Environmental Law

Gulf Oil Spill's Impact on Marcellus Shale Exploration in PA

By Joel Bolstein

Does the Gulf Oil spill have any impact on the exploration and development of the Marcellus Shale formation in Pennsylvania?  I'd have to say that it does, at least from the standpoint of wanting additional assurances regarding the technology being used to prevent blowouts and to protect groundwater and surface water from contamination.

Just as blowout preventers were supposed to cut off any oil in the event of catastrophe on the gulf oil rig, blowout preventers are being used on Marcellus rigs to prevent gas from escaping.   Those preventers came under increased scrutiny last week when there was a blowout at a Marcellus rig in Clearfield County.  According to a PADEP press release  , a preliminary investigation determined that the blowout preventer on the well failed and it is now under investigation.  The blowout sent natural gas and at least 35,000 gallons of drilling wastewater into the sky for 16 hours.  Earlier today, the Department issued an order to the gas driller temporarily suspending its operations until a thorough investigation is completed.  Back in April, the Department took action against another drilling company after defective cement and well casings caused gas to migrate and allegedly contaminate the drinking water of 14 homes in Dimock Township.  That driller was required to pay a $240,000 fine and undertake corrective action.  In addition, a federal lawsuit was filed against the driller seeking compensation for remediation, medical monitoring and damages. 

We'd all like to think that drilling technology is foolproof.  If nothing else, what is happening in the Gulf should cause all stakeholders in Pennsylvania (legislators, regulators, the gas industry, and the public) to take a closer look at the technology being used by Marcellus rig operators to prevent blowouts from occurring.  Yes, there are an enormous number of jobs to be created by this industry, and yes, those jobs and the revenue from the wells are wonderful for Pennsylvania's economy.  But at the root of it all, is the need to ensure that the technology works and that the gas can be withdrawn in a manner that is safe and protective of human health and the environment.   Presumably, the investigation being undertaken by PADEP with regard to the June 3 blowout in Clearfield County will look into not just what caused the blowout preventer to fail, but what other well operators should be doing to prevent anything similar from happening.   

The Gulf Oil disaster is a wake up call not just for the Gulf, but for Pennsylvania.  Energy exploration has risks.  Those risks need to be understood and properly managed.   The good news is that the blowout preventer that failed in Clearfield County was secured and the well was plugged.  Emergency response was coordinated and PADEP did a good job of responding along with the State Police, PEMA and local fire and police.   I have a high degree of confidence in PADEP.  With that said, I am sure that the people of the gulf also had a high degree of confidence in their state environmental agencies that now seem relatively powerless to contain the spreading flow of oil.      

Full post as published by PA Brownfields Environmental Law on June 07, 2010 (boomark / email).