Dry well: Marcellus shale report comes up short
Monday, July 25, 2011
Pittsburgh Post-Gazette
(excerpts)
It is disappointing that the commission backed the controversial practice called pooling, which allows drillers to force landowners to lease the rights to their underground gas deposits if most nearby owners do so voluntarily. Even Mr. Corbett has said he doesn't think pooling is right, and we agree. The practice unfairly favors the industry over the rights of property owners.
Although the commission does propose that companies pay higher bonds for each new well they drill, the fees of $10,000 each aren't high enough to cover the $60,000 cost of plugging a well in the event of a problem.
Most disheartening, though, is the commission's conclusion regarding an impact drilling fee. The commission began its work with two hands tied behind its back because Mr. Corbett won't approve a gas extraction tax, which other drilling states employ. Even when the governor said he would consider an impact fee, he included the caveat that any money it generates should be sent back to the counties and municipalities where drilling takes place.
Unfortunately, the commission -- stocked with industry executives and administration officials -- acquiesced. While the communities that suffer the most impact -- road damage, higher emergency responder costs and the like -- should be compensated for their trouble, some of the money paid by the industry also should go toward the protection of Pennsylvania's natural resources and other more general needs stemming from gas extraction.
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http://www.post-gazette.com/pg/11206/1162724-192.stm#ixzz1T7Q6pui7