Maryland finally proposed a strategy to regulate unconventional natural gas exploration and production on Nov. 25. The question quickly moved from what was taking so long to whether it went too far.
The draft final report issued by the state recommended that drilling the Marcellus shale in Garrett and Allegany counties be permitted-as long as stringent, comprehensive best practices are followed.
"We're committed to ensuring that Marylanders have access to the economic opportunities associated with [hydraulic fracturing] while also putting the most complete practices into place to ensure the highest level of protection for Maryland residents," Gov. Martin O'Malley (D) said.
Maryland Petroleum Council Executive Director Drew Cobbs confirmed that the Free State would have the most stringent drilling and fracing rules if the proposals are adopted. "They reviewed other states' rules, but also developed their own best practices that haven't been tested or proven," he told OGJ on Dec. 1.
The report strikes the right balance, according to Maryland Department of the Environment Sec. Robert M. Summers. "With these highly protective standards, and working with local governments to maximize investment opportunities and review Comprehensive Gas Development Plans (CGDP), Maryland is better positioned to manage this new frontier in energy development," he said.
The requirement for any gas well drilling applicant to submit such a plan covering at least 5 years of activity first is only one difference between Maryland's and other states' approaches. Approval of such a plan would be a prerequisite for filing a drilling permit application.
"I don't think this is mandatory anywhere else, although submitting one in some states speeds permit processing," said Cobbs. "This is something the advisory commission came up with on its own."
Years of monitoring
In addition to following the approved CGDP, applicants would have to use a construction and operation plan that meets or exceeds "enumerated controls." It would have to include an environmental assessment and 2 years of monitoring near the well site to establish background conditions.
"They didn't discuss whether the industry could comply with all these requirements," Cobbs said. "It never was considered, although the commission's one member from the oil and gas industry kept asking questions."
The good news is that the proposals were delayed so long that they can't become final before Republican Larry Hogan, who apparently has more favorable views toward unconventional gas development, becomes governor in January. Cobbs said that in their current form, the proposals effectively place 83% of Garrett County off-limits.
"They're taking a critical look at all these new regulations," he told OGJ. "We hope that the new administration will listen more closely to all parties' views."
