Friday, September 16, 2011

Director Says Permit Fee Increases Too High

{West Virginia}...Corky DeMarco, the Executive Director of the West Virginia Oil and Natural Gas Association, says the permit fee increases approved in a bill dealing with regulations for natural gas drilling in the Marcellus shale this week are too high. As proposed, drillers would have to pay $10,000 for the permit for the initial drilling rig on a pad and $5,000 for each additional drilling rig. Right now, those charges are $5,000 and $1,000 respectively. DeMarco says that puts the state in a less competitive position for investment dollars coming to West Virginia when you compare it to the competition within the basin. Supporters of the increases say they are needed to generate more money for additional gas well inspectors and permit process workers which the state cannot afford.