May 12, 2010

Mr. James H. Cawley, Chairman

Pennsylvania Public Utility Commission

Commonwealth Keystone Building
400 North Street
Harrisburg, PA   17120

Dear Chairman Cawley:

            I write to you today in response to the application of Laser Marcellus Gathering, LLC (Laser) for declaration as a public utility in Pennsylvania. 

            As state Representative for the 120^th Legislative District – a district that is slowly, but surely, being transformed by the Marcellus Shale drilling – I have been working very closely with my communities, state agencies and colleagues in the General Assembly to ensure the protection of residents and the environment from this loosely regulated yet burgeoning industry. 

            It has come to my attention that Laser has applied with the Pennsylvania Public Utility Commission (PUC) for a certificate of public convenience so that they may operate as a declared public utility within the Commonwealth.  I am truly concerned about this application; particularly because I have doubts about the company’s intentions and worry about the precedent that would be established should this certificate be approved. 

            I have concerns with allowing Laser, or any drilling company, to operate as a public utility as I do not believe it would be operating with the public’s best interests in mind.  Rather, I fear that drilling companies would utilize the power of eminent domain that would indirectly be granted to them in order to circumvent discussions and negotiations with homeowners on the issues of land easements, property and mineral rights.  The outcome of this request before the PUC would change the way easements and other property matters are negotiated.  In the end, drilling companies will have the ultimate power over our citizens.  The potential exists where homeowners would be left powerless if they do not cooperate with the driller’s wishes as utilities are not necessarily required to negotiate at all before enforcing eminent domain. 

            It would be different if the drilling companies would agree to being regulated as most utilities are, but the truth is that Laser wants all of the rights and privileges afforded to a public utility (along with any profits they stand to gain) but do not want to be subjected to any regulatory oversight nor do they want the obligation of acting in the public’s best interests.  This is completely unacceptable. 

            Therefore, in the interests of my constituents in the 120^th Legislative District, and for all Pennsylvanians, I respectfully urge the Pennsylvania Public Utility Commission, a state government entity entrusted with protecting the public interest, to deny the application for certificate of public convenience by Laser Marcellus Gathering, LLC. 

                                                                        Sincerely,

PHYLLIS MUNDY

                                                                        State Representative

                                                                        120^th Legislative District

PM:klz

cc:  Tyrone J. Christy, Vice Chairman, PUC

      Wayne E. Gardner, Commissioner, PUC

Kim Pizzingrilli, Commissioner, PUC

Robert F. Powelson, Commissioner, PUC

       Irwin "Sonny" Popowsky, Consumer Advocate