American Oil and Gas Reporter - October 2017 - 105

University in 1982 and went to work for
the Kansas Department of Health and
Environment's Oil and Gas Division. In
1984, he was made officer in charge of
the combined KDHE and KCC oil and
gas divisions. Korf became District III
supervisor when the KDHE turned over
its oil and gas responsibilities to the KCC
in 1986, and served in that position until

his retirement.
Noting this was the first time EKOGA
had so recognized a state regulator, Regulatory Chairman David Bleakley praised
Korf's fair-handed approach and reasonable enforcement of regulations, along
with his long tenure.
Among his accomplishments, Bleakley cited Korf for helping to push forward

the state's orphan well plugging funds,
implementing land farming, and for
gaining approval from the U.S. Environmental Protection Agency for operators to use alternate methods to conduct
mechanical integrity tests on injection
wells, such as the fluid depression test,
radioactive tracer survey and temperature
anomaly log.

New York Faces Two New Challenges
HAMBURG, N.Y.-New York has a
history of anti-oil-and-gas regulations
and legislation, including its ban on highvolume hydraulic fracturing operations.
Brad Gill, executive director of the Independent Oil & Gas Association of New
York, says evidence suggests that streak
is likely to continue.
"On the regulatory side, we are just
getting hammered by both the Public
Service Commission and Department of
Environmental Conservation with enforcement of regulations," Gill reports.
"Some of the rules have been on the
books for years, but admittedly were not
always enforced."
Meanwhile, he observes, proceedings
in the 2017 New York State Assembly
pose their own challenges.
"I just learned of proposed legislation
that essentially would give state legislators
final approval for rate increases by gas
and electric utilities," Gill mentions. "Legislators are saying it would provide an
extra layer of protection for consumers,
but it does not appear to replace the
PSC's role."
Looming Cost Increases
According to Gill, DEC's Division of
Air Resources is in the pre-proposal and
pre-public comment stages for new air
quality regulations, he says. Under the
proposal, operators would be required to
conduct routine leak detection surveys,
invest in leak detection equipment, such
as optical imaging equipment, and keep
records on those inspections. Those regulations are scheduled to be implemented
by year-end 2018.
"This will be devastating-especially
to smaller operators- unless the industry
has enough input to keep the impact of
these proposed regulations in check," Gill
warns. "The association will have its
work cut out for it over the next couple
of months."
DEC is scheduled to hold a series of
webinars in October to roll out the proposal, Gill says, followed by meetings to
be held across the state. "The division
will invite public comment. The anti-de-

velopment community will be out in full
force, fully supporting these and other
stricter air regulations," he predicts. "The
division has to develop control technique
guidelines, and those largely are based
on the U.S. Environmental Protection
Agency's new source performance standards and Quad O regulations, which we
have been dealing with for years."
Gill points out the state agency's
actions come even as EPA pulls back on
some of its regulatory actions, including
rescinding the methane information collection request (AOGR, April 2017, pg.
25). He adds that DEC has reached out
to IOGA NY, seeking industry comment
on the proposal.
"DEC is wondering what it can do to
make this workable for industry," Gill
says. "The association's concern is that if
operators simply get a request for leak detection and remediation, they will not
know what to do. There must be a check
box or table that operators could refer to."
DEC is very receptive to industry
input, but those regulators know they
will be hearing from anti-development
groups on this proposal, Gill says. He
points out because of low levels of industry
activity in the state, IOGA NY is in no
position to expend the financial resources
on this matter as it did on earlier issues.
"This does not have nearly the scope
or magnitude of the supplemental generic
environmental impact statement issue the
association faced before, where it spent
a fortune fighting that. But, these are
new air regulations that will have to be
addressed," Gill reports. "I don't think
the association will have the luxury of
having a consulting firm review the comments or provide inputs. But we are very
appreciative that the DEC has reached
out to us for our input, as we have advocated for a stakeholder voice early in the
rule-making process in past issues, and
now we have that opportunity."
Utility Legislation
IOGA NY also is preparing to deal
with proposed legislation that seeks to
upend how the PSC oversees utilities in

the state, Gill says.
Senator Jim Tedisco, R-Glenville, has
introduced the Ratepayer Protection Act,
S 6869, with Assemblyman Anglo
Santabarbara, D-Schenectady, sponsoring
a companion bill, A 8666, in the Assembly.
According to the state legislative website,
the bills would require legislators to ratify
any decision on utility rate increases or
decreases.
Tedisco's office says National Grid is
seeking a delivery charge rate increase
of 17.5 percent for electricity and 20.5
percent for natural gas, right after receiving
an 11 percent increase for electricity customers and 12.5 percent jump in residential
gas service. His office points out that
New Yorkers pay the seventh-highest energy costs in the nation.
"Right now, the PSC has jurisdiction
over this decision. They are not elected
representatives. We are," Tedisco says.
"It's appropriate that we keep the commission's oversight of these rate requests
to give us recommendations, facts and
justifications. However, it's imperative
that we pass the Ratepayers Protection
Act, so as accountable elected representatives, the state legislature will have the
final say with ratification of any rate hike
or reduction."
According to the bill summary, a utility
could not change any rates or charges
without the consent of both the Senate
and Assembly. Utilities must submit a
report to the legislature at least 180 days
before the planned increase. That report
must include justification for the increase
and information on the utility's financial
condition.
"I don't think it has a prayer of going
anywhere, but this bill is interesting,"
Gill says. "The bill doesn't replace the
commission's role, but it sure sounds like
it would take precedent over anything
coming out of the PSC. I don't like the
legislature having final say over anything
regarding the oil and gas industry. The
PSC, if nothing else, certainly understands
the oil and gas industry, and understands
the utility side of the business. But, the
legislature?"
❒
OCTOBER 2017 105

American Oil and Gas Reporter - October 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2017