HEAVY IRON NEWS
The DEP Makes Rule Changes For PA Oil Wells
- By Design Team
- •
- 01 Sep, 2015
The DEP has been attempting to initiate new rule changes for Pennsylvania drillers which could have a negative impact on the oil and gas industry. These rule changes have been proposed previously but were rejected due to their vague language; should they be enacted, they could cost the oil and gas industry up to $79 million a year.
PROPOSED CHANGES BY THE DEP
The DEP has attempted to introduce numerous changes, specifically two major ones: a requirement for driller to restore an area to better than previous condition following groundwater contamination issues, and noise level restrictions, especially in potentially harmful areas such as school district zones.
Previously, these changes were requested but were denied because the restrictions were deemed to be unclear. The restrictions have been modified for clarity and reintroduced. Additionally, drillers will only be able to extend permits one or two years before having to put in a new application.
Groundwater waste infiltration and waste water management has been a growing concern in the oil and gas industry for sometime, though studies have shown that groundwater infiltration does not occur commonly and generally only occurs due to equipment and protocol failure. The process of oil and gas drilling itself is said to not have a significant risk on groundwater pollution. Noise pollution is a newer issue that some believe has not yet been studied sufficiently enough to draw any conclusions regarding its potential for harm.
ANALYSTS WORRY REGARDING OVER REGULATION
Professionals within the oil and gas industry are concerned that over regulation could injure an already struggling oil and gas industry within Pennsylvania. The oil and gas industry nationwide has been struggling following the sharp decline in oil prices, brought on in part by improved oil drilling processes and in part due to market manipulation a by foreign powers.
Increased regulations will increase the time that oil and gas operations take to complete in addition to costing each individual company more in overhead and the government more in oversight. These costs could potentially be extremely damaging to businesses with an already slimmed down profit margin.
A QUESTION OF OVER REGULATION
These new rules are being considered over regulation due in part to a failure to prove that the regulations involved resolve existing issues. It has not her been show that noise pollution or groundwater waste is of a significant enough issue that these new regulations are necessary or would be beneficial.
The advisory boards will meet regarding these proposed issues at the end of August and the beginning of September. It is then that it will be determined whether the rules will be enacted and it will be seen whether the regulations have a net positive benefit to the Pennsylvanian oil and gas industry.
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