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Friday, December 16, 2011

New law in W.Va. aims to regulate gas industry while attracting new chemical companies

In response to controversy surrounding hydraulic fracturing and the possibility of attracting chemical companies to the Marcellus Shale region of Appalachia, the West Virginia legislature passed the Natural Gas Horizontal Wells Control Act this week. Gov. Earl Ray Tomblin said in a press release the bill will "open the door to new job opportunities and reasonable regulations for Marcellus shale development" and protect communities, surface owners and waterways.

Brett Dunlap of the News and Sentinel in Parkersburg, W.Va., reports the bill increases permitting fees "from around $400 to $10,000 for an initial well and $5,000 for each additional well... that should provide the $2.4 million annually the Department of Environmental Protection needs to close a deficit in its oil and gas division while fielding 14 additional well inspectors and support staff." The bill also says wells must be kept 250 feet from a water well, 625 feet from occupied houses and 1,000 feet from a public water supply intake.

The Charleston Gazette's Ken Ward Jr. writes on the newspaper's watchdog blog, Sustained Outrage, that the governor hoped new legislation would help continue the boom and attract "ethane crackers," or chemical plants that create ethylene from drilling byproducts, to the state. He says, though, the bill is "almost exclusively aimed at pleasing industry and weakening the legislation."

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