PA Democratic Senators Call for Corbett to Revoke New Drilling Inspection Policy

Pennsylvania Sen. Jim Ferlo, D-Allegheny, wants Gov. Tom Corbett to revoke a new policy at the state Department of Environmental Protection requiring Marcellus shale drilling inspectors to get authorization to issue violations. 

Enacted March 31 by DEP Secretary Nominee Michael Krancer, the policy requires Marcellus shale inspectors to get prior authorization for citations from two department heads and the secretary. 

When employees leaked the new policy last week, Krancer said its goal was to create uniformity for the Marcellus shale drilling industry throughout the state. 

In 2010, there were 634 inspections, and 1,227 notices of violation were issued. Of those notices of violation, 308 resulted in enforcement action. Inspectors issued 14,000 violations between 2008 and 2010. 

In a news call April 4, Ferlo said he’s seen “the good, the bad and the ugly” of Marcellus shale drilling, and this latest policy change has left him “shocked and concerned” about the direction of the Corbett administration. 

“It’s completely reprehensible the administration, specifically (Krancer), issued a cease-and-desist (order) to the inspectors in the department,” said Ferlo. “(The policy change) has a chilling effect on (inspectors') ability to properly enforce the guidelines. We have to have inspectors to have a free hand to initiate citations and take enforcement of action.” 

Ferlo said the policy change has been a “moving target” since it was initiated on March 31 and argued the Corbett administration has to “speak clearly with one voice.” 

The Marcellus shale is a natural gas deposit in Pennsylvania, West Virginia, Ohio and New York that has been the main source of new jobs in Pennsylvania since the economy fractured began in 2007. Concerns about the Marcellus shale drilling abound, however, and a move to impose a severance tax failed in the Legislature last year. 

Ferlo was joined by minority leader Sen. Jay Costa,  D-Allegheny, who applauded Ferlo for “bringing this issue to light.” “It is the latest in the long line of concerns,” said Costa. “It’s continuing erosion in the public’s confidence in government.” 

Costa pointed to a list of actions by the governor that Senate Democrats described as “unprecedented,” including the administration’s resistance to an extraction or severance tax on the Marcellus shale industry and the move to develop a “friction-free” environment as stated in the governor’s budget address last month. 

Kathryn Klaber, president of the Marcellus Shale Coalition, an industry group, said the policy change will allow greater transparency, consistency and accountability across the regional offices of DEP, which handle the drilling inspections. 

“We should expect any incoming administration, especially after eight years under another administration, to attempt to improve the processes,” said Klaber. “We should allow those in elected office to implement that process of improvement, which should be welcome by taxpayers and all who have a stake in the industry.” 

Klaber also said she “absolutely rejects” the notion that Corbett made policy changes in order to pay off political contributions. 

Corbett took a no-tax pledge during his campaign for governor last year, during which he also accepted nearly $1 million in campaign contributions from the Marcellus shale industry, according to records.

Since then, however, the governor has conceded that an impact fee on the Marcellus shale industry would be acceptable, but only if revenue from the fee went to local governments and not to the state's General Fund. 

Ferlo has introduced two bills to regulate the Marcellus shale industry. The first, S.B. 680, would provide an extraction fee on the industry, while S.B. 906 would impose a moratorium on the Marcellus shale drilling industry for one year. 

Erik Arneson, spokesperson for Senate Republicans, said it was likely there are Senate Republicans “who have questions about this policy” but did not comment further. 

As an alternative to requiring two department leaders and the DEP secretary to sign off on a drilling inspector’s citation, Ferlo instead suggested state Auditor General Jack Wagner be charged with oversight of the inspectors. 

Barry Kauffman, executive director of Common Cause Pennsylvania, a citizens’ advocacy group, said the independence of well inspectors could be compromised by the new policy. 

“This is breaking new ground when it comes to regulation,” said Kauffman. “I’m not aware of this kind of micro-management from the top level happening before.” 

The DEP and the governor’s office did not return calls for comment.