Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

Ground Water Protection Council and Interstate Oil and Gas Compact Commission unveil the nation’s first single-source website disclosing additives on a well-by-well basis.

Press Release 4/11/11 -The Ground Water Protection Council (GWPC) and the Interstate Oil and Gas Compact Commission (IOGCC), with funding support from the United States Department of Energy (DOE), unveiled a landmark web-based national registry disclosing the chemical additives used in the hydraulic fracturing process on a well-by-well basis. The information on the website covers wells drilled starting in 2011. The initiative provides energy companies involved in oil and gas exploration and production a single-source means to publically disclose the chemical additives used in the hydraulic fracturing process.

The new website, www.FracFocus.org, features an easy-to-use interface that gives the public and regulators access to comprehensive information about hydraulically-fractured wells nationwide. Searchable fields allow users to identify wells by location, operator, state and county, as well as a standard well identification number, known as an API number. The site also contains general information on the hydraulic fracturing process, water protection programs, descriptions of the chemicals used and their function in the process, and the Chemical Abstract Services registry number of each additive. A “Frequently Asked Questions” section is also included. The site also features information on private water wells, outlining steps landowners can take to learn more about operating and maintaining their water wells.

Participating energy companies voluntarily upload information about the chemical additives and the proportion used in each hydraulic fracturing job using a standard template. As of the launch, 24 energy companies are participating in the www.FracFocus.org project. In addition, several state regulators are actively encouraging energy companies to disclose information through the national chemical registry.

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

“States have regulated the hydraulic fracturing process for more than half a century,” said Mike Smith, executive director of the IOGCC. “Until now, regulators and the public had no single site where they could easily access useful information on hydraulic fracturing and the additives used in the process. That said, the website will be a useful new tool to help the public learn about the hydraulic fracturing process. Our organizations have a responsibility to keep the public informed. We see this site as a step forward, and we expect it will evolve even more in the future.”

Posted at: Pioga.org

DLP has once again been contacted to investigate a major truck accident in Northeast Pennsylvania.  Investigators have been retained to preserve the evidence and round up the facts.  DLP continues to serve many clients injured in Pennsylvania tractor trailer/truck accidents throughout Northeast and Central Pennsylvania.

All sorts of issues related to the gas drilling rig industry are heating up in Pennsylvania and New York.  State and Federal officials continue to debate the extent and nature of gas drilling to be allowed in the Delaware River Basis which supplies drinking water to millions of people including New York City.  Meanwhile, Pennsylvania officials with the Fish and Game Commission announced plans to lease land and water supplies to the gas industry for gas drilling and water outtake.  Officials believe they have no choice in light of private leases surrounding state game lands.  The twelve lawyers at DLP continue to monitor all issues involving the gas drilling industry while representing people involved in tractor trailer/truck accidents, gas drilling rig accidents and other major injury claims.

Reports out of Albany note a push by the Governor to lift the gas drilling rig ban and fracking ban in the State of New York.  The push is for gas drilling rigs to be allowed on private land.  Construction of gas drilling rigs on public land would remain an issue for further study. The twelve lawyers at DLP continue to represent people seriously injured in accidents at gas drilling rig sites, tractor trailer/truck accidents and other serious accidents in Northeastern and Central Pennsylvania and the Southern Tier of New York.

Reports out of Albany note a push by the Governor to lift the gas drilling rig ban and fracking ban in the State of New York.  The push is for gas drilling rigs to be allowed on private land.  Construction of gas drilling rigs on public land would remain an issue for further study. The twelve lawyers at DLP continue to represent people seriously injured in accidents at gas drilling rig sites, tractor trailer/truck accidents and other serious accidents in Northeastern and Central Pennsylvania and the Southern Tier of New York.

The hydraulic fracturing process, also known as “well stimulation,” is vital to extracting natural gas from the Marcellus Shale and other geological formations in Pennsylvania. Over the course of 60 years, well stimulation has been researched, advanced and used across the United States as a safe and effective method to create tiny cracks in the targeted formation that allow natural gas to flow freely into a wellbore and up to the earth’s surface.

Hydraulic fracturing technology has been used to produce oil and natural gas since 1949. The process involves pumping a mixture made up of 99.5 percent water and sand, along with a minimal amount of additives, into the ground under high pressure. The solution opens tiny fractures in the rock to allow a pathway for the oil and gas to enter the wellbore. It typically takes about a week of round-the clock activity to complete a hydraulic fracturing operation, at which point the equipment is removed to allow the well to enter the final completion and production stage.

The Well Stimulation Process

Well developers begin the stimulation process once a well has been drilled to a desired vertical and horizontal depth, with a series of steel pipes, called casing strings, cemented in place along the length of the wellbore. The steel and cement isolates the well from the surrounding geology and groundwater zones found above. Groundwater sources are typically located a mile or more above the Marcellus Shale formation. A device known as a perforating gun is first lowered into the well to a designated location in the shale, and a charge is fired down the well from a wire at ground surface to perforate the steel casing, cement and the shale formation. This perforation stage creates small cracks, or fractures, in the rock.

A mixture of water, sand and chemicals is then injected into the wellbore under high pressure. The sand holds open the cracks in the rock to allow the well to produce natural gas. Water and sand make up about 99.5 percent of the fluid injected into the well, and the chemicals used in the process – both small in number and dilute in concentration – can be found in many household items.

Once the first zone of the well has been perforated and stimulated, a rubber plug is placed to isolate that area from the rest of the horizontal wellbore. The perforation and stimulation process then continues multiple times along the length of the formation to make the well as productive as possible. A bit is lowered into the well after the process is completed to drill out the rubber plugs and allow gas to flow to the surface.

Completing the Process

At the completion of the stimulation process, approximately 20-30 percent of the water flows back up the wellbore, where it is collected and stored in tanks or lined impoundments. This “flowback” water is transported to a permitted wastewater treatment facility for treatment and disposal, or treated and conveyed to another well site where it is recycled. Over the productive life of the well, additional “produced” water slowly comes to the surface, where it is collected in on-site storage tanks and transported as needed for treatment.

Protecting Groundwater

Agencies in Pennsylvania enforce stringent regulations to protect groundwater during both the drilling and well stimulation process. Marcellus Shale wells require multiple, redundant layers of steel casing and cement as well as strict quality control procedures to protect groundwater sources.

State oil and gas regulatory agencies, including the Pennsylvania Department of Environmental Protection, have not documented a case of drinking water contamination related to the stimulation of an oil or natural gas well. In April 2009, the Ground Water Protection Council stated that the chances of groundwater contamination due to this process are as low as 1 in 200,000,000.

Regulation of Water Withdrawals

Water use in the well stimulation process is regulated in Pennsylvania either by the state DEP, or the federal Susquehanna or Delaware River Basin Commissions, with approval
required for every withdrawal from streams or rivers. These withdrawals are limited to fraction of a waterway’s normal flow to protect aquatic life, and stream withdrawals can be halted in the event of low flow conditions. Water is either trucked or piped to drilling locations, where it is stored in secure, lined impoundments or tanks for use in the fracture process.

According to an analysis by the Susquehanna River Basin Commission, Marcellus Shale development at its anticipated peak levels of production in the Susquehanna River watershed would require the use of 60 million gallons of water a day. This amount is less than half of what is needed for recreational purposes, such as irrigating golf courses or making snow at ski resorts.

Recycling and New Technologies

The companies developing the Marcellus Shale are also advancing the treatment and recycling of water for use in multiple well stimulation procedures, along with research into using water impaired by acid mine drainage and other “lesser quality” water sources. Recycling efforts allow for a reduction in fresh water use required for each well, while the use of water from historic mining areas removes that water from stream flows, improving the quality of water in those streams in the process.

An equal amount of work is taking place to research the use of additives that are biodegradable and do not bioaccumulate in the environment, including ingredients found in many foods. Guar gum, a thickener used in dairy products, baked goods and ketchup, is used as a friction reducer in the well stimulation process, while citric acid, used in the production of soft drinks and wine, is effective in controlling iron in a wellbore. Pennsylvania’s winters have also led to the discovery of environmentally friendly additives required to prevent water from freezing during cold weather well stimulation, with the increased use of glycerin and potassium formate over material such as methanol, which is found in windshield cleaning solutions. Research continues to enhance recycling capabilities and identify effective biodegradable additives.

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Posted At: Pioga.org

Both the Senate and the House have passed a budget that fails to tax or charge any type of fee on Natural Gas extraction from the Marcellus Shale.

The issue of taxing of Marcellus Shale has been a major topic of discussion, especially in Northeastern Pennsylvania.  The impact of the extraction of Natural Gas from the Marcellus Shale has made some people very wealthy and others very upset.

Pennsylvania is the only major natural gas producing state that currently has no tax or extraction fee on natural gas.  Governor Tom Corbett campaigned on a platform of no taxes on Marcellus shale and has stuck to that campaign promise in his proposed budget, and the legislature follows suit.

A Quinnipiac poll in June 2011, showed that those polled support, 69 percent to 24 percent, a new tax on companies drilling for natural gas. Even 69 percent of Republicans polled support such a tax.

State Senator John Yudichak (D-14th) says the issue is not dead, and that the legislature will address the issue of Marcellus tax or fees this Fall.

Yudichak, a strong voice for a Marcellus Shale Impact Fee or Severance Tax, also stated that he is disappointed the legislature failed to enact a fair and responsible fee on natural gas drilling, which would have significantly helped address adverse environmental issues associated will drilling.

This is only the third time in more than 40 years that a Pennsylvania State Budget spends less than the previous years.  A major factor in the reduction in spending is the loss of federal stimulus money, which allowed Pennsylvania and many other states to save programs and jobs over the past two years.  That money is no longer available.

Yudichak, who joined his Democratic colleagues in solidarity in voting against the budget, was not pleased with the budget.  Yudichak says the plan falls short of preserving programs and services vital to Pennsylvania’s economic recovery.

On the $27.15 billion spending plan, Yudichak stated that the spending plan cuts too deeply into education and job creation programs, weakens the hospital system and fails to enact a responsible fee on Marcellus Shale drilling.

“For months, I have called for guiding this budget by two principles – job creation and making government more accountable to taxpayers,” Yudichak said.  “Unfortunately this budget falls severely short of these principles.”

Yudichak said school districts in the region will face a severe cut of $23,687,669 in this budget.  On average that is a 13.3 percent cut from 2010-2011.   He added that these districts will now have to cut vital educational programs and layoff teachers, students will be crowded into classrooms and households will inevitably see a spike in property taxes.

Northeastern Pennsylvania school districts will see significant reductions in state revenues.  The decrease in funding  from 2010 to 2011 is as follows:

·         Nanticoke – $1,580,628 less  – 13% cut

·         Hanover Area- $1,048,569 less – 13% cut

·         Hazleton Area – $4,516,132 less – 12% cut

·         Pittston Area – $1,260,312 less – 12% cut

·         Wilkes-Barre Area – $3,904,811 – less 14% cut

·         Wyoming Area – $986,676 less – 12% cut

·         Wyoming Valley West – $2,922,455 less – 14% cut

·         Pocono Mountain – $4,182,942 less – 17% cut

·         Jim Thorpe – $503,404 less – 16% cut

·         Lehighton – $1,196,384 less – 13% cut

·         Panther Valley – $1,234,349 less – 14% cut

·         Weatherly – $351,007 less – 10% cut

Yudichak added that colleges and universities throughout the state will receive significantly less funding in this year’s budget.

“We have some very worthy institutions in our region.  Unfortunately, our community colleges, our private colleges and universities, our state system schools and our state- related colleges will see their funding decrease, their tuition increase and the dream of higher education for many students will remain just a dream,” Yudichak said.

He added that cuts to job creation and business support programs in the state Department of Economic Development will harm efforts to rebuild Pennsylvania’s economy.

“It seems awfully misguided to cut proven job creation initiatives during a time of fiscal distress, yet these initiatives have also been zeroed out in this budget plan,” Yudichak said.  “True economic growth comes from solid programs that help businesses get off the ground and maintain their workforce.”

Yudichak added that despite modest restorations made to uncompensated care, in the amount of $16.5 million, hospitals are still negatively affected by budget cuts.

“These restorations are a good start, but hospitals really need more funding,” Yudichak said.  “And, with adultBasic not being funded in this budget, more and more individuals will turn to hospitals for care.”

“Here and now we have bipartisan support on a fair impact fee that would protect the environment as well as continue to grow the tremendous economic impact of the Marcellus Shale industry, yet it remains unfinished business,” Yudichak said.  “The people of Pennsylvania, by an overwhelming majority, have called for a fair and responsible tax or fee on natural gas drilling in the Marcellus Shale region.”

Yudichak finished by saying that while he understands the seriousness of Pennsylvania fragile economy, there were other option available to stem the harsh cuts made in this spending plan.

“I truly understand that with fiscal distress comes the need for a bit of belt tightening, but what I do not understand is why we are selling short the future of Pennsylvania with a budget that weakens job growth and fails to enact a responsible Marcellus Shale severance tax.”

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Employment numbers expected to rebound to pre-slump levels by early 2012.

The following article is from the June 21 Pittsburgh Post-Gazette.

The Pittsburgh metropolitan area is weathering the recession better than many other parts of the country, partly because of Marcellus Shale production, researchers said Monday, projecting that the region’s employment numbers will rebound to pre-slump levels by early 2012.

The Pittsburgh area lost 37,500 jobs beginning in the third quarter of 2008 but will recover that number by the first quarter of 2012, according to a report released as the U.S. Conference of Mayors closed its 79th annual meeting in Baltimore. The report was prepared for the conference and the Council for the New American City by IHS Global Insight, a Colorado-based research firm.

The report didn’t say what kinds of jobs were lost, what types are likely to replace them or why Pittsburgh is faring better than other parts of the country. However, in an email, Tom Jackson, senior economist at IHS Global Insight, said:

“Many areas of Pennsylvania, including the Pittsburgh metro area, are benefitting from the Marcellus Shale drilling activity. That certainly is giving Pennsylvania a boost relative to the rest of the country in terms of employment and gross economic output.”

The University of Pittsburgh, Carnegie Mellon University and other institutions have “helped in a number of ways,” he added. “The universities themselves are big employers, especially when you include the medical centers … They are also producing a large number of graduates in areas of high employment demand, which can help to encourage employers to move to or expand existing operations in the region.”

Joanna Doven, spokeswoman for Pittsburgh Mayor Luke Ravenstahl, said the study reflected the region’s stable real estate market and government efforts to work with private industry on the city’s “Third Renaissance.”

Mr. Ravenstahl did not attend the Baltimore meeting. He is at a Pennsylvania League of Cities and Municipalities meeting instead, Ms. Doven said.

In all, the report looked at employment and other indicators of economic progress for 363 metropolitan areas.

About 30 areas — including Morgantown, W.Va., and State College, Centre County — are expected to return to pre-recession employment numbers before Pittsburgh. The Pittsburgh area is one of about 10 areas, also including Dallas and Fort Collins, Colo. — expected to recoup lost jobs by early 2012.

All of the other areas are expected to take longer to recover. About 35 regions, including the Youngstown, Ohio, area, are not expected to regain all of their jobs until after 2021.

It’s taken the nation longer to recover from this recession than it has other post-World War II slowdowns, the authors said, counting weather disasters and a slow housing market as complicating factors.

Among the 363 metropolitan areas, Pittsburgh ranked 107th in average annual growth of real gross metropolitan product from 2007 to 2009. Real GMP is the total value of goods and services produced in an area, adjusted for inflation; the examination of real GMP from 2007 to 2009 showed an area’s economic performance in the throes of the recession.

Instead of growing, Pittsburgh’s real GMP on average lost one-tenth of a percent annually during those years. Together, the 363 metropolitan areas averaged a 1.3 percent annual dip in real GMP from 2007 to 2009.

Canonsburg, PA – Today, Marcellus Shale Coalition president and executive director Kathryn Klaber issued the following statement responding to a report issued by the Keystone Research Center calling into question the employment impact associated with responsible shale gas development:

“In the heat of a budget battle in Harrisburg, opponents of responsible natural gas development have launched yet another thinly-veiled, politically-timed attack on an industry that is creating family-sustaining jobs for men and women across the Commonwealth.  But families across Pennsylvania are seeing firsthand the reality of Marcellus development: it is fueling economic growth, employment, and investments in roads and infrastructure at rates not seen in decades.

“According to the Department of Labor and Industry, unemployment in counties with Marcellus development remains below the state average. Along Pennsylvania’s Northern Tier, where development is most concentrated, employment has jumped 1,500 percent since the end of 2007. Furthermore, Marcellus operators are investing billions of dollars into Pennsylvania’s economy – from constructing state-of-the-art operating facilities, to building new offices, to leasing land for responsible development and driving economic growth in our rural communities. Take into account the more than $1 billion in taxes generated by Marcellus activity over the past half-decade, stable and affordable energy prices made possible by responsible natural gas development, and the ancillary employment impacts cascading through businesses across the Commonwealth, and only then can the full act of Marcellus development be realized. Once again, the rhetoric of opponents of Pennsylvania’s clean and abundant energy supply is simply not squaring with reality.

“People who were out of work and now have jobs thanks to Marcellus development are more than statistics, and they are proud that they now have jobs. Attempting to trivialize their new employment opportunities simply to fulfill a political agenda not only denies the real economic benefits from Marcellus, but also demeans the very people who are employed.”

The economic impact of responsible shale gas development is being felt in every corner of the commonwealth:

Family Sustaining Wages

• “The average wage in the core industries was $73,150, which was about $27,400 greater than the average for all industries.” (Center for Workforce Information & Analysis, June 2011)
• “The average wage in the ancillary industries was $61,871, which was more than $16,100 greater than the average for all industries.” (ibid)

Employment Impact

• “Areas with significant Marcellus Shale drilling activity have seen notable decreases in unemployment rates.” (ibid)
• “The Northern Tier Workforce Investment Areas (WIA) experienced an increase of employment growth of over 1,500%.” (ibid)
• “The Central WIA was second in terms of employment growth by volume and by percentage with an employment increase of almost 1,000%.” (ibid)
• “Significant employment gains were seen in each WIA that had substantial Marcellus Shale drilling activity.” (ibid)

Infrastructure Investment

• “Marcellus shale drillers spent $411 million in the past three years to help rebuild Pennsylvania roads…” (Pittsburgh Tribune-Review, June 21, 2011)
• “Since 2008, approximately 21% of the payments have been made toward local roads, while approximately 79% went toward improving roads maintained by the state.” (MSC press release, June 21, 2011)

Tax Revenue Generated by Responsible Marcellus Development

• “Drilling Industry Paid More Than $1 Billion in State Taxes Since 2006, Tax Payments in First Quarter of 2011 Already Surpass 2010 Totals” (Dept. of Revenue press release, May, 2, 2011)
• “The Revenue Department’s analysis, which breaks out tax payments from oil and gas companies and their affiliates through April 2011, indicates that 857 of these companies have already paid $238.4 million in capital stock/foreign franchise tax, corporate net income tax, sales/use tax and employer withholding to the state in 2011. These figures from the first quarter of this year already exceed by nearly $20 million the total tax payments made in all of 2010.” (ibid)
• “The data indicate that counties with 150 or more Marcellus wells experienced an 11.36 percent increase in state sales tax collections between 2007 and 2010.” (Penn State University, February 27, 2011)
• “In counties with ten or more Marcellus wells, returns reporting royalty income increased 44.1 percent and tax income increased 325.3 percent.” (ibid)

READ MORE

• Study: Marcellus Shale helping region’s economy: “Many areas of Pennsylvania, including the Pittsburgh metro area, are benefitting from the Marcellus Shale drilling activity. That certainly is giving Pennsylvania a boost relative to the rest of the country in terms of employment and gross economic output.” (Pittsburgh Post-Gazette, June 21, 2011)

Posted At: Marcellus Shale Coalition.org