Business, Government Legal News from throughout WVGovernor’s Marcellus legislation passes Judiciary with few tweaks

Governor’s Marcellus legislation passes Judiciary with few tweaks

Comprehensive legislation introduced by Gov. Earl Ray Tomblin to regulate natural gas drilling in the Marcellus shale formation passed the Senate Judiciary Committee with only a handful of minor amendments attached to the bill.

The committee considered the legislation for over four hours, perhaps reflecting the seriousness of the discussions. Sen. Clark Barnes, R-Randolph, indicated early in the meeting that he recommended the committee sticks with the bill as long as it takes.

"I would encourage us to look at it very carefully," Barnes said. "What we do here today is going to affect people, it's going to affect the environment, it's going to affect jobs and it's going to affect our economy. It's going to affect all of us. … So I ask you not to rush this."

Sen. Corey Palumbo, D-Kanawaha, and chairman of the judiciary, assured Barnes the Senate committee would stay in the hearing until its work was completed. The meeting extended beyond the scheduled Senate floor session.

Lawmakers asked questions regarding how various policies had been determined either by the Joint Select Committee on Marcellus Shale, the crafters of the legislation, or by the Governor's tweaked version of the bill offered Sunday.

For a full report of the contents of the Governor's Marcellus shale legislation click here.

Most of the amendments were offered by Sen. Gregory Tucker, D-Nicholas. Of the five amendments offered by Tucker, four were passed by the committee.

Tucker's first amendment, which passed the committee, changes language that requires operators to notify surface owners to ensure that all property holders involved will receive notification by certified mail of intention to drill on the property. The second amendment extends to seven days the 72-hour minimum notification outlined in the bill.

A third amendment requiring extra diligence on the part of the operator should the address of record be a lien holder also passed after being introduced by Tucker.

Tucker's fourth amendment, and last to be passed, requires that mineral owners are notified of intent to drill when the operator surveys the site.

Tucker's attempts to change the use or definition of "occupied dwelling" in reference to statute that distances residences from pads failed in committee. Despite precedent of the Department of Environmental Protection that tends to broadly define occupied dwellings as places that intermittently occupied, Tucker said he was concerned a future administration may interpret that more narrowly, threatening residences such as hunting camps, vacation homes or properties that are suitable for occupation, but are not currently occupied.

Sen. Evan Jenkins, D-Cabell, offered an amendment to the bill that would require the DEP Secretary to report any waiver of minimum requirements he grants an operator. Under the governor's bill, operator's can be granted a waiver of minimum restrictions at the discretion of the DEP Secretary.

Jenkins' amendment to the legislation passed the committee.

Sen. Mark Wills, D-Mercer, offered two counsel-recommended amendments to the bill that would allow wells that were already permitted and future additional wells on pads already permitted to be excepted from the new regulations. According to DEP Secretary Randy Huffman, more the 1,600 wells are already permitted, many of which are no long conducting activity that would fall under the new regulations.

According to a fiscal note attached to the bill, the legislation Is supposed to employ 14 new oil and gas personnel at the DEP at a cost of $1.3 million, Huffman told lawmakers. About $2.4 million in revenues from the permit fees, set at $10,000 for a new well and $5,000 for additional wells on the same pad, are also anticipated.

The bill will be recommended for passage by the Senate Judiciary committee and is expected to be referred to the Senate Finance committee. The House Judiciary Committee is expected to meet regarding the House version of the bill Tuesday morning.