Our analysis of data collected and reported by PADEP between 2008 and 2011 found the following:
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1 Risky Business: An Analysis of Marcellus Shale Gas Drilling Violations in Pennsylvania Erika Staaf, PennEnvironment Research & Policy Center February 2012 Marcellus Shale gas drilling is expanding rapidly across Pennsylvania. With it, drilling companies regularly continue to violate Pennsylvania s cornerstone environmental laws laws that aim to protect the Commonwealth s natural heritage and the public s health. In the worst scenarios, such as a 2011 Chesapeake Appalachia liquid storage tank explosion in Avella, Washington County 1 or a 2011 Chesapeake Energy well blowout in Bradford County, these violations threaten the surrounding environment and can put human health and safety at risk. 2 Others put surrounding ecosystems at risk, such as a 2010 Anadarko E&P Company LP drilling mud spill at a drilling site in Sproul State Forest. 3 Using records obtained by the Pennsylvania Department of Environmental Protection (PADEP), the PennEnvironment Research and Policy Center identified a total of 3,355 violations of environmental laws by 64 different Marcellus Shale gas drilling companies between January 1, 2008 and December 31, Of these violations, the PennEnvironment Research and Policy Center identified 2,392 violations that likely posed a direct threat to our environment and were not reporting or paperwork violations. Moreover, the PennEnvironment Research and Policy Center believes these numbers offer a conservative view of environmental violations taking place across the Commonwealth by Marcellus Shale gas drilling companies. This data only includes violations discovered by PADEP s enforcement staff. Yet based upon the number of wells drilled and limited PADEP enforcement staff, further violations that have gone undetected are likely. Our analysis of data collected and reported by PADEP between 2008 and 2011 found the following: The greatest numbers of environmental violations were related to improper erosion and sedimentation plans: 625 (26% of all violations likely to impact the environment). The 1 3 Injured In Washington Co. Gas Well Blast. WPXI. February 24, Gas Drilling Emergency in Bradford County. Jim Hamill and Sarah Buynovksy. WNEP. April 20, Spill in state forest moves gas drilling moratorium debate. Robert Swift. The Times Tribune. March 30,
2 second greatest number involved faulty pollution prevention techniques: 550 (23% of violations likely to impact the environment). The top five operators for total number of violations were, in order, Cabot Oil and Gas Corp. with 412; Chesapeake Appalachia, LLC with 393; Chief Oil and Gas, LLC with 313; Talisman Energy USA, Inc. with 303; and East Resources, Inc. with 170. The top five operators for average number of violations per well drilled were, in order, Guardian Exploration, LLC with an average of 11 violations per well drilled; AB Resources PA, LLC with 9; JW Operating Co. with 5.3; Flatirons Development, LLC with 4.67 and Novus Operating, LLC with Between 2008 and 2011, on average, Pennsylvania saw more than two violations per day uncovered by PADEP, roughly 1.5 of which had the greatest potential to impact the environment. PennEnvironment Research and Policy Center identified 963 violations (29% of all violations) that seemed less likely to directly endanger the environment or the safety of communities. This report focuses on the violations that have the greatest potential for directly impacting the Commonwealth s environment. This analysis demonstrates that Marcellus Shale gas drilling companies are either unable or unwilling to comply with basic environmental laws that have been put in place to protect the health and environment of Pennsylvanians. This points to a need for state leaders to halt additional shale gas extraction through all legally viable means until and unless gas operators can prove the practice is safe for the environment and public health. Until that happens, PennEnvironment Research and Policy Center believes the following policy handles must be implemented in order to stop the rampant rate of environmental violations that drilling companies commit in Pennsylvania each year. Increase mandatory minimum penalties for polluters that violate our environmental laws. There must be stronger incentives to protect our environment and the public s health. Update and increase the bonding requirements for gas drilling companies in order to cover the full cost of completing a gas well. This must include preparing for worst case scenarios and accidents as well as the potential long-term environmental effects from Marcellus Shale gas drilling. Pennsylvania s taxpayers should not be left footing the bill for an expensive BP-like disaster related to gas drilling in the Commonwealth, or an expensive legacy of pollution similar to that left by coal mining. Put areas that supply our drinking water, critical wildlife habitat and ecosystems, and our state forests and other public lands completely off limits to drilling. All private well owners within a half-mile of a drilling site should be notified prior to the submittal of a drilling permit application. Every private well owner should be given the opportunity to have their well water tested at the expense of the industry, not the land owner or taxpayers, prior to application. Increase funding to PADEP and other state agencies to ensure they can properly enforce our environmental and public health laws. This enforcement should include: o Implementing more regular inspection of all drilling sites, especially at critical times (when wells are being sealed, for example); and o An inspection of erosion and sedimentation controls and plans prior to the start of any drilling. 2
3 Figure 1 Environmental Violations by Category Improper Erosion and Sedimentation Plan (26%) 625 Faulty Pollution Prevention (23%) Improper Waste Management (14%) 307 Pollution/Discharge of Industrial Waste (13%) 207 Improper Construction of Wastewater Impoundment 131 Violation of PA Clean Streams Law (5%) 86 Improper Well Casing Construction (3%) 70 Permitting Violations (3%) 41 Improper Restoration of Site (2%) Safety Violation (1%) Failure to Restore After Pollution (<1%) Blow Out Prevention (<1%)
4 Pennsylvania Violations by Operator and Year Table 1 Operator Marcellus Wells Drilled Violations CABOT OIL & GAS CORP CHESAPEAKE APPALACHIA LLC CHIEF OIL & GAS LLC TALISMAN ENERGY USA INC EAST RESOURCES INC RANGE RESOURCES APPALACHIA LLC XTO ENERGY INC ANADARKO E&P CO LP ULTRA RESOURCES INC SENECA RESOURCES CORP PA GEN ENERGY CO LLC WILLIAMS PRODUCTION APPALACHIA LLC EOG RESOURCES INC ATLAS RESOURCES LLC J W OPERATING CO SOUTHWESTERN ENERGY PROD CO CARRIZO (MARCELLUS) LLC EXCO RESOURCES PA INC EQT PRODUCTION CO CITRUS ENERGY CORP SWEPI LP NOVUS OPERATING LLC ENERGY CORP OF AMER EXCO RESOURCES PA LLC EAST RESOURCES MGMT LLC ALTA OPR CO LLC RICE DRILLING B LLC PHILLIPS EXPLORATION INC REX ENERGY OPERATING CORPORATION TURM OIL INC STONE ENERGY CORP PENN VIRGINIA OIL & GAS CORP
5 MDS ENERGY LTD FLATIRONS DEVELOPMENT LLC CHEVRON APPALACHIA LLC TRIANA ENERGY LLC GUARDIAN EXPLORATION LLC CNX GAS CO LLC TANGLEWOOD EXPL LLC AB RESOURCES PA LLC ANTERO RESOURCES APPALACHIAN CORP HESS CORP SAMSON RES CO BLX INC ATLAS RESOURCES INC BURKLAND WILLIAM S ENERPLUS RES (USA) CORP SM ENERGY CO SNYDER BROS INC CARRIZO OIL & GAS INC BURNETT OIL CO INC ALPHA SHALE RES LP CONSOL GAS CO BAKER GAS INC BELDEN & BLAKE CORP GREAT PLAINS OPER LLC DBA GREAT MTN PATRIOT EXPLORATION CORP VICTORY ENERGY CORP ANSCHUTZ EXPLORATION CORP WILLIAM MCINTIRE COAL OIL & GAS LONGFELLOW ENERGY LP VISTA OPR INC DL RESOURCES INC POWER GAS MKT & TRANS INC (UNKNOWN) AMER OIL AND GAS LLC 1 0 ENCANA OIL AND GAS USA INC 2 0 HUNT MARCELLUS OPERATING CO 7 0 LLC MARATHON OIL CO 2 0 MTN V OIL & GAS CORP 1 0 5
6 NORTHEAST NATURAL ENERGY LLC 3 0 PDC MOUNTAINER LLC 1 0 TRUE OIL LLC 2 0 TOTAL ,273 1,178 4,596 3,355 Pennsylvania Violations per Well Drilled Table 2 Marcellus Operator Wells Drilled Violations Violations/ Well Drilled GUARDIAN EXPLORATION LLC AB RESOURCES PA LLC J W OPERATING CO FLATIRONS DEVELOPMENT LLC NOVUS OPERATING LLC CARRIZO OIL & GAS INC XTO ENERGY INC ANTERO RESOURCES APPALACHIAN CORP HESS CORP SAMSON RES CO ULTRA RESOURCES INC CHIEF OIL & GAS LLC STONE ENERGY CORP BELDEN & BLAKE CORP GREAT PLAINS OPER LLC DBA GREAT MTN PATRIOT EXPLORATION CORP CABOT OIL & GAS CORP CITRUS ENERGY CORP PENN VIRGINIA OIL & GAS CORP ENERPLUS RES (USA) CORP SM ENERGY CO RICE DRILLING B LLC PA GEN ENERGY CO LLC WILLIAM MCINTIRE COAL OIL & GAS EXCO RESOURCES PA INC MDS ENERGY LTD TANGLEWOOD EXPL LLC
7 SENECA RESOURCES CORP PHILLIPS EXPLORATION INC CARRIZO (MARCELLUS) LLC BURNETT OIL CO INC EXCO RESOURCES PA LLC SOUTHWESTERN ENERGY PROD CO TRIANA ENERGY LLC CHESAPEAKE APPALACHIA LLC WILLIAMS PRODUCTION APPALACHIA LLC ANADARKO E&P CO LP ENERGY CORP OF AMER TALISMAN ENERGY USA INC LONGFELLOW ENERGY LP VISTA OPR INC BLX INC EOG RESOURCES INC RANGE RESOURCES APPALACHIA LLC SWEPI LP ALPHA SHALE RES LP REX ENERGY OPERATING CORPORATION EQT PRODUCTION CO ATLAS RESOURCES LLC CHEVRON APPALACHIA LLC CNX GAS CO LLC EAST RESOURCES MGMT LLC SNYDER BROS INC CONSOL GAS CO AMER OIL AND GAS LLC ENCANA OIL AND GAS USA INC HUNT MARCELLUS OPERATING CO LLC MARATHON OIL CO MTN V OIL & GAS CORP NORTHEAST NATURAL ENERGY LLC PDC MOUNTAINER LLC TRUE OIL LLC EAST RESOURCES INC ALTA OPR CO LLC 0 29 TURM OIL INC 0 17 ATLAS RESOURCES INC 0 7 BURKLAND WILLIAM S 0 6 7
8 BAKER GAS INC 0 3 VICTORY ENERGY CORP 0 2 ANSCHUTZ EXPLORATION CORP 0 2 DL RESOURCES INC 0 1 POWER GAS MKT & TRANS INC 0 1 (UNKNOWN) 0 1 TOTAL 4,596 3,355 8
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