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1 
August 
28, 
2014 
Secretary 
E. 
Christopher 
Abruzzo 
Pennsylvania 
Department 
of 
Environmental 
Protection 
400 
Market 
Street 
Harrisburg, 
PA 
17101 
Cc: 
Scott 
Perry, 
Deputy 
Director, 
Office 
of 
Oil 
and 
Gas 
Management, 
PADEP 
Eugene 
A. 
DePasqualie, 
Pennsylvania 
Auditor 
General 
Dear 
Secretary 
Abruzzo: 
As 
representatives 
of 
environmental 
and 
citizens 
organizations, 
we 
are 
writing 
with 
regard 
to 
the 
Special 
Performance 
Audit 
titled 
DEP’s 
performance 
in 
monitoring 
potential 
impacts 
to 
water 
quality 
from 
shale 
gas 
development, 
2009-­‐2012, 
issued 
on 
July 
22 
by 
Auditor 
General 
(AG) 
Eugene 
A. 
DePasquale, 
Pennsylvania 
Department 
of 
the 
Auditor 
General 
(hereafter 
the 
“Performance 
Audit”). 
We 
are 
very 
concerned 
about 
the 
flaws 
in 
the 
Department 
of 
Environmental 
Protection’s 
(DEP) 
programs 
that 
were 
exposed 
in 
the 
Performance 
Audit. 
As 
you 
are 
surely 
aware, 
Earthworks 
recently 
detailed 
similar 
problems 
in 
a 
comprehensive, 
site-­‐by-­‐site 
analysis 
of 
how 
DEP 
permits 
and 
oversees 
gas 
and 
oil 
operations, 
captured 
in 
a 
report 
released 
on 
August 
7, 
Blackout 
in 
the 
Gas 
Patch: 
How 
Pennsylvania 
Residents 
are 
Kept 
in 
the 
Dark 
on 
Health 
and 
Enforcement 
(hereafter 
the 
“Blackout 
report”). 
It 
is 
perplexing 
that 
DEP 
rejected 
all 
of 
the 
eight 
key 
findings 
in 
the 
Performance 
Audit—while 
simultaneously 
agreeing 
with 
all 
or 
parts 
of 
22 
of 
the 
29 
related 
recommendations. 
As 
detailed 
below, 
DEP 
has 
neglected 
to 
address 
specific 
issues 
raised 
in 
both 
the 
Performance 
Audit 
and 
the 
Blackout 
Report. 
We 
ask 
that 
DEP 
explains 
how 
and 
when 
it 
plans 
to 
do 
so— 
particularly 
in 
light 
of 
the 
Department’s 
statements 
in 
response 
to 
the 
Performance 
Audit 
that, 
“To 
a 
great 
extent, 
the 
audit 
report 
reflects 
how 
the 
Oil 
and 
Gas 
Program 
formerly 
operated, 
not 
how 
the 
program 
currently 
functions.” 
As 
you 
know, 
our 
organizations 
have 
met 
with 
DEP 
staff 
regularly 
for 
more 
than 
a 
year 
to 
discuss 
impacts 
from 
oil 
and 
gas 
operations 
on 
water 
quality, 
with 
the 
goals 
of 
bringing 
information 
to 
the 
Department 
on 
behalf 
of 
affected 
communities 
and 
learning 
more 
about 
DEP 
policies 
and 
perspectives. 
The 
Performance 
Audit 
and 
the 
Blackout 
report 
examine 
many 
of 
the 
issues 
explored 
at 
these 
meetings 
and 
verify 
the 
concerns 
we 
have 
raised. 
In 
the 
same 
vein 
of 
collaboration 
and 
dialogue 
with 
which 
we 
have 
approached 
these 
meetings, 
we 
offer 
the 
following 
comments 
on 
DEP’s 
formal 
responses 
to 
the 
Performance 
Audit. 
We 
hope 
this 
will 
help 
facilitate 
swift 
action 
by 
DEP 
to 
solve 
and 
prevent 
environmental 
and 
health 
impacts 
associated 
with 
oil 
and 
gas 
operations, 
and 
to 
be 
more 
responsive 
to 
the 
public 
it 
serves. 
1. 
DEP 
communications 
with 
impacted 
citizens 
are 
neither 
clear 
nor 
timely. 
DEP 
refutes 
this 
point 
(Finding 
Two 
in 
the 
Performance 
Audit) 
on 
the 
basis 
that 
the 
AG 
only 
examined 
isolated 
examples 
that 
are 
not 
representative 
of 
DEP’s 
overall 
performance 
in 
communicating 
the 
results 
of 
investigations 
to 
affected 
residents. 
However, 
DEP 
does 
not 
offer 
any 
data 
or 
documents 
to 
support 
the 
assertion 
that 
its 
overall 
performance 
is 
different 
than 
what 
the 
AG 
has 
found. 
It 
is 
highly 
possible 
that 
none 
actually 
exist.
A 
2013 
investigation 
by 
the 
Scranton 
Times-­‐Tribune 
found 
that 
DEP 
does 
not 
count 
how 
many 
letters 
it 
issues 
to 
residents 
following 
investigations 
of 
potential 
water 
contamination 
from 
oil 
and 
gas 
operations, 
track 
where 
they 
are 
kept 
in 
files, 
or 
maintain 
its 
records 
in 
a 
manner 
that 
allows 
for 
a 
comprehensive 
search.1 
In 
addition, 
our 
organizations 
have 
collectively 
reviewed 
hundreds 
of 
determination 
letters 
and 
found 
that 
the 
information 
DEP 
provides 
to 
residents 
is 
inconsistent 
and 
incomplete. 
Most 
concerning 
are 
the 
cases 
in 
which 
DEP 
simply 
tells 
residents 
that 
water 
quality 
changes 
are 
not 
due 
to 
oil 
and 
gas 
activities 
(i.e., 
negative 
determinations) 
or 
that 
DEP’s 
investigation 
is 
inconclusive—but 
does 
not 
provide 
any 
guidance 
on 
how 
to 
address 
unresolved 
problems 
that 
can 
impact 
health 
in 
both 
the 
short-­‐ 
and 
long-­‐term. 
DEP 
has 
stated 
both 
in 
meetings 
and 
in 
response 
to 
the 
Performance 
Audit 
that 
standardized 
determination 
letters 
are 
currently 
being 
drafted. 
DEP 
should 
set 
a 
deadline 
for 
this 
process 
and 
make 
clear 
exactly 
when 
new 
letters 
will 
be 
issued 
in 
all 
ongoing 
and 
future 
investigations. 
DEP 
should 
also 
consider 
providing 
updated 
letters 
to 
residents 
who 
have 
in 
the 
past 
received 
scant 
information 
and 
been 
“left 
hanging” 
with 
potential 
contamination 
problems. 
The 
Performance 
Audit 
recommends 
that 
the 
Legislature 
reevaluate 
DEP’s 
goal 
of 
resolving 
water 
supply 
complaints 
within 
45 
days. 
DEP 
agrees 
that 
it 
is 
not 
meeting 
this 
goal 
because 
it 
is 
unrealistic—since 
water 
contamination 
investigations 
are 
complex 
and 
time-­‐consuming—and 
that 
“additional 
time 
is 
needed.” 
If 
so, 
DEP 
should 
offer 
an 
alternative 
timeframe 
for 
resolution 
of 
cases 
and 
establish 
mechanisms 
to 
clearly 
communicate 
with 
residents 
about 
progress 
and 
findings 
in 
the 
interim. 
The 
Times-­‐Tribune 
investigation 
included 
cases 
that 
DEP 
considers 
to 
be 
ongoing, 
some 
months 
or 
years 
after 
first 
being 
launched, 
while 
the 
Blackout 
report 
describes 
cases 
in 
which 
water 
quality 
problems 
have 
reoccurred 
or 
remain 
unresolved 
for 
equally 
long 
periods 
of 
time. 
DEP 
should 
identify 
possible 
mechanisms 
to 
ensure 
that 
residents 
with 
water 
supply 
complaints 
are 
provided 
with 
alternative 
clean 
water 
sources 
while 
investigations 
are 
ongoing 
(e.g., 
through 
an 
operator 
requirement 
or 
newly 
funded 
program). 
A 
July 
2014 
investigation 
by 
the 
Pittsburgh 
Post 
Gazette 
revealed 
that 
DEP 
intends 
to 
address 
the 
lack 
of 
water 
contamination 
tracking 
by 
posting 
on 
the 
Department’s 
website 
the 
total 
tally 
of 
damaged 
water 
supplies 
in 
Pennsylvania 
since 
2007 
(which 
DEP 
put 
at 
209 
at 
the 
time 
of 
the 
media 
report).2 
This 
would 
include 
a 
list 
of 
affected 
water 
supplies 
by 
county 
and 
municipality, 
as 
well 
as 
the 
date 
when 
regulators 
concluded 
that 
oil 
and 
gas 
operations 
were 
the 
cause 
of 
contamination. 
DEP 
also 
committed 
to 
eventually 
adding 
links 
to 
determination 
letters 
or 
administrative 
orders. 
However, 
a 
statement 
of 
plans 
is 
not 
the 
same 
as 
action. 
DEP 
should 
immediately 
post 
the 
number 
of 
damaged 
supplies 
and 
provide 
the 
public 
with 
complete 
information 
needed 
to 
understand 
the 
extent 
and 
causes 
of 
water 
contamination, 
including 
the 
responsible 
party, 
whether 
the 
problem 
stemmed 
from 
unconventional 
or 
conventional 
wells, 
the 
nature 
of 
the 
contamination, 
any 
incidents 
related 
to 
the 
contamination, 
DEP’s 
basis 
for 
its 
determination, 
and 
how 
the 
issue 
has 
been 
resolved. 
2. 
DEP 
does 
not 
sufficiently 
track 
complaints 
or 
document 
agency 
response. 
DEP 
refutes 
this 
point 
(Finding 
Three 
in 
the 
Performance 
Audit) 
by 
stating 
that 
concerns 
raised 
by 
the 
AG 
have 
been 
resolved 
because 
the 
Department’s 
Complaint 
Tracking 
System 
(CTS) 
has 
undergone 
improvements 
in 
the 
last 
several 
months 
and 
now 
includes 
additional 
information 
related 
to 
citizen 
reporting 
and 
Department 
investigations. 
2
However, 
DEP 
still 
has 
not 
demonstrated 
to 
the 
public 
that 
key 
information 
about 
complaints 
and 
investigations 
are 
in 
fact 
being 
consistently 
included 
in 
the 
CTS. 
In 
May 
2014, 
DEP 
provided 
Delaware 
Riverkeeper 
Network 
with 
a 
spreadsheet 
of 
2,975 
entries 
from 
the 
CTS 
database 
related 
to 
water 
supplies 
and 
gas 
migration 
received 
by 
DEP 
from 
2006-­‐2013. 
A 
copy 
of 
the 
excel 
spreadsheet 
containing 
the 
CTS 
data 
is 
available 
at: 
http://bit.ly/1vmfYWn. 
In 
addition, 
during 
spring 
2014, 
DEP 
provided 
Earthworks 
with 
county-­‐specific 
spreadsheets 
of 
CTS 
entries 
related 
to 
oil 
and 
gas 
activities. 
These 
spreadsheets 
contain 
fields 
for 
the 
county 
and 
municipality 
from 
where 
complaints 
came, 
the 
general 
type 
of 
complaint, 
and 
the 
dates 
when 
DEP 
received 
it 
and 
considered 
it 
“resolved.” 
However, 
the 
spreadsheets 
don’t 
provide 
information 
needed 
to 
identify 
the 
causes 
of 
contamination 
or 
relate 
a 
complaint 
to 
a 
particular 
site 
or 
incident 
(e.g., 
facility 
ID 
or 
well 
permit 
number), 
nor 
any 
notes 
on 
how 
DEP 
responded 
or 
the 
reasons 
why 
DEP 
considered 
the 
complaint 
to 
be 
resolved. 
As 
a 
result, 
even 
if 
DEP 
has 
begun 
to 
include 
such 
information 
in 
the 
CTS 
for 
internal 
use, 
it 
remains 
impossible 
for 
the 
public 
or 
officials 
(such 
as 
the 
AG) 
to 
fully 
assess 
the 
Department’s 
work 
and 
ensure 
public 
accountability. 
The 
recommendation 
in 
the 
Performance 
Audit 
that 
complaints 
be 
tracked 
on 
a 
one-­‐to-­‐one 
basis 
or 
receive 
a 
unique 
CTS 
identification 
number 
would 
ensure 
transparency 
about 
the 
actual 
number 
of 
complaints 
filed 
regarding 
oil 
and 
gas 
operations. 
But 
DEP 
rejected 
this 
recommendation, 
asserting 
that 
it 
is 
more 
efficient 
to 
instead 
track 
single 
incidents 
and 
include 
multiple 
associated 
complaints 
with 
each 
incident 
entry. 
This 
recordkeeping 
approach 
might 
save 
staff 
time, 
but 
prevents 
an 
accurate 
assessment 
of 
the 
scope 
of 
problems 
experienced 
by 
Pennsylvania 
residents 
and 
potentially 
underrepresents 
the 
actual 
number 
of 
households 
or 
water 
supplies 
affected. 
For 
example, 
DEP 
counted 
the 
contamination 
of 
several 
private 
water 
wells 
in 
Dimock 
as 
a 
single 
incident, 
even 
though 
specific 
contamination 
problems 
and 
different 
remedies 
were 
associated 
with 
each 
household. 
It 
is 
also 
unclear 
how 
DEP 
defines 
an 
“incident” 
and 
decides 
that 
the 
same 
one 
is 
the 
reason 
behind 
multiple 
complaints. 
DEP 
seems 
to 
acknowledge 
this 
problem 
by 
agreeing 
with 
the 
AG’s 
recommendation 
that 
aggregate 
numbers 
of 
complaints, 
investigations, 
and 
affected 
water 
supplies 
be 
posted 
on 
the 
Environment 
Facility 
Application 
Compliance 
Tracking 
System 
(eFACTS) 
website. 
DEP 
should 
apply 
the 
same 
logic 
to 
the 
CTS 
and 
track 
complaints 
on 
a 
one-­‐to-­‐one 
basis 
in 
order 
to 
ensure 
that 
DEP 
staff, 
as 
well 
as 
the 
public, 
have 
access 
to 
complete 
and 
consistent 
information. 
It 
is 
certainly 
possible 
to 
track 
complaints 
on 
a 
one-­‐to-­‐one 
basis, 
as 
both 
the 
State 
of 
New 
Jersey 
and 
the 
US 
Environmental 
Protection 
Agency 
do 
using 
the 
same 
technology 
available 
to 
DEP—and 
subsequently 
provide 
greater 
clarity 
about 
each 
individual 
water 
supply 
complaint. 
DEP 
also 
asserts 
that 
the 
public 
has 
access 
to 
information 
even 
if 
it 
isn’t 
available 
through 
the 
CTS, 
since 
“a 
hard-­‐copy 
file 
for 
each 
complaint 
containing 
3 
all 
investigative 
information 
is 
stored 
in 
the 
regional 
office 
where 
the 
complaint 
originated.” 
DEP 
should 
provide 
evidence 
of 
the 
assertion 
that 
hard 
copy 
files 
kept 
at 
regional 
offices 
shed 
light 
on 
complaints 
and 
complaint 
investigations. 
The 
hundreds 
of 
file 
reviews 
conducted 
by 
our 
organizations 
have 
revealed 
that 
this 
is 
simply 
not 
true, 
as 
complaint 
records 
are 
not 
actually 
kept 
in 
DEP 
well 
and 
facility 
files. 
In 
addition, 
the 
Blackout 
report 
found 
that 
30% 
of 
complaint 
inspection 
reports 
(which 
contain 
information 
about 
incidents 
and 
how 
both 
operators 
and 
DEP 
handled 
the 
situation) 
that 
were 
listed 
in 
eFACTS 
were 
missing 
from 
the 
135 
hard 
copy 
well 
and 
facility 
files 
reviewed 
in 
person 
at 
four 
regional 
DEP 
offices. 
Using 
Pennsylvania’s 
Right 
To 
Know 
Law 
(RTKL), 
Earthworks 
submitted
requests 
to 
DEP 
regional 
offices 
for 
both 
the 
missing 
complaint 
inspection 
reports 
and 
records 
of 
public 
complaints—which 
DEP 
largely 
denied. 
DEP 
should 
make 
clear 
how 
the 
Department 
is 
maintaining 
accurate 
numbers 
about 
complaints 
and 
water 
supply 
problems 
and 
ensuring 
that 
all 
information 
pertinent 
to 
complaint 
investigations 
and 
citizen 
response 
is 
being 
tracked. 
DEP 
should 
explain 
why 
it 
appears 
to 
be 
using 
exceptions 
in 
Pennsylvania’s 
RTKL 
as 
a 
way 
to 
restrict 
public 
access 
to 
agency 
documents. 
It 
also 
remains 
unclear 
why 
the 
Department 
is 
unable 
to 
redact 
personal/private 
information 
in 
order 
to 
provide 
complaints 
documents 
to 
the 
public 
and 
increase 
resources 
available 
for 
fulfillment 
of 
RTKL 
requests 
(both 
generally 
and 
in 
relation 
to 
complaints). 
3. 
DEP 
cannot 
demonstrate 
that 
all 
active 
shale 
gas 
wells 
are 
inspected 
in 
a 
timely 
manner. 
Although 
DEP 
acknowledges 
that 
its 
inspection 
policy, 
developed 
in 
1989, 
needs 
to 
be 
updated, 
it 
refutes 
this 
point 
(Finding 
Four 
in 
the 
Performance 
Audit) 
by 
insisting 
that 
inspections 
are 
conducted 
at 
all 
“critical 
stages” 
of 
well 
construction. 
DEP 
asserts 
that 
the 
Department 
is 
“committed 
to 
inspecting 
all 
unconventional 
gas 
wells” 
at 
these 
critical 
stages. 
DEP 
should 
provide 
data 
and 
documentation 
to 
support 
this 
assertion 
and 
clarify 
the 
timeframe 
and 
plan 
for 
issuing 
a 
revised 
inspection 
policy. 
DEP 
should 
also 
demonstrate 
how 
it 
ensures 
that 
operators 
are 
inspecting 
their 
own 
sites 
and 
notifying 
DEP 
prior 
to 
commencing 
certain 
activities, 
in 
accordance 
with 
recommended 
guidelines 
and 
regulatory 
requirements. 
DEP’s 
insistence 
on 
focusing 
only 
on 
well 
construction 
phases, 
and 
only 
for 
unconventional 
wells, 
contradicts 
the 
current 
recommended 
policy 
in 
the 
Pa. 
Code, 
which 
includes 
an 
inspection 
at 
least 
once 
a 
year 
during 
production, 
i.e., 
4 
after 
well 
construction.3 
This 
is 
critical 
because 
environmental 
impacts 
can 
take 
months 
or 
years 
to 
become 
evident, 
and 
inspections 
during 
and 
after 
the 
production 
phase 
are 
when 
problems 
such 
as 
deteriorating 
equipment, 
waste 
pit 
liner 
tears, 
site 
erosion, 
and 
excessive 
emission 
releases 
may 
be 
discovered. 
In 
addition, 
the 
vast 
majority 
of 
active, 
producing 
oil 
and 
gas 
wells 
in 
Pennsylvania 
are 
conventional 
wells. 
Based 
on 
DEP 
data, 
the 
Blackout 
report 
found 
that 
even 
though 
the 
total 
number 
of 
inspections 
conducted 
statewide 
has 
increased, 
the 
average 
number 
of 
inspections 
conducted 
per 
unconventional 
well 
has 
gone 
down, 
from 
3.3 
in 
2008 
to 
2.2 
in 
2013 
(the 
average 
at 
conventional 
wells 
appears 
to 
have 
remained 
steady).4 
The 
vast 
majority 
of 
all 
active, 
producing 
wells 
continue 
to 
operate 
with 
no 
oversight: 
in 
2013, 
DEP 
inspected 
13,367 
wells—leaving 
more 
than 
66,000 
(83%) 
uninspected.5 
DEP 
should 
provide 
data 
and 
documentation 
to 
justify 
the 
Department’s 
narrow 
prioritization 
of 
unconventional 
wells 
and 
construction 
phases. 
DEP 
should 
demonstrate 
how 
it 
allocates 
resources 
in 
relation 
to 
work 
requirements 
in 
order 
to 
ensure 
that 
inspections 
are 
comprehensive, 
frequent, 
timely, 
and 
cover 
all 
stages 
of 
extraction 
and 
production 
for 
all 
types 
of 
active 
wells. 
4. 
DEP 
uses 
a 
disjointed 
system 
to 
track 
oil 
and 
gas 
field 
waste. 
DEP 
rejects 
this 
point 
(Finding 
Five 
in 
the 
Performance 
Audit) 
and 
the 
corresponding 
recommendations 
for 
adopting 
a 
comprehensive 
waste 
manifest 
system. 
Such 
a 
system 
would 
track 
waste 
from 
the 
site 
where 
it 
is 
created 
all 
the 
way 
through 
transport, 
treatment, 
and 
disposal. 
A 
uniform 
and 
standard 
tracking 
system 
is 
essential 
to 
ensuring 
that 
the 
characteristics 
(e.g., 
chemical 
composition 
and 
radioactive 
properties) 
and 
ultimate 
fate 
of 
waste 
are 
known, 
and 
that 
water 
quality 
and 
health 
are 
being 
protected 
from 
associated 
risks.
DEP 
asserts 
that 
records 
developed 
and 
kept 
by 
operators 
are 
sufficient 
documentation 
of 
waste. 
DEP 
also 
considers 
the 
current 
lack 
of 
waste 
tracking 
and 
reporting 
requirements 
under 
Act 
13 
and 
the 
Solid 
Waste 
Management 
Act 
to 
be 
an 
acceptable 
rationale 
for 
not 
needing 
to 
adopt 
comprehensive 
waste 
management 
systems. 
DEP 
should 
explain 
why 
it 
believes 
that 
self-­‐reported 
data 
provides 
sufficient 
information 
for 
the 
Department 
to 
do 
its 
work 
of 
ensuring 
that 
waste 
is 
not 
being 
improperly 
managed, 
treated, 
or 
disposed. 
Operator 
waste 
records 
are 
only 
available 
to 
DEP 
upon 
request 
and 
difficult 
for 
the 
public 
to 
obtain. 
Our 
organizations 
have 
been 
largely 
unsuccessful 
in 
obtaining 
waste 
records 
from 
operators 
and 
haulers 
through 
DEP 
file 
reviews 
and 
RTKL 
requests. 
Further, 
the 
self-­‐reported 
data 
available 
to 
the 
public 
through 
DEP’s 
online 
waste 
tracking 
system 
is 
inconsistent, 
varies 
in 
terminology, 
does 
not 
include 
definitions 
of 
waste 
types, 
and 
lacks 
verification 
that 
the 
facilities 
intended 
to 
receive 
the 
waste 
actually 
did 
so 
(or 
are 
even 
permitted 
to 
do 
so). 
Finally, 
well 
restoration 
reports 
are 
not 
currently 
a 
search 
option 
in 
eFACTS, 
making 
it 
impossible 
for 
the 
public 
to 
know 
the 
number 
of 
these 
reports 
that 
DEP 
has 
received 
and 
which 
wells 
they 
are 
associated 
with. 
This 
is 
problematic 
because 
the 
reports 
contain 
information 
on 
the 
status 
of 
a 
well 
site 
or 
activities 
and 
potential 
for 
environmental 
risks, 
including 
whether 
waste 
has 
been 
removed 
or 
buried 
onsite. 
DEP 
acknowledges 
the 
shortcomings 
of 
current 
waste 
reports 
from 
operators 
by 
agreeing 
with 
the 
AG’s 
recommendation 
that 
DEP 
reviews 
and 
cross-­‐checks 
self-­‐reported 
waste 
data 
from 
drillers, 
haulers, 
and 
disposal 
facilities. 
DEP 
should 
make 
clear 
when 
it 
will 
begin 
to 
conduct 
a 
more 
detailed 
review 
and 
verification 
process 
for 
self-­‐reported 
waste 
data, 
and 
what 
this 
new 
process 
will 
involve. 
DEP 
asserts 
that 
a 
waste 
manifest 
system 
is 
unnecessary 
because 
“much 
of 
the 
wastewater 
generated 
by 
the 
oil 
and 
gas 
industry 
is 
recycled 
and 
reused.” 
DEP 
should 
provide 
supporting 
data 
or 
documentation 
to 
support 
the 
assertion 
that 
this 
practice 
is 
in 
fact 
widespread 
and 
covers 
a 
significant 
volume 
of 
wastewater 
produced. 
In 
2013, 
a 
comprehensive 
study 
of 
water 
and 
waste 
reporting 
data 
available 
for 
the 
Marcellus 
Shale 
region 
found 
that 
Pennsylvania 
operators 
reported 
an 
almost 
70% 
increase 
in 
waste 
generated 
between 
2010 
and 
2011 
(a 
total 
of 
613 
million 
gallons) 
and 
that 
more 
than 
50% 
is 
treated 
and 
discharged 
to 
surface 
waters 
through 
brine/industrial 
waste 
treatment 
plants 
or 
municipal 
sewage 
treatment 
plants.6 
5. 
DEP’s 
website 
lacks 
transparency 
and 
public 
accountability. 
Throughout 
the 
Performance 
Audit 
response 
document, 
DEP 
states 
that 
the 
AG 
relied 
too 
heavily 
on 
electronic 
data, 
asserting 
that 
the 
hard 
copy 
files 
maintained 
at 
regional 
offices 
provide 
information 
that 
would 
prove 
some 
of 
the 
AG’s 
conclusions 
to 
be 
incorrect 
(such 
as 
the 
large 
proportion 
of 
errors 
and 
omissions 
in 
eFACTS 
related 
to 
inspection 
reports 
and 
DEP 
inspector 
comments). 
In 
particular, 
DEP 
states 
that 
“it 
is 
unfair 
to 
assess 
the 
transparency 
of 
its 
regulatory 
efforts 
based 
solely 
on 
the 
accessibility 
of 
information 
made 
available 
to 
the 
public 
on 
its 
website” 
and 
that 
“the 
files 
maintained 
at 
DEP’s 
regional 
offices 
are 
the 
official 
records 
of 
DEP’s 
regulatory 
efforts, 
not 
eFACTS.” 
However, 
the 
AG 
followed 
a 
process 
that 
most 
members 
of 
the 
public 
would 
use 
to 
seek 
information 
today, 
particularly 
because 
traveling 
to 
regional 
offices 
for 
in-­‐person 
file 
reviews 
can 
be 
prohibitively 
time-­‐consuming 
and 
expensive 
for 
many 
residents. 
Based 
on 
our 
organizations’ 
experiences, 
it 
can 
take 
2-­‐4 
weeks 
to 
secure 
an 
appointment 
for 
a 
file 
review—potentially 
rendering 
the 
purpose 
for 
seeking 
specific 
information 
moot. 
5
The 
electronic 
organization 
of 
data 
is 
also 
important 
to 
provide 
a 
complete 
picture 
that 
can 
be 
interpreted 
and 
used 
to 
improve 
DEP’s 
operations 
and 
identification 
of 
problems 
at 
sites. 
Perhaps 
for 
this 
reason, 
DEP 
acknowledges 
that 
Act 
13 
requires 
the 
greater 
use 
of 
electronic 
media. 
DEP 
should 
fully 
explain 
why 
the 
adoption 
and 
improvement 
of 
online 
systems 
has 
not 
yet 
occurred, 
how 
it 
plans 
to 
ensure 
progress 
in 
the 
immediate 
future, 
and 
a 
timeframe 
for 
doing 
so. 
Electronic 
information 
is 
particularly 
important 
because 
the 
2013 
report 
on 
Pennsylvania 
by 
the 
State 
Review 
of 
Oil 
and 
Natural 
Gas 
Environmental 
Regulations, 
Inc. 
(STRONGER) 
identified 
consistent 
and 
reliable 
online 
information 
as 
a 
primary 
recommendation 
for 
improvement. 
STRONGER 
stated, 
“The 
review 
team 
recommends 
that 
DEP 
maintain 
consistent 
standardized 
data 
for 
tracking 
violations 
and 
enforcement 
actions 
to 
facilitate 
accurate 
internal 
DEP 
performance 
evaluation 
and 
to 
provide 
accurate 
information 
to 
the 
public.”7 
Although 
DEP 
has 
clearly 
known 
of 
the 
need 
for 
standardized 
data 
for 
self-­‐evaluation 
and 
public 
accountability 
for 
quite 
some 
time, 
many 
benchmarks 
of 
progress 
remain 
out 
of 
reach. 
DEP 
should 
make 
clear 
how 
it 
will 
make 
data 
management 
and 
transparency 
a 
priority 
in 
the 
immediate 
future 
and 
when 
the 
public 
can 
expect 
to 
have 
access 
to 
information 
related 
to 
oil 
and 
gas 
operations. 
DEP 
should 
also 
indicate 
how 
and 
when 
it 
will 
remedy 
information 
gaps 
in 
eFACTS—in 
particular 
the 
omission 
of 
certain 
waivers 
and 
authorizations 
as 
search 
options—and 
steps 
being 
taken 
to 
make 
the 
database 
more 
user-­‐friendly 
and 
consistent 
across 
different 
sections. 
The 
problem 
of 
having 
online 
information 
that 
is 
limited 
and 
difficult 
to 
access 
becomes 
even 
more 
significant 
in 
light 
of 
the 
fact 
that 
the 
hard 
files 
that 
DEP 
maintains 
are 
far 
from 
complete. 
Our 
organizations 
have 
collectively 
conducted 
hundreds 
of 
in-­‐person 
file 
reviews 
and 
found 
that 
DEP’s 
paper 
records 
are 
not 
consistently 
maintained 
across 
regional 
offices 
and 
are 
often 
missing 
important 
documents. 
DEP 
should 
explain 
why 
this 
is 
the 
case. 
If 
DEP 
insists 
that 
hard-­‐copy 
files 
are 
the 
key 
source 
of 
public 
information, 
it 
should 
reveal 
how 
and 
when 
these 
files 
will 
in 
fact 
contain 
all 
pertinent 
information. 
The 
Blackout 
report 
was 
in 
part 
based 
on 
documents 
found 
in 
135 
gas 
well 
and 
facility 
files 
at 
four 
regional 
DEP 
offices. 
Just 
as 
the 
AG 
did, 
Earthworks 
encountered 
significant 
problems 
with 
regard 
to 
the 
availability 
of 
information 
on 
inspections, 
violations, 
waste 
management, 
and 
other 
aspects. 
For 
example, 
operators 
of 
99 
wells 
in 
the 
files 
reviewed 
should 
have 
filed 
a 
restoration 
report; 
however, 
they 
were 
missing 
for 
81 
of 
those 
wells 
(or 
82%).8 
In 
addition, 
25% 
of 
the 
drilling 
completion 
reports 
and 
35% 
of 
the 
stimulation 
completion 
reports 
that 
should 
have 
been 
in 
the 
files 
Earthworks 
reviewed 
were 
missing.9 
In 
closing, 
we 
would 
like 
to 
emphasize 
that 
both 
the 
Performance 
Audit 
and 
the 
Blackout 
report 
underscore 
the 
link 
between 
DEP’s 
limited 
resources 
and 
ongoing 
inability 
to 
adequately 
implement 
its 
regulatory 
programs, 
particularly 
at 
a 
time 
of 
surging 
oil 
and 
gas 
development. 
The 
prioritization 
of 
industry 
expansion 
is 
illustrated 
by 
Governor 
Corbett’s 
2012 
Executive 
Order, 
the 
Permit 
Decision 
Guarantee, 
requiring 
DEP 
review 
permit 
applications 
in 
set 
timeframes.10 
This 
policy 
places 
undue 
pressure 
on 
DEP 
staff 
to 
review 
applications 
and 
issue 
permits 
quickly. 
DEP 
should 
explain 
how 
Department 
staff 
are 
ensuring 
adequate 
review 
of 
environmental 
considerations, 
while 
also 
increasing 
the 
pace 
of 
permitting 
and 
being 
forced 
to 
“do 
more 
with 
less.” 
In 
this 
vein, 
we 
wholeheartedly 
agree 
with 
the 
overall 
conclusion 
of 
the 
AG 
(contained 
in 
a 
letter 
to 
Governor 
Corbett 
accompanying 
the 
Performance 
Audit) 
that 
“…DEP 
needs 
assistance. 
It 
is 
6
7 
underfunded, 
understaffed, 
and 
does 
not 
have 
the 
infrastructure 
in 
place 
to 
meet 
the 
continuing 
demands 
placed 
upon 
the 
agency 
by 
expanded 
shale 
gas 
development.” 
DEP 
clearly 
agrees 
as 
well. 
In 
its 
response 
to 
the 
Performance 
Audit, 
resource 
constraints 
and 
burdens 
on 
staff 
were 
frequently 
cited 
a 
key 
reasons 
why 
the 
Department 
is 
unable 
to 
follow 
policies 
related 
to 
recordkeeping, 
waste 
tracking, 
and 
citizen 
response. 
In 
particular, 
DEP 
emphasizes 
that 
its 
efforts 
to 
improve 
its 
information 
management 
systems 
“have 
been 
hampered 
by 
large 
scale 
layoffs 
in 
FY2009-­‐2010 
which 
resulted 
in 
the 
loss 
of 
183 
positions.” 
DEP 
also 
states 
that 
more 
oil 
and 
gas 
inspectors 
are 
needed 
and 
will 
be 
hired 
using 
increased 
permitting 
fees 
from 
operators. 
Yet 
DEP 
stops 
short 
of 
acknowledging 
that 
under 
current 
conditions, 
the 
Department 
is 
unable 
to 
adequately 
oversee 
the 
oil 
and 
gas 
industry 
or 
be 
a 
transparent, 
accountable 
public 
agency. 
Should 
the 
Department 
decide 
to 
become 
its 
own 
best 
advocate 
and 
seek 
increased 
resources 
through 
the 
state 
budget, 
our 
organizations 
would 
gladly 
support 
such 
efforts—and 
are 
confident 
that 
the 
public 
would 
as 
well. 
We 
look 
forward 
to 
DEP 
providing 
the 
information 
and 
documentation 
detailed 
above—which 
will 
help 
ensure 
that 
going 
forward, 
Pennsylvania 
does 
not 
prioritize 
industry 
expansion 
over 
protection 
of 
the 
Commonwealth’s 
environment 
and 
communities. 
Please 
direct 
any 
responses 
or 
questions 
to 
Steve 
Hvozdovich 
with 
Clean 
Water 
Action 
at 
shvozdovich@cleanwater.org 
or 
412-­‐765-­‐3053, 
ext. 
210. 
Sincerely, 
Thomas 
Au, 
Sierra 
Club 
Pennsylvania 
Chapter 
Tracy 
Carluccio, 
Deputy 
Director, 
Delaware 
Riverkeeper 
Network 
Kristen 
Cevoli, 
Fracking 
Program 
Director, 
PennEnvironment 
Karen 
Feridun, 
Founder, 
Berks 
Gas 
Truth 
Steve 
Hvozdovich, 
Marcellus 
Shale 
Campaign 
Coordinator, 
Clean 
Water 
Action 
Nick 
Kennedy, 
Community 
Outreach 
Coordinator, 
Mountain 
Watershed 
Association 
Nadia 
Steinzor, 
Eastern 
Program 
Coordinator, 
Earthworks 
Oil 
& 
Gas 
Accountability 
Project 
John 
F. 
Stolz, 
Director, 
Center 
for 
Environmental 
Research 
and 
Education, 
Dusquesne 
University 
1 
Laura 
Legere. 
“Sunday 
Times 
Review 
of 
DEP 
drilling 
records 
reveals 
water 
damage, 
murky 
testing 
methods.” 
Scranton 
Times-­‐Tribune, 
May 
19, 
2013. 
2 
Laura 
Legere, 
“DEP: 
Oil 
and 
gas 
operations 
damaged 
water 
supplies 
209 
times 
since 
the 
end 
of 
’07.” 
Pittsburgh 
Post-­‐Gazette, 
Power 
Source 
feature, 
July 
22, 
2014.
3 
Pennsylvania 
Code, 
Title 
25, 
§78.901-­‐906. 
www.pacode.com/secure/data/025/chapter78/subchapXtoc.html. 
4 
PADEP 
Secretary 
Christopher 
Abruzzo 
and 
Deputy 
Secretary 
Scott 
Perry, 
“2013 
Oil 
and 
Gas 
Annual 
Report.” 
Using 
figures 
in 
DEP’s 
annual 
report, 
we 
divided 
the 
number 
of 
inspections 
for 
each 
type 
of 
well 
(unconventional 
and 
conventional) 
by 
the 
number 
of 
wells 
inspected 
to 
reach 
the 
average 
number 
of 
inspections 
conducted. 
5 
Inspected 
wells: 
8 
According 
to 
PADEP’s 
2013 
Oil 
and 
Gas 
Annual 
Report 
(Ibid. 
p. 
19), 
in 
2008 
PADEP 
conducted 
inspections 
of 
377 
unconventional 
and 
7,143 
conventional 
wells 
= 
7,520 
wells 
inspected. 
In 
2013, 
PADEP 
conducted 
inspections 
at 
5,559 
unconventional 
and 
7,808 
conventional 
wells 
= 
13,367 
wells 
inspected. 
Active 
wells: 
Earthworks 
was 
unable 
to 
find 
PADEP-­‐generated 
statistics 
on 
the 
number 
of 
active 
wells 
in 
the 
state. 
In 
its 
Permitted 
Well 
Inventory 
(“Inventory”) 
under 
“Well 
Status” 
there 
is 
an 
option 
to 
select 
“Active.” 
But 
because 
the 
data 
in 
the 
Inventory 
are 
submitted 
by 
operators, 
this 
category 
does 
not 
actually 
guarantee 
that 
the 
well 
is 
still 
in 
service, 
or 
in 
a 
condition 
where 
it 
should 
be 
inspected 
(e.g., 
temporarily 
plugged 
or 
abandoned). 
Inventory 
available 
at 
PADEP 
Oil 
and 
Gas 
Reporting 
Web 
site, 
under 
statewide 
downloads: 
https://www.paoilandgasreporting.state.pa.us. 
6 
E. 
Hansen, 
D. 
Mulvaney, 
and 
M. 
Betcher. 
Water 
Resource 
Reporting 
and 
Water 
Footprint 
from 
Marcellus 
Shale 
Development 
in 
West 
Virginia 
and 
Pennsylvania. 
Downstream 
Strategies 
and 
San 
Jose 
University, 
2013. 
7 
State 
Review 
of 
Oil 
and 
Natural 
Gas 
Environmental 
Regulations, 
Inc. 
(STRONGER), 
Pennsylvania 
Follow-­‐up 
State 
Review, 
2013. 
8 
Based 
on 
the 
regulation 
that 
restoration 
must 
be 
finished 
within 
nine 
months 
of 
completion 
of 
drilling 
a 
well, 
Earthworks 
found 
the 
drilling 
completion 
date 
for 
each 
of 
the 
wells 
on 
forms 
in 
the 
hard 
copy 
files 
reviewed. 
When 
the 
necessary 
forms 
weren’t 
in 
the 
files, 
Earthworks 
presumed 
that 
the 
date 
of 
well 
stimulation 
completion 
would 
provide 
a 
rough 
approximation, 
since 
stimulation 
only 
occurs 
once 
drilling 
has 
been 
completed. 
Earthworks 
also 
factored 
in 
whether 
DEP 
had 
granted 
a 
restoration 
extension, 
and 
for 
how 
long. 
9 
To 
determine 
which 
wells 
should 
have 
had 
a 
drilling 
completion 
report 
filed 
with 
DEP 
by 
the 
time 
file 
reviews 
were 
conducted, 
Earthworks 
assumed 
that 
if 
the 
well 
of 
concern 
was 
producing 
gas, 
or 
had 
a 
well 
completion 
report 
indicating 
that 
the 
well 
had 
been 
stimulated, 
that 
the 
well 
had 
obviously 
been 
drilled. 
For 
well 
files 
that 
were 
missing 
drilling 
completion 
reports, 
it 
was 
obviously 
impossible 
to 
know 
the 
drilling 
completion 
date, 
so 
Earthworks 
added 
30 
days 
to 
the 
date 
of 
well 
completion, 
or 
if 
the 
file 
was 
missing 
that 
report, 
30 
days 
to 
the 
first 
date 
of 
production 
(found 
on 
the 
PA 
Oil 
and 
Gas 
Reporting 
web 
site, 
www.paoilandgasreporting.state.pa.us/publicreports/Modules/Welcome/Agreement.aspx) 
to 
determine 
the 
expected 
date 
by 
which 
the 
operator 
should 
have 
filed 
the 
drilling 
completion 
report. 
10 
Office 
of 
the 
Governor, 
Executive 
Order 
2012-­‐11, 
“Permit 
Decision 
Guarantee 
for 
the 
Department 
of 
Environmental 
Protection.” 
Pennsylvania 
Office 
of 
Administration, 
records 
and 
directives.

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Sanctimonious Letter from Delaware Riverkeeper & Others to PA DEP

  • 1. 1 August 28, 2014 Secretary E. Christopher Abruzzo Pennsylvania Department of Environmental Protection 400 Market Street Harrisburg, PA 17101 Cc: Scott Perry, Deputy Director, Office of Oil and Gas Management, PADEP Eugene A. DePasqualie, Pennsylvania Auditor General Dear Secretary Abruzzo: As representatives of environmental and citizens organizations, we are writing with regard to the Special Performance Audit titled DEP’s performance in monitoring potential impacts to water quality from shale gas development, 2009-­‐2012, issued on July 22 by Auditor General (AG) Eugene A. DePasquale, Pennsylvania Department of the Auditor General (hereafter the “Performance Audit”). We are very concerned about the flaws in the Department of Environmental Protection’s (DEP) programs that were exposed in the Performance Audit. As you are surely aware, Earthworks recently detailed similar problems in a comprehensive, site-­‐by-­‐site analysis of how DEP permits and oversees gas and oil operations, captured in a report released on August 7, Blackout in the Gas Patch: How Pennsylvania Residents are Kept in the Dark on Health and Enforcement (hereafter the “Blackout report”). It is perplexing that DEP rejected all of the eight key findings in the Performance Audit—while simultaneously agreeing with all or parts of 22 of the 29 related recommendations. As detailed below, DEP has neglected to address specific issues raised in both the Performance Audit and the Blackout Report. We ask that DEP explains how and when it plans to do so— particularly in light of the Department’s statements in response to the Performance Audit that, “To a great extent, the audit report reflects how the Oil and Gas Program formerly operated, not how the program currently functions.” As you know, our organizations have met with DEP staff regularly for more than a year to discuss impacts from oil and gas operations on water quality, with the goals of bringing information to the Department on behalf of affected communities and learning more about DEP policies and perspectives. The Performance Audit and the Blackout report examine many of the issues explored at these meetings and verify the concerns we have raised. In the same vein of collaboration and dialogue with which we have approached these meetings, we offer the following comments on DEP’s formal responses to the Performance Audit. We hope this will help facilitate swift action by DEP to solve and prevent environmental and health impacts associated with oil and gas operations, and to be more responsive to the public it serves. 1. DEP communications with impacted citizens are neither clear nor timely. DEP refutes this point (Finding Two in the Performance Audit) on the basis that the AG only examined isolated examples that are not representative of DEP’s overall performance in communicating the results of investigations to affected residents. However, DEP does not offer any data or documents to support the assertion that its overall performance is different than what the AG has found. It is highly possible that none actually exist.
  • 2. A 2013 investigation by the Scranton Times-­‐Tribune found that DEP does not count how many letters it issues to residents following investigations of potential water contamination from oil and gas operations, track where they are kept in files, or maintain its records in a manner that allows for a comprehensive search.1 In addition, our organizations have collectively reviewed hundreds of determination letters and found that the information DEP provides to residents is inconsistent and incomplete. Most concerning are the cases in which DEP simply tells residents that water quality changes are not due to oil and gas activities (i.e., negative determinations) or that DEP’s investigation is inconclusive—but does not provide any guidance on how to address unresolved problems that can impact health in both the short-­‐ and long-­‐term. DEP has stated both in meetings and in response to the Performance Audit that standardized determination letters are currently being drafted. DEP should set a deadline for this process and make clear exactly when new letters will be issued in all ongoing and future investigations. DEP should also consider providing updated letters to residents who have in the past received scant information and been “left hanging” with potential contamination problems. The Performance Audit recommends that the Legislature reevaluate DEP’s goal of resolving water supply complaints within 45 days. DEP agrees that it is not meeting this goal because it is unrealistic—since water contamination investigations are complex and time-­‐consuming—and that “additional time is needed.” If so, DEP should offer an alternative timeframe for resolution of cases and establish mechanisms to clearly communicate with residents about progress and findings in the interim. The Times-­‐Tribune investigation included cases that DEP considers to be ongoing, some months or years after first being launched, while the Blackout report describes cases in which water quality problems have reoccurred or remain unresolved for equally long periods of time. DEP should identify possible mechanisms to ensure that residents with water supply complaints are provided with alternative clean water sources while investigations are ongoing (e.g., through an operator requirement or newly funded program). A July 2014 investigation by the Pittsburgh Post Gazette revealed that DEP intends to address the lack of water contamination tracking by posting on the Department’s website the total tally of damaged water supplies in Pennsylvania since 2007 (which DEP put at 209 at the time of the media report).2 This would include a list of affected water supplies by county and municipality, as well as the date when regulators concluded that oil and gas operations were the cause of contamination. DEP also committed to eventually adding links to determination letters or administrative orders. However, a statement of plans is not the same as action. DEP should immediately post the number of damaged supplies and provide the public with complete information needed to understand the extent and causes of water contamination, including the responsible party, whether the problem stemmed from unconventional or conventional wells, the nature of the contamination, any incidents related to the contamination, DEP’s basis for its determination, and how the issue has been resolved. 2. DEP does not sufficiently track complaints or document agency response. DEP refutes this point (Finding Three in the Performance Audit) by stating that concerns raised by the AG have been resolved because the Department’s Complaint Tracking System (CTS) has undergone improvements in the last several months and now includes additional information related to citizen reporting and Department investigations. 2
  • 3. However, DEP still has not demonstrated to the public that key information about complaints and investigations are in fact being consistently included in the CTS. In May 2014, DEP provided Delaware Riverkeeper Network with a spreadsheet of 2,975 entries from the CTS database related to water supplies and gas migration received by DEP from 2006-­‐2013. A copy of the excel spreadsheet containing the CTS data is available at: http://bit.ly/1vmfYWn. In addition, during spring 2014, DEP provided Earthworks with county-­‐specific spreadsheets of CTS entries related to oil and gas activities. These spreadsheets contain fields for the county and municipality from where complaints came, the general type of complaint, and the dates when DEP received it and considered it “resolved.” However, the spreadsheets don’t provide information needed to identify the causes of contamination or relate a complaint to a particular site or incident (e.g., facility ID or well permit number), nor any notes on how DEP responded or the reasons why DEP considered the complaint to be resolved. As a result, even if DEP has begun to include such information in the CTS for internal use, it remains impossible for the public or officials (such as the AG) to fully assess the Department’s work and ensure public accountability. The recommendation in the Performance Audit that complaints be tracked on a one-­‐to-­‐one basis or receive a unique CTS identification number would ensure transparency about the actual number of complaints filed regarding oil and gas operations. But DEP rejected this recommendation, asserting that it is more efficient to instead track single incidents and include multiple associated complaints with each incident entry. This recordkeeping approach might save staff time, but prevents an accurate assessment of the scope of problems experienced by Pennsylvania residents and potentially underrepresents the actual number of households or water supplies affected. For example, DEP counted the contamination of several private water wells in Dimock as a single incident, even though specific contamination problems and different remedies were associated with each household. It is also unclear how DEP defines an “incident” and decides that the same one is the reason behind multiple complaints. DEP seems to acknowledge this problem by agreeing with the AG’s recommendation that aggregate numbers of complaints, investigations, and affected water supplies be posted on the Environment Facility Application Compliance Tracking System (eFACTS) website. DEP should apply the same logic to the CTS and track complaints on a one-­‐to-­‐one basis in order to ensure that DEP staff, as well as the public, have access to complete and consistent information. It is certainly possible to track complaints on a one-­‐to-­‐one basis, as both the State of New Jersey and the US Environmental Protection Agency do using the same technology available to DEP—and subsequently provide greater clarity about each individual water supply complaint. DEP also asserts that the public has access to information even if it isn’t available through the CTS, since “a hard-­‐copy file for each complaint containing 3 all investigative information is stored in the regional office where the complaint originated.” DEP should provide evidence of the assertion that hard copy files kept at regional offices shed light on complaints and complaint investigations. The hundreds of file reviews conducted by our organizations have revealed that this is simply not true, as complaint records are not actually kept in DEP well and facility files. In addition, the Blackout report found that 30% of complaint inspection reports (which contain information about incidents and how both operators and DEP handled the situation) that were listed in eFACTS were missing from the 135 hard copy well and facility files reviewed in person at four regional DEP offices. Using Pennsylvania’s Right To Know Law (RTKL), Earthworks submitted
  • 4. requests to DEP regional offices for both the missing complaint inspection reports and records of public complaints—which DEP largely denied. DEP should make clear how the Department is maintaining accurate numbers about complaints and water supply problems and ensuring that all information pertinent to complaint investigations and citizen response is being tracked. DEP should explain why it appears to be using exceptions in Pennsylvania’s RTKL as a way to restrict public access to agency documents. It also remains unclear why the Department is unable to redact personal/private information in order to provide complaints documents to the public and increase resources available for fulfillment of RTKL requests (both generally and in relation to complaints). 3. DEP cannot demonstrate that all active shale gas wells are inspected in a timely manner. Although DEP acknowledges that its inspection policy, developed in 1989, needs to be updated, it refutes this point (Finding Four in the Performance Audit) by insisting that inspections are conducted at all “critical stages” of well construction. DEP asserts that the Department is “committed to inspecting all unconventional gas wells” at these critical stages. DEP should provide data and documentation to support this assertion and clarify the timeframe and plan for issuing a revised inspection policy. DEP should also demonstrate how it ensures that operators are inspecting their own sites and notifying DEP prior to commencing certain activities, in accordance with recommended guidelines and regulatory requirements. DEP’s insistence on focusing only on well construction phases, and only for unconventional wells, contradicts the current recommended policy in the Pa. Code, which includes an inspection at least once a year during production, i.e., 4 after well construction.3 This is critical because environmental impacts can take months or years to become evident, and inspections during and after the production phase are when problems such as deteriorating equipment, waste pit liner tears, site erosion, and excessive emission releases may be discovered. In addition, the vast majority of active, producing oil and gas wells in Pennsylvania are conventional wells. Based on DEP data, the Blackout report found that even though the total number of inspections conducted statewide has increased, the average number of inspections conducted per unconventional well has gone down, from 3.3 in 2008 to 2.2 in 2013 (the average at conventional wells appears to have remained steady).4 The vast majority of all active, producing wells continue to operate with no oversight: in 2013, DEP inspected 13,367 wells—leaving more than 66,000 (83%) uninspected.5 DEP should provide data and documentation to justify the Department’s narrow prioritization of unconventional wells and construction phases. DEP should demonstrate how it allocates resources in relation to work requirements in order to ensure that inspections are comprehensive, frequent, timely, and cover all stages of extraction and production for all types of active wells. 4. DEP uses a disjointed system to track oil and gas field waste. DEP rejects this point (Finding Five in the Performance Audit) and the corresponding recommendations for adopting a comprehensive waste manifest system. Such a system would track waste from the site where it is created all the way through transport, treatment, and disposal. A uniform and standard tracking system is essential to ensuring that the characteristics (e.g., chemical composition and radioactive properties) and ultimate fate of waste are known, and that water quality and health are being protected from associated risks.
  • 5. DEP asserts that records developed and kept by operators are sufficient documentation of waste. DEP also considers the current lack of waste tracking and reporting requirements under Act 13 and the Solid Waste Management Act to be an acceptable rationale for not needing to adopt comprehensive waste management systems. DEP should explain why it believes that self-­‐reported data provides sufficient information for the Department to do its work of ensuring that waste is not being improperly managed, treated, or disposed. Operator waste records are only available to DEP upon request and difficult for the public to obtain. Our organizations have been largely unsuccessful in obtaining waste records from operators and haulers through DEP file reviews and RTKL requests. Further, the self-­‐reported data available to the public through DEP’s online waste tracking system is inconsistent, varies in terminology, does not include definitions of waste types, and lacks verification that the facilities intended to receive the waste actually did so (or are even permitted to do so). Finally, well restoration reports are not currently a search option in eFACTS, making it impossible for the public to know the number of these reports that DEP has received and which wells they are associated with. This is problematic because the reports contain information on the status of a well site or activities and potential for environmental risks, including whether waste has been removed or buried onsite. DEP acknowledges the shortcomings of current waste reports from operators by agreeing with the AG’s recommendation that DEP reviews and cross-­‐checks self-­‐reported waste data from drillers, haulers, and disposal facilities. DEP should make clear when it will begin to conduct a more detailed review and verification process for self-­‐reported waste data, and what this new process will involve. DEP asserts that a waste manifest system is unnecessary because “much of the wastewater generated by the oil and gas industry is recycled and reused.” DEP should provide supporting data or documentation to support the assertion that this practice is in fact widespread and covers a significant volume of wastewater produced. In 2013, a comprehensive study of water and waste reporting data available for the Marcellus Shale region found that Pennsylvania operators reported an almost 70% increase in waste generated between 2010 and 2011 (a total of 613 million gallons) and that more than 50% is treated and discharged to surface waters through brine/industrial waste treatment plants or municipal sewage treatment plants.6 5. DEP’s website lacks transparency and public accountability. Throughout the Performance Audit response document, DEP states that the AG relied too heavily on electronic data, asserting that the hard copy files maintained at regional offices provide information that would prove some of the AG’s conclusions to be incorrect (such as the large proportion of errors and omissions in eFACTS related to inspection reports and DEP inspector comments). In particular, DEP states that “it is unfair to assess the transparency of its regulatory efforts based solely on the accessibility of information made available to the public on its website” and that “the files maintained at DEP’s regional offices are the official records of DEP’s regulatory efforts, not eFACTS.” However, the AG followed a process that most members of the public would use to seek information today, particularly because traveling to regional offices for in-­‐person file reviews can be prohibitively time-­‐consuming and expensive for many residents. Based on our organizations’ experiences, it can take 2-­‐4 weeks to secure an appointment for a file review—potentially rendering the purpose for seeking specific information moot. 5
  • 6. The electronic organization of data is also important to provide a complete picture that can be interpreted and used to improve DEP’s operations and identification of problems at sites. Perhaps for this reason, DEP acknowledges that Act 13 requires the greater use of electronic media. DEP should fully explain why the adoption and improvement of online systems has not yet occurred, how it plans to ensure progress in the immediate future, and a timeframe for doing so. Electronic information is particularly important because the 2013 report on Pennsylvania by the State Review of Oil and Natural Gas Environmental Regulations, Inc. (STRONGER) identified consistent and reliable online information as a primary recommendation for improvement. STRONGER stated, “The review team recommends that DEP maintain consistent standardized data for tracking violations and enforcement actions to facilitate accurate internal DEP performance evaluation and to provide accurate information to the public.”7 Although DEP has clearly known of the need for standardized data for self-­‐evaluation and public accountability for quite some time, many benchmarks of progress remain out of reach. DEP should make clear how it will make data management and transparency a priority in the immediate future and when the public can expect to have access to information related to oil and gas operations. DEP should also indicate how and when it will remedy information gaps in eFACTS—in particular the omission of certain waivers and authorizations as search options—and steps being taken to make the database more user-­‐friendly and consistent across different sections. The problem of having online information that is limited and difficult to access becomes even more significant in light of the fact that the hard files that DEP maintains are far from complete. Our organizations have collectively conducted hundreds of in-­‐person file reviews and found that DEP’s paper records are not consistently maintained across regional offices and are often missing important documents. DEP should explain why this is the case. If DEP insists that hard-­‐copy files are the key source of public information, it should reveal how and when these files will in fact contain all pertinent information. The Blackout report was in part based on documents found in 135 gas well and facility files at four regional DEP offices. Just as the AG did, Earthworks encountered significant problems with regard to the availability of information on inspections, violations, waste management, and other aspects. For example, operators of 99 wells in the files reviewed should have filed a restoration report; however, they were missing for 81 of those wells (or 82%).8 In addition, 25% of the drilling completion reports and 35% of the stimulation completion reports that should have been in the files Earthworks reviewed were missing.9 In closing, we would like to emphasize that both the Performance Audit and the Blackout report underscore the link between DEP’s limited resources and ongoing inability to adequately implement its regulatory programs, particularly at a time of surging oil and gas development. The prioritization of industry expansion is illustrated by Governor Corbett’s 2012 Executive Order, the Permit Decision Guarantee, requiring DEP review permit applications in set timeframes.10 This policy places undue pressure on DEP staff to review applications and issue permits quickly. DEP should explain how Department staff are ensuring adequate review of environmental considerations, while also increasing the pace of permitting and being forced to “do more with less.” In this vein, we wholeheartedly agree with the overall conclusion of the AG (contained in a letter to Governor Corbett accompanying the Performance Audit) that “…DEP needs assistance. It is 6
  • 7. 7 underfunded, understaffed, and does not have the infrastructure in place to meet the continuing demands placed upon the agency by expanded shale gas development.” DEP clearly agrees as well. In its response to the Performance Audit, resource constraints and burdens on staff were frequently cited a key reasons why the Department is unable to follow policies related to recordkeeping, waste tracking, and citizen response. In particular, DEP emphasizes that its efforts to improve its information management systems “have been hampered by large scale layoffs in FY2009-­‐2010 which resulted in the loss of 183 positions.” DEP also states that more oil and gas inspectors are needed and will be hired using increased permitting fees from operators. Yet DEP stops short of acknowledging that under current conditions, the Department is unable to adequately oversee the oil and gas industry or be a transparent, accountable public agency. Should the Department decide to become its own best advocate and seek increased resources through the state budget, our organizations would gladly support such efforts—and are confident that the public would as well. We look forward to DEP providing the information and documentation detailed above—which will help ensure that going forward, Pennsylvania does not prioritize industry expansion over protection of the Commonwealth’s environment and communities. Please direct any responses or questions to Steve Hvozdovich with Clean Water Action at shvozdovich@cleanwater.org or 412-­‐765-­‐3053, ext. 210. Sincerely, Thomas Au, Sierra Club Pennsylvania Chapter Tracy Carluccio, Deputy Director, Delaware Riverkeeper Network Kristen Cevoli, Fracking Program Director, PennEnvironment Karen Feridun, Founder, Berks Gas Truth Steve Hvozdovich, Marcellus Shale Campaign Coordinator, Clean Water Action Nick Kennedy, Community Outreach Coordinator, Mountain Watershed Association Nadia Steinzor, Eastern Program Coordinator, Earthworks Oil & Gas Accountability Project John F. Stolz, Director, Center for Environmental Research and Education, Dusquesne University 1 Laura Legere. “Sunday Times Review of DEP drilling records reveals water damage, murky testing methods.” Scranton Times-­‐Tribune, May 19, 2013. 2 Laura Legere, “DEP: Oil and gas operations damaged water supplies 209 times since the end of ’07.” Pittsburgh Post-­‐Gazette, Power Source feature, July 22, 2014.
  • 8. 3 Pennsylvania Code, Title 25, §78.901-­‐906. www.pacode.com/secure/data/025/chapter78/subchapXtoc.html. 4 PADEP Secretary Christopher Abruzzo and Deputy Secretary Scott Perry, “2013 Oil and Gas Annual Report.” Using figures in DEP’s annual report, we divided the number of inspections for each type of well (unconventional and conventional) by the number of wells inspected to reach the average number of inspections conducted. 5 Inspected wells: 8 According to PADEP’s 2013 Oil and Gas Annual Report (Ibid. p. 19), in 2008 PADEP conducted inspections of 377 unconventional and 7,143 conventional wells = 7,520 wells inspected. In 2013, PADEP conducted inspections at 5,559 unconventional and 7,808 conventional wells = 13,367 wells inspected. Active wells: Earthworks was unable to find PADEP-­‐generated statistics on the number of active wells in the state. In its Permitted Well Inventory (“Inventory”) under “Well Status” there is an option to select “Active.” But because the data in the Inventory are submitted by operators, this category does not actually guarantee that the well is still in service, or in a condition where it should be inspected (e.g., temporarily plugged or abandoned). Inventory available at PADEP Oil and Gas Reporting Web site, under statewide downloads: https://www.paoilandgasreporting.state.pa.us. 6 E. Hansen, D. Mulvaney, and M. Betcher. Water Resource Reporting and Water Footprint from Marcellus Shale Development in West Virginia and Pennsylvania. Downstream Strategies and San Jose University, 2013. 7 State Review of Oil and Natural Gas Environmental Regulations, Inc. (STRONGER), Pennsylvania Follow-­‐up State Review, 2013. 8 Based on the regulation that restoration must be finished within nine months of completion of drilling a well, Earthworks found the drilling completion date for each of the wells on forms in the hard copy files reviewed. When the necessary forms weren’t in the files, Earthworks presumed that the date of well stimulation completion would provide a rough approximation, since stimulation only occurs once drilling has been completed. Earthworks also factored in whether DEP had granted a restoration extension, and for how long. 9 To determine which wells should have had a drilling completion report filed with DEP by the time file reviews were conducted, Earthworks assumed that if the well of concern was producing gas, or had a well completion report indicating that the well had been stimulated, that the well had obviously been drilled. For well files that were missing drilling completion reports, it was obviously impossible to know the drilling completion date, so Earthworks added 30 days to the date of well completion, or if the file was missing that report, 30 days to the first date of production (found on the PA Oil and Gas Reporting web site, www.paoilandgasreporting.state.pa.us/publicreports/Modules/Welcome/Agreement.aspx) to determine the expected date by which the operator should have filed the drilling completion report. 10 Office of the Governor, Executive Order 2012-­‐11, “Permit Decision Guarantee for the Department of Environmental Protection.” Pennsylvania Office of Administration, records and directives.