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On July 22, 2011, the Governor's Marcellus Shale Advisory Commission presented its final Report with numerous recommendations for environmental policy, legislative and regulatory reforms to address development of the Marcellus Shale in Pennsylvania. The Report addresses complex questions, the solutions to which cannot be fully understood until the various recommendations evolve into realities. Some recommendations are clearly beneficial to all stakeholders; others may have unintended consequences for industry as the cumulative impact of increased regulation will likely slow the pace of the development of natural gas in the Commonwealth.
The following recommendations are likely to be mutually beneficial to the natural gas industry, the public and the environment:
Other recommendations have the potential to impede the development of natural gas without providing significant environmental benefits if not implemented with careful consideration for the cumulative impacts of new regulation:
Other recommendations of note include:
We expect a variety of legislative and regulatory proposals to come forward in the coming weeks in response to the Commission's Report, including one legislative proposal from Representative Matthew Baker dated July 22, 2011. Any such legislation or regulation should be evaluated for unintended obstacles to the development of natural gas and unnecessary restrictions on the due process rights of owners and operators.
Our multi-disciplinary National Resources Group will summarize the Report's recommendations in the individual areas of land use, employment, business and litigation in coming issues of the Administrative Watch. In the meantime, if you have any questions regarding the Report and or any other oil and gas issues, please contact Kevin J. Garber at 412-394-5404 or kgarber@babstcalland.com or Jean M. Mosites at 412-394-6468 or jmosites@babstcalland.com.
Copyright 2011• Babst, Calland, Clements and Zomnir, P.C. • Two Gateway Center, Pittsburgh, PA 15222 • 412-394-5400 • Administrative Watch is privately distributed by Babst, Calland, Clements and Zomnir, P.C., for the general information of its clients, friends and readers. It is not designed to be, nor should it be considered or used as, the sole source of analyzing and resolving legal problems. If you have, or think you may have, a legal problem or issue relating to any of the matters discussed in the Administrative Watch, consult legal counsel.
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