DONNA

additional

the

industry Relevant

the

The

competing

revenue

drastic less, by

under difficulties

excess

While

‘status significantly rulemaking,

Permit

Under

current

Re:

Dear Environmental

Harrisburg, The

We PD.

16°’

E-mail:

an 6310)

cost

department’s

are

Oil

Floor

Honorable

it

Box

Chairman

HARRISBURG

Harrisburg

this

Toll-Free:

CAUCUS

additional

Web:

review

state

of

quo’

IEGI5LATIVE

delays

is

Proposed

$5,000

Phone:(i17)

writing

OBERLANDER,

Review

of

and

annually,

accounts doberlanpahousegop.com

-

Statutory

2063

110

our

$15

Rachel

proposal

overseeing

for

RepOberlandercom

faced

PA

law,

increase,

which

Gas

in

days.

understanding

1

times

capital

million

SECRETARY

in

PA

-l88-497-5

to

to

Quality

Patrick

McDonnell;

17105-2063

Thneframes

recent

the

Act

prior

$12,500. 17120-2063

772-9908

by

15

for

Carson

share

Rulemaking:

oil

will

OFFICE: would

-

DISTRICT

Authority

have

It

department

days

the

approximately

investmcnt

requires

and

meaning

the

in

is

merely

McDonnell,

years

100

Board

with

years,

MEMBER

permit

industry.

inconceivable

oil State

drastically

improved

for

gas

you

and

that

will

a

that

maintain

program

Office

that

despite

fees

specific,

Unconventional

must

and

our

gas

last

not

While

any

nuøe

Chairman

no

in

on

60%

job increase

comments

industry.

year

Building

review

resurface.

2018,

additional

permit

the

few

Commonwealth

that

a

budget.

creation.

permits

of compelling

status

shale

the

a

the

pci-mit

there

permit

the

permit

of

It

fee

average

August

and

workload

quo

is

gas

The

This

application Well

U

can

efficiencies

Representu1thez

charged

amsurg

our

are

concerns

applications

industry.

applications

that

fee reason.

-

department

be

of

understanding

funding

no Permit

K

10,

review

Pennsylvania

applied

increase

currently

of

assurances

2018 by

.

fee

the

regarding

However,

or

the

Fee

time

inequity

for

department,

improvement

for

within

coming

has

department

of

Increase

lags

an

for

and

150%,

that,

that

referred

unconventional

the

behind

the

an

45

is

received

the

while

into

above-referenced

unconventional

only

days,

totaling

review

it

bear

circumstances

to

to

contributes

the

other

the

exacerbated

review

unless

this

160

in

a

department

timeframes

unconventional

DISTRICT

nearly

South

Phone:

reasonable

Phone:

many

states

Fax:

Fax:(724)354-2896

309

permit

Eldenon,PA

well

the

times

Saltwork

(814)

Second

(814)

(724)

in

permit

C

$15

1?

well

states

,,

with

review

V

proposed

which

excess

fee

OFFICES:

226-1614

by

226-9000

354-3500

will

Ave.,

have

million

due

relationship

15736

Street

permit

which

increase

imposing

in

from

led is

Suite

natural

be

“1

of

a

to

increased

extended

week

realized

99%

to

C

the

we

in

market

was

such

as

new

gas

are

an

of

to

or

in a

the

to

subsequent Based and recommendation which

on look Competitiveness program

a current rule provide signed General

survey Under allocation funding Moreover, certainly the More

is administered We permit Page Proposed

fees, department It responsibility

from strongly

The

shale

is

unacceptable.

do

a

highest

are

recognize

appropriate

on

Honorable

General

pad,

at

which

the

2

an

importantly,

on

the

receive

fee

by

of

four

gas

the

therefore

$5,000

a

to

adequate

from

Act recommend

Fund

but

our do

Rulemaking:

other

stable,

the

Regulatory in

bear

support

it

Commonwealth’s

permit,

in

permit

intends

are

adjacent

its

is

not

this

13

by

own

the Assembly

upon

governor

some

its

the

our

fee

and

highly

Patrick

shale-gas

a

base

that

natural

When

the

predictable

that

reasonable

completely

nation,

support

also

current

with

and

comparison,

significant

applications

the

we

is

while

understanding

to

one

Impact

level

some department,

budget.

states

already

the

that

Review

includes set

fair

do

costs

volatile

crafting

McDonnell

Other Unconventional

provides

gas

segment

yet

two

General

allows

department

producing

these

not

of

any

comparison.

the of

—

impact

of

Fee

relationship

another

annual

General

irrelevant

two

the

these

states

believe

economic

financial

Act,

States

department

depending

increase

overseeing

review

on

Act

dollars

it

Support

highest

of

nearly

for

such

is

of

Fund

that

a

funds

agencies

fee

(Colorado industry.

clear

13,

funding

well

which

states

distinction

re-evaluate

Fund

that

the

the

of

as

aside

in

to

the challenges

appropriation.

competitiveness.

in

Well

$140

in

to

pad

well that

help

the

the

on

this

the

department

department

the

with

supplement

the

(New

support.

General

the

the

stream

are

either

the

The

water,

oil

are

Permit

Pennsylvania’s

stalutory

million

statutorily growing

site support

and

nation

permit

cost

which

that

required

current

and

its

$5,000).

York

department’s

construction

New

currently

to

Assembly

to

The

budgeting to

waste,

signifies

Fee

gas

add

(West

in

does

Pennsylvania

the

supplement

This

costs

oversee

to

and

natural

authority

a

Mexico)

economic

budget

unencumbered

program’s

mandated

Increase

to

However,

reasonable

new

Many

oil

propose

Maryland)

not

air,

would

consider

Virginia

faced

of

and

proposed

Pennsylvania

expressly

staff

approach

gas

the

intend

and

radiation

current

this

recently

other

granted

charge

gas

the be

health

shale

industry.

by

consideration.

stormwater

or

in basic

such

is

segment

the

amount

charges

program. consistent

to

revenue

the

states

expand

have

its

competing

permit

approach

General

nothing.

and intended gas

negative

include

approved

to

protection

analysis,

of

operating

a

conventional

is

the

prohibited

the

These

industry.

charge

disproportionate

include

of

S

not

of

policy

application

from

10,000

management

Environmental

industry.

with

the

its

Fund

ignores

the

open implications

to

for

DEP

the

funds by

budget.

$6

several

and

one-time

provide

the

costs

initiatives.

nearly

capital industry.

the

department

for

million

shale

dollars

for

should

oil

$6

mining

were

the

It

General

the

fee

to

business.

and

hundred million

is

Instead,

every

gas

a

investment

mandate

controls;

run

permit

first our

of$12,500

to

portion

also

share

annual

have of

Quality

However,

gas

This

programs,

development

the

a

its

chose

Assembly

other

well

proposcd intended

impact

industry

included

the

dollars

In

department.

application

oil

of

approach

that

allocation

of

fact,

Board

permit

program

in

only

and

funding

will

we

such

fee

order

all

for

the

to

and

and

a

gas

to

be

by

do

of a The Honorable Patrick McDonnell Proposed Rulemaking: Unconventional Well Permit Fee Increase Page 3

At a time when Pennsylvania is already losing the competitive race for capital investment to states like Texas and New Mexico, where regulalory and tax climates are stable and therefore return on investment opportunities more predictable, it is impossible to conclude anything except that this proposal will worsen the economic and competitive climate of Pennsylvania. This proposal, combined with a broader agenda of over-regulating and micro-managing the industry’s operations, sends a chilling message to anyone contemplating investment in Pennsylvania.

Conclusion

We recognize the need for the department to have adequate staff and resources necessary to meet its statutory obligations. However, the proposed permit fee increase is unwarranted and is unsupported by the statutory authority afforded to the department. We strongly urge the department to reconsider this proposal and instead utilize General Fund dollars already available to the agency to help support the oil and gas program.

Additionally, the $6 million impact fee allocation to the department should be utilized as intended by the General Assembly. Consideration of these steps will significantly alleviate, if not fully address, the need to levy such a significant permit fee increase on an industry that still lags far behind other basins across the country.

Thank you for your consideration of these comments.

Sincerely,

Donna Oberlander Gas & Oil Caucus Chair State Representative 63rd Legislative District 17at1’ Legislative District Aaron Bemsilne State Representative State Rcprcsentafive 0th Legislative District 6th Legislative District

Cutler Clinton Owlett Representative State Representative 100th Legislative District 68th Legislative District The Honorable Patrick McDonnell Proposed Rulemaking: Unconventional Well Permit Fee Increase Page 4

Cit Dush State Representative State Representative 66th Legislative District 41h Legislative District /é%C øP Dave Reed, Majority Leader State Representative State Representative 91St Legislative District 62Hd Legislative District

Dawn Keefer Eric Nelson State Representative State Representative 92’ Legislative District 57 Legislative District

Fred Keller GarthQflEverett State Representative State Representative 85th Legislative District 841h Legislative District

George Dunbar Jeff Pyle State Representative State Representative 5eh Legislative District 60th Legislative District

Jeff Wheeland John Maher State Representative State Representative g3rd Legislative District 40t1) Legislative District

Mike The

Kurt State

Jonathan Page

R. Proposed

Martin State

64th State

59th State 67th

State

State Seth 1071h

196th

l

Lee

Honorable

Legislative

Legislative Legislative

Grove

Masser

5

Representative

Representative

Representative Representative

Representative

Legislative

Legislative Legislative

Reese

Representative

James

Causer

Rulemaking:

Fritz

Patrick

District

District

District

District District

District

McDonnell

Unconventional

Well Permit

44th 65th

Mark

State

Parke Matthew

State State

State Stephen 53rd Kathy

Robert 5l State

State

I99

I

2Sa Fee

7th

ft

Legislative

Legislative

Legislative

Legislative

Legislative

Increase

Representative

Representative

Representative

Representative

Representative

Legislative

Mustia Representative

Wentling

Rapp

Godshall

Bloom

Dowling

District

District

District

District

District

tJat.a District The Honorable Patrick McDonnell Proposed Rulemaking; Unconventional Well Permit Fee Increase Page 6

Timo y O’Neal State Representative State Representative 48th Legislative District 12th Legislative District cc: Honorable Michael Turzai, Speaker Honorable , Appropriations Chair

DO:kz