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PennEnergy Resources, LLC

Water Management Plan

In Pennsylvania, an approved Water Management Plan is required under Section 3211(m) of 58 Pa.C.S. §§3201-3274 (2012 Oil and Gas Act). The 2012 Oil and Gas Act states that no person may withdraw or use water from water sources within the Commonwealth for drilling or completing any natural gas well in an unconventional gas formation without a water management plan approved by DEP (58 Pa.C.S. §3203, 3211(m)).

PA Code 25, Chapter 78a.1, defines a water management plan (WMP) as, “a plan associated with drilling or completing a well in an unconventional formation that demonstrates that the withdrawal and use of water sources within this Commonwealth protects those sources, as required under law, and protects public health, safety and welfare.”

On July 8, 2021, PennEnergy Resources, LLC (PennEnergy) submitted WMP amendment applications for proposed water withdrawals from Big Sewickley Creek and the North Fork Big Sewickley Creek in Economy Borough, Beaver County. The proposed use of the of these water resources is for use in unconventional shale gas well development.

On July 12, 2021, and with an addition on July 19, 2021, DEP issued an administrative deficiency notice and awaits additional information from PennEnergy. This means that the application is not yet complete enough for DEP to begin its technical review. On July 22 and 26, 2021, the Pennsylvania Fish and Boat Commission (PFBC) sent the applicant letters regarding the PFBC clearances for Pennsylvania Natural Diversity Inventory (PNDI) receipts. On July 28, 2021, DEP sent a letter clarifying additional information necessary to conduct a technical review. This additional information requested includes, in part, PFBC clearances for PNDI receipts.

On August 26, 2021, PennEnergy responded to DEP’s administrative deficiency notice for both applications with revised water management plan (WMP) amendment applications.

On October 13, 2021, DEP determined that the WMP amendment application is administratively incomplete and fails to demonstrate that PennEnergy’s proposal to withdrawal will not adversely impact a public natural resource and, accordingly, denied the application.

On March 10, 2022, Penn Energy resubmitted the water management plan amendment application for proposed water withdrawals from Big Sewickley Creek in Economy Borough, Beaver County. The proposed use of the of these water resources is for use in unconventional shale gas well development. This application proposes a lower allocation request of 1.5 million gallons per day (MGD).

On May 17, 2022, DEP issued a deficiency notice.

Joint Permit Application (JPA)

On March 14, 2022, PennEnergy submitted an application (E0407222-001) for the proposed intake structure on Big Sewickley Creek and for a temporary aboveground waterline to transport water from Big Sewickley Creek to PennEnergy’s B50 well pad.

On March 30, 2022, DEP issued an administrative deficiency notice and awaits additional information from PennEnergy.

On April 28, 2022, PennEnergy submitted a response to the deficiency notice.

On May 23, 2022, DEP responded noting outstanding deficiencies.

General Permits (GP-05 and GP-08)

On August 20, 2021, PennEnergy submitted applications (GP050407121-005 and GP080407121-004) for general permit approval for a proposed B15 to B46 Pipeline project. In its application, PennEnergy proposed to withdraw water from the North Fork of Big Sewickley Creek. Documents can be accessed through DEP’s eFACTS system using the authorization ID 1367098.

On October 13, 2021, DEP denied the application for authorization of use for a general permit as a general permit is not the appropriate vehicle for the proposed activity.