Tag Archives: Mining and Energy Commission

Agenda for MEC meeting, Tuesday, January 14, 2014

NORTH CAROLINA

MINING AND ENERGY COMMISSION

January 14, 2014

9:00 a.m.

Archdale Building Ground Floor Hearing Room

512 N. Salisbury St.

Raleigh, NC

To join the meeting:
https://denr.ncgovconnect.com/mec011414/

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Draft Minutes from December 6th

MEC Quarterly Report

Sign In Sheets

 AGENDA

1. Call to Order – James Womack, Chairman of the Mining and Energy Commission

2. Moment of Silence and Pledge of Allegiance

3. Welcome and Notice of NCGS 138A-15 – Chairman Womack

In accordance with the State Government Ethics Act, it is the duty of every member of the North Carolina Mining and Energy Commission to avoid conflicts of interest and potential conflicts. If any member knows of a conflict of interest or potential conflict with respect to matters coming before the Commission today, please identify the conflict or potential conflict at this time.

4. Roll Call of Commission Members – Chairman Womack

5. Approval of Minutes from Last Meeting – Chairman Womack

6. Committee Reports (10 minutes each, plus time for questions)

Administration of Oil & Gas Committee – Charles Holbrook

Rules Committee – Amy Pickle

7. Study Group Reports

Coordinated Permitting Study Group and Review of Study Group Report – Dr. Kenneth Taylor

Protection of Trade Secrets and Proprietary Information Study Group – Chairman Womack

8. Administration – Chairman Womack

Review of 2014 meeting schedule and proposed timelines

9. Overview of Proposed Revisions to the EMC’s Water Quality Rules – Evan Kane, DWR

10. Discussion & Action on Chemical Disclosure Rule, Chairman’s Mark – Chairman Womack

11. Lunch Break – 30 minutes

12. Discussion & Action on Setback Rule – George Howard

13. Public Comment

The public comment period will be limited to a total of 10 speakers and each speaker will be allowed three minutes to speak. The sign-up sheet will be available in the Ground Floor Hearing Room from 8:30 a.m. until 12:00 p.m.

14. Concluding Remarks

a. Commission Members

b. Commission Counsel

c. Commission Chairman

15. Adjournment

Reminder to All MEC Members: Members having a question about a conflict of interest or potential conflict should consult with the Chairman or with legal counsel.

Reminder to MEC Members Appointed by the Governor: Executive Order 34 mandates that in transacting Commission business each person appointed by the Governor shall act always in the best interest of the public without regard for his or her financial interests. To this end, each appointee must recuse himself or herself from voting on any matter on which the appointee has a financial interest.

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Workshop for landowners scheduled in Sanford, Dec. 14th

Just passing notice of this workshop for concerned landowners scheduled for December 14th at the McSwain Center in Sanford. The workshop is being organized by RAFI and the Southern Environmental Law Center. Click the link below for the official flyer for more information.

RAFI & SELC Landowner workshop flyer

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Forced pooling and its potential impact

I am remiss that I did not pass along this information when it was first published by RAFI, but they have put together a very easy-to-follow explanation and graphic on the impact of the Compulsory Pooling policy in Lee County.

Graphic put together by RAFI demonstrating the impact of Compulsory Pooling. See their website, linked at the top of this post, for the narrative and a number of helpful, informative links.

Compulsory Pooling Study Group to discuss draft report, Aug 28

Note that the Compulsory Pooling Study Group will meet this Wednesday in Raleigh to discuss the draft report. The agenda is posted online and has a link to the draft report. Apologies for the lack of activity on here – not due to a lack of interest, but for being swamped with other pressing items.

-BT

Then again, Fracking may come soon anyway

A report this morning that the Governor himself has canceled a trip to Aspen in order to stick around for the end of the legislative session, and to personally push SB 127 with a provision in there to open fracking sooner than the compromised date of July 2015. Here’s the report from John Murawski in the N&O:

A complex fracking policy has unexpectedly emerged in the waning days of the state legislative session, giving rise to fears that lawmakers are making a last-ditch push to repeal North Carolina’s moratorium on shale gas exploration.

The move comes after a recent attempt to lift the moratorium failed to get past House lawmakers who said they intended to keep their pledge to citizens not to allow shale gas exploration until all safety regulations were in place.

But now the state House and Senate are poised to take up the complicated fracking bill that has not been reviewed by a committee or studied at length by lawmakers. The legislation, added into Senate Bill 127 which deals with changes to the Department of Commerce, surfaced Wednesday, the result of eleventh-hour negotiations with lawmakers and the environmental regulators who would oversee fracking here.

Gov. Pat McCrory unexpectedly visited the legislature for an hour on Wednesday and met with Republicans in a legislative strategy session. On his way out of the building, McCrory said he wanted to get an update on key legislation, adding: “I’m interested in energy. Energy development is what’s going to get us moving on the economy.”

The measure includes new provisions that would repeal a key feature in last year’s energy law that expressly prohibits issuing fracking permits to drilling companies until the N.C. Mining and Energy Commission writes safety rules and the legislature approves those rules. Instead of a prohibition, the bill says the state could issue drilling permits as of July 1, 2015, provided that fracking rules “have become effective.”

The chairman of the Mining and Energy Commission, James Womack, a Republican commissioner in Lee County, was surprised by the legislation.

“We didn’t know about it,” said Womack. “All it does is introduce confusion.”

Rep. Pricey Harrison, a Democratic from Guilford County, said the new language is an open door to issue permits by a specific date, whether the state is ready or not to oversee shale gas exploration.

“They continue to go back on their word,” Harrison said of Republican lawmakers who want to take steps to encourage the energy industry to drill here.

Rep. Mike Hager, a Rutherfordton Republican who has been active in the negotiations, said Senate Bill 127 would not undo the protections in the current law.

He acknowledged the bill may not come to a vote if it remains divisive among Republicans, but he’s confident his colleagues’ anxieties will by assuaged by the time the vote is scheduled Thursday. Hager said some Republicans are wary of last-minute legislation that alters the fracking bill passed last year. The bill, which passed by a single vote, contained explicit language to prohibit the issuance of fracking permits.

“Anything to do with fracking is going to be controversial,” he said. “We don’t want to create the appearance that we’re speeding this up, that we’re recklessly going into this.”

The most complex fracking parts in Senate Bill 127 relate to a severance tax program on the oil and gas industry, based on the grade and quantity of fossil fuel extracted. The money raised by taxing drilling operations would go to local governments, emergency funds and other uses.

Hager said the Mining and Energy Commission will also review severance taxes in the coming year, and the commission’s advice could help modify state law, but this legislation sets a direction.

“We want to attract business, so we don’t want to have the highest severance tax,” Hager said. He said bargain-basement taxes are also a bad idea but said North Carolina should have lower taxes as a matter of public policy.

SB 76, the compromised version, heads to the Governor

The compromised version of SB 76, aka the Fracking Bill, passed its final votes and now heads to the Governor. Here’s the write up from WRAL.com on the contents of the bill:

The final compromise version of Senate Bill 76 is far more modest than the original measure, which would have allowed fracking to move ahead March 1, 2015, without an additional vote by state lawmakers.

That provision is absent from the final measure, which reinstates the original requirement for legislative approval of the rules for fracking before permits can be issued and drilling can begin.

The Senate version also abolished the “landmen registry” for agents handling mineral rights leases for landowners, while the House version put the registry back in. In the final version, the state Mining and Energy Commission is directed to study the concept.

The final version still allows the secretary of the state Department of Environment and Natural Resources to replace the state geologist on the Mining and Energy Commission with another designee of his or her choice. It also removes requirements that commission appointees from the Environmental Resources Commission and Commission for Public Health have respective expertise in water and air resources and waste management.

it also still creates an Energy Policy Council and puts new emphasis on offshore oil and gas exploration.

The compromise, which was closer to the House’s version of the bill overall, won approval in the House with little debate Monday by a vote of 70-40.

The Senate followed suit Tuesday, albeit with less enthusiasm.

“We did the best we could,” said Sen. Buck Newton, R-Wilson, the bill’s original Senate sponsor. “The House didn’t want to go along with some of the improvements we wanted to make.

“It’s a small step forward. It’s not quite as far as we wanted to go, but it’s the best we could do.”

No one spoke against the measure in the Senate. The vote was 37-11.

North Carolina’s regulators trying to do their job, impeded by General Assembly

A nice “tip of the hat” to the process that the MEC is making to do what they’ve been charged to do in the face of powerful legislative elements charging forward despite them. Yes, this piece has plenty of opinion in it, but it provides a nice perspective and is well worth reading. Personally, I want to acknowledge the openness that the MEC has endeavored to honor with public participation. I also acknowledge I am way behind on writing on on-goings with the issue, which I hope to jump back into in the near future.

-BT