View from Capitols Session
The View from Three Capitols
Speakers:
Walter A. Bunt, Jr. – Partner, K&L Gates, Pittsburgh (Moderator)
Peter A. Gleason – Partner, K&L Gates, Harrisburg
Phil Reale – Attorney and Government Relations Consultant,
Philip A. Reale, PLLC
Jim Samuel – Principal/Founder, Capitol Integrity Group
April 27, 2012
Hilton Garden Inn Hotel – Southpointe/Pittsburgh
Contents
“The View from Three Capitols”
“View from the Pennsylvania Capitol”............................................ A
“View from Charleston, WV” & “West Virginia Issues: The Horizon
Beckons” ........................................................................................ B
“Ohio’s 21st Century Energy Policy”............................................... C
Biographies ................................................................................................. D




Walter A. Bunt, Jr. (Moderator)
Peter A. Gleason
Phil Reale
Jim Samuel
Shale Gas Development Brochure ............................................................. E
K&L Gates LLP
A
View from the Pennsylvania Capitol:
Will Act 13 Survive the Increasing
Attacks from the Anti-Shale Activists?
Peter Gleason
717.231.2892
peter.gleason@klgates.com
This presentation is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any
particular facts or circumstances without first consulting a lawyer.
Copyright © 2012 by K&L Gates LLP. All rights reserved.
Act 13 – February 2012
Natural Gas Energy Development Program

Enhanced environmental protection for the
development of unconventional natural gas
resources

Well permits

Transportation of wastewater fluids

Well location

Gathering lines

Well site relocation

Emergency response

Protection of water supplier

Hydraulic fracturing chemical disclosure

Notification to public water system

Air containment emissions

Containment for unconventional wells

Criminal and civil penalties
1
Act 13 – February 2012 (Continued)

Collection and Distribution of an Impact Fee
Year
$0 – 2.25
$2.26 – 2.99
$3.00 – 4.99
$5 – 5.99
1
$40,000
$45,000
$50,000
$55,000
$6 or higher
$60,000
2
$30,000
$35,000
$40,000
$45,000
$55,000
3
$25,000
$30,000
$30,000
$40,000
$50,000
4
$10,000
$15,000
$20,000
$20,000
$20,000
5
$10,000
$15,000
$20,000
$20,000
$20,000
6
$10,000
$15,000
$20,000
$20,000
$20,000
7
$10,000
$15,000
$20,000
$20,000
$20,000
8
$10,000
$15,000
$20,000
$20,000
$20,000
$20,000
9
$10,000
$15,000
$20,000
$20,000
10
$10,000
$15,000
$20,000
$20,000
$20,000
11
$5,000
$5,000
$10,000
$10,000
$10,000
12
$5,000
$5,000
$10,000
$10,000
$10,000
13
$5,000
$5,000
$10,000
$10,000
$10,000
14
$5,000
$5,000
$10,000
$10,000
$10,000
15
$5,000
$5,000
$10,000
$10,000
$10,000

Administration – PA Public Utility Commission

Fee Distribution – 60% local, 40% state gas resource development and coordination
2
Act 13 – February 2012 (Continued)
 Municipal ordinances and zoning standards
 This Act supersedes all local ordinances purporting to
regulate oil and gas operations
 Uniformity of local ordinances
 Administration/enforcement – PA Public Utility
Commission
3
Natural Gas Uses

Residential and Commercial

Industrial



Pulp and paper, metals, chemicals, stone, clay, glass, process foods, treat waste,
incineration, drying, dehumidification, heating and cooling
Power Generation


Cooking, washing, drying, warming water, heating and air conditioning
Electric utilities and independent producers increasingly using natural gas to provide
energy for power plants because: lower capital costs, built faster, work more efficiently,
emit less pollution than fossil fuel plants
Transportation



Compressed natural gas (CNG) for
smaller to mid-size vehicles and fleets
Liquefied natural gas (LNG) for mid-size
to large vehicles and fleets
12 Million CNG vehicles worldwide:
2.7MM in Pakistan, 1.9MM in Iran and
Argentina
1.6MM in Brazil, only 125,000 in U.S.
Fuel cost is 50% less than
gasoline and 30% less CO2
4
Economic Benefits
Key Report Findings

Pennsylvania is self-sufficient in
natural gas (net exporter)

2020 output levels (17 billion cubic
feet per day) could make the
Marcellus the single largest
producing gas field in the U.S.

Marcellus could produce a quarter
of U.S. natural gas by 2020

$1.6 billion in lease and bonus
payments in 2010
5
Economic Benefits
2011
2020
Economic Value
Added:
$12.8 billion
$20.2 billion
State/Local
Taxes:
$1.23 billion
$2 billion
156,695
256,420
2,300
2,497
3.5
17.5
Cumulative
Employment:
Wells Spudded:
Output
(bcfe/day):
6
Pennsylvania Jobs, Pennsylvania Workers
 PA Department of Labor and Industry
 229,000 employees in Marcellus and
related industries
 $76,036 average core industry wage
 $30,000 higher than PA average
 $63,155 average ancillary industry wage
 $17,000 higher than PA average
 7 in 10 hires are from Pennsylvania;
Confirmed by MSC member survey
Source: PA Department of Labor and Industry, January 2012
7
Driven by Oil and Gas, Natural Resources was the
Region’s Fastest Growing Industry during the Recession
Source: BLS Census of Employment and Wages, Southwestern Pennsylvania
8
More than 30 Houston-based energy companies have
already come to the region
Allied Technology
Allis-Chalmers Energy Inc.
Baker Hughes Oilfield Operations
BJ Services Co.
Burleson Cooke, LLP
Cabot Oil & Gas Corp.
Carrizo Oil & Gas Inc.
Complete Production Services Inc.
Core Laboratories LP
Crescent Directional Drilling
Cudd Energy Services
EOG Resources Inc.
Express Energy Services LP
Exterran Holdings, Inc.
Flotek Industries, Inc.
FMC Technologies Inc.
Halliburton Energy Services
Hunting Energy Service
Key Energy Services Inc.
Kinder Morgan Energy Partners
Marathon Oil Co.
National Oilwell Varco
Royal Dutch Shell
Schlumberger Limited
Smith International
Spectra Energy Corp.
Stallion Oilfield Services
Tennessee Gas Pipeline Co.
Texas Eastern Transmission, LP
TSI Flow Products, Inc.
Universal Pegasus International
Valerus Compression Services
Weatherford U.S., LP
Wilbros International
9
Diverse Job Opportunities
Professional Functions Identified in MSC Survey
2%
1%
4%
1%
11%
Administrative: 11%
1%
Comm erical: 1%
Engineering and Construction: 24%
17%
Environmental Health & Safety: 3%
Equipm ent Operations: 30%
24%
Geology: 2%
Land: 4%
%
Operations and Maintenance: 17%
2%
Purchasing: 1%
Water Managem ent: 4%
3%
Well Services: 1%
Other: 2%
30%
Source: Marcellus Shale Coalition Membership Survey, May 2011
10
Regulatory Framework
Site Construction
Reclaimed/Completed Site
12 PA Regulations
10 PA Regulations
Drilling Phase
Midstream
Hydraulic Fracturing
18 PA Regulations
11 PA Regulations
18 PA Regulations
11
Environmental Protection
12
Issues Regulated
 Air Quality
 Groundwater Protection
(Surface Casing Programs)
 Noise
 Placement/Construction of Wellbores
 Well Production
 Surface Water Protection
 Water Use
 Road Use
 Spill Response & Remedial Measures
 Chemical Handling & Transportation
 Cultural Resources
 Employee Safety
 Public Safety
 Erosion and Sediment Control
 Waste Handling Disposal
 Well Density/Spacing
 Well Testing
 Floodplains
 Fluid Handling/Disposal
 Incident Reporting
 Wetlands
 Stream Crossings
 Threatened and Endangered Species
13
Consumer Benefits
 Energy costs dropped by $633 million in 2010
(Penn State, July 2011)
 Electricity rates drop by 50% (Bloomberg News,
January 2012)
 Residential gas and electric customers are saving
$200 a year (Navigant Consulting, January 2012)
 Major utilities serving Philadelphia area have
reduced gas bills by 37% to 52% since 2008
(Philadelphia Inquirer, December 2011)
14
Revenue for Pennsylvania
Paid by Marcellus Industry
Overall taxes since 20061
$1.1 billion
State and local taxes in 20112
Road construction investments since
Royalty payments to state in
$1.23 billion
20083
20114
Permitting and enforcement fees to increase
DEP personnel
$411 million
$107 million
$11 million
1
– Pennsylvania Department of Revenue, May 2011
2
– Penn State University, “The Pennsylvania Marcellus Shale Natural Gas Industry: Status, Economic Impacts and Future Potential,”
July 20, 2011
3
– Survey of Marcellus Shale Coalition Full Members
4
– Pennsylvania Department of Conservation and Natural resources
15
Act 13 – A No Brainer, Right? Not so fast.
Officials voted wrongly for poor gas regs. Pocono Record, 02-13-2012
Robinson to contest new law. Washington Observer-Reporter, 02-14-2012
Let municipalities rule. State College Centre Daily Times, 02-15-2012
Lawmakers pass dangerous bill for Pennsylvania. Levittown Intelligencer, 02-15-2012
Commissioners eye legal action on state drilling bill. Pittsburgh Tribune-Review, 02-16-2012
New gas law should be challenged. Washington Observer-Reporter, 02-17-2012
Gas-fee law is corporate giveaway. Bloomsburg Press Enterprise, 02-23-2012
Organizations decry lack of concern for communities, health, property. Wayne Independent, 02-28-2012
Shale legislation is hurtful to Luzerne County. Wilkes-Barre Citizens' Voice, 03-09-2012
Environmental groups release impact fee vote scorecard‎. Scranton Times-Tribune, 03-21-2012
Farmers begin to question Marcellus Shale drilling. Patriot News, Op-Ed, 03-29-2012
Peters joins fight to regulate drilling. Pittsburgh Post Gazette, 03-29-2012
16
Proposed Changes to Act 13
 Nockamixon Township – Applicability of Local
Zoning Restrictions to Conventional Wells
 Chemical Disclosure – PA Medical Society
Concern re “Gag Order”
17
Issues NOT Addressed by Act 13
 Governor Corbett’s Marcellus Shale Advisory
Commission (MSAC) – e.g., PA Environmental
Council – use of non-fresh water sources for fracing,
health registry, toughen permit conditions to protect
endangered species and areas of high ecologic value.
 PUC Safety Jurisdiction – Class I Pipelines (e.g.,
small diameter, rural areas)
 Restoration of contaminated sites to “background
standards” under Land Recycling Program. HB 2278
(Hanna)
18
Issues NOT Addressed by Act 13 (cont’d)
 Surface Owners’ Protection Act. HB 1163 (George)
 Subsurface quiet title (Dormant Oil & Gas). SB 1324
(Yaw), HB 2308 (Everett)
 No eminent domain for any gathering line projects.
HB 1926 (Preston)
 Easement agreement disclosure mandates. HB
2310 (Reese)
19
B
K&L Gates Seminar
View from Charleston, WV
April 27, 2012
Natural Gas Horizontal Well
Control Act
• Enacted during Special Session on
December 14, 2011
• Very Comprehensive
• Provides certainty to oversight of drilling
activities
• Covered site construction, impoundments,
reclamation, road usage, water
considerations, safety, reclamation, air
quality……
Executive Order No. 4-11
• Preceded Horizontal Well Act as a means
of addressing growing public concern
industry was not being regulated
• Directed WVDEP to exercise inherit
authority to impose policy, rules and
regulations governing drilling
Implementation of Legislation
• Some aspects still under construction
• Required creation of numerous forms,
notices, etc.
Concerns
• WVDEP exceeding authority?
• Environmentalists remain critical of water
withdrawal, usage and disposal
• No forced pooling and unitization
• Severed estates
• Surface owner rights
Impending Studies
• Studies required by Act:
–
–
–
–
Workforce Investment Council Report
Noise, Light, Dust & Volatile Organic Compounds
Air Quality
Impoundment & Pit Safety
• Studies suggested by Legislature:
– West Virginia Future Fund
– Relationship between seismic events and
hydrocarbon production and exploration
– Unification of surface and mineral estates under
certain circumstances
– Feasibility of "green" liquefied gas fracturing
processes
Separating Fact from Fiction
Science vs. Rhetoric and Urban
Myth – an Ongoing Issue
Communications
• Industry must recognize the need for
effective communications as a critical
component to doing business in an ever
vigilant community
West Virginia Issues: The Horizon Beckons
Although the West Virginia Legislature passed landmark legislation in a special
session in December of 2011, the legislation itself calls for continuing investigation,
evaluation and action in a number of areas. Additionally, other legislative action
conducted during the 2012 Regular Session brought into focus other issues and actions
to be fulfilled in relationship to Marcellus Shale drilling and other oil and gas activity.
In the aggregate, they include the following:
Studies required by “Natural Gas Horizontal Well Control Act”
Workforce Investment Council Report to Legislature (§5B-2B-4a)
•
•
•
Annual report to the Joint Committee on Government and Finance and the
Legislative Oversight Commission on Education Accountability
Report will include the following:
• total number of jobs created
• number of jobs created for
minorities
• total payroll of all jobs created
• number of jobs created for
• average salary per job type
individuals re-employed from
• number of employees domiciled
the state of West Virginia’s
in West Virginia
unemployment rosters
• total economic impact
• number of jobs created for
• recommendations for the
returning veterans
establishment of a workforce
• number of jobs created for legal
investment public education
West Virginia residents and
agenda to maximize job creation
non-West Virginia residents
opportunities
Report must be delivered on or before November 1, 2012
Report on Noise, Light, Dust & Volatile Organic Compounds (§22-6A-12(e))
•
By December 31, 2012, the Secretary must report to the Legislature on the noise,
light, dust and volatile organic compounds generated by the drilling of horizontal
•
wells as they relate to the well location restrictions regarding occupied dwelling
structures pursuant to this section.
If there is a finding that the well location restrictions regarding dwellings are
inadequate or require alteration, the secretary has the authority to propose for
promulgation legislative rules establishing guidelines and procedures regarding
reasonable levels of noise, light, dust and volatile organic compounds relating to
drilling horizontal wells, including reasonable means of mitigating such factors.
Air Quality Study (§22-6A-22)
•
•
By July 1, 2013, the Secretary must report to the Legislature on the need for
further regulation of air pollution occurring from well sites including possible
health impacts, the need for air quality inspections during drilling, the need for
inspections of compressors, pits and impoundments, and any other potential air
quality impacts that could be generated from this type of drilling activity that
could harm human health or the environment
If specialized permit conditions are necessary, the secretary has the authority to
promulgate legislative rules establishing these new requirements
Impoundment & Pit Safety Study (§22-6A-23)
•
•
By January 1, 2013, the Secretary must report to the Legislature on the safety of
pits and impoundments including an evaluation of whether testing and special
regulatory provision is needed for radioactivity or other toxins held in the pits
and impoundments.
If greater monitoring, safety and design requirements or other specialized permit
conditions are necessary, the secretary the secretary has the authority to
promulgate legislative rules establishing these new requirements
Rules authorized by “Natural Gas Horizontal Well Control Act”
Karst Terrain (§22-6A-3a)
•
•
Because drilling horizontal wells in naturally occurring karst terrain may require
precautions not necessary in other parts of the state, the secretary may require
additional safeguards to protect this geological formation including changing
proposed well locations to avoid damage to water resources, special casing
programs, and additional or special review of drilling procedures.
The secretary, in consultation with the state geologist, shall propose emergency
and legislative rules to establish designated geographic regions of the state where
2|Page
•
the provisions of this section are applicable and to establish standards for drilling
horizontal wells in naturally occurring karst terrain
At a minimum the rules must:
o Predrilling testing to identify the location of caves and other voids, faults
and relevant features in the strata and the location of surface features
prevalent in naturally occurring karst terrain such as sink holes
o Provide any other requirements deemed necessary by the secretary to
protect the unique characteristics of naturally occurring karst terrain,
which may include baseline water testing within an established distance
from a drilling site
Water Flow and Quality (§22-6A-8(g)(5))
•
•
All drinking water wells within one thousand five hundred feet of a water supply
well shall be flow and quality tested by the operator upon request of the drinking
well owner prior to operating the water supply well
The secretary shall propose legislative rules to identify appropriate methods for
testing water flow and quality
Certificate of approval for large pits or impoundment construction (§22-6A9)
•
•
•
Every application for a certificate of approval must be made in writing on a form
prescribed by the secretary and shall be signed and verified by the applicant
The application must include a monitoring and emergency action plan and a
maintenance plan, the required contents of which shall be established by the
secretary by legislative rule
The secretary is authorized to propose rules for legislative approval necessary to
effectuate the provisions of this section
Well Location Restrictions (§22-6A-12(e))
•
•
By December 31, 2012, the Secretary must report to the Legislature on the noise,
light, dust and volatile organic compounds generated by the drilling of horizontal
wells as they relate to the well location restrictions regarding occupied dwelling
structures pursuant to this section.
If there is a finding that the well location restrictions regarding dwellings are
inadequate or require alteration, the secretary has the authority to propose for
promulgation legislative rules establishing guidelines and procedures regarding
reasonable levels of noise, light, dust and volatile organic compounds relating to
drilling horizontal wells, including reasonable means of mitigating such factors.
3|Page
Plugging of Horizontal Wells (22-6A-13)
•
The secretary must propose legislative rules to govern the procedures for
plugging horizontal wells, including rules relating to the methods of plugging the
wells and the notices required to be provided in connection with plugging the
wells
Performance Bonds (§22-6A-15(e))
•
The secretary may establish procedures under which an operator may substitute
a new bond for an existing bond or provide a new bond under certain
circumstances specified in a legislative rule
Civil action for contamination or deprivation of fresh water source or
supply; presumption; water rights and replacement; waiver of replacement
(§22-6A-18)
•
The secretary must propose rules for legislative approval to implement the
requirements of this section
Air Quality (§22-6A-22)
•
•
By July 1, 2013, the Secretary must report to the Legislature on the need for
further regulation of air pollution occurring from well sites including possible
health impacts, the need for air quality inspections during drilling, the need for
inspections of compressors, pits and impoundments, and any other potential air
quality impacts that could be generated from this type of drilling activity that
could harm human health or the environment
If specialized permit conditions are necessary, the secretary has the authority to
promulgate legislative rules establishing these new requirements
Impoundment & Pit Safety (§22-6A-23)
•
•
By January 1, 2013, the Secretary must report to the Legislature on the safety of
pits and impoundments including an evaluation of whether testing and special
regulatory provision is needed for radioactivity or other toxins held in the pits
and impoundments.
If greater monitoring, safety and design requirements or other specialized permit
conditions are necessary, the secretary the secretary has the authority to
promulgate legislative rules establishing these new requirements
Casing and Cement Standards (§22-6A-24)
4|Page
•
•
•
•
The secretary must propose legislative and emergency rules to carry out the
purposes of this section
Rules promulgated by the secretary pursuant to this section shall include
provisions to accomplish the following:
o Effective control of the horizontal well by the operator
o Prevention of the migration of gas or other fluids into sources of fresh
groundwater or into coal seams
o Prevention of pollution of or diminution of fresh groundwater
o Prevention of blowouts, explosions, or fires
o Appropriate disposition of brines and discharges from the drilling or
operation of horizontal well
The rules regarding the casing program shall require the following information:
o The anticipated depth and thickness of any producing formation, expected
pressures, anticipated fresh groundwater zones, and the method or
information by which the depth of the deepest fresh groundwater was
determined
o The diameter of the borehole
o The casing type, whether the casing to be utilized is new or used, and the
depth, diameter, wall thickness, and burst pressure rating for the casing
o The cement type, yield, additives, and estimated amount of cement to be
used
o The estimated location of centralizers
o The proposed borehole conditioning procedures
o Any alternative methods or materials required by the secretary as a
condition of the well work permit
The rules promulgated by the secretary shall provide procedures for the
following:
o Appropriate installation and use of conductor pipe, which shall be
installed in a manner that prevents the subsurface infiltration of surface
water or fluids
o Installation of the surface and coal protection casing including remedial
procedures addressing lost circulation during surface or coal casing;
o Installation of intermediate production casing
o Correction of defective casing and cementing, including requirements that
the operator report the defect to the secretary within twenty-four hours of
discovery by the operator
o Investigation of natural gas migration, including requirements that the
operator promptly notify the secretary and conduct an investigation of the
incident
o Any other procedure or requirements considered necessary by the
secretary
5|Page
•
Notwithstanding the minimum casing and cementing standards set forth in this
section, the secretary may revise the casing and cementing standards from time
to time through the legislative rulemaking process so long as the revised casing
and cementing standards are at least as protective of the environment
Notification of claim (§22-6B-5)
•
If more than three tenants in common or other co-owners hold interest in land,
then the oil and gas developer may give the notice of reclamation to the person
described in the records of the sheriff or publish a Class II legal containing the
notice and information the secretary prescribes by rule
Studies suggested by Legislature
West Virginia Future Fund
•
•
•
SCR 52 - Requesting Joint Committee on Government and Finance study future
legislation relating to natural gas reserve development and recovery
HCR 106 - Requesting a study on how to best use the additional severance tax
collections attributed to the production of natural gas
Will likely lead to extensive discussions regarding severance taxes and the
sufficiency of current rates
House Concurrent Resolution 53
•
Requesting a study of the relationship between increases in seismic events and
hydrocarbon production and exploration in the State of West Virginia
House Concurrent Resolution 147
•
Requesting a study of the means by which owners of surface interests in tracts of
real property from which ownership of interests in the minerals have been
severed may have a first option to purchase interests in severed minerals which
are sold on the courthouse steps for non-payment of property taxes
House Concurrent Resolution 148
•
Requesting a study on the feasibility of encouraging the utilization of "green"
liquified gas fracturing processes as an alternative to water based extraction
technologies
6|Page
SORO/Activist Groups
•
•
•
Interest on the part of SORO and others in the unification of mineral properties
with surface states continues. Legislation sponsored by Delegates Manypenny
and Fleischauer, H.B. 2851, was defeated this year but will most certainly reappear. Similar legislation may arise from other sponsors next year.
Media accounts of SORO and activist driven community based public meetings
are beginning to reoccur with increased frequency, stimulating conversation
about surface owner rights and environmental issues.
Advocacy groups, such as the ultra-liberal WV Center for Budget and Policy, raise
a number of issues, the primary of which being various ways of capturing
additional tax dollars from the natural gas industry, along with unreasonable
expectations of hiring a West Virginia-only workforce.
7|Page
C
Energy
OHIO’S 21ST CENTURY ENERGY POLICY: Leading the Nation with a Comprehensive Energy Strategy
Job creation remains Ohio’s top priority. Though Ohio’s unemployment rate has dropped from 9.0 to 7.7 percent since January 2011, too many Ohioans are still unemployed. We’re making progress but Ohio still has a lot of work to do. To further efforts to recreate a jobs-friendly climate in Ohio—efforts that started last year with his Jobs Budget and other
policies—Gov. John Kasich initiated a comprehensive review of state government management, operations and policies in
key areas.
Referring to this process as the Mid-Biennium Review (MBR), because it came half-way through Ohio’s two-year budget
cycle, Gov. Kasich worked with his cabinet and staff to develop new strategies that improve the management of Ohio’s government agencies and health systems, improve Ohio’s education and workforce development efforts, and improve Ohioans’ access to low-cost, reliable energy.
Ohio’s economy—especially our large manufacturing and agriculture sectors—depends on access to reliable, diverse and
low-cost energy. With no federal energy policy to rely on and continued uncertainty in the Middle East, Gov. Kasich and his
staff began working with energy stakeholders—from energy producers to environmentalists to energy consumers—to
develop a comprehensive energy policy for Ohio that would encourage economic growth. The Governor’s 21 st Century
Energy and Economic Summit was held in September 2011, and out of that summit came ideas and strategies the
governor’s policy team used to build a comprehensive energy policy that rests on 10 pillars. The pillars below comprise the
governor’s energy policy for Ohio—ideas to support a diverse mix of reliable, low-cost energy sources that meet Ohio’s continuing job-creation needs.
PILLAR 1—SHALE: Ensuring Resources Benefit All Ohioans, Modernizing Antiquated Regulations
Recent advancements in technology have allowed previously unattainable natural resources found in shale to now be
extracted. The governor believes all Ohioans should benefit from the natural resources housed beneath our state, and it is
equally as important to put necessary precautions in place to ensure public safety.
Modernizing Ohio’s Oil and Gas Tax System to Provide Income Tax Cuts for All Ohio Taxpayers: The first
comprehensive update of Ohio’s severance tax structure in more than 40 years is necessary to keep pace with new
technologies and will ensure that new revenue from Ohio’s shale oil and gas production goes to Ohio taxpayers through state income tax reductions. [See separate fact sheet]
Modernizing Regulations While Promoting Job Growth: Health and environmental regulations must be updated to
account for changes in Ohio’s new shale industry, and must strike a critical balance between needed protections and creating a jobs-friendly environment. Several state agencies impact this industry, and regulatory updates include:
•
•
Ohio Dept. of Natural Resources (ODNR): Well construction standards and other regulations are being updated to
meet the new demands and technologies of shale development. Chemicals used in the well development process
must be disclosed to regulators.
Public Utilities Commission of Ohio (PUCO): The Pipeline Safety Division will update regulations for construction,
inspection, and safety of new high and low pressure natural gas gathering lines,
Mid-Biennium Review | Ohio’s 21st Century Energy Policy 1
Ohio EPA (OEPA):
o Encourage wastewater treatment and recycling technologies to conserve water resources and to assist with
managing water from oil and gas fracturing activities and reduce our reliance on our network of
underground injection wells,
o Issuance of general permits to streamline the lengthy EPA permitting process needed for oil and gas
operations, and ensure permits are protective of health and the environment. These permits are just as
protective but can be issued in a matter of days versus several months,
• Commerce: Consolidate and streamline review of structures at well sites for gas processing facilities and
fractionation facilities that need local review and inspections for construction and occupancy. Local counties do not
generally have needed expertise and a statewide review by Commerce will ensure consistency,
• Taxation: To cover impacts from drilling, oil and gas companies will pay an upfront fee of $25,000 per well to local
government. These dollars will be provided before the majority of impacts occur so local governments have the
resources needed to offset impacts. Oil and gas companies will get this money back over time. This change is
revenue neutral—it is not a tax—it is simply delivering funds to locals more quickly than the current system allows,
• Ohio Dept. of Transportation (ODOT): Developed a model road use agreement for counties and townships to use
with oil and gas companies to determine what roads will be used, what and how these roads will be maintained, and
who will pay for road maintenance. ODNR will verify if this agreement is in place as part of the permit process to
receive a permit to drill any new oil and gas well.
PILLAR 2—GENERATION: Ensuring Ohio’s Generation Capacity and Investing in New Technologies
Ensuring Ohio businesses and citizens have the energy they need is key to a strong economy, and this starts with
generation of that energy. The OEPA will work with the PUCO to:
•
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Review and pilot new generation and efficiency technologies (ex: Smart Grid)
Expand customer choice for renewables
Assess federal EPA impacts on future generation and transmission
Advocate for reforms to expand the reliability pricing model
PILLAR 3—ELECTRICITY TRANSMISSION & DISTRIBUTION: Meeting Needs of Industry and Consumers
A major factor in job creation is getting energy where it needs to be so companies can operate efficiently and at a low cost.
To ensure Ohio’s transmission infrastructure meets these needs, particularly for the development and expansion of the shale industry in eastern Ohio, the PUCO will be authorized to:
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Review transmission infrastructure in the Ohio shale region to ensure transmission and distribution are adequate,
Assess and recommend changes in the transmission and distribution system that would make the development of
renewable energy in Ohio more accessible and cost effective.
PILLAR 4—COGENERATION / WASTE HEAT RECOVERY: Capturing Waste Heat to Make Green Energy
Turning otherwise wasted byproducts into usable energy makes sense if it’s cost effective. To encourage efforts to recover
waste heat and identify cogeneration as an appropriate technology, the following policy changes are proposed:
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Allow cogeneration to qualify as a renewable energy source in Ohio,
Allow all Ohio electric utilities to use cogeneration to meet alternative efficiency standards,
Revamp the Energy Loan Fund to place more focus on energy efficiency and alternative fuels,
Require the Ohio Dept. of Administrative Services (DAS) to review cogeneration as part of new construction and
major renovations in state facilities.
PILLAR 5—WORKFORCE TRAINING: Aligning Industry Needs with Worker Training
Mid-Biennium Review | Ohio’s 21st Century Energy Policy 2
Matching the skills of workers with the demands of the energy industry is a crucial part of Ohio’s energy policy. By providing
a skilled workforce to the industry, Ohio will be in a better position to attract business and jobs over neighboring states with
comparable natural resources and logistical advantages. Workforce strategies include:
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Investing in shale and energy industry training
o Zane State: $6M proposed in Capital Budget to construct new training space
o Stark State: $10M proposed in Capital Budget to construct indoor drill training rig
o Nabors Drilling: State assisting with site selection to build oil and gas training rig
Creating a website linking Ohio companies with a trained workforce
Working with companies to develop training credentials to ensure skills match demand
Linking veterans and minorities with jobs specific to oil and gas industry
PILLAR 6—CNG/ALTERNATIVE FUELS: Promoting the Use of Natural Gas
Alternative fuels have the potential to reduce our reliance on foreign energy sources. In order to encourage examination
and adoption of alternatives fuels, the Governor’s Office, PUCO and ODOT will:
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Sign an agreement with other states to develop regional Compressed Natural Gas (CNG) refueling infrastructure
and promote the usage of CNG vehicles in Ohio (signed on 2/29/2012),
Assess converting all or part of the state fleet to CNG,
Develop flexible revolving loan fund for alternative fuels (CNG, biodiesel and ethanol).
PILLAR 7—ENERGY EFFICIENCY: Promoting Efficiency to Save Resources
Promoting efficiency and maximizing our energy resources will help offset rising energy prices. DAS and the PUCO will
work to:
•
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Improve state building efficiency and finance through Air Quality Development Authority,
Identify new efficiency technologies and programs available to Ohio,
Determine standards for state fleet vehicle replacement to increase efficiency,
Review utility green pricing programs and expand customer choice.
PILLAR 8—COAL: New Opportunities for a Critical Resource
Ohio is rich with coal, and it’s a critical resource for our state’s energy needs. However, it’s important that we pursue new
technologies that reduce coal’s impact on the environment. The energy policy proposes:
•
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$30M for coal research projects on carbon capture, sequestration, enhanced oil recovery, and new technologies,
Streamlining and simplifying permit process for coal companies,
Exempt coal combustion waste from additional fees and encourage solid waste landfill management.
PILLAR 9—REGULATORY REFORM: Streamline and Expedite Environmental Permits
Smart regulation is necessary but the process by which businesses must comply with these regulations should be simple to
understand and navigate. The OEPA will:
•
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Develop and issue “general permits” for business to minimize lengthy permit review,
Request federal wetland permitting program authority to eliminate duplication with state program.
PILLAR 10—RENEWABLES: Promoting Renewables for a Balanced Energy Portfolio
Pursuing reliable and cost effective renewable energy sources is the final piece of Ohio’s comprehensive energy strategy. The PUCO will:
•
•
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Develop flexible revolving loan fund for alternative fuels,
Revamp the Energy Loan Fund to help finance energy efficiency and renewable energy projects,
Identify and address interconnection challenges to renewable energy projects,
Mid-Biennium Review | Ohio’s 21st Century Energy Policy 3
•
Review utility green pricing programs and expand customer choice.
BOTTOM LINE: In order to ensure economic stability and move toward energy independence, Ohio must develop a
comprehensive energy policy that includes a diverse mix of sources available at a low cost. By utilizing partnerships
between the government, industry leaders, the education system, and environmental advocates, as well as by using new
technologies and applying appropriate regulatory oversight to ensure public safety, Ohio can lead the nation with a complete
energy policy while maintaining Ohioans’ historical common sense stewardship of the environment.
###
Mid-Biennium Review | Ohio’s 21st Century Energy Policy 4
D
Walter A. Bunt, Jr.
AREAS OF PRACTICE
PITTSBURGH OFFICE
412.355.8906
TEL
412.355.6501
FAX
walter.bunt@klgates.com
Mr. Bunt’s primary role is as trial counsel for corporate clients. For over 30 years, he
has represented natural gas and coal bed methane producers, pipeline companies,
natural gas reservoir operators and utilities with their major energy litigation. He has
litigated cases involving lease disputes, development obligations, eminent domain,
royalty class actions, ejectment, quiet title, right of ways, land use, coal bed methane,
natural gas reservoirs, salt-dome storage, pipeline explosions, residential explosions
and fires, public utility litigation, personal injury and commercial property damage
matters. Mr. Bunt has tried cases in numerous Federal District Courts, Pennsylvania
Common Pleas Courts, other state’s trial courts and before administrative and
arbitration tribunals.
PROFESSIONAL BACKGROUND
Prior to practicing at K&L Gates, from 1976 to 1982, Mr. Bunt served as Executive
Assistant to the District Attorney for Allegheny County. His responsibilities included
District Attorney office administrative activities as well as trying numerous
felony/misdemeanor criminal jury and non-jury cases.
Mr. Bunt also served as a part-time instructor at the University of Pittsburgh and has
taught at other colleges and universities in western Pennsylvania.
PROFESSIONAL/CIVIC ACTIVITIES
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Allegheny County Bar Association (Civil and Public Utilities Sections)
American Bar Association
Pennsylvania Bar Association (Civil and Public Utilities Sections)
BTI Client Service All-Star - 2007
COURT ADMISSIONS
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U.S. Supreme Court
U.S. Third Circuit Court of Appeals
U.S. District Court, Western District of Pennsylvania
United States Tax Court
Pennsylvania Supreme Court
BAR MEMBERSHIP
Pennsylvania
EDUCATION
J.D., Duquesne University
Ph.D., University of Pittsburgh
M.A., University of Pittsburgh
B.A., The Citadel
K&L Gates LLP
Walter A. Bunt, Jr.
RECOGNITIONS AND AWARDS
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Received Martindale- Hubbell’s® AV® Preeminent™ peer review rating
The Best Lawyers in America® for Commercial Litigation (2012)
GRANTS AND SCHOLARSHIPS
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K&L Gates LLP
von Humboldt Fellowship, Bonn University
Fulbright Travel Grant
Salzburg Seminars Fellowship, Salzburg, Austria
Peter A. Gleason
AREAS OF PRACTICE
HARRISBURG OFFICE
717.231.2892
TEL
717.231.4501
FAX
peter.gleason@klgates.com
Mr. Gleason concentrates his practice as Pennsylvania and federal legislative and
regulatory policy counsel. Building on his experience with the Office of the Governor
in Pennsylvania, the Pennsylvania General Assembly and the United States Congress,
Mr. Gleason has a unique perspective on and an understanding of the legislative and
administrative processes, and an insider’s view of the political considerations and
other motivations that drive those processes. He currently represents a diverse client
base, including prominent leaders within industries such as: manufacturing, rail
freight transportation, natural gas production, energy policy, financial services,
emerging growth and high tech, health care and retail. In 2010, Mr. Gleason was also
selected to serve on Governor Tom Corbett’s Transition Team.
PROFESSIONAL BACKGROUND
Prior to joining K&L Gates, Mr. Gleason served in Pennsylvania Governor Mark
Schweiker’s Cabinet as Secretary for Legislative Affairs. In that capacity, he advised
the Governor, the Governor’s senior staff and fellow cabinet secretaries on legislative,
regulatory and policy matters affecting all agencies under the governor’s jurisdiction.
On his departure from state government, Governor Schweiker had this to say about
Mr. Gleason:
“Pete Gleason has been a vital advisor to me, and a trusted liaison
with the General Assembly. He helped my Administration win
passage of many historic pieces of legislation, including reforms to
Pennsylvania’s Medical Malpractice and Joint and Several Liability
laws, not to mention the 2002-03 Budget – one of the most difficult
budgets in Commonwealth history.”
From 1997 to 2001, Mr. Gleason had served as deputy secretary for legislative affairs
with the office of the governor in Pennsylvania. He worked with former Governor
Tom Ridge until his appointment as director of Homeland Security.
During his tenure with the office of the governor, as the Governor’s liaison to
Pennsylvania General Assembly legislative leaders and committee chairs, Mr. Gleason
played an integral role in the enactment of the following legislative initiatives:
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K&L Gates LLP
The 2002-03 General Fund Budget (in the wake of a structural deficit in excess of
$1.4 billion dollars).
All legislative tax policy matters; including several significant amendments to the
Public Utility Realty Tax Act (PURTA), changes to the Corporate Net Income
Tax (CNIT), the phase-out of the Capitol Stock and Franchise Tax (CSFT) and
changes to the state Sales Tax.
The creation and expansion of Keystone Opportunity Zones (KOZ), Enhancement
Zones (KOEZ) and Improvement Zones (KOIZ)..
Historic reforms to Pennsylvania’s Medical Malpractice and Joint and Several
Liability laws.
The enactment of the Commonwealth’s Procurement Code.
Peter A. Gleason
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Natural Gas Deregulation.
The Uniform Electronic Transactions Act.
Land Use Reform (“Growing Smarter”).
The Environmental Stewardship Act (“Growing Greener”).
The Uniform Construction Code.
Workers’ Compensation Reform.
Mr. Gleason’s past positions also include director of legislative affairs at the
Pennsylvania Department of Labor & Industry, special projects director to the
Republican Leader of the Pennsylvania House of Representatives, and special
assistant to former United States Senator John Heinz.
In 2008, Pennsylvania Report named Mr. Gleason as one of Pennsylvania’s “Top 100
Most Influential People,” in a list comprised of the 100 people most likely to have an
impact on government and politics in Pennsylvania in 2008. In a 2004 poll conducted
with state legislators, staff, lobbyists and other state policy stakeholders, he was
named as “Most Effective Lobbyist” in Pennsylvania. Mr. Gleason was recently
honored by the Pennsylvania Law Weekly and the Legal Intelligencer as one of forty
lawyers under forty “On the Fast Track” for his work at K&L Gates and in the office
of the governor.
REPRESENTATIVE EXPERIENCE
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K&L Gates LLP
Oil & Gas Legislative and Regulatory Policy: Representing several natural gas
producers operating within the Marcellus Shale on legislative and regulatory
policy matters pending within the PA General Assembly and numerous regulatory
agencies with oversight for Marcellus Shale activities.
Competitive Industrial Electric Rates: Assisted large manufacturing clients in
enacting legislation permitting large industrial customers to negotiate competitive
rates with incumbent electric utilities, paving the way for significant, historic
capital investments by those customers.
Economic Development Incentives: Secured tens of millions of economic
incentives for clients seeking to make large capital investment and significantly
increase jobs in the Commonwealth, including grants and low interest loans,
transportation assistance, rail capital and community development funds.
Business Tax Reform: Successfully led a large coalition of manufacturers and
high/bio tech companies to secure dramatic statutory changes in Pennsylvania’s
Corporate Net Income Tax structure that had penalized companies for increased
capital and employee investment in the Commonwealth.
Tax Free Zones: Successfully assisted large manufacturing client with the
enactment of legislation creating several state and local tax free zones throughout
Pennsylvania to facilitate business expansion and relocation.
Civil Justice Reform: Successfully represented several clients in passing
legislation repealing the doctrine of joint & several liability in Pennsylvania.
Procurement Bid Protests: Managed several, successful bid protests on behalf
of clients that wanted to pursue a protest without jeopardizing agency
relationships.
Health Care: In separate matters, successfully represented several hospitals and
Peter A. Gleason
the pharmaceutical industry in reversing or mitigating proposed agency
recommendations that would have caused significant harm to those clients.
PROFESSIONAL/CIVIC ACTIVITIES
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Supreme Court of Pennsylvania
Dauphin County Bar Association
Pennsylvania Bar Association
Chairman of the Board of Directors: The Bridge Educational Foundation
Board of Directors: The Country Club of Hershey
Derry Township Planning Commission
PRESENTATIONS
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“Procedural Pitfalls in the Legislative Process,” presented in the Governor’s
“Office of General Counsel University”
“Lobbying Disclosures and the Pennsylvania Ethics Act,” presented to the
Cumberland County, PA Inn of Court.
“Interaction with the Legislature by Government Attorneys,” presented to the
Governor’s Office of General Counsel.
BAR MEMBERSHIP
Pennsylvania
EDUCATION
J.D., Widener University School of Law, 1995
B.S., Arizona State University, 1989
K&L Gates LLP
Phil Reale
Attorney and Government Relations Consultant
Philip A. Reale, PLLC
Phil Reale is an attorney and government relations consultant who has vast experience in oil and gas
matters as both an attorney and as lobbyist for the industry. He is a 1977 graduate of the West Virginia
University College of Law and upon graduation engaged in the general practice of law in the natural gas
producing region of central West Virginia, including a period between 1982 and 1988 as general counsel
for Waco Oil and Gas Company in Glenville, West Virginia. During that time he became an active
member of the Independent Oil and Gas Association of West Virginia, including one term as president of
the organization and at all times an effective coordinator of public policy and legislative affairs for the
industry in West Virginia. In recent years he has served as lobbyist for both the Independent Oil and Gas
Association of West Virginia and the West Virginia Oil and Natural Gas Association. He serves on the
Board of Directors of Alliance Petroleum Corporation, an exploration and production company with
operations in Ohio, West Virginia and Pennsylvania.
In 1988, he chaired the transition team for incoming West Virginia Governor, Gaston Caperton and
ultimately served the new governor as his Chief of Staff, a role that led him into a career of helping guide
clients through legislative and government processes. He has served the state in a variety of capacities
including that of its representative to the Interstate Oil and Gas Compact Commission for which he served
as its Vice Chairman. Additionally, he Co-Chaired the Higher Education Advocacy Team and
championed a higher education reform effort, served two terms as Chairman of the State College System
of West Virginia Board of Directors, served on the West Virginia Judicial Investigation Commission,
served on the West Virginia Educational Broadcasting Authority, served on the West Virginia Prepaid
College Tuition Trust Fund Board of Directors, and has held offices in the West Virginia Democratic Party
and served as the first Chairman of the WV Democratic Legislative Council. He is the recipient of two
Distinguished West Virginian Awards of Public Service.
On the charitable side of the ledger, he has served as Chairman of Special Olympics of West Virginia,
been an avid supporter of youth athletics, is the Chairman of the West Virginia Golf Hall of Fame, a
member of the West Virginia Golf Association Executive Committee and a member of the Board of
Directors of the West Virginia Golf Foundation.
He is married to his wife of nearly 37 years, the former Terry Smith of Vienna, West Virginia and has two
sons, namely Philip A. Reale, II who practices law in Charleston, West Virginia and Patrick Anthony
Reale, who currently works and lives in Greenville, North Carolina where he is attending law school.
K&L Gates LLP
Jim Samuel
Principal/Founder
Capitol Integrity Group, Ltd.
Mr. Samuel founded Capitol Integrity Group, Ltd. in 2005 as a strategic policy development and
communications consultancy whose clients include public and private corporations, government
agencies, institutions of higher education, business associations and non-profit entities. Mr. Samuel
provides clients with strategic guidance, cultivated resources, and a comprehensive approach focused
on issue management, public perception and political forces.
He has unique insight and knowledge of complex governmental and business structures serving in
executive management positions at five cabinet-level agencies in the administrations of two Ohio
Governors. Mr. Samuel has served as a key policy strategist, chief spokesman, principal legislative
agent and crisis coordinator.
Mr. Samuel is a Fellow of Cleveland State University’s Maxine Goodman Levin College of Urban
Affairs and served as a co-author of Driving Ohio’s Prosperity, a strategy document for Ohio’s
automotive and advanced manufacturing sector and as an advisor on An Analysis of The Econmic
Potentital for Shale Formations in Ohio. He serves as a member of the Columbus Chamber
Government Affairs Steering Committee and on the Board of Directors of the Ohio League of
Conservation Voters and the Nemacolin Energy Institute. Previously he served as Vice President of
CompeteColumbus.
Prior to founding CIG, Mr. Samuel served the Governor of Ohio personally as Executive Assistant for
Business & Industry, the primary advisor and liaison between Ohio’s business community and the
Office of the Governor; providing policy review, recommendations and advice. Mr. Samuel also served
as the governor’s primary liaison to seven cabinet agencies and two commissions: the Public Utilities
Commission of Ohio, the Departments of Development, Transportation, Taxation and Agriculture, the
Bureau of Workers’ Compensation, the Industrial Commission of Ohio, the Ohio Turnpike Commission
and the Ohio Expositions Commission.
Mr. Samuel led successful efforts to achieve lawsuit and workers’ compensation reforms, the creation
of the Ohio Business Development Coalition, and served as the lead in responding to numerous
energy policy matters, reliability and industry crisis response issues, including the Blackout of 2003.
He also led state preparation efforts for the 2005 DoD Base Realignment and Closure review. His
tenure was highlighted by the passage of historic tax reform legislation for which he was recognized at
the highest levels as being instrumental to the success with reforming Ohio’s antiquated tax system.
Immediately prior to his appointment to the Governor's Staff, Mr. Samuel served eight years as
Deputy Administrator & Chief of Corporate Affairs for the Ohio Bureau of Workers' Compensation, at
the time the largest single-line insurer in the nation with more than $22 billion in assets. Mr. Samuel’s
work has been recognized with awards from the Public Relations Society of America, Bulldog Award
for Crisis Communications and induction as an Ohio Commodore.
Jim is a native of Northeast Ohio and began his career working in a family printing business in
downtown Cleveland. He graduated from The Ohio State University with a degree in Social &
Behavioral Sciences and received an honorable discharge from the United States Air Force. Jim lives
in central Ohio with his wife Heidi and their two children. He contributes time to his community as an
active and involved father to his two children and as a member of the School Advisory Board for St.
Catharine School.
K&L Gates LLP
E
PUBLIC POLICY AND LAW:
SHALE GAS DEVELOPMENT
The K&L Gates oil and gas team has profound experience helping natural gas
producers in the major U.S. shale plays—including the Marcellus, Barnett, and
Haynesville—navigate through the threats and opportunities posed by local,
state, and federal policy.
We assist our clients in the legislative and
regulatory processes by helping them
understand what motivates legislators and
by actively seeking solutions to meet our
clients’ public policy needs. Our public
policy professionals closely coordinate with
lawyers in our Austin, Dallas, Fort Worth,
Harrisburg, Pittsburgh, and Washington,
D.C. offices who are involved in regulatory, enforcement, and litigation matters
on behalf of the industry. Our team is
deeply involved with and has decades of
experience working with legislative leaders,
committee chairs, rank-and-file lawmakers,
state regulators, and the Governor’s offices
in key states. We also work with federal
officials in Congress and with federal
agencies, such as the Department of
Energy, the Department of the Interior, the
Environmental Protection Agency, and the
Federal Energy Regulatory Commission,
on the development of regulatory policies
of national and regional significance, as
well as effectively resolving individual
permitting and enforcement disputes. This
allows K&L Gates to be uniquely positioned
to offer clients a coordinated strategy
between their legal and policy priorities.
We are prepared to develop a strategic
public policy plan based upon client
substantive priorities and preferred public
profile—high, medium or low.
“We assist our clients in the legislative
and regulatory processes.”
Our team members are highly effective in
developing public policy strategies drawing
on their prior experience in both industry
and government. Various team members
have held senior positions in both industry
(for example, as Senior Government Affairs
Representative for Amoco Corporation) and
in the legislative and executive branches
of the federal and state governments. Our
team includes past members of Congress
from the U.S. Senate (including Chair of
the Senate Appropriations Subcommittee
on Interior, Environment, and Related
Agencies which has jurisdiction over lands
issues) and the House (including a 20-year
veteran of Congress representing a district
within the Marcellus Shale area and a past
Chair of four House Appropriations Committees), as well as senior staff in Congress
such as a Chief Tax Counsel for the U.S.
Senate Finance Committee, Chief Counsel
for the Senate Environment Committee,
and professional staff of the Energy and
Environment Subcommittee of the U.S.
House Committee on Science and Technology. Others bring strong executive branch
experience, including an Associate General
Counsel for the U.S. Environmental Protection Agency and senior political appointees
in the U.S. Department of Energy.
Our Experience
State
oWater resource impact concerns
surrounding the NYC water
supply system
• EPA Proposed GHG Endangerment
Finding, and prospects for federal regulation of CO2 and with consequences
for shale extraction and natural gas.
—Water well protection/testing
—Act 214 spacing (coal resource
and gas well coordination)
—Conservation Act spacing
—Pooling proposals
o Transportation/infrastructure issues
o Legislative and regulatory counseling
• Clean water act stormwater permitting
rules for oil and gas sites.
—Development of shale
gas regulatory
—Authorization for severance tax
—Local property tax issues
o Local Government Land Use Issues
—Special use permits
and approvals
—Proposed wastewater treatment
and TDS standards
—Erosion, sedimentation, and
stormwater regulatory changes
—River Basin Commission
regulatory programs
•Texas
o Environmental Regulation
—Water supply issues
—Road bonding and repair
—Zoning
• Energy Reauthorization and Natural
Gas Promotion Legislation.
—PUC gathering lines/pipeline
enforcement proposal
oEnvironmental legislation and
regulations
o State and Local Tax Issues
• Federal climate change legislation,
specifically amendments to promote
natural gas relative to other fossil fuels
which have larger carbon footprints.
• Federal Safe Drinking Water Act’s
Underground Injection Control (UIC)
regulations and potential legislation
that would repeal an exemption from
UIC regulation provided for injection for
fracture stimulation.
—Well reporting data
•North Carolina
• The Ozone Transport Commission
(OTC).
• Support from the Department of the
Interior on federal lands and mining
issues related to health and safety and
reclamation.
oNY’s Supplemental Generic
Environmental Impact Statement
and evolving regulatory program for
shale gas development
Federal
• Appropriations for technology development in fossil energy and working with
key Congressman and Senators who
serve on the relevant Appropriations
Subcommittees.
—Surface owners rights
• New York
We are versed on the following federal and
state policy proposals important to the
development of the main U.S. shale plays:
• Fossil Energy Grant Funding and
Programmatic Support from the
Department of Energy, including
support from DOE’s Fossil Energy
Office and the National Energy
Technology Laboratory.
o Gas Well Development Regulation
o State and local tax issues
—Wastewater management
—Severance
—Sedimentation and
erosion control
—Property taxes and situs issues
—Stormwater management
•Pennsylvania
o State and local tax issues
—Severance tax
—Local property assessment
—Clean & Green “fix”
oLegislative initiatives and surface
owner issues
—Municipal ordinances
—Trucking restrictions
—Restrictions on hours of
operation
—Well site locations and
restrictions
—Pipeline rights of way and
eminent domain
oLegislative reaction/solutions to
litigation threats
—Minimum Royalty Act/postproduction cost deductions
—Local government zoning/
preemption
—State parks, forest and game
commission activities
o Agency Initiatives
—Benzene regulation and possible application of Title V to oil
and gas operations
—Bonding requirements
—Fresh water usage
Learn more about our Shale Gas Development practice at klgates.com.
Contacts:
Newark
John F. Spinello
+1.973.848.4061
john.spinello@klgates.com
Harrisburg
Peter A. Gleason
+1.717.231.2892
peter.gleason@klgates.com
Raleigh
Amy H. Fullbright
+1.919.743.7352
amy.fullbright@klgates.com
Washington, D.C.
Tim L. Peckinpaugh
+1.202.661.6265
tim.peckinpaugh@klgates.com
10240
Austin
Jack M. Erskine
+1.512.482.6875
jack.erskine@klgates.com