Pa. state rep. proposes $2M raise on drilling bonds
Monday, September 19, 2016
Pennsylvania State Representative Thomas Murt recently proposed the state bond for horizontal shale wells be raised to $2 million per well, according to Kallanish Energy.
The current maximum bond required is $4,000 to $10,000 per well, depending on the length of the well. The $2 million figure would be added to the present bond requirements.
Murt’s proposal, House Bill 2277, would also allow for a blanket bond equal to 20 percent of the total bond the company would have to pay for its individual wells. Current blanket bonds that cover all of a company’s well are capped at between $35,000 and $600,000.
The Marcellus Shale Coalition trade group immediately called Murt’s proposal misguided, while the Pennsylvania Environmental Council has yet to take a position.
Learn more: Kallanish Energy > PA legislator wants $2M drilling bond per horizontal well
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.