Drilling Permit Fees Could Go From $600 to $15,000
Wheeling WV Intelligencer
11 January 2011
By Casey Junkins
WHEELING - Each of West Virginia's 12 natural gas inspectors is now
responsible for overseeing an average of 4,917 wells. State House
Majority Whip Mike Caputo believes this is unrealistic, especially with
the number of wells at 59,000 and counting.
With the full state Legislature set to convene Wednesday, Caputo,
D-Marion, and several others hope to pass a bill that would increase
the fee for drilling a single gas well from about $600 to $15,000, thus
allowing the West Virginia Department of Environmental Protection to
hire more inspectors with the extra funding. Caputo acknowledged the
DEP currently has positions for 17 inspectors, but said there are only
12 actually in the field now.
As the Marcellus Shale rush continues to grow throughout West Virginia,
especially in the Northern Panhandle, state leaders are recognizing
that new drilling regulations are needed.
Although the Legislature's joint Judiciary Subcommittee did not endorse
the legislative proposal it forwarded to the joint Standing Committee
on the Judiciary for that body's consideration, Caputo said the
subcommittee's failure to endorse the legislation was due to the
issue's sensitive nature.
"This lets the folks who are opposed to the bill see that we are still
willing to work on this," Caputo said, noting he serves as co-chairman
of the subcommittee.
Sen. Jeff Kessler, D-Marshall, is listed as the current co-chairman of
the full committee.
He expects his group to advance the bill for consideration during the
regular session upon looking at it today.
In addition to the $15,000 to drill a new well, gas companies would
need to pay $10,000 to modify the permit and $5,000 annually to renew
it. Other highlights of the bill include provisions for:
§ requiring drillers to submit detailed
water management plans, including the amount of water to be used and
its source;
§ requiring a survey for the presence of
"arsenic, benzene, toluene, ethylbenzene, xylenes, manganese, dissolved
methane, total dissolved solids, chlorides, nutrients and
radionuclides;"
§ requiring certification from the state
Division of Highways that the driller is in compliance with
"maintenance and repair of all state and county roads;"
§ requiring a detailed erosion and
sediment control plan for stabilization and drainage;
§ prohibiting wells from being drilled
within 1,000 feet of any building or water well, without permission
from the respective owners;
§ requiring restoration of drilling sites
with nine months after drilling is finished;
§ requiring all water impoundments to be
constructed with an impermeable liner to prevent leakage;
§ requiring the posting of bonds to cover
potential damage; and
§ requiring that copies of all drilling
permits for a county be available for inspection in the county
assessor's office.