Thursday, October 1, 2009

GAS DRILLING: NY DEC Drilling Regulations Released

BACKGROUND: State officials have completed new environmental regulations for natural gas drilling that will clear the way for well permits in New York’s part of the MARCELLUS SHALE gas field that covers parts of four states. The new rules, released for public review Wednesday, are in addition to statewide oil and gas regulations released in 1992. The new regulations, contained in a 500-plus page document, address the potential effects of horizontal drilling and high-volume hydraulic fracturing, known as “hydrofracking.” There will be a public comment period until Nov. 30. More than a year ago, Gov. Paterson effectively halted drilling so the DEC could provide additional regulations to address a number of conerns. Environmentalists and residents worry about chemicals used to fracture rock and release the gas, the huge amounts of water required, and possible threats to New York City’s water supply. On the other hand, some see this as an econmic boom for the area. Brad Gill, executive director of the Independent Oil and Gas Association of New York, said “A lot of them [energy companies] are just waiting for the green light to drill” under the new rules. When the regulations get final approval, expected around the first of the year, “I think we will see drilling in New York and the economic boom associated with it.” STATE REGULATIONS: The new regulations include measures companies must take to protect the environment and nearby communities. Before drilling, energy companies must: Disclose what chemicals are in the “fracking” fluid; Test private water wells within 1,000 feet of drilling sites before projects begin to provide baseline information; Fill out checklists and certification forms to ensure technical compliance; and prepare plans for reducing greenhouse gas, visual and noise impacts, and submit a road-use plan covering trucking. State inspectors also must be on site during well construction. Handling and disposal of wastewater that comes back up from wells after fracturing must be stored in steel tanks on the site or piped to a central storage pit using a double-liner system similar to those required at landfills. Well operators must disclose plans for disposal, and a new tracking process similar to that used for medical waste will be used to monitor disposal. The new regulations require extra protections for the New York City watershed and other sensitive areas, including a buffer zone around water bodies, city approval for wells within 1,000 feet of water tunnels or aqueducts and stricter wastewater handling requirements. The regulations are available on the DEC Web site. On the Web: www.dec.ny.gov/energy/47554.html See full article at -- they provide good coverage on gas drilling issues (See oneidadispatch.com)PENDING FEDERAL REGULATIONS: Democratic Reps. Diana DeGette of Colorado and Maurice Hinchey of New York are sponsoring a bill that would place hydraulic fracturing under oversight of the federal Safe Drinking Water Act. Amazingly!!... gas drilling activities are "exempt"/excluded from regulation under the Federal Clean Water Act.