Last October (2013), the Marcellus Shale Coalition contacted the Pittsburgh Post-Gazette after learning about the paper’s ongoing “research project” related to shale development in the Commonwealth. Following a series of calls, emails and other correspondences, it became clear that this “project” had been underway for several years, and its primary focus was to explore how fines were levied, how spills are reported and steps the industry takes to encourage “drillers to be more environmentally safe in their practices.”

Over the coming weeks and months, the MSC — along with a host of our members companies — answered the paper’s questions exhaustively and provided detailed information. This weekend, the Post-Gazette published its first story [more may be in store] on this subject.

Before we take a look at the narrative advanced by this story, it’s important to note two critical points and understand the state regulations relevant to spill reporting:

  • Of the 137 spill events noted in this story, we are not aware of any event that has resulted in any long-term environmental impact. While the industry’s goal is zero spills and 100 percent compliance of Pennsylvania’s rigorous and world-class regulations, our member companies work with state enforcement officials to contain and remediate (if needed) all spills, as rare as they are.
  • While technical, it’s important to note that a “spill” and a “release” are two separate (and different) events. A “spill” is contained to the well pad containment system. A “release” of fluids off the well pad that has the potential to impact surface or ground water must be reported to Pa. DEP as soon as it is identified. However, the fact that inspectors first identified a third of the spills reported in this story demonstrates that Pa. DEP is actively and aggressively performing its oversight duties. What’s more, Pa. DEP inspection staff has been dramatically increased over the past five years [more on that below]. Not surprisingly, the Post-Gazette did not inform its readers of this important fact.

Over the past several years, regulations have been modernized and policies put in place to further protect our environment, including the formulation of the Oil and Gas Spill Policy in September 2013. This policy, along with Act 13, provide greater overall clarity for operators as it relates to reporting expectations/thresholds and strengthens containment procedures.

Importantly, Pennsylvania’s spill reporting guidelines are some of the most stringent of any energy-producing state, requiring that operators report any spill of 5 gallons or more within a 24-hour period, to maintain a “master containment plan” for each Pa. DEP reporting region and have a site-specific containment plan for each well pad. This site-specific plan is akin to a bathtub – a containment system that is designed to encase the well pad and catch any fluids that may spill during the drilling and/or completions (hydraulic fracturing) process.

Additionally, well site construction standards are designed to protect the environment in the rare event of a spill. For example, when a well site is constructed, industrial and high-resistant plastic liners are placed beneath the pad’s surface to ensure that in the event of a of spill, all fluids are contained on the pad and 1) do not communicate with the groundwater below the pad, and 2) do not spill over the pad itself. This is called “secondary containment.” Pennsylvania regulations also require operators to place secondary containment around equipment that store or hold hydrocarbons, providing yet another barrier in the event fluids are released.

To be absolutely clear: while the industry’s goal is zero spills, if a spill does occur on the well pad, there are safeguards in place to manage and contain fluids.

While the Post-Gazette attempts to advance a narrative that shale development is “self-regulated” and seemingly casts the 137 spill events over a six-year period as the norm (rather than the exception), the facts suggest otherwise.

  • Overview of regulation and inspections. The principle law governing oil and gas development in Pennsylvania is the Oil and Gas Act, which has been updated on a number of occasions over the past few years, both legislatively and through the adoption of new regulations. This includes a number of updates to Chapter 78 of the Pennsylvania code and Act 13 of 2012, a bipartisan law that increased setback requirements, increased pre-drill water testing guidelines from 1,000 ft. to 2,500 ft. and strengthened well site construction and containment requirements. Shale operators are also required to adhere to other laws and their implementing regulations, such as the Pa. Clean Streams Law, the Pa. Air Pollution Control Act and the Emergency Planning and Community Right to Know Act. Pennsylvania’s spill reporting requirements are extremely stringent. In fact, many of the spill events identified in this report would not be reportable in most other energy producing states.

Shale producers must also adhere to laws, regulations and policies administered by the U.S. Army Corps of Engineers, U.S. Environmental Protection Agency, County Conservation Districts, U.S. Fish and Wildlife Service, Pa. Department of Conservation and Natural Resources, Pa. Fish and Boat Commission, Pa. Game Commission, Pa. Department of Transportation, the Occupational Health and Safety Administration, Susquehanna River Basin Commission, Pa. Historic Museum Commissions and the Pa. Public Utility Commissions, to name a few. For a complete list of regulations and permitting requirements related to shale development, click HERE.

Additionally, state environmental regulators perform thousands of well site inspections each year to ensure that operators are developing each well in accordance with the regulations.

  • Thus far in 2014 (Jan. 1-July 25), Pa. DEP performed 6,243 inspections at 3,334 facilities.
  • In 2013, 12,391 inspections at 5,559 facilities.
  • In 2012, 12,701 inspections at 4,861 facilities.
  • In 2011, 10,561 inspections at 3,938 facilities.
  • In 2010, 4,990 inspections at 1,944 facilities.
  • In 2009, 2,094 inspections at 874 facilities.

In 2010, Pa. DEP – with the support of the natural gas industry – increased well permit fees from $100 per well to a sliding scale based on the total depth and length of the well (average permit application fees are $3,000). This increase in permitting fees allowed the agency to nearly double the number of regulators to more than 200. Earlier this year, Pa. DEP proposed – and the industry again supported – another well permit fee increase to $5,000 per well, which will generate an additional $4.7 million and allow the agency to hire 25 new inspection employees in its oil and gas division. Pennsylvania’s well permit fees are the highest among energy-producing states.

The goal of the natural gas industry is, as noted in the story and above, zero spills. However, should a spill occur, proper spill response and remediation efforts, as required by the regulations noted above, must be followed. The 137 spill events identified by the Post-Gazette between 2006 and 2012 vary in magnitude, ranging from a few gallons to larger amounts. Importantly, each spill was, or is, in the process of being remediated to the satisfaction of state environmental regulators. In most cases, spill events are contained to the well pad and releases offsite do not typically occur.

Recognizing that newspapers have limited space to report all relevant context on a given subject, it’s important for the public to understand what mechanisms are in place to contain and respond to spills and fluid release events. For additional information and facts about Pennsylvania’s rigorous containment regulations enacted over two years ago, click HERE.