Author Archive

Tribune-Review
When a Texas gas company hired Michael Pascuzzi’s earth-moving business to build two water impoundments, he sat down at his desk and cried. The family-owned company had been headed for bankruptcy.

Tribune-Review
When a Texas gas company hired Michael Pascuzzi’s earth-moving business to build two water impoundments, he sat down at his desk and cried. The family-owned company had been headed for bankruptcy.

Press & Sun-Bulletin
Chesapeake Energy is paying for upgrades to two Bradford County roads to accommodate heavy-truck traffic related to its Marcellus Shale natural gas drilling operations in the region.

• Marcellus production “is creating jobs and boosting local economies”

• “Farmers are making investments in farms that were just dreams before the Marcellus Shale”

• “The opportunity for growth, job creation has not been seen since the late 1800s”

Mighty Marcellus “Boosting Pa. economy”: “Forum panelist Kathryn Klaber, president and executive director of the Marcellus Shale Coalition, detailed how the gas drilling industry is creating jobs and boosting local economies, making special note of the steel and rail industries in the state. She also addressed how the industry is working to safeguard public health and the environment and noted that the industry supported the state Department of Environmental Protection significant increase of permit fees to fund the hire of more oil and gas inspectors. (Times-Leader, 8/22/10)

Responsible Marcellus development “could yield millions for Pittsburgh”: “A solution to some of Pittsburgh’s money problems could be just below the surface. Leasing the drilling rights to natural gas trapped in a portion of the Marcellus shale formation under Pittsburgh’s 2,000 acres of parks could net the city $6 million to $16 million in one-time access fees and potentially millions more in royalties if officials make deals similar to those struck elsewhere in Western Pennsylvania and Texas. (Tribune-Review, 8/20/10)

MSC president in-studio on ‘Corbett’s Corner’: “I’m already seeing people hiring in communities where the drilling is happening, all down the supply chain. We see restaurants that are opening that have lines outside, we see suppliers. I’ve had a unique opportunity, as our industry continues to expand, to see businesses who are increasing their top line and revenue and bringing on new people. (WILK-FM, 8/19/10)

“Marcellus Hope”: “I also see the hope that Marcellus Shale brings to these farm families. The relief from financial stress and their ability to make much needed improvements to their farms is a new way of life and is in fact insuring thousands of acres will continue in agriculture for future generations. … Farmers are making investments in farms that were just dreams before the Marcellus Shale. … I see a rebuilding of the Northern Tier agriculture infrastructure that was at risk. … Marcellus Shale will be an important part of America’s energy future as well as an important part of production agriculture’s future in the northern tier. (Williamsport Sun-Gazette LTE, 8/22/10)

Heroic Marcellus worker helps rescue woman, pet from house fire: “A gas industry worker who recently moved to Wellsburg from Oklahoma got an unusual opportunity on his birthday Monday: the chance to save a life. Billy Watts, who turned 37 Monday, was driving home on South Broadway from Troy at about 6 p.m. when he saw black smoke in the air. Watts, a hydrofracturing operator for Cudd Energy Services in Pennsylvania, pulled over and helped a volunteer firefighter at the scene before any fire trucks arrived. … “It’s important for people to stop and try to help out,” Watts said. (Star-Gazette, 8/23/10)

More jobs headed to southwestern Pa.: “Universal Pegasus International, a Houston, Texas, company that provides engineering and project management services to the oil and gas industry, has opened an office at 601 Technology Drive, Southpointe. During brief ribbon-cutting ceremonies Wednesday, Chief Executive Officer John Jameson said the office employs 12 people but is expected to grow to between 50 and 70 employees within the next 18 months. (Washington Observer-Reporter, 8/26/10)

“It’s economics 101”: “Kathryn Klaber, the president of the Marcellus Shale Coalition, countered that the shale development will bring “lots of economic activity” but only if the tax is structured to encourage drillers’ continued investment in the state. “It’s economics 101,” she said. “The more you tax something, the less you get of it.” (Times-Tribune, 8/22/10)

Ph.D. in petroleum seismology says “hydraulic fracturing can work for NY”: “Hydraulic fracturing – sometimes called “fracking” – involves injecting fluid into tight formations at very high pressures to create artificial fractures. … Fracking has made production from the Marcellus Shale possible and created thousands of jobs. … New York is well able to regulate fracking while at the same time allowing development of natural gas and enjoying the jobs and revenue it brings. (Syracuse Post-Standard, 8/25/10)

Marcellus production “has brought an influx of jobs, business, money to Williamsport”: “The positive impacts include the arrival of new companies, job opportunities and property owners getting lease and royalty checks. “In the past 18 to 24 months, 60 to 70 companies of varying sizes have opened in Lycoming County as a direct result of the Marcellus Shale natural gas industry,” said Vincent J. Matteo, president and CEO of the Williamsport-Lycoming Chamber of Commerce. “I have been in economic development for 30 years and have never seen anything that comes close to what we are experiencing,” he said.The opportunity for growth and job creation has not been seen since the late 1800s, when Williamsport was the lumber capital of the world, he said. Halliburton alone projects hiring up to 300. “We estimate, to date, more than 1,500 jobs have been created and thousands more will be. … We are looking at a generational opportunity that will be creating jobs and wealth for decades to come.” (Patriot-News, 8/24/10)

Marcellus producers educate local business leaders: “[EnCana’s Don] McClure and Brian Grove, Chesapeake’s director of corporate development for the Eastern Division, spoke ofeconomic and environmental benefits of natural gas production – creating jobs, using less water than any other energy-production method and producing cleaner-burning energy than coal or oil. … “So there is clearly a job creation impact associated with the industry. … We’re happy about that,” [Chamber President Todd] Vonderheid said. (Times-Leader, 8/26/10)

Marcellus Multiplier: “Task force works to link businesses to gas industries”: “The Clinton County Natural Gas Task Force juggled a large number of issues Tuesday evening. … Estimates by Penn State University experts suggest the Marcellus might contain more than 500 trillion cubic feet of natural gas. Using some of the same horizontal drilling and hydraulic fracturing methods previously applied in the Barnett Shale of Texas, perhaps 10 percent of that gas (50 trillion cubic feet) might be recoverable. That volume of natural gas would be enough to supply the entire United States for about two years. (Lock Haven Express,8/25/10)

Marcellus production bringing an “industrial boom to Pennsylvania”: “All agreed that the gas – with an estimated worth of $1.2 trillion – contained in the Marcellus Shale formation underlying a good portion of the state could bring industrial boom to Pennsylvania. To date, gas extraction has created 88,000 jobs, $800 million in local and state tax revenue and $8 billion in economic value for Pennsylvania. (Beaver County Times, 8/27/10)

NY landowners continue to rally for Marcellus opportunity: “The Sullivan County Partnership for Economic Development and supporters of natural-gas drilling struck back Thursday during a meeting of the county’s full Legislature. One by one, Partnership officials and county property owners stood up to defend the organization’s position on drilling and to criticize environmental groups for opposing an industry supporters say will boost Sullivan County out of its economic malaise. … Drilling supporters also value the land, he said, and“realists” understand the economic benefits of drilling. (Times Record-Herald, 8/20/10)

Marcellus development in NY could be “incredible”: “The economic benefit to New York could be “incredible,” says Brad Gill, executive director of the Independent Oil and Gas Association. In Pennsylvania towns where drilling has begun, he says, “the motels are filled, the restaurants are filled. It’s flourishing.” … Fracking is “absolutely” environmentally safe, he says. “I would never do anything to destroy my property.” A lucrative gas lease would change everything, he says. “To farm without debt — what a dream that would be.” (USA Today, 8/24/10)

Another local govt. backs responsible Marcellus development: “The supervisors of Lehman Township expressed their support of the industry at Monday night’s meeting. Several township residents were boisterous in their support as well. Carl Kern, who owns trucks that provide service to drillers in Bradford County, said the public should listen to the positive side of drilling. … For example, the companies are maintaining the roads they use, Kern said. … Township Chairman Dave Sutton concurred, adding that if the township must repair a road in an emergency situation, it will be reimbursed for the cost by the drillers. “It’s nice to hear something positive,” Sutton said. (Dallas Post, 8/22/10)

Copyright: Marcelluscoalition.org

Cash-strapped Albany enforces obscure tax targeting bagel shops in New York – maybe it’s time to take another look at the Marcellus?

Few states have been hit harder by the nation’s protracted economic downturn than New York, but here’s how you know the budget situation up there has gone from serious to critical: Starting this month, the state will assess a separate tax on the purchase of bagelsthat have been sliced.

Here’s how it will work: You walk into Louie Thompson’s Terrace Bagel shop in Brooklyn, N.Y. and ask for a whole blueberry bagel. No tax assessed there. But ask Louie to run his Ginsu through it, or possibly even dare to consume that bagel within the confines of his store, and in the eyes of Albany, you’ve just been issued a “prepared food” item – with the appropriate levy attached. Think we’re kidding around? Here’s how the Wall Street Journal addressed the issue in the paper this week:

State tax officials, under orders from cash-strapped Albany … have begun to enforce one of the more obscure distinctions within the state’s sales tax law. In New York, the sale of whole bagels isn’t subject to sales tax. But the tax does apply to “sliced or prepared bagels (with cream cheese or other toppings),” according to the state Department of Taxation and Finance. And if the bagel is eaten in the store, even if it’s never been touched by a knife, it’s also taxed.

So how much are we talking here? According to Kenneth Greene, who owns several Bruegger’s Bagel franchises throughout the state, the levy amounts to about eight cents a bagel. Doesn’t seem like much — until you consider that more than 200 million bagels are bought and sold in America each year.

Just for argument’s sake, let’s assume New York accounts for 20 percent of that total. At eight cents a pop, you arrive at a collection figure of $3.2 million a year. Nothing to sneeze at, for sure. But not exactly in the same league as the potential revenue that could be generated through the responsible development of the Marcellus Shale in New York. For those numbers, let’s take a look at a recent report on the subject commissioned by API and produced by professor and economist Tim Considine:

Total gross output in New York would increase $3 billion in 2015 if Marcellus development would be allowed. Value added impacts displayed in Table 11 are $1.7 billion. … Marcellus development would be quite significant to the regional economy of upstate New York. Employment would increase by more than 15,000 in 2015. Finally, local and state tax revenues would increase more than $214 million in 2010 dollars.

You read that right: Even applying the most conservative estimates related to the number of Marcellus wells developed in the Southern Tier, we’re still talking about the potential to generate more than $200 million a year for state and local governments in New York. Good news for sliced-bagel lovers across the state, potentially – but even better news for the nearly 900,000 folks currently on the state’s unemployment rolls, right?

Unfortunately, the prospect of leveraging the enormous potential of the Mighty Marcellus into jobs, revenue and opportunity for New York has yet to be fully appreciated by those charged with representing the interests of New Yorkers in the state Senate, with that body earlier this summer approving a bill that seeks to ban the use of a commonly used energy technology known as hydraulic fracturing all across the state – whether it’s deployed in the Marcellus or not. Their reasoning? Hydraulic fracturing is new, and untested, and unregulated. Never mind that it’s been used safely in New York for more than a half-century. Or that the state’s DEC has aggressively regulated and overseen the practice almost before we even had a name for it.

Now comes word that the same folks who promoted that legislation in Albany are actively enlisting small business owners in New York to carry forth that same campaign of misinformation on their behalf. Their latest victim? None other than our friend Louie Thompson from the Terrace Bagel shop in Brooklyn. In a video posted recently on a website maintained by Riverkeeper, Louie explains the process of making his no-doubt-delectable rolls-with-a-hole. But it’s the little tag line he attaches to the end that got our attention:

Gas drilling – or fracking – in New York will ruin our water and our bagels. So go to DontFrackNewYork.com [sic.] and tell Albany: ‘Don’t frack with New York’s water.’

All of which begs a simple question: Would Louie take the same position on the Marcellus if he knew that hydraulic fracturing isn’t a “gas drilling” process (fracture stimulation occurs after the drilling procedure is complete)? Would he be more supportive if he knew that fracturing operations have been going on safely and responsibly in New York for decades? Could he be convinced to reevaluate his stance if he knew that prospective Marcellus exploration isn’t slated to take place anywhere near the borough of Brooklyn? What if we told him the sliced-bagel tax could go the way of the dodo if even a fraction of estimated Marcellus-related revenue is generated by producers, and dutifully collected by Albany?

We don’t know Louie, so we don’t know the answer to that question. But here’s what we do know: The opportunities the Marcellus Shale present to New York are historic – especially at a time with 900,000 residents unemployed, and a $9 billion hole in the state budget. We also know it’s going to take decades of hard work to fully make good on those opportunities, as well as a renewed commitment to doing this work in the best, safest, cleanest and most efficient manner possible. Sound regulation is a fundamental part of that equation — always has been, always will be. Now it’s time for the facts to make their way to the scene as well. Preferably with a little cream cheese in tow.

Copyright: Marcelluscoalition.org

‘Marcellus Multiplier’ Creating Jobs at Breakneck Rates, Helping to Lower Energy Prices for Consumers

Roustabouts wanted as companies produce homegrown, clean-burning natural gas: “The natural gas industry expects to create thousands of jobs in Marcellus shale gas development in this decade, and state agencies and colleges are gearing up to train workers to fill those positions. The Marcellus Shale Coalition…said the boom created 44,000 jobs in the state last year. It is predicting thousands more this decade. … The Western Area Career and Technology Center in Canonsburg has trained more than 100 in a roustabout training program since last year, and the Pennsylvania College of Technology in Williamsportgraduated about 200 workers from its roustabout program since October. … Some students graduating from Western Area Career and Technology Center in Canonsburg have landed jobs related to gas production and are being paid annual salaries of between $50,000 and $60,000, said Iannetti, director of the career center. (Tribune-Review, 8/18/10)

Shale gas production has driven “natural gas price down to the lowest rates in almost a decade”: “UGI Corp. will enter the Marcellus Shale gas rush, a move that could result in Pennsylvania utility customers using and benefiting from Pennsylvania-produced gas. … “The natural gas in the Marcellus Shale region of Pennsylvania is in areas in which we have a significant amount of assets, including much of our utility and gas marketing service territories,” said Lon R. Greenberg, chairman and chief executive officer of UGI. … The discovery of shale gas reserves throughout the country has already driven natural gas price down to the lowest rates in almost a decade. Brian Fitzpatrick, UGI’s manager of gas supply, said adding a local source of natural gas to the utility’s portfolio could reduce the price volatility that occurs from hurricane disruptions in the Gulf. State consumer advocate Irwin “Sonny” Popowsky said UGI’s plans could benefit both natural gas and electricity customers,since natural gas pricess are figured into electricity prices. (Scranton Times-Tribune,8/14/10)

Marcellus Shale companies in hiring mode: “Among the most voluminous hirers are natural gas developers ramping up their operations in the Marcellus Shale, a gas-rich layer of rock thousands of feet below the ground. Moon-based Atlas Energy Inc., for example, has been on a hiring spree since it announced in April a $1.7 billion joint venture with Indian company Reliance Industries Ltd. The company’s president, Rich Weber, said Atlas has added about 100 people to the firm’s roster in 2010, bringing the total to about 600. The firm is slated to double in size in the next several years, he said. … Weber also added that about 85 percent of its new hires have come from Pennsylvania. … Talisman Energy, is on track to hire an additional 60 employees for its new American corporate headquarters in Warrendale. (Pittsburgh Business Times, 8/13/10)

Hundreds want gas drilling jobs: “Hundreds of residents from throughout the Ohio Valley waited in long lines Wednesday with hopes of landing a job with one of the many natural gas companies actively drilling in the West Virginia Marcellus Shale. Nine recruiters from Chesapeake Energy, based in Oklahoma City, were on hand Wednesday to talk to job seekers during a six-hour career information open house at the PPG McKenna Shelter. Men and women with resumes in hand, dressed in everything from construction boots and jeans to business attire, stood on line for two to three hours waiting for the chance to speak with one of the recruiters. … “This is a great opportunity for around here,” said Long. “This (the gas industry) is one of the only things around here. It’s a good thing they (Chesapeake) are here.” … “Any new full-time employment in this area is great,” he added. (Wheeling Intelligencer, 8/19/10)

Marcellus Shale’s economic impact is growing: “Marcellus Shale drilling is still in its infancy in West Virginia, but the industry is already contributing millions of dollars to the state’s economy. It may be awhile before the gas industry’s economic impact rivals that of coal in West Virginia. Mike Shaver, clad in a hard hat and muddy boots, surveys a gas drilling rig on a site in Upshur County. As a crew drills towards the Marcellus Shale, a pipe pumps water and dirt out of the hole in the earth and into a huge pit of muddy, rock-filled water. (Huntington Herald Dispatch, 8/14/10)

Regional Editorials Weigh-In

New York State gets it wrong on gas drilling moratorium: “We prefer that Pennsylvania simply be very responsible and practical in enforcing its environmental laws. There is no reason that can’t be done while desperately needed economic growth from the natural gas industry is nurtured. This past week the Sun-Gazette reported on the rapid growth of the cement mixing Halliburton plant off Route 405 in Clinton Township, where ground was broken a year ago. By year’s end there will be about 100 jobs, and there are projections that the plant will eventually employ 400 people. Plants with 400 jobs especially new ones aren’t plentiful in our region. As long as the state has a fix on how to be environmentally vigilant over the industry, we don’t get why a moratorium that would drive off sorely needed economic development like that is necessary. (Williamsport Sun-Gazette Editorial, 8/15/10)

WV should safely explore gas development on taxpayer-owned land: “While some citizens are reluctant to permit gas development under public lands, others are aware thatWest Virginia can realize significant benefits that preserve and enhance state properties.New revenues from both the sale of gas and the employment of drilling crews can support government programs that many citizens believe are important. (State Journal Editorial,8/19/10)

We’re Here For the Long-Haul, and Here to Be Good Neighbors, Stewards of the Environment

Ridge pushes for environmentally safe gas drilling: “Former Gov. Tom Ridge this afternoon called Marcellus Shale gas production a “transformative opportunity” for Pennsylvania during an appearance Downtown in his new role as a strategic adviser to an industry group. Still dressed in the jeans and checkered shirt that he wore to inspect production operations in Washington County earlier in the day, Mr. Ridge hailed the industry’s economic potential but also stressed the need to manage environmental concerns. “We’re only getting one chance to get it right,” Mr. Ridge said. (Post-Gazette, 8/17/10)

Natural gas company reaches out to neighbors: “Cabot Oil and Gas has more than 100 gas wells in Susquehanna County and at Montrose Area high school, the company and other contractors brought in equipment, had demonstrations and more to show the community exactly what they do and how they do it. … It was all about educating the public at the Cabot Oil and Gas community picnic at Montrose Area high school. … Hundreds showed up for the behind-the-scenes look. “They needed a day like this to see this equipment, to get an understanding of what it is we’re doing. I couldn’t get everybody on a rig tour, but we thought we could bring a rig tour to the folks here,” said George Stark with Cabot Oil and Gas. … “I think it’s taken a pretty sleepy community and put it on the map. Some people might think that’s not good, but it’s brought a lot of business,” said Becky Severcool of Montrose. (WNEP-TV, 8/14/10)

Drilling workers donate blood: “About three hours into the drive, a caller from Susquehanna County phoned the office of American Red Cross Wyoming County, asking for directions to the school from a gas drilling site in Susquehanna County. … Jay Jones, a supervisor with Selman and Associates, of Midland, Texas, assigned as Superintendent of Geology for Cabot Oil & Gas drilling sites in the area, said all of the workers, including his wife, are geologists working under contract with Cabot Oil & Gas to do geological studies at Dimock, Springville, Elk Lake, Montrose and South Montrose. “We had seen signs for the Red Cross blood drive posted on a bulletin board at True Value Hardware Store in Montrose for several days,” Jones said. “We asked one of the managers there to call the phone number posted on the sign to get us directions. Now, we’re here to give blood.” (Dallas Post,8/15/10)

Cabot educational picnic draws more than 2,300 interested in learning more about the Marcellus: “More than 2,300 people crowded onto the grounds surrounding Montrose Area Junior/Senior High School Saturday afternoon, chowing down on barbecue fare while gawking at giant trucks, water tanks and other equipment used in the natural gas drilling process. … “I am overwhelmed with the community support that we have from today’s event,” Cabot spokesman George Stark said. “To see the crowd, to hear the questions, and to be able to answer those questions is very satisfying and rewarding.” … “This is wonderful,”said Jeanne Ludwick, a Great Bend, Pa. resident who brought her three young grandchildren. (Press & Bulletin, 8/14/10)

NEPA resident says “We’re looking forward to” job-creating Marcellus production: “The purpose of Saturday’s picnic at Montrose Area High School was to help the host get to know its new Susquehanna County neighbors a bit better. Nothing unusual in that, perhaps. Except that the host was a natural gas company, the neighbors turned out in the thousandsand the gathering even drew a small number of protesters. Possibly more than 3,000 people came to find out more about the industry, Cabot Oil & Gas Corp. Lew and Lois Davy of New Milford attended the event to find out more about the area’s natural gas industry. “It’s coming,” Mr. Davy said. “We hope it does, anyway. We’re looking forward to it.” (Scranton Times-Tribune, 8/15/10)

Shale gas workers make room for Little League World Series families: “Marcellus Shale, which runs underneath this central Pennsylvania region, has far greater potential than baseball to restoring Williamsport as an industrial hub. … Kristi Gittins, a spokeswoman for Chief Oil & Gas, a Texas company that has been housing many of its employees in the Holiday Inn and the Hampton Inn, said many workers had already set up permanent residence in the area but that it still has workers “coming in and out” who had to find different lodging out of town. “Little League is such a wonderful event for the entire area,” said Gittins. “It’s a temporary inconvenience for workers. We didn’t give moving a second thought.” (Philadelphia Inquirer, 8/19/10)

Local Governments, Academic Experts Back Responsible Marcellus Development

Lehman Twp. supervisors back Marcellus production: “Despite negative feedback in recent months from anti-“fracking” groups concerning Marcellus Shale gas drilling, supervisors on Monday night expressed their support for the industry, as did several township residents. Fracking refers to the drilling process of hydraulic fracturing, which uses water and chemicals under pressure to liberate natural gas from the shale deposits. … Carl Kern, who owns trucks that service drillers in Bradford County, said the public should listen to the positive side of drilling instead of the protest. … Board Chairman Dave Sutton concurred, adding that if the township must repair a road in an emergency situation, it will be reimbursed by the drillers.“It’s nice to hear something positive,” Sutton said. … He and several other lease holders are in the process of formalizing a local gas industry support group. (Wilkes Barre Times-Leader,8/17/10)

University of Pitt. professor Dr. Radisav Vidic confirms fact that hydraulic fracturing’s never contaminated groundwater: “There hasn’t been any proven case that shows that the hydraulic fracturing itself causes contamination to groundwater. First of all, the well casing — the way it’s designed to be used — there’s multiple barriers there through the aquifer so there’s really no communication between the material that’s injected into the well and a groundwater aquifer. … You can go on the DEP website, and there is a list chemicals that are being used in hydro fracturing operation. … The industry is required to disclose this information, and the DEP has a list of all the chemicals that are being used for hydro fracturing operations.” (KDKA Radio, 7/10)

Monongahela Council OKs Marcellus gas deal: “Monongahela Council has approved a deal with a natural gas drilling company to locate two wells within city limits, earning the city a signing bonus of $35,000. One natural gas well will be located on property owned by the local fire department beside the city park known as The Mounds, Monongahela Mayor Bob Kepics said. Royalties paid by Chesapeake Appalachia of Charleston, W.Va., would help to keep the fire department in business, Kepics said. … Kepics said he is not aware of any residents who oppose the projects. (Washington Observer-Reporter, 8/17/10)

Copyright: Marcelluscoalition.org

Barnstorming Pa., MSC Continues to Educate, Engage “Friends of Marcellus”

The positive and overwhelming benefits associated with the responsible development of the Marcellus Shale’s abundant, homegrown, clean-burning natural gas know no county lines or state borders. Considered to be the world’s second largest natural gas field – second only to one in Iran – the Marcellus Shale’s potential to generate jobs, revenue and opportunity for all Pennsylvanians is real. And it’s a story worth taking on the road.

And so this week, that’s what the Marcellus Shale Coalition and its growing grassroots network did – traveling the length and width of the Commonwealth to continue to educate and engage the 12 million folks that proudly call Pennsylvania home. Along the way, we also took some time to  highlight the economic, supply-chain and job growth opportunities that continue to be created for the local workforce — efforts that will continue at an aggressive pace as the responsible exploration of clean-burning natural gas in Pennsylvania continues to expand.

Here’s a quick snapshot of the ground that the MSC has covered in just the past couple days, along with a run-down of where we’re headed next:

We Started in Philadelphia

The MSC joined the Pennsylvania Department of Community and Economic Development (DCED) to educate local businesses last week of the enormous opportunities that exist up and down the Marcellus Shale supply chain. MSC president Kathryn Klaber also met with elected leaders in Philadelphia to discuss the merits of natural gas-powered vehicles, and other benefits that the Mighty Marcellus will continue to deliver to the city’s residents.

Click here to view the embedded video.

• “There’s a lot of safeguards in place…that make sure Pennsylvanians have safe drinking water,” said Marcellus Shale Coalition president Kathryn Klaber. Klaber is also here to talk about the economic benefits of expanding drilling, mainly the estimated 200,000 jobs that would be created in Pennsylvania. (ABC6 TV, 8/13/10)

Then We Headed Back to Pittsburgh

At the Pittsburgh Business Times’ Energy Inc. conference yesterday afternoon, Gov. Tom Ridge – as reported by the Pittsburgh Post-Gazette – highlighted the benefits of responsible Marcellus development, as well as the safeguards in place and the commitment from the industry to protect the environment.

Click here to view the embedded video.

• Gov. Tom Ridge

o    “I think this is a potentially a transformational opportunity for our state. At the same time, we have to – we must – do it in a way consistent with our commitment to retain the beauty and the bounty, and the pristine condition of Pennsylvania.”

o    “I was on site today that 80 or 90 folks working that at the that site, and about 80 percent of them were local residents from Pennsylvania. Of course, the economic sustainability is real. They call it the ‘Marcellus Multiplier.’

o    “At the end of the day, facts are stubborn things. And we just have to get some facts out there so people can better understand what the industry can do – and will do – to build a sustainable economic model and be true to our commitment to the environment.”

And Now We’re Headed to State College – And Beyond

In an effort to further underscore the benefits responsible that Marcellus Shale development is generating for family farmers and Pennsylvania’s agriculture economy, the MSC will attend Penn State University’s Ag Progress Days today. And tomorrow, MSC president Kathryn Klaber will discuss ways that local business can join the growing Marcellus supply chain network with the Small Business Development Centers (SBDC) at Lock Haven University; she will also participate in a shale gas forum at Marywood University, alongside U.S. Sen. Bob Casey.

Interested in learning more, and joining our fight for a stronger economy and a cleaner and more secure energy future? Become a “Friend of Marcellus” today.

By Joe Napsha, PITTSBURGH TRIBUNE-REVIEW
Published: Wednesday, August 18, 2010

Workers looking for jobs in the region’s booming natural gas industry may try their hand as a “roustabouts” — general laborers who work physically grueling 12-hour shifts for 14 consecutive days in all kinds of weather to build and remove drilling pads and assist production.

“It’s demanding labor, working long stretches without days off. You have to be ready to do quality work and do it a long time. Once they start production, they don’t stop,” said Richard Guenther, an employee relations specialist with Chesapeake Energy Corp. in Mt. Morris, Greene County.

Pay can range from $10 to $20 an hour, plus overtime.

The natural gas industry expects to create thousands of jobs in Marcellus shale gas development in this decade, and state agencies and colleges are gearing up to train workers to fill those positions.

The Marcellus Shale Coalition, a trade group of about 100 gas producers and suppliers, said the boom created 44,000 jobs in the state last year. It is predicting thousands more this decade — some from gas production and some at suppliers, service companies and the spending of dollars generated by the drilling activity.

One complaint is that many jobs, particularly involving production, are going to out-of-state crews from Texas, Oklahoma and Louisiana.

Last year, it was estimated that 70 percent of the jobs were being filled by out-of-state workers. Now, more local workers have been hired, and the percentage of out-of-staters has likely fallen to 50 percent to 60 percent, said Danielle Boston, a spokeswoman for the coalition.

Chesapeake has had success hiring workers from the region, which has a history of natural gas operations, Guenther said. The company had to bring in more out-of-state workers for drilling operations in northeastern counties than in Southwestern Pennsylvania, he said.

“We try to hire local workers,” Guenther said.

While Pennsylvania can supply engineering, technical, land acquisition and legal expertise needed by the industry, job training efforts are under way to make sure local workers have the skills needed to land production jobs.

The Western Area Career and Technology Center in Canonsburg has trained more than 100 in a roustabout training program since last year, and the Pennsylvania College of Technology in Williamsport graduated about 200 workers from its roustabout program since October. The Westmoreland County Community College plans to begin a three-week roustabout training program for 15 students on Sept. 13.

“We’ve had about 20 companies hire our students, and we’ve been running the program for a year. We’ve got to take care of that work force” by providing training, said Joseph Iannetti, director of Western Area Career and Technology Center.

Community College of Allegheny County is considering how it can tailor programs to meet the job needs of energy companies, said spokesman David Hoovler.

A group of five community colleges — called Marcellus ShaleNet — received a $4.96 million grant from the Department of Labor to conduct a three-year training program for the gas industry. The effort is to focus on low-skilled and low-income workers. The colleges include Pennsylvania College of Technology in Williamsport and Westmoreland County Community College, along with schools in northern West Virginia, eastern Ohio and western New York.

One worker trying to take advantage of a training opportunity is Jeff White of Delmont, who was laid off this spring from a natural gas industry job. He knows all about the special demands of jobs in natural gas production and wants to get back into the field. He registered for the roustabout program at Westmoreland County Career and Technology Center.

“Once you get the bug of being with the guys, it’s hard to get it out. It’s your second family,” said White, who worked at a drilling site where pipe is lowered 8,000 feet underground to the rich Marcellus shale gas reserves.

Another candidate, Tony Bannister of Masontown, wants to replace part-time work with a full-time job. Bannister, 59, said he has a long career as a heavy equipment operator and hopes that helps him land one of those jobs.

“They make a lot of money, and there is a lot of opportunity for advancement. I’m up for anything,” Bannister said.

The state has identified six high-priority production jobs which local workers can be trained to fill, including roustabouts, rotary drill operators, truck drivers and service unit operators. About one in 10 requires a commercial driver’s license. And about 20 percent will be entry-level roustabout jobs, Boston said.

The drilling of one well can require almost 400 people working in almost 150 occupations.

Wages for roustabouts go up to $20 an hour, plus overtime, said Jeffrey F. Lorson, director of the Marcellus Shale Education and Training Center at the Pennsylvania College of Technology. The state estimates that the average weekly wage for an oil and gas production job in Southwestern Pennsylvania is about $1,600.

Some students graduating from Western Area Career and Technology Center in Canonsburg have landed jobs related to gas production and are being paid annual salaries of between $50,000 and $60,000, said Iannetti, director of the career center.

Range Resources Corp., a Texas-based gas producer with offices in Cecil, Washington County, is working with Western Area Career and Technology Center’s roustabout training program. Range hired graduates and placed them with experienced crews to learn on-the-job, said Matt Pitzarella, a Range spokesman.

View article here.

Copyright: PITTSBURGH TRIBUNE-REVIEW

By Joe Smydo, Pittsburgh Post-Gazette

Published: Tuesday, August 17, 2010

Former Gov. Tom Ridge this afternoon called Marcellus Shale gas production a “transformative opportunity” for Pennsylvania during an appearance Downtown in his new role as a strategic adviser to an industry group.

Still dressed in the jeans and checkered shirt that he wore to inspect production operations in Washington County earlier in the day, Mr. Ridge hailed the industry’s economic potential but also stressed the need to manage environmental concerns.

“We’re only getting one chance to get it right,” Mr. Ridge said, speaking at an energy conference sponsored by the Pittsburgh Business Times.

Speaking to reporters before and after the speech, Mr. Ridge said he hoped Pittsburgh City Councilman Doug Shields’ call to ban natural gas drilling in the city would be the “first chapter in a broader discussion” about the industry’s future here.

Mr. Ridge said he also opposed a one-year moratorium on new drilling statewide that’s been proposed by state Sen. Jim Ferlo, D-Highland Park. Mr. Ferlo proposed the moratorium to give officials time to ponder tighter regulations of the industry, but Mr. Ridge said the concerns can be addressed without a one-year delay in new permits.

Mr. Ridge and his two consulting firms accepted a $900,000, one-year contract to serve as advisers to the Cecil-based Marcellus Shale Coalition.

Earlier today, Mr. Shields unveiled his bill to ban natural gas extraction in the city, saying he won’t let the city return to its steel-era days as a center of pollution.

Mr. Shields said he knows the bill, if passed, would draw a legal challenge from the coalition of gas producers. But he said at a news conference he wants to assert the city’s sovereign authority to protect itself from a potentially harmful industry and preserve the environmental advances made since the smoky-city era.

“You want that back?” he said of the pollution.

Ben Price, who helped draft the bill as projects director for the Community Environmental Legal Defense Fund in Franklin County, said the city’s right to protect residents from the hazards of drilling should trump any state claim of authority over drilling matters.

“Rights precede the state,” he said. “Rights precede government. Rights precede state statues and are superior to them.”

Mr. Shields plans to introduce the bill Sept. 7. He criticized Mayor Luke Ravenstahl for opposing a ban and wondered which neighborhood the mayor considers suitable for drilling.

In response to Mr. Shields’ bill, Kathryn Klaber, president and executive director of the coalition, issued a statement saying the industry has a lot to offer.

“At a time when Pittsburghers are feeling uncertain about the current state and future direction of our economy, policymakers and our elected officials should recognize that all economic opportunities should be considered in full,” she said. “The shale gas industry has brought to my hometown new jobs, an expansion of our tax base, and environmental stewardship and a safety culture that pervades our daily work.

“The effort announced today by Councilman Shields furthers none of these tremendous benefits to Pittsburgh residents and taxpayers.”

Joe Smydo: jsmydo@post-gazette.com or 412-263-1548.

View article here.

Copyright: Pittsburgh Post-Gazette

Citing job creation, much-needed tax revenue generation, Mayor Ravenstahl opposes shale gas production ban

Canonsburg, Pa. – Despite the fact that no Marcellus Shale operators have any near-term prospects of producing clean-burning natural gas within Pittsburgh’s city limits, earlier today Councilman Doug Shields formally introduced legislation seeking to prevent private city landowners from generating value from their own private mineral rights – potentially setting a dangerous precedent. According to his spokesperson, Mayor Luke Ravenstahl opposes this effort. Kathryn Klaber, president of the Marcellus Shale Coalition (MSC), issued the following statement regarding the legislation:

“At a time when Pittsburghers are feeling uncertain about the current state and future direction of our economy, policymakers and our elected officials should recognize that all economic opportunities should be considered in full. The shale gas industry has brought to my hometown new jobs, an expansion of our tax base, and environmental stewardship and a safety culture that pervades our daily work. The effort announced today by Councilman Shields furthers none of these tremendous benefits to Pittsburgh residents and taxpayers – and in the process, attempts to deny residents in the city some of their most basic and fundamental rights.

“The extent to which the promise and potential of the Marcellus Shale is fully realized for our area will depend on a number of things – chief among them, our ability to demonstrate to the public that our operations are safe, and that the benefits they generate stand to improve the lives and livelihoods of every resident in the Commonwealth. It’s a task we take on with pride every day – and one to which the councilman’s legislation seeks to put an indefinite end, very much to the disservice of all who live in our city.

“Environmentally sound, tightly regulated shale gas development on privately-owned land in the region can and will create jobs and and revenues at a time when they’re most needed. Mayor Ravenstahl understands that; and our hope is that councilman Shields will see the merits.”

NOTE:

• The Pittsburg Post-Gazette reports today that “Mayor Luke Ravenstahl also opposes a ban, in part because drilling would create jobs, tax revenue for the state and spinoff revenue — such as earned-income tax — for the financially strapped city, his spokeswoman, Joanna Doven said.”

• This from a recent KDKA segment: “I believe if we can do it in a city like Fort Worth we can certainly do it in a city like Pittsburgh,” Kathryn Klaber, a spokesperson for the Marcellus Coalition, said. In recent years, natural gas companies have extracted gas from wells in the city of Fort Worth, Texas, and Klaber says drilling could be done safely in Pittsburgh. “Pittsburghers for generations have been able to figure out how to do things and I think they can figure out this one as well,” she said.

Copyright: Marcelluscoalition.org