American Oil and Gas Reporter - March 2020 - 94
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94 THE AMERICAN OIL & GAS REPORTER
APPALACHIA. . . . . . .
FROM PAGE 85
and a huge economic benefit to Pennsylvania's Allegheny and Washington counties,
with business owners near the site preparing
long-term investments to capture the value
of the produced petrochemical products.
"That Shell facility is moving along,"
Weaver says. "I remember as a kid driving
past that site and what it used to be.
Today, you drive by and you see 50 or 60
cranes out there. It seems every week
there is a new building or tower going
up. People are very excited about the facility, and that starts you thinking about
what happens if Pennsylvania gets an
ethane storage hub and the other things
the Shell facility could bring to the area."
Well Permit Fees
Pennsylvania operators are bracing
for financial impacts after the state Environmental Quality Board approved a
150% increase in unconventional well
permit fees, Weaver reports. Pending approval, the agency says, fees will jump
from $5,000 for nonvertical unconventional
wells and $4,200 for vertical unconventional to $12,500 for all unconventional
wells, with the increase going to pay for
its staffing and operating expenses.
When EQB proposed the increase in
2019, Scott Perry, deputy secretary of
the Office of Oil and Gas Management,
said the agency was losing $200,000 a
month, Weaver details. That loss later
jumped to $400,000 a month and then
$800,000, he says, all because the agency
was issuing fewer permits.
"But, DEP never asked the general
assembly to help underwrite that part of
the department's expenses," he points
out. "All of a sudden, because there is
less drilling in Pennsylvania and fewer
applications for permits, EQB needs to
figure out how to increase its revenue. Its
oil and gas section still has 200 employees,
and those workers are dealing with less
industry activity. While there is less activity, there are increased numbers of inspections, notices of violation and fines.
The situation is interesting."
Air Quality
The gas industry also is likely to be
affected by DEP's proposed revisions to
air quality regulations for gas wells and
pipelines for volatile organic compounds,
Weaver warns. He notes the action comes
at the same time in which the U.S. Energy
Information Administration data shows
the nation's air quality is improving. "Air
particulate numbers have decreased, and
air quality has fewer issues than the
country ever has seen. Some people hate
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American Oil and Gas Reporter - March 2020
Table of Contents for the Digital Edition of American Oil and Gas Reporter - March 2020
Contents
American Oil and Gas Reporter - March 2020 - 1
American Oil and Gas Reporter - March 2020 - 1
American Oil and Gas Reporter - March 2020 - 2
American Oil and Gas Reporter - March 2020 - Contents
American Oil and Gas Reporter - March 2020 - 4
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