Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-26T21:43:58.062Z Has data issue: false hasContentIssue false
  • English
  • Français

RESEARCH ARTICLE: An Analysis of Unconventional Gas Well Reporting under Pennsylvania's Act 13 of 2012

Published online by Cambridge University Press:  03 January 2013

Joel Gehman ,
Diego Mastroianni ,
Angela Grant  and
Dror Etzion
Joel Gehman*
Affiliation:
Alberta School of Business, University of Alberta, Edmonton, Canada
Diego Mastroianni
Affiliation:
Desautels Faculty of Management, McGill University, Montreal, Canada
Angela Grant
Affiliation:
Faculty of Agricultural and Environmental Sciences, McGill University, Montreal, Canada
Dror Etzion
Affiliation:
Desautels Faculty of Management, McGill University, Montreal, Canada
*
Joel Gehman, Alberta School of Business, University of Alberta, 3-23 Business Building, Edmonton, AB T6G 2R6, Canada; (phone) +1-780-248-5855; (e-mail) [email protected]
Get access

Abstract

In response to growing concerns about the impact of shale gas development, Pennsylvania's Act 13 of 2012 established an unconventional gas well fee and required the state's Department of Environmental Protection (DEP) to report on the number of such wells. In this article, we analyze the extent to which the DEP complied with its reporting requirements under Act 13. Using publicly available data, we find that the DEP likely omitted between 15,300 and 25,100 unconventional gas wells from its Act 13 report. Left uncorrected, we estimate that Pennsylvania's state, county, and municipal governments could forfeit fees of $205–$303 million in 2012 and up to $0.75–$1.85 billion cumulatively over the expected life of these wells. Rather than an isolated incident, evidence suggests that information management is a systemic and recurring problem within the DEP and its predecessor agencies. We propose the implementation of a relational database and geographic information system as a way for the DEP to fulfill its Act 13 obligations.

Environmental Practice 14:262–277 (2012)

Type
Features
Information
Environmental Practice , Volume 14 , Issue 4 , December 2012 , pp. 262 - 277
Copyright
Copyright © National Association of Environmental Professionals 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akin Gump. 2012. Pennsylvania Passes Shale Gas Drilling Law. Akin Gump Strauss Hauer & Feld LLP, Houston, TX. Available at http://www.akingump.com/communicationcenter/newsalertdetail.aspx?pub=2996 (accessed April 23, 2012).Google Scholar
Argote, L. 1999. Organizational Learning: Creating, Retaining and Transferring Knowledge. Springer, New York, 212 pp.Google Scholar
Argyris, C., and Schön, D.A.. 1978. Organizational Learning: A Theory of Action Perspective. Addison-Wesley, Reading, MA, 344 pp.Google Scholar
Behling, M.C., Pool, S., Patchen, D.G., and Harper, J.A.. 2008. Improving the Availability and Delivery of Critical Information for Tight Gas Resource Development in the Appalachian Basin. DOE Award DE-FC26-05NT42661. US Department of Energy, Washington, DC, 27 pp.CrossRefGoogle Scholar
Belieu, S.D., Paque, M. J., and Simmers, R.J.. 2001. An Environmental Information Management Suite for U.S. Oil and Gas Wells. Paper presented at the Exploration and Production Environmental Conference, Society of Petroleum Engineers, February 26–28, San Antonio, TX, 12 pp.CrossRefGoogle Scholar
Bonham-Carter, G.F. 1994. Geographic Information Systems for Geoscientists: Modelling with GIS. Elsevier, Burlington, MA, 416 pp.Google Scholar
Butts, C. 1918. Geologic Section of Blair and Huntingdon Counties, Central Pennsylvania. American Journal of Science 46(273):523–537.CrossRefGoogle Scholar
Cahoy, D.R., Gehman, J., and Lei, Z.. Forthcoming. Fracking Patents: The Emergence of Patents as Information Containment Tools in Shale Drilling. Michigan Telecommunications and Technology Law Review.Google Scholar
Callon, M., Lascoumes, P., and Barthe, Y.. 2009. Acting in an Uncertain World: An Essay on Technical Democracy. Inside Technology. Cambridge, MA, MIT Press, 298 pp.Google Scholar
Carnegie Museum of Natural History. 2012, rev. June. Pennsylvania Unconventional Natural Gas Wells Geodatabase (computer file). Carnegie Museum of Natural History, Pittsburgh, PA, 10 pp. Available at http://www.carnegiemnh.org/assets/science/pnr/UnconventionalWells_Metadata.pdf (accessed October 27, 2012).Google Scholar
Carter, K.M. 2007. Subsurface Rock Correlation Diagram, Oil and Gas Producing Regions of Pennsylvania. Pennsylvania Geological Survey, 4th series, Open-File Report OFOG 07-01.1. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 1 p. Available at http://www.dcnr.state.pa.us/topogeo/drc/index.aspx (accessed April 10, 2012).Google Scholar
Colborn, T., Kwiatkowski, C., Schultz, K., and Bachran, M.. 2011. Natural Gas Operations from a Public Health Perspective. Human and Ecological Risk Assessment 17(5):1039–1056.CrossRefGoogle Scholar
Corbett, T. 2011. Creation of Governor's Marcellus Shale Advisory Commission. Executive Order 2011–01. Commonwealth of Pennsylvania, Office of the Governor, Harrisburg, PA, 137 pp. Available at http://files.dep.state.pa.us/publicparticipation/marcellusshaleadvisorycommission/marcellusshaleadvisoryportalfiles/msac_final_report.pdf (accessed April 12, 2012).Google Scholar
Cozart, C.L., and Harper, J.A.. 1993. Oil and Gas Developments in Pennsylvania in 1991. Pennsylvania Geological Survey, 4th series, Progress Report 205. Pennsylvania Department of Environmental Resources, Harrisburg, PA, 96 pp.Google Scholar
Detrow, S. 2012a. Commonwealth Court: Act 13's Zoning Restrictions Are Unconstitutional. StateImpact Pennsylvania, July 26.Google Scholar
Detrow, S. 2012b. Court Bars Public Utility Commission from Reviewing Drilling Ordinances. StateImpact Pennsylvania, October 26.Google Scholar
Detrow, S. 2012c. Mapping Pennsylvania's Impact Fee Revenue (This Time, Officially). StateImpact Pennsylvania, April 30.Google Scholar
Edelman, L.B., Uggen, C., and Erlanger, H.S.. 1999. The Endogeneity of Legal Regulation: Grievance Procedures as Rational Myth. American Journal of Sociology 105(2):406–454.CrossRefGoogle Scholar
Etzion, D., and Ferraro, F.. 2010. The Role of Analogy in the Institutionalization of Sustainability Reporting. Organization Science 21(5):1092–1107.CrossRefGoogle Scholar
Fischetti, M. 2010. The Drillers Are Coming. Scientific American 303(1):82–85.Google ScholarPubMed
Gallagher, H., and Song, D.. 2011. Mandatory Greenhouse Gas Reporting: Are You Sure You Are Not Applicable? Environmental Practice 13(2):122–129.CrossRefGoogle Scholar
Garud, R., and Gehman, J.. 2012. Metatheoretical Perspectives on Sustainability Journeys: Evolutionary, Relational And Durational. Research Policy 41(6):980–995.CrossRefGoogle Scholar
Garud, R., Gehman, J., and Kumaraswamy, A.. 2011. Complexity Arrangements for Sustained Innovation: Lessons from 3M Corporation. Organization Studies 32(6):737–767.CrossRefGoogle Scholar
Hamill, S.D. 2012. Drilling Numbers Do Not Add Up. Pittsburgh Post-Gazette, January. 8.Google Scholar
Harper, J.A. 1982. Oil and Gas Developments in Pennsylvania in 1981. Pennsylvania Geological Survey, 4th series, Progress Report 195. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 116 pp.Google Scholar
Harper, J.A. 1986. Oil and Gas Developments in Pennsylvania in 1986. Pennsylvania Geological Survey, 4th series, Progress Report 200. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 93 pp.Google Scholar
Harper, J.A. 2008. The Marcellus Shale: An Old “New” Gas Reservoir in Pennsylvania. Pennsylvania Geology 38(1):2–13.Google Scholar
Harper, J.A., and Cozart, C.L.. 1988. Oil and Gas Developments in Pennsylvania in 1987. Pennsylvania Geological Survey, 4th series, Progress Report 201. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 80 pp.Google Scholar
Harper, J.A., and Cozart, C.L.. 1992. Oil and Gas Developments in Pennsylvania in 1990 with Ten-Year Review and Forecast. Pennsylvania Geological Survey, 4th series, Progress Report 204. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 85 pp.Google Scholar
Howarth, R., Santoro, R., and Ingraffea, A.. 2011. Methane and the Greenhouse Gas Footprint of Natural Gas from Shale Formations. Climatic Change 106(4):679–690.CrossRefGoogle Scholar
Johnson, N., Gagnolet, T., Ralls, R., Zimmerman, E., Eichelberger, B., Tracey, C., Kreitler, G., Orndorff, S., Tomlinson, J., Bearer, S., and Sargent, S.. 2010, November 15. Pennsylvania Energy Impacts Assessment: Report 1—Marcellus Shale Natural Gas and Wind. The Nature Conservancy, Arlington, VA, 46 pp. Available at http://www.shalegas.energy.gov/resources/tnc_energy_analysis.pdf (accessed April 12, 2012).Google Scholar
Kelley, D.R., Lytle, W.S., Wagner, W.R., and Heyman, L.. 1969. Oil and Gas Developments in Pennsylvania in 1968. Pennsylvania Geological Survey, 4th series, Progress Report 177. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 48 pp.Google Scholar
Kimmel, S.L., and Fulton, P.F.. 1983. Results of Pressure Transient Well Testing in Appalachian Gas Reservoirs. Paper presented at the Eastern Regional Meeting, Society of Petroleum Engineers, November 9–11, Pittsburgh, PA, 12 pp.CrossRefGoogle Scholar
Kirr, J.N., Eddy, G.E., Locke, C.D., and Smith, J.B.. 1986. Geology and Production Potential of the Devonian Rhinestreet Shale: A Case Study of Three Wells. Paper presented at the Society of Petroleum Engineers Unconventional Gas Technology Symposium, May 18–21, Louisville, KY, 14 pp.CrossRefGoogle Scholar
Kunce, M., and Morgan, W.E.. 2005. Taxation of Oil and Gas in the United States 1970–1997. Natural Resources Journal 45(1):77–101.Google Scholar
Levine, M.E., and Forrence, J.L.. 1990. Regulatory Capture, Public Interest, and the Public Agenda: Toward a Synthesis. Journal of Law, Economics, & Organization 6 (special issue):167–198.CrossRefGoogle Scholar
Lytle, W.S., Heyman, L., and Wagner, W.R.. 1967. Oil and Gas Developments in Pennsylvania in 1966. Pennsylvania Geological Survey, 4th series, Progress Report 173. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 51 pp.Google Scholar
Mamoulis, N. 2012. Spatial Data Management. Morgan & Claypool, San Rafael, CA, 150 pp.Google Scholar
Marcellus Center for Outreach and Research. 2012. Marcellus Shale Wells. Pennsylvania State University, University Park, PA. Available at http://www.marcellus.psu.edu/images/Wells-all.gif (accessed April 27, 2012).Google Scholar
Marcellus Shale Advisory Commission (MSAC). 2011, July 22. Governor's Marcellus Shale Advisory Commission Final Report. Commonwealth of Pennsylvania, Office of the Governor, Harrisburg, PA, 137 pp. Available at http://files.dep.state.pa.us/publicparticipation/marcellusshaleadvisorycommission/marcellusshaleadvisoryportalfiles/msac_final_report.pdf (accessed April 12, 2012).Google Scholar
McKenzie, L.M., Witter, R.Z., Newman, L.S., and Adgate, J.L.. 2012. Human Health Risk Assessment of Air Emissions from Development of Unconventional Natural Gas Resources. Science of the Total Environment 424:79–87.Google Scholar
Meyer, M.W., and Zucker, L.G.. 1989. Permanently Failing Organizations. Sage, Newbury Park, CA, 192 pp.Google Scholar
Mooney, C. 2011. The Truth about Fracking. Scientific American 305(5):80–85.CrossRefGoogle ScholarPubMed
National Research Council. 2012. Advancing Strategic Science: A Spatial Data Infrastructure Roadmap for the U.S. Geological Survey. National Academies Press, Washington, DC, 115 pp.Google Scholar
O'Keefe, B. 2012. Exxon's Big Bet on Shale Gas. Fortune, April 30, pp. 75–86.Google Scholar
Osborn, S.G., Vengosh, A., Warner, N.R., and Jackson, R.B.. 2011. Methane Contamination of Drinking Water Accompanying Gas-Well Drilling and Hydraulic Fracturing. Proceedings of the National Academy of Sciences, USA 108(20):8172–8176.Google ScholarPubMed
Ostrom, E. 1990. Governing the commons: The Evolution of Institutions for Collective Action. Cambridge University Press, New York, 298 pp.CrossRefGoogle Scholar
Patchen, D.G., Schwarz, K.A., DeBrosse, T.H., Bendler, E.P., Hermann, J.B., Harper, J.A., Kelly, W.W., and Avary, K.L.. 1981. Northeastern United States. AAPG Bulletin 65(10):1896–1929.Google Scholar
Patchen, D., Schwarz, K.A., Debrosse, T.A., Bendler, E.P., McCormac, M.P., Harper, J.A., Kelly, W.W., and Avary, K.L.. 1984. Oil and Gas Developments in Mid-Eastern States in 1983. AAPG Bulletin 68(10):1383–1399.Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2000, April 10. Pennsylvania's Plan for Addressing Problem Abandoned Wells and Orphaned Wells. Document 550-0800-001. PA DEP Bureau of Oil and Gas Management, Harrisburg, PA, 8 pp. Available at http://www.elibrary.dep.state.pa.us/dsweb/Get/Version-48262/550-0800-001.pdf (accessed May 4, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2011a, November 14. Internal Review of Inspection and Enforcement of Natural Gas Operations. PA DEP, Harrisburg, PA, 10 pp. Available at http://files.dep.state.pa.us/OilGas/OilGasLandingPageFiles/NOV/FINALMarcellusEnforcementProjectFindings.pdf (accessed May 4, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2011b, rev. March. Oil and Gas Well Drilling and Production in Pennsylvania. Document 5500-FS-DEP2018. PA DEP, Harrisburg, PA, 3 pp. Available at http://www.elibrary.dep.state.pa.us/dsweb/Get/Document-83620/5500-FS-DEP2018.pdf (accessed April 10, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2012a. Act 13 Frequently Asked Questions. PA DEP, Harrisburg, PA, 8 pp. Available at http://files.dep.state.pa.us/OilGas/OilGasLandingPageFiles/Act13/Act_13_FAQ.pdf (accessed April 10, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2012b, March 27. Act 13 Overview Webinar. PA DEP, Harrisburg, PA. Available at http://www.depweb.state.pa.us/portal/server.pt/community/act_13/20789 (accessed April 10, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2012c, rev. April. Instructions for Completing an Application for a Permit to Drill or Alter an Oil and Gas Well. PA DEP, Harrisburg, PA, 10 pp. Form 8000-PM-OOGM0001. Available at http://www.elibrary.dep.state.pa.us/dsweb/Get/Document-87960/8000-PM-OOGM0001%20Instructions.pdf (accessed April 10, 2012).Google Scholar
Pennsylvania Department of Environmental Protection (PA DEP). 2012d. Public Utility Commission Act 13 Unconventional Wells Spud Report through December 31, 2011. PA DEP, Harrisburg, PA, 206 pp. Available at http://files.dep.state.pa.us/OilGas/OilGasLandingPageFiles/Act13/PUC_2011_Web.pdf (accessed March 14, 2012).Google Scholar
Pennsylvania Public Utility Commission (PA PUC). 2012a, May 10. Chapter 23 Final Order. PA PUC, Harrisburg, PA, 20 pp. Docket No. M-2012-2288561.Google Scholar
Pennsylvania Public Utility Commission (PA PUC). 2012b, September 13. Impact Fee Implementation. PA PUC, Harrisburg, PA, 20 pp. Available at http://www.puc.state.pa.us/NaturalGas/pdf/MarcellusShale/Act13_Implementation_Presentation.pdf (accessed October 27, 2012).Google Scholar
Pennsylvania Public Utility Commission (PA PUC). 2012c, July 19. Reconsideration Order Regarding Chapter 23. PA PUC, Harrisburg, PA, 10 pp. Docket No. M-2012-2288561.Google Scholar
Piotrowski, R.G. 1980. Oil and Gas Developments in Pennsylvania in 1979. Pennsylvania Geological Survey, 4th series, Progress Report 193. Pennsylvania Department of Conservation and Natural Resources, Harrisburg, PA, 64 pp.Google Scholar
PPDM. 2012. PPDM Standards. PPDM, Calgary, Canada. http://www.ppdm.org/ppdm-standards (accessed May 9, 2012).Google Scholar
Rabe, B.G., and Borick, C.P.. 2012, rev. June 1. The Conventional Politics of Unconventional Drilling: The Case of Shale Gas Development in Pennsylvania. 26 pp.http://ssrn.com/abstract=1908747 (accessed September 6, 2012).Google Scholar
Rushing, J.A., Newsham, K.E., and Blasingame, T.A.. 2008. Rock Typing: Keys to Understanding Productivity in Tight Gas Sands. Paper presented at the Society of Petroleum Engineers Unconventional Reservoirs Conference, February 10–12, Keystone, CO, 31 pp.CrossRefGoogle Scholar
Ryder, R.T. 2004. Stratigraphic Framework and Depositional Sequences in the Lower Silurian Regional Oil and Gas Accumulation, Appalachian Basin: From Ashland County, Ohio, through Southwestern Pennsylvania, to Preston County, West Virginia. US Geological Survey, Geologic Investigations Series, Map I-2810. US Department of the Interior, US Geological Survey, Washington, DC.Google Scholar
TGS. 2012. Marcellus Well Log Formation Top Interpretation. TGS, Houston, TX, 1 p. Available at http://www.tgs.com/uploadedFiles/Geological_Zone/Well_Log_Data/Formation_Tops/Marcellus%20Formation%20Tops.pdf (accessed May 6, 2012).Google Scholar
Thornton, P.H., Ocasio, W., and Lounsbury, M.. 2012. The Institutional Logics Perspective: A New Approach to Culture, Structure, and Process. Oxford University Press, New York, 250 pp.CrossRefGoogle Scholar
US Energy Information Administration (US EIA). 2011, July. Review of Emerging Resources: U.S. Shale Gas and Shale Oil Plays. US Department of Energy, Washington, DC, 82 pp.Google Scholar
US Energy Information Administration (US EIA). 2012, June 25. Annual Energy Outlook 2012 Early Release Overview. DOE/EIA-0383ER(2012). US Department of Energy, Washington, DC, 239 pp.Google Scholar
Volz, C.D., Ferrar, K., Michanowicz, D., Christen, C., Kearney, S., Kelso, M., and Malone, S.. 2011. Contaminant Characterization of Effluent from Pennsylvania Brine Treatment Inc., Josephine Facility: Implications for Disposal of Oil and Gas Flowback Fluids from Brine Treatment Plants. US EPA Hydraulic Fracturing Study Technical Workshop 3: Fate and Transport. Indiana University of Pennsylvania, Indiana, PA, 28 pp.Google Scholar
Whitacre, J.V., and Wenzel, J.W.. 2011. Publically Available Records Do Not Indicate Marcellus Wells Reliably. Paper presented at the Pennsylvania Geographical Society Annual Meeting, November 4–5, Indiana University of Pennsylvania, Indiana, PA.Google Scholar
Wylde, J.J., and O'Neil, B.J.. 2011. Environmentally Acceptable Replacement of 2-Butoxyethanol: A High Performance Alternative for Fracturing Applications. Paper presented at the Society of Petroleum Engineers International Symposium on Oilfield Chemistry, April 11–13, The Woodlands, TX, 16 pp.CrossRefGoogle Scholar
Supplementary material: File

Gehman et al. supplementary material

Supplementary data

Download Gehman et al. supplementary material(File)
File 33.9 MB
Supplementary material: File

Gehman et al. supplementary material

Addendum

Download Gehman et al. supplementary material(File)
File 32.8 KB
Supplementary material: File

Gehman et al. supplementary material

Supplementary material

Download Gehman et al. supplementary material(File)
File 16.8 KB