Archive for the ‘Times Leader’ Category

WILKES-BARRE – Democratic gubernatorial nominee Dan Onorato said Thursday he doesn’t support a moratorium on drilling in the Marcellus Shale region, but he does want to see the gas industry grow in “a responsible way.”

“I will grant permits,” Onorato said. “But I want these companies to hire Pennsylvanians. I don’t want to see a bunch of Oklahoma and Texas license plates here.”

Onorato visited the Scranton Chamber of Commerce to speak to members and young professionals of POWER Scranton to discuss the opportunities for economic growth in Scranton.

“Northeast Pennsylvania is in a unique situation to benefit from great economic growth,” he said. “The combination of location, resources and infrastructure could lead to an economic boon for the region’s economy.”

Onorato is opposed by Republican Tom Corbett, who has served two terms at the state’s attorney general.

Onorato knows Northeastern Pennsylvania – he is married to the former Shelly Ziegler of Mountain Top. Onorato said he has traveled to the region regularly for the past 20 years to visit his in-laws, Bill and Sue Ziegler.

“The northeast region is very important to me,” he said. “I will be campaigning here a lot over the next 17 weeks. I see a lot of similarities between here and my home area of Pittsburgh.”

Onorato, 49, has served as the Allegheny County executive for seven years. He boasts that when the next budget is passed in October, it will mark 10 straight years of no tax increase in the county.

“I’ve run the second largest county in the Commonwealth,” Onorato said. “We’ve downsized government – going from 10 row offices to four and we consolidated five 911 centers to one. Those two moves alone saved taxpayers $7 million per year.”

Onorato, the father of three teenagers, said he is optimistic about the governor’s race. He said he doesn’t believe a poll released last week that showed Corbett ahead by 10 percentage points.

“The same people that did that poll also had McCain ahead of Obama in 2008,” He said. “All the polls I’ve seen show this race to be neck-and-neck. I know it will be a battle, but I believe I can win.”

Onorato said the northeast region’s proximity to New York and New Jersey makes it the perfect location to become the warehouse distribution center for the eastern part of the country.

“I see a lot of potential here,” he said.

The Democrat said he would seek to enact a severance tax on the Marcellus Shale drillers and he would use the revenue to fully fund the state Department of Environmental Protection. Onorato said DEP took a 28 percent budget cut last year and he wants to return the department to full capacity.

“If we’re going to allow drilling, then we need a department to watch over it and protect the water and the environment,” Onorato said.

Bill O’Boyle, a Times Leader staff writer, may be reached at 829-7218.

Copyright: Times Leader

By Laura Legere (Staff Writer)
Published: June 29, 2010

Gas tax law could OK ‘forced pooling’

Firms would drill from nearby site

The Marcellus Shale natural gas industry wants to see legislation attached to any severance tax adopted by the state that would force property owners who refuse leases to allow drillers to gather the gas beneath their land, an industry coalition leader said Monday.

Calling it the most economical and conservative land-use approach to drilling for gas, David Spigelmyer, Chesapeake Energy’s regional vice president for government relations, said in a Times-Tribune editorial board meeting that “forced pooling” is a key element of any legislation the state’s Marcellus drillers could support and is actively being discussed during budget negotiations in the capital.

Mr. Spigelmyer said he does not expect forced pooling to be adopted in the coming days as part of budget talks, but he said “an agreement” likely will emerge with the budget “to talk about (the severance tax) holistically” with other industry-supported legislation on forced pooling.

The Marcellus Shale Coalition, an organization of the state’s Marcellus drillers, “has not said, ‘Hell no’ ” to a severance tax, said Mr. Spigelmyer, the group’s vice chairman. “We’ve said there needs to be a broader discussion.”

A forced pooling statute would require landowners without gas leases to allow a company to drill under their land from a nearby leased property, and it would define the amount of royalties those holdout landowners are owed for their gas.

Eminent domain

Such a statute would help avoid an unnecessary proliferation of wells, Mr. Spigelmyer said, but critics say it is a form of eminent domain.

In May, State Rep. Camille “Bud” George, D-74, Houtzdale, Clearfield County, called it a “controversial, ugly provision” through which “an intrusive government would be depriving an individual’s property rights to benefit private companies.”

Limit zoning laws

As part of severance tax discussions, the industry also wants to limit municipal ordinances that attempt to regulate where gas drilling can occur – a development spurred by a state Supreme Court decision last year that opened the door for municipalities to have some control over where gas wells are located through zoning.

“We’re willing to work with municipalities, but we’re seeing … an extraordinary number of ordinances that are coming into play that basically zone out development completely,” Mr. Spigelmyer said. “We want to make sure we don’t have ordinances in place that basically remove your rights.”

Negotiations over a severance tax are at the center of ongoing state budget decisions, and Mr. Spigelmyer said Monday a Pennsylvania tax needs to look like those in other, competing shale-gas producing states.

Pennsylvania has benefitted from increased drilling without a severance tax, he said, but an unfair tax and recently introduced legislation to halt drilling in the state will deter development.

“I’ve already seen where companies have walked away from joint venture opportunities to invest in Pennsylvania because of the mere inference of a moratorium,” he said.

“It has the potential to, and I think it already has, limited capital investment in the commonwealth.”

Contact the writer: llegere@timesshamrock.com

View article here.

Copyright:  The Scranton Times

By Andrew M. Sederaseder@timesleader.com
Times Leader Staff Writer

Victoria Switzer watches the trucks, at least 100 of them she estimates, ramble past her Dimock Township home every day. They go back and forth from the Cabot Oil and Gas drill sites, hauling equipment, waste water and materials.

She worries what would happen if there was a spill, if the operator wasn’t properly licensed, if the truck wasn’t mechanically sound.

For years she’s been calling state officials and complaining about their speed, their actions and what she saw as violations. Last week some agencies heeded the call of Switzer and others like her and made a concerted effort to send a message to the truck operators that though they are permitted to operate, they need to do so legally.

During a three-day enforcement effort last week that focused on trucks hauling waste water from Marcellus Shale natural gas drilling operations across the state, the state police placed 250 commercial vehicles out of service.

State Police Commissioner Frank E. Pawlowski said state troopers worked in partnership with personnel from the Department of Environmental Protection, the Pennsylvania Public Utility Commission and the federal Motor Carrier Safety Administration as part of Operation FracNET.

In total, 1,137 trucks were inspected from June 14-16.

“Pennsylvania has experienced significant increases in heavy truck traffic in areas where Marcellus Shale natural gas drilling operations are taking place, particularly in Bradford, Clearfield, Susquehanna, Tioga and Washington counties,” Pawlowski said. “The process of hydraulic fracturing, or fracking, requires significant amounts of water to be delivered to the sites and later trucked away.”

He said the enforcement effort centered on identifying commercial vehicle safety deficiencies that could lead to crashes. Pawlowski said 131 of the 250 vehicles placed out of service were trucks hauling waste water. He said 669 traffic citations and 818 written warnings were issued as the result of waste water truck inspections. In addition, 23 of the 45 drivers placed out of service during the operation were waste water vehicle operators.

“As activities at natural gas sites continue to increase, it is important that everyone involved, including the waste transportation industry, understands Pennsylvania’s environmental and traffic safety laws and complies with them,” said DEP Secretary John Hanger.

“Cracking down, I’m thrilled to see it,” said Switzer, who is one of a dozen property owners in the Susquehanna County township that have had their well water polluted by oil drilling. “Better late than never.”

Mark Carmon, spokesman for DEP’s Northeast Regional office, said that three trucks were cited in Susquehanna County out of the 30 that were stopped. Two of the trucks were not carrying Prevention Preparedness Contingency plans, which list what chemicals are being hauled, emergency contact numbers in case of a spill and plans for cleanup. One of the trucks did not have proof of waste hauling certification, and one truck did not have its waste log book listing what it was hauling and from and to where.

Carmon said the operation provided “a good opportunity to check these trucks” and said it will be an ongoing measure.

Lt. Myra A. Taylor, a state police spokeswoman, said a decision was made to “make a concerted effort to blitz these particular areas,” in part, because of concerns raised by residents.

“I applaud the citizenry,” Taylor said. And she echoed Carmon’s comments that these inspections will not be a one-time event.

“We will be ever vigilant,” she said.

State Rep. Karen Boback, R-Harveys Lake, praised the offices involved in the operation.

“I applaud our state agencies and the state police for working together to monitor frack water hauling operations. It is vital that we continue to scrutinize every phase, aspect and offshoot of the drilling process, and I encourage law enforcement to persist in efforts to root out those operators who are not acting in accordance with Pennsylvania laws and potentially endangering the lives and health of Commonwealth residents, along with our environment,” she said.

Taylor said the truck violations found ran the gamut mechanical issues to overweight trucks. Driver citations included drivers operating without a proper license and drivers who were operating without enough rest or working too many hours in a day.

A list of what trucking companies were cited was not available by the state police or DEP.

A statement from the executive director of the Marcellus Shale Coalition, a pro-drilling organization, said steps have been taken and will continue to be taken to reduce gas-related truck traffic.

Copyright: Times Leader

The Luzerne County legislator has higher hopes for another bill related to drilling.

By Andrew M. Sederaseder@timesleader.com
Times Leader Staff Writer

State Rep. Phyllis Mundy said her proposal to establish a one-year moratorium on the issuance of new permits for drilling in the Marcellus Shale formation is well intentioned, but she does not believe it has the support of enough of her colleagues to be passed this year.

“The moratorium bill is a long shot,” Mundy, D-Kingston, said on Thursday, responding to questions related to two bills and a resolution she introduced on Wednesday. The three were referred Thursday to the state House Committee on Environmental Resources and Energy.

House Bill 2608 would prohibit natural gas drilling companies that use fracking, or horizontal drilling, from drilling wells within 2,500 feet of a primary source of supply for a community water system, such as a lake or reservoir. The current restriction is only 100 feet.

That bill gained the largest number of cosponsors, including the other six state representatives who serve Luzerne County: Karen Boback, R-Harveys Lake; Mike Carroll, D-Avoca; Eddie Day Pashinski, D-Wilkes-Barre; Todd Eachus, D-Butler Township; Jim Wansacz, D-Old Forge; and John Yudichak, D-Plymouth Township. In total, the bill has 47 cosponsors, and Mundy.

She said that legislation has the best chance of being approved, but it will likely have to be offered as an amendment to another bill.

House Resolution 864, if approved, would urge the U.S. Congress to pass the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act. The resolution urges Congress to repeal a provision in the federal Safe Drinking Water Act, known as the “Halliburton loophole,” that exempts oil and gas drilling industries from restrictions on hydraulic fracturing near drinking water sources.

The act would also require oil and gas industries to disclose all hydraulic fracturing chemicals and chemical constituents currently considered proprietary rights of the company.

That resolution has the support of Mundy and 43 of her colleagues who signed on as cosponsors. Eachus, Pashinski, Wansacz and Boback were the other Luzerne County representatives who signed on as cosponsors.

House Bill 2609 seeks to establish a one-year moratorium on the issuance of new natural gas drilling permits, which Mundy said would give state officials more time to analyze the drilling industry and ensure proper protections are in place and if they’re not, what measures should be enacted.

That bill received the cosponsor support of 18 of Mundy’s colleagues, but of her fellow Luzerne County Caucus members, only Pashinski signed his name as a cosponsor. Two Lackawanna County-based state House members signed on, Kevin Murphy, D-Scranton, and Ed Staback, D-Sturges. They were among a handful of House members who signed their names as cosponsors to all three measures.

Mundy’s opponent in November, Republican Bill Goldsworthy, said the 20-year lawmaker is using Marcellus Shale exploration “to help her re-election campaign.”

“First Ms. Mundy votes to increase spending and pay for it with a new tax on gas drilling, then turns around and calls for that drilling to stop. This is the type of political double-talk that has gotten our state where we are today,” said Goldsworthy in a written statement.

Goldsworthy, the mayor of West Pittston, said he supports gas exploration, as long as it is done in an environmentally responsible manner.

“I do not think a moratorium would pass the House at this point, let alone the Senate. Perhaps a few more disasters will change people’s minds,” Mundy said, continuing to voice frustration with the way things work in Harrisburg that she expressed at a House Transportation Committee field hearing in Scranton two weeks ago. At that time, speaking about the gaping hole in the transportation budget and the state of disrepair of hundreds of roadways and bridges throughout the state, she quipped “We in Pennsylvania don’t do anything unless there’s a crisis.”

In addition to Mundy, Pashinski, Staback and Murphy, only 14 representatives signed their names as cosponsors on all three pieces.

Copyright: Times Leader

• “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

by Laura Legere (staff writer)
Published: June 20, 2010

One natural gas well has been drilled into the Marcellus Shale in Lackawanna County, but much more development is on the county’s doorstep.

Already more than an eighth of the county’s land has been leased to companies planning to drill in the Marcellus Shale, according to deeds recorded with the county.

The total land leased – about 38,000 acres – amounts to an area roughly twice the size of Scranton.

Those leases carry a soft deadline for drilling: Many of them have a primary term of five or seven years, which means the companies have to make some progress to develop the gas within that time or renegotiate to extend the agreement and risk losing the lease to a competitor.

Because the vast majority of the leases in the county – 816 of them – were recorded in 2008, the incentive for developing the gas is approaching.

The land rush has touched a vast area of the county. Land in 20 of Lackawanna’s 40 municipalities has been leased, with the largest concentration of leases in northern municipalities, including Scott, Benton and Greenfield townships, as well as areas of the Abingtons.

Many of the county’s most prominent farmers, including the Manning, Eckel, Roba and Pallman families, have signed leases.

Although much of the land has been leased outside of the population centers along the Lackawanna Valley, leased parcels are not strictly on farms or in rural areas.

Baptist Bible College leased 114 acres on its South Abington Twp. campus.

The Abington Hill Cemetery Association leased 120 acres in South Abington along the Morgan Highway.

Leases have also been agreed to on land near residential areas. For example, 38 acres have been leased along the 900 and 1000 blocks of Fairview Road in South Abington.

Property owners with leases include private individuals, but also churches, golf courses, businesses and community associations. The Greenfield Township Sewer Authority leased 7.3 acres; the Fleetville Volunteer Fire Company leased 65 acres in Benton.

The Newton Lake Association and the Associates at Chapman Lake, two community associations that own their namesake lakes and the area around them, both signed leases.

Religious organizations have also signed leases, including the Harmony Heart church camp in Scott, a 59-acre parcel in Scott owned by Parker Hill Community Church, the Evangelical Free Bible Church in North Abington Twp., and Community Bible Church in Greenfield.

Three national energy companies, Oklahoma-based Chesapeake Appalachia, Texas-based Exco Resources, and Texas-based Southwestern Energy, hold nearly all of the leases.

The amount of Lackawanna County land leased for gas development surprised even people who have followed the subject closely for years.

Lee Jamison, a leader of the multi-municipal Abington Council of Governments, which has hosted educational events and speakers regarding Marcellus Shale drilling since 2008, did not know the extent of the leasing or its reach to areas outside of the rural northwest of the county.

He said despite educational events and active gas drilling in nearby communities, Lackawanna County municipalities have to do more to follow changing legislation and precedent-setting court cases to prepare for the coming development.

“I still think there’s quite a lack of preparedness on the part of the local municipal officials,” he said. “Often times you get conflicting reports and confusing stories.”

Mr. Jamison, who recently lost in the Republican primary race for state representative in the 114th House District, made Marcellus Shale a central part of his platform.

“Over 90 percent of the people I’ve spoken to are in favor of developing the Marcellus resource,” he said, “but they want it done correctly. With that caveat.”

Mary Felley, the open space coordinator for the Countryside Conservancy and a representative of Dalton in the Scranton-Abingtons Planning Association, said residents and municipal officials are “aware that it’s coming but not quite here.”

“I come to my local borough meetings, and people ask what can we do as a borough to regulate this, and we don’t know,” she said.

Because of unsettled case law regarding what role municipalities can take in regulated drilling, “we’re not getting a whole lot of clear guidance on what we can and cannot do here,” she said. “That’s kind of scary.”

There has also been a dearth of local training specifically targeting municipal officials on preparing for gas development. Even if there were such meetings, “my concern is people may not attend those until there’s a lot more activity in the county,” she said.

“This is the way we’ve evolved apparently: you respond to urgent threats you can see. You don’t respond to slow, impending threats that are over the hill somewhere.”

Contact the writer: llegere@timesshamrock.com

View article here.

Copyright: The Scranton Times

He tells symposium Pa.’s “bureaucratic BS” is limiting operations.

PLAINS TWP. – To hear John Baen describe it, Pennsylvania is like an awkward, naive suitor, dithering over the details so much that it’s stumbling on the walk to the front door and turning off its hot date: natural gas drillers.

The industry has recently increased its complaints about what it sees as the state’s excessive regulatory procedures – or “bureaucratic BS,” as Baen put it on Wednesday – that are souring hopes to ramp up drilling in the potentially lucrative Marcellus Shale about a mile under much of northern and western Pennsylvania, among other states.

Keeping things green is important, the real-estate expert and University of North Texas professor said, but not as much as making some green. “I know you’re sensitive to your environment and all that, but it’s four acres (disturbed for drilling) out of 5,000” acres that are then producing gas, he said. “Would you allow a drilling rig in your back yard? … It depends on what they’re willing to pay you extra.”

Baen was one of three gas industry experts speaking at a Marcellus Shale Symposium hosted by the Joint Urban Studies Center at the Woodlands Inn & Resort. The center, a partnership of local colleges and universities, provides economic research for regional planning.

The experts were brought in to discuss their impressions from the proliferation of drilling in the Barnett Shale, a similar gas-filled rock formation in north Texas. Though concerns were addressed, such as potential environmental damage and likely workforce shortages, sanguine profiteering was emphasized repeatedly.

William Brackett, the managing editor of an influential Barnett Shale newsletter, noted the local job market and economy ballooned 50 percent in 2007 to 83,823 jobs and an $8.2-billion economic benefit. The same good fortune is befalling rural Pennsylvania farmers who were near destitute, he said. “All the sudden, they get a new barn and are able to send their kids to college.”

Of all the speakers, the most subdued in his support of the industry was Matt Sheppard, a director of corporate development for Oklahoma-based Chesapeake Energy, which sponsored the symposium. Though natural gas drilling has been in the state for decades, it has lain pretty low, he said. “This is not an industry that has done a great job of talking about things, explaining things,” he said. “We’re here for one reason, and that is that Americans are demanding cleaner energy right now. … And the truth is we’re not going to the other way.”

The presenters said the industry is looking for straightforward rules like in other states, which have standardized drilling manuals and few other regulatory hoops. But despite Baen’s dire predictions that drillers might pull up stakes, Sheppard assured his company was likely sticking it out.

“At Chesapeake, we’re big believers in organized development,” he said. “You’re not going to see a lot of companies come in here and drill one well and leave. … You invest this amount of money in a state, you’re going to be around a while.”

Copyright: Times Leader

Land in the Back Mountain complex will not be disturbed, since the approach is horizontal.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

LEHMAN TWP. – Board members who oversee the Back Mountain Recreation Complex will certainly appreciate any revenue derived from a natural gas lease if local Marcellus Shale development is successful, but that’s not why they approved the lease, according to the board president.

“All of the adjacent landowners to our property I believe did sign leases with Marcellus Shale companies,” said board President Richard Coslett, a dentist practicing in Shavertown, Kingston Township.

Because it was expected that natural gas drilling would be going on all around the organization’s 130-acre property, there was no reason not to sign a lease with Chief Oil & Gas, Coslett said. “But there will be no well drilling on the property &hellip absolutely not.”

“Our land is there for one purpose – for the recreational enjoyment of residents of the Back Mountain,” he said.

Back Mountain Recreation will receive a bonus payment of $12.50 per acre and, if natural gas is extracted from the land beneath the complex, the organization will receive 20 percent royalty payments.

Coslett said that money would go right back into developing the complex.

Coslett said the lease gives permission to Chief Oil & Gas to drill horizontally deep underneath the organization’s property without disturbing the surface. “Now, on the other properties, I can’t speak for that,” he said.

EnCana Oil & Gas is proposing to drill just over a mile from the complex on property owned by Lake Township Supervisor Amy Salansky and her husband, Paul.

There was “very concerned discussion” among the board members about the safety of children and adults who use the complex if natural gas wells were drilled on nearby property, Coslett said.

“We see what happened to the roads in the Northern Tier counties; we heard the stories of water being contaminated in the Northern Tier. Myself and the board are very concerned about those things happening here also,” Coslett said.

And, of course, the thought of an explosion on property near the complex similar to the natural gas well blowout in Clearfield County on June 3 would be enough to make any Back Mountain recreational enthusiast shudder.

But Coslett is hopeful state officials will make sure adequate regulatory safeguards are in place before drilling begins anywhere near the complex.

“I really think there is a lot of emotional information out there right now,” Coslett said. “I can understand both sides of the issue. Hopefully, the facts will come out.”

The organization is in the process of a multiphase development. A lacrosse field and two soccer fields opened in summer 2007. They were dedicated in May 2008 as Edward Darling Field, Flack Field and Pride Field.

Two more full-size soccer fields and two mid-size soccer fields were completed in fall 2008 and opened for use last fall. The fields are currently used by Back Mountain Youth Soccer and Back Mountain Lacrosse. A football field, used by the Back Mountain Youth Football and Cheerleading League, is the most recent addition.

The fields lie on about 40 acres of the complex dedicated to organized recreational activities, Coslett said. But the board wants to develop part of the remaining 90 acres for passive recreational activities such as hiking and biking trails and other activities.

Copyright: Times Leader