General

When the Pennsylvania General Assembly passed Act 13, its omnibus Marcellus Shale law, in February, it marked the end of three years of legislative wrangling and the beginning of a period of legal interpretation.

General Motors (GM) said Tuesday its upcoming compressed natural gas (CNG) bifuel pickup trucks will carry an $11,000 price above the base sticker price for similar gasoline or diesel fueled trucks, but it said the extended-range vehicles will offer a three-to-five year payback on lower fuel and operating costs compared to gasoline and diesel models.

Coordinated regulation of oil and gas development is needed in Colorado, but no new laws are needed to achieve such an approach, according to a draft report from a task force created earlier this year by Gov. John Hickenlooper. The task force is scheduled to issue its final report to Hickenlooper and state lawmakers Wednesday.

The California Public Utilities Commission (CPUC) has named a retired brigadier general Jack Hagan director of the beefed up Consumer Protection and Safety Division (CPSD) at the CPUC. He starts the assignment April 23. Since the San Bruno pipeline explosion, more attention has been focused on this unit in the state regulatory commission. Hagan said his priority will be to “shift safety enforcement” emphasis from compliance to one of “ensuring that all regulated entities operate under a culture based on risk assessment.” Hagan retired in 1999 after 28 years as a Marine Corps infantry officer and was called back to service with the California governor’s Office of Homeland Security in 2003.

Ohio Gov. John Kasich said he is prepared to fight his fellow Republicans in the General Assembly who are unenthusiastic about his plans to restructure taxes and regulations on the oil and natural gas industry.

A legislator in the Pennsylvania General Assembly has introduced a bill designed to encourage the use of natural gas vehicles (NGVs) and the construction of fueling stations to support them within the state that is home to the heart of the Marcellus Shale.

A legislator in the Pennsylvania General Assembly has introduced a bill designed to encourage the use of natural gas vehicles (NGVs) and the construction of fueling stations to support them within the state that his home to the heart of the Marcellus Shale.

Two members of the Ohio General Assembly are drafting a bill that calls for raising the state’s severance tax on natural gas drilling and would create a fund for localities where drilling takes place.

A former Helmerich & Payne Inc. (H&P) drilling manager has been charged with making false statements to the Department of Interior’s Office of Inspector General regarding a key safety device on a Gulf of Mexico drilling rig. Donald Hudson, 49, of Walnut Grove, MS, was employed by H&P as the drilling rig manager for Rig 206 from Oct. 14, 2009 until May 27, 2010. Rig 206’s blowout preventer (BOP), like other BOP systems, has to be pressure tested at regular intervals prior to continued drilling operations, and results of the tests, including any problems or irregularities, also are to be recorded. On March 30, 2011 Hudson allegedly lied to investigators about instructing the rig’s crew to falsify BOP testing results, according to U.S. Attorney Jim Letten, who oversees the Eastern District of Louisiana. Testimony by other crew members revealed that Hudson had told the crew to close valves on the BOP choke manifold to prevent leaks, said Letten. In May 2011 H&P indicated in a regulatory filing that it suspended operations on an offshore rig after an employee reported possible “testing irregularities” and said “certain employees” were fired. No environmental or other harm occurred and the BOP system ultimately was repaired, Letten noted. If Hudson is found guilty, he faces up to five years in prison, as well as a fine of up to $250,000 and up to three years of supervised release following a prison term.