Fracking in Pennsylvania

in Pennsylvania

Fiscal Budgets Pennsylvania state budget and finances Tax policy in Pennsylvania Finance Financial regulation in Pennsylvania Pensions Public pensions in Pennsylvania Pension health in Pennsylvania Civil liberties Affirmative action in Pennsylvania Campaign finance requirements in Pennsylvania Campaign finance requirements for Pennsylvania ballot measures Nonprofit regulation in Pennsylvania Education Charter schools in Pennsylvania Higher education in Pennsylvania Public education in Pennsylvania School choice in Pennsylvania Elections Ballot access Ballot access requirements for political candidates in Pennsylvania Ballot access requirements for political parties in Pennsylvania Political parties in Pennsylvania Ballot access requirements for presidential candidates in Pennsylvania Redistricting in Pennsylvania Voting in Pennsylvania Energy and Environment Energy policy in Pennsylvania Fracking in Pennsylvania Oil and gas extraction on federal land in Pennsylvania Endangered species in Pennsylvania Environmental policy in Pennsylvania Healthcare Healthcare policy in Pennsylvania Medicaid spending in Pennsylvania Effect of the Affordable Care Act in Pennsylvania Immigration Immigration in Pennsylvania

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Hydraulic fracturing, also known as fracking, is a method of oil and natural gas extraction that involves injecting fluid into subterranean rock formations at high pressure. According to the U.S. Energy Information Administration (EIA), there were approximately 23,000 hydraulically fractured wells in the United States in 2000. In 2015, the United States contained approximately 300,000 hydraulically fractured wells, which accounted for 67 percent of U.S. natural gas production and 51 percent of U.S. crude oil production. As of May 1, 2017, Pennsylvania had 129,587 active oil and gas wells of which 10,097 active wells—7.7 percent—were unconventional wells with hydraulic fracturing.^{[1][2][3][4][5]}

This article focuses on fracking in Pennsylvania and state-specific, rather than federal, regulation of the process. The article begins with general information about fracking as well as state-specific information about where fracking occurs, state laws and regulations covering fracking, and issues of political debate in the state. In addition, this article includes relevant oil and natural gas data for Pennsylvania and surrounding states.

See the sections below for further information on the following topics:

1. Background: This section provides general information about the fracking process, how it is regulated at the state level, and how federal laws apply to oil and gas operations.
2. Areas of activity: This section provides information (if available) on where fracking occurs in the state and the number of oil and gas wells with fracking operations.
3. State regulations: This section presents information on state-level laws and regulations as they relate to fracking and links to proposed legislation in the state legislature.
4. Political debate: This section outlines issues of political debate related to fracking in Pennsylvania.
5. Reserves: This section includes data on crude oil and natural gas reserves in Pennsylvania and surrounding states from the U.S. Energy Information Administration.
6. Production: This section includes data on all oil and natural gas production (which includes production with fracking operations) in Pennsylvania and surrounding states from the U.S. Energy Information Administration.
7. Wells: This section includes data on crude oil and natural gas wells, including but not limited to wells with fracking, in Pennsylvania and surrounding states from the U.S. Energy Information Administration.
8. Economic impact: This section outlines the nationwide economic impacts of fracking throughout the United States.
9. Environmental impact: This section outlines a discussion of the nationwide environmental impacts of fracking throughout the United States.

Fracking background[edit]

An overview of the fracking process (click to enlarge)

See also: Fracking

Hydraulic fracturing, also known as fracking, is a method of oil and natural gas extraction. The process involves injecting fluid into subterranean rock formations at high pressure. The high pressure fluid produces a fracture network that allows crude oil and natural gas inside dense rocks to flow into a wellbore and be extracted at the surface. The fluid (known as frac fluid) contains between 98 percent and 99.5 percent water and sand; between 0.5 percent and 2 percent of the fluid is composed of chemical additives, which are used to stop the growth of microorganisms, prevent well casing corrosion, increase the rate at which the fluid is injected, and reduce pressure, among other uses.^[6]

As of 2015, thirty-one states produced crude oil and 33 states produced natural gas. States have primary regulatory authority over fracking and regulate the location and spacing of wells, drilling methods, lining of wells, the process of fracking itself, plugging wells, waste disposal, and site reclamation. In some states, environmental regulatory agencies regulate fracking; in others, fracking is regulated by oil and gas commissions.^[7][8][9]

While states have primary regulatory authority over fracking, oil and gas operators must meet requirements in the following federal environmental and public health laws, among others:^[10]

• The Clean Air Act, which regulates air pollutants emitted during oil and gas production
• The Clean Water Act, which regulates all pollution discharges into surface waters and requires oil and gas operators to obtain permits to discharge produced water—fluids used during fracking as well as water that occurs naturally in oil or gas-bearing formations—into surface water.
• The Comprehensive Environmental Response, Compensation and Liability Act, which requires oil and gas operators to report the release of hazardous substances during oil and operations and allows the EPA to investigate hazardous substance releases and require operators to restore areas affected by hazardous spills.

Areas of activity[edit]

Pennsylvania overlies the Marcellus Shale, a sedimentary rock formation that spans from portions of Ohio and Virginia to upstate New York. The formation ranges in depth from zero feet below the Earth's surface to over 9,000 feet below the surface in northwestern and southwestern Pennsylvania, according to the U.S. Geological Survey. The formation contains multiple unconventional natural gas resources accessed through fracking. Additionally, Pennsylvania overlies the Utica Shale, a formation containing natural gas resources that sits 2,000 to 3,000 feet below the Marcellus Shale.^{[11][12][13][14][15]}

As of May 1, 2017, Pennsylvania had 129,587 active oil and gas wells of which 10,097 active wells—7.7 percent—were unconventional wells with hydraulic fracturing.^[16]

Map of the Marcellus Shale and producing wells Click to enlarge.

Map of the Utica shale Click to enlarge.

The map below shows all active unconventional oil and gas wells in the state as of December 2016, according to the Pennsylvania Department of Environmental Protection (click to enlarge). An interactive map of oil and natural gas activities in Pennsylvania from the Pennsylvania Department of Environmental Protection can be accessed here.

Active unconventional oil and natural gas wells in Pennsylvania (as of December 2016)

The map below shows unconventional well permits issued (in red) and unconventional wells drilled (in blue) in 2016, according to the Pennsylvania Department of Environmental Protection (click to enlarge). More information on the number of permits and wells drilled in Pennsylvania in 2016 can be accessed here.

Unconventional well permits issued and unconventional oil and gas wells drilled in 2016

State regulations[edit]

The Office of Oil and Gas Management within the Pennsylvania Department of Environmental Protection is responsible for regulating fracking in Pennsylvania. The office enforces regulations on the following:

• The reporting and disclosure of the types of fluids used in fracking and at what volume and a description of each chemical additive used in fracking
• The maximum amount of surface and injecting pressure used during the process
• Well safety
• All other information considered necessary for the regulation of fracking for safety and environmental protection

More detailed information on oil and gas rules and regulations can be found in Chapter 78 of the Pennsylvania Code.^[17]

As of March 2017, Pennsylvania regulations required fracking operators to complete and submit a list of chemicals used during the fracking process on the website FracFocus.org. Operators that consider a chemical or the concentration of a chemical to be a trade secret are allowed to withhold these chemicals from public disclosure and thus disclosure to potential competitors.^[18]

Act 13[edit]

In February 2012, the Pennsylvania State Legislature passed the Oil and Gas Act of 2012 (Act 13), which was signed by Gov. Tom Corbett (R). The act imposed a fee (known as an impact fee) on unconventional oil and gas wells. The revenue collected by impact fees are then distributed to state agencies, counties, and municipalities. This revenue is used to cover any local impacts from unconventional oil and gas production. Under the act, counties and municipalities were allowed to impose their own fees on unconventional wells within 60 days of the act's effective date.^[19]

In 2015, the state government, counties, and municipalities collected approximately $187.7 million in revenue from impact fees. Under state law, 60 percent of this revenue goes toward counties and municipalities—approximately $112.6 million in 2015—and 40 percent goes toward various state agencies—approximately $75 million in 2015. The charts below show the top receiving counties and municipalities in 2015 (click to enlarge).^[20]

Top counties and municipalities receiving revenue from impact fees levied on fracking, 2015 (Source: Pennsylvania Public Utilities Commission)

In September 2016, the Pennsylvania Supreme Court struck down portions of the law, which the court argued violated Article I, Section 27 of the Pennsylvania Constitution, which states that Pennsylvania residents have "a right to clean air, pure water, and to the preservation of the natural, scenic, historic and esthetic values of the environment." The court ruled against the following provisions:^[21][22][23]

• The court ruled that the original Act 13 violated the state constitution because it did not require state notification to private water users if a spill may affect their private water wells, though the act required state notification to public water users if a spill may affect public drinking water wells.
• Under the original 2012 act, doctors would have to sign a confidentiality agreement to access chemical information that is considered a trade secret by oil and gas companies. Doctors would likely seek this information in the event that a patient is exposed to a certain chemical used during fracking. The court ruled against this non-disclosure agreement provision.
• Under the original act, companies would be able to use eminent domain to obtain the remainder of a resident's property without providing compensation if the company already has a right to a majority of the land. The court ruled against this provision.

In December 2013, the state Supreme Court ruled that the act's provision on zoning rules was unconstitutional. The original 2012 act would prohibit localities from enacting zoning ordinances more restrictive than the act's requirements. Specifically, the act would require that local ordinances must permit oil and gas operations in all zoning districts. In addition, the act would allow the state government to preempt local zoning rules. The Pennsylvania Supreme Court struck down these provisions as unconstitutional.^[24][25]

Recent legislation[edit]

The following is a list of recent fracking policy bills that have been introduced in or passed by the Pennsylvania State Legislature. Click on the bill title for more information about each bill. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, then no legislation pertaining to this topic has been introduced in the legislature recently.

Political debate[edit]

Severance tax[edit]

In 2015, Gov. Tom Wolf (D) proposed a severance tax (a tax on the extraction of energy resources such as crude oil, natural gas, and coalbed methane) of 3.5 percent on the value of natural gas extracted and a 4.7-cent tax per thousand cubic feet of natural gas produced. Wolf argued in 2015 that the taxes would raise approximately $67 million in 2015-16 and $389 million in 2016-17 if enacted. In 2016, Wolf proposed a 6.5 percent on the value of natural gas extracted and eliminated the tax on the volume of natural gas produced. In February 2017, Wolf again proposed a 6.5 percent tax in his 2017 budget proposal, arguing that it would raise $293.8 million for the state in 2017-2018.^[26][27]

Proponents of the severance tax, such as the Pennsylvania Budget and Policy Center, which the organization describes is "a nonpartisan, statewide policy research project that provides independent, credible analysis on state tax, budget, and related policy matters," argue that oil and gas companies pay little to no state corporate tax given federal tax incentives and that instituting the tax would increase revenue for the state government, reduce the state's budget deficit, and raise revenue for funding K-12 public education. In addition, these proponents argue that the tax would not reduce the incentive to drill in Pennsylvania because the Marcellus/Utica shale regions in the state contain the lowest cost and largest natural gas deposits in the United States.^[28][29]

Opponents of the severance tax, such as the Pennsylvania Independent Oil and Gas Association, whose stated mission is to support "the responsible growth of Pennsylvania’s oil and natural gas industry by promoting an environment favorable to the success of the exploration and production, the transportation and the downstream end users of these energy resources," argue that a severance tax in Pennsylvania would reduce the state's competitiveness with Ohio and West Virginia because Pennsylvania had a higher corporate tax rate (9.99 percent) compared to West Virginia (6.5 percent) and Ohio (no state corporate tax) as of 2015. In addition, opponents argue that a severance tax would reduce potential investment in oil and gas production and thus reduce jobs and raise energy prices by making operations more costly.^[30][31]

Reserves[edit]

The information below shows proven crude oil and natural gas reserves in Pennsylvania and surrounding states from 2007 to 2015 according to the U.S. Energy Information Administration (EIA). The EIA defines proven (or proved) reserves as the "estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions." Proven reserve estimates vary over time as prices fluctuate, technology advances, and states or operators discover new resources. For example, the price of natural gas increased in 2013. This led to more natural gas production because it became more economical to extract natural gas and sell at a higher price. This price increase led the EIA to increase its estimates of proven natural gas reserves.^[32]

Production[edit]

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here. In addition, the section below provides information on all types of oil and gas production in the state, which includes wells that have not been hydraulically fractured.

The graph and table below provide information about crude oil production in Pennsylvania. Information from select surrounding states is provided for comparative purposes. Click the [Show] button on the table to expand it.^[33]

Crude oil production in Pennsylvania and neighboring states (2007-2016)

The graph and table below provide information about natural gas production in Pennsylvania. Information from select surrounding states is provided for comparative purposes. Click the [Show] button on the table to expand it.

Natural gas production in Pennsylvania and neighboring states (2007-2015)

Coalbed methane is natural gas (which is composed primarily of methane) that is formed in coal deposits or coal seams. Coalbed methane can be used in the same manner as natural gas. The table below shows coalbed methane production in Pennsylvania and neighboring states. Click the [Show] button to see the table.^[34][35][36]

Shale gas is natural gas located in shale plays, which are specific regions with natural gas resources. The table below shows shale gas production in Pennsylvania and neighboring states. Click the [Show] button to see the table.^[37][38]

Wells[edit]

The information below shows crude oil wells by state from 2000 to 2009 and natural gas wells by state from 2007 to 2015 from the U.S. Energy Information Administration (EIA). This data contains all wells, including wells that have not been hydraulically fractured. According to the EIA, "The quality and completeness of data is dependent on update lag times and the quality of individual state and commercial source databases." Click the [Show] buttons to expand the tables.

The bar graph and table present information about the number of crude oil wells in Pennsylvania. Information from select surrounding states is provided for comparative purposes.

Crude oil wells in Pennsylvania and neighboring states (2000-2009)

The bar graph and table below present information about the number of producing natural gas wells in Pennsylvania. Information from select surrounding states is provided for comparative purposes.

Producing natural gas wells in Pennsylvania and neighboring states (2007-2015)

Injection wells[edit]

The Energy Policy Act of 2005 revised the Safe Drinking Water Act (1974) to exclude “the underground injection of fluids or propping agents (other than diesel fuels) pursuant to fracking operations related to oil, gas, or geothermal production activities” from the EPA’s underground injection control program. These control programs are meant "to prevent underground injection which endangers drinking water sources." The 2005 act authorized state governments to regulate fracking as the process relates to underground drinking water sources, though state regulations must meet the minimum requirements outlined in federal laws that affect oil and gas wells, including the Clean Air Act (which regulates air pollutants emitted from oil and gas wells), the Clean Water Act (which regulates discharges of any pollutants into surface waters), and the Comprehensive Environmental Response, Compensation and Liability Act (which regulates the prevention and cleanup of released hazardous substances), among other laws.^[39][40]

To ensure drinking water quality, the EPA or authorized state agencies regulate Class II injection wells, which are underground shafts used to store salt water, carbon dioxide (CO₂), brine, and other fluids, to dispose of waste, and to enhance production during the oil and gas extraction process. These agencies set rules and issue permits outlining minimum safety requirements related to the construction, operation, maintenance, plugging, and abandonment of injection wells.^[41]

The table below shows the number of Class II (oil and gas) injection wells in Pennsylvania and surrounding states in 2015.

Economic impact[edit]

An aerial view of a fracking site (click to enlarge)

The section below includes a discussion of the nationwide, rather than state-specific, economic impact of fracking. The information below summarizes studies and other reports on the economic impact of fracking throughout in the United States, and links to the studies are provided below.

Brookings Institution study (2015)[edit]

A March 2015 study by the Brookings Institution, whose stated mission is "to conduct in-depth research that leads to new ideas for solving problems facing society at the local, national and global level," estimated that natural gas prices were 47 percent lower in 2013 than they would have been without an increase in fracking operations. Specifically, the study found that an increased natural gas supply attributed mainly to fracking had reduced gas prices by $3.45 per 1,000 cubic feet of gas. Further, the study's authors, Catherine Hausman and Ryan Kellog, argued that residential consumer gas bills decreased $13 billion per year between 2007 to 2013 due to fracking. Additionally, Hausman and Ryan argued that increased fracking operations outpaced data collection on the environmental impacts of fracking. The authors found that state regulators face uncertainty about how to focus on mitigating specific environmental concerns as a result. The complete study can be accessed here.

Congressional Budget Office study (2014)[edit]

In December 2014, the Congressional Budget Office (CBO), a federal office that provides budgetary information to Congress, published a study on the economic and budgetary effects of increased oil and natural gas production, including increased fracking use. The study's authors argued that natural gas costs in the year 2040 would be 70 percent higher without increased development of natural gas through fracking. The authors also found that gross domestic product (GDP) in the year 2020 would be 0.7 percent higher than it would have been without increased natural gas production and that GDP would be 0.9 percent higher by 2040. The study's authors concluded that federal tax revenues would be $35 billion higher in the year 2020 due to increased natural gas production. According to the CBO's report, the Marcellus Shale (which includes Pennsylvania, New York, and West Virginia) accounted for 25 percent of total recoverable shale gas followed by the Haynesville-Bossier Shale in Texas and Louisiana at 15 percent, the Eagle Ford Shale in Texas at 10 percent, and the Barnett Shale in Texas at 10 percent (as of December 2014). The CBO report also found that the Eagle Ford and Austin Chalk Shales (both in Texas) accounted for 40 percent of recoverable shale oil (crude oil found in shale formations) followed by the Bakken Shale in North Dakota and Montana at 20 percent (as of December 2014).^[42][43]

American Enterprise Institute study (2013)[edit]

A February 2013 study by Aparna Mathur and Kevin A. Hassett at the American Enterprise Institute, which describes itself as "a community of scholars and supporters committed to expanding liberty, increasing individual opportunity and strengthening free enterprise," found that direct economic benefits from increased gas production by fracking generated approximately $36 billion in economic activity in 2011 (multiplying total U.S. natural gas production of 8.5 trillion cubic feet of natural gas in 2011 by an average price of $4.24 per thousand cubic feet). The authors argued that this economic value could lead to higher employment in the gas production and delivery sectors. The complete study can be accessed here.

IHS study (2013)[edit]

A September 2013 study published by IHS, which describes itself as dedicated to "next-generation information, analytics and solutions to customers in business, finance and government," concluded that an increase in unconventional oil and natural gas production (production that uses technology such as fracking to force petroleum or gas from the ground and up through a well) increased disposable income per U.S. household by an average of $1,200 in the year 2012. The study's authors argued that this increased income came in the form of lower energy bills and lower costs for goods and services. Additionally, the study's authors said that up to 250,000 jobs could be created by the year 2020 due to fracking. The full study can be accessed here.^[44]

Environmental impact[edit]

Hydraulic fracturing operations in progress (click to enlarge)

The section below includes a discussion of the nationwide, rather than state-specific, environmental impacts (air, water, and seismic) of fracking. The information below summarizes studies and other reports on the environmental impact of fracking throughout in the United States, and links to the studies are provided below.

Air impacts[edit]

Given frequent changes in U.S. oil and gas operations nationwide, the types of energy extracted, the number of wells drilled during a given period, and varying regional factors, estimates on the nationwide impact of fracking on air quality are difficult to calculate. As with any type of energy production, steps during the process (extraction, transportation, and transportation) can produce air pollutants at varying levels depending on the level of operations in a particular area. Air pollution sources during fracking can include road and pipeline construction, well drilling and completion, and natural gas processing, transportation, and storage. The main pollutants released during the fracking process include volatile organic compounds (VOCs), nitrogen oxides, sulfur dioxide, and particulate matter. VOCs react with nitrogen oxides to produce ground-level ozone, also known as smog. These pollutants are regulated by the Environmental Protection Agency (EPA) and state agencies under the Clean Air Act.^[45][46][47]

Water impacts[edit]

A September 2015 study from researchers at Duke University found that fracking operators used approximately 250 billion gallons of water from 2005 to 2014 to extract oil and natural gas from hydraulically fracked wells. This accounted for less than 1 percent of total industrial water use in the United States. The study's authors argued, "While fracking an unconventional shale gas or oil well takes much more water than drilling a conventional oil or gas well, the study finds that compared to other energy extraction methods, fracking is less water-intensive in the long run." Further, the study's authors found that fracking operations produced approximately 210 billion gallons of wastewater. Specifically, the authors noted that hydraulically fracked oil wells produced half a barrel of wastewater for each barrel of oil produced. This is compared to a conventional oil well, which produced more than approximately three barrels of wastewater for each barrel of oil produced.^[48][49][50]

In December 2016, the Environmental Protection Agency (EPA) released a final report requested by Congress in 2010 on the impact of hydraulic fracturing (fracking) on drinking water resources. The EPA report stated that there was "scientific evidence that hydraulic fracturing activities can impact drinking water resources in the United States under some circumstances." Specifically, the EPA concluded that, in some circumstances, poorly constructed drilling wells and incorrect wastewater management affected drinking water resources, particularly near drilling sites. According to the report, effects on drinking water "ranged in severity, from temporary changes in water quality to contamination that made private drinking wells unusable." An earlier draft version of the report, released in June 2015, concluded that fracking had not resulted in any widespread or systemic impact on drinking water quality. That conclusion was deleted in the report's final version. The EPA concluded that its findings were limited in scope, reporting that "uncertainties and data gaps limited the EPA's ability to fully assess impacts to drinking water resources both locally and nationally."^[51][52][53]

For more information on the December 2016 study, see this article. The complete December 2016 study can be accessed here.

Seismic events[edit]

See also: Seismicity

The term induced seismicity (or induced seismology) refers to seismic events that occur at higher than normal rates due to human activity. Induced seismic events (e.g., smaller earthquakes and tremors) can be the result of mining, damming rivers, or injecting fluids into underground wells during fracking.^{[54][55][56][57][58]}

In 2014, the U.S. Geological Survey concluded the following:^[55][59][60]

In 2016, the U.S. Geological Survey found that wastewater disposal, rather than fracking, was the main cause of an increase in earthquakes throughout the central United States from 2009 to 2013. According to the agency, wastewater disposal wells raise pressure levels more than fracked wells. Larger amounts of fluid are used in wastewater disposal wells than in fracked wells; thus, wastewater disposal wells are more likely to produce induced seismic events than fracked wells.^[62][63]

A 2015 study by the Environmental Protection Agency (EPA) identified three factors needed for a disposal well to induce seismic activities: sufficient pressure buildup due to the disposing of fluids, a fault of concern (a fault that is significantly stressed), and a path allowing increased pressure to move from a well to a fault. According to the EPA, as of 2015 few disposals wells had produced earthquakes with a magnitude above 4 on the Richter scale (for comparison, an earthquake with a magnitude of 3 is similar to the passage of a nearby truck).^[64]

For more information on fracking and seismic activity, see this article.

Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms Pennsylvania fracking. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also[edit]

• 

  Energy policy in Pennsylvania

• 

  Fracking in the United States

• 

  Environmental policy in Pennsylvania

Footnotes[edit]