Construction and Operation:

upsetsubduedManagement

Nov 9, 2013 (3 years and 8 months ago)

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www.bipc.com

Megan E. Smith, Esq.

Buchanan Ingersoll & Rooney PC

August 1, 2013

Pipeline Planning, Permitting,
Construction and Operation:
Introduction to the Regulatory
Scheme Affecting Production
and Midstream Operations in
Pennsylvania

2

Topics to be covered


Overview of regulatory programs
impacting upstream and midstream
natural gas operations in Pennsylvania


Pennsylvania Natural Diversity Index
(“PNDI”)


Recent Federal air regulations
impacting natural gas industry
development
planning


3

Pennsylvania Regulatory Overview


Primary Sources of Regulation:


58 Pa. Con. Stat.
§

2301 et seq. (“Act 13”)


25 Pa. Code Ch. 78


Other major sources:


Solid Waste Management Act, 35 Pa. Stat.
§

6018.101 et
seq.


Clean Streams Law, 35 Pa. Stat.
§

691.1 et seq.


Air Pollution Control Act, 35 Pa. Stat.
§

4006.1
et seq.


PADEP would also identify the Land Recycling and
Remediation Act,
35
Pa. Stat.
§§

6026.101
-
6026.909 (“Act 2”)

4

PNDI
-

Background


Pennsylvania Natural Diversity Index (PNDI)


Developed to assist PADEP in assessing/addressing
potential impacts to Threatened & Endangered (T&E)
Species


Clearances required for virtually any permit/any
construction project in Pennsylvania


Database managed by Pennsylvania Department of
Conservation of Natural Resources (DCNR)

5

PNDI
-

Authority


Identified authority for PNDI:


Federal


Statutes
:


Endangered
Species Act of
1973


16
U.S.C.
§§

1531
et
seq.


Regulations
:


50
CFR
§

17.11 (Endangered and threatened
wildlife)


50
CFR
§

17.12 (Endangered and threatened
plants)


50
CFR
§

17.95 (Critical Habitat
-

fish and
wildlife)


50
CFR Part 222 (General endangered and threatened
species)


50
CFR Part 226 (Designated critical
habitat)


50
CFR Part 402 (Interagency
Cooperation)


50
CFR Part 424 (Listing endangered and threatened species and
designating critical habitat
)

6

PNDI


Authority (Cont’d)


State


Statutes
:


Wild
Resources Conservation Act (administered by DCNR)
32
P.S.
§§

5301
et seq.
(Plants)
(
Section 5307


Wild Plant
Management)


Fish
and Boat Code (administered by the PFBC)
30
Pa. C.S.A.
§§

101
et seq.
(Fish, amphibians, reptiles and aquatic organisms)
(
Section 102


Definitions and Section 2305 Threatened and Endangered
Species)


Game
and Wildlife Code (administered by the PGC
) 34
Pa. C.S.A.
§§

101
et seq.
(Birds and mammals
) (
Section 102


Definitions and
Section 2167 Endangered or Threatened
Species)


2012
Oil and Gas Act, 58
Pa.C.S
. 3201
-
3274 (administered by DEP)
58
Pa.C.S
.
§

3215 (Well Location
Restrictions)


Regulations
:


DCNR 17
Pa. Code Chapter 45


Conservation of Pennsylvania Native
Wild Plants (
Plants)


PFBC58
Pa. Code Chapter 75


Endangered and Threatened Species
(Fish, amphibians, reptiles and aquatic
organisms)


PGC 58
Pa. Code Chapter 133


Wildlife Classification (Birds and
mammals
)



7

PNDI


Authority (Cont’d)


DEP


Mineral Resources


25
Pa. Code
§

77.126 (Criteria for permit approval or
denial)


25
Pa. Code
§

78.15 (Application
Requirements)


25
Pa. Code
§

86.37 (Criteria for permit approval or
denial)


25
Pa. Code
§

86.101 (
Definitions)


25
Pa. Code
§

86.102 (Areas where mining is prohibited or
limited)


25 Pa. Code
§

86.122 (Criteria for designing lands as unsuitable, fragile
lands)


25
Pa. Code
§

86.129 (Coal exploration on areas designated as
unsuitable for
mining)


25
Pa. Code
§§

87.50, 88.33, 89.74 and 90.18 (Fish and wildlife
resource information
.)


25
Pa. Code
§§

87.159, 88.133 and 88.221 (
Postmining

land use
.)


25
Pa. Code
§§

87.138, 89.65, 89.82 and 90.150 (Protection of fish,
wildlife and environmental values
.)


25
Pa. Code
§

87.84, 88.62 (Fish and wildlife protection and enhance
plant plans.)


25
Pa. Code
§

90.202 (General requirements.) (Siting coal refuse
disposal site.)

8

PNDI


Authority (Cont’d)


Waste Management, Environmental Cleanup and
Brownfields


25
Pa. Code
§

236.128 (Natural Resources
.)


25
Pa. Code
§

245.235 (Environmental assessment
.)


25
Pa. Code
§

250.1 (Definitions
.)


25
Pa. Code
§

250.311 (Evaluation of ecological receptors
.)


25
Pa. Code
§
269.a.50 (Environmental assessment considerations
.)


25
Pa. Code
§§

271.127, 287.127 (Environmental assessment
.)


25
Pa. Code
§§

271.127, 273.202, 275.202, 277.202, 279.202,
281.202, 283.202, 284.220, 284.320, 285.134, 287.127, 287.661
-
662,
288.202, 288.422, 288.522, 288.622, 289.422, 289.522, 293.202,
295.202, 297.202, 299.144, 299.153 and 299.158 (relating to siting
criteria)


25
Pa. Code
§

271.915 (Management practices.) (Sewage sludge
.)


25
Pa. Code
§

291.201 (General provisions.) (Land application of
residual waste.)


9

PNDI


Authority (Cont’d)


Water Resources


25 Pa. Code
§

71.21 (Content of official plans
.)


25
Pa. Code
§

92a.12 (Treatment
requirements.)


25
Pa. Code
§

93.4c (Implementation of
antidegradation

requirements
.)


25
Pa. Code
§

102.6 (Permit applications and fees
.)


25
Pa. Code
§

105.16 (Environmental, social and economic balancing
.)


25
Pa. Code
§

105.17 (Wetlands
.)


25
Pa. Code
§

105.381 (Location of dredging
.)


25
Pa. Code
§

105.401 (Permit
applications.)


10

PNDI
-

Agencies


Pennsylvania
Agencies


United
States Fish and Wildlife Service
(
USFWS)


Department
of Conservation of Natural
Resources (DCNR)


Pennsylvania
Game Commission (
PGC)


Pennsylvania
Fish and Boat Commission
(PFBC)

11

PNDI


Online Tool


DCNR
manages online PNDI t
ool
which
was built by the Pennsylvania Natural
Heritage Program (
PNHP)

http
://
www.gis.dcnr.state.pa.us/hgis
-
er/Login.aspx



12

PNDI
-

Status


PADEP PNDI Policy


PNDI
clearance duration


Extended from one
to two years


Online PNDI tool expanded from two to ten
miles


New DEP PNDI policy will
be concurrent
,
instead of
sequential,
permit & PNDI reviews


13

PNDI


Status (Cont’d)


Remaining
Concerns



Transparency of species data


Like playing “battleship”


Accountability
in governance process


14

PNDI

Current Process Flow Chart

15

PNDI


Search Receipts Lack Transparency


Typical PNDI Receipt



Species information unknown



Must send information into
agencies listed and wait for a
response.

16

PNDI


Final Thoughts


Economic Community Needs


To establish a uniform and transparent process for evaluating,
designating and protecting T&E species and their critical habitats
in PA


NOT just an O&G industry issue


Impacts anyone proposing to construct any type of facility in Pennsylvania

17

Air Regulations


NSPS OOOO


New Source Performance Standards, 40
CFR
§

60.5375(a)


Rule for “affected gas wells” (with certain
exceptions) as of 1/1/15:


(1) For the duration of
flowback
, route the recovered liquids into one or more storage
vessels or re
-
inject the recovered liquids into the well or another well, and
route the
recovered gas into a gas flow line

or collection system, re
-
inject the recovered gas
into the well or another well, use the recovered gas as an on
-
site fuel source, or use the
recovered gas for another useful purpose that a purchased fuel or raw material would
serve, with no direct release to the atmosphere. If this is infeasible, follow the
requirements in paragraph (a)(3) of this section.


(2)
All salable quality gas must be routed to the gas flow line as soon as
practicable
. In cases where
flowback

emissions cannot be directed to the flow line, you
must follow the requirements in paragraph (a)(3) of this section.


18

NSPS OOOO (Cont’d)


(3) You must capture and direct
flowback

emissions to a completion combustion device,
except in conditions that may result in a fire hazard or explosion, or where high heat
emissions from a completion combustion device may negatively impact tundra,
permafrost or waterways. Completion combustion devices must be equipped with a
reliable continuous ignition source over the duration of
flowback
.


(4) You have a general duty to safely maximize resource recovery and minimize
releases to the atmosphere during
flowback

and subsequent recovery
.


19

NSPS OOOO (Cont’d)


Generally assumes a pipeline is available
at or shortly after a well is hydraulically
fractured


Not necessarily so


midstream infrastructure
may lag behind


Bottom line: Likely will require a shift in
the way that pipeline planning occurs to
ensure pipeline availability/capacity

20

Megan E. Smith, Esq.

Buchanan Ingersoll & Rooney PC

One Oxford Centre

301 Grant Street, 20
th

Floor

Pittsburgh, PA 15219

Telephone: 412
-
392
-
1626

E
-
mail: megan.smith@bipc.com