Monday, January 10, 2011
New Regulations Proposed For Marcellus Shale Drilling
WEST VIRGINIA....
Proposed new regulations for horizontal drilling in the Marcellus Shale could be a heated topic in the 60-day regular West Virginia legislative session set to start Wednesday. A legislative interim committee discussed two proposed bills and forwarded one plan for consideration without a recommendation that it pass. The bills are aimed at bringing more money to the state and protecting property owners and communities. There are currently 12 inspectors for 59,000 gas wells in West Virginia. The state Department of Environmental Protection bill would use the increased revenue to add 15 inspectors.
Currently a drill permit costs about $650, but the bills up that amount to $10,000 or $15,000 per permit. Industry lobbyist Corky DeMarco claims growing the horizontal drilling market in West Virginia is already at a competitive disadvantage because of a five percent severance tax and a tax to help pay back a workers' compensation debt. Delegate Mike Caputo, D-Marion, says no one wants to shut the industry down. They just want to make sure it's properly regulated, and citizens aren't left holding the bag and roads aren't being destroyed for out of state operators to profit from.
Proposed new regulations for horizontal drilling in the Marcellus Shale could be a heated topic in the 60-day regular West Virginia legislative session set to start Wednesday. A legislative interim committee discussed two proposed bills and forwarded one plan for consideration without a recommendation that it pass. The bills are aimed at bringing more money to the state and protecting property owners and communities. There are currently 12 inspectors for 59,000 gas wells in West Virginia. The state Department of Environmental Protection bill would use the increased revenue to add 15 inspectors.
Currently a drill permit costs about $650, but the bills up that amount to $10,000 or $15,000 per permit. Industry lobbyist Corky DeMarco claims growing the horizontal drilling market in West Virginia is already at a competitive disadvantage because of a five percent severance tax and a tax to help pay back a workers' compensation debt. Delegate Mike Caputo, D-Marion, says no one wants to shut the industry down. They just want to make sure it's properly regulated, and citizens aren't left holding the bag and roads aren't being destroyed for out of state operators to profit from.
# posted by Homer Owens @ 10:30 PM 
