CUMBERLAND — A great economic development opportunity for Garrett and Allegany counties, and the state of Maryland, will be at stake if a draft study is adopted by a commission examining drilling for natural gas in Marcellus shale formations, said Allegany County Commissioner Bill Valentine.
“From what I see, the state wants to make (drilling) so restrictive that they’ll never come in,” Valentine said.
The draft report includes a proposal shifting the burden of proof for civil liability in accidents and damages that could be related to Marcellus shale drilling.
Valentine is a member of the Marcellus Shale Advisory Commission appointed by Gov. Martin O’Malley, that met last week in Garrett County.
While the draft report is labeled “for discussion purposes only,” Valentine said in his mind it’s where the majority of the commission seems to be headed.
“If there are any problems, the presumption is the driller is guilty,” said Valentine. “I would think there would be constitutional issues,” with that approach, he said.
The language is contained on page 22 of the draft report, which is available online at the link below.
“The law could provide that, if the parties fail to agree, the permittee would be strictly liable to the resident, landowner or business for damage caused by the activity,” the draft study reads.
There are somewhat similar laws related to coal mining, although in those cases, the presumption is rebuttable, according to the draft study.
Special laws aren’t needed to address environmental concerns related to drilling.
“We’ve already got the laws on the books,” Valentine said.
Allegany County Commissioner Creade Brodie Jr. is also concerned about the situation.
“I ran on it in my campaign. We have potentially the biggest economic windfall to Allegany County in a long time. It’s happening all around us; if we wait a couple of years, it will be too late,” Brodie said. “I don’t understand this … in these economic times,” he said.
“A lot of it has not been thoroughly discussed,” Valentine said. The first draft recommendations are due Dec. 31, and the December meeting is now planned as a conference call. That idea doesn’t sit well with Valentine. The shale commission plans to present recommendations on legislation to tax drilling and establish liability standards by the end of the year.
Recommendations on best practices for natural gas exploration and production are to be delivered by Aug. 1, 2012, and a final report including environmental impacts of drilling is to be issued by Aug. 1, 2014.
“These meetings are supposed to be open to the public. How do you make a conference call open to the public?” Valentine asked. Besides, the last meeting lasted 4 1/2 hours.
Another point of contention is that the draft report includes language advocating laws essentially telling counties how to spend the money they receive from mineral severance taxes.
The report advocates putting the revenue into a special fund to build the counties’ human and physical capital and also aid those adversely affected by gas drilling.
Valentine was also concerned that the commission voted to eliminate its goals statement on page six of the draft study, which included ensuring that “the citizens of Maryland, especially those most impacted by the industry, receive significant benefits from gas production.”
The vote on eliminating the goals was nine to six, Valentine said. This was supposed to be a study, but “most people have already made up their minds,” he said.
If the process continues to drag on, potential natural gas developers will conclude “it’s not worth it to us and move on,” Valentine said.
Marcellus shale formations throughout the eastern United States harbor large untapped natural gas resources. The total value of the natural gas in Allegany County’s Marcellus shale could be close to $15.72 billion, with the average well earning $65,000 to $524,000 yearly, University of Maryland Extension staff has said.
In order to get the gas trapped in Marcellus shale to the surface, chemicals, water and sand are pumped underground to break apart rock formations and free the gas.
To view the draft study, visit: http://www.mde.state.md.us/programs/Land/mining/marcellus/Pages/upcoming_meetings.aspx
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