HARRISBURG — State Rep. Martin Causer has introduced legislation to ensure what he called “fair and reasonable oversight” of the conventional oil and gas industry.
The bill comes as a followup to the years-long fight to stop the state Department of Environmental Protection from applying regulations applied to deep-well drilling in Marcellus shale to the process of conventional, shallow-well drilling.
Those changes threatened to drive many conventional operations out of business, Causer said.
“The conventional oil and gas industry employs thousands of people and is a vital contributor, not only to our local economy but to our statewide economy as well,” Causer, R-Turtlepoint, said. “The goal of this legislation is to ensure fair regulation of the industry that will effectively protect the environment while also protecting this valuable industry and the jobs it provides.”
Specifically, the legislation would re-enact an updated version of the Oil and Gas Act of 1984. That law had governed the industry until the Marcellus shale boom and proliferation of advanced drilling methods prompted development and passage of new regulations included in Act 13 of 2012.
“Although Act 13 was intended to address new issues with the unconventional industry, it also placed an unbearable burden on the much smaller conventional producers,” Causer said. “The operations are very different, and the regulations must be as well.”
The proposal to re-enact the Oil and Gas Act includes several regulatory updates and clarifications, and would serve as the framework for any future changes to rules impacting the conventional oil and gas industry. The legislation has been developed in large part by members of the Penn Grade Crude Advisory Council, which was created by Act 52 of 2016 to advise and assist DEP with regulatory changes impacting the conventional industry.
The council is also directed to develop a plan to increase production of Pennsylvania grade crude oil to more adequately supply refineries, such as American Refining Group, and look at ways to promote the long-term viability of the conventional oil and gas industry. Causer is one of 17 members of the commission.
House Bill 2154 was introduced with bipartisan support from across the state and has been referred to the House Environmental Resources and Energy Committee for consideration. A companion bill, Senate Bill 1088, has been introduced by state Sen. Scott Hutchinson and was referred to the Senate Environmental Resources and Energy Committee.
