Canonsburg, PA – Pennsylvania leads the nation in recycling water used to produce clean-burning natural gas from shale formations – a process that has been refined, enhanced, and expanded widely over the past year. At the same time, Pennsylvania has regulations and laws in place to ensure water is managed effectively and in a way that protects the environment. These policies are clear, straightforward and the toughest in the nation. Arecent review of Pennsylvania’s oil and natural gas regulatory program by the non-profit, multi-stakeholder group STRONGER determined that the state’s oversight of Marcellus development is “well-managed.”

While the New York Times raised some valid points in Sunday’s story — particularly on the issue of increased radium testing, something the Marcellus Shale Coalition supports — the paper’s second installment on produced water recycling is woefully unbalanced and inaccurate. Meanwhile, and not to be outdone, the Associated Press, in a story also filed this week, lodges a host of misleading, out of context claims about Marcellus wastewater management.

AP Assertion: “Pennsylvania’s natural gas drillers are still flushing vast quantities of contaminated wastewater into rivers that supply drinking water…”

• Fmr. PA DEP Sec. John Hanger: “Here’s the reality: Every drop of tap water that was publicly treated is required to meet the safe drinking water standard.” (Allentown Morning Call, 1/5/11)
• “The new drilling wastewater rule…singles out drilling wastewater for the strongest requirements.” (John Hanger personal blog, 1/27/11)
• By design, the AP fails to mention this critical fact in its lead, but mentions these industry-leading regulations later in the story.

NYT Claim: “In Pennsylvania, for example, natural-gas companies recycled less than half of the wastewater they produced during the 18 months that ended in December, according to state records.”

• But later in the piece, the reporter concedes “the amount reported recycled in the past six months is roughly 65 percent of the total produced, up from roughly 20 percent during the 12 months before that.” As of October 2009, only one Marcellus operator was recycling water across their operations while others were still in the initial phases – so why does the Times focus on recycling data going back 18 months?
• “According to production reports due Feb. 15 and posted last week…Marcellus Shale operators directly reused 6 million barrels of the 10.6 million barrels of waste fluids produced from about 1,500 different wells between July and December. At least an additional 978,000 barrels were taken to facilities that treat the water and return it to operators for reuse.” (Scranton Times-Tribune, 2/27/11)
• “The amount reused or recycled is about seven times larger than the 1 million barrels of wastewater Marcellus Shale drillers said they directly reused during the 12 months between July 2009 and June, the first time the drillers’ waste reports were made publicly available on the website.” (Scranton Times-Tribune, 2/27/11)
• “The majority of companies are working toward reusing 100 percent of their flowback water for several reasons. Environmentally it makes sense, and economically it makes more sense,’ [Penn State hydrologist Dan] Yoxtheimer said.” (Pittsburgh Post-Gazette, 3/1/11)
• “Of the 10.6 million barrels of wastewater that gushed from the wells in the final six months of 2010, at least 65 percent was recycled, a dramatic increase from previous years, when little or no recycling took place.” (Associated Press, 3/1/11)

AP Assertion: “They are unable, however, to remove the salty dissolved solids and chlorides that the wastewater picks up as it travels through the shale beds. There have been concerns about the salt levels rising in some Pennsylvania rivers that supply drinking water.”

• “The water that’s coming out of the tap in Pennsylvania is meeting the safe water drinking standards when it comes to total dissolved solids,” said Hanger. “Every single drop that is coming out of the tap in Pennsylvania today meets the safe drinking water standard.” (KDKA, 1/4/11)
• “The new permitted limit for discharges of wastewater from gas drilling is 500 mg/L of total dissolved solids and 250 mg/L for chlorides. All new and expanding facilities that treat gas well wastewater must now meet these discharge limits.” (Hanger blog, 1/27/11)

NYT Claim: “More than 90 percent of well operators in Pennsylvania use this process, known as hydrofracking, to get wells to produce. It involves injecting water mixed with sand and chemicals at high pressures to break up rock formations and release the gas.”

• The fact is 100 percent of shale gas wells in the U.S. are hydraulically fractured to enhance the flow of gas. The 90 percent figure – just one of the many inaccuracies in the story – perhaps refer to the percentage of total oil and natural gas wells fractured in the U.S.
• In failing to provide proper context, the Times does not indicate the fact that more than99.5 percent of the fluids used in the fracturing process are water and sand. The small portion of additives used prevent bacteria and corrosion from forming in the well-bore, and reduce friction during fracturing operations.

NYT Claim: “Wells also create waste that is not captured by recycling, because operators typically recycle only for the first several months after a well begins producing gas.”

• All Marcellus shale natural gas sites in Pennsylvania are equipped with storage tanks that capture residual wastewater after the initial flow-back. Like all wastewater, this water is treated and disposed by reuse and recycling, deep underground injection wells or treatment and surface disposal.

NYT: Within hours, the Times was forced to make at least two factual changes to the story, including at least one direct quote:

• Original quote from Dr. Radisav Vidic, engineering professor, University of Pittsburgh: “The wastewater that comes up from the well will, without a doubt, increase to some degree in radium and other radionuclides with each new fracking.”
• Updated: “The wastewater that comes up from the well will likely increase to some degree in many contaminants such as salts and possibly radium and other radionuclides with each new fracking. But the data is very limited on this issue so not much is known.”
• Original statement regarding abandonment of natural gas wells in Pennsylvania: “Though the amount of wastewater decreases over time, the wells can continue to ooze for decades, long after many of them are abandoned.”
• Updated: “Though the amount of wastewater decreases over time, the wells can continue to ooze for decades after they have been hydrofracked. There are regulations, however, that govern how gas wells are plugged and abandoned.”
• Marcellus Sale natural gas wells do not “ooze” for any period of time. All liquids that flow to the surface as natural gas is produced are captured in DEP regulated tanks. When a well no longer produces, it’s plugged according to strict guidelines laid out by the Pennsylvania Oil and Gas Act, section 601.210 and 25 Pa. Code Sec. 78.91 et seq.

Copyright: Marcelluscoalition.org

Shortly before midnight on Tuesday, April 19, a natural gas well in LeRoy Twp., Bradford County, malfunctioned and blew out in the process of hydraulic fracturing. There were no injuries reported. For over 12 hours Wednesday, thousands of gallons of waste fluid spilled from the well.

To read more about this natural gas drilling incident, click here.

For more coverage on the waste spill in Bradford County, including video footage, visit WNEP.

On behalf of the Board of Directors of the Marcellus Shale Coalition (MSC), I write to you today to express our commitment to meet the call of the Department of Environmental Protection (DEP) to halt the delivery of flowback and produced water from shale gas extraction to the facilities that currently accept it under special provisions of last year’s Total Dissolved Solids (TDS) regulations. Our members are carefully reviewing their operations and support achieving this milestone by May 19, 2011. The MSC shares the DEP’s dedication to the protection of public water supplies and is taking this action as a clear demonstration of that commitment. This decision is a further reflection of our Guiding Principles for responsible natural gas production – including our focus on state of the art environmental protections and increased transparency in our operations throughout the Commonwealth.

Canonsburg, PA – The Marcellus Shale Coalition (MSC) is actively working to reduce the amount of water taken to surface discharge facilities and is crafting solutions to address the issue of bromides entering waterways. When present with organic matter and chlorine – commonly used to at drinking water plants – brominated species of trihalomethanes (THMs) can form. Bromide, however, is not a public health concern, unless it reacts with other elements to form THMs above safe drinking water standards over an extended period of time. There are many known bromide contributors in our waterways. Marcellus operators are recycling significant and growing amounts of water; these figures continue to increase as technologies advance.

Kathryn Klaber, president and executive director of the MSC, issued the following statement:

“Research by Carnegie Mellon University and Pittsburgh Water and Sewer Authority experts suggests that the natural gas industry is a contributing factor to elevated levels of bromide in the Allegheny and Beaver Rivers. We are committed to leading efforts, and working alongside DEP and other stakeholders, to address these issues quickly and straightforwardly, and support the appropriate action taken by DEP today. As emphasized in our Guiding Principles, our industry will continue to implement state-of-the-art environmental protection across our operations and operate in a transparent and responsible manner.”

Gov. Tom Ridge, an MSC strategic advisor, added this:

“The Marcellus Shale Coalition remains committed to developing this great natural resource in a responsible manner. When sound research is brought to our attention, we will take swift action to address issues directly, as laid out in our Guiding Principles. We support DEP’s efforts, and will continue to work aggressively and collaboratively to craft solutions aimed to protecting our waterways and our environment.”

Copyright: Marcellus Shale Coalition

Canonsburg, PA – The Marcellus Shale Coalition (MSC) is actively working to reduce the amount of water taken to surface discharge facilities and is crafting solutions to address the issue of bromides entering waterways. When present with organic matter and chlorine – commonly used to at drinking water plants – brominated species of trihalomethanes (THMs) can form. Bromide, however, is not a public health concern, unless it reacts with other elements to form THMs above safe drinking water standards over an extended period of time. There are many known bromide contributors in our waterways. Marcellus operators are recycling significant and growing amounts of water; these figures continue to increase as technologies advance.

Kathryn Klaber, president and executive director of the MSC, issued the following statement:

“Research by Carnegie Mellon University and Pittsburgh Water and Sewer Authority experts suggests that the natural gas industry is a contributing factor to elevated levels of bromide in the Allegheny and Beaver Rivers. We are committed to leading efforts, and working alongside DEP and other stakeholders, to address these issues quickly and straightforwardly, and support the appropriate action taken by DEP today. As emphasized in our Guiding Principles, our industry will continue to implement state-of-the-art environmental protection across our operations and operate in a transparent and responsible manner.”

Gov. Tom Ridge, an MSC strategic advisor, added this:

“The Marcellus Shale Coalition remains committed to developing this great natural resource in a responsible manner. When sound research is brought to our attention, we will take swift action to address issues directly, as laid out in our Guiding Principles. We support DEP’s efforts, and will continue to work aggressively and collaboratively to craft solutions aimed to protecting our waterways and our environment.”

New York Times Columnist Joe Nocera: “The country has been handed an incredible gift with the Marcellus Shale. With an estimated 500 trillion cubic feet of reserves, it is widely believed to be the second-largest natural gas field ever discovered. Which means that those of you who live near this tremendous resource have two choices. You can play the Not-In-My-Backyard card, employing environmental scare tactics to fight attempts to drill for that gas. Or you can embrace the idea that America needs the Marcellus Shale, accept the inconvenience that the drilling will bring, but insist that it be done properly. If you choose this latter path, you will be helping to move the country to a fuel that is — yes — cleaner than oil, while diminishing the strategic importance of the Middle East, where American soldiers continue to die. (New York Times, 4/15/11)

“Local Economy Could Benefit From Utica Shale Leasing”: Ohioans are rediscovering oil and natural gas in their own backyards, because of the potential of the Utica Shale deposits thousands of feet below the surface. And Coshocton and surrounding counties are primed for the pumping. Energy companies are looking to lease land to expand west out of Pennsylvania’s Marcellus Shale and into Ohio’s Utica Shale play. … “It’s a game-changer for the economy here,” [Jack Sordoni, president of Homeland Energy Ventures] said, due to the potential for six-figure bonus payments and annual royalties. (Coshocton Tribune, 4/17/11)

NY Congressman Tom Reed: “New York – and America – Can Profit From Marcellus Shale”: Responsible development of the Marcellus Shale natural gas field has tremendous potential to help meet both of these challenges, and many, many more. In 2009, the production of Marcellus Shale in Pennsylvania had an economic output of more than $3.8 billion, and generated more than $400 million in state and local tax revenues, while creating 48,000 new jobs. There is no reason to believe that we wouldn’t see a similar positive effect in New York. We need this economic development. The 2010 census numbers released recently were, unfortunately, no surprise. Western New York and the southern tier of New York experienced concentrated levels of population decline. … Penn State recently determined that counties in Pennsylvania where Marcellus development has taken place saw, on average, an 11 percent growth in sales tax revenue. Our local governments could derive much needed revenue from Marcellus Shale production. (Washington Examiner, 4/14/11)

“Ohio’s Shale Deposits Hold Potential For Oil, Gas Jobs”: Thousands of feet below the surface of Ohio, encased inside a rock formation millions of years old, is a veritable ocean of oil and natural gas that could be worth billions of dollars and create thousands of jobs. … Eventually, drilling jobs could be created in eastern Ohio, where unemployment rates are much higher than the state and national averages. Some landowners there already have benefited, getting thousands of dollars per acre from mineral extractors competing over increasingly fewer tracts. … Pennsylvania and West Virginia both enjoyed a natural gas boom in recent years spawned from the Marcellus Shale, which sits a thousand feet or so above the Utica and has only a small presence in the extreme east of Ohio. … A Penn State University report, updated last year, on the economic effect of the Marcellus projects expects 111,000 total jobs to be created this year alone. More than $10 billion will be added to the Pennsylvania economy through extraction from the Marcellus, according to the report. (Zanesville Times Recorder, 4/17/11)

“Marcellus Among Reasons Pittsburgh Moves up 48 Slots on Small Business Vitality Rankings”: Credit the Marcellus gas exploration boom for keeping Judy Wojanis smiling these days. The emerging gas industry is fueling double-digit sales growth at Wojanis Hydraulic Supply Co. Inc., a Coraopolis-based supplier of pneumatic and fluid power equipment, said Wojanis, company president. And the company has been hiring, too. Wojanis Hydraulic employs 18 people, three of whom were added in the past year. “There’s been a boom during the last two years,” Wojanis said. “We’re very happy about it.” (Pittsburgh Business Times, 4/15/11)

“Unprecedented Economic Impacts of Shale Gas Development”: Matt Pitzarella, a spokesman for Range Resources in Cecil, said that’s an example of the “unprecedented economic impacts of shale gas development” in the state. He noted an uptick this year in weekly wages in Washington County and an almost 50 percent increase in the number of Pennsylvania mining and logging industry jobs from 2007 to 2011, according to the Bureau of Labor Statistics. (Tribune-Review, 4/17/11)

Eight hour intensive training overview of natural gas production, principles, practices, and standards.

Canonsburg, Pa. – According to a new USA Today analysis, “The share of the population that is working fell to its lowest level last year since women started entering the workforce in large numbers three decades ago.” In today’s paper, reporter Dennis Cauchon notes that “only 45.4% of Americans had jobs in 2010, the lowest rate since 1983 and down from a peak of 49.3% in 2000. Last year, just 66.8% of men had jobs, the lowest on record.”

The nation’s economic outlook, by most metrics, is grim. In Pennsylvania, modest overall employment growth is projected over the next year, the USA Today reports. Yet there’s a silver lining. While many industries have experienced cutbacks and lower rates of projected job growth, Pennsylvania’s ‘Natural resources & mining’ and ‘Professional & business services’ — at respective rates of 4.0% and 3.2% — continue to be leading sources of job creation in the Commonwealth.

Natural resources jobs account for direct Marcellus Shale-related employment. And according to the USA Today, professional and business services jobs included ‘scientific, technical services, management of companies, administrative support, waste management and remediation services.’ (Yes, these numbers are in line with the Marcellus Shale’s Coalition’s (MSC) analysis from earlier this month – available HERE).

We call it the ‘Marcellus Multiplier’ – the powerful supply chain, made up of a host of small and mid-sized businesses, that plays a critical role in enabling the responsible development of clean-burning American natural gas from up to 9,000 feet below ground. Here’s a quick look at how this job-creating impact is revitalizing communities:

• While Fewer Than Half Americans Had Jobs Last Year, Penn Tech Grads “Can Pick From 15 to 20” Marcellus Jobs: Students graduating from the Pennsylvania College of Technology with two-year degrees in heavy equipment technology and diesel mechanics are being offered up to $20 an hour, said Mary Sullivan, dean of natural resources management. Some graduates are earning $70,000 a year, she said. Companies are telling the college “we’ll take everyone you can give us and then some,” Sullivan said. A graduate can pick from 15 to 20 jobs, she said. (Patriot News, 4/9/11)

• “Pennsylvania Enters ‘Golden Age’ of Natural Gas”: More [Marcellus] jobs draw in more people, boosting the state economy and the finances of individuals. Supply store owners like Paul Battista have tailored their inventories to meet the demands of the natural gas industry, resulting in a boom in profits. “From ‘08 to ‘09, we probably had a 30-35 percent increase in our gross sales,” Battista said. “And from ‘09 to ‘10, we had a 100 percent increase in our business. And so far, 2011, we’re seeing another 100 percent increase over 2010.” (CBN News, 4/14/11)

• “Landscape Architects Find New Business in Marcellus Shale”: The term “landscape architect” is more likely to conjure images of Central Park in New York than it is drilling rigs in Pennsylvania, but the natural gas boom in the Marcellus Shale has brought new life to a profession hit hard by the recession. … However, work generated by the Marcellus industry has become the bread and butter for many of his colleagues in the west and north-central portion of the state, said [Thomas] McLane. …McLane said he’s already seeing a surge in commercial and residential work along Route 6, the main road across the northern tier. (Patriot-News, 4/11/11)

Families, consumers, small businesses and those looking for steady work across the region recognize these clear economic benefits. In fact, a recent Institute for Public Policy & Economic Development poll analysis determined that a clear majority of Pennsylvanians support the responsible development of American natural gas from the Marcellus Shale. According the survey, “among those who did have opinions, more than two times as many expressed support for developing the gas industry as opposed it.” By clear margins, respondents not only support or strongly support Marcellus Shale development, but they also believe the “availability of jobs and job training opportunities were more likely to be expected to ‘get better.’”

More important than new jobs and millions in tax revenue generated for local governments and for the Commonwealth, though, is the industry’s unwavering commitment to protecting the environment and getting this historic opportunity right. “Drilling can proceed safely,” said PennFuture president and CEO Jan Jarrett this week. She’s absolutely right. And as Ray Walker Jr., senior vice president of Range Resources and chairman of the MSC, told a crowd of 700 in Pittsburgh on Monday evening: “Nobody wants to do it right more than the companies that do it.”

Interested in joining our industry? Please visit the MSC’s Jobs Portal to learn more about employment opportunities, because we’re hiring.

Canonsburg, PA – Pursuant to the Delaware River Basin Commission (DRBC) public notice for comment on Proposed Amendments to the Water Quality Regulations, Water Code and Comprehensive Plan to Provide for Regulation of Natural Gas Development Projects (hereinto “draft regulations”), the Marcellus Shale Coalition (MSC) this week submitted comments outlining concerns with the draft regulations, while emphasizing support for working with the DRBC throughout the regulatory process.

“The MSC supports DRBC in its stated mission of ensuring that proper environmental controls are provided to safeguard the water resources of the Delaware River Basin, and of establishing a regulatory scheme within the scope of DRBC authority that complements state and federal requirements,” said Kathryn Klaber, president of the MSC. “However, the MSC has significant concern regarding the scope of the draft regulations, which we believe exceed DRBC’s legal authority and duplicate member state jurisdiction and existing DRBC programs in several critical respects.”

Specifically, the MSC’s comments, in part cite the following areas of paramount concern:

• · Requirements for the Siting, Design and Operation of Well Pads: The Draft Regulations contain very detailed and far-reaching land use requirements pertaining to the siting, design, construction and operation of well pads for natural gas activities – representing a significant and unnecessary departure from the agency’s role of managing water resources in the basin. These proposed regulations contain a host of new construction and operational standards that are either not required by or inconsistent with state regulatory requirements.
• · Exceed the Scope of DRBC authority: DRBC’s regulatory authority is derived from, and thus limited by, the Delaware River Basin Compact, which established DRBC in 1961 as a regional agency to manage and control the water resources of the Delaware River Basin. The Compact does not grant DRBC review and approval authority over land use as outlined in the draft regulations.
• · Duplicative of State Requirements: Both New York and Pennsylvania have comprehensive oil and gas regulatory programs.  DRBC should defer to the member state programs in all areas where they regulate, and thereby avoid unnecessary, duplicative requirements and administrative costs.
• · Natural Gas Development Plan (NGDP) is Unworkable: A requirement to submit a 5-year NGDP for review and approval, which would compel operators to prepare detailed, forward-looking information about the development of all of their leasehold areas in the Basin, is unworkable and demonstrates a fundamental misunderstanding of the manner in which natural gas development occurs. This level of detail – over the entirety of an operator’s lease holdings to be developed in 5-years – would be impossible to assemble with any meaning or accuracy in advance.
• · Water Related to Natural Gas Development: The Draft Regulations addresses water sources for uses related to natural gas development.  Much of this section is unnecessary, since DRBC already has a well-established program for review and approval of water withdrawals.  DRBC should utilize its existing program for Project Review under Section 3.8 of the Compact and should not adopt a special water source program for water used in natural gas operations.  No other industry is singled out by DRBC with an industry-specific water source regulation.

In addition to submitting formal comments, the MSC, partnering with American Petroleum Institute (API), requested an independent analysis of the draft regulations by ALL Consulting, a professional consulting firm specializing in water management, planning and energy development. The complete analysis, available HERE, was submitted to the DRBC for review and consideration. Following are several key findings of the analysis:

• The consumptive water use requirements for natural gas development at full build-out, as compared to other water uses within the Basin, are relatively minor. The nuclear power industry uses more than 10 times the amount of water that would be used for natural gas development; golf course maintenance uses more than 20 times the amount; and thermoelectric power generation and agriculture use more than 45 times the amount.
• The land footprint for natural gas development, as compared to other land uses, is relatively minor. The footprint for natural gas development would be less than the footprint for golf courses in the Basin and 50 times less than the footprint for homes in the Basin.
• Absent a variance, the siting restrictions and setbacks contained in the Draft Regulations would preclude natural gas development in more than half of the land area overlying the Marcellus Shale formation in the Basin.
• Many of the submittals, reporting requirements and notices required by the Draft Regulations are duplicative of host state requirements.
• The process of applying for and obtaining approval to develop natural gas wells pursuant to the Draft Regulations is likely to take as long as 24 months.

The ALL Report also includes a comprehensive bibliography of technical resources that address many of the issues raised in comments to DRBC regarding shale gas development in the Basin.

Canonsburg, Pa. – After months of collaborative efforts led by the Ground Water Protection Council (GWPC) and the Interstate Oil and Gas Compact Commission (IOGCC),  www.FracFocus.org officially launched yesterday. The site, funded in part by the U.S. Dept. of Energy, will disclose the additives used in the hydraulic fracturing process on a well-by-well basis. These additives typically make of less than 0.5 percent of the fluids used in the process – the remaining 99.5 percent is made up of water and sand.

“As underscored in our Guiding Principles, our industry is continuously working to improve best practices while seeking transparency across all of our operations. This new site is a critical tool, and represents a positive step toward further heightening transparency,” said Kathryn Klaber, president and executive director of the Marcellus Shale Coalition. “This online database should also bring closure to the question of what and how many additives are used in the fracturing process, a tightly-regulated 60 year old technology that’s been safely used more than 1.1 million times across the nation without ever impacting groundwater.”

In a release, GWPC executive director Mike Paque said: “For the past six months, our two organizations have been working together to build this first-of-its-kind web-based national chemical registry. As more and more questions were asked about the hydraulic fracturing process the past couple of years – particularly relating to chemical additives used in the process – we recognized an obstacle to greater disclosure was the lack of a uniform and efficient way to collect, report, and ensure public access. Information about additives used in the process was widely distributed, but difficult to access.”

MORE INFO:
·         PA DEP Fact Sheet: Chemicals Used by Hydraulic Fracturing Companies in
Pennsylvania
·         PA DEP Fact Sheet:
o    Can drilling companies keep the names of chemicals used at drilling sites a secret?
o    No. Drilling companies must disclose the names of all chemicals to be stored and used at
a drilling site in the Pollution Prevention and Contingency Plan that must be submitted to
DEP as part of the permit application process.