May 8, 2011

Secretary Krancer before House Environmental Committee on 5.3 Minority Chairman Bud George cited confusion and reports that continue to come forth.  He said members should look at this as an opportunity to save people from faulty operational oversight.  He’s not against drilling but he’s against ruining water.  He asked Chairman Hutchinson when the committee will be taking up bills to protect the environment. Chairman Scott Hutchinson congratulated the Secretary on his Senate confirmation. Secretary Krancer gave an overview of his priority list.  He noted that his legal, policy, budget, legislative and press are priorities.  He said he has individuals in all of those on board.  He would like to see their legislative relationships with the General Assembly enriched.  He noted that DEP needs to combat misinformation with sound science based information.  On the topic of bad science he cited the Cornell University report on the carbon footprint of gas which overstated emissions by 75%.  EDF.  Krancer also cited an April 16 report by the House Democrats at the federal level on fracing fluid calling it unconscionable and stating that it totally misstated the facts. The Secretary said he is about halfway thru meeting with all of his employees.  He noted one conversation with a geologist who said that she was spending 20 hours a week managing loan documents citing solar.  Krancer said that in the discussion with her he believes she should be doing geology work which is what she was hired to do.  He said the DEP will be more efficient when personnel are focused on doing the jobs they were hired to do. Krancer then moved to attacks on the agency and DEP personnel.  He said 4 permit writers were being accused of dereliction and the information was leaked by a lawyer litigating a case against the former administration.  He noted that there is much more to the process than the permit issued and that the lawyer misrepresented the facts.  Krancer realizes criticism is part of the job description for him but noted it is not for his employees. He also noted that they are being attacked by the EPA in that a transcript was given to the NY Times by a freedom of information act request.  He said that he was surprised that this information made it to the paper within 10 days. He went on to say that there are rumors floating around from EPA that DEP doesn’t know what they are doing.  He said he found that curious given the praise from the head of the EPA water group in the not too distant past. He said he works with 2600 of the most competent and best folks at DEP.  He works for a former prosecutor and his message to Krancer to be an enforcer. He noted that agency has already been tough.  They shut down 2 operations within a day because of water concerns, one Marcellus and one not.  Krancer read a letter of thanks from the Galeton Water Authority, Potter County thanking the DEP for their swift action.  The second was to ask the operators to stop sending wastewater to facilities.  Industry responded within 28 hours to comply. Krancer then turned to the media accounts of Notice Of Violations and field activity by the inspectors do in the field.  He said inspectors were never under an order to clear NOVs with him.  He is focusing on consistency and will continue to do so. With regard to the recent Bradford County well failure, Krancer said DEP issued an NOV before Good Friday and have received the information they requested.  He said he wants to know why it took so long to get the well capped?  He noted that Chesapeake is in a stand down and the inspectors have confirmed that they have stopped production and are taking steps to prevent a repeat. Krancer said that with regard to Marcellus Shale it his job is to protect the water.  He realizes the economic impact and the ability to wean ourselves off of foreign energy sources.  He’s seen thousands of jobs created.  It is clearly transformational and a game changer.  It is clear that gas could be the fuel of the 21^st century. He thinks the permit writing can be done better and is looking for ideas on that.  He noted that some permit writing for the northeast is being done in the northwest. Q & A: Democrat Chairman Bud George said he and the Secretary have known each other for years and he appreciates his openness.  George said he assumes the department has put in a regulation to stop wastewater from being discharged.  Secretary Krancer said the Total Dissolved Solids regulations did establish rules but it grandfathered some treatment facilities.  The Chairman noted a situation in York where sludge has been discharged.  Krancer said if there is illegal activity something will be done about it. George then asked Krancer if he would he be supportive of a bill that would give a pre-drill survey to test the water supply to determine its pre-drill condition.  Krancer said he would have to look at the language before he could respond. Representative Bryan Barbin said he agreed that there are bad studies and bad articles. He said there are good scientific studies that have come out.  He cited Carnegie Mellon studies and asked if the DEP is looking into it and making recommendations. Krancer said last week they did exactly what Barbin is suggesting and that was to ask drillers to stop sending wastewater to facilities and the drillers did.  He said he expects that the levels of Bromide to reduce and they will be watching that.     Tax doesn’t directly equate to environmental protection.  People are trying to get answers and DEP’s resources are limited.  Krancer corrected saying they don’t have to furlough.  Budget doesn’t impact DEP the way prior budgets have and the Marcellus Shale oversight is self-funded by permitting and other fees. Representative Garth Everett thanked Krancer for his visits to sites noting in his area there are treatment plants that treat the water until it becomes distilled water and unfortunately it is still classified as remedial waste.  Everett said the DEP staff has been very supportive of representatives as they have had town meetings.  Krancer noted that he has visited those facilities and will do so again. Everett asked if the penalties in the Oil & Gas Act are commensurate with the penalties in other laws and asked if the penalties should be looked at. Krancer said that penalties ought to be increased. Representative Stephen Bloom cited overreaching by the EPA and asked how they can push back. Secretary Krancer said they do see a newly aggressive EPA and cited that his predecessor agrees.  He said the need to remind the EPA that they have a good program and that HR 87 is a good message to be sending. Representative Greg Vitali cited previous testimony by Krancer that enforcement is “adequate” and that in light of gas company profits it should be better than adequate.  He noted he has been in Everett’s district and the facilities but remains concerned that the DEP personnel are spread too thin.  He said the Commowealth has TDS regulations & Well Standard regulations and asked why we can’t have excellent enforcement instead of adequate?  Krancer said he would not agree with the marginally adequate charactization.  Krancer noted Vitali has a penchant for talking about the industry profits and said that enforcement should be rigorous and is. Krancer said the legislature should not take an approach to enforcement based on a company’s balance sheet.  Vitali said he still believes that there is not enough enforcement and Krancer said they would agree to disagree. Krancer said the furloughs are in the flood control program and have not occurred and they are working to minimize those. Representative Randy Vulakovich noted that as soon as there is an article on frac water in the media the phone calls come to his office.  He asked if we know which facilities are going to stop taking the water.  Krancer said he will supply a list.  Vulakovich asked what are the options when a company cannot take water to the treatment facilities what do they do with it?  Krancer said the Eureka facility in Williamsport treats it to distilled state.  He also said there are companies that treat it onsite noting that one company that made a presentation to the Advisory Commission last week.  Krancer said the actual water withdrawals for shale are dramatically less than other uses.  Representative Matt Gabler cited that Oil & Gas fees come from permitting fees and that the fees have been increased and that the program is self-funded and that as the number of permits have increased the available funding will as well. He asked if we have enough protection in place for drinking water (public water supplies) and is there more that should be done?  Krancer said we have good programs and protections in place and he is receptive to ideas for improvement. Representative Mike Carroll asked about the Secretary’s comments that permits from the northeast are being considered in the northwest.  The Secretary said he is looking at the issue.  Representative Rick Saccone talked about the Demagoguery regarding enforcement and asked how we compare to other states.  Krancer took strong objections to the assertion that our regulations are not up to snuff citing well casing regulations that were recently updated.