Drillers: Permit limbo hurts Pa.’s competitiveness

Associated Press

As Pennsylvania’s governor touts the potential for billions of dollars in new investment by petrochemical manufacturers, his environmental agency is struggling to process applications to drill the natural gas wells that will be needed to supply the fledgling industry.

An analysis by the industry-funded Marcellus Shale Coalition shows that approval times for a key permit are going up in two of the three regional offices that review them. The Department of Environmental Protection confirmed that applications are lagging and pledged to do better.

The regulatory logjam is hurting Pennsylvania’s competitiveness with other shale states such as West Virginia, Ohio and Louisiana, said David Spigelmyer, president of the Pittsburgh-based trade group.

The gas industry’s complaints about permitting come as Democratic Gov. Tom Wolf pushes to attract plastics and petrochemical manufactures that use natural gas as a feedstock.

Last week, Wolf released a report by the research firm IHS Markit that said Pennsylvania can support four additional petrochemical plants beyond the $6 billion facility Shell Chemicals is planning outside Pittsburgh. The Shell plant will convert ethane – a natural-gas liquid found in the Marcellus and Utica shale formations – into plastic pellets that manufacturers use to make toys, food packaging, garden furniture and many other plastics products.