BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address*Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

IF you are a Platts Market Center subscriber, to reset your password go to the�Platts Market Center to reset your password.

In this list
Natural Gas

Marcellus Shale Coalition sues to block new Pennsylvania drilling rules

Crude Oil

Record US production and the 'Mendoza line' for global oil prices

Natural Gas | Natural Gas (North American) | Crude Oil

Platts Upstream Indicator

Electric Power | Natural Gas | Financial Services | Utilities | Structured Finance

Global Power Markets Conference, 34th Annual

Natural Gas

Feature: BP, Pan American eye exporting Argentina shale gas as LNG via Chile

Marcellus Shale Coalition sues to block new Pennsylvania drilling rules

Highlights

Market commentary recaps prior day’s spot and futures trading activity

Natural gas news, including FERC rulings and insights

Price reporting at 94 geographic locations

Platts Analytics market fundamentals supplement

NYMEX Henry Hub 36-month forward contract prices

As it had previously indicated, the Marcellus Shale Coalition on Friday filed suit to block implementation of some of the new rules the Pennsylvania Department of Environment Protection implemented on Saturday, claiming the rules would add an average of $2 million to every well drilled in the state with little environmental benefit.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The suit, filed in the Commonwealth Court of Pennsylvania, challenges aspects Chapter 78a of the Pennsylvania Code, which regulates many aspects of unconventional gas drilling and which was published in the Pennsylvania Bulletin and went into effect on Saturday.

"This approach, which we had hoped we would not have to pursue, was necessary to assert the legal rights of our members directly impacted by final rulemaking's provisions, which conflict with the Pennsylvania Department of Environmental Protection's statutory authority as well as Supreme Court precedent," MSC President David Spigelmyer said in a statement Friday.

The suit marks the first time the coalition, which represents segments of the oil and gas industry active in the Marcellus Shale play, has taken direct legal action against a state entity.

Article Continues below...



A spokesperson for the Pennsylvania DEP did not immediately respond to Platts' attempts to obtain a response to the filing.

"Pennsylvania's natural gas industry is governed by some of the nation's most stringent laws and regulations, and our members continue to follow all relevant Pennsylvania and federal environmental statutes and regulations," Spigelmyer said.

"To be absolutely clear, the MSC and its members support fair, consistent and clear regulation of the industry while protecting the environment and ensuring safety," he said.

"However, certain provisions conflict with DEP's legal authority granted by the Pennsylvania General Assembly while other provisions are vague and not clear how they will be implemented by the agency.

"In order to meet regulatory requirements, industry needs clear and unambiguous regulations that are consistent with the legislature's intent."

Among the provisions of the rules that the suit is challenging are those that deal with the disposal of wastewater from unconventional gas operations and those that require operators to conduct pre-drilling inspections of surrounding areas to discover the existence of any old abandoned wells that might serve as avenues for groundwater contamination.

The suit contends that such regulations, while costly to the industry, are unnecessary as they are duplicative of existing environmental regulations.

"These shortcomings are immediately harmful to our industry because they affect our ability to conduct business and remain competitive," Spigelmyer said.

--Jim Magill, jim.magill@spglobal.com

--Edited by Alisdair Bowles, alisdair.bowles@spglobal.com