the PA Environmental

    Council, the Western PA Conservancy and the PA Chapter of The Nature Conservancy to participate.Three rounds of public subcommittee meetings were announced in July, August and September

    to conduct their work.

    Given the Technical Advisory Boards July 18 letter, the future of the regulatory process

    involving Chapter 78 is now in flux.

    The August 14-15 Advisory Board meeting will be held in State College at the Nittany Room,

    Ramada Inn where this issue is expected to be raised by the environmental groups. The August 14

    meeting is from 10 a.m. to 4:30 p.m. and on August 15 from 8:30 a.m. to 3 p.m.

    NewsClips:

    State Petitions Court To Rehear Act 13 Drilling Law ChallengeState Supreme Court Asked To Rehear Drilling Dispute

    PA Court Asked to Re-Examine Act 13 Drilling Ruling

    DEP: Drillers Must Submit Air Quality Plans

    Marcellus Shale Drillers Face New Air Pollution Rules

    Clean Air Group Skeptical About Drilling Air Quality Rule

    DEP Shuts Down Drilling Wastewater Facility

    Drilling Fees Earmarked For Bridge Repairs In NE

    Editorial: Problems With Natural Gas Pooling

    Range Resources Wines, Dines State Officials

    EPA Decision On Dimock Raises Questions

    Editorial: EPA Should Resolve Issues In Dimock

    DEP Finalizes Air Quality Permit Criteria For Marcellus Gas Well Sites

    The Department of Environmental Protection Thursday announced operators of unconventional gas

    wells will no longer be unconditionally exempt from seeking an air quality plan approval for well sites.

    Plan approval authorizes the construction and temporary operation of air emissions sources. (formal

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    notice)

    Revised technical guidance released by DEP explains the agency may grant such operators a

    permitting exemption, provided that they implement controls and practices more stringent than federal

    rules.

    Gov. Corbetts continued leadership on energy and environmental issues has put Pennsylvania

    in a unique position - air quality has improved over the past few years at the same time the statesenergy portfolio continues to expand the development and use of natural gas, DEP Acting Secretary

    Chris Abruzzo said.

    We fully expect both of those trends to continue, and this strategy builds on existing federal

    requirements by continuing to set the high, but fair, bar we have come to expect, Abruzzo added.

    In April 2012, the U.S. Environmental Protection Agency announced, for the first time, national

    air quality rules for oil and gas sites.

    Earlier this year, Pennsylvanias DEP announced it was proposing to amend technical guidance

    detailing which emissions sources would not be required to obtain air quality plan approvals from the

    state. Oil and gas well sites in Pennsylvania had been granted blanket exemptions from obtaining

    approvals since 1996.The final revised guidance affords each operator the choice between seeking an air quality plan

    approval from DEP, or demonstrating and implementing controls and practices more stringent than the

    federal rules.

    The DEP guidance includes practices such as a leak detection and repair program for the entire

    well pad and facility, rather than just the storage vessels as required by federal rules. Any leaks must be

    repaired within 15 days unless the operator shuts the site down or is in the process of acquiring

    replacement parts.

    Emissions of volatile organic compounds and hazardous air pollutants must also be controlled

    beyond levels required by the federal rules. DEPs guidance also requires that emissions of nitrogen

    oxides be less than 100 pounds per hour, half a ton per day and 6.6 tons per year the federal rules donot address or limit such emissions.

    Finally, while both the federal rules and the states guidance allow for flaring (with the EPA

    requiring green completions at all wells by January 1, 2015), open flaring is only allowed by the state on

    a short-term or emergency basis.

    Flaring used as emission control on storage vessels must be enclosed, resulting in reductions of

    volatile organic compounds and hazardous air pollutants. Such enclosed flares have been demonstrated

    to achieve up to 99.9 percent elimination of such pollutants.

    DEP accepted comments on the proposed revision to its Air Quality Permit Exemption List

    from February through May 2011 and again from February 2 through March 19, 2013 for a second

    revised version. More than 650 people commented on the proposed criteria.

    The exemption criteria build on an existing and continually improving regulatory environment to

    ensure natural gas drilling happens responsibly. Earlier this year, DEP announced a revised general

    permit for compressor stations and gas processing facilities that included significantly lower allowable

    emission limits.

    DEP has also conducted three short-term ambient air quality sampling studies in various drilling

    regions of the state (the southwest, northeast and northcentral regions), detecting no levels of any

    pollutant that would violate federal ambient air quality standards. A one-year, long-term study is

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    underway in Washington County to further gather data regarding long-term exposure.

    A recent DEP emissions inventory submitted to EPA in December 2012, showed significant

    sulfur dioxide emissions reductions in Pennsylvania between 2008 and 2011. These reductions, which

    are due to the deactivation of certain sources, the installation of control technology on remaining sources

    and the switch to natural gas, have represented between $14 and $37 billion of annual public health

    benefit, based on EPA methodologies.The inventory, which for the first time included unconventional gas operations, also showed

    significant reductions in nitrogen oxide, carbon monoxide, volatile organic compounds and particulate

    matter during that same time period.

    The final technical guidance is posted on DEPs Air Quality webpage. For more information,

    call 717-787-4325.

    NewsClips:

    DEP: Drillers Must Submit Air Quality Plans

    Marcellus Shale Drillers Face New Air Pollution Rules

    Clean Air Group Skeptical About Drilling Air Quality RuleState Petitions Court To Rehear Act 13 Drilling Law Challenge

    State Supreme Court Asked To Rehear Drilling Dispute

    PA Court Asked to Re-Examine Act 13 Drilling Ruling

    DEP Shuts Down Drilling Wastewater Facility

    Drilling Fees Earmarked For Bridge Repairs In NE

    Editorial: Problems With Natural Gas Pooling

    Range Resources Wines, Dines State Officials

    EPA Decision On Dimock Raises Questions

    Editorial: EPA Should Resolve Issues In Dimock

    Did You Know You Can Search 9 Years Of Digests On Any Topic?

    Did you know you can search 9 years of back issues of the PA Environment Digest on dozens of

    topics, by county and on any keyword you choose. Just click on the search page.

    Also take advantage of these related services from Crisci Associates--

    PA Environment Digest Twitter Feed: On Twitter, sign up to receive instant updates from:

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    announcements on environmental topics in Pennsylvania of immediate value. Sign up and receive as

    they are posted updates through your favorite RSS reader. You can also sign up for a once daily email

    alerting you to new items posted on this blog.

    PA Environment Digest Video Blog: showcases original and published videos from environmental

    groups and agencies around the state. Sign up to receive as they are posted updates through your

    http://www.google.com/url?q=http%3A%2F%2Fpaenvirodigestvideo.blogspot.com%2F&sa=D&sntz=1&usg=AFQjCNEmKqFvZOkdb3_B7R1MBSPh3LLnzAhttp://www.google.com/url?q=http%3A%2F%2Fpaenvironmentdaily.blogspot.com%2F&sa=D&sntz=1&usg=AFQjCNFRzy2G1pqBkPajQhREHSFOtt9DyQhttp://www.google.com/url?q=http%3A%2F%2Fwww.twitter.com%2F&sa=D&sntz=1&usg=AFQjCNGXriPf7nAwCc24P4VynFe1LpqWFghttp://www.google.com/url?q=http%3A%2F%2Fwww.crisciassociates.com%2F&sa=D&sntz=1&usg=AFQjCNHXIVMkGh_c7n4BmGVntccrLXM7eghttp://www.google.com/url?q=http%3A%2F%2Fwww.paenvironmentdigest.com%2Fnewsletter%2Fsearch.asp&sa=D&sntz=1&usg=AFQjCNG3YMJhJTavF8eWahj5px0Dtv-fMQhttp://www.google.com/url?q=http%3A%2F%2Fthetimes-tribune.com%2Fopinion%2Fepa-should-resolve-issues-in-dimock-1.1531250&sa=D&sntz=1&usg=AFQjCNHhITKhzsoix9KKjZh1Zi6PJ0h5rghttp://www.google.com/url?q=http%3A%2F%2Fcitizensvoice.com%2Fnews%2Fepa-decision-on-dimoock-raises-questions-1.1531100&sa=D&sntz=1&usg=AFQjCNGSR8QKnMUzp0jkq8T9FX0oBvp0mghttp://www.google.com/url?q=http%3A%2F%2Fstateimpact.npr.org%2Fpennsylvania%2F2013%2F08%2F05%2Frange-resources-wines-and-dines-state-officials%2F&sa=D&sntz=1&usg=AFQjCNHNsBhIUyWal6c8xckPWgh9Vx9Tywhttp://www.google.com/url?q=http%3A%2F%2Ftriblive.com%2Fopinion%2Feditorials%2F4454386-74%2Flaw-eqt-landowners&sa=D&sntz=1&usg=AFQjCNHdlNuLIFzZK4XRh5eswVc9EFibRwhttp://www.google.com/url?q=http%3A%2F%2Fthetimes-tribune.com%2Fnews%2Fgas-fees-earmarked-for-bridge-repairs-1.1531795&sa=D&sntz=1&usg=AFQjCNH_AlaanWnR9f-IuobjyAftOQeNyAhttp://www.google.com/url?q=http%3A%2F%2Fpipeline.post-gazette.com%2Fnews%2Farchives%2F25279-pa-shuts-down-wastewater-facility&sa=D&sntz=1&usg=AFQjCNFDIx-B2e-2UbVeQNejPcDyl6YgEQhttp://www.google.com/url?q=http%3A%2F%2Fwww.observer-reporter.com%2Farticle%2F20130808%2FNEWS01%2F130809411%2F-1%2Fnews%23.UgS5XmTF0YU&sa=D&sntz=1&usg=AFQjCNEomWAalxfIHxkcY3K-MwJNWGsjMwhttp://www.google.com/url?q=http%3A%2F%2Ftriblive.com%2Fbusiness%2Fheadlines%2F4493785-74%2Fcourt-state-law&sa=D&sntz=1&usg=AFQjCNH4dfIoidqxlaW63Kwum8z7A2ux7whttp://www.google.com/url?q=http%3A%2F%2Fstateimpact.npr.org%2Fpennsylvania%2F2013%2F08%2F07%2Fpa-petitions-full-supreme-court-to-rehear-act-13-challenge%2F&sa=D&sntz=1&usg=AFQjCNFjBc2DGrLz4h8ykl0oRrce54cqTghttp://www.google.com/url?q=http%3A%2F%2Fstateimpact.npr.org%2Fpennsylvania%2F2013%2F08%2F09%2Fclean-air-group-skepitcal-about-new-dep-rules%2F&sa=D&sntz=1&usg=AFQjCNHotPnYHIZgp-voHyN0HzGbCJ1bxwhttp://www.google.com/url?q=http%3A%2F%2Fwww.post-gazette.com%2Fstories%2Fnews%2Fenvironment%2Fmarcellus-shale-drillers-face-new-rules-on-pollution-698694%2F&sa=D&sntz=1&usg=AFQjCNFq-8XVgd59uNTqs-apFeMW7ae5mwhttp://www.google.com/url?q=http%3A%2F%2Fstateimpact.npr.org%2Fpennsylvania%2F2013%2F08%2F08%2Fdep-nat-gas-operators-must-submit-air-quality-plans%2F&sa=D&sntz=1&usg=AFQjCNEebWiwhr6_a2UnDeGeIaijo5IItQhttp://www.google.com/url?q=http%3A%2F%2Fwww.portal.state.pa.us%2Fportal%2Fserver.pt%2Fcommunity%2Fair%2F6000&sa=D&sntz=1&usg=AFQjCNFO7spZ-rNW3JHY3IwccK4B9MetqAhttp://www.google.com/url?q=http%3A%2F%2Fwww.paenvironmentdigest.com%2Fnewsletter%2Fdefault.asp%3FNewsletterArticleID%3D24707&sa=D&sntz=1&usg=AFQjCNEa1waGN71rce5oXTYlTEm3lSguow
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    favorite RSS read. You can also sign up for a once daily email alerting you to new items posted on this

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    PA Capitol Digest Daily Blog to get updates every day on Pennsylvania State Government, including

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    Senate/House Agenda/Session Schedule

    Here are the Senate and House Calendars and Committee meetings showing bills of interest as well as a

    list of new environmental bills introduced--

    Session Schedule

    Here is the latest voting session schedule for the Senate and House--

    House

    September 23, 24, 25, 30

    October 1, 2, 15, 16, 17 (Non-Voting), 21, 22, 23

    November 12, 13, 18, 19, 20

    December 9, 10, 11, 16, 17, 18 (Non-Voting)

    Senate

    September 23, 24, 25, 30

    October 1, 2, 15, 16, 21, 22, 23

    November 12, 13, 18, 19, 20

    December 3, 4, 9, 10, 11

    Bill Calendars

    House (September 23): House Bill 302 (Moul-R-Adams) transferring funds from the Oil and Gas

    Lease Fund to DEP for a competitive grant program to convert small mass transit bus fleets to natural

    gas House Bill 303 (Moul-R-Adams) transferring funds from the Oil and Gas Lease Fund to DEP for a

    competitive grant program to convert large mass transit fleets to natural gas House Bill 304

    (Marshall-R-Beaver) funding conversions of transit buses to natural gas House Bill 306

    (Pickett-R-Bradford) redirecting the Alternative Fuels Incentive Fund to create the Keystone Fuel

    Incentive Program to fund conversions of vehicles to natural gas House Bill 308 (Saylor-R-York)

    redirecting $6 million annually from the Clean Air Fund to finance vehicle conversions to natural gas.