<article><p class="lead">Marcellus Shale producers filed suit yesterday asking a state court to throw out parts of Pennsylvania's new hydraulic fracturing regulations they contend could raise industry's costs by $2mn per well.</p><p>Industry group the Marcellus Shale Coalition's lawsuit challenges core provisions of fracturing regulations issued by the Pennsylvania Department of Environmental Protection (DEP). The lawsuit seeks to halt enforcement of those same provisions, which the group says would impose new compliance costs and potentially interrupt existing drilling operations.</p><p>Marcellus Shale Coalition president David Spigelmyer today said the DEP regulations, which took effect on 8 October, would affect the ability of producers in the state to operate and remain competitive. Chevron, Shell, ExxonMobil, Anadarko, Cabot Oil &amp; Gas and Chesapeake Energy are among the members of the coalition, which also includes midstream companies and service contractors.</p><p>The DEP has been working on the regulations since 2011. The new regulations set requirements for freshwater impoundments at well sites and will require operators to monitor nearby inactive wells during drilling and hydraulic fracturing. They also set new requirements related to spill remediation, waste reporting and drilling locations.</p><p>The Marcellus Shale Coalition estimates the regulatory package could increase their operational costs by 30pc, or $2mn per well. Pennsylvania during the shale drilling boom has seen its natural gas production increase to 13.2 Bcf/d in 2015 from 0.5 Bcf/d in 2008. The state accounted for 15pc of total US natural gas production in 2015.</p><p>The DEP today said it was reviewing the lawsuit. But it said the lawsuit "seeks to have many important protections contained in the regulations stricken or enjoined." The DEP says its rules would protect water resources, natural resources and schools while still encouraging production of natural gas.</p></article>
