User:MattMMarkulin/Hydraulic fracturing in Pennsylvania

General Fracking Overview
The boom in gas and oil may seem like a great concept, and the idea of a completely energy independent United States has many salivating, but in relation to this process there are manny, many cons to go along with the pros. Fracking is a heavily debated topic in Washington right now, due to the environmental risks involved, as well as the legislation involved with oil production. It is also debated among many scholarly journals, blogs, and people all over the United States, as well as foreign countries, primarily Europe. In all, fracking is very controversial, primarily due to the fact that much of the process is not widely know, and there is no telling how the process of fracking can, or does affect us. There is also a large unknown of how the economy is affected, and how the large production of energy now will affect us heading into the future. The topic has many supporters on both sides with many facts supporting their claims, which leads to the discussion of the pros of fracking in relation to the United States’ energy independence, economy, as well as other issues that show how fracking does not deserve the reputation it has. Today in the United States, oil and gas production is up fifty percent since 2008, and shale gas output has risen from two percent to forty-four percent (Yergin, 2013). This spike in gas production is also at the highest levels in sixteen years (Burnett, 2013). At this point in time the United States has produced more oil than we have imported (Bell, 2014). America is also predicted to pass Saudi Arabia in oil production within the next decade (Bell, 2104). The United States has also reduced importation of oil from sixty percent, to thirty-five percent, which is what it was in 1973, when Richard Nixon promised energy independence in ten years (Yergin, 2013). This trend in oil production has lead America to a point where our future of energy independence is based purely how much our industry can churn out in a day, month, and year. As mentioned before America is on the verge of passing Saudi Arabia in oil production, but what is not widely known is we are already passing some OPEC(Organization of Petroleum Exporting Countries) nations in oil production. One OPEC nation America has surpassed is the nation of Nigeria (Yergin, 2013). America has also gotten to a point where we are third in the world when it comes to oil production, and we are producing more oil than what we can use (Yegin, 2013). Oil and gas production according to some experts, is predicted to continue to rise through 2016, then flatten off (Gold, 2014). But, other estimates have shown that this rise can last till at least 2040 (Gold, 2014). So, what does this mean? Well, toady America is as stated before is producing more oil than it is importing, sixty-eight million more barrels to be exact (Lorenzetti, 2014). Imports of oil are falling fast, and in 2104 we imported 27.4 billion dollars in oil, the lowest since November of 2010 (Lorenzetti, 2104). This has also driven down the United States trade deficit in fuel to 14.7 billion the lowest since May 2009 (Lorenzetti, 2014).This coupled with the fact that American production is on the rise means that we could achieve close to energy independence in the fore-seeable future, due to the fact that complete energy independence is unachievable for any nation, let alone America, due to us importing thirty-five percent of our oil. There is also a whole world of possibility when it comes to the shale hiding under the United Sates. There is estimated to be more than 516 trillion cubic feet of gas and oil in one of the largest shale deposits in the United States, that being the Marcellus reserve (Burnett, 2013). Just the area between New York and West Virginia alone of this Marcellus deposit could contain more than the estimated 516 trillion cubic feet (Burnett, 2013). Also, if this just ten percent of this 516 trillion cubic feet is collected, there would be enough energy to satisfy two years ofUnited Sates energy consumption. This increase in production, as well as large reserve of shale, does lead to a more efficient, as well as better off economy, due to the job creation, and by being less dependent on foreign oil America can reallocate money used to import oil to other items, such as new energy sources. As stated above the process of frracking has also lead to some major, major economic changes, in addition to a less of reliance on foreign oil. According to a source fracking, and the increase in energy prodcution has led to narrowing of the trade gap by seven percent to 41.5 billion from May’s 44.7 billion (Lorenzetti, 2104). Fracking has also created many jobs, as well as opportunities for workers. There is an estimated 2.1 million jobs created out of the oil boom of 2012, and there is a predicted rise to 3.3 million jobs by 2020 (Yergin, 2013). There was also an additional seventy-four billion dollars in federal and state revenues in the United Sates during 2012 (Yergin, 2013). This in turn also led to an increase of 1,200 dollars in average household disposable income, due to cut energy costs. This increase in oil production from fracking has also allowed unemployment rates to fall, where shale is being tapped into. This is shown well by North Dakota, which has lowest unemployment rate in the nation at 3.1 percent in 2013 (Furman & Sperling, 2013). As mentioned before, the trade deficit has fallen due to oil, and the overall economy has improved ever since the oil boom began. Pennsylvania needs to capitalize on this invaluable resource.

PA Fracking Laws and Facts
In Pennsylvania there has been 350,000 oil and gas wells drilled, as well as supporting 211,000 jobs. Gas Producers have also invested over $4 billion dollars in Pennsylvania. (http://pennsylvaniafracking.com/) In 1956 Pennsylvania began to regulate oil and natural gas through many different laws. The industry is regulated regulated through the Clean Streams Law, the Dam Safety and Encroachments Act, the Solid Waste Management Act, the Water Resources Planning Act, and the Worker and Community Right to Know Act. (http://pennsylvaniafracking.com/).

Act 13
On February 8, 2012, the Pennsylvania General Assembly passed Act 13, which was signed into law on February 14, 2012 by Governor Tom Corbett after much debate surrounding a severance tax and a per-well fee. Act 13 overhauled Pennsylvania's oil and gas laws and instituted an impact fee on gas wells. The impact fee applies to all unconventional natural gas wells, with the fee decreasing as the well ages. Act 13 outlines as to how the impact fee is to be spent, with a majority of the funds being distributed to local governments in order to cover the impacts of hydraulic fracturing, as well as portions of the funds going to state agencies involved in regulating drilling and to the Marcellus Legacy Fund, which is spread out around the state for various environmental and infrastructure projects. Since its passage, Act 13 has been at the center of legal battles, pitting local governments and environmental groups against the Corbett Administration. The central issue of these cases was to decide who would decide how to zone oil and development.

Robinson Township v. Commonwealth of Pennsylvania
On December 19, 2013, the Pennsylvania Supreme Court ruled in a 4-2 decision, that certain portions of Act 13 were unconstitutional. The Court struck down sections of the law that called for statewide rules on oil and gas to overrule local zoning rules and which required municipalities to allow oil and gas development in all zoning areas. The Pennsylvania Supreme Court cited the reasoning behind their ruling on the basis that these provisions violated the Environmental Rights Amendment of the Pennsylvania State Constitution, which guarantees that all Pennsylvanians are provided with clean air, water, and the preservation of the environment. The Pennsylvania Supreme Court also found the medical gag order section of Act 13 unconstitutional, as the Pennsylvania Supreme Court said that the statute gave the natural gas industry special treatment.

Severance Tax
Pennsylvania remains the only major gas-producing state without a severance tax on natural gas drilling. In 2009, the Pennsylvania House of Representatives passed a severance tax on natural gas drilling, but the legislation was defeated in the Pennsylvania State Senate. With the implementation of an impact fee under Act 13 in 2012, debate surrounding a severance tax subsided. Governor Tom Wolf made enacting a severance tax on natural gas a central part of his campaign in 2014, making a push for a severance tax in his budget addresses as governor. Governor Wolf has stated that his planned severance tax would be sensitive to the natural gas market and would assist in funding education. Those in support of a severance tax have cited the influence of gas industry lobbyists as the reason behind the lack of a severance tax in Pennsylvania. The gas industry has spent $7.7 million on campaign contributions since 2007, and $3.7 million on lobbying in 2017. Supporters of a severance tax have also cited the decline in revenue from the impact fee as a reason for the need for a severance tax. . Opponents of a severance tax state that if a severance tax were implemented, it would stop energy independence in the state and slow the growth of jobs in the natural gas industry.

Regulations on Hydraulic Fracturing in Pennsylvania
Various regulations on hydraulic fracturing exist in Pennsylvania. The Oil and Gas Act of 2012 requires that operators of unconventional wells complete the chemical disclosure registry form and post the form to the Chemical Disclosure Registry web site to report the chemicals used in the hydraulic fracturing process. The Pennsylvania Department of Environmental Protection requires applicants for a well permit to identify a potentially impacted public resource and notify the appropriate public resource agency. The regulations also ban the use of temporary waste storage pits at unconventional well sites as well as outline rules for operator responses to spills and releases. These regulations also require pipeline companies to develop Preparedness, Prevention, and Contingency Plans when performing directional boring under a waterway in efforts to minimize impacts on water. Oil and gas regulations in Pennsylvania also require permits for well drilling and operation, waste disposal, road use, pits and impoundments, wastewater discharges, water use, stream and wetland impacts, air emissions, and erosion and sedimentation.