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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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COMMONWEALTH OF PENNSYLVANIAHOUSE OF REPRESENTATIVES
STATE GOVERNMENT COMMITTEE
SHREWSBURY BOROUGH MUNICIPAL BUILDING
MONDAY, JUNE 26, 20179:00 A.M.
PUBLIC HEARING - SUSQUEHANNA RIVER BASIN COMMISSION
BEFORE: HONORABLE DARYL METCALFE, MAJORITY CHAIRMANHONORABLE CRIS DUSHHONORABLE KRISTIN HILLHONORABLE BRETT MILLERHONORABLE BRAD ROAEHONORABLE FRANK RYANHONORABLE CRAIG STAATSHONORABLE JUDY WARDHONORABLE MATTHEW BRADFORD, MINORITY CHAIRMANHONORABLE DONNA BULLOCKHONORABLE MARY JO DALEYHONORABLE PAMELA DELISSIOHONORABLE MADELEINE DEAN
ALSO PRESENT:HONORABLE DAN MOULHONORABLE STEPHEN BLOOMHONORABLE DAWN W. KEEFERHONORABLE WILLIAM TALLMANHONORABLE KATE KLUNKHONORABLE DAVID H. ZIMMERMAN
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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COMMITTEE STAFF PRESENT:
REPUBLICAN CAUCUSAMY HOCKENBERRY
RESEARCH ANALYST
PAM NEUGARDADMINISTRATIVE ASSISTANT
DEMOCRATIC CAUCUSKIM HILEMAN
EXECUTIVE DIRECTOR
KATHY SEIDLRESEARCH ANALYST
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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I N D E X
OPENING REMARKSBy Chairman Metcalfe 4 - 5
OPENING REMARKSBy Representative Hill 5 - 8
COMMENTSBy Chairman Metcalfe 9 - 10
PRESENTATIONBy Mr. Andrew Dehoff 10 - 14
QUESTIONS 14 - 22
PRESENTATIONBy Mr. Thomas J. Shepstone 22 - 25
QUESTIONS 26 - 35
PRESENTATIONBy Mr. Pete Ramsey 36 - 41
QUESTIONS 41 - 47
PRESENTATIONBy Richard "Buck" Buchanan 47 - 52
QUESTIONS 53 - 59
PRESENTATIONBy Donald Geistwhite, Jr. 59 - 65
QUESTIONS 65 - 70
PRESENTATIONBy Jim Eshleman 71 - 78
QUESTIONS 78 - 80
PRESENTATIONBy Attorney Matt Battersby 81 - 87
QUESTIONS 87 - 92
CONCLUDING REMARKSBy Chairman Metcalfe 93
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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P R O C E E D I N G S-----------------------------------------------------------
CHAIRMAN METCALFE: Meeting is called to order.
Before we call the attendance, if I could ask everybody to
please rise and could I ask Representative Ryan to lead us in
the Pledge of Allegiance.
PLEDGE OF ALLEGIANCE RECITED
CHAIRMAN RYAN: Thank you, Mr. Chairman.
CHAIRMAN METCALFE: If I could ask our Member
Secretary to call the roll please.
ROLL CALL TAKEN
CHAIRMAN METCALFE: Thank you, Representative Hill.
We are joined by other members besides the committee members
today. Representative Moul, Representative Bloom,
Representative Keefer, Representative Tallman, Representative
Klunk, Representative Zimmerman. Did I miss anybody? We may
have some other members coming in and out as the hearing is
proceeding today with other competing interests for the members
at times today. So we appreciate the members who are here
today. Thank you for joining us.
And we will start off this morning's hearing on the
Susquehanna River Basin Commission. This is the second hearing
that we're having of the House State Government Committee
regarding concerns with the Commission. And our opening
statement this morning will be by Representative Hill whose
district we're currently sitting in. So, Representative Hill,
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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whenever you're ready.
Before you start your statement I also want to
mention we do have a staff person here from Senator Wagner's
office. And we also have Mr. Reilly here on behalf of
Congressman Perry's office. So we appreciate both --- both of
those individuals being here and the interest that Congressman
Perry and Senator Wagner have in this issue. Representative
Hill.
REPRESENTATIVE HILL: Thank you, Mr. Chairman. Good
morning. I'd like to thank the members of the House State
Government Committee as well as Congressman Perry's office and
Senator Wagner's office for their attendance this morning.
And Chairman Metcalfe, thank you for hosting this
hearing in southern York County.
Thank you to Shrewsbury Borough, Mayor Pete
Schnabel, Borough Council Vice President Mike Sharkey. I saw
him here somewhere. Nate Kirschman, who does so much for this
borough.
A special thank you to the people who keep the
trains running here, Cindy Bosley, our borough secretary, and
Public Works Superintendent Brian Sweitzer. We appreciate your
gracious hospitality.
The Susquehanna River Basin Commission, or the SRBC,
was created in 1970, when the Susquehanna River Basin Compact
was drafted and signed into law. The compact, as adopted by
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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the Congress of the United States and the legislatures of New
York, Pennsylvania and Maryland, provides the mechanism to
guide the conservation, development and administration of the
water resources of the river basin.
On its website the SRBC lists its mission as
enhancing public welfare through comprehensive planning, water
supply allocation and management of the water resources of the
Susquehanna River Basin.
We are here today because we believe that the
Commission has overstepped the bounds of its compact at the
expense of the people of Pennsylvania.
Over two years ago I received a call from the small
Borough of Shrewsbury. Shrewsbury, where we sit here today, is
really a hidden gem. It's a great place to live, to work,
raise a family. It's listed on the National Register of
Historic Places. It's got a great little downtown. Fifty (50)
percent of the Main Street buildings were built prior to 1860.
But what really makes Shrewsbury special is the
leadership of this community. It's been excellent managers and
stewards of borough resources. So Borough Council President
Buck Buchanan explained to me that they were in the process of
re-permitting two of the wells in their municipal water system.
He shared that the Commission was requiring daily
reports of the depth of each of the Borough's six wells, two of
which had been in use for over 45 years. After examining how
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many man hours, this would require the Borough, which has less
than 4,000 residents, was forced to purchase a computerized
monitoring system. That purchase resulted in three rate hikes
in addition to long-term water line replacement projects being
put on hold, all the result of needing to accumulate data that
essentially we're really not sure what they do with it. When
the Borough asked why, the Commission's justification was,
well, we now know more about our wells.
Buchanan went on to tell me of the more than
$141,000 price tag associated with permitting those two wells
and the Commission's decision to reduce the length of permits
from 30 to 15 years and the prospect of re-permitting the
Borough's additional wells. Thus, began over a year-and-a-half
of research by myself, Representative Moul, many other
legislators that shared mutual concerns about the Commission
into every aspect of the Commission, from its original compact
to its finances and its dockets.
The research led to a meeting with Acting
Pennsylvania DEP Secretary McDonnell and his alternate to the
SRBC, Ms. Heffner, as well as many other legislators, senators,
representatives from boroughs, townships and businesses in the
Susquehanna River Basin.
The meeting was cordial, but still we were left with
many unanswered questions. In particular, Representative Moul
asked, do you believe that the SRBC needs to have more
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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regulations and funding to continue their business after
hearing of the balances in their reserve funds of over $40
million of taxpayer money acquired through fees and fines and
all of the complaints of overregulation. Ms. Heffner paused,
thought and replied, no.
Representative Moul's follow-up question was why did
you rubber stamp a yes vote for the SRBC to increase its fees
in the new regulations at the last meeting? To date, we have
no response.
After this meeting, we heard from more
municipalities, more golf courses, more small businesses, small
utility companies. Their stories were all too familiar. As a
matter of fact, we could probably finish them for them.
We've heard from a number of other House members
with similar tales from their districts. So we're here today
at the second of two hearings on the Susquehanna River Basin
Commission to finish gathering the information from testimony
of the SRBC and affected parties so that we can all go back to
Harrisburg and craft a solution that will bring the SRBC back
to the mission of the original compact of ensuring adequate
water supply without bankrupting our municipalities and driving
up the cost of our local water bills.
Mr. Chairman, thank you again for allowing these
hearings to proceed and bringing this hearing to Shrewsbury
Borough.
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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CHAIRMAN METCALFE: Thank you, Representative Hill,
for the excellent overview. I appreciate it.
As we start the hearing today, I just wanted to
remind the members and our testifiers --- the testifiers that
we've invited today are the guests of the Committee. And we're
going to treat them as our guests. So we're not here to debate
with our guest testifiers. We're here to gather information
from them. So any interaction with our testifiers, I would ask
respectfully for the members to limit that to questions, not
debate, not that type of engagement. So information gathering
is what we're here for, and we appreciate their time and
appreciate all the members' time in being here today.
As I said, some members may have to leave before the
hearing is over. Don't take that as an indication of anything
other than they have to leave for other business. So I do
appreciate the members' time. And we may have some other
members coming in.
If we have any members that are on the Committee
come in and look for a seat I would ask the members that are
joining us today that are Committee to help them find a seat,
if you would, please. And Representative Dean is here also to
be added to the attendance.
The testifiers will be sitting at the table before
us, so if we could --- I know there's a cell phone there,
there's a coffee cup. If we could get rid of the cell phone
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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and --- maybe it's a recording device that somebody has got
there possibly. Whatever the device is, it's before the
microphone, if it's anybody's cell phone, whatever it is, you
might want to gather that. But as our testifiers join us
there, there's water there for the testifiers if you need
additional water, but that table is our testifier table. And
we would ask our first testifier to join us at that table, the
gentleman sitting right behind. You might be able to squeeze
there, so we'll see how it works.
Mr. Andrew Dehoff, Executive Director of the
Susquehanna River Basin Commission. And I would also ask our
testifiers to limit your testimony to seven to eight minutes
and leave the balance of the time of your 15-minute slot for Q
and A with us. If you get to the eight-minute limit, then I
will interrupt you at that point to advise you that your time
is up for testimony and we'll be entering into the Q and A
section of the testimony time so that we can stay on track. We
have a lot of testifiers this morning, busy schedules for
everybody here, and the audience I'm sure also. So thank you
for your time today. Thank you, sir, for joining us, again, we
appreciate it. You can begin when you're ready, sir.
MR. DEHOFF: All right. Thank you, Chairman
Metcalfe, members of the Committee. I will strive to come in
under the seven, eight minutes because I am very interested in
leaving ample time to answer questions and address concerns
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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that the Committee members and other representatives have.
But I would like to start off with a few oral
remarks. You do have written testimony that's lengthier, but
I'll just summarize that and also offer some updates from ---
that have occurred since our --- since the previous hearing.
We held a --- one of our Commission's quarterly
business meetings Friday, June 16th, and the Commissioners made
some decisions regarding fees that I think members of this
Committee might be interested in.
First, there was a proposal to increase our
application fees across the board, in accordance with an
increase in the Consumer Price Index. That is a practice that
was put in place by resolution in 2005, but it is not an
automatic increase. The Commissioners actually have to vote on
whether to adopt such increases. This year they decided not
to. They looked at our finances. They looked at the
circumstances in the basin, concerns that have been addressed,
and adopted not to increase fees in accordance with the rise in
the Consumer Price Index.
They also elected to deepen the municipal discount
that municipalities pay on annual fees so that a municipality
with an SRBC permit, instead of paying the standard fee of
$1,050 will pay only $590.
Two quick notes regarding concerns about SRBC
collecting excessive fees from municipalities. I think it's
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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important to note that more than 90 percent of our fees come
from not municipalities but from large water users, such as the
energy industry, in particular, power plants in the natural gas
industry.
Second, SRBC spends more money reviewing municipal
applications than what we collect from municipal fees. We're
losing money on municipal oversight, not making money.
Nevertheless, we intend to maintain the discounts we have in
place and to find additional ways to reduce costs to both
municipalities and to the Commission.
Our ability to keep fees steady and in some cases
reduce them is due to strong fiscal responsibility of the
Commission. Like businesses and households across the
Commonwealth, we've been tightening our belt in the wake of
tough economic times.
Since 2010 we've implemented many cost-saving
measures, which are enumerated in my written testimony. There
are just a couple I'll highlight here. We've implemented pay
for performance merit increases for salaries instead of
across-the-board increases. We began requiring employees to
contribute at first ten percent and now recently raised to 15
percent of the cost of their health insurance, which is a
higher rate than the contributions from both state employees
and from state legislators. And we've undertook various
administrative cost-saving measures related to our insurance
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policies, vehicle maintenance, utility contracts, you know,
general administrative and maintenance-type things, to realize
a savings of over $50,000 annually.
Regarding our technical programs, you have heard and
will hear today some allegations that SRBC conducts duplicate
permitting activities. That is simply not true. SRBC and the
Pennsylvania Department of Environmental Protection have two
different purposes for their permits. Where our authorities do
overlap, such as the review of municipal surface water intakes,
DEP takes precedence. SRBC defers to DEP under the terms of
the 1999 Memorandum of Understanding between the two agencies.
SRBC, in that case, does not require submittal of application
or collect any application fees from those municipalities. Any
permit ultimately issued by DEP satisfies SRBC's requirements.
I'll wrap up by committing to a few things. First,
I will respond in writing to the allegations made today and on
the 12th to address any misconceptions or misunderstandings.
One that I want to mention right now was the assertion that the
Commission does not grant waiver requests but rather denies
them and pockets the associated fees.
I asked staff to look at recent history and found
that the Commission received 52 waiver requests since I took
the position of Executive Director and we granted 50 of those.
It's a 90 percent --- 96 percent approval rate.
The second commitment I'll make is to engage
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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municipalities and legislators in reviewing and revising our
rules. In addition to the fee decisions, I had a good
discussion with our Commissioners when we last met about the
current set of rules. Particularly those are --- those are
causing concern. They agreed that we should look at those and
are committed to reviewing them and changing them as warranted.
So I look forward on --- to your input on how we can make those
changes, but at the same time ensuring our mutual goals, which
is that towns have the water the residents and need to operate
during times of drought.
Thank you. I'm happy to answer any questions.
CHAIRMAN METCALFE: Thank you, sir. Representative
Ward?
REPRESENTATIVE WARD: Thank you so much for being
here, sir. The last meeting you confirmed that SRBC is not
subject to the Pennsylvania Right to Know Law. The salaries of
your employees are not available to the public and cannot be
obtained under the Pennsylvania Right to Know Law. Are you, as
the Executive Director, committed and willing to provide a copy
of the salaries to the members of the House State Government
Committee, sir?
MR. DEHOFF: We're not subject to the Right to Know
Law, you're right. We have our own access to records policy.
For the past two years members of this committee and other
legislators have requested such financial information and I
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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have freely given it without making them go through our access
to records policy. I've already given salary information to
Representative Dush, but I'd be happy to make that available to
the rest of you.
REPRESENTATIVE WARD: That would be appreciated.
Thank you, sir.
CHAIRMAN METCALFE: Representative Ryan?
REPRESENTATIVE RYAN: Sir, again thank you very much
for coming down today. We appreciate your testimony. Do you
have a set of audited financial statements that are done either
under GASB standards or the Financial Accounting Standards
Board and if so, is there a management report that accompanies
it as well that we might be able to get a copy of?
MR. DEHOFF: The Susquehanna River Basin Compact,
which is the legislation that created SRBC, requires an annual
independent audit by a certified accounting firm, so we do ---
we do conduct that annually.
I have provided, when requested, the audits from the
last five years to various members of this Committee, but I
will happily make those available again.
REPRESENTATIVE RYAN: And does that include the
management report as well? There's typically a management
report that includes things such as controlled deficiencies ---
excuse me, suggested deficiencies ---?
MR. DEHOFF: Absolutely, it includes an assessment
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SARGENT'S COURT REPORTING SERVICE, INC.(814) 536-8908
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of all our practices and makes recommendations, yeah.
REPRESENTATIVE RYAN: Thank you very much.
CHAIRMAN METCALFE: Thank you, Representative Ryan.
Representative DeLissio.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
In the opening remarks we heard that Shrewsbury needed to
re-permit two of their wells.
MR. DEHOFF: Right.
REPRESENTATIVE DELISSIO: And the process has
changed. I believe these were originally permitted almost four
decades ago.
MR. DEHOFF: Right.
REPRESENTATIVE DELISSIO: What, Mr. Dehoff, would
you say has changed in those 40 years that has created the
situation whereby I would imagine a lot of local and small
municipalities might be surprised if they've not been through
this process before? What are some of those big changes in the
last 40 years?
MR. DEHOFF: Well, the changes now --- the changes
are that we now require science and data before we'll issue a
permit. The records are very, very spotty, from the '70s and
'80s, which is very unfortunate. It's a mistake that we are
not repeating. We document --- staff documents everything we
do now when we issue a permit. But the reality is that a lot
of towns are relying on old wells that have never been truly
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proven, never put through their paces, if you will, during a
drought. Things change over time. Demands increase. The
little landscape changes. Recharge areas, which is the open
space that, when it rains, allow infiltration to recharge the
aquifer, that's being paved over. Additional wells are being
installed by neighbor --- neighboring municipalities or --- or
landowners so that now you have multiple wells competing for
the same water resources. So a lot of that is unknown. And we
now have standards asking that some of that information be
collected.
In many cases municipalities have not used their
wells at the rate that they were permitted at 40 years ago,
which puts us in a difficult position of saying, well, yes, you
were given a piece of paper that says your well can pump this,
but we have no demonstration that it can do that.
The last thing we want is for a community to find
itself in a drought and expect to rely on a well and find that
it can't --- it can't offer the water they expected. So our
ultimate goal is to have the sources go through the proper
scientific process so that we know and the municipalities know
what they can rely on.
I think the big question is how do we get there? We
took some aggressive steps. There was a rule put in place in
2006 that subjects --- subjects certain unapproved sources to
SRBC oversight. And I think when these renewals began in
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2009/2010 we didn't handle it right. And we've learned some
lessons and I think we have some ideas. We do have some ideas
for how we can change things. But again, I'd like to work with
municipalities to figure out the best way to make that happen
so that we all have the certainty that these sources will serve
residents and businesses during a time of drought.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
CHAIRMAN METCALFE: Thank you, Representative
DeLissio. And for the members, we do have a number of members
that want to ask questions, so if we could limit our questions
to one. If we have additional time, we can come back for a
second round.
Representative Hill?
REPRESENTATIVE HILL: Thank you, Mr. Chairman. Mr.
Dehoff, thank you.
I wanted to follow up on a question that
Representative Ward asked, and that is it's one thing for you
to send that information to us as State Representatives, but
really the people who are paying the bills are our taxpayers.
Every other state agency publishes their salaries of
their employees on PennWATCH. Would you be willing to put the
salaries of your staff on PennWATCH?
MR. DEHOFF: Well, you said every other state
agency. Are we a state agency or aren't we?
REPRESENTATIVE HILL: Well, that's certainly a
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conversation that we can have, ---
MR. DEHOFF: You've asserted that we're not.
REPRESENTATIVE HILL: --- but what I will say to you
is that you contend that you are for the purposes of paying
salaries, benefits and pensions. So are you or aren't you?
That's something we can have a further conversation about.
Would you be willing to put your salary information
on PennWATCH?
MR. DEHOFF: I'm not familiar with PennWATCH, but I
am familiar with Title 71. For the purposes of a pension, it
identifies us as a state agency. So I think that's a fair
question.
REPRESENTATIVE HILL: Are you compliant --- is the
SRBC compliant with the Sunshine Act?
MR. DEHOFF: We're not subject to it.
REPRESENTATIVE HILL: So do I understand correctly,
you are not subject to the Sunshine Act or the Right to Know
Law in Pennsylvania?
MR. DEHOFF: That's correct.
REPRESENTATIVE HILL: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Hill.
Representative Daley. Representative Daley is in transition.
She was sitting in for the Minority Chairman, so she'll finish
her question if the Minority Chair doesn't mind and then she'll
move on.
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REPRESENTATIVE DALEY: Thank you, Mr. Chairman, and
thank you, Mr. Chairman.
Thank you for being here, Mr. Dehoff. So I just
wanted to follow up a little bit on Representative DeLissio's
questions. Can you give us examples of what happens when water
supply, water quality, flooding, watershed management are not
regulated so that we ---? I mean, are there any examples that
you can provide to us today?
MR. DEHOFF: Sure. Conflicts inevitably arise, for
one thing. You'll have communities or even states in conflict
with each other and pursuing legal options in court, which
costs everybody a lot of time and money.
If you have no regulation or oversight on pumping of
a well, you can damage the aquifer, which means you can draw
water levels down so low to points where they've never been
drawn before. That exposes the cracks and the fractures that
transmit water to the well, exposes them to air and oxygen that
they've never been exposed to ever, over thousands of years,
which introduces things like bacteria, rust or other chemical
depositions that damage the ability of the well to produce
water.
It can also impact the aquifer at large, which
impacts other users so that they can't rely on the aquifer
anymore. So there are some serious, potentially economic
implications to doing something like that.
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We have a food manufacturing --- or a food
processing facility in the northern part of the basin that
over-pumped some of its wells, introduced water quality issues
and is now scrambling to find replacement sources and backup
sources and supplemental sources at great expense. So you
know, we think it's important that some of those limits --- not
--- not to limit growth, not to limit usage, but to ensure lack
of conflicts and not damaging the water resource itself.
REPRESENTATIVE DALEY: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Daley.
Looks like for our last question, Representative Miller.
REPRESENTATIVE MILLER: Thank you, Mr. Chairman. A
question for you. Most municipalities state, whatever, homes,
anyone when they have a budget situation, they had money in
certain reserves, they'll move money from one fund to another
fund to cover expenses if money is not being used in that fund.
Are you willing to direct the SRBC, since you have about $40
million in reserves, to supplement other areas of your budget
where you may need funding?
MR. DEHOFF: We already do that.
REPRESENTATIVE MILLER: Thank you.
CHAIRMAN METCALFE: Thank you, Representative
Miller. That's all the time we have for Q and A with this
testifier. Thank you, sir, for joining us. Again, we
appreciate it. We look forward to your written statements
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regarding the hearings.
MR. DEHOFF: Absolutely.
CHAIRMAN METCALFE: Look forward to reviewing those.
Thank you. Our next testifier will be Mr. Thomas Shepstone,
principal from Shepstone Management Company, Incorporated.
Thank you, sir, for joining us today. You can begin
when you're ready, sir.
MR. SHEPSTONE: My ---.
CHAIRMAN METCALFE: Please make sure that your green
light's on on the microphone there.
MR. SHEPSTONE: Thank you. My name is Tom
Shepstone. I'm a professional planner from northeastern
Pennsylvania. I have over 40 years of experience working with
communities throughout the Commonwealth. I've also represented
numerous private clients, including some in the natural gas
industry.
There's a battle going on for sovereignty in this
country between states and river basin commissions they created
long ago to jointly develop water resources. It's like a scene
out of that old movie 2001, some of you will recall, where a
computer named Hal suddenly assumes control over its makers.
River basin commissions such as the ones created for
the Delaware and Susquehanna River watersheds are accumulating
power to themselves over land use and economic development with
metastasizing regulations and fees that are rendering state
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governments more and more irrelevant, in my opinion.
The Delaware River Basin Compact between the states
of --- is between the States of Delaware, New Jersey, New York
and Pennsylvania and the federal government was signed in '61.
This SRBC Compact between the States of Maryland, New York and
PA and the federal government was signed in 1970.
And I want to point out that the majority of both
commissions are the same individuals, starting with the
governors, of course, and then their DEP or DEC
representatives, the same individuals, and going on down, I
might add, to one person in Pennsylvania whose name was
mentioned earlier today, and that is Kelly Heffner. She is the
SRBC and the DRBC for purposes of Pennsylvania. And she has
been through both Democrat and Republican administrations. And
I think that's an important point to take into account here.
These compacts are also similar in that they're
subject to the same restrictive reservations. And in my
written testimony, I'm not going to read it to you, but you
will see the reservation, which makes it explicitly clear that
these river basin commissions are intended to develop water
resources and ensure water supplies. They're not intended to
be primarily regulators. And that is a key fact that's being
overlooked.
When they --- when the --- when you look at the
compacts, they talk over and over again about projects,
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projects, projects. They don't talk about regulation,
regulation, regulation. But what we're getting is the latter.
And I would point out that the --- it was
anticipated when these river basin commissions were formed that
they would work together to develop water resources to meet the
needs of growing regions with competing demands for water, and
it was expected they'd keep their nose out of state business
while facilitating cooperative development in new projects.
There's no indication of intent to give the SRBC or
the DRBC control over every water resource. If no joint
funding is involved, in fact, these river basin commissions are
legislatively directed to stay out of the way. They have no
authority to pursue projects which are not necessarily
cooperative, and yet they're regulating more and more of our
daily lives, as you've heard in testimony earlier.
They're effectively using water use as well as
development by imposing fees on consumption to support their
bureaucracies. They are, slowly but surely, extending their
control into land use by requiring permits for any amount of
water use in the SRBC region if it's connected to natural gas
development and prohibiting such development in the DRBC region
by imposing an effective moratorium while pretending to engage
in development of regulations with no end in sight after seven
years.
The word projects has now come to mean review and
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regulation. And I would note that the Executive Director
testified before that he lost money on reviews. Well, the
obvious retort is maybe you're spending too much time on
reviews. And I think that's --- that's what needs to be said
here.
The sovereignty of the states themselves is being
erased bit by bit as these river basin commissions grab more
power and establish themselves as overlords over the states.
Worst of all, it's been done with the acquiescence
of two states, New York and Pennsylvania, who seem only too
pleased to surrender their own authority so they don't have to
make decisions themselves.
Such cowardice is to be expected from New York,
where special interest politics is the only form known and the
DEC Commissioner is a puppet of those interests, but we haven't
traditionally operated that way in Pennsylvania, at least not
yet.
It's time for the DEP to start protecting the rights
of all Pennsylvania --- Pennsylvanians from these power-thirsty
river basin commissions. And I would like to see the
legislature withhold funding, particularly from the DRBC, from
these agencies so that --- until they start behaving. They are
out of control, particularly the DRBC, where I come from, and I
think they should not be given another dime, that's my opinion,
until they start behaving. So thank you very much.
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CHAIRMAN METCALFE: Thank you, sir, for joining us
today.
Representative Dush? Representative Hill?
REPRESENTATIVE HILL: Mr. Shepstone, thank you for
your testimony. Two years ago I made that request for the
Susquehanna River Basin Commission, and Chairman Adolph at the
time reduced their funding a hundred thousand dollars.
We subsequently made that same request for this ---
this budget cycle as well. What we were told at the last
hearing by Mr. Dehoff was that a decision was made that --- for
the SRBC where actually 37 percent of all funding would be
coming from the Commonwealth of Pennsylvania, ---
MR. SHEPSTONE: Right.
REPRESENTATIVE HILL: --- reducing the funding costs
for the other states. It struck me that we still only have a
quarter of the representation but we're spending 37 percent for
the funding, you know, which we fought a revolution for
taxation without representation. So I have significant
concerns about us continuing to provide the lion's share of the
funding and only having limited --- a smaller proportion of
representation. Is that happening as well at the DRBC?
MR. SHEPSTONE: Yes, it is. And I'm so glad you
brought that out because the --- in fact, Pennsylvania has been
carrying the lion's share there as well. And New York has
never met its share, never, in recent memory. The federal
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government doesn't meet its share. And the other states, New
Jersey and Delaware, I believe it periodically reduced their
shares as well.
Now, sometimes this has been due to, you know,
budget crises at individual states and that's understandable
during a recession, perhaps, but there's no question that
Pennsylvania has been repeatedly taken advantage of by --- by a
bureaucratic regional agency that wants to take away its
sovereignty. And it's time for the Commonwealth to stand up.
And I'm, frankly, annoyed that we have the same
representative through Democrat and Republican administrations
always representing us on those two commissions, and I'm not
convinced we're getting good representation. And I want to say
that for the record.
REPRESENTATIVE HILL: Mr. Chairman, may I follow up?
CHAIRMAN METCALFE: We have other members that have
questions.
REPRESENTATIVE HILL: Thank you, Mr. Chairman.
CHAIRMAN METCALFE: Representative DeLissio?
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Thank you, Mr. Shepstone.
You had mentioned that you've observed this work
closely with, both, I guess, river basin commissions over the
last number of years. Do you think the regulatory process, if
controlled by the states or the states were more involved,
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would it anticipate a different outcome?
MR. SHEPSTONE: I ---.
REPRESENTATIVE DELISSIO: Do you see efforts as
duplicative or just in the wrong place?
MR. SHEPSTONE: I do because I think the --- I don't
think it originally was that way. I think it was originally
pretty much as the Executive Director outlined. I thought
there was a deference.
But I think it's evolved over the years to where
there's less deference and it's gone the other way. And as
I've seen the state agencies, and I've been in meetings with
the state agencies on representing different clients, where you
know, they'll say, well, we have to --- you know, we have to
check with the --- you know, the River Basin Commission on
this.
And --- and I --- there is a --- there is a
deference going the other way now. That's the way I see it and
others may see it differently, but I think we've --- we've sort
of turned a corner, and it's not a good corner to have turned.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
CHAIRMAN METCALFE: Thank you, Representative
DeLissio.
Representative Dush?
REPRESENTATIVE DUSH: Thank you, Chairman. Mr.
Shetler --- or Shepstone, sorry, I want to thank you. You
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brought up something that's been a keystone, a part of what I'm
doing in the House, the state's legislative and executive ---
the sovereignty of the legislatures. I've seen this on the
legislators for decades now abrogating that responsibility to
the executive branch, and now we have it apparently with the
SRBC.
We created the federal government, we created these
compacts, and yet somehow they say that they're not subject to
us. Could you expand a little bit on some of the areas where
you see them usurping the legislative sovereignty of the
Commonwealth?
MR. SHEPSTONE: Yes. I'll give a couple examples.
In the DRBC case, what's happened is they're gradually trying
to get into land use issues. And for example, they're now
saying that because of the --- there's a pipeline that's the
Penn East Pipeline, which is supposed to go underneath the
Delaware River, that that somehow makes that a water supply
issue. It does not. A pipeline does not --- has nothing to do
with water supply. And --- and this is a pure caving in to
political special interests and it should not happen.
In the case of the SRBC --- and again, I want to say
in defense of the SRBC that they have been --- you know, they
have at least developed regulations for gas drilling and at
least have been, you know, pretty reasonable overall on it, but
the --- for them to say that any amount of water use when it
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comes to gas drilling makes it a water project, are you
kidding? This is a clear intrusion into the authority of the
states, and it has nothing to do with regional water resource
planning. So I think both of them have abused their
privileges.
REPRESENTATIVE DUSH: Thank you. Thank you,
Chairman.
CHAIRMAN METCALFE: Thank you, Representative Dush.
For follow-up, Representative Hill?
REPRESENTATIVE HILL: Thank you again, Mr.
Shepstone.
In prior testimony the SRBC has contended that if we
reduce our appropriation to them, that they will, in turn,
raise the fees that are imposed on our businesses and
municipalities. Do you believe that to be true?
MR. SHEPSTONE: I doubt it. That is --- that's not,
you know, been the pattern in many other cases, for sure. And
in fact, if they have $40 million of reserves, I don't think
they need to. But I --- you know, that seems to always be the
answer that's given when it comes down to money, that somehow
they need that --- that money. And I noticed in the case of
the DRBC that when they were lobbying, they even went to
special interest environmental groups like the Delaware River
Keeper, which is also operating in the SRBC region and across
the entire Commonwealth. They went to them to beg them to
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lobby you folks to get --- to get the money. That's --- that's
wrong, you know. And again, it's time for Pennsylvania to grab
the reins of these agencies. Thank you.
REPRESENTATIVE HILL: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Hill.
Representative Daley? We still have further
questions, sir.
MR. SHEPSTONE: I'm sorry. I apologize. I wasn't
trying to get away.
CHAIRMAN METCALFE: Thank you. As long as you're
--- as long as you're okay with answering a couple more
questions.
MR. SHEPSTONE: Sure. Sure. Absolutely.
REPRESENTATIVE DALEY: Mr. Shepstone, thank you for
being here today. I have a question related. Part of my
understanding of why these compacts or the Delaware River Basin
Commission was founded was because of disputes between --- or
overuse of water possibly between New York and Pennsylvania and
New Jersey and Pennsylvania suits the Supreme Court decided.
MR. SHEPSTONE: Yep.
REPRESENTATIVE DALEY: And, but there's also --- you
read all the time about western states that are having water
disputes and there's droughts and ---.
MR. SHEPSTONE: Yeah.
REPRESENTATIVE DALEY: So it seems --- my
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understanding of it, and granted I'm here to learn today, is
that the compacts actually seem to help when you have multiple
states. Rivers don't stay in one place. They start in one
state, end up --- go through other states. Exactly what we
have here. Do you have any comments on that being actually a
good way of going about it instead of tying things up in the
courts?
MR. SHEPSTONE: I do. And I agree with everything
you've said. The --- again, I'm a little bit more familiar
with the DRBC on this, but that was --- and you cited that.
And that is a perfect example of why some of these river basin
commissions were formed.
The Delaware River Compact was formed almost out of
necessity to deal with, you know, a court issue that just
wasn't being resolved. And I think it was appropriate to do it
that way. And I would --- and I would urge some of you, and if
any of you want to see it, I'll be happy to provide it, to go
back to the --- some of the speech making by Jim Wright, the
first Executive Director of the DRBC when it was formed. And
he clearly articulated what was the policy of that agency for
many decades, probably its first three-and-a-half decades at
least, maybe four, under multiple Executive Directors, that
they were, in fact, about doing that very thing. They were
about dealing with water resource planning on a cooperative
basis and trying to avoid court disputes. And they did a
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pretty darn good job of it for a long time.
And I think at a certain point, the DRBC's case ---
it was when Carol Collier became the Executive Director, it
went off on an entirely different mission. And I think that's
when things started to go awry. And if we can get back --- and
I recall --- I've worked with the DRBC. I brought them into
--- when we had discussions of the Upper Delaware National
Scenic and Recreation River, I urged bringing in the DRBC to
that because they were a competent agency.
I would not do that today. It --- it ended up being
--- it went in a wrong direction at a certain point, and it's
unfortunate. And I think they need to get back to the mission
--- back to the core mission, which was how you described it.
REPRESENTATIVE DALEY: Thank you. Can I just have a
very quick follow-up?
CHAIRMAN METCALFE: Yes.
REPRESENTATIVE DALEY: Thanks, Mr. Chairman. So my
only --- and this is a comment. It's great to think that we
can go back, but the problem is there's a lot of things we'd
have to go back. And I guess that's where my question would
be. We didn't have the natural gas industry to the extent back
when these commissions were formed, and so the water management
seems to me to be more complicated than it might have been back
when some of these were formed where it was just about water
management. Am I completely off track with that or am I on
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track?
MR. SHEPSTONE: Well, I think it assumes that
there's some special problem with natural gas drilling. It is
--- there's not. They use --- they withdraw water. They're a
large water user, of course. But so are golf courses. So are
many other uses. And those have always been accommodated
without, you know, these kinds of struggles and the hyperbole.
And I think it's unfortunate that it was treated differently.
The way it should be handled, we should be looking
at the water withdrawals, the water disposal, just like we do
for anything else, and have --- if it's over, you know, the
hundred thousand gallons or whatever that threshold is that
makes it, you know, a large, impactful thing, then, of course,
we should be looking at that, but not treating it --- we
shouldn't be targeting one industry. And I didn't come here
today to represent the industry. I came here in a more general
concern. But I think we need to, you know, stop targeting
industries because that's the politically correct thing to do
and get back to the --- again, the core mission, regulate
everybody the same and keep it to allocating those water
resources, which was what it's supposed to be about.
REPRESENTATIVE DALEY: Thank you.
MR. SHEPSTONE: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Daley.
For our final question, Representative Keefer?
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REPRESENTATIVE KEEFER: You said you have private
clients as well as ---?
MR. SHEPSTONE: Yes.
REPRESENTATIVE KEEFER: What's your experience with
fines?
MR. SHEPSTONE: With fines?
REPRESENTATIVE KEEFER: Yes. Is there any
consistency to those? I mean, in my research I have found they
seem to be all over the board.
MR. SHEPSTONE: Yeah.
REPRESENTATIVE KEEFER: Some are very egregious.
Some are nominal.
MR. SHEPSTONE: Yeah.
REPRESENTATIVE KEEFER: And it doesn't seem to
pertain to waters that have been affected or administrative
technical errors.
MR. SHEPSTONE: Yeah. It's interesting because I've
done some analysis of that with respect to the gas industry,
and it is, it's all over the map. I don't quite understand the
philosophy. Sometimes it seems like what's happening is
there's a fine imposed initially to be able to say we did
something, and then later on, you know, it's modified based on
the facts, you know. So that's what I've observed. And it
seems like there should be more consistency, to be honest with
you.
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CHAIRMAN METCALFE: Thank you, Representative
Keefer. Thank you, sir, for your testimony.
MR. SHEPSTONE: Thank you. I am excused now?
CHAIRMAN METCALFE: Thank you. Now you're excused.
Thank you. Thank you for joining us today. We appreciate it.
Thanks for entertaining a few extra questions there.
Our next testifier is Mr. Pete Ramsey, President PA
Turfgrass Council, Grounds Manager, Messiah College,
agronomist, Range End Golf Club.
We did hear from you, sir, at the previous hearing,
and ---
MR. RAMSEY: I did.
CHAIRMAN METCALFE: --- I understand that there's
some additional golf courses here in this region that you also
work with.
MR. RAMSEY: Thank you to the Committee for inviting
me back. This is a much more intimate setting than what we had
at Susquehanna University, but thank you to Shrewsbury,
nonetheless.
I am President of the Pennsylvania Turfgrass
Council, Director of Grounds for Messiah College and
superintendent of Range End Golf Club. I am here representing
the golf course and the turfgrass community.
I would like to say before I read my testimony that
we are collectively the smallest group of consumptive users.
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To kind of --- a counterpoint of Mr. Shepstone's comment about
natural gas and golf, we do not compare to the amount of water
that the natural gas industry uses.
With me today are members of the Pennsylvania Golf
Course Owners Association. We have golf course owners
represented here today. And some of the best golf course
superintendents in the entire state are here today.
The --- in the last two weeks I've been contacted by
a lot of people about this issue. And again, I would like to
reiterate that no two dockets or issues with the SRBC are the
same. They are all unique unto themselves and each one of them
comes with its own set of challenges and problems.
That being said, my testimony is as follows.
Stories of hardship continue to come forward since more light
is being shed on the consumptive user issue. Superintendents,
owners, hydrogeologists are operating under duress in their
attempts for approvals. In the last two weeks I have received
numerous letters and emails from those grateful for these
hearings but refusing to participate for fear of retribution.
One hydrogeologist stated to me that his clients
felt like they were being treated like criminals and that some
SRBC staff even struggled with enforcing their very rules.
What other organization requires full payment up front and then
takes more than a year to review? What has happened in the
last 20 years that so many professionals are so reluctant to
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step forward? Nothing other than our costs and requirements
have multiplied while SRBC defaulted on their mission of
storage. There was never any storage built into the basin or
protective --- protection for consumptive users. The only
tangible evidence of progress the SRBC has is their
headquarters that overlooks the river.
We are victims of abiding by the law if what they
are even doing has any legal merit. Their standard operating
procedure is absent of any due process for us. Most of us have
enough Notices of Violation to wallpaper our offices. The
certified letters always include the threat of civil penalties.
No other organization compares to this.
If you move my facility 75 miles east to the
Delaware River Basin, the cost for a ten-year docket to be
reapproved is $1,600 versus the $23,600 that I would be facing
here in the Susquehanna River Basin. Consumptive use is eight
cents versus 33 cents here. Annual monitoring fee is $300
versus $1,150. DRBC also has no evaporation calculation. They
have no aquifer testing on previously-permitted wells versus a
72-hour pump test or a $5,100 waiver.
Annual costs of operating over the life of the
respective dockets in my situation would be $1,270 versus
$6,023 in the Susquehanna. I could understand if DRBC were a
relatively new commission, but they were founded ten years
before SRBC. They are the only other organization in
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Pennsylvania similar to SRBC, yet they pale in comparison.
In a drought emergency, when the Commission's work
is most needed, their authority is superseded by DEP. We are
left with a self-governing commission who answers to no one,
operates under a false narrative about storage and water
quality, have unprecedented operating procedures and fee
schedules, no accountability that most state and federal
agencies have, with plaintiffs who are now too scared to
testify. We are left with nowhere to turn.
If our properties were converted to sod farms or
cornfields we would not require dockets. Our municipalities
zone us as agricultural, yet the Commission says we are not.
We receive absolutely no credit for the storm water our
facilities filter or store or the water waste that we help to
purify. There is no effort made to help our facilities stay in
business.
I would argue that the Commission has exchanged its
moral compass for a monetary one. Article I, Section 1.3-2 of
the compact states, the water resources of the basin are
subject to the sovereign rights and responsibilities of the
signatory parties. And it is the purpose of this compact to
provide for a joint exercise of these powers of sovereignty in
the common interest of the people of the region.
I have nothing but personal respect for Mr. Dehoff
and the staff of the SRBC. They believe in the mission that
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they are trying to move --- in their mission and trying to move
the organization forward, to which they have done an
outstanding job. I imagine it takes a lot of fees and a lot of
fines to support what that organization has grown into.
However, I am filled with professional animosity at the
arrogance that thinks we will sit back and do nothing. What
happens if I stop paying my fees? Will they shut down my pump
station and change the locks on the doors to it or will they
drag me into court? Water is not a weapon to be formed against
me or my colleagues for prosper. God is the only one who can
add water to my facility, and I'm pretty sure that they are not
him.
If Mr. Dehoff is correct in what he said that
roughly 90 percent of the Commission's revenue comes from
consumptive users larger than --- than us in the turfgrass
community, most --- I believe he said the energy community, the
energy producers, that leaves ten percent of their revenue, of
which we are probably a fraction.
I'm done beating the dead horse about this issue. I
think everybody understands what the problem is. But I'll
offer a solution. Some of their practices with us are already
redundant. We all report through Act 220 reporting to DEP our
annual water usage. And when water matters most and we go into
a drought emergency, DEP does supersede the SRBC with
regulation. They are the ones that can put the police on our
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doorsteps during a drought emergency if someone in the
community feels that we are in violation.
I would offer that we could easily move turfgrass
consumptive use and golf and recreational fields under DEP.
Thank you.
CHAIRMAN METCALFE: Thank you, sir. We appreciate
you joining us in the second hearing. Your testimony was good
at the first one and excellent again today. I appreciate it.
MR. RAMSEY: Thank you.
CHAIRMAN METCALFE: Our first question would be from
Representative Ryan.
REPRESENTATIVE RYAN: Mr. Ramsey, thank you for
being here. I have a PHD working at a golf course. I
understand. Stands for posthole digger. So that's how I got
my way through college. So I thank you for doing this. I
think what I'm most concerned about is the sovereignty issues
and the lack of accountability with the Right to Know Laws.
But let me ask you the specific question about the
impact of the Corps of Engineers in this process and who is
somewhat of the governing body. As a retired Marine Colonel,
the Posse Comitatus Act prevents U.S. military personnel from
having an active role on U.S. soil with U.S. citizens. So I'm
curious about the extent to which the Army Corps of Engineers
has a role in this particular issue with the Commission.
MR. RAMSEY: I personally have only dealt with the
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Commission and DEP when it comes to water use on my facility.
I don't know if there's anyone else present that has had the
Army Corps of Engineers get involved. I don't know.
REPRESENTATIVE RYAN: So you have not seen them and
the regulation is not coming or the information is not coming
from them, it's coming from the SRBC only?
MR. RAMSEY: Correct.
REPRESENTATIVE RYAN: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Ryan.
Representative DeLissio.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Good to see you again, Mr. Ramsey.
MR. RAMSEY: Thank you.
REPRESENTATIVE DELISSIO: In your testimony you talk
about plaintiffs who are too scared to testify. Do you truly
mean folks who have brought a lawsuit and then don't follow
through.
MR. RAMSEY: No. I consider --- I consider myself
and consumptive users to be somewhat in a plaintiff role in
this issue.
REPRESENTATIVE DELISSIO: Got it. So sort of an
aggrieved party, if you will?
MR. RAMSEY: Yes. But there's an overwhelming
sentiment from a lot of people who would like to tell their
story and --- but are concerned that, if they do, as they go
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through the --- you know, the permitting process, that it could
muddy the waters for them, so to speak.
REPRESENTATIVE DELISSIO: Could bite them. I come
out of long-term care, very, very heavily regulated industry,
so I understand what you're saying with that. It's not only
--- in all fairness to all parties, it's not --- it's the
concern that there could be --- somebody else has the upper
hand in the process versus --- and I'm dealing with this now
actually with former colleagues in terms of long-term care, so
I --- it's just the concern that by intervening in the process
so hearings such as this give you that opportunity then to
weigh-in in more comfortable manners. Is that correct?
MR. RAMSEY: And in defense of Mr. Dehoff and the
Commission, I don't think any of us know of a case where there
was, you know, direct conflict or --- or duress inflicted on
somebody to the point that they could say, you know, I was not
granted a waiver. But we've been dealing with this issue, some
of us, over 25 years, have gone through the permit --- the
re-permitting process or trying to go through it. A lot of us
are coming up on it. And there's a long-term relationship here
of difficulties that are making people feel like what is the
point and I might not --- I don't --- I don't need them on my
property any more than they already are. We already have
inspections that are ridiculous.
REPRESENTATIVE DELISSIO: And Mr. Ramsey, is there
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any type of advisory group to the Commission made up of, for
instance, members of your council? Some agencies do have
consumer, if you will, advisory groups and those pave the way
for that type of communication that perhaps doesn't seem to be
in place now. Is there such an advisory group affiliated with
the Commission?
MR. RAMSEY: No. No, there's not. We did ask the
Commission to sit down and meet with us several months ago, I
believe back in January, which they were gracious enough to
host a meeting for us as consumptive users at headquarters.
And they --- they did listen to the things that we are going
through and I know that they are always willing to meet with
consumptive users on an individual basis about their dockets,
but I don't believe that it's effected any change for anyone.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Thank you, Mr. Ramsey.
CHAIRMAN METCALFE: Thank you, Representative
DeLissio. Representative Miller?
REPRESENTATIVE MILLER: Thank you, Mr. Chairman, and
thank you, Mr. Ramsey. Could you, for the sake of those here
in this room and others who may be watching, repeat your
testimony about how you get charged for withdrawal of water and
then get charged for evaporation and that whole process? I
think that'd be educational for many who might see this.
MR. RAMSEY: That was part of my first testimony.
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There are several types of withdrawals. There's groundwater
withdrawals, which are --- is water from wells, surface water
withdrawals, which is water from surface sources, like creeks,
rivers, streams. And then there's our consumptive use, which
is the water that is actually going through our pump stations
out into our facilities.
If you have been doing those things and those things
predate at your facility regulation, and I forget the dates,
but the three specific dates of those things, then you're
grandfathered a certain amount. But at certain facilities
evaporation plays into those things.
For instance, at Messiah College, we buy water,
public water, from Suez Water, which used to be American United
Water. It's an entirely public water source. It comes into
the college. It's used for all of our potable water and our
heating and cooling systems. But naturally through heating and
cooling there's evaporation. We have seven cooling towers. We
were made to install meters on those cooling towers, which
could read the amount of water coming in and then the amount of
water blow-down which can contribute to evaporation. And then
we have to pay for that evaporation. So essentially we're
almost paying three times for the same gallon of water. We pay
a public water source. We then pay a percentage for the sewer.
And then we pay for the evaporation. In our world, having to
pay for evaporation, whether through heating and cooling
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sources or irrigation, is money going up in smoke.
REPRESENTATIVE MILLER: One quick follow-up
question. So if we get a rainstorm with one, two, three, four
inches or so, do we get any credit for that?
MR. RAMSEY: No, sir.
REPRESENTATIVE MILLER: Thank you, Mr. Chairman.
CHAIRMAN METCALFE: Thank you, Representative
Miller. Final question from Representative Moul, please.
REPRESENTATIVE MOUL: Thank you, Mr. Chairman.
Thank you, Mr. Ramsey. Curiosity, you heard that --- that the
SRBC has $40 million in the bank and part of what they had
claimed its use for is for water storage upstate in times of
drought. When we were low on rainfall, has the SRBC ever come
to you and said --- or any of your members and said we're going
to put water in your wells because we're charging you as an
insurance policy, and I quote them, in times of drought that
you have water supply? Do you see any way that they can float
water down the Susquehanna into any of your wells or do they
offer anything to truck water in? Is there any way to make
good on their promise in times of drought since you're paying
for that insurance policy?
MR. RAMSEY: No, sir. There's only one entity that
can put water on my facility, and I think we all know who it
is.
REPRESENTATIVE MOUL: But you're paying for that
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water storage as part of your fees?
MR. RAMSEY: Yes.
REPRESENTATIVE MOUL: Thank you. Thank you, Mr.
Chairman.
CHAIRMAN METCALFE: Thank you, Representative Moul.
Thank you, sir, for your testimony. I appreciate it.
MR. RAMSEY: Thank you.
CHAIRMAN METCALFE: Our next testifier will be Mr.
Richard Buchanan. He's the President of the Shrewsbury Borough
Council. And thank you for hosting us here at your facility
today, sir.
MR. BUCHANAN: Well, good morning. I do go by the
name of Buck.
CHAIRMAN METCALFE: Thank you, Buck. We're ready
for your testimony when you're ready, sir.
MR. BUCHANAN: All right. I've been in this borough
hall for I think 27 or 28 years. And in that period of time I
have never seen anything more abusive to our taxpayers than
what we're encountering from SRBC.
Now, Kristin Phillips-Hill did a great introduction
for you. I know she's read my four pages. I would ask all of
you please to go back and read these four pages that I have in
here. She stole some of my thunder, but I still take up my
eight or nine minutes. I could have you here for eight days to
tell you some horror stories.
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As a small borough, under 4,000 people, we've been
forced to expend moneys way beyond what should be practical.
To meet those demands we've had to increase our rates three
times. We've been trying to build a fund to keep replacing our
old waterlines. We know at some point in time the federal
government is going to say you've got to get rid of those
asbestos lines and all these others, so we've been trying to be
proactive. Every time we turn around we keep seeing what was
budgeted for one purpose having to be spent elsewhere.
And my pages here tell you, in meeting the
requirement to know the depth of the water in the well on a
daily basis, we had to spend just under $150,000. Now, we
don't care about the depth of the water on a daily basis.
We've been using these two wells --- well, two separate issues.
We've been using these wells for over 40-some years. They
supplied us the water we've needed for those 40-some years even
when we had that drought many, many years ago. But yet we went
through this cost to be able to read that data on a daily
basis.
And I want you to ask SRBC, now that you have the
data, what do you do with it? Of what value is it to have that
kind of data? If they want to collect a database for the
entire State of Pennsylvania or the Susquehanna Basin, that's
fine, but you're making us --- you're making me force my
taxpayers to fund that.
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This is a small town. We are not on the Susquehanna
River. We draw 100 percent of our water from wells, and yet,
we, too, are a contributor to their $40 million reserve, but we
have nothing to do with Susquehanna River as far as water usage
goes, all right, nothing whatsoever.
The other factor for permitting these two wells,
again, that took a hundred and --- roughly $142,000 to get two
wells permitted. Now, the old well process used to be every 30
years. They cut it in half. Can you imagine then if we spent
$142,000 for these two wells, got another five to go through,
as to what that cost is for our taxpayers. All right.
The main question or the main concern I have is how
they forced us to go through a process and basically ignored
it. By their requirements we hired a PA-licensed hydrologist.
We went through that 40 --- or 72-hour pump test. We did all
that processing, submitted that data. They received the data.
They found no fault in the work done by our hydrologist and yet
they still cut back our water allocation for that well. So if
you're going to ignore the data and you can't find fault with
it, why have us spend that money?
You're not going to want to hear this, but I'm going
to tell it to you. You can cut their funding to zero, to
absolute zero, the million dollars the fed used to give has
been gone for years now; right? You could cut your state
funding to zero and with what they have in fines, not just
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costs for --- God put some water in the well and yet we pay
SRBC to take it out --- but what they're doing to not us so
much, we haven't been fined yet, but when we went down to one
of their quarterly meetings in Baltimore, they spent like half
an hour reading out all the fines. And I got to say for the
Messiah College guy they were talking about all the fines to
the golf courses and they spent about three minutes on the
annual budget.
And that budget --- I looked at it, now a year out
of date. I've been fighting this with SRBC for over
two-and-a-half years. I looked at their records from 2006 to
2014. They had an increase in their budgeting of 62 percent.
And at that time they had a $30 million reserve. Now, I
understand from the others that have done the homework they're
up to $40 million reserve.
A point I want to get across to you. You were sort
of hoodwinked, whether you were in office then or not, but
somebody sold to the state legislature that you can have SRBC
do the work to clean up the Chesapeake Bay and clean up the
Susquehanna River and you can allow the municipalities to pay
for it. So you're sitting in Shrewsbury Borough with our 4,000
residents and we're paying it. We're paying more than our fair
share.
As you drove down through York County today, we're
surrounded by Shrewsbury Township, more than twice our
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population. What do they pay toward the cleanup of the
Delaware --- I mean, the Susquehanna River? Nothing because
they don't have a public water system. So we are being
punished for having a public water system. We are their source
for money. And yet you have others --- actually a lot of
farmers that probably do more pollution than anybody else with
the cow and dairy herds, and yet they're paying nothing because
they're on their own private wells.
If I wanted to be an SOB I could tell my citizens
get rid of --- we're going to get rid of our public water
system and go back to individual wells. Would that be of any
benefit for the system? Obviously, the answer is no. But yet
you're punishing us for doing a good job.
My other point to you, assuming you still read all
of my four pages, the other point is SRBC clearly operates on
the premises that you are guilty until proven innocent. Guilty
until proven innocent.
One of the new things they're talking about is how
they want to start regulating the water loss and so forth.
Whether you know it or not, your state regulation allows
municipalities or water systems to have up to a 15-percent
water loss, and yet SRBC is looking at how they can start
processes for changing that down.
This particular borough is at four percent, so why
should we be forced to go into a whole new process on governing
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our water loss when we're at four percent? All right.
This issue of always being guilty and proving your
innocence is just insanity.
Let me do a quick look over my own sets of notes to
see --- oh, another factor here for you.
I heard how there were just so few or very high
percentage of waivers. When they went to reduce our well
permit, for what was proven hydraulically to be acceptable and
they reduced it anyway, we wanted to go through and file for a
waiver. We started that process. We contacted a lawyer in
York and we started all that.
The board of three, per their written regulations,
is two members from SRBC and one member representing us. Two
for their side and one for us. And then the real clincher,
folks, is in their own regulations it states that if that board
determines the application was frivolous, they can back charge
us for their legal fees. Now, is that the American justice
system? I served 33 years in uniform. Sorry, not a Marine.
Thirty-three (33) years in uniform, defending against our
enemies. You know, right now I'm willing and this entire
council is willing to tell you we'll speak up. We are not
going to sit back and be quiet when we see this kind of abuse
to what our taxpayers have to put out.
So you've got it. Read my memos and shoot your
questions.
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CHAIRMAN METCALFE: Thank you, sir. And we had a
request from our host, from our IT folks. If you're here today
and you're connecting to the Wi-Fi, if you can shut that Wi-Fi
off, then they'll would be able to stream this better than
what's occurring. It's slowing --- bogging down the signal
right now for streaming the hearing. If you have your phone on
Wi-Fi, if you could shut it off, we'd appreciate the help
there.
Representative Dush?
REPRESENTATIVE DUSH: Thank you, Chairman. And
thank you, Buck. I have one quick question. One of the things
that keeps recurring here is the lack of ability for either
local governments --- the previous testifier is on the private
side --- to actually get information back.
Now, we heard from the Executive Director that
they're not subject to the Pennsylvania Right to Know Act.
Have you made any attempts through the federal Freedom of
Information Act or have they told you in any way in which
there's any kind of method for the Borough to actually obtain
records to help you with your defense?
MR. BUCHANAN: Yes, sir. Now, I did it through
Kristin Phillip-Hill's office. Thank you. But I have their
--- I first did it on their budget from 2006 to 2014. And then
I realized, okay, we all have budgets with what we'd like to
do. I shouldn't be working on just the budgets. I should get
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back to their audits. So yes, I was able to obtain their
audits from 2006 to 2014, and I spent days going through those.
That's where I came back --- now, I'm out of date, but that's
where I came back. If they're charging us user fees that are
proportional to what they're doing for us, how do they build up
a $30 million reserve? And again, I go back to my citizens are
contributing to a $30 million reserve. Doesn't make sense. We
don't put --- we don't take any water out of the Susquehanna
River.
REPRESENTATIVE DUSH: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Dush.
Representative Hill?
REPRESENTATIVE HILL: Well, since I've already
stolen your thunder, I'll try and throw you a soft ball, Buck.
Could you expand on what all of these requirements and the cost
of these requirements have done to your local municipal water
bill?
MR. BUCHANAN: Yes. I did say that we've --- we've
raised the rates three times in the last seven years. And
that's not an easy thing to do, but I do it with a free
conscious because we need those moneys. And we know that we've
got to be replacing the waterlines.
These breaks, we've been --- you know, I bragged
about four percent. Bryan Sweitzer back here is the guy that
really deserves it because he's the guy that's out there at two
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o'clock in the morning rather than going at eight o'clock, when
it's convenient or whatever. We've got good people. We're a
small little borough and we're a family and we get great work
from our people.
But we want to build a reserve toward replacing
waterlines both from the asbestos standpoint and from the
breakage standpoint, but we keep losing what we thought we're
budgeting here and having to spend it elsewhere based on some
of these demands by SRBC.
And I didn't say it in the beginning. I have full
respect for cleaning up the Chesapeake Bay and the Susquehanna
River. Absolutely respect that. And I have not had any
personal challenges. I think they're professional people in
SRBC. But it's the big picture that seems to have been lost.
My way of expressing this to you is you put the fox
in charge of security for the hen house, and you're scratching
your head wondering where all the hens are going. It just
isn't working the way it's being done.
REPRESENTATIVE HILL: Thank you.
CHAIRMAN METCALFE: Thank you, Representative Hill.
Representative DeLissio?
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Buck, I'm Pam, how are you?
MR. BUCHANAN: Good morning.
REPRESENTATIVE DELISSIO: Good morning. Can you
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give me an idea of what that average water bill was both seven
years ago and what it is today, just ballpark, and if it's a
monthly bill, a quarterly bill?
MR. BUCHANAN: I can't give you a direct answer on
those comparisons. I just never thought anybody would ask
that. But let me talk to you a little bit of what we do and
how, because it highlights a fault here.
If so much of this interest is in saving the bay or
getting more good, clean water down the Susquehanna River,
there's no emphasis on reducing water consumption that I see
from SRBC.
What we do and we've done it --- I couldn't even
tell you how many years ago, we actually have an inverted curve
for our water bill. The people that use more water pay a
higher cost per gallon than those that use less. Instead of
the idea that the more you use, the cheaper it is per gallon,
we do it intentionally inversely. And the impact that we've
had on that is that --- let's say in the last five, six years,
what little growth we've had because of the stagnation of the
economy. We are still now using less water than we did five or
six years ago. Now, some of that can be, you know, if you
don't have any broken water pipes, then you know, you can draw
out less as well. But our water bills are punitive to those
that are high users. And that's been intentional. We've done
it. I can't --- with maybe one exception, we've never had
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anyone come in and complain about it. We do have extremely
good water rates, but they've gone up again those three ---
three times we've had to increase it.
REPRESENTATIVE DELISSIO: Well, perhaps
Representative Hill's office could aid me in getting that data.
MR. BUCHANAN: Okay.
REPRESENTATIVE DELISSIO: Thank you.
CHAIRMAN METCALFE: Thank you, Representative
DeLissio. Final question from Representative Moul.
REPRESENTATIVE MOUL: Thank you, Mr. Chairman.
Thank you, Buck. I appreciate your testimony. You're one of
the first people after East Berlin that I talked to at
Representative Hill's office. And at the time you told us a
story about you had a grandfathered well or two. And in order
to get a waiver or something you had to give up the
grandfathering on it. Can you expound on that just a little
bit and why you think that was done?
MR. BUCHANAN: Well, again, one of the things I want
to get across to the entire Committee is you've allowed SRBC to
write their own regulations and they're very self-serving. In
that regulation, and I can't tell you the number, but that
regulation states that before they could allow us, even when
proven through all that 72-hour pump testing and $141,000 that
the well could produce more water, their regulation states, no,
we can't increase that because you have two wells that are
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grandfathered.
Now, a grandfathered well is a well that was
permitted through State DEP before SRBC got into this business.
They want --- to increase one well they expect us to give up
that grandfathered clause for two more wells. Well, that would
be asking --- that clearly is asking us then to increase the
well authorization at one well by losing two grandfathered
wells would cost us at least $141,000. What a deal that is;
right?
We were smart enough to say hell no to that. But
you know, it's back again. Why is that in that regulation? If
the well can produce more water, and we've proved it having
spent that money, why aren't we giving that well that higher
number? But again, it's their regulations.
They're good people, but they have no flexibility at
all. And regulations --- we all have to follow orders and
regulations, but there's no allowance. I mean, a simple
example here. Many years ago we closed down every well in this
borough. Now, you talk about fortitude to upset your
constituents. There were I think 32 private wells in our
borough. We talked about that for like 12 years. And then
finally one year I guess I woke up and said, you know, it's got
to be done. So we went through and we closed those 32 wells in
our borough. So there's no individual wells within this
jurisdiction. But the SRBC requirement when you go to do a
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72-hour test requires you to send a letter of notification
within a certain diameter radius. We asked for a waiver.
These people don't have wells. Why should we send them a
letter notifying them about this testing that's going to be
done that can't impact a well they don't have. They wouldn't
grant us that waiver. They couldn't.
REPRESENTATIVE MOUL: Just to finish up ---.
CHAIRMAN METCALFE: Representative Moul, that's all
the time we have for this testifier. Thank you, sir.
MR. BUCHANAN: Get out of here, huh?
CHAIRMAN METCALFE: Thank you, sir, for your
testimony. We appreciate it.
MR. BUCHANAN: Thank you. Hope to see you again.
CHAIRMAN METCALFE: Thank you, sir.
Our next testifier is Mr. Peter Luscairdi, Authority
Chairman from Middlesex Township Municipal Authority, and
Donald Geistwhite, Jr., Authority Treasurer, Middlesex Township
Municipal Authority, Chairman, Middlesex Township Supervisor.
Gentlemen, you can join us at the microphone. And
whoever is ready to start, when you're ready, you can begin
you're ready. Thank you for joining us today.
MR. GEISTWHITE: Mr. Chairman and Committee, let me
first say that at the very last minute Mr. Luscairdi has been
unavailable to attend, so you get me and our Township Municipal
Authority Manager, Roy Morrison.
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And first let me apologize. This is my first week
with my new trifocals, so if I stumble through this, you'll
understand why.
CHAIRMAN METCALFE: Can you both introduce
yourselves, then?
MR. GEISTWHITE: Excuse me?
CHAIRMAN METCALFE: Can you both introduce
yourselves again for us, your names, ---
MR. GEISTWHITE: Yes. I'm Don ---.
CHAIRMAN METCALFE: --- and spell them for us.
MR. GEISTWHITE: I'm Donald S. Geistwhite, Jr.,
G-E-I-S-T-W-H-I-T-E, Jr. I'm Township Supervisor Chairman and
Treasurer of the Authority.
MR. MORRISON: And Roy L. Morrison. I'm the
Authority Manager, Middlesex Township.
CHAIRMAN METCALFE: And the spelling of your last
name, sir?
MR. MORRISON: It's M-O-R-R-I-S-O-N.
CHAIRMAN METCALFE: Thank you, sir. Thank you both.
MR. GEISTWHITE: Mr. Chairman and members of the
Committee, I would like to take this opportunity to thank you
for allowing us to present our testimony on behalf of the water
customers of Middlesex Township.
We will attempt to summarize 12 groundwater wells
developed --- development plan that began in 2004 and has
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really never ended.
To this date, we continue to conduct a monitoring
program for a privately-owned spring fed which discharges into
the Letort Spring Run. This monitoring location is 1.2 miles
away from our Authority Well One. Now, we would discuss this
matter, you know, for hours and hours, but I don't mean to do
that. But we have --- have --- excuse me, condensed 12 years
of several bullet points that will shed light on the SRBC
unwillingness to listen to our experienced geologist.
Along with our testimony we have included supporting
documents and logical information that shows this is a waste of
good ratepayers' money and should be eliminated immediately
from our SRBC docket, which is at Exhibit 1.
Our Authority continues to spend money for
engineering services to the tune of $10,000 a year and an
additional expense of roughly $20,000 a year for an employee
wages and travel to and from the site to ensure that data being
collected is not compromised due to debris affecting the
overflow measuring of the spring. Again, I apologize for my
adjusting my glasses.
The following are some of the most important points
that we --- that we need to make on how --- yeah, however they
may affect things.
Number one, pumping collection data. The Authority
had one of the most extensive monitoring programs ever seen by
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our hydrologists, which is Exhibit 2, and a total of 13
groundwater public wells were installed with data loggers for
spring water surface sites that included the U.S. Army
Barracks' water supply source and the Rousek Springs three ---
I can't get --- excuse me, prime sites along the stream bank of
the Letort Spring and the United States Geological Staff Gage
located at the discharge point for the Letort Spring into the
Conodoguinet Creek. And we realize that the Letort Spring is
considered a high-quality, cold water fishery, but to require
seven stream monitoring points is overkill.
The Rousek Spring is 1.2 miles from our Well One.
Our hydrologist indicated to us that it was improbable ---
again, I apologize --- that the well drawdown would impact the
spring flow due to the discharge and the geology of the area,
which is at Exhibit 3.
We should note that the spring is at a higher
elevation than the well --- than the well water level, which
makes it quite unlikely that --- that well impact could affect
the water recharge to the spring.
Specific costs. High costs were incurred in
rebuilding the Rousek Springs, which is privately owned. The
authority properly managed --- monitored this location. Over
$45,000 was spent on engineering services to acquire the
permits and the physically reconstruction of the dam. See
Exhibit 4. A new restored dam delighted --- delighted the
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owners, of course, but we are pretty sure that the ratepayer
will not be that thrilled.
I would also like to make note that the authority
had to pay two clean-up messes from the temporary testing site
which was abandoned by the United States Army Barracks after
they completed their golf course well drawdown test.
The SRBC involved our 72-hour drawdown test. Due to
the recharge of the discharged water, raising the level in the
Rousek Springs, our water was discharged over 4,000 feet form
the well --- from Well Site One to an open discharge located in
a farm field. The water then recharged the Rousek Spring
monitoring site, another 3,000 feet away. The U.S. Army
Barracks' public water supply, located another 800 feet
upstream from the Rousek Spring monitoring site, showed no
drawdown from our 72-hour pump test, nor did it show any
recharge from our discharge.
We would like to make note of an email sent to Steve
Read at ARM Group by Mr. Bob Pody, a staff member at the SRBC,
which is at Exhibit 5, dated May the 4th, 2004. Please note
that two, which refers to the new Carlisle Barracks golf course
well showed signs of impact on Rousek Spring when they
performed their pump test three years --- yeah, three years
prior. Excuse me. Could it not be assumed that the golf
course well drawdown monitor of the golf course well referred
to by Mr. Pody was also monitored by the Authority and no
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underground communications between the two water resources were
found?
It should be further noted that the Authority
monitoring showed slightly --- excuse me again, showed nightly
flow reductions in the Rousek Spring, which apparently
correlated with the golf course well. However, this does not
seem to concern SRBC.
Number five, we have great concern with the SRBC
using the expertise of an outside consultant, Mr. Jim
Richenderfer, a sitting member of the Letort Regional
Authority, the LRB, a local environmental group, whose mission
is to preserve and protect the Letort. Mr. Richenderfer
submitted comments on April 22nd, 2004, on behalf of the LRB
--- or LRA, which can be seen in Exhibit 6, and then was
employed by the SRBC to review our permit. This is clear
indication on a log sign --- indicated on a log sign-in sheet
dated 12/22/2009, Exhibit 7.
Well One is permitted contingently on SRBC's
approval pending Rousek Spring monitoring for 1.44 MGDs,
million gallons per day, and the Authority's daily water usage
for 2016 was 833,000 gallons per day or 58 percent of the
well's capacity. But as owners --- excuse me, as owners of a
water supply system, we need to ensure we have adequate
capability in the event of a catastrophic event, pipe failure,
major water break or other supplies from South Middleton
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Authority simply dries up. We feel that this well is an
insurance policy for our customers.
The final point I would like to make is that how
much money this has cost the ratepayers of Middlesex Township.
To date, including the cost of the reconstruction of the dam,
engineering costs to submit the monitoring report for Rousek
Springs, which again I'll specify is privately owned, the
Authority has spent $177,879.35. This does not include the
$20,000 per year in employee costs which added an additional
$120,000 from 2011 through 2016. Nearly $300,000 has been
spent by our ratepayers to satisfy this docket requirement.
In closing, we would ask this Committee to continue
to pursue this matter and get answers to why there is no
oversight and why our ratepayer customers have no say. Thank
you for your time, and I apologize for stumbling.
CHAIRMAN METCALFE: No need to apologize, sir.
Thank you, Mr. Geistwhite and thank you, Mr. Morrison, for
joining us today also.
Representative Bloom, I believe represents the area
that you're from. Representative Bloom?
REPRESENTATIVE BLOOM: Thank you, Mr. Chairman. And
thank you, Supervisor Geistwhite and Roy as well. $300,000 has
been spent so far by our Authority to deal with the SRBC's
requirements. What environmental benefit has come from that?
Has spending this $300,000 of taxpayer, ratepayer --- ratepayer
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funds helped in any tangible way to protect the environment or
preserve our water resources? Are we $300,000 better off?
MR. GEISTWHITE: Representative Bloom, I think I can
answer that with one answer. No. If Roy wants to elaborate,
he's the --- our overall manager, but ---.
CHAIRMAN METCALFE: Turn the microphone on and push
the green light there and pull the microphone up to you.
MR. GEISTWHITE: I think I can answer it in one ---
one word. No. If there's more to it, Mr. Morrison, our
Authority Manager, can answer that better, but I don't know of
any.
MR. MORRISON: The only benefit is, is that SRBC
gets data collection from Rousek Spring that was ---.
REPRESENTATIVE BLOOM: So they charge you $300,000
essentially to get some data on a privately-owned spring?
MR. MORRISON: Correct.
REPRESENTATIVE BLOOM: Thank you. Thank you, Mr.
Chairman.
CHAIRMAN METCALFE: Thank you, Representative Bloom.
Representative Tallman?
REPRESENTATIVE TALLMAN: Thank you, Mr. Chairman.
Thank you for being here. I just need a little clarification
of where we're at. So I've been to the Letort Springs once
with the South Central Conservation District and once on my
own. Very nice, big brown trout there. Are we talking the
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same --- that same Watercrest Farm?
MR. GEISTWHITE: No.
MR. MORRISON: No. The Watercrest Farm is further
to the south. That's --- that's actually at the feeder spring,
where actually the head starts at the quarry on ---.
MR. GEISTWHITE: That would be South Middleton.
MR. MORRISON: South Middleton.
MR. GEISTWHITE: South Middletown area.
REPRESENTATIVE TALLMAN: So when we were there, one
of the reasons why that's such a beautiful trout stream,
besides being a limestone springs, three of them there, is the
water flow is constant, constant volume, constant temperature.
And I'm assuming --- where's this spring that you mentioned?
Where is that located in relationship ---?
MR. GEISTWHITE: Rousek Spring is right off ---
because I know you understand the area very, very closely, it's
literally right at the border of Middlesex Township and North
Middleton, right off Claremont Road, right just east of the
boundary of the Carlisle Barracks. It's right in that area.
And we, the Township and, of course, the municipal
authority, we're very protective of the Letort Spring as well.
The thing that has had us puzzled with most of this is this
spring is privately owned. It's been there for, you know, who
knows. Why SRBC picked that as a monitoring situation is a
whole interesting thing. The amount of money we have had to
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pay to improve a private spring so that it meets these testing
requirements is just unreal to us. That's where so much of
this money has gone.
But at the same time, and I briefly mentioned it,
we've got the U.S. Army War College or the Carlisle Barracks
sitting right next door with a great golf course. But they've
not been included in a lot of these testings because it's U.S.
Government property. So there's all these issues that come
into this.
We do not mind following a lot of these rules and
regulations as long as they're realistic. We still don't have
an approval for this well. I mean, it's what 12 years later.
We're still playing around with --- with monitoring this. That
--- that spring has been sold. I mean, a new family has moved
in there. And nice couple. They've been very, very willing to
work us, have small children. They're floating stuff in the
spring periodically. We're constantly having to check to make
sure they haven't, you know, damaged the monitoring equipment.
And we just paid how much to fix it additionally?
MR. MORRISON: Another thousand.
MR. GEISTWHITE: Another thousand dollars or so
because they want to put fish in the spring. So we're required
to put a --- install a weir so that the fish don't get out. I
mean, it just goes on and on. And as a couple of you know me
well, being Chairman of the supervisors, the ratepayers aren't
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real thrilled about all these additional costs.
And I totally agree with the gentleman from
Shrewsbury, there just seems to be no oversight of SRBC. Who's
checking on them? They spent a lot of time checking on us.
REPRESENTATIVE TALLMAN: Thank you.
CHAIRMAN METCALFE: Thank you, Representative
Tallman.
Our final question from Representative DeLissio.
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Mr. Geistwhite, can you talk a little bit about this $20,000
annually for wages for an employee to check the site? Is that
--- that seems like a lot of money. What's involved in that?
That that's the numbers on an annualized basis. How far is the
site from where the employee is going? How much time does it
take? Is this a daily event?
MR. GEISTWHITE: I'm going to defer to our Township
Manager.
MR. MORRISON: It's about eight miles from the
municipal building. And he checks it twice a day and takes
data log information from the data logger that's installed
there. It's a data logger that checks the weir flow into the
spring --- from the spring into the Letort.
So there's constantly debris, you know, leaves, all
kinds of junk getting in there. Sometimes kids throw their
toys in there and, you know, it basically stops the flow going
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through that system, so we have to constantly download that and
then take measurements. And we also have to take --- if
there's an event of a rain, we have to take --- we have a stage
gage there and we have to measure the rain. So it's a --- it's
a constant project. You know, he spends --- you know, from
travel back and forth, he's spending about two hours out of his
day doing that. And that's 365 days a year.
REPRESENTATIVE DELISSIO: And is that 120 --- I just
want to make sure that I understand the numbers accurately.
And your .7, is that 120 part of the 300 or in addition to the
300?
MR. MORRISON: No, that's --- that's in addition.
We spend about $20,000 per year for that. Excuse me. We pay
$20,000 a year for the employee and then $10,000. The $177,000
was all prior to. That was including the dam restoration and
all our engineering fees and so forth to do that part of it.
REPRESENTATIVE DELISSIO: So Mr. Morrison, I don't
mean to be dense, but that 120 is 120 plus 177, that equals the
300 or ---?
MR. MORRISON: That's correct.
REPRESENTATIVE DELISSIO: It is? So it is part of
that 300?
MR. MORRISON: Yes, it is all part of that.
REPRESENTATIVE DELISSIO: Got it. Thank you.
CHAIRMAN METCALFE: Thank you, Representative
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DeLissio. Thank you, gentlemen, for your testimony. We
appreciate it.
MR. GEISTWHITE: Thank you.
CHAIRMAN METCALFE: Our next testifier is Mr. Jim
Eshleman, Chairman Municipal Authority of East Hempfield
Township. I understand he is the constituent of Representative
Miller's I believe. Sir, you can begin when you're ready, sir.
MR. ESHLEMAN: I'm ready. Good morning. I hope you
have my handout. We have been embroiled in a seven-year
process. And to describe seven years in seven minutes is an
impossible task.
I'd like to direct you first --- well, first of all,
I'd like to say we're just as outraged over fees and costs as
everybody else, but this goes way beyond fees and costs.
Secondly, Mr. Ramsey said that there could be fear
of testifying. I should be one of those people because seven
years of work is now before the SRBC for a decision and yet I'm
here giving my testimony.
I'd like to direct you to the back of the third
page. There's an attachment. It looks like this chart. And I
think I can explain a lot of the text in this chart. The first
column is our nine sources of spring and nine wells, the date
they were established, the spring and the first four were pre-
SRBC regs. Well Number Five was the first docketed well. Well
Six and Seven are on the docket. Well Eight is on the docket
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and Well 11 is on the docket.
Our capacity when Well Number Five came up for
re-docketing was 6.06 million gallons per day. We went through
their process and let me just --- the result was --- if you
look at the results, the individual capacity on --- on Well
Five plus the other five sources, which they eliminated the
grandfathering on, when they were done with us the capacity was
2.2, reduced from 2.5 to 2.2 million gallons per day. But the
blue shading shows you that those three wells were grouped
together and there was an individual capacity for those of .67,
which equals Well Number Two. So essentially those --- Well
Number One and Well Number Two are almost meaningless because
we're only allowed to pump .67 out of the group.
They also took our entire system and put a limit of
1.937 on the entire system. So that took our capacity from
6.06 million gallons per day to 1.94 million gallons per day, a
68 percent reduction in capacity. That's what I mean where
this goes far beyond cost and fees.
I'm just going to --- I'd just like to paint a
little bit of picture of how a water system operates. You
know, we don't have a guy sitting behind a desk in front of a
wall full of meters, and when the meter on Well Number One hits
2.6 --- .268 an alarm goes off and tells him, hey, turn off
Well Number One and turn on Well Number Two. We don't ---
there's not a meter that says, okay, Well Numbers One, Two and
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Three have --- are now approaching .67. Time to --- an alarm
goes off, time to turn those off and go to the next well. And
we don't have a meter that aggravates all nine sources and
tells us when we approach 1.937.
Wells are connected to pump houses. You treat the
water in the pump house. You pump the water into a
distribution system. Your house and businesses are connected
to that distribution system and there's water tanks at the
highest points in the community. Our pumps --- when the level
in the water tanks drops, the pumps come on. When the --- when
the tanks are full again, the pumps turn off. We have no
control over the user. You know, if you look out your window
and your grass looks brown and you decide I'm going to set up
sprinklers and water my grass today, we have no control on the
user side of this how much get pumped. So it's essential for
us --- you know, it's a disconnect between theory and practice.
I mean, how does the operator live with these kind
of limits? The only way you can live is you need to have
excess capacity so you don't go over these limits. And you
know, we --- we report --- we have to submit a quarterly
report, how much we pump each day from every well, and if we go
over our limits the fine is a thousand gallons per day, I
think.
Last --- the second --- the last page, you know, I
just need to explain this because this is the science on which
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we were regulated. They --- basically my understanding of the
SRB science is we're --- you have a drainage basin, that if you
drew a circle around your well, the high points, everything
that falls inside that circle recharges into the ground. They
compare that to a bathtub. Turns out we have five or six wells
within one bathtub. So they look at that like there's six
straws sucking out of one bathtub. The only water that's going
into that bathtub is recharged from rainfall. And you know,
consequently, that's why they had to lump all these wells
together and regulate this. That does not match reality.
Our Well Number Eight, when we drilled that well ---
when we drilled the well, we got very little capacity. We
moved over ten feet, drilled. We hit an --- we hit an opening
and got a thousand gallons per minute.
Well Number 11, which was 1.6 --- 56 million gallons
per day, very close to Well Number Eight, completely different
geology. And that well was all fractured. When they drilled
the well, they almost lost the rig.
I owned a quarry about two or three miles from this
--- from our system. We quarried up until 1950 and hit a
spring and the quarry filled up with water. We bought the farm
across the street and mined for the next 30 years and pumped
almost no water. The bathtub theory is not the whole story.
It doesn't work.
Okay. I'm going to go back to the first page now.
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So point number, our docket expired on Well Number Five in
March of 2011. They said get your --- you get your application
in by September of 2010. The application fee was $17,600.
Seemed a little steep, but you know, you have to do what you
have to do.
The first thing they did was ask us for data on
these grand --- on these grandfathered wells. They made a
decision that we had pumped those more than we were allowed to,
which immediately took away all the grandfathering, brought
them into that docket application and the fee went up $32,740
to $50,340.
I can't --- I can't emphasize enough for you the
difference between permitting a new well out in the middle of
an open field and going through this process on existing wells,
which are all interconnected and on an operating system, and
you have to keep that system operating while you're going ---
doing pump testing and doing all these other things. And when
you're pump testing one well you're supposed to take other
wells off line so --- so you can look at the effects and so
forth. How are you supposed to operate your system?
So that --- so --- okay, so the SRBC wanted pump
testing. And point number five is a description of what our
engineer told us would be involved in the pump testing. I'm
not going to go through it because I don't have time. The
bottom line, it was like $70,000 to pump test one well.
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We decided pump testing wasn't practical. We asked
to submit historical data. Of course, you know, another point
I want to make. When we were going through this process I
thought we were just re-permitting, we were getting a new
permit. I didn't realize that there was a game in here. The
game was to take capacity away. I thought we were just
re-permitting. So we submitted the historical data. But if
historically you didn't pump as much as you were approved for,
they're going to take away the difference.
So after much --- point number eight, after much
back-and-forth, we finally agreed on those limits and the
reduction on those five wells from 2.56 down to 2.22. That was
going to be presented to the September 20 River Basin
Commission meeting.
A notice came out that there was going to be a
prehearing 30 days in advance. We contacted the people and
said, are you going to recommend what we agreed to in May?
Kind of got a wishy-washy answer, but saw no reason to go to
the prehearing.
They called us up and said we would like to meet
with you on August 30th. We go up there and that's when they
dropped the bombshell on us that they're putting this 1.94 cap
on our entire system, taking away 68 percent of our capacity.
1.94 was how much we pumped in 2006. Now, if we pumped 1.94 in
2006, how could we approve any more requests for water, any
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more capacity? They took away all of our capacity.
I immediately worked through Labor Day weekend,
going over all their data, writing letters. You know, we did
everything we could do before the September 20th meeting, but
to no avail.
CHAIRMAN METCALFE: Thank you, sir. We're about ten
minutes into your testimony. We have a few minutes left for Q
and A. Could you give us a closing thought there to kind of
wrap it up before we go to questions? I understand you have a
lot of passion and you've been put through the wringer it
seems. And didn't mean to cut you off there but you have a
good bit of information.
MR. ESHLEMAN: Yeah. I would just like a minute to
talk about 14. So they rendered this decision at the
Commission. We appealed the decision and we went to the next
Commission meeting in December. And this gets to due process,
you know, points A, B, C and D.
The Chairman of the Commission called their attorney
and said present the information regarding this appeal. Then
the Chairman calls up our attorney and he --- and he cautioned
him that the Commissioners were already fully briefed on this
matter and to be as brief as possible in presenting our case.
At the conclusion of his presentation, somebody read
a prepared statement and made a recommendation to deny the
appeal. In our attorney's words, based on comments by the
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Chairman to the SRBC's attorney, the reasoning of the
Commission was that, although they follow to fail (sic) their
own regulations --- you can read it --- such errors were
harmless because the Authority now has the opportunity to
perform testing that will enable the Commission to develop a
reasoned result.
We've been working for four-and-a-half years, done
operational testing. We spent $423,000 through the end of
April on third-party fees. That doesn't include any of our
internal costs or time. $423,000, and we have a submission in
front of them to find out if they're going to give us any of
that capacity back.
You can read my conclusions, my concluding points
for yourself.
CHAIRMAN METCALFE: Thank you, sir. Representative
Ryan?
REPRESENTATIVE RYAN: When you only have one mic for
five Representatives, that's cruel and unusual punishment.
Mr. Eshleman, thank you. I used to live in East
Hempfield Township, so thank you very much.
Let me put a personal perspective on this. While
he's going through this, people own building lots in the area
were sometimes restricted from there to Manheim Township about
what you could build and couldn't build because of regulations
that no one can second guess in the process. So here's my
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question. Is it --- is it reasonable, based upon my
understanding of your testimony, that the above-ground contour
map that you might look at in some of the documents we've seen
is not indicative of the geology of the ground underneath and
that any attempt by just assuming basin rainwater runoff or
something like that, that the SRBC is using as an indicator of
what you can pump and not pump could actually lead to bad
science, not good science, and then you're left with trying to
clean up their mess?
MR. ESHLEMAN: To me --- I'm not a geologist. I'm a
civil engineer. But to me, topography would define what the
bath --- the size of the bathtub, you know, where water falls,
which way it runs.
But obviously there's more water in our bathtub than
the rainfall recharge. You know, I mean, what they do is they
take the average rainfall, they multiply that by .6 and call
that the one in ten-year drought rainfall. And you can't ---
you can't have more than that. That's the limit.
You know, there are underground aquifers coming into
that area. There is so much water there. You know, we've
proven after the pump testing --- I don't know what --- I don't
know what conclusion they're going to reach, but our geologist
says it's a no-brainer. That six million gallons was there.
REPRESENTATIVE RYAN: Yeah. In my practice, I
specialize in keeping companies out of bankruptcy, and in a lot
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of cases we've had to do environmental cleanup. And the
geology of this particular area, it's a real mistake to presume
that the topography where we live is indicative of what the
underground is and I reinforce your point. You're absolutely
correct.
MR. ESHLEMAN: But there's even a bigger hammer
here. If you prove there's more water in that bathtub than
they say, well, then what they say is, oh, well, then the
bathtub must be bigger. So they change the boundaries of the
bathtub and your next source has to be outside the bathtub. So
you know, if we prove that the water is there that we said was
there, they're going to move out the boundary, and that means
we might have to go miles away to drill the next --- even
outside of our system to find our next source, you know.
And another thing I didn't say here was, in the
course of this we added up all the development demands in our
area and said there was six million gallons of demand. So what
they did was they rendered their decision. They took away four
million gallons and then they said, oh, and by the way, a
special condition in the docket is provide us a plan of how
you're going to provide that six million gallons.
CHAIRMAN METCALFE: Thank you, sir.
REPRESENTATIVE RYAN: Thank you very much. Mr.
Chairman, thanks.
CHAIRMAN METCALFE: Thank you, Representative Ryan.
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That's all the time we have for this testifier. Thank you,
sir, for your testimony today. We appreciate it.
Our next and last testifier is Mr. Matt Battersby,
Esquire, the Solicitor of East Berlin Area Joint Authority.
Thank you for joining us, sir. You can begin when
you're ready, sir.
ATTORNEY BATTERSBY: Thank you, Mr. Chairman. I
hope I have this on. Yes, I do. Ready?
I am going to read my testimony. I'm used to
reading things into records in my profession. My name is
Matthew Battersby. I'm here on behalf of the East Berlin Area
Joint Authority.
The small town of East Berlin is located along the
Conewago Creek in eastern Adams County, Pennsylvania. As a
result of this geographical location, it falls within the area
of jurisdiction of the Susquehanna River Basin Commission.
From approximately the 1890s and going forward the
Town of East Berlin has supplied water to its residents. Some
of the town's wells goes all the way back to the 19th Century.
Just a couple years ago a developer who had planned
to hook into the town's sewer and water system went bankrupt.
As a result thereof, East Berlin acquired a water well site and
the developer intended to dedicate the town's water system.
CHAIRMAN METCALFE: Excuse me, sir.
ATTORNEY BATTERSBY: Yes.
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CHAIRMAN METCALFE: Excuse me. If the audience
would please suspend any conversations. If you have a
conversation, please take it outside and allow our testifier to
testify conversation free.
Sorry for the interruption, sir.
ATTORNEY BATTERSBY: Thank you, Mr. Chairman.
As I said, East Berlin's Municipal Authority decided
to add this one additional well to supply its water. As a
result, the Authority's municipal engineers, Buchart-Horn,
applied for all necessary permits from the Pennsylvania
Department of Environmental Protection and proceeded to do all
the pumping tests required by DEP for a full licensed municipal
owned water well. DEP reviewed all test data, engineering
reports submitted on behalf of East Berlin and granted the
necessary permits.
What happened next is why I'm here today. SRBC
contacted the municipal authority and demanded we do an
additional aquifer testing via video step test --- test plan
pumping test and address comments submitted by SRBC, amend the
data and submission given to SRBC three times. The total
additional engineering costs over and above what East Berlin
spent pumping and test results given to DEP was $155,050. A
copy of that bill is attached.
Not only did East Berlin incur additional
engineering costs to satisfy the additional redundant tests
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demanded by SRBC, they also paid SRBC $12,960 just to have SRBC
read the aquifer teste results and plans submitted to them.
Copies of the checks are attached to my testimony.
Finally, in addition to what was required to SRBC's
approval to use the water well, East Berlin was billed an
annual compliance fee of $1,100 which East Berlin paid to SRBC
under protest. The annual fee is nothing more than a
consumption tax which is derived by the number of gallons of
water being withdrawn from the new well. This is no different
than the tax paid by someone at a gas pump when filling up the
car. This annual fee is a mandatory fee based upon the gallons
consumed.
I wish to note that SRBC could have obtained most of
the information they requested from DEP, but instead to demand
additional testing, et cetera, from East Berlin, driving up the
costs of permitting the well by an additional $155,000 plus
their fees of nearly $13,000. This is clearly a duplication of
government mandated requirements.
East Berlin's municipal authority supplies water to
just over 700 customers. The costs stated may seem small to a
large public utility company, but to a small municipal
authority the costs are not small.
East Berlin and other small towns throughout the
SRBC area of operation are caught up in the system of
never-ending tests, reviews, planning reports and attendant
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fees. East Berlin was forced to borrow money from Pennvest in
part to pay for the additional costs and fees generated by
SRBC. This is, quite simply, an extra bureaucratic expense and
burden upon the citizens of Pennsylvania who are unfortunate
enough to live within the SRBC jurisdiction. Nothing that SRBC
demanded from East Berlin filled one extra glass of water.
It is interesting to note that pursuant to federal
law, 43 United States Code, Section 19621-6, river basin
commissions such as SRBC are supposed to be funded by the
federal government with the remainder of their annual budget
funded via state appropriations. To date, it appears that the
federal government has chosen not to fund SRBC with annual
contributions.
So what has SRBC done to make up the financial
shortfall? They have created and written their own fee
schedules and have extracted money in the form of annual
compliance fees, wellhead extraction consumption taxes and
fines and penalties.
Since the overwhelming majority of the Susquehanna
River and the SRBC jurisdiction falls within the borders of
Pennsylvania, the majority of the penalties, fines, fees are
paid by Pennsylvania citizens. SRBC claims to be a federal
agency or quasi-federal agency. Yet who has oversight or
control over what SRBC charges in the way of taxes and fees?
They seem to be a power unto themselves. The only legal
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recourse or challenge to anything SRBC does is to appeal to
SRBC itself. You've heard various people testify to that
already this morning. And then if you don't like the answer,
go to Federal District Court, which by the way, gives great
weight and deference to the decisions and findings of an
administrative agency, in other words, SRBC itself. There
seems to be no Pennsylvania legislative power or oversight, and
small town Pennsylvania needs somewhere to go and someone to
rein in and oversee what SRBC is doing.
Surely, duplicating tests, licensing of water well
projects approved by DEP would be an area to explore.
Only the legislature has the power to tax, and only
the legislature can delegate or transfer that power. I believe
this area of concern should also be explored by the
legislature.
Pennsylvania water law has traditionally, and to
this day, followed the common law of riparian rights. Most
cases establishing riparian rights in Pennsylvania hold that
the water percolates through the earth, but does not follow a
well-defined channel, belongs absolutely to the owner of the
land over which it passes. But where water follows a
well-defined channel either above or below the surface, the
owner of the land it passes has only a qualified right to use
it.
Pursuant to the Fifth Amendment of the United States
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Constitution, the government, be it local, state or national,
cannot take private property without rendering what's called
just compensation to the owner of that property. When a
government agency passes regulations that essentially take
property rights away, it's called inverse condemnation. If
groundwater is a property right owned by the landowner, then
how can SRBC simply charge annual consumption tax and fees or,
in the extreme, deny or limit a person the right to extract
water from their own ground water resources without just
compensation?
Governments can tax private property and they can
tax mineral extraction if they wish, but the power to tax
resides solely with the Pennsylvania legislature or the United
States Congress. Only those bodies have been given the power
by the people.
Finally, Section Two, Article Eight, Pennsylvania
Constitution, states, and I'll quote it, it's short, all taxes
shall be uniform upon the same class of subjects within the
territory limits of the authority levying the tax and shall be
levied and collected under general laws.
SRBC levied fees and taxes on public water wells
that yield over 100,000 gallons and upon PUC water companies.
SRBC does not tax, charge --- tax or charge individual
homeowner's wells, farms, et cetera. Where is the uniformity
and fairness in that? Only the residents who are supplied
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water via a Public Utility Company or Municipal Water Authority
are forced to bear the tax burdens placed upon them by the
SRBC.
I'm now available to take any questions.
CHAIRMAN METCALFE: Thank you, sir. I appreciate
your sitting through all the other testimony before you finally
gave yours as the last testifier. Thank you for being here
today.
I understand you're representing East Berlin, who is
from Representative Tallman's --- Representative Miller's
district, I believe. Representative Tallman? Representative
Tallman's, do you have any questions for Mr. Battersby?
REPRESENTATIVE TALLMAN:
Matt and I have had many conversations in 12 years.
East Berlin is actually Dan Moul's hometown, but I just thank
you for being here to understand --- and if you've ever read
the testimony when they debated in 1968 in the Pennsylvania
House the joining in the Susquehanna River Basion Commission,
it wasn't called states' rights back then, but many members of
the House said we were giving up our state's sovereignty.
Thank you.
CHAIRMAN METCALFE: Representative Dush?
REPRESENTATIVE DUSH: No, nothing.
CHAIRMAN METCALFE: Representative Miller?
REPRESENTATIVE MILLER: Thank you, Mr. Chairman.
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Thank you for your testimony. Earlier Mr. Dehoff testified
that there's no duplication of testing and requirements and
such, but you said that that is the opposite. Can you --- can
you further expound upon that, please?
ATTORNEY BATTERSBY: Sure. Attached to my testimony
is a bill we got from the municipal engineering firm,
Buchart-Horn, and they had to do extra pump --- we test pumps.
And as the previous testifiers explained to you, you have to
get so many gallons per minute to have a 100,000-gallon well.
SRBC didn't like the data. They could have gotten
that exact same data from DEP but chose instead to request
independent data submitted to them. So that extra pumping of
the well and proof submitted to SRBC is --- it's our belief
that was available through DEP and they could have simply gone
even under a Right to Know request, which we discussed this
morning, they could have gotten it. But I'm sure DEP would
have professionally given them a courtesy copy.
So that aquifer testing and all those things that
were done to bring this well in line, we had to do it over for
SRBC. So that's duplicative.
CHAIRMAN METCALFE: Thank you, Representative
Miller. Representative DeLissio?
REPRESENTATIVE DELISSIO: Thank you, Mr. Chairman.
Are you --- I just want to be clear. Are you saying that the
dollars charged by the SRBC to local municipalities are a de
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facto tax and, therefore, only the legislature reserves that
right to tax or is that word used or --- I just want to be
clear because towards the end of your testimony you talked a
lot about taxing authority.
ATTORNEY BATTERSBY: Right. This was actually ---
and Representative Tallman brought that up. If you look at the
legislative data, the journals from both the Senate and the
House in 1968, 1969, they were essentially questioning the fact
of giving up their sovereignty and their power to raise money
to tax the citizens to a river basin commission.
When you --- certainly when you go to the gas pump
and you pump a gallon of gas in your car you pay something
called a liquid gas tax, which then is distributed to the
municipalities. Many municipalities that testified here this
morning are being taxed on a consumption basis, a fee to SRBC.
I don't care if you call it a fee, a toll, a charge. If a
government charges me money and then if I don't pay it, I'm
subject to a penalty, subject to interest and subject to fines,
that's what's called a tax. So it's the same thing as I pay a
local school tax on my real estate. I pay, you know ---.
Now, if it's a fee and it's truly a fee, like
getting on the Pennsylvania Turnpike, I can choose not to go to
the Pennsylvania Turnpike. I can try Route 30 all the way
across the state, God help me, and I'll get there a lot faster
and I'll pay the fee. But a tax is something that's levied
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against the citizens in order to support a government entity.
And that's what this is.
And my testimony here this morning is that this is,
in fact, a tax and I think the legislature couldn't have given
that power away. It's clearly in the Constitution that only
the legislature can raise taxes inside the Commonwealth and
they do not have the power to delegate it or give it away to
some other body.
REPRESENTATIVE DELISSIO: Thank you. And by the
way, Route 30 is the prettier ride particularly through Adams
County.
CHAIRMAN METCALFE: Thank you, Representative
DeLissio. Representative Moul?
REPRESENTATIVE MOUL: Thank you, Mr. Chairman.
Thank you, Matt, for being here today. You touched on
something in here that I just recently read in a court case
from --- actually held up by the Supreme Court in 1889 that
basically says water under your land is absolutely your water,
and you have the right to do with it as you please.
ATTORNEY BATTERSBY: That's been historic common law
of Pennsylvania, yes.
REPRESENTATIVE MOUL: Correct. So in your legal
profession, if somebody charges you to use something that you
own, coming out of your land, do they have the right to
actually do that, even though they're going under the guise of
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a compact that's just that? In your legal opinion, does a
federal, slash, state compact supersede a Supreme Court
decision?
ATTORNEY BATTERSBY: Not when it comes to
groundwater. I think that's where I'm focusing is the
criticism here is that they are, in fact, charging people to
take the groundwater. And you'll note that SRBC only goes
after the low-hanging fruit, namely the municipal wells that
are licensed through DEP. They --- I don't know, you might
have a minor revolution out there if you went through the
entire Susquehanna River Basin and went to every individual
landowner and farmer and said we're now going to charge you to
take the water out of your land. I think --- I think you might
--- you might --- you might get quite a bit of pushback on that
one.
REPRESENTATIVE MOUL: In a sense, those municipal
wells are those landowners just like the municipal wells that
belong here in Shrewsbury, every single resident of this town
owns that well. That's my point.
ATTORNEY BATTERSBY: And not only that, and the town
that paid --- bought those wells back in the 1890s in East
Berlin, they purchased them from a private owner.
REPRESENTATIVE MOUL: Thank you. Thank you, Mr.
Chairman.
CHAIRMAN METCALFE: Thank you, Representative Moul.
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Any other members? Representative Dush?
REPRESENTATIVE DUSH: Thanks, Matt. Thanks,
Chairman. In your testimony it was brought up that pursuant to
the Fifth Amendment of the U.S. Constitution the government, be
it local, state or national, cannot take private property
without rendering just compensation to the owner of that
property.
Do you feel that the SRBC, if they're taking that
property --- that property away from you, maybe ought to be ---
the roles ought to be reversed that they would be compensating
the owners rather than ---?
ATTORNEY BATTERSBY: Yes, I do. And that's what
inverse condemnation means. If you pass a government
regulation that takes my property rights away, I --- suppose I
own a farm. Well, I do own a farm. But let's say you pass a
zoning ordinance that says you can no longer farm that farm.
Well, then you've taken away my property right. If I'm a
farmer, I can no longer farm. And that's --- and that's ---
and I title that just compensation.
Similarly, SRBC passes all sorts of regulations and
they're taking --- if water is a property right, and I contend
that it is, then they maybe should be paying the property
owners for that, not the other way around.
REPRESENTATIVE DUSH: Thank you. I agree. Thank
you, Chairman.
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CHAIRMAN METCALFE: Thank you, Representative Dush.
Thank you, sir, for your testimony. And thank you
to the members for your time.
This is the second hearing we've had in this issue.
I'm planning an informational meeting with the members of the
State Government Committee probably not this week but probably
sometime during the next several weeks, depending on schedules
and budget schedule. But I'd like to get the members of the
Committee together and certainly would invite members back to
be at that informational meeting, they have an interest in the
issue that have made time to come out to hearings. But we'll
look forward to talking and hearing everyone's thoughts after
receiving all of this testimony.
We still have additional questions that have been
raised through some of the testimony, I'm sure. I know I have
some and just from talking to members, members have further
questions. So we'll look forward to talking and discussing the
testimony and talking about how we can change this atmosphere
in Pennsylvania related to the Commission. Thank you, members,
for your time.
Motion by Representative Ryan to adjourn. Seconded
by Representative Dush. This meeting is adjourned. Everyone
have a great day.
* * * * * * *
MEETING CONCLUDED AT 11:11 A.M.
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CERTIFICATE
I hereby certify, as the stenographic reporter,
that the foregoing proceedings were taken stenographically
by me, and thereafter reduced to typewriting by me or under
my direction; and that this transcript is a true and
accurate record to the best of my ability.