Legislation Adopted in West Virginia Raises Rates on Shale Drills

This post was written by Luke Liben and Nicolle Bagnell.

As anticipated, on December 22, West Virginia’s Governor Earl Ray Tomblin signed the Natural Gas Horizontal Wells Control Act, calling it “a milestone piece of legislation and a significant achievement in [West Virginia’s] history.” You can find a summary of the Act in an earlier post but note that this legislation increases the fee for wells from $400 per well to $10,000 for an initial well, and another $5,000 for each additional well placed on a single pad. It also requires the disclosure of fracking additives to the West Virginia Department of Environmental Protection.

Proposed Legislation in West Virginia Would Raise Rates on Shale Drills

This post was written by Luke Liben and Nicolle Bagnell.

Earlier this week, the West Virginia House of Delegates approved the Natural Gas Horizontal Wells Control Act that would increase the fee for wells from $400 per well to $10,000 for an initial well, and another $5,000 for each additional well placed on a single pad. These funds, in part, would be used by the state to hire additional well inspectors. The legislation also increased the presumption of contamination as a result of water wells to a distance of 500 feet, and would require the disclosure of fracking additives to the West Virginia Department of Environmental Protection. Well casing and drilling requirements, survey notices and other operator obligations to surface owners, and permit requirement and water management plans would also be altered by the legislation.

The governor is expected to sign the legislation.

USEPA to Focus on Impacts from Hydraulic Fracturing in Marcellus and other Shales

This post was written by Nicolle Snyder Bagnell.

The U.S. Environmental Protection Agency (USEPA) officially announced its plans today to initiate a study of hydraulic fracturing and its potential impact on water quality and public health. USEPA is re-allocating $1.9 million for this comprehensive study in 2010 and seeks additional funding for 2011. Hydraulic fracturing has gained the attention of Congress this year in large part due to the increased scrutiny of its use in the development of the Marcellus Shale in Pennsylvania, New York, West Virginia and other Appalachian states. USEPA is still in the early stages of designing the study and is seeking input from its Science Advisory Board. Click here for more information.

More from the Marcellus Shale: West Virginia's Department of Environmental Protection Finalizes Guidelines for Fracking

This post was written by Nicolle Snyder Bagnell.

On January 8, 2010, West Virginia's Department of Environmental Protection (WVDEP) finalized its industry guidance for oil and gas drilling in the Marcellus Shale. The guidance focuses on large water volume fracture treatments and addresses the use and disposal of frac fluids. As discussed in the guidance, horizontal drilling, coupled with large volume hydraulic fracture treatments, is becoming a common exploration technique. Large amounts of water mixed with sand and other additives are pumped into the shale formation under high pressure to fracture the rock around the well to create a permeability conduit to the well bore. Water used in the hydraulic fracturing process, often referred to as “frac fluid,” must be processed in one of three ways. It can be injected in permitted disposal wells, treated to remove generated pollutants then disposed of properly, or reused.


The WVDEP also added a "Well Work Permit Application Addendum" as part of its natural gas drilling permit application requirements.