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Gas Drilling Panel May Require Pollution Insurance

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Natural gas, gas drilling

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BALTIMORE (AP) — A state panel that is devising rules for hydraulic fracturing for natural gas in western Maryland may require drillers to have pollution insurance.

The proposal is on the agenda for Tuesday’s meeting in Baltimore of the legislative committee of the Marcellus Shale Advisory Commission.

A draft bill would require drillers to have environmental pollution liability insurance at least $5 million per loss.

It also would require permitted drillers to post a performance bond of at least $50,000 per well.

The bill would take effect July 1 if it is recommended by the full panel and approved by the General Assembly and the governor.

The bill would govern drilling in the Marcellus shale, a large geological formation underlying parts of at least five states, including Maryland.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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