Statutory & Regulatory Review Pennsylvania, West Virginia & Ohio

Gary E. Slagel CONSOL Energy Inc.Recent Developments Affecting Shale in Pennsylvania

• PA Act 13

– Establishes a new impact fee

– Increases setbacks

– Sets new water supply protection standards

– Addresses spill containment

– Increases bonding rates

– Sets a level of municipal uniformity (currently on hold)

– Requires new recordkeeping

– Standards for corrosion protection for tanks and pipelines

2

### Pennsylvania

– Chapter 78 Revisions



### • Erosion and sediment control plans

• Control and disposal plans

• Pits and tanks

• Control and storage of production fluids

• Centralized impoundments

• Onsite wastewater processing

• Disposal of drill cuttings

3

### PA
– Chapter 78 Revisions

8,000 ft
- 8,000 ft 

### • Disposal of residual wastes

• Reporting releases

• Waterway and wetland encroachments

• Pipelines (permanent and temporary)

• Water management plansWest Virginia Marcellus Legislation ( December 14, 2011)



### • New notice requirements for water purveyors

• New well location restrictions

• Rebuttable presumption on water well impacts

• Surface owner compensation payment

• New increased permit fees

• Extended reclamation time for multiple well pads

• New bonding rates

5WV Draft Rules

– Horizontal Wells ( 1 st Quarter
– 2013)

• Erosion and sediment control plan

• Water management plan

• Water quantity and quality protection standards

• Water supply testing

– out to 1500’ Site construction plan

• Groundwater remediation

• Pits and impoundmentsOhio Shale Developments Senate Bill 165

– June, 2010

• Set mandatory pooling standards

• Set drilling unit minimum acreage requirements

• Established setback distances

• Revised permit application requirements and fees

• Addressed noise mitigation

• Set new well construction requirements

• Set new well spacing standards

### Ohio SB 315 (June, 2012)

• DNR retained exclusive authority to regulate

– Preconstruction site visit mandatory

• Expanded permit information requirements

– Test water wells out to 1500’ from wellhead

• New chemical disclosure requirements ( FracFocus option)

– OOGA suggests keeping all chemical invoices for 2 years

• Access to trade secrets by medical personnel (Colorado model)• New standards for brine injection and transportation

• Enhanced notices to property owners & municipalities

• Road Use and Maintenance Agreements required or affidavit that good faith effort was made

• Higher insurance requirement

• No increase in severance tax



### Ohio SB 315

### Ohio Underground Injection Control

• Seismic issue in Youngstown area

- late 2011

• ODNR halted UIC permitting until new rules were promulgated

• July 10

– new draft rules implemented by executive order

– effective for 90 days

• Permanent rules submitted to JCARR

– were effective 10/11/2012

• 31 pending UIC permits in the queueOhio Underground Injection Control Program Rules

• Chief may require any of the following:

• Pressure fall

- off testing

• Geologic investigation of faulting

• Seismic monitoring plan

• Testing/recording of injection pressure

• Gamma ray, density neutron logging

• Radioactive tracer or spinner survey

• Any other test deemed necessary• No brine injection until tests are completed

• Chief may limit max injection pressure

• ODNR has 15 days to review and approve permits

• Annulus monitoring during injection

• Automatic shut

- off device required Ohio Underground Injection Control Program Rules

## Great Lakes Compact

– Lake Erie Basin

• Ohio regulates withdrawals, consumptive uses and diversions out of the Basin