WV ISSUES 'GUIDANCE' FOR NATURAL GAS DRILLERS

(01/16/2010)

Some new guidance for the oil and gas industry was announced this week by the state Department of Environmental Protection. The new regulations are designed to better manage water use and disposal by the oil and gas industry when drilling in the Marcellus Shale formation. West Virginia is a primary state for the development of wells in the Marcellus Shale. The field has been calculated to contain 500 trillion cubic feet of gas. "Because of the public interest in the industry practice, the agency sought public comment on the guidance, even though it is not required to do so for such a document," the DEP said this week. The DEP says the policy "addresses the need for well operators to be diligent about protecting the state's waters," addressing the disposal of drilling fluids. "The operator must thoroughly plan for this situation," the document says. "Once wells are drilled and completed, thousands of barrels of this fluid may need treatment and disposal. Currently there are limited options, all of which may involve some time constraints for authorization or implementation." Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association, said, "We have had the opportunity to look at the guidance document. We support it. We certainly appreciate the DEP's confidence in the industry. Chemicals used in drilling operations and the disposal of water from the drilling process have become hot topics in some states.

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