Krancer-Cawley Exemption Bill

Krancer-Cawley Exemption Bill

In a late afternoon session on Saturday June 30, 2012, the Pennsylvania legislature passed Fiscal Code bill (SB 1263) with a 124-74 vote.

I call your attention to the following special provision:

SECTION 1607-E. OIL AND GAS OPERATIONS IN THE SOUTH NEWARK BASIN, specifically (3) THE UNIQUE GEOLOGIC AND GEOCHEMICAL CHARACTERISTICS OF THE SOUTH NEWARK BASIN EVALUATED IN THE REPORT UNDER PARAGRAPH (1) HAVE NOT BEEN ADEQUATELY EVALUATED BY THE COMMONWEALTH AND ARE DESERVING OF FURTHER STUDY

and

(B) WELL PERMITS. THE DEPARTMENT OF ENVIRONMENTAL PROTECTION MAY NOT ISSUE WELL PERMITS UNDER 58 PA.C.S. CH. 32 (RELATING TO DEVELOPMENT) TO ENGAGE IN OIL AND GAS OPERATIONS WITHIN THE GEOGRAPHIC BOUNDARIES OF THE SOUTH NEWARK BASIN, AS DEFINED BY THE REPORT UNDER SUBSECTION (A), UNTIL ALL OF THE FOLLOWING HAS OCCURRED:

(1) A STUDY IS COMPLETED BY THE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES, IN CONSULTATION WITH THE MUNICIPALITIES LOCATED IN THE SOUTH NEWARK BASIN, EVALUATING THE PRACTICAL RESOURCE RECOVERY IMPLICATIONS OF THE REPORT UNDER SUBSECTION (A) AND THE FISCAL IMPACT OF OIL AND GAS OPERATIONS ON THE SOUTH NEWARK BASIN.

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The Newark Basin is a sediment-filled rift basin located mainly in northern New Jersey but also stretching into south-eastern Pennsylvania and southern New York. It is part of the system of Eastern North America Rift Basins.

In Pennsylvania it includes Bucks County, Montgomery County and parts of Lehigh, Berks and Chester counties.

A USGS geological map of New Jersey and the surrounding region. The Newark Basin is outlined in white.

Kooky Coincidence?

The moratorium would last until 2018, which coincides with the end of Corbett’s term should he be re-elected in 2014.

DEP Secretary Michael Krancer has political and professional ties to Montgomery County, and makes his home in Bryn Mawr, Pennsylvania.

Lt. GovernorJames “Jim” Cawley also has political and professional ties to Bucks County as well as calling it home.

CorporateHeadquarters for Aqua America is in Bryn Mawr, Aqua America formed, Aqua-PVR, a joint subsidiary with Penn-Virginia Resources and has been at the center of a controversy surrounding the eviction of the residents of Riverdale Mobile Home Park. Nicholas DeBenedictis served on the 2010 Energy-Environment committee for the then Governor-Elect Corbett.

PVR’s headquarters is in Radnor PA. Radnor is an unincorporated community in Radnor Township of Delaware County and Tredyffrin Township of Chester County.

Berks Gas Truth Responds:

Senator Chuck McIlhinney (R-Bucks, Montgomery) got the exemption added to the bill even though he voted for Act 13 earlier this year. His lack of understanding of the law he had helped pass was evident in an op-ed he wrote the day after the law was enacted. “As we worked to craft a compromise, protecting the environment and preserving local zoning control were two of my primary concerns. The final legislation accomplished these goals, earning the support of Pennsylvania Association of Township Supervisors, other local government organizations and the state’s Growing Greener Coalition. While not perfect, it is a balanced and thoughtful approach to protecting our environment and regulating an industry that is here to stay in Pennsylvania. It does not affect Bucks County’s townships, like Nockamixon Township. It would only pertain to non-conventional wells.” When he learned that the law removes local control over all gas drilling operations, including those related to pipelines, compressor stations, waste disposal and others, he vowed to amend the law, but appeared to take no action. The announcement from the U.S. Geological Survey last week that the South Newark Basin that covers much of both counties is rich in shale gas prompted him to get the language into the Fiscal Code bill at the eleventh hour.

Implications and Questions

The Corbett administration has been one of the major cheerleaders for natural gas drilling in Pennsylvania, and maintains that natural gas drilling is SAFE. The Corbett administration has ignored concerns of the risks and hazards associated with natural gas drilling.

Michael Krancer,DEP Secretary, has gone as far as berating the EPA for their involvement in Dimock, PA. On Act 13 he said: "Act 13 reaffirms our strong commitment to safe, responsible, environmentally sensitive and transparent natural gas development here in Pennsylvania".


In the original version of Act 13, State lawmakers had allotted $2 million from the proposed Marcellus Shale impact fee last year for a health registry. But that money was cut from the bill before it came to a vote. The impact fee passed, without money for a health registry.

Republican State Senator Joe Scarnati, who steered the bill to passage in February, said he was “not a fan” of the registry. Instead, he favored giving money for water testing by the Department of Environmental Protection.

Drew Crompton, Scarnati’s chief of staff, called a shale health registry potentially “inflammatory and unnecessary.”

Whenever the issue of safety arises around Natural Gas activities, Corbett's administration is quick to divert attention to JOB JOBS JOBS.

Lt. Governor Cawley’s position on Natural Gas activities in Pennsylvania is that it will create Jobs, Jobs Jobs. “Natural gas is already providing thousands of jobs for Pennsylvania. You can see it right here at Cleveland Brothers. They may not be drilling here, but jobs are being created here in Wilkes-Barre and across the state," said Cawley.

Mmmmmm, wonder why they don't want to create Jobs in the exempted areas?






Questions:
If Natural Gas Drilling is safe, why are just these areas exempt and have a 6-year moratorium?

If Natural Gas Drilling is safe, why, all of a sudden, does a study need to be done on just these areas?
Did PA Legislature shoot itself in the foot with regards to the ACT 13 challenges?

The exemptions, moratorium and call for a study to be done implies Natural Gas Drilling may not be all that safe – especially in counties where many elected, appointed state official live, and where interests to the Natural Gas industry live and/or have their headquarters.
If the PA Legislature can exempt these special areas from ACT 13 and impose a moratorium why not the same for the rest of Pennsylvania where we see the harmful and dangerous results of Natural Gas Drilling?


The two of the recent harmful result is the creation of “Old FRACKful” in Union Town­ship, Tioga County. Royal Shell issued a vol­un­tary evac­u­a­tion request to peo­ple liv­ing within a mile of the well. The Depart­ment of Envi­ron­men­tal Pro­tec­tion is inves­ti­gat­ing the incident.

The second is at a Chesapeake Energy site in Leroy, Bradford County which is experiencing “methaneplumes.” Both counties are located far away from the exempted locations.


And by the way if anyone is expecting anything to be done to correct the Krancer-Cawley Exemption bill – don’t look for it to be done any time soon:

The Senate will reconvene at 1:00PM on September 24, 2012 unless sooner recalled by President Pro Tempore.

Without the entire PA legislature in session - nothing will be done.

Pa. state Rep. Jesse White speaks out against legislation
that would allow two -- and only two -- counties in the
Philadelphia suburbs to ban Marcellus Shale drilling.
White says this unconstitutional bill is terrible policy
that will lead to long-term problems.

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