Well Fees: Drill, Baby, Drill
Charleston Gazette editorial
19 October 2010:
CHARLESTON, W.Va. -- As America attempts to reduce dependence on
foreign oil, U.S. drilling for natural gas is likely to blossom, and
West Virginia's economy will benefit.
The Mountain State already has 54,000 producing gas wells, more than
any other state except Texas -- and 3,000-plus new drilling permits are
issued each year. The state's oil-and-gas industry employs 20,600, more
than the coal industry by one count.
Development of high-cost wells in the deep Marcellus shale -- using
radical "horizontal drilling" in which shafts go straight down more
than a mile, then branch off sidewise in several directions -- is a hot
new field.
In view of this potential boom, it makes sense for the Kanawha County
Planning Commission to impose a small fee on new wells, to cover the
county's cost of supervising pollution problems.
Last week, the commission voted to collect a $100 fee for examining new
well site plans -- and the fee jumps to $400 for wells in flood plains.
Planning engineer John Luoni pointed out that the county has similar
fees for other types of construction.
Representatives of the drilling industry protested, saying drillers
already are regulated at the state level. But we think their complaints
should be ignored. Every industry howls about every governmental tab.
Conventional mile-deep wells cost between $300,000 to $400,000 to
drill, according to Marietta College engineering Chairman Bob Chase --
while horizontal-type Marcellus wells can cost $4 million to $5
million. Compared to this, a $100 county fee is minuscule.
The state Department of Environmental Protection is short-staffed, so
county help with pollution control is a welcome addition.
Drill, baby, drill. We hope West Virginia reaps new jobs and revenue
from the gas boom -- with full protection for natural beauty. Kanawha
County's new $100 fee is a tiny drop in the large bucket of the
oil-and-gas industry.