New Energy Duties:
It makes sense for the PUC to deal with drilling
Pittsburgh Post-Gazette
14 February 2012
There's a lot wrong with the new state law regulating the
Marcellus Shale gas drilling industry, but lawmakers got one thing
right: putting oversight in the hands of Pennsylvania's Public
Utility Commission.
Since 1937, this regulatory body has been charged with balancing
the needs of consumers and state utilities with the goals of
reliable service and reasonable rates. Its jurisdiction includes
electricity, natural gas, telecommunications, water and truck and
rail safety. It seems logical to add the growing deep-well
drilling activities to the PUC's purview.
Under the law passed last week, the PUC will be responsible for
keeping track of the number of wells, making sure they meet
regulatory standards, collecting the fees associated with their
operation and deciding when municipal ordinances don't comply with
state standards.
The most controversial task on that list will be determining which
local rules are consistent with state regulation. Although we
think the law goes too far -- we'd rather see local officials
retain authority to make zoning-like decisions regarding wells,
such as where they can be situated, how far they must be from
homes, schools or businesses -- the PUC seems suited to this
responsibility. The agency has legal expertise, with a staff of
administrative law judges who handle disputes. However, it will
need to add expertise in municipal law to its resume.
Its five members are appointed by the governor and confirmed by
the Senate, meaning the governor's office usually controls the
majority. However, because members have staggered, five-year
terms, there is no wholesale change in membership when a new
governor takes office. The PUC is not known as a highly partisan
body.
As to the collection of well fees, however, we think that work is
misplaced in the PUC. The Revenue Department is suited to this
duty and already performs it in many regards. Creating a separate
bureaucracy at the PUC for collecting what are akin to taxes is
unnecessary duplication.