I am in the process of putting together a listing of the legislative changes needed for a comprehensive reform. The fact that the industry has a majority of the Board that appoints their own inspectors does seem like the purest example of a conflict of interest I have seen in a while. How about adding two citizen representatives, one having expertise in water quality issues, and one having expertise in landowner rights issues. We could probably get support from the Farm Bureau for that last one.

I would also add that phrase about no direct financial interest in oil and gas production to the qualifications for representatives of the oil and gas industry. Surely the industry can find someone who is retired or otherwise independent of financial conflicts of interest as their representative. Alternatively, I can just imagine the kinds of editorials we could get if we force the industry to try to publicly justify why they are entitled to representatives with a financial conflict of interest on a State Board! Even legislators are required to recuse themselves if they have a personal financial involvement in a vote. :-)

But to do this, we will need a laundry list of horror stories for the Legislature. These could include landowner complaints of the non-responsiveness of inspectors specifically, and DEP generally, to problems with gas drillers. But we need to demonstrate that the system is broken, or it will never get fixed.

Any horror stories out there? How about other suggestions for reform?

JBK

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"Frank Young" 11/29/09 1:26 PM >>>

At SierraFest in October, and at last week's WVEC board meeting, Beth Little brought up the matter of oil and gas inspectors, and the state "examining board" that employs them. I have highlighted below sections (a) (1) and (2) which outline the makeup of that board.

Note that the Chiefs of the Oil and Gas and of the Water Resources Division of DEP are two ex officio members of the five person Oil & Gas examining board, and are appointed by the Director of DEP, and that the only qualifications for their appointments are that they be "competent and qualified persons"- but with no further explanation of what "competent and qualified" means.

§22-1-8. Supervisory officers. (a) The secretary shall appoint a competent and qualified person to be the chief executive officer of each office (which includes the offices of Oil & Gas and of Water Resources- F.Y.) specified in section seven of this article.

The three bolded paragraphs below summarize the makeup of the O&G examining board. (underlined emphasis mine- F.Y.)

§22C-7-3. Oil and gas inspectors' examining board created; composition; appointment, term and compensation of members; meetings; powers and duties generally.

(a)(1) There is hereby continued an oil and gas inspectors' examining board consisting of five members, two of whom shall be ex officio members and three of whom shall be appointed by the governor, by and with the advice and consent of the Senate. Appointed members may be removed only for the same causes and like manner as elective state officers. One member of the board shall be the representative of the public at large and shall be a person who is knowledgeable about the subject matter of this article and has no direct financial interest in oil and gas production other than the receipt of royalty payments which do not exceed ten percent of his or her annual income and who by reason of previous training or experience may reasonably be said to represent the viewpoint of surface owners or environmental organizations: Provided, That the public member serving on the board on the first day of January, two thousand one, shall remain on the board until the expiration of his or her term and is also eligible for reappointment. One member shall be a person who by reason of previous training and experience may reasonably be said to represent the viewpoint of independent oil and gas operators. One member shall be a person who by reason of previous training and experience may reasonably be said to represent the viewpoint of major oil and gas producers. (2) The chief of the office of oil and gas of the division of environmental protection and the chief of the office of water resources of the division of environmental protection or their designees shall be ex officio members. (3) The appointed members of the board shall be appointed for overlapping terms of six years, except that the original appointments shall be for terms of two, four and six years, respectively. Any member whose term expires may be reappointed by the governor. (4) The board shall pay each member the same compensation and expense reimbursement as is paid to members of the Legislature for their interim duties as recommended by the citizens legislative compensation commission and authorized by law for each day or portion thereof engaged in the discharge of official duties. (5) The chief of the office of oil and gas or the chief's designee serving pursuant to subdivision two of this subsection shall serve as chair of the board: Provided, That for any level three grievance proceeding the chief or the chief's designee may not serve as a chair or vote. The board shall elect a secretary from its members. (6) Members of the board, before performing any duty, shall take and subscribe to the oath required by section five, article IV of the constitution of West Virginia. (7) The board shall meet at such times and places as shall be designated by the chair. It is the duty of the chair to call a meeting of the board on the written request of two members. Notice of each meeting shall be given in writing to each member by the secretary at least five days in advance of the meeting. A majority of members is a quorum for the transaction of business. (b) In addition to other powers and duties expressly set forth elsewhere in this article, the board shall: (1) Establish, and from time to time revise, forms of application for employment as an oil and gas inspector and supervising inspector, which shall include the applicant's social security number, and forms for written examinations to test the qualifications of candidates, with such distinctions, if any, in the forms for oil and gas inspector and supervising inspector as the board may from time to time deem necessary or advisable; (2) Adopt and promulgate reasonable rules relating to the examination, qualification and certification of candidates for appointment, and relating to hearings for removal of inspectors or the supervising inspector, required to be held by this article. All of such rules shall be printed and a copy thereof furnished by the secretary of the board to any person upon request; (3) Conduct, after public notice of the time and place thereof, examinations of candidates for appointment. By unanimous agreement of all members of the board, one or more members of the board or an employee of the division of environmental protection may be designated to give to a candidate the written portion of the examination; (4) Prepare and certify to the director of the division of environmental protection a register of qualified eligible candidates for appointment as oil and gas inspectors or as supervising inspectors, with such differentiation, if any, between the certification of candidates for oil and gas inspectors and for supervising inspectors as the board may from time to time consider necessary or advisable. The register shall list all qualified eligible candidates in the order of their grades, the candidate with the highest grade appearing at the top of the list. After each meeting of the board held to examine such candidates and at least annually, the board shall prepare and submit to the director of the division of environmental protection a revised and corrected register of qualified eligible candidates for appointment, deleting from such revised register all persons: (a) Who are no longer residents of West Virginia; (b) who have allowed a calendar year to expire without, in writing, indicating their continued availability for such appointment; (c) who have been passed over for appointment for three years; (d) who have become ineligible for appointment since the board originally certified that such persons were qualified and eligible for appointment; or (e) who, in the judgment of at least three members of the board, should be removed from the register for good cause; (5) Cause the secretary of the board to keep and preserve the written examination papers, manuscripts, grading sheets and other papers of all applicants for appointment for such period of time as may be established by the board. Specimens of the examinations given, together with the correct solution of each question, shall be preserved permanently by the secretary of the board; (6) Issue a letter or written notice of qualification to each successful eligible candidate; (7) Hear and determine proceedings for the suspension, dismissal or other discipline of inspectors or the supervising inspector in accordance with the provisions of this article; (8) Make an annual report to the governor concerning the administration of oil and gas inspection personnel in the state service; making such recommendations as the board considers to be in the public interest; and (9) Render such advice and assistance to the director of the division of environmental protection as the director shall from time to time determine necessary or desirable in the performance of such duties. If not for love, then what? There is no wealth but life. (John Ruskin 1819-1900)