December 19, 2011
Panel discusses pros, cons of new Marcellus law
Advertiser

CHARLESTON, W.Va. -- Debate about whether the new Marcellus Shale drilling law the Legislature passed last week is good or bad is likely to continue.

Four people presented different views during the Charleston Rotary Club's luncheon at the Civic Center on Monday.

Doug Malcolm, an engineer and past president of the Independent Oil & Gas Association of West Virginia, said the new legislation has both good and bad sections for a growing industry in the state.

Gas companies in West Virginia, Malcolm said, could end up paying annual "severance taxes between $1.2 million and $1.5 million. In Pennsylvania, there are no severance taxes on gas."

Don Garvin, lead lobbyist for the West Virginia Environmental Council and a longtime member of Trout Unlimited, said, "This bill is full of waivers for the [Division of Environmental Protection] Secretary [Randy Huffman] to waive. ... And air pollution regulations were taken out of the bill."

Bob Hart, an engineer who worked for the gas and petroleum industries for many years, represents West Virginia property holders who own mineral rights on their land.

Hart said the new legislation "will allow us to develop much more of our state's oil and gas resources. ... It also increased drilling fees."

Hart said the legislation also gives companies who lease land for oil drilling "full control of all gas to the center of the earth. ... We will be seeking additional provisions for royalty owners."

Dave McMahon, a Charleston public interest lawyer, represents West Virginia property owners who do not own the mineral rights under their property. The value of their properties could be threatened by a Marcellus Shale drilling project near their homes.

McMahon said conventional gas drills cost $300,000 to develop, but new hydrofracking gas drills can cost between $3 million and $6 million.

McMahon also worries about environmental problems, such as chemical-polluted drilling water contaminating creeks and water sources.

"The bill the governor introduced was an industry bill. Never in my life have I been left out of the process so much."

The noise generated by hydrofracking drilling projects, McMahon said, will mean some "people can't sleep at night."

The Gazette now offers Facebook Comments on its stories. You must be logged into your Facebook account to add comments. If you do not want your comment to post to your personal page, uncheck the box below the comment. Comments deemed offensive by the moderators will be removed, and commenters who persist may be banned from commenting on the site.
Advertisement - Your ad here
Advertisement - Your ad here
Advertisement - Your ad here
Inside wvgazette.com