Archive for the ‘Marcellus Shale Coalition’ Category
MSC Statement on Pittsburgh City Council’s Misguided Resolution on Shale Gas Development
Canonsburg, Pa. – Earlier today, the Pittsburgh City Council passed a resolution calling for a statewide ban on clean-burning natural gas from the Marcellus Shale for an entire year, including the development of those resources on privately-owned land. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement in response to Council’s resolution, which carries no legal authority:
“Today’s action by the Pittsburgh City Council is unfortunate, unnecessary, and frankly, ill-advised. Most troubling, it comes at a time when the responsible development of clean-burning natural gas from the Marcellus is creating tens of thousands of jobs for residents all across the Commonwealth, breathing new life into our economy at a time and place when it’s perhaps never been needed more.
“Unfortunately, Council appears to have bought wholesale into the argument that Marcellus exploration represents a threat to our water and surrounding environment, notwithstanding a mountain of evidence from EPA, DEP and a just about every environmental regulator across the country that says precisely the opposite. Council has instead decided to take a position that’s unsupported by science, an affront to the rights of landowners, and very much at odds with a budget picture that could be significantly improved under a scenario of safe development and enormous revenue generation within the boundaries of the Council’s jurisdiction.
“Producing more energy here at home creates good-paying jobs, and helps drive down our nation’s dependence on unstable and unfriendly regions of world for the energy we need to fuel our economy. Pennsylvanians overwhelmingly understand this. Job-creators and small business owners understand this, too. It’s unfortunate that Pittsburgh City Council does not.”
Copyright: Marcelluscoalition.org
What They’re Saying: Responsible Marcellus Development “A wonderful thing,” Creating “much-needed jobs and economic growth”
- “Business is booming thanks to the lucrative gas drilling industry tapping into the Marcellus Shale”
- Marcellus development “enables those of us who have farms to keep our farms so they can be passed on to our families”
- “Safe and responsible gas development could provide the three counties with much-needed jobs and economic growth”
- WV small business “having a banner year in 2010”
“Marcellus Shale region creating growth of business and industry”: “With the development of the Marcellus Shale region creating growth of business and industry within Bradford County, we feel there is tremendous opportunity for this new hotel. In addition to our locations in State College and Lock Haven, it becomes our third Fairfield Inn and Suites in the region.” (Star-Gazette, 7/14/10)
Marcellus development positively impacting local businesses; WV small business “already is having a banner year”: “Assuming the landowner group agrees to $3,000 per acre, the resulting $79.2 million could have a major impact not only on landowners, but on local businesses. Karen Knight, a partner at Knights Farm Supply in Glen Easton, said her company already is having a banner year in 2010 as both property owners and the drilling companies themselves scramble to acquire heavy equipment and other items. “We have seen a big increase in tractor sales, farm equipment sales, grass seed for reseeding at the drilling sites, straw for reseeding and other items. It’s a better year than 2009 for sure,” she said. “Our counter is swamped every day with residents and representatives from the drilling companies. In fact, our parts and counter people are about done in. We’ve been extremely busy.” (News-Register, 7/18/10)
“Prosperous Plans For Bradford County”: “As gas companies tap into the Marcellus Shale in Bradford County, businesses are looking to cash in on what many now consider a booming local economy. … A once abandoned warehouse is now the home for a trucking company. A hotel — gutted for refurbishing. And a excavator sits in this empty lot ready for its next construction project. One thing is clear in Bradford County — business is booming thanks to the lucrative gas drilling industry tapping into the Marcellus Shale, as thousands of workers and their families flock to the area. “I think there are many small towns across America that would die to have a natural resource that they can sell and revitalize their economy,” said Mike Holt of Red Rose Diner in Towanda. (WBNG-TV, 7/13/10)
Marcellus Shale helping to keep family farms in tact: “Nearly 600 residents attended Wednesday’s day-long DRBC meeting to plead their clashing cases: That drilling is needed not only to produce relatively clean energy but to save economically desperate communities … Landowners like Judy Ahrens of Hanesdale, Pa., argued that they should be able to lease the mineral rights to their land. “It enables those of us who have farms to keep our farms so they can be passed on to our families so they don’t have to be split up and developed,” she said. (Associated Press, 7/15/10)
“Gas drilling not only creates local jobs, but increases the nation’s energy independence”: “Gas drilling not only creates local jobs, but increases the nation’s energy independence, pro-drillers say. “I support gas drilling,” said David Jones, as part of a three-hour public comment period with more than 250 speakers. “I also believe that the industry is being unfairly treated. This process has been delayed for too long. Let’s get the regulations out,” he said, to the jeers of most of the crowd. “We don’t need further studies. The process should move forward.” (Bucks Co. Courier Times, 7/15/10)
Responsible Marcellus development “a win win situation all around”: “Some landowners in Wayne County want natural gas drilling to start and start now. They are upset over a decision to halt drilling by a group watching out for the land and water in the Delaware River Basin. Landowners are ready for the halt on gas drilling to be lifted in Wayne County. “It will help to maintain open space and keep our forest grounds grounded and our farms farming.The influx of cash is desperately needed in the state of Pennsylvania, and particularly in the depressed areas of Wayne County, said Alliance Executive Director Marian Schweighofter. … “The effect this has had is its given us the ability to make a college fund for our family members. We think it’s a win win situation all around, most definitely for the economic ability of Wayne County,” said Schweighofter. (WNEP-TV, 7/13/10)
Marcellus production providing “much-needed jobs and economic growth”: “The bottom line is this: If natural gas drilling has economic benefits for Wayne County and can be conducted safely with people mindful about protecting our natural resource, the Delaware River, then shouldn’t we explore the possibilities? … Mary Beth Wood, WEDCO’s executive director, said it best in stating that the coalition — through pooling resources — can gather the best information available. “Safe and responsible gas development could provide the three counties with much-needed jobs and economic growth,” Wood said. (Wayne Independent Editorial, 7/14/10)
Marcellus economic “ripple effect will benefit everyone”: “The Marcellus shale gas drilling boom drew companies from across the country. More than 100 of them packed the Indiana County Fairgrounds Wednesday. The PA Gas Expo was a job fair, a networking event, and a chance for folks to find out what Marcellus shale gas drilling means in employment for thousands. County Commissioners said they have already noticed hotels and restaurants in Indiana County filling up with gas company workers. They said ripple effect will benefit everyone. “The growth element for the region will not be in just one area, but in many areas. And we need to be prepared for that,” said Rod Ruddock. (WJAC-TV, 7/14/10)
“Is this a golden era for Pennsylvania? Absolutely it is.”: “In a sour economy, the word out of Renda Broadcasting Corp.’s first Pennsylvania Gas Expo was sweet: Now hiring. Several companies at the expo, held Wednesday at the Mack Park fairgrounds, reported thatthey are in a hiring mode as they ramp up operations in the Marcellus shale fields underlying the region. The expo brought together 120 or so natural gas producers, drillers, land brokers, well-service companies, suppliers and job seekers. … “Is this a golden era for Pennsylvania? Absolutely it is,” said Rod Foreman, Vanderra’s director of growth and corporate development, speaking during a panel discussion. (Indiana Gazette, 7/15/10)
Pa. landowner on Marcellus development: “I think it’s a wonderful thing”: “The tiny farming community has struggled to strengthen its economy ever since Mosser Tanning Co. left town in 1961. … So, when a gas company comes and injects millions of dollars into a community that has seen half a century pass by since its industrial backbone collapsed, residents are more than excited. “I think it’s a wonderful thing,” Ms. Race said. “It’s got to help financially; much more taxes, much more money. “We’re going to finish paying our mortgage off.” (Times-Tribune, 7/19/10)
Homeowners getting in on Marcellus Shale benefits: “In this struggling economy homeowners have been coming forward hoping to make a big buck from Marcellus shale natural gas drilling boom. Mary Elwood and her husband own a farm in Saltburg, Indiana County. They already have three gas wells and a lease with PC Explorations. Elwood said it is a very profitable endeavor. She wants to sign a lease with another gas company for Marcellus shale drilling. “We get a nice check four times a year,” said Elwood. (WJAC-TV,7/14/10)
Filling county coffers: Marcellus “lease, permit fees good for tens of thousands of dollars”: “The governmental fees related to natural gas drilling that industry officials have been dangling as a cash carrot of sorts to local officials are starting to add up in Luzerne County. A review of county Zoning Office records revealed that just on Wednesday, the office took in $4,450 in permit fees for the construction of a natural gas metering station on property owned by Thomas Raskiewicz near Mossville and Hartman roads in Fairmount Township. … Butthe big winner among county offices to date – as far as revenue associated with natural gas drilling – is the Office of the Recorder of Deeds. (Times-Leader, 7/19/10)
Copyright: Marcelluscoalition.org
MSC Announces David Callahan as Coalition’s New Vice President
Callahan brings more than a decade of energy experience to the job, lauded by MSC chairman and president as a “key collaborator” in engaging elected officials and partners
CANONSBURG, Pa. – As Marcellus Shale employers continue to work with policymakers on a comprehensive framework for taking full advantage of the myriad opportunities that natural gas exploration make possible, the Marcellus Shale Coalition (MSC) today announced the addition of a key member to its staff who will be among those serving on the frontlines of that critical and ongoing effort.
Starting this week, David Callahan will serve as MSC’s vice president, a position dually based in Harrisburg and Canonsburg, Pa., but one that will take Mr. Callahan all across the multistate Marcellus region. A native Pennsylvanian, Mr. Callahan has 20 years of experience in the field of government relations, a majority spent representing a number of energy interests, including the Pennsylvania Gas Association (now the Energy Association of Pennsylvania) and the Associated Petroleum Industries of Pennsylvania.
“The safe and steady development of natural gas from the Marcellus Shale represents a once-in-a-lifetime opportunity for shared prosperity across the entire Marcellus,” said Kathryn Klaber, president and executive director of the MSC. “But that vision of the future that will only be realized through engagement and cooperation with policymakers and elected leaders in the region. David’s experience working collaboratively with legislators and regulators alike will serve our members well, and ultimately benefit everyone by advancing a strategy that generates jobs and revenues in the short-term, and the promise of long-term energy security and affordability beyond that.”
“The industry continues to create tens of thousands of jobs each and every year all across the multistate Marcellus region, our membership has continued to expand as well – and so has our strength and expertise,” said Ray Walker, Jr., chairman of the MSC and a senior vice-president for Range Resources. “The addition of David to the growing MSC staff represents a key step forward for this Coalition, and an important resource in our campaign to educate the public about the historic opportunities of the Marcellus, while educating policymakers on the imperative of keeping the Marcellus ahead of the competition curve in the ongoing and aggressive race for talent, equipment and investment.”
Mr. Callahan, currently a resident of Mechanicsburg, Pa., earned his undergraduate degree from Indiana University of Pennsylvania, and his master’s from Syracuse University’s Maxwell School of Citizenship and Public Affairs.
Copyright: Marcelluscoalition.org
Floods, Famines, Earthquakes and the DRBC
Landowners, communities challenge Delaware River Basin Commission to explain rationale, authority behind denying opportunity of the Marcellus to Northeast PA
Translated literally from French it means “superior force,” but translated practically into American law, the term force majeure is a clause used by parties that encounter a situation so severe that it’s actually designated as an “Act of God” by the courts. Floods, famines, earthquakes, volcanoes – these are the kinds of events that trigger the rare invocation of the clause, allowing all parties involved in a contract to shield themselves of obligation in light of the extraordinary and unforeseen events that transpired after it was signed.
Actually, there’s one other event that has historically fallen under the rubric of force majeure: acts of war. Unfortunately, in the case of the West Trenton, N.J.-based Delaware River Basin Commission (DRBC), that’s precisely the action that was taken against landowners in eastern Pennsylvania last month, with the Commission instituting a de-facto, back-door moratorium on all activities within its sprawling jurisdiction even tangentially related to the development of clean-burning natural gas from the Marcellus Shale.
The upshot? This description comes from the June 30 edition of the Philadelphia Inquirer:
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Of course, with potentially thousands of jobs at stake in the area – and millions of dollars in much-needed payments to landowners and state and local governments – folks who actually live and work in the Northeast PA counties affected by the DRBC promulgation aren’t exactly taking the decision lying down.
Case in point: Later today, the DRBC will hold a regularly scheduled hearing on a whole slate of issues related to regional water use and management, including a draft water withdrawal request from an energy operator in the area. Among the folks expected to attend? A busload of landowners from the Northern Wayne Property Owners Association (NWPOA), and from the information we’ve been able to glean from its website, the group is expecting a significant showing among residents in the area concerned by the implications of DRBC’s historic overreach on natural gas. To wit:
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Back in June, the Marcellus Shale Coalition released an issue alert on the DRBC moratorium decision, wondering aloud if the modern-day DRBC would have let George Washington cross the Delaware without first initiating a years-long review procedure aimed at stalling the process and ultimately executing a pocket-veto of the entire enterprise. Needless to say, the denial of energy and mineral rights to landowners across the border in Pennsylvania wasn’t exactly what the creators of DRBC had in mind 50 years ago when the commission was created.
Earlier this week, the MSC expanded on its previously stated objections to the DRBC moratorium in a letter sent to Commission director Carol Collier. You see, in extending its initial ban to include a moratorium on doing even the most basic things to test the future viability of natural gas wells in the affected counties, the Commission cited “the risk to water resources” as the reason for pulling the plug on exploratory work in the area. But as MSC president and executive director Kathryn Klaber makes plain in her letter to DRBC this week, no water would be put at risk under such an approach – and very little of it will need to be withdrawn from surface areas under DRBC jurisdiction:
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Of course, if DRBC’s review and approval of permits in this context is considered appropriate, then “it likewise would be appropriate for the development of a multitude of projects over which the Commission, appropriately, has not sought to assert jurisdiction, such as malls, hotels, restaurants, and residential subdivisions,” according to the letter from MSC.
So why is natural gas so different? That question, unfortunately, is not one that DRBC has answered with any degree of specificity just yet –content instead to simply assert its primacy over the matter and issue sweeping, multi-state declarations with significant implications for the clean-energy future of Pennsylvania and the economic security of those who live here. Hopefully, with the help of groups like NWPOA, the Commission will soon find itself in a position to better understand that the actions it makes from West Trenton, N.J. have real-world consequences for residents in the Commonwealth.
Copyright: Marcelluscoalition.org
MSC Statement on New DEP Wellsite Standards
CANONSBURG, Pa. – Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement today after reviewing the letter sent to all Marcellus operators by the Department of Environmental Protection (DEP) as a follow-up to the agency’s investigation of a mechanical wellsite incident in Clearfield County last month:
“Today’s letter from DEP puts forth a series of new regulations that have already been incorporated by many of our members as part of their regular wellsite operations. Our industry is committed to continuously enhancing and improving our operations, and leveraging the opportunities of the Marcellus in a manner that’s safe, efficient and beneficial to all Pennsylvanians.”
All Wet on Fair Pooling
Fair Pooling protects the environment, reduces environmental footprints, and generates more revenue for environmental programs – so why do environmentalists oppose it?
CANONSBURG – When is an environmentalist not an environmentalist? How about when he sends a letter to lawmakers in Harrisburg demanding they reject a proposal that would result in greater efficiency in developing clean-burning natural gas from the Marcellus, far less disturbance to land while doing it, and millions in revenue for state programs to protect and preserve the environment?
Unfortunately, that’s precisely the letter that members of the General Assembly received this week – sent by a coalition of more than 30 groups that claim to support all the things that a Fair Pooling statute in Pennsylvania would make possible (smaller footprints and more revenue, especially), but nonetheless stand in opposition to the adoption of the actual plan.
Of course, virtually every energy-producing state in America has fair pooling protection on the books – and for good reason. Fair pooling allows for “equitable and efficient development of [natural gas] while preventing the drilling of unnecessary wells,” according to Michigan’s Department of Environmental Quality – “at the same time, it protects an owner from having his or her oil and gas drained without compensation.”
The Harvard Law Review agrees: “Pooling is important in the prevention of drilling of unnecessary and uneconomic wells, which will usually result in physical and economic waste.” That line comes from an article on efforts to conserve oil and natural gas published in the Review back in 1952.
So if these environmental groups can’t defend their opposition to Fair Pooling onenvironmental grounds, what arguments do they use instead? See below a quick side-by-side of the charges leveled by these groups’ compared with the actual facts of what Fair Pooling is, and what it is not.
Activists search for reasons to oppose Fair Pooling … | … Even though Fair Pooling is a clear win for PA’s environment and landowners |
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“[P]ooling … would force property owners in Pennsylvania to lease their mineral rights to a gas company…”
(Letter from Myron Arnowitt to General Assembly, PA Campaign for Clean Water; co-signed by 30 others; June 29, 2010) |
Fair pooling isn’t about forcing anyone to do anything. It’s about creating an equitable system that allows private landowners to exercise their private mineral rights for the benefit of themselves and their families.
Landowners who decide not to lease will not be considered leasees, nor will they see a rig on their property or an inch of their land disturbed. The only thing they will see? A check in their mailbox each month. |
“Some landowners have decided they do not want to lease their mineral rights … The oil and gas industry would like the General Assembly to overturn the landowners’ decisions.” (letter) | Once again, they have it exactly backwards. Landowners who don’t want to lease their land for Marcellus development will not be forced to lease their land under Fair Pooling. But they also won’t be allowed to deny their neighbors that same choice.
Click Here for MSC’s fact sheet on Fair Pooling. |
“It has been argued that … pooling would result in a less disruptive and more environmentally protective approach to drilling for natural gas in the Marcellus Shale. However, there is no evidence that … pooling diminishes environmental impact. … [P]ooling should not result in forced pollution.” (letter) | No evidence?
The principle of Fair Pooling as a tool of oil and gas conservation and environmental protection is as old the development of energy itself – and “a vital regulatory tool created to conserve oil and gas, protect correlative rights and prevent waste,” according toTexas Tech University (in case you don’t believe theHarvard Law Review or the state of Michigan). |
“[Pooling] essentially extends the concept of eminent domain but instead of using private property for the public good, it takes private property for private gain.” (letter) Copyright: Marcelluscoalition.org |
For the small minority of landowners who have not leased, conservation pooling ensures two important outcomes: (1) a fair share of royalties (whereas, under current law, gas can be extracted from under their property without any compensation); and, (2) a guarantee of no surface interference (i.e., no drill, no pipelines, no roads, etc.). |
MSC: Budget Agreement a Win for PA’s Economy, Environment
Marcellus producers express commitment to working with lawmakers on comprehensive tax, regulatory and legislative plan for the future
CANONSBURG, Pa. – Earlier today, Gov. Ed Rendell signed a budget plan for 2010-2011 that recognizes the critical contributions that natural gas producers are making in Pennsylvania. The new budget, the product of months of hard work by members of the General Assembly, does not include new taxes on Marcellus Shale employers – but does include a commitment by our elected leaders to conduct a comprehensive evaluation of how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.
Subsequent to the governor’s signing today, Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement in strong support of the plan:
“Today’s announcement represents a positive step forward. The MSC has said from the start that it was going to take more than hard work and favorable geology to leverage the once-in-a-lifetime opportunity of the Marcellus into jobs, revenue and long-term energy affordability for all Pennsylvanians.
“To do this, and do it right, we need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface. Today, Pennsylvania announced its intention to compete for these opportunities. And we are pleased to have played a role in working with the legislature to get this process started on the right path.
“MSC members will continue to be key participants in this iterative, ongoing process, working alongside the General Assembly, the Administration and stakeholders across the Commonwealth to put our state in the best possible position to seize on the extraordinary opportunities of the Marcellus. And when it comes to that objective, there’s nothing more important than having a tax, regulatory and legislative framework in place that’s collaborative in its approach, and comprehensive in its design. Today’s agreement moves us one step closer toward the realization of such a plan.”
NOTE: As reported last week in the Towanda Daily Review, Bradford County currently ranks among the top job-producing counties in the state – a surge in employment that’s directly tied to the responsible development of the Marcellus Shale in the area. All told, Bradford Co. added more than 2,000 workers to the job rolls over the past 12 months, even as more than 60 other counties in Pennsylvania experienced a loss in jobs over that time.
Copyright: Marcelluscoalition.org
Bucking Trends: Marcellus Shale Producing Counties Continue to Add Jobs as Unemployment Climbs Elsewhere
Marcellus job growth the largest “for any sector in [PA], save for…temporary census jobs”
Want to know how tough the economy is in Pennsylvania right now? Of the Commonwealth’s 67 counties, only five did not lose jobs over the past 12 months. But only two of those counties actually improved their unemployment rate (that is, lowered it) by more than two percentage points compared to last year. And wouldn’t you know it — they just happen to be neighbors: Bradford and Tioga Counties. One other thing they share in common: They both happen to be places were Marcellus Shale producers are investing millions of dollars a day to develop clean-burning natural gas for the Commonwealth.
You’ve heard of the Marcellus Multiplier, now meet the Rural Revitalizer. Take a look at the numbers for yourself: In counties where the responsible development of the Marcellus Shale is taking place, jobs are being created, unemployment rates are being held at bay, and millions of dollars are being returned to local governments to provide for essential services.
Bradford County’s story is among the best. In 2009, the local unemployment rate was approaching 11 percent. Today? As recently reported by the Towanda Daily Review, it “leads the state of Pennsylvania in new job creation with 2,000 more people employed than one year ago.”
Today’s Scranton Times Tribune sheds additional light on the positive and lasting impact that Marcellus Shale development is having on job creation and growth across the Commonwealth:
In May, a Penn State University study funded by the natural gas industry said development in the Marcellus Shale region would create 88,000 jobs in 2010. With unemployment up in the state, Bradford County has bucked trends with an unemployment rate that has gone down in the last year.
The Current Employment Statistics for the state in May show statewide mining and logging employment of 23,900, up 2,300 for the year. That growth, 10.6 percent, is the largest rate of growth for any sector in the state, save for federal government employment gains from temporary census jobs.
In Bradford County, an area of high drilling activity, seasonally adjusted unemployment is down a full percentage point, from 8.8 percent last year to 7.8 percent in May. Establishment data, a count of jobs in the county, showed a 1,100-job gain during the year, or 5 percent, to a total of 22,900 jobs, according to state data.
Regional Newspapers Highlight the Economic, Workforce Opportunities for Pennsylvanians
- “With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands. New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry. … An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year. (Scranton Times Tribune, 6/28/10)
- “It’s just a great opportunity for people to really see what opportunities this industry can provide,” Thompson said. “And it’s not limited to natural gas drilling and extracting. It’s everything. It touches so many different verticals, from food, insurance, gas rig and well site construction, it really runs the gamut of what a lot of people in this area have been doing well for years.” (Morning Times, 6/28/10)
Editorial Pages Underscore the Opportunities Created Through Responsible Marcellus Development
- “Ground was broken Tuesday afternoon for a Natural Gas Park that will serve the needs of an energy source for the next century. In the evening, Williamsport City Council approved a land development plan for a new gas industry tenant at 240 Arch St. with the potential for 200 to 250 jobs. … These opportunities for our region, its families and its economic profile come along once in a lifetime. (Williamsport Sun-Gazette Editorial, 6/29/10)
- Good news for Valley was millions of years in the making: “Marcellus Shale covers an area equal to Pennsylvania and Ohio combined, but the good news locally was concentrated on a plot the size of a couple of city blocks straddling the border of Youngstown and Girard. It was there that ground was broken for V&M Star’s expansion, a $650 million project that will provide construction jobs now and, eventually, 350 jobs making oil-country grade pipe. … Now, with new technology and increasing demand for clean-burning natural gas, investors are looking at drilling thousands of Marcellus Shale wells. And hundreds of miles of pipe for those wells will be coming from the Mahoning Valley. (Youngstown Vindicator Editorial, 6/30/10)
To join our fight for more affordable, stable supplies of American-made energy, and for more jobs across the region, visit Marcelluscoalition.org, and become a “Friend of Marcellus.”
It’s Up To You New York
The economic benefits associated with the responsible and environmentally sound development of the Marcellus Shale’s abundant, clean-burning natural gas reserves are overwhelming. Tens of thousands of good-paying jobs are being created across the Commonweal of Pennsylvania, where Marcellus development has been underway for several years. Hundreds of millions of dollars in tax revenues are being generated to local and state government. And Pennsylvania consumers, who continue to struggle with nearly double-digit unemployment rates, are seeing the benefits of shale gas development in the form of lower energy costs.
However, the story of the Marcellus Shale in New York State is a very different one. You see, in terms of geology, the Marcellus Shale formation is not considerably different in New York than it is in Pennsylvania. The technologies used to safely and effectively reach thesejob-creating resources are the same, too. But environmental regulators there have kept this production off-limits, denying the creation of thousands of jobs and countless other economic benefits to the region, despite the fact that the nation’s first natural gas well was completed in Fredonia, NY in 1821. At the same time, some elected state leaders are also working to implement an even more far-reaching moratorium on shale gas development.
Recognizing how critical this development is for Upstate New York’s struggling economy, and for our nation’s energy security, Marcellus Shale Coalition (MSC) president Kathryn Klaber joined a broad group of organizations this week in a letter to the State Assembly urging their support to move forward with responsible shale gas development: Here are key highlights from that letter:
We need your support for this compelling economic development opportunity, one that could benefit the State and localities significantly for years to come. We should embrace our State’s ability to bring New York-produced gas to New York customers, and by so doing create new opportunity and prosperity in our own State.
Natural gas is the cleanest fossil fuel known to man – is a solution to reducing our nation’s carbon footprint, and it will greatly improve New York’s and America’s energy independence. … And natural gas is abundant; the Marcellus Shale alone could supply natural gas to the entire United States for 20 years or more.
Based on economic projections in Pennsylvania, where the Marcellus is now being explored, Marcellus Shale development in New York will generate more than $1.4 billion in annual economic impact, based on 300 wells drilled – including more than $100 million in lease payments to landowners, $32 million in state tax revenue and tens of thousands of new jobs over time. In Broome County, a recent study that showed that 2,000 wells would annually generate more than $7.4 billion in economic activity, and nearly $400 million in wages, salaries and benefits. Also, more than $600 million in property tax income and $22 million and $20 million in state and local taxes would be generated. All of this – in just one county.
The folks in New York, especially those along the Southern Tier where Marcellus development would occur, are doing their part to educate, engage and inform the public, and key stakeholders, about the overwhelmingly positive benefits associated with shale gas production and how safe the process actually is. Last night, a group of elected officials, academics, landowners, and energy and labor representatives met in Binghamton to discuss these benefits, and to dispel the myths about the production of shale gas. The Ithaca Journal reports this today under the headline “Meeting touts benefits of tapping into Marcellus Shale”:
According to Syracuse University Earth Sciences professor Don Siegel, these concerns are more myth than reality. “This is the first environmental issue that I’ve thrown my hat into the ring on,” he said. “As a hydrogeologist, I really am almost offended by some of the opposition that’s trying to paint a picture of what groundwater resources are like that is completely wrong.”
“New investments will be made in a region where multimillion — and even multibillion — dollar investments have not been seen to this level in years,” said Broome County Executive Barbara Fiala,” and we can do all this while protecting the environment.”
“Our campus was one of the fastest-growing campuses in the United States, and virtually all of our graduates were going out into very good-paying energy industry jobs,” Drumm said. “The energy industry creates great jobs — lots of jobs — and we were heavily involved in our colleges in training for those jobs.”
Labor unions are also speaking out for responsible shale gas development in New York on behalf of their members. This from a WICZ-TV report:
Local union representatives were on hand as well, supporting the notion that jobs and money are on the coat tails of hydro-fracking.
Alex Barillo of Laborers Local 785 says he’s seen the benefits of drilling south of the border in Pennsylvania, and on the Millenium Pipeline where he says workers have seen a gross income of approximately 35 million dollars.
“That’s $35 million in gross wages that went to local workers right here so that they could have health insurance, they can have retirement, and they could pay their mortgages and so that they can do the things they do every day in their communities,” Barillo said.
We encourage you, your employees, colleagues, businesses associates, friends and family to visit Marcelluscoalition.org/get-involved, and join this fight for a more prosperous economy that leverages these resources into permanent, family-supporting jobs and stable supplies of domestic energy. Becoming a “Friend of Marcellus” will help ensure that you are informed and educated about the opportunities and critical issues surrounding this development, especially as it relates to moving forward with Marcellus development in New York.
Copyright: Marcelluscoalition.org
What They’re Saying: Marcellus Shale “a wonderful thing”; Creating tens of thousands of “family-sustaining jobs”
- “There were a lot of people around here who had a nicer Christmas last year because of the gas busines
- “The greatest economic and clean-energy opportunity of our lifetime
- “This is a good thing for us”
Marcellus Shale creating “family-sustaining jobs”: John Moran Jr., president of Moran Industries, described the arrival of the natural gas industry as “a wonderful thing” that will both create “family-sustaining jobs” and lead people to finally “really believe the clouds (have) parted.” He likened the gas industry to “a blessing from God” and predicted a trickle-down effect and creation of new wealth unlike anything seen here since the long-ago lumber era. Heinz said the gas industry brings to the area “unlimited” business and employment opportunities. (Williamsport Sun-Gazette, 6/23/10)
Responsible Marcellus development benefiting “the mom-and-pops”: “The burst in industrial activity creates new business opportunities and spinoff benefits for established companies, said Marilyn Morgan, president of the Greater Montrose Chamber of Commerce. “We’ve got a lot of entrepreneurs,” she said, including vendors selling food at drilling sites and start-up laundry services cleaning clothes for gas-field workers. “The mom-and-pops are starting to see some economic benefits,” Morgan said. “Restaurants are seeing a difference.” (Towanda Daily-Review, 6/23/10)
Sen. Mary Jo White: Marcellus Shale “the greatest economic, clean-energy opportunity of our lifetime”: “It must be noted that this activity has generated billions of dollars for landowners, including the state, through lease and royalty payments, as well as hundreds of millions of tax dollars through corporate and personal income, sales, fuel and other taxes. … Without question, we must ensure that drilling occurs in a responsible manner. Thanks to increased permitting fees, we now have twice as many permit reviewers and inspectors on the ground than before the Marcellus rush. … The Marcellus Shale presents perhaps the greatest economic and clean-energy opportunity of our lifetime. (Pittsburgh Post-Gazette, 6/23/10)
Marcellus Shale expanding PA’s workforce, small businesses: “According to Heinz, M-I SWACO initially will employ about 20 to 30 people at or working out of the Moran site, but he predicted the numbers will grow. … Among the employment opportunities are skilled positions for field engineers. Those hired locally will be those with both high school and college degrees, who will train before going out to well sites, according to Heinz. (Williamsport Sun-Gazette, 6/23/10)
Congressman Joe Pitts: Marcellus Shale will benefit local companies, “reduce energy costs while improving air quality”: “A Penn State University estimate shows that there is now enough gas in the Marcellus Shale to supply the entire U.S. for more than 14 years. Obviously, the Shale is not going to be tapped all at once and will not be the sole source of gas in the U.S., meaning that wells in Pennsylvania will provide a source of natural for decades. It is estimated that natural gas exploration could lead to more than 100,000 jobs statewide. While Pennsylvania’s 16th Congressional District is not located above the shale,local companies will certainly benefit. … With many Pennsylvanians looking for work we shouldn’t pass up this opportunity to create new jobs. Responsible development of the Marcellus Shale can reduce energy costs while improving air quality. (Pottstown Mercury,6/23/10)
Marcellus Shale generating new jobs, significant revenue for local, regional businesses: “Larry Mostoller’s company moves up to 1 million gallons of water a day for Cabot Oil and Gas Corp. “My company has grown 300 percent in one year.” “I employ 80 percent of my workforce from Susquehanna and Wyoming counties,” he said. “I’m definitely going to go over 100 (employees) this year.” Despite controversy about the economic, environmental and employment impacts of Marcellus Shale natural gas development, the industry generates new jobs and significant revenue for regional businesses. … A recent Penn State University study financed by the gas industry concluded that drilling companies spent $4.5 billion in the state in 2009 and helped create 44,000 jobs. (Citizens Voice, 6/23/10)
Marcellus development helping local school districts, “Taxpayers like the idea”: “A school district in Bradford County is now caught up in the natural gas boom. Towanda Area School District agreed Monday night to a $500,000 gas lease with Chesapeake Energy. … “This is added money that we didn’t have before, new money,” said school board vice president Pete Alesky. … There won’t be big gas drilling rigs on the actual school property. The lease only allows the gas company to drill underneath the land. If the gas company finds gas there, then the school district can make more money by getting 20 percent royalties. “They should get in it. The opportunity is there to get some money and they should get it,” said taxpayer Howard Shaw of Wysox Township. … Taxpayers who talked with Newswatch 16 liked the idea of the district getting the surge of cash. (WNEP-TV, 6/22/10)
Marcellus Shale ‘crop’ sustaining family farms: “Natural gas is a new crop for farmers in many parts of the state. It is harvested thousands of feet below the topsoil. This new revenue it generates has allowed countless farms to stay in business, repair and upgrade their barns and buy new equipment to plant their crops. The lease revenue has saved many farms from development and allowed farmers to invest in modern no-till equipment to farm in a more efficient and environmentally friendly way – both are good for water quality and the environment. (Wilkes-Barre Times Leader LTE, 6/22/10)
Marcellus Shale send rail yards booming, boosting “overall economic development”: “A $500,000 upgrade of the historic rail yard in Fell Twp., which was built in 1825 to help ignite the region’s coal boom, is a good example of the region’s new gas industry’s ability to boost overall economic development and of the growing importance of rail freight to the region. The project will make possible the easy delivery, by rail rather than truck alone, of many of the materials used in the booming Marcellus Shale drilling industry. … The rail yard upgrade is a good example of how to use the gas industry to boost general economic activity. (Scranton Times-Tribune Editorial, 6/22/10)
PA prof.: Marcellus “energy, income, jobs a good thing for us”: “Debate about the economic effect may overlook the impact on the ground, said John Sumansky, Ph.D., an economist at Misericordia University in Dallas. “The burst of energy and income and jobs coming from this spills over to a sector where the economy has been lagging in this region,” Sumansky said. “This is a good thing for us, especially in the fields of transportation and construction.” It is a good thing for Latona Trucking and Excavating Inc., a Pittston company that does well-site preparation and hauls water for Chesapeake. On some days, up to 60 of the company’s 120 employs do gas-related work, said Joseph Latona, company vice president. … “This will probably be our best year ever in business.” (Towanda Daily-Review,6/23/10)
200,000 well-paying jobs will be generated over the next decade: “It is likely, with the continued development of the Pennsylvania Marcellus Shale and the aging of the current natural gas industry workforce, that more than 200,000 well-paying jobs will be generated over the next decade, with an even greater number as drilling activity increases. … There is an immediate need for truck drivers/operators, equipment operators, drillers, rig hands, geologists/geophysical staff, production workers, well tenders, engineers, land agents and more. (PA Business Central, 6/22/10)
Marcellus Shale is saving small businesses, allowing folks to have “a nicer Christmas”: “Donald Lockhart sees a big difference over the last two years at his restaurant and gas station in South Montrose along Route 29, a major artery for drilling-related traffic. “We’ve better than tripled our business since last year,” Lockhart said as he sat in a booth in the dining area while a flatbed truck hauling an industrial generator idled outside. “I’m selling more Tastykake than they are in the grocery store.” … “They saved my business by coming here.” … Dozens of small businesses in the Endless Mountains region benefit from gas development, Mostoller said. … “My employees live better because they work in this industry,” Mostoller said. “There were a lot of people around here who had a nicer Christmas last year because of the gas business,” Lockhart said. (Towanda Daily-Review, 6/23/10)
The game-changing resource of the decade: “The extraction of shale natural gas is set to become a major growth industry in the United States. Recently, Amy Myers Jaffa wrote in the Wall Street Journal that natural gas could become “the game-changing resource of the decade.” Already Pennsylvania, West Virginia, Louisiana, and other states are beginning to reap the economic benefits of a natural gas boom. A study by Penn State University predicted that the natural gas industry in Pennsylvania alone will be responsible for the creation of 111,000 jobs and for bringing in an additional $987 million in tax revenue to the state by 2011. Natural gas extraction has been one of few industries growing (without government subsidies) during this recession. (Biggovernment.com Op-Ed, 6/23/10)
Copyright: Marcelluscoalition.org