Shale conference looks at gov't relations
The Marcellus Shale Coalition's Shale Insight 2014 conference in September served as a forum for the industry to showcase the impact shale gas development in the region is having on the world's energy future.
Blaine Lucas, an attorney with Babst Calland in Pittsburgh, moderated a panel about relations between gas producers and municipalities.
He said producers have had to adapt to the different layers of government in Pennsylvania.
That process has changed more during the past couple years because the state Supreme Court struck down provisions of Act 13 of 2012 that amended parts of the state's oil and gas code.
The main provision struck was the one that sought uniformity and limited what local governments could put into zoning ordinances.
As a result, municipalities are again able to regulate where operators drill, and Lucas said ordinance activity has spiked in 2014.
Since the start of the year, Lucas said more than 60 ordinance changes have been enacted across Pennsylvania, with Allegheny County leading the way with 17. Butler County, at 10, ranked second.
He said most ordinances have concerned road and bridge weight limits, noise levels and zoning, which municipalities are using to reduce the area that can be developed for shale gas.
“Most of those ordinance provisions are ones that the operators generally have no difficulty living with,” Lucas said.
However, he said advocates of more stringent regulations are pushing municipalities toward intense environmental analysis. Also, those groups are working to eliminate oil and gas development in residential and agricultural areas.
Shirl Barnhart, chairman of the Morgan Township supervisors, Greene County, described the impact the industry has had on his duties.
Barnhart, also first vice president and chairman of the executive board for the Pennsylvania State Association of Township Supervisors, said shale gas development began in his area about five years ago, shortly after his township completed a comprehensive plan. The plan did not account for managing widespread oil and gas development.
“My job changed completely,” he said, explaining he had already served as a supervisor for 20 years.
“I went from working on the road and doing a few little zoning issues to working probably 75 to 85 percent of my time with the gas industry through permitting, chasing down the trucks, contractors, pipelines — it just took all my time.”
He said as an elected official, resident complaints are his top priority, and he needs dedicated company contacts.
“We work for these people, and they depend on us,” he said. “Communication is key for us. We need to know what's going on.”
Richard Weber, chairman and CEO of PennEnergy Resources, stressed the importance for gas producers to be honest and keep the lines of communication open with local officials.
PennEnergy is a smaller, private equity-backed gas producer based in North Fayette Township, Allegheny County. It has about 70,000 acres under lease in the Marcellus Shale region, including operations in the southeastern corner of Butler County.
He said officials can see through a hollow commitment. “You are an invited guest in their community,” he said. “I see it too often that producers hold their plans too close to the vest. When we do that, I think it breeds mistrust.
“Let them ask questions until they're done asking questions,” he said.
Weber also recommended working with first responders on preparedness and reinvesting in the communities.
