The Register-Herald, Beckley, West Virginia

Today's Front Page

March 25, 2011

Recent study advocates gas but says regulation is a necessity

By Taylor Kuykendall Register-Herald Reporter

— A recent report from a task force on natural gas points to cleaner air, increased energy security and a potential boost for the economy as major benefits of the growing industry.

But the report also says, however, without reasonable regulation striking a balance between the environment and industry, both could be at risk.

A joint committee of the Bipartisan Policy Center and the American Clean Skies Foundation met to form a task force that would increase stability in what has been a fairly volatile natural gas market in the past. Members of the task force were brought together to craft a proposal for creating market conditions that would encourage investment in natural gas production and downstream products.

 In a release from the Marcellus Shale Coalition, President and Executive Director Kathryn Klaber complimented the task force for highlighting the potential benefits of the natural gas industry.

“Having such strong and independent voices clearly lay out the fact that the responsible development of our abundant natural gas resources is ‘a winning proposition for consumers, for America’s economy, the environment, and our nation’s energy security’ is positive news by any measure,” Klaber said.

“And with so much uncertainty throughout the economy, including the global energy landscape, these findings only strengthen the fact that America’s clean-burning natural gas resources will play an increasingly critical role in meeting our future energy challenges.”

Environmental groups have largely supported burning natural gas over coal because emissions are believed to be much cleaner, but there are still some questions about how safe the drilling process may be. The report encourages methods for developing gas markets and doing so safely.

“This is an important public-interest challenge with far-reaching consequences. The United States recently became the world’s largest natural gas producer,” wrote Norm Szydlowski of the BPC and Gregory C. Staple of the ACSF. “Meanwhile, in a few short years, technology advances combined with new shale gas discoveries have more than tripled estimates of the nation’s economically recoverable natural gas resources.”

According to the report, these new sources of energy offer a point of stabilization that previously did not exist in the natural gas market. The report also calls for “balanced fiscal and regulatory policies” to stabilize the supply of natural gas.

One recommendation the report gives regulators and industry is to “devote attention to the environmental issues associated with hydraulic fracturing and water use.” If problems on those fronts arise, the report states, public confidence in the industry and the technologies to reach new shales could be undermined.

Some of the major environmental concerns — well-casing inspection, groundwater monitoring, disposal of fracturing fluids and other potential problems mentioned in the report — were addressed by various versions of legislation during the regular West Virginia legislative session.

A bill involving regulation of the gas industry failed to pass in the regular session, and top state officials are saying a special session to address the problem is not necessary.

“Government policy at the federal, state and municipal levels should encourage and facilitate the development of domestic natural gas resources, subject to appropriate environmental safeguards,” the report states. “Balanced fiscal and regulatory policies will enable an increased supply of natural gas to be brought to market at more stable prices.”

As a final recommendation, members of the task force warn regulators to be “mindful” of the  lead time needed for markets to adjust to new policies.

— E-mail: tkuykendall@register-herald.com

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