Fitting Fines:
Penalties for gas well blowout send a message
Pittsburgh Post-Gazette
16 July 2010
State Environmental Secretary John Hanger has sent a strong message to
companies mining in Pennsylvania by issuing stiff fines against the two
responsible for a natural gas well blowout in rural Clearfield County
last month.
Mr. Hanger fined EOG Resources of Canonsburg $353,000 and C.C. Forbes
Co. of Washington, Pa., nearly $47,000 for the June 3 accident that
spewed at least 35,000 gallons of chemical-laden fracking fluid into
the atmosphere for 16 hours. In addition, he said the companies stand a
good chance of losing their licenses to drill in the state if they make
the same careless mistakes a second time.
EOG had failed to have proper safety barriers in place during Marcellus
Shale drilling and took too long in notifying emergency services of the
problem; fortunately no injuries or permanent environmental damage
resulted. The companies cooperated with the state's investigation of
the accident, and Mr. Hanger said he wanted to give them a second
chance because of concerns for the workers whose jobs would be lost if
the firms' operations are shut down.
In this case, the state has found the right balance between stewardship
over Pennsylvania's air and water quality and the economic reality that
drilling for natural gas can mean tax revenue and jobs for residents.
Pennsylvania has a lot more work to do in establishing rules for firms
operating in this burgeoning industry, as well as setting tax rates
that fairly compensate the state for its impact. In the meantime, the
state's action in the Clearfield County case should stand as a warning
to other drilling companies that might attempt to drain Pennsylvania of
its natural gas deposits without sufficient regard for its other rich
resources, particularly its clean water supply.