Archive for the ‘Blog’ Category

Cabot Oil & Gas Corp. denies the allegation and said it has evidence to back its position.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

DIMOCK TWP. – The state is alleging an energy company is responsible for contamination of a water well, a spring and wetlands after a black fluid was discovered recently near a Marcellus Shale drilling site in Susquehanna County.

The company denies responsibility.

The state Department of Environmental Protection on Thursday sent a notice informing Cabot Oil & Gas Corp. that violations of the state Clean Streams Law, the Oil & Gas Act and the Solid Waste Management Act were documented on site visits near the A&M Hibbard well pad on March 22-24.

The visits were the result of a phone report from Cabot of the presence of a black fluid in a ditch near the site on March 21.

“The investigation revealed that black fluid originating on the … drill pad was not properly contained in a pit or tank (and that the fluid) entered a hand dug well and a spring near the location, as well as a wetland downgradient of the spring,” the notice states.

“We believe it was waste from their drill pit,” DEP spokesman Dan Spadoni said Thursday.

He said he doesn’t think anyone was using the spring for drinking water, and the well was used only as “a back-up” water supply by the property owner.

Cabot has 10 days to provide the cause(s) of the incident, when the violations were or will be corrected, the steps taken to prevent their recurrence and documentation of clean-up activities.

DEP also asked Cabot to investigate the condition of the drill pit and liner and “strongly recommends that the liner and (drill) cuttings be removed from the pit and properly disposed of prior to restoration of the site.” The department also requested notification after all cuttings and fluid are removed from the pit so DEP can inspect the liner.

Cabot spokesman Ken Komoroski said the company has not confirmed the source of the fluid, but has confirmed that “Cabot activities are not the source.”

Komoroski said Cabot checked with its “independent third-party consultant,” which concluded that “the observance of black water in the well did not and could not have occurred as a result of Cabot activities” based on “observation and extensive analytical testing.” He said the well and spring contained “total and fecal coliform, which is indicative of human or animal waste” and that “the materials that exist in the well in high concentrations don’t exist on Cabot locations.”

Asked if any of the materials Cabot uses were found in the well, Komoroski said the company does not yet have all analytical results from lab tests and a final report is still in draft form. DEP continues to investigate the incident and Cabot will continue to cooperate and support the department’s efforts, he said.

The Clean Streams Law and Solid Waste Management Act provide for civil penalties and criminal fines ranging from a maximum of $10,000 per day to a maximum of $25,000 per day for each violation. Each day of continued violation constitutes a separate offense.

Copyright: Times Leader

House committee members hear testimony on impact of gas drilling, proposed environmental safeguards.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Members of the state House of Representatives Environmental Resources and Energy Committee came to the Back Mountain on Wednesday to hear testimony on the impact of Marcellus Shale drilling and proposed legislation that would put additional environmental safeguards in place.

Testifying were representatives of two environmental groups, a local physician active in environmental issues and a resident of Dimock Township, Susquehanna County, where the state Department of Environmental Protection ordered a gas company to provide drinking water to residents after their wells were contaminated by methane.

State Rep. Camille “Bud” George, committee majority chairman, said the committee convened at the township municipal building at the invitation of state Rep. Phyllis Mundy, D-Kingston.

Mundy said she requested the hearing because she and many of her constituents “have serious concerns about the potential impact of Marcellus Shale drilling on our streams, our land and especially our drinking water,” noting that a proposed well site is less than two miles from the Huntsville and Ceasetown reservoirs.

Noting the contamination of drinking water in Dimock Township and a recent drilling-related mud spill in Clinton County, Mundy said there was “still time to put safeguards in place to protect the environment and the public health from the negative impacts” of gas drilling.

“That is why I strongly support Chairman George’s House Bill 2213, the Land and Water Protection Act, which would, among other things, require state inspections of well sites during each drilling phase and require full disclosure of the chemicals used in hydraulic fracturing,” she said.

The act would also:

• Extend from 1,000 feet to 2,500 feet the presumed liability of a gas well polluting a water supply.

• Update bonding requirements to cover the costs of decommissioning a well from a $2,500 bond to a $150,000 bond for a Marcellus Shale well and to a $12,000 bond for all other wells.

• Reaffirm that local government may regulate aspects of drilling within traditional powers, such as hours of operation.

Jeff Schmidt, Sierra Club state chapter director, said the club supports the bill and suggested adding some provisions:

• Require a drilling permit applicant to publish in a local newspaper and in the Pennsylvania Bulletin that a permit application was submitted to DEP.

• Require that erosion and sediment control and storm water discharge plans for drill sites be as stringent as requirements for all other earth disturbance activities, and require DEP to offer county conservation districts the opportunity to review those plans and fund the work.

Brady Russell, Eastern Pennsylvania director for Clean Water Action, said the gas industry will “cut corners” if not properly supervised. He made several recommendations, including requiring an inspector – or eco-cop – on each drill site to make sure drillers follow approved plans.

He also suggested requiring drillers to pay for pre- and post-drilling testing of nearby water sources.

Dr. Thomas Jiunta, a podiatrist from Lehman Township, where issuance of a drilling permit is expected to be approved next week, said that since he has been researching Marcellus Shale exploration, he has “gotten a lot of lip service from senators and representatives about how we need to do it right. Before I start, I just want to say that maybe, maybe – and this is the first time I’ve said this word – we need a moratorium to stop it until we get it right.”

Audience members burst into applause and cheers at Jiunta’s suggestion.

After sharing his concerns about an inadequate number of treatment plants capable of removing hazardous chemicals from water used in hydraulic fracturing and risks associated with storing those chemicals underground, Jiunta made several suggestions for the bill.

One is adding a requirement that recovered waste water from the fracturing process be stored in sealed tanks rather than in surface pits that have liners that he said could tear and overflow with heavy rain.

Dimock Township resident Victoria Switzer testified first that a gas company “landman” talked her and her “misinformed, uninformed and na�ve” family into leasing their land for $25 an acre and a 12.5-percent royalty minus transportation cost.

“We now sit in the middle of 63 natural gas wells. In spite of what has gone terribly wrong here, the 2010 plan calls for a doubling of their efforts,” Switzer said.

She said gas drilling has resulted in diminished or contaminated drinking water supplies, destruction of roads and bridges, increased traffic beyond road capacity; decreased air quality, loss of aesthetics and more.

Mundy said she can’t imagine what Switzer is going through.

“How do you like less government – fewer DEP employees, lower taxes, no severance tax? This is what we’ve got; let’s fix it,” Mundy said.

State Rep. Tim Seip, D-Pottsville, said a severance tax on gas extraction is necessary to fund more inspectors and conservation district work. He said the public should lobby their state senators to adopt the bill when it comes before them.

Asked if he thought a moratorium was possible in Pennsylvania, George said he thought, “It’s really going to help Pennsylvania if every place where there’s drilling we get this type of attention.”

Copyright: Times Leader

April 5, 2010

EILEEN GODIN Times Leader Correspondent

Well-water testing in advance of natural gas drilling operations in parts of Luzerne County could give homeowners with wells knowledge, a baseline for future testing and a legal leg to stand on if their water becomes tainted, some experts say.

Marcellus Shale gas drilling is coming into Luzerne County this summer. EnCana Oil and Gas USA Inc., based in Denver, Colo., will be starting a site in Lake Township off Zosh Road in June or July.

Drilling could also be coming to other mostly Back Mountain area communities. Some area groups have voiced strong opposition to the drilling, and some landowners in counties where drilling is already taking place have said their water wells have been inversely affected by gas drilling activities.

EnCana Community Relations Adviser Wendy Wiedenbeck said her company has drilled 8,700 gas wells and has not had “any instance of well water becoming contaminated.” She said EnCana takes great pains not to damage water wells.

“It is in our best interests not to impact water supplies,” she said. Wiedenbeck said that besides using the standard cement casing at the gas-drilling site to protect underground water sources, a second cement casing will be used for added protection.

She said the casings are inspected regularly throughout the life of the well.

Encana’s zero tolerance of spills means its employees are specially trained for operating valves at drilling operations or transporting liquids, she said.

All spills are reportable, and the federal Environmental Protection Agency has a toll-free line to report them at (877) 919-4372.

“We are very proud of our environmental record,” she said.

To be prepared, residents within a mile radius of the drilling sites are advised to have their well water tested, Wiedenbeck said.

The trick is knowing what kind of testing is needed and the proper way to take a sample.

Aqua-Tech Laboratory Director Joseph F. Calabro, Mountain Top, said well water owners should have a state Department of Environmental Protection-certified lab do the testing. Someone who is certified with the lab should draw the water and a chain of custody for the water sample should be followed, he said.

A chain of custody for the sample is a log that is signed and dated by the person taking the water sample and given to the lab, where it is signed and dated upon receipt. Calabro said this log will stand up in court.

A listing of state-certified labs, by county, can be found at http://water.cas.psu.edu. Click on “information” on water issues related to Marcellus drilling. Then, on the right side of the screen, click on “find a lab.”

Calabro said homeowners should know what is normally in their well water. He said small amounts of minerals such as barium, sodium, manganese and iron, are already in well water, along with many other minerals.

He said that once this baseline for what’s in the water is established, then testing for industry-specific indicators can be performed.

He advised that if homeowners notice a change in taste, clarity or smell of their water, they should have it tested right away.

Concerned that nervous residents could be charged for more testing that what is really needed, he said he is willing to attend municipal meetings to discuss minerals and industry-specific indicators to watch for.

Wilkes University geologist Brain Ora said he is hoping homeowners will be willing to share their testing results to compile a database, by zip code, to show water quality history. He said that over time the database will track changes of water quality.

Copyright: The Times Leader

Environmental Resources and Energy hearing Wednesday at Kingston Township building.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Several people with concerns about natural gas drilling in Pennsylvania – and especially in the Back Mountain – are scheduled to testify Wednesday at a public hearing before a state House of Representatives committee.

State Rep. Phyllis Mundy requested and is hosting a hearing of the House Environmental Resources and Energy Committee at the Kingston Township Municipal Building from 1 to 3 p.m.

Mundy, D-Kingston, said she has “grave concerns” that there are inadequate protections in place to protect the environment from drilling associated with the Marcellus Shale formation.

“I don’t think we’re going to be able to stop Marcellus Shale drilling, but we need to make sure it doesn’t leave a legacy like that of coal. An ounce of prevention is worth a pound of cure,” Mundy said on Monday.

She said she believes a proposed drilling site in Lehman Township is “much too close” to the Huntsville and Ceasetown reservoirs, which provide drinking water to many of her constituents.

Committee Majority Chairman Camille “Bud” George notes in a press release that the state Department of Environmental Protection issued more than 1,300 drilling permits in 2009 and more are expected in coming years, yet no study exists on the environmental or human health impacts of gas development in Pennsylvania.

Testimony will be presented about mitigating environmental risks and House Bill 2213 – the Land and Water protection Act introduced by George, D-Clearfield County.

The bill would:

• Require state inspections of wells during each drilling phase.

• Extend to 2,500 feet the presumed liability of a well polluting a water supply; the current radius is 1,000 feet.

• Require full disclosure of chemicals used in the hydraulic fracturing of the gas.

• Update bonding requirements to cover the costs of decommissioning a well. Current regulations call for a $2,500 bond, but the cost to cap a well could range from $12,000 to $150,000 for a deep well, according to George.

Scheduled to testify are Dr. Thomas Jiunta, a local podiatric physician active in environmental causes; Dr. Gere Reisinger, a physician whose 200-acre farm in Wyoming County has been affected by drilling; Victoria Switzer, whose water at her home in Dimock, Susquehanna County, was contaminated after nearby drilling; Brady Russell, eastern Pennsylvania director, Clean Water Action; and Jeff Schmidt, senior director, Sierra Club, Pennsylvania Chapter.

Copyright: Times Leader

EILEEN GODIN Times Leader Correspondent

Well-water testing in advance of natural gas drilling operations in parts of Luzerne County could give homeowners with wells knowledge, a baseline for future testing and a legal leg to stand on if their water becomes tainted, some experts say.

Marcellus Shale gas drilling is coming into Luzerne County this summer. EnCana Oil and Gas USA Inc., based in Denver, Colo., will be starting a site in Lake Township off Zosh Road in June or July.

Drilling could also be coming to other mostly Back Mountain area communities. Some area groups have voiced strong opposition to the drilling, and some landowners in counties where drilling is already taking place have said their water wells have been inversely affected by gas drilling activities.

EnCana Community Relations Adviser Wendy Wiedenbeck said her company has drilled 8,700 gas wells and has not had “any instance of well water becoming contaminated.” She said EnCana takes great pains not to damage water wells.

“It is in our best interests not to impact water supplies,” she said. Wiedenbeck said that besides using the standard cement casing at the gas-drilling site to protect underground water sources, a second cement casing will be used for added protection.

She said the casings are inspected regularly throughout the life of the well.

Encana’s zero tolerance of spills means its employees are specially trained for operating valves at drilling operations or transporting liquids, she said.

All spills are reportable, and the federal Environmental Protection Agency has a toll-free line to report them at (877) 919-4372.

“We are very proud of our environmental record,” she said.

To be prepared, residents within a mile radius of the drilling sites are advised to have their well water tested, Wiedenbeck said.

The trick is knowing what kind of testing is needed and the proper way to take a sample.

Aqua-Tech Laboratory Director Joseph F. Calabro, Mountain Top, said well water owners should have a state Department of Environmental Protection-certified lab do the testing. Someone who is certified with the lab should draw the water and a chain of custody for the water sample should be followed, he said.

A chain of custody for the sample is a log that is signed and dated by the person taking the water sample and given to the lab, where it is signed and dated upon receipt. Calabro said this log will stand up in court.

A listing of state-certified labs, by county, can be found at http://water.cas.psu.edu. Click on “information” on water issues related to Marcellus drilling. Then, on the right side of the screen, click on “find a lab.”

Calabro said homeowners should know what is normally in their well water. He said small amounts of minerals such as barium, sodium, manganese and iron, are already in well water, along with many other minerals.

He said that once this baseline for what’s in the water is established, then testing for industry-specific indicators can be performed.

He advised that if homeowners notice a change in taste, clarity or smell of their water, they should have it tested right away.

Concerned that nervous residents could be charged for more testing that what is really needed, he said he is willing to attend municipal meetings to discuss minerals and industry-specific indicators to watch for.

Wilkes University geologist Brain Ora said he is hoping homeowners will be willing to share their testing results to compile a database, by zip code, to show water quality history. He said that over time the database will track changes of water quality.

Copyright: Times Leader

Coalition explores possible downside of gas exploration.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

DALLAS – A Back Mountain-dominated crowd that packed Dallas United Methodist Church on Wednesday night learned about the down side of natural gas drilling.

In a presentation titled, “A Look into the Future – the Landscape of Northeastern Luzerne County After Drilling Starts,” the Luzerne County-based Gas Drilling Awareness Coalition presented a documentary film with commentary from people living in gas-drilling areas of Colorado and local speakers who have familiarized themselves with health and environmental aspects associated with drilling.

The presentation is relevant locally because EnCana Gas & Oil has leased tens of thousands of acres of land in the northern part of the county and exploratory drilling is expected on one to three sites by June.

Coalition member Leanne Mazurick, of Dallas Township, introduced the film, in which Colorado residents shared experiences with drilling.

“They are just having no consideration for the people who live here. We are expendable,” one woman in the film said.

A man noted that every well drilled means 200 to 300 trucks traveling in and out of a community during the drilling process. “Air pollution, water pollution or the chance of water pollution, social issues, economic issues, the infrastructure is not keeping up.”

Another said the gas business “sucked up our labor pool,” and led to increased violence and drug problems.

One Colorado resident encouraged citizens to educate themselves and to attend meetings such as Wednesday night’s. “The gas and oil industry thrives on your ignorance,” he said.

Vera Scroggins, who lives near Dimock Township, told meeting attendees “whatever you saw in that film, we have it in Susquehanna County. … We have 30 families who can’t drink their water because their wells are contaminated (with benzene),” she said, adding that the gas company drilling nearby denies responsibility, even though the company eventually provided water buffaloes to the families.

Dr. Gere Reisinger, of Kingston, said he owns 200 acres in Wyoming County and compared an energy company that began drilling a mile away to a terrorist because of the noise involved. He fears the 100 artesian wells and trout stream on his land are now in jeopardy

Dr. Tom Jiunta, a founding coalition member, said a major concern is that wells planned in the Back Mountain are less than two miles from the Huntsville and Ceaseville reservoirs, and their pollution would be disastrous.

Several people said the state should impose a moratorium on drilling as New York did until an environmental impact study can be completed.

State Rep. Karen Boback, R-Harveys Lake, and state Sen. Lisa Baker, R-Dallas, encouraged residents to urge legislators to vote for legislation aimed at protecting communities from drilling accidents and exploitation.

Baker said any severance tax revenue should stay in communities to address safety and infrastructure issues rather than “be in a pipeline to Harrisburg.”

Copyright: Times Leader

DAVID WETHE Bloomberg News

HOUSTON — Halliburton Co. and Schlumberger Ltd., trying to forestall a regulatory crackdown that would cut natural-gas drilling, are developing ways to eliminate the need for chemicals that may taint water supplies near wells.

At risk is hydraulic fracturing, or fracking, a process that unlocked gas deposits in shale formations and drove gains in U.S. production of the fuel. Proposed regulations might slow drilling and add $3 billion a year in costs, a government study found. As one solution, energy companies are researching ways to kill bacteria in fracturing fluids without using harmful biocides.

“The most dangerous part in the shale frack is the biocide,” said Steve Mueller, chief executive officer at Southwestern Energy Co., the biggest producer in the Fayetteville Shale of Arkansas. “That’s the number-one thing the industry is trying to find a way around.”

House and Senate bills introduced in 2009 would force producers to get permits for each well. That and other proposed environmental measures would cut drilling by as much as half and add compliance costs of $75 billion over 25 years, according to the U.S. Energy Department.

Biocides are employed because the watery fluids used to fracture rocks heat up when they’re pumped into the ground at high speed, causing bacteria and mold to multiply, Mueller said. The bacteria grow, inhibiting the flow of gas.

“You basically get a black slime in your lines,” he said. “It just becomes a black ooze of this bacteria that grew very quickly.”

Halliburton said March 9 that it’s testing a process using ultraviolet light to kill bacteria in fracking fluid.

About 80 percent of gas wells drilled in North America, including virtually all of those in the Marcellus Shale in Pennsylvania, are stimulated or fractured in some way, Tim Probert, corporate development chief at Halliburton, said.

“It’s incumbent on the industry to continue to develop tools and technologies that are compatible with minimizing the environmental impact of the stimulation process,” Probert said.

Copyright: Times Leader

Rail cars of sand to be used in Marcellus Shale natural gas extraction get a home.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

DURYEA – Investment spurred by Marcellus Shale natural gas exploration has transformed an antiquated, weed-ridden rail yard just north of Pittston into a state-of-the-art transloading terminal teeming with rail and trucking activity on an almost daily basis.

Over the last year, Reading & Northern Railroad Co. sunk $100,000 into Pittston Yard, laying new track to accommodate 100 new rail cars and constructing a facility to store and hold up to 800 cars of sand to be used in hydraulic fracturing, or “fracking,” operations at Marcellus Shale drill sites throughout Northeastern Pennsylvania, said Reading & Northern President Warren A. Michel.

“The reason for our success is that we are the largest facility in the region capable of handling hundreds of rail cars of sand. We now have 130 (sand) rail cars at the yard and we’ll be expanding substantially over the next six months,” Michel said.

The company rewarded its full-time employees for their work on the project and throughout last year with an extra week of paid vacation this year and a paid trip to their choice of either Disney World; Branson, Mo.; Williamsburg, Va.; London; or a cruise.

“This is our way of saying thank you for a job well done,” company owner and Chief Executive Officer Andrew M. Muller Jr. said in a press release.

Between Reading & Northern and its customers, who are involved in the Marcellus Shale fracking and drilling industries, Michel expects another half-million dollars of investment with the laying of more track, construction of bucket conveyors and four holding silos for the sand, and construction of facilities to handle other aspects of the drilling process, such as pipe delivery and the transportation of brine water from the area.

The upgrade and expansion project began about a year ago after Reading & Northern officials began hearing that drilling companies were challenged with the logistics of transporting and storing significant volumes of sand, pipe, water and other materials, according to a marketing release prepared by Daniel Gilchrist, Reading & Northern vice president of marketing and sales.

After several discussions with Reading & Northern partner Norfolk Southern, company officials believed they could offer substantial benefits to customers, Gilchrist said.

Pittston Yard, formerly Coxton Yard, was built in 1870 by the Lehigh Railroad as a hub to move coal from the region to Eastern markets. And while the yard had had been serving many Reading & Northern customers, it was overgrown with weeds and trees and was underutilized.

Many of the tracks were suitable only to hold empty storage cars, and it was not apparent initially how much track and acreage was actually there and available for use, Gilchrist said.

After showing the site and meeting with several potential customers, Reading & Northern began discussions with D&I Silica and its transload operator, the Myles Group, and developed a plan.

Work began in November with tree removal, clearing of several acres, surfacing of more than 5,200 feet of track and construction of a 600-by-80-foot unloading pad. By Dec. 7, the company had more than 50 loaded rail cars on site ready to be transloaded. The following day, at 3 a.m. in the midst of a snowstorm, the first trucks were loaded with sand for customers.

Because of a number of factors including the Marcellus Shale drilling industry, Reading & Northern has hired 10 new employees over the last two months. The company also recently purchased two new locomotives, 101 rail cars and six miles of short-line track between Monroeton and Towanda, where much of Northeastern Pennsylvania’s Marcellus Shale economic activity is focused, Michel said.

Copyright: Times Leader

DEP probes Cabot Oil & Gas query about “discharge of black water” in Dimock Twp.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

DIMOCK TWP. – The state Department of Environmental Protection is investigating a possible leak or spill at a natural gas drilling site in Susquehanna County.

Mark Carmon, DEP spokesman at the Wilkes-Barre office, said the department received a call to its emergency response line from Cabot Oil & Gas Co. on Sunday afternoon informing the department that employees found “a discharge of black water” at the site.

The call was referred to the department’s Gas & Oil Program team, which operates from DEP’s Williamsport office.

Dan Spadoni, DEP spokesman at that office, said the team is investigating “the possibility of a spill or leak at Cabot’s Hibbard drill pad” since Monday, but has not yet determined if there was a spill or leak at the site.

Spadoni said there are two wells on one pad at the site, and no drilling activity is currently taking place. He said the team took samples from a private drinking water well that is currently not being used, from two nearby springs and from the site pit.

The samples are being analyzed at DEP’s lab in Harrisburg.

“We need to see those results to see what our future course of action will be,” Spadoni said.

He expected lab results back in a week or two.

Spadoni said Cabot’s consultant also collected samples and the drill cuttings in the pit for analysis. Site pits, which are lined, are where the residue from the drilling and hydraulic fracturing processes ends up, he said.

There was discussion on an online Susquehanna County gas forum about the possibility of a nearby pond being drained, but Spadoni said he had no information about the pond and no samples were collected from it.

He confirmed Cabot had a vacuum truck on-site “in response to where this dark fluid was observed. It was a voluntary measure on their part,” he said.

Spadoni said he believes there was no recent drilling activity at the site. The site had not been shut down because of the discovery of the liquid, he said.

Ken Komoroski, spokesman for Cabot Oil & Gas, said there was no indication of any environmental contamination or pollution.

“Discolored water was observed over the weekend and Cabot immediately responded to observing water in a ditch. We notified DEP and took the additional measure to have a vacuum truck remove water from ditch,” Komoroski said, adding that employees noticed the water while driving by the site on Route 29.

Cabot also drained the pit to check if it was possible the water was leaking from the drill pit, but the pit liner was “completely intact. All indications are that it was not a result of Cabot activities,” Komoroski said.

Komoroski said the drill site has been in existence “for quite some time, and there doesn’t seem to be any reason” for the discolored water to appear “since it hasn’t been active site. We were not able to identify any potential cause or relationship.”

He said the water was found “in the vicinity of the site, but close enough that we wanted to consider the possibility that it was related to our activities.”

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Potential for economic plus to area. Williamsport benefits despite no well within 12 miles.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

With most of the nearby Marcellus Shale natural gas production occurring north and west of Luzerne County, the question of whether Greater Wilkes-Barre will benefit with an economic boom or be bypassed remains unanswered.

It depends on a number of factors, including the volume and quality of natural gas that can be harvested in the county.

If prospects are not good here, the proximity of natural gas development in nearby counties could have some impact locally if the infrastructure close to Wilkes-Barre has the most to offer nearby energy companies, drillers and their employees, according to an economic development official in a county that has been reaping the benefits of Marcellus Shale production.

Jason Fink, executive vice president of the Williamsport/Lycoming Chamber of Commerce, said chamber officials began seeing signs of interest in gas production in Lycoming County about two years ago when the appearance of landmen first became noticeable.

Work had begun on five to seven natural gas wells in northern Lycoming County by the end of 2007, according to records from the state Department of Environmental Protection.

By the end of 2008, 13 more wells had been drilled; another 24 followed last year, and four more have been drilled this year.

And although the closest well is about 12 to 15 miles from Williamsport, the city of about 30,000 is seeing “a number of significant areas of development,” Fink said.

A boom hits Williamsport

The first evidence of business development related to the shale came about a year and a half ago with growth in oil field services. Chief Oil & Gas has been operating for well over a year in the county and Anadarko Petroleum Corp. also has had a presence, Fink said.

Precision Drilling set up shop and Weatherford – a mechanical/technological support company for the oil and gas industry – is in the process of developing a 20-acre site in the county, he said.

Industrial Properties Corp., which is operated by the chamber, sold a 24-acre parcel to Halliburton, which is in the process of developing the property and projects the hiring of 250 employees at the site.

Sooner Pipe, which provides casing pipe for Chesapeake Energy and is one of the largest customers of U.S. Steel, just signed a 10-year lease with the Williamsport Regional Airport for a pipe lay-down yard. That project is expected to employ 50 people when operational, Fink said.

The work force at Allison Crane & Rigging – a third-generation family-owned company in Williamsport – grew by more than 50 employees early on in the well construction phase. And Sooner Pipe intends to use local trucking company Woolever Brothers Transportation to haul all of its pipe when the facility is operational, Fink said.

It’s all about infrastructure

Fink said that Williamsport is benefiting from the gas extraction activity, the heart of which is at least 15 to 20 miles northwest and northeast of the city, because it has more to offer than more rural counties to the north.

“They need to have access to certain infrastructure to conduct their business. We have a highway system, housing, hotels, restaurants – everything they need for their employees. Bradford and Tioga are more rural and have very limited hotel space,” Fink said, adding that rail service through Norfolk Southern and a short line and a nearby interstate highway also helps matters.

Bradford County saw 113 wells drilled last year, while Tioga County had 114.

Because of the influx of workers, the city saw demands for home and apartment rentals grow. Developers responded by renovating space above downtown businesses, creating new rental units.

Fink said local unemployment had been hovering around 10 percent, but he’s seen it drop to 9.1 percent lately.

“We’ve been working with the Pennsylvania College of Technology and the local CareerLink office. Really, once more local people are able to gain the skills this industry requires, I think you’ll be able to see a greater economic impact,” he said.

Would it work in Wilkes-Barre area?

“I would think Wilkes-Barre would have the same opportunities if they find gas in volumes in areas proximate to Wilkes-Barre. And the Wilkes-Barre area understands the positive side as well as the pitfalls of the acquisition of natural resources for energy purposes,” Fink said.

Todd Vonderheid, president of the Greater Wilkes-Barre Chamber of Business and Industry, agrees.

“There’s certainly an opportunity to be captured for the region. Several things have already happened,” Vonderheid said.

Vonderheid noted that several suppliers and vendors to the gas-and-oil industry already are locating in the region and hiring locally.

“We’re trying to facilitate that and make the process as easy as possible. We’re working with energy company officials to better learn what those supply opportunities might be,” Vonderheid said, adding that representatives of Chesapeake and EnCana energy companies sit on the chamber board of directors.

Vonderheid said a presentation for chamber members on Marcellus Shale opportunities, the gas extraction process, environmental issues and the possible economic impact is in the works.

Copyright: Times Leader