Energy & Natural Resources Committee
The Energy & Natural Resources Committee has a strong educational component as well as public policy or project orientation. One of its initial activities is to educate the business community about the nature of the crisis currently facing Maryland and to identify the consequences for the business community should adequate energy not be available. This committee meets quarterly with subcommittees working between meetings.



Committee Staff: Liz Pettengill, (410) 727-2820, x 41
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In the News
Recent media coverage of Exelon/Constellation merger
The Daily Record article, 11/14/11: FERC could delay Constellaton-Exelon decision until April
The Baltimore Sun editorial, 11/7/11: The merger's green lining
The Daily Record, Ellen Sauerbrey, 11/6/11: Constellation a victim of Maryland extortion again
The Baltimore Sun, Jean Marbella, 11/5/11: Constellation and Occupy Baltimore, a tale of our times
The Baltimore Sun article, 11/3/11: Two state senators recommend spinoff of BGE
The Baltimore Sun article, 11/2/11: Exelon executive: 600 positions identified for cuts under merger
The Daily Record article, 11/2/11: Constellation-Exelon merger could lead to 600 redundant positions
The Daily Record, article, 11/1/11: Exelon wanted more renewable energy in takeover bid
Energy Topics:
1. Proposed merger of Exelon and Constellation Energy
Exelon executive makes case for merger with Constellation. Oct. 26 -- Exelon's corporate leaders are willing to work with governor Martin O'Malley and Maryland officials to "tweak" its plans for renewable energy in Maryland and to discuss that issue and others the state has raised in challenging the proposed merger with Constellation Energy Group, a senior Exelon executive told GBC members on October 26.
- Calvin Butler's remarks
- Calvin Butler's PowerPoint presentation.
- PSC Public hearing schedule:
- November 29 - Rotunda of Town Hall, Bel Air;
- December 11 - Wohlman Assembly Hall, War memorial Building, Baltimore;
- December 5 - Joint Committee Hearing Room, Department of Legislative Services Building, Annapolis
- All hearings are scheduled to begin at 7 p.m.
- News links:
- 10/26/11 - WYPR: Exelon CEO open to negotiations
- 10/26/11 - Wall Street Journal: Exelon CEO expects to close merger by early 2012
- 10/26/11 - Baltimore Business Journal: Exelon narrows Baltimore HQ options to 17 sites
- 10/25/11 - Baltimore Sun: Merger hearings to take longer than expected
2. Natural Gas Drilling & The Marcellus Shale Formation
Although natural gas has been used as a fuel for centuries, it has become a current topic of great discussion because of the recent 39 percent growth rate in the U.S. natural gas resources base and the recent close examination of the methods used to extract the gas from shale reserves. Natural gas fuels 20 percent of the U.S. economy and generates between three and four million jobs in the U.S.
Natural gas consists primarily of methane. It is found in association with other hydrocarbon fuels such as coal beds and oil fields. It is non renewable. Colorless, shapeless and odorless, natural gas gives off a great deal of energy and far fewer emissions than other fossil fuels. Natural gas emits half the carbon that coal burning does.
The ability of natural gas producers to extract natural gas from shale rock has dramatically changed the industry. Shale gas was previously considered unreachable. With advances in drilling techniques, the gas is accessible and abundant. The Energy Information Administration (EIA) estimates that there are 2,587 trillion cubic feet of technically recoverable natural gas in the United States. Most estimates of gas reserves in the United States have been revised upward by thirty five to 39 percent in the last two years.
Extraction from shale is especially relevant for the mid-Atlantic states as the Marcellus Shale natural gas reserve covers most of the Appalachian Basin on the east coast of the United States. The Marcellus basin, some of which is in Maryland, is a 400-million-year-old formation that stretches from New York to West Virginia. Marcellus holds between 168 to 516 trillion cubic feet of natural gas depending on how much of it is recoverable. The Marcellus Shale formation underlies Garrett County and part of Allegany County in western Maryland. In these two counties, gas companies have leased the gas rights on more than 100,000 acres. Although natural gas producers have filed permit applications with the Maryland Department of the Environment, not permits have been issued yet. The hold up is the extraction method known as "fracking."
Earlier this summer, Governor Martin O'Malley issued an executive order banning fracking until a comprehensive cumulative study is completed. New Jersey recently passed legislation banning fracking while neighboring New York is seeking to lift its moratorium on the controversial method.
Hydraulic fracturing or "fracking" refers to an extraction method used to bring natural gas to the surface from deep underground in shale beds. Basically the process includes drilling a well and then pumping a mixture of water, acids and chemical additives (in low amounts) into the rock formation at a high pressure. The pressure builds in and about the well. A propping agent (such as sand) is pumped into the fractures to keep them from closing. This releases the gas which is then harvested.
Environmentalists have raised concerns about the levels of toxicity in the fluids used and lack of adequate studies of this method to determine safety levels. There have also been concerns about possible contamination of ground and surface water in drilling areas. In recent testimony before the U.S. Senate Environment and Public Works Committee, Maryland's Acting Secretary of the Department of the Environment, Dr. Robert M. Summers said, "We are proceeding cautiously and deliberately and do not intent do allow drilling and fracking in the Marcellus Shale until the issues are resolved to our satisfaction."
The other side of the equation is equally compelling. It is estimated that as many as 1,600 wells could be drilled in 128,000 acres in Garrett County and 637 wells in 51,000 drillable acres in Allegany County. Lease payments, royalties, taxes, and jobs would bring an economic boom to these western counties.
Learn more about natural gas:- An energy trove to tap with care (Washington Post)
- Insiders sound an alarm amid a natural gas rush (New York Times)
- Cuomo will seek to lift ban on Hydraulic Fracturing (New York Times)
- International Energy Agency
- Natural Gas Supply Association
- Federal Energy Regulatory Commission (FERC)
- Maryland Department of the Environment
- Energy Information Administration
- Marcellus Shale Coalition
- NPR series on Natural Gas
- EPA on Fracking
- New York on Fracking
- Governor O'Malley announces study of Marcellus Shale drilling
- About Chief Oil & Gas, Daria Fish, Community Affairs Officer, Chief Oil & Gas
- Chief Oil & Gas LLC
