Gas Industry Opposes Lawmakers' Plan for New Regs

Charleston Gazette
18 November 2010
By The Associated Press

MORGANTOWN, W.Va. (AP) - Two groups that represent natural gas drillers say permit fees a legislative subcommittee is proposing for Marcellus shale wells could discourage or even cripple the fast-growing industry.

The West Virginia Oil and Natural Gas Association and the state's Independent Oil & Gas Association also object to proposed restrictions on drilling locations that they believe are based on opinion and speculation, not science.

A 90-page draft bill presented to a joint judiciary subcommittee this week would impose four permit fees ranging from $5,000 to $15,000 per well, plus individual performance bonds of $25,000 per well.

Charlie Burd of the independent association says those amounts would hurt small operators the most and could potentially shut down the industry.