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 plans
West 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

5
WV Draft Rules – Horizontal Wells 

(1st 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 impoundments
Ohio 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 queue 
Ohio 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