American Oil and Gas Reporter - January 2012 - 196

ConventionSection: Pennsylvania Independent Oil & Gas Association
D'Amico affirms. "I am able to delegate
to people who specialize in various areas.
PIOGA also has enjoyed good leadership
with committee chairs and volunteers
who have worked very hard to keep track
of what is happening, and keep me informed and up to speed."
He adds that Moody is based in Harrisburg, Pa., working in the same office
as the lobbying firm that serves PIOGA.
Meanwhile, he notes, transition stipulations
that have heretofore limited Roberts'
work have expired. "His one year limitation on involvement in DEP meetings is
over, so now he actually can attend, give
us more input and be more involved,"
D'Amico reports.
But even with all the new hands on
deck, D'Amico marvels at how demands
on PIOGA expand even faster than the
staff. "You would think I would have more
breathing room after hiring all these people,
but that has not happened," he admits.
"The issues and interest at the general assembly have grown so much that my time
in Harrisburg has grown tenfold."
Impact Fee
One of the industry's foremost concerns
in Harrisburg deals with the general assembly's efforts to pass a natural gas impact fee. D'Amico notes that different
versions have emerged from each chamber,
with the Senate passing SB 1100 and the
House approving HB 1950. He adds that
the Senate also has passed a version of
HB 1950 that contains the language in

SB 1100.
According to the association, both
would levy a local impact fee on unconventional wells, divide the revenue between
affected local governments and some
state programs, set limits on local regulation of oil and gas activities, and change
the state's oil and gas regulatory program.
Nevertheless, differences remain on matters such as the impact fee's size and its
allocation.
"The Senate's bill is less industry
friendly," D'Amico assesses, "Although
there are a couple of things we do not
like in the House bill."
D'Amico says PIOGA's top priorities
entail crafting a bill that provides regulatory consistency with regard to municipal
ordinances and sets a reasonable impact
fee. The association notes that HB 1950
would collect $160,000 from each unconventional well over 10 years, while
SB 1100 seeks to collect $360,000 over
20 years.
The House, Senate and governor's office spent the waning days of 2011 negotiating the final legislation, and at the
time D'Amico offered no confident predictions on what it would contain. "Anyone's guess is as good as mine," he mused
in late December. "It is up to the governor
and the leadership in the House and
Senate to decide what the final version
will look like."
Despite the uncertainty and the speed
at which major developments can arise
during such discussions, D'Amico assures

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E N V I R O N M E N TA L

that PIOGA remains closely involved.
"Yes, it is moving fast, but we have been
keeping abreast of it and providing our
input throughout the process," he pledges.
"I do not know the timetable in terms of
days or weeks, but can assure you that
all the parties involved want to get it
behind them as quickly as possible before
they start the budget debate."
Winter Meeting
As he reflects on the pivotal point at
which Pennsylvania's oil and gas industry
finds itself, D'Amico says he finds an
analogue in the steel industry that drove
the state economy for generations. "That
industry started to thrive in Pennsylvania,
particularly in the Pittsburgh area, because
of its ample coal reserves, waterways for
transportation and its rail systems," he
details. "The Marcellus Shale could be a
similar situation.
"The area has a history in oil and gas
development, so there already is a lot of
expertise and a very good regulatory
structure in place," he continues. "Pennsylvania faces no shortage of water supplies, and therefore faces none of the
critical water consumption issues that
some of the Southwest states do. We
have a lot of advantages, such as being
close to market, and most Northeast
pipelines go right to the heart of Pennsylvania."
However, D'Amico observes, Pennsylvania's steel industry did not start
overnight, nor did it grow without considerable effort. Similarly, he warns that
Pennsylvania producers cannot continue
the state's newest economic renaissance
without continual cooperation.
PIOGA's 2012 winter meeting offers
an opportunity to advance that effort. He
says the opening general session on Tuesday morning, Feb. 7, will focus on government affairs and PIOGA's political efforts, including issues such as legislation
on a shale impact fee and pipeline safety,
PUC regulations, ANF litigation, and
municipal ordinances. Topics planned for
the afternoon general session include natural gas markets, area pipeline expansion,
and the outlook for commodity prices.
Wednesday, Feb. 8, will feature two
tracks of breakout sessions, D'Amico reports, one of which will focus on operational subjects and the other focused on
environmental and regulatory matters.
"This meeting will address a lot of
the issues PIOGA is working on, and
will show where and why we have been
involved," D'Amico concludes.
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American Oil and Gas Reporter - January 2012

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