American Oil and Gas Reporter - October 2017 - 16

IndustryDigest
underscore this administration's
commitment to both environmental and
economic security."
According to DOE, projects selected
will fall under two areas of interest:
* Scaling of carbon capture
technologies to engineering scales
using existing host-site infrastructure-
for which it will bestow as many as
four awards totaling as much as $30
million; and
* Initial engineering, testing and
design for a commercial-scale, postcombustion CO2 capture system-with
as many as two awards and combined
DOE funding as great as $6 million.
The department indicates the
projects will undertake engineeringscale testing of transformational
solvent- or membrane-based CO2capture technologies, and will conduct
design work for a commercial-scale,
post-combustion CO2-capture system at
an existing coal-fueled generating unit.
❒

DOE Seeks To Quicken
LNG Export Approvals
WASHINGTON-The U.S.
Department of Energy has released a
proposed rule that it says will allow for
faster approval of small-scale natural gas
exports, including liquefied natural gas,
from U.S. facilities. Under the proposal,
DOE would impose two conditions on
an export authorization to any country
with which the United States has not
signed a free trade agreement.
Under the proposed rule, exports
would be approved for volumes smaller
than 140 million cubic feet a day, and
with projects that qualify for a
categorical exclusion for an
environmental impact statement or
environmental assessment under
National Environmental Policy Act
regulations.
According to the Sept. 1 Federal
Register notice, DOE describes the
proposed rule as an effort to expedite its
processing of export applications, thereby
reducing administrative burdens for the
small-scale natural gas export market.
The agency says those exports are
sent to counties in the Caribbean,
Central America and South America
that typically don't generate enough
natural gas demand to support the
economies of scale required to justify
16 THE AMERICAN OIL & GAS REPORTER

large import volumes through
conventional LNG tankers.
For applications to export gas to
countries without a qualifying free trade
agreement, DOE says it is required to
conduct a public interest review before
it authorizes an export. Under this
proposed rule, the exports are
considered small scale and deemed to
be in the public interest. As such, the
department will grant the application
after those two conditions are satisfied.
Under the Natural Gas Act, gas exports
to free-trade-agreement countries
automatically are deemed in the public
interest.
"If adopted, this proposed rule would
not affect either existing DOE
authorizations or DOE's evaluation of
any non-FTA application that does not
meet the criteria for small-scale natural
gas exports. In expediting the
application and approval process for
these exports, DOE recognizes the
unique characteristics and minimal
adverse impacts of the small-scale
natural gas market emerging primarily
in the United States, the Caribbean,
Central America and South America,"
the Federal Register notice states. ❒

DRBC Moves Toward
Banning Fracturing In
Delaware River Basin
PITTSBURGH-The Delaware River
Basin Commission in September took
the first step toward permanently banning horizontal drilling and hydraulic
fracturing in the approximately 14,000
square-mile Delaware River Basin when
it voted 3-1-1 to direct DRBC staff to
draft proposed regulations.
Representatives of New York Governor Andrew Cuomo, Pennsylvania Governor Tom Wolf and Delaware Governor
John Carney-all Democrats-voted for
the measure. An officer for the U.S.
Army Corps of Engineers, who represented the federal government, voted
no, while Republican New Jersey Governor Chris Christie's representative abstained.
According to published reports, the
draft regulations will prohibit the use of
horizontal drilling and hydraulic fracturing in the basin, but will provide for the
"safe and protective storage, treatment
and disposal" of drilling and fracturing
wastewater from outside the basin. The

DRBC is expected to publish draft regulations on or before Nov. 30.
Reports note the DRBC imposed a
moratorium on drilling and fracturing in
the river basin in 2010 while its staff developed regulations. But a year later,
those reports say, the commission canceled a vote on draft rules that would
have allowed drilling and fracturing.
The moratorium has been in place since.
Industry organizations criticized the
vote. "We don't believe the DRBC has
jurisdiction over natural gas production
activity in the first place, so we believe
the long-standing de facto moratorium
is unlawful and the so-called 'fracking'
ban regulation likewise would be unlawful," declares Kevin Moody, vice
president and general counsel for the
Pennsylvania Independent Oil & Gas
Association. "At least this action reveals
the disingenuousness of the DRBC's
position in litigation by landowners
against the moratorium that it hasn't
made a final decision to ban hydraulic
fracturing with horizontal drilling and
related activities."
The Marcellus Shale Coalition, in a
letter to Governor Wolf that also was
signed by Pennsylvania Chamber of
Business and Industry President and
Chief Executive Officer Gene Barr,
points out that since New York has
banned high-volume hydraulic fracturing, and New Jersey and Delaware lack
shale gas resources, the ban effectively
only impacts Pennsylvania. Wayne and
Pike counties in eastern Pennsylvania
are considered prospective for the Marcellus Shale.
MSC notes that Pennsylvania has updated its regulations covering well construction and casing, surface activities
and other aspects of natural gas development, all of which would be applicable to any development within the
Delaware River Basin. The coalition
further observes that Pennsylvania's
regulatory framework has received excellent reviews from STRONGER
(State Review of Oil and Natural Gas
Environmental Regulations) Inc.
Additionally, MSC says three studies
by the Susquehanna River Basin Commission, of which Pennsylvania also is a
member, have shown no correlation between shale gas development and watershed impairment.
"Given the comprehensive regulatory
scheme in place in Pennsylvania and the
scientific analysis borne of more than a



American Oil and Gas Reporter - October 2017

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

Contents
American Oil and Gas Reporter - October 2017 - 1
American Oil and Gas Reporter - October 2017 - 2
American Oil and Gas Reporter - October 2017 - 3
American Oil and Gas Reporter - October 2017 - Contents
American Oil and Gas Reporter - October 2017 - 5
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