Thursday, November 18, 2010
Gas Industry Opposes Regulation Plans
WEST VIRGINIA....
The West Virginia Oil and Natural Gas Association and the state's Independent Oil and Gas Association are objecting to proposed restrictions on drilling locations and permit fees a legislative subcommittee is proposing for Marcellus shale wells. A draft bill presented to members of a joint judiciary subcommittee earlier this week would impose four permit fees ranging from $5,000 to $15,000 per well, as well as individual performance bonds of $25,000 per well. The permit fees include $15,000 for the initial application, $10,000 to modify an existing permit, $5,000 for annual renewals and a $15,000 reclamation fee that would be required before any permit is issued. Gas industry leaders say they believe the restrictions are based on opinion and speculation rather than science, or simply cut and pasted from laws on the books in other states, and the level of permitting is an absolute deal-stopper that could shut the industry down in the state.
The West Virginia Oil and Natural Gas Association and the state's Independent Oil and Gas Association are objecting to proposed restrictions on drilling locations and permit fees a legislative subcommittee is proposing for Marcellus shale wells. A draft bill presented to members of a joint judiciary subcommittee earlier this week would impose four permit fees ranging from $5,000 to $15,000 per well, as well as individual performance bonds of $25,000 per well. The permit fees include $15,000 for the initial application, $10,000 to modify an existing permit, $5,000 for annual renewals and a $15,000 reclamation fee that would be required before any permit is issued. Gas industry leaders say they believe the restrictions are based on opinion and speculation rather than science, or simply cut and pasted from laws on the books in other states, and the level of permitting is an absolute deal-stopper that could shut the industry down in the state.# posted by Homer Owens @ 11:08 PM 
