Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

Canonsburg, Pa. – Earlier today, the Philadelphia City Council endorsed an outright ban on responsible shale gas development along the Delaware River Basin, based on a joint council committee ‘report’. As part of today’s misguided vote, the council also directed the Philadelphia Gas Works to abstain from purchasing affordable, clean-burning natural gas from the Marcellus Shale, despite the fact that the municipal utility provider indirectly already receives Marcellus natural gas.

The council’s joint committee report — based on the testimony of 19 witnesses; one from the natural gas industry, and ten who have publically stated their opposition to job-creating Marcellus development — was written by an activist who sits on the board of a state-wide anti-Marcellus advocacy group and several council interns.

Subsequent to the vote, Kathryn Klaber — president and executive director of the Marcellus Shale Coalition (MSC) — issued this statement:

“Our organization was grateful for the opportunity to testify before council, and remains committed to actively engaging communities across the commonwealth to realize the positive economic and environmental benefits associated with Marcellus development. Unfortunately, this report does not seek to advance that constructive dialogue, but rather seeks to crowd it out by advancing a political narrative that is completely unmoored from the facts.

“Responsible Marcellus development will continue to benefit each and every Pennsylvanian through more affordable, and stable energy prices. Thanks to American ingenuity and technological advancements, more natural gas is coming to market each day, translating directly to consumer savings and energy security for our nation. Just two years ago, natural gas prices hit $14 a unit. Today, because of America’s shale gas revolution, prices are holding stable near $4 a unit. While it’s true the Philadelphia Gas Works doesn’t directly purchase Marcellus gas, the fact remains that additional Marcellus gas is going into the interstate pipeline system, directly benefitting Philadelphians.

“The development of this clean-burning resource is tightly regulated and subject to a host of stringent environmental laws and regulations. Our industry has a long-standing working relationship with state regulators to ensure that Marcellus development is done safely, environmentally responsibly and in a way that protects groundwater. From enhanced well casing standards to recycling water to increased permitting fees allowing DEP to hire additional inspectors without adding a financial burden to state taxpayers, the natural gas industry remains supportive of effective, smart regulations and is committed to working with regulators as this responsible development expands.”

·         The New York Times recently reported that the Obama Administration fully supports the issuance of draft regulations for Marcellus development along the Delaware River Basin, noting: “The administration’s position is to continue fully supporting the need for a cumulative impact study. … Simultaneously, all these agencies support the DRBC’s decision to develop and release draft natural gas regulations.”

·         Further, President Obama has embraced the need to expand domestic natural gas production. The New York Times, on Nov. 4, reports: “’We’ve got, I think, broad agreement that we’ve got terrific natural gas resources in this country,’ Obama said when he was pressed for issues on which he could compromise with Republican leaders. ‘Are we doing everything we can to develop those [domestic natural gas resources]?’“

Coalition’s Membership Continues to Expand, Adds 35 New Associate Members

Canonsburg, Pa. – Today, at a formal Marcellus Shale Coalition (MSC) membership meeting, organization president and executive director Kathryn Klaber, along with Ray N. Walker, Jr. – the MSC’s chairman and senior vice president of Range Resources Corporation – were pleased to formally announce the executive committee’s newly elected leaders. Klaber issued this statement, welcoming Randy Albert, Chief Operating Officer of CNX Gas Company, LLC, Rob Broen, President of Talisman Energy USA, Inc. and Thomas Lopus, Appalachia Business Manager of J-W Operating Company to the executive committee, as well as the 35 new Associate Member companies to the MSC:

“Randy, Rob and Tom are outstanding professionals, and bring a breadth of understanding and proven leadership to the Marcellus Shale Coalition’s senior team. We’re excited and grateful to have them join our talented executive committee. Their work will help build upon the positive progress – more affordable supplies of clean-burning, homegrown energy for American consumers, the creation of tens of thousands of new jobs, and smarter, more effective ways to ensure environmental safety – that our industry continues to make each day.
“The MSC’s diverse and growing list of members underscores not only how far-reaching our industry’s impact and supply chain is having for the region’s economy, but more importantly, our long-term commitment to making absolutely certain that we get this historic opportunity right,” continued Klaber. Gary Smith, MSC Membership Committee Chairman and Vice President of EOG Resources, announced that 35 new associate members joined the coalition. “With more than 165 members strong now – cutting across a host of industries – we’re eager to expand our successes in the coming year. Our associate members play a critical role on a host of levels, and we’re thrilled to have so many subject matter experts working in tandem,” said Smith. The MSC’s new Associate Members are as follows:

Advanced GeoServices, Corp.; AVT, Inc.; Blank Rome LLP; Dawood Engineering, Inc.; DeBlasio Development, Inc.; Eckert Seamans Cherin & Mellott, LLC; Environmental Standards, Inc.; Gannett Fleming, Inc.; Greenhorne & O’Mara, Inc.; H2O Resources LLC dba WaterTrac; HDR Engineering, Inc.; Herbert, Rowland & Grubic, Inc.; Kroff Well Services, Inc.; Langan Engineering and Environmental Services; McNees Wallace & Nurick LLC; McTish, Kunkel & Associates; Nalco Company; New Pig Corporation; Pace Analytical Services, Inc.; Penn Environmental and Remediation, Inc.; Pennoni Associates, Inc.; PricewaterhouseCoopers LLP; Science Applications International Corporation (SAIC); SGC Engineering, LLC (Member of The Senergy Group); Siemens Water Technology; S.R. Wojdak & Associates, LP; Stahl Sheaffer Engineering, LLC; Stantec Consulting Corporation; The Quandel Group, Inc.; TMK IPSCO; Total Safety U.S., Inc.; Trican Well Service, L.P.; UniversalPegasus International; Valerus; and Walsh Construction

For information about MSC membership opportunities, visit Marcelluscoalition.org/about/how-to-join.

CANONSBURG, Pa. – Following up on the release of a news story by Reuters stringer Jon Hurdle this week indicating the city of Philadelphia’s intention to “refuse to buy natural gas obtained by the controversial method of hydraulic fracturing,” Marcellus Shale Coalition (MSC) president Kathryn Klaber issued the following statement and collection of supporting facts that, taken together, provide a degree of context not found in the original Reuters piece:

“This decision by the Philadelphia Gas Commission is not based in fact or reality and clearly demonstrates a lack of understanding of how natural gas is transmitted and delivered to consumers,” said Klaber. “If what was passed yesterday is put into effect, PGC would essentially deny the residents and businesses in the City of Philadelphia access to the very energy source used to heat homes and offices, cook meals and deployed for other daily uses.  Gas and oil harvested from hydraulically-fractured wells is proven, safe and has been deployed for decades on more than 1.1 million occasions without harm to drinking water supplies. PGC’s position that it will prohibit the procurement of gas from hydraulically fractured wells disqualifies the vast majority of natural gas produced onshore in the United States. This is more than unfortunate for the residents of the City.”

Additional background/context:

• State law directs PGW to purchase natural gas based on price. “Craig White, the city-owned utility’s executive vice president, said state and local regulations oblige PGW to buy the lowest-cost fuel on behalf of its customers, regardless of its origins. “PGW is required by both state law and city ordinance to pursue a least-cost procurement policy in order to benefit our ratepayers with a stable supply of natural gas at the lowest possible cost,” he said in written statement.” (Philadelphia Inquirer, 9.28.10)
• PGW is already under long-term contract to purchase natural gas from Gulf Coast.“White said that PGW buys all its natural gas under contract from Gulf Coast producers. It has signed long-term contracts with interstate pipelines to carry the fuel to Philadelphia.” (Philadelphia Inquirer, 9.28.10)
• Significant portion of PGW’s Gulf Coast natural gas comes from other U.S. shale formations, and is thus obtained through common hydraulic fracturing technologies.PGW procures a large quantity of its gas from the Transcontinental Pipeline, which connects up with many other pipelines as it makes its way from the Gulf Coast to the Northeast. According tothis transmission map posted on Transcontinental’s site (page 13), the pipeline gathers natural gas from a variety of sources – including the Haynesville, Eagle Ford and even the Marcellus Shale, all of which require fracture stimulation to remain viable.

By Kathryn Z. Klaber
Ithaca Journal // Press & Sun Bulletin // Elmira Star-Gazette
January 17, 2011

• “The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.”

On a dreary afternoon last summer in Schenectady, the man who would later become commissioner of New York’s Department of Environmental Conservation (DEC) rose to the podium at a luncheon event marking the 40th anniversary of the agency to urge a cautious approach in deciding whether to develop the state’s enormous reserves of natural gas from the Marcellus Shale. “I see no reason,” Open Space Institute president Joe Martens said, “to rush to judgment on a decision as monumental as hydrofracking.”

His alternative? Continue to keep the DEC regulatory and review process on hold until the EPA completes its latest study on fracking, set for release in 2012. Martens asks: “What’s the downside of waiting for the results?”

He was recently sworn in as the new head of the DEC, a position that will help determine the future of Marcellus development.

On its face, the notion of waiting around a few extra years to tap resources that have been in place for 390 million years isn’t entirely unreasonable.Continuing to delay the issuance of strict new regulations governing responsible Marcellus development, however, may result in far fewer jobs and much less revenue for New York.

In Pennsylvania, Marcellus exploration created more than 88,000 new jobs over the past two years, with researchers from Penn State predicting that number will climb past 110,000 new jobs over the next 12 months. Some of these jobs go to the folks who drill the wells, naturally — but the vast majority are along the supply chain. Certainly there will be thousands of jobs created if New York decides to develop the Marcellus. Less certain is how many of those jobs will follow if Albany continues to delay.

We’re talking about the people who forge steel, manufacture pipe, produce sand, do environmental work, research deeds and operate hotels. Faced with the prospect of indefinite delay in New York, these folks have decided to move ahead in Pennsylvania instead — building facilities and opening offices less than a half-hour’s drive from New York’s border. Those jobs will remain in Pennsylvania, and the longer the delay, the better the chances they’ll be held by Pennsylvanians.

The other key point to consider is infrastructure. According to Pennsylvania production figures, 19 of the top 20 producing natural gas wells in the entire state reside along a three-county stretch bordering New York. As more wells are developed there, available space in the existing pipeline network will gradually shrink.

The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.

The short-term economic case for harvesting clean energy resources from the Marcellus is no less compelling — especially with 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget. New taxes, pay freezes for state workers, consolidation of public schools — these are some of the tools that Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability. Why not one more?

Has there ever been a more important time to take advantage of these opportunities? Has there ever been a more obvious one?

Klaber is president and executive director of the Marcellus Shale Coalition.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

As the responsible development of the Marcellus Shale’s abundant, clean-burning natural gas reserves expands across the region, more stable and affordable supplies of homegrown energy are being delivered to consumers and small businesses who continue face tremendously difficult economic hardships. At the same time, this environmentally-proven production is helping to create tens of thousands of good-paying jobs for the local workforce, and positively impacting rural communities and small towns. At least largely in Pennsylvania, and West Virginia too.

You see, despite the fact the world’s first natural gas well was drilled in New York State some 185 years ago, the Marcellus Shale’s economic, environmental and energy security benefits are being fully realized in Pennsylvania, but not in the Empire State. Why? Well, leaders in Albany continue to maintain a policy of ‘hurry up and wait,’ keeping a de facto shale gas production moratorium in place as the state struggles with high unemployment and a spiraling budget crisis.

So what are other leaders, from neighboring Marcellus Shale gas-producing states, saying about this historic energy and economic development opportunity?

West Virginia state senator Mike Green, D-Raleigh, chairman of the Senate Energy, Industry and Mining Committee, “believes gas drilling OK if it’s safe for environment,” the Beckley Register-Herald reports. And we agree.

“We as a state, and as elected leaders, obviously are welcoming the Marcellus shale exploration,” [Sen.] Green said Friday, emphasizing the abundance of the natural gas poses a major plus for the state’s continued economic growth and expansion of the tax base. “We welcome that industry with open arms,” he said.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

The development of the Marcellus Shale formation for natural gas production is an economic development opportunity for the State, and we need to embrace it! Billions of dollars of private capital have already been invested in this activity and with it has come many jobs.

The development of the Marcellus Shale has the potential to restart the manufacturing industry in West Virginia. It is an opportunity that we simply cannot let go by.

How about water use in the shale gas production process, is it being effectively managed to ensure that the environment is protected? It absolutely is, according to Pennsylvania’s top environmental watchdog, Department of Environmental Protection secretary John Hanger. Secretary Hanger writes this in a recent Landsdale Reporter column:

Here’s the reality: every drop of tap water that was publicly treated is required to meet the safe drinking water standard.

And here’s what they’re saying about economic development and job creation tied directly to the responsible development of the Marcellus Shale’s clean-burning natural gas reserves, which continues to be largely left off the table in New York:

• “Opportunity knocks for economic development”: Drilling in the Marcellus Shale could rescue the ailing Southern Tier economy. But is it safe? Recovering this vast, lucrative resource relies on hydrofracking, which, while banned in New York, is legal in 12 states. We should lift the ban and drill. In 2010, Marcellus drilling generated 98,000 jobs and pumped $14 billion into the Pennsylvania economy. Over the next decade, Marcellus development will create 212,000 new jobs and generate $1.8 billion in tax revenues for Pennsylvania. Imagine your property taxes slashed, local businesses thriving and new ones opening. Imagine cash-strapped farmers holding onto the family farm, thanks to drilling income. This is only a dream in New York because big-city politicians want to keep upstate powerless and poor. … Ohio Gov. John Kasich is encouraging Marcellus Shale drilling; he says “there’s real potential to help a lot of people who have been in deep economic trouble for a long time.” Meanwhile, New York is on life support. Marcellus drilling could transfuse economic life into our area. (Elmira Star-Gazette Op-Ed, 1/12/11)

• “Natural gas drilling company looking to hire 90 with goal of all local labor”: Brothers Steven and Alan Peetz of Drums did well for a few years, driving trucks for a contractor involved in residential construction. The number of days they work, however, declined as fast as housing starts. On Tuesday, the brothers visited Scranton to see if they could get into the Marcellus Shale industry with Pumpco Services, a firm that performs hydraulic fracturing of natural gas wells. More than 300 people filled out applications with the company. Pumpco local operations manager, Andy Winkler, said he was gratified by the turnout at the Radisson at Lackawanna Station hotel. … People need to enjoy working outside and should be mechanically inclined. The job includes training on fracking technology, and the company is willing to train employees to get their commercial driver’s licenses. The company is also looking for diesel mechanics and a few electricians. (Scranton Times-Tribune, 1/12/11)

• “Natural gas boom keeps Sunbury painter busy”: Jamie Brumbach credits the booming natural gas industry with keeping him out of the poor house. “Without it, I’d be poor and unemployed,” said Brumbach, an industrial painter who signed a contract about six months ago to paint trailers used to haul frack water. … Brumbach is among thousands of Pennsylvania residents employed as a result of dozens of companies drilling in Marcellus Shale in the state’s Northern Tier. “It’s huge, and I’m all for it,” he said of the business. (Daily Item, 1/13/11)

• “Gas Drilling Company Hiring PA Workers”: One of the companies involved in natural gas drilling in our area wants to hire more local workers. Pumpco is holding a job fair until 3 p.m. Tuesday at the Radisson Hotel in Scranton. The company has about 30 openings. … The job involves working 14 hour days, 12 days on, 12 days off. Pumpco will pay 80 percent of the cost of your health care insurance, which includes medical and dental. Management said some of its workers can make $160,000 a year. (WNEP-TV, 1/11/11)

• “Atlas Energy launches $3 million expansion of Fayette facility”: One local natural gas exploration company has broadened 10-fold in the past several years and is continuing its growth with a $3 million expansion. Atlas Energy this month began construction on a 30,000 -square-foot addition to its office in the Fayette Business Park in Smithfield. The addition will include approximately 100 new office spaces, in addition to several large group-meeting rooms. The additional office space will accommodate many of the new employees that Atlas has hired over the past several years. In 2010, Atlas hired almost 70 new employees in Fayette County alone, “which is a big reason why we needed to expand our office,” Jeff Kupfer, Atlas senior vice president, said. … Company-wide, Atlas Energy has hired more than 210 new employees in 2010. (Herald-Standard, 1/9/11)

• “Regional job outlook starting to improve”: To the west, Broome monitors the Elmira area, which is seeing growth because of the booming Marcellus Shale natural gas play in Pennsylvania. When Texas-based Schlumberger Technology Corp. completes construction of its new facility in Horseheads later this year, the company predicts 300 to 400 new jobs will have been created during the transition from a temporary operating facility to a permanent one. The net effect on the regional job count falls right in line with the New York State Labor Department projections – a 38 percent increase in the number of people working for companies that provide support services for the natural gas industry. (Press & Sun-Bulletin, 1/8/11)

With 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget, the question remains: What are leaders in Albany waiting for? New taxes, pay freezes for state workers, consolidation of public schools – these are some of the tools that New York Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability.

How about one more? According to one study, Marcellus development could help create 16,000 new jobs and $15.3 billion in economic activity – and that’s just in Broome County alone.

Associated Press hit piece targeting Marcellus producers in PA takes months to assemble – and only hours for DEP, MSC, others to expose as “misleading”

AP Lets Sensational Story on PA Wastewater Fly on a Monday …

… One Day Later, Readers Learn the Actual Truth

Pa. allows dumping of tainted waters from gas boom  David Caruso Associated Press  Jan. 3, 2011  “Pennsylvania has been the only state allowing waterways to serve as the primary disposal place for the huge amounts of wastewater produced by a drilling technique called hydraulic fracturing.”  “This is an outrage,” said Tracy Carluccio, deputy director of the Delaware Riverkeeper Network, an environmental group. “This is indicative of the lack of adequate oversight.”  “A number of gas drillers have begun recycling wastewater in other parts of the country to cut down on the costs of disposal and of obtaining the fluids needed for new fracturing jobs.” (Associated Press, 1/3/11)                                                                                                                                                                 … 2,500 words later  “In some respects, it’s better than what’s already in the river,” he said of the water his plant discharges into the Conemaugh. “What we are putting into the river now is far cleaner, and far more eco-friendly than what was running in naturally from acid mine drainage.” (same story, buried down in 57th paragraph)

DEP chief: AP story on gas drilling wastewater misleading  Tim Stuhldreher  Central Penn. Business Journal  Jan. 4, 2011  “Monday’s Associated Press story on the disposal of wastewater from natural gas drilling misleadingly downplayed important regulatory reforms, Pennsylvania Environmental Protection Secretary John Hanger said.” (1/4/11)        Pa. is monitoring Marcellus shale wastewater  John Hanger – DEP Secretary  Allentown Morning Call (letter to the editor)  Jan. 5, 2011  “It’s appalling that David Caruso’s Associated Press Jan. 4 article would be posted and published based on the sensational premise that Pennsylvania isn’t protecting drinking water sources from drilling wastewater.”  “Here’s the reality: Every drop of tap water that was publicly treated is required to meet the safe drinking water standard.”  “We’ve doubled the number of oversight staff and now have arguably the nation’s most aggressive oversight program. That’s the real story here, but government doing its job doesn’t grab headlines the way a piece like David Caruso’s does. That’s disappointing.” (Hanger LTE, 1/5/11)    “Waste water (fluids) must be reused and recycled, or collected and treated at an authorized waste water treatment facility. DEP approval is required before the receiving treatment facility can accept the wastewater for processing and/or disposal.” (PA DEP Marcellus fact sheet, released 11/08)  Most water from drilling is recycled  MSC president Kathryn Klaber  Washington Observer-Reporter (letter to the editor)  Jan. 7, 2011  “Pennsylvania’s natural gas producers, on average, recycle more than 90 percent of the water that returns to the surface. The rest is delivered to underground injection sites … whose location, construction, maintenance and inspection are regulated under the Safe Drinking Water Act.  “[T]he industry is committed to being a zero-discharge operation in the state’s surface waters and continues to lead the nation in recycling technologies and practices.” (Klaber LTE, 1/7/11)         The rest of the story  MSC president Kathryn Klaber  Centre Daily Times (letter to the editor)  Jan. 7, 2011  “Thanks to advances in technology, producers are able to access more clean-burning natural gas by drilling fewer wells, lessening impacts to the land and reducing the volume of water needed to do the job.” (Klaber LTE, 1/7/11)   ___________________________________________ AP myth: Producers recycling water in “other parts of the country” – but not in PA?!      Fact: PA producers recycle more water from shale development than all other states combined        Recycling of waste water to be norm for Marcellus Shale gas wells     Rick Stouffer  Pittsburgh Tribune-Review  Oct. 20, 2009  “Major companies drilling for natural gas in Western Pennsylvania’s Marcellus Shale rock formation are or soon will be recycling all the waste water recovered from their operations, executives said Monday.”   Drilling plan includes recycling Staff Reports Wilkes-Barre Times Leader Oct. 28, 2010       “It makes sense to reuse this water,” said Ron Schlicher, an engineer consulting for the treatment company. “The goal here is to strive for 100-percent reuse, so we don’t have to discharge.” (10/28/10)  AP Forced to Re-Examine Its Claims on Recycling in Follow-Up   “…all of the state’s biggest drillers say they are now recycling a majority of the wastewater produced by their wells in new fracturing jobs, rather than sending it to treatment plants. Hanger said about 70 percent of the wastewater is now being recycled …” (Associated Press, 1/4/11)  Never let the facts get in the way of the story:  “The AP did not contact DEP for the story, [Hanger] said.” (Central Penn. Business Journal, 1/4/11)

 A Laflin-based coal company has signed the largest Marcellus Shale gas lease so far recorded in Lackawanna County.

 Silverbrook Anthracite leased six parcels totaling 1,635 acres in Archbald and Carbondale Twp. To Davis Land Services, a Texas-based land services agency, in October.

University Park, Pa. — Penn State Cooperative Extension will be holding three Natural Gas Taxation and Finance Workshops across the state in January 2011.

The first will be Jan. 12, at the Westmoreland County Cooperative Extension office, 214 Donohue Road, Greensburg; the second will be Jan. 19 at the Genetti Hotel and Suites, 200 West 4th Street, Williamsport; and the third will be Jan. 26 at the Riverstone Inn on Route 6 in Towanda.

The programs will run from 8 a.m. to 5 p.m. and will be geared for financial advisers, such as attorneys, accountants, financial planners, tax preparers and small-business owners. Landowners also are welcome.

“Gas taxation is extremely complicated, and it’s important for landowners to get the best advice possible to save money and avoid unnecessary taxes,” said Michael Jacobson, Penn State associate professor of forest resources. “But these programs are for educational purposes only and are not intended to be legal advice — if you need that, consult a tax professional or an attorney.”

Besides Jacobson, instructors will include Tim Gooch with the Pennsylvania Institute of Certified Public Accountants and ParenteBeard LLC; Dale Tice, attorney with Marshall, Parker and Associates; Jeffrey Kern, president of Resource Technologies Corporation; and Ross Pifer, director of the Agricultural Law Resource and Reference Center at Penn State’s Dickinson School of Law.

The registration fee is $120 if paid a week or more prior to the programs; registration will cost $150 after that. The fee will cover breaks, lunch and all course materials. The workshop will provide eight hours of continuing-education credits for attorneys, accountants and professional foresters.

Additional information and registration may be found online at http://guest.cvent.com/d/wdqt61. Questions related to course content may be directed to Mike Jacobson at 814-865-3994 or mgj2@psu.edu.

Penn State encourages persons with disabilities to participate in its programs and activities. Those who anticipate needing special accommodations or have questions about the physical access provided should contact Jacobson in advance of their participation or visit.

Originally Posted At: PSU.edu

Clean-Burning Marcellus Natural Gas Helping Small Businesses Reach “The American Dream”: Fred Raco is living proof that hard work plays a big role in reaching the American dream. … Raco is negotiating to purchase and refurbish a new facility in Richland Township, giving him three times more space than the city site. “We’re really gearing up for this,” he said of the Marcellus Shale. Raco currently has 23 employees working at his Johnstown laboratory and in the field. He expects his employment to reach 50 within two years. … Raco thinks Marcellus may allow more young people to stay at home. “They are by no means minimum-wage jobs.” Raco rejects the notion that the Marcellus jobs are going to workers from Texas. “There is a real misconception that all the jobs are being filled by people from out of the state,” he said. “We’re doing work with companies that are Pennsylvania-based that are manufacturing metering stations, manifold piping, that type of thing.” (Tribune-Democrat, 12/15/10)

Marcellus Shale Creating Jobs for America’s Veterans: A Penn State economic impact study predicted the industry will be an $8 billion boon to the state, with about half of that money generated in southwestern Pennsylvania. The study, commissioned by the Marcellus Shale Coalition, also projected that 88,000 jobs would be created in Pennsylvania this year. Those jobs are great opportunities for veterans, said Kathryn Klaber, executive director of the Marcellus Shale Coalition. Range employs dozens of veterans, Mr. Pitzarella said. “They’re ideal candidates,” he said. “They’re hard workers, team-oriented, natural leaders and have no issues with long hours.” … When Carl Dokter served another tour of duty overseas, Range held his job for two years and hosted a welcoming ceremony for him when he returned, he said. … Chesapeake Energy Corp. is another driller that employs a large number of veterans and is expanding its local footprint. The company employs about 150 military officers and servicemen, spokesman Rory Sweeney said. (Post-Gazette, 12/16/10)

Small Business Owner: “I am a Marcellus Overnight Success”: Three years ago, Larry Mostoller had two employees and was trying to develop a business park outside Somerset. Today, Mostoller employs 100 people and provides work for more than 30 subcontractors. He has gotten involved in the Marcellus Shale industry. “I am a Marcellus overnight success,” Mostoller said. Mostoller is co-founder and CEO of Somerset Regional Water Resources, a two-year-old company that provides nearly all general labor needs on a gas drilling site. … Mostoller is proof of Marcellus Shale’s role in changing the economic landscape. … One thing is certain: Marcellus is having an impact. … “It’s absolutely phenomenal. All of us are going to live better.” He is convinced that Marcellus Shale gas will continue to help meet the nation’s energy needs for years to come, and its development will take decades. “The person that drills the last Marcellus well has not been born yet,” Mostoller said. (Tribune-Democrat, 12/15/10)

Mayor: ‘Marcellus Multiplier’ Jobs Good “For The Entire Region” : For one Mon Valley municipality, drilling for natural gas into the Marcellus Shale will create dozens of new jobs. Export-based Dura-Bond Industries will open a 55,000-square-foot pipe-coating facility along the Monongahela River in Duquesne. It will serve to complement the company’s existing coating facility in nearby McKeesport. … Once opened, the facility will create between 75 and 85 new jobs in the Mon Valley, a fact that is not lost on Duquesne Mayor Phil Krivacek. “Well, anytime you can bring in a company that will create new jobs in the region is a definite plus,” said the mayor. “I think this a good thing for not only Duquesne, but for the entire region.” … “We are good stewards of the environment and will continue to be. It is imperative that the needs for job and energy production can meet with the needs of the environment.” (Post-Gazette, 12/16/10)

Small Business Owner on Marcellus Supply Chain Related Work: “We Were So Lucky”: Chesapeake has spent more than $94 million this year to pave or repair 300 miles of roads in Bradford and three other counties. That has benefited Leo Drabinski, who co-owns Calvin C. Cole Inc., a hard-rock quarry and construction company in Bradford County. He said demand for rock used for roads and well sites used by gas companies grew 10 times in the past year. He increased his quarry staff to 15 from six, and even started a van service to shuttle rig workers to their jobs. “We were so lucky,” Mr. Drabinski said. “We’re right in the heart of this natural-gas boom.” Business is also booming for truck dealerships, restaurants and motels. Some farmers have sold lease rights for $5,000 an acre, using the money to pay off debt, invest in new farm equipment or retire. … Chesapeake, whose Towanda offices are in a renovated department store, says it is working with local colleges so it can train an all-local work force. In the past year, the company increased its staff in the state to 1,100 from 250 and said more than 400 employees are state residents. (Wall Street Journal, 12/14/10)

Responsible Marcellus Development “The Region’s Gold Rush”: The Marcellus Shale is said to be the biggest natural gas field in the United States — spanning nearly 61 million underground acres under Ohio, West Virginia, Pennsylvania and New York. Southwestern Pennsylvania is called the “fairway” of the shale by industry experts, and its economic impact reaches beyond the energy in demand. Local politicians have described it as the region’s gold rush and the second coming of the coal and steel industries. (Post-Gazette, 12/16/10)

Economic Leaders: “Marcellus-Related Opportunities Have Meant Jobs in Various Areas”: Economic leaders…have been watching the Marcellus action to the west of the region and in the state’s northeastern counties. “JARI has identified the Marcellus Shale opportunity as one of the top opportunities for our region in the coming years,” Thomson said. … “The Marcellus industry needs just about anything and everything. It’s just amazing the amount of things that are needed.” … “The spinoff is where we’re going to see the economic impact,” Silka said. … Bradford County Commissioner John Sullivan said Marcellus-related opportunities have meant jobs in various areas. “They’re building three motels in the county,” said Sullivan. Sullivan has a friend who sells tires, and the Marcellus drilling has had a significant impact on his business. Another friend has a quick-lube shop and is overrun with business… Williamsport has seen 75 new businesses open during the past 18 months – since the surge in Marcellus drilling began there. … Kathryn Klaber, president of the Marcellus Shale Coalition said much of the economic benefit will be outside the direct industry. “The jobs story is starting to have a much broader reach,” Klaber said. … State Sen. John Wozniak, D-Westmont, said the Johnstown region is on the cusp of an improved economy. “It’s just beginning and there is a tremendous opportunity out there.” (Tribune-Democrat, 12/15/10)

Wall Street Journal Underscores Marcellus Shale’s Positive Economic Impact: A recent Penn State study estimates that Marcellus is the second largest natural gas field in the world. The study notes that Pennsylvania had $4.5 billion in Marcellus-related investment in 2009, generating nearly $400 million in state and local tax revenue and 44,000 jobs. … The drilling industry could compensate with new jobs in construction, trucking, engineering and a variety of attendant services. The industry also pays royalties and leases land from landowners, who pay taxes and buy goods. … The EPA and the Ground Water Protection Council, a nonprofit made up of state regulatory agencies, have published studies concluding that fracking is safe. While energy exploration is never risk-free, the Ground Water Council hasn’t found a single documented case of fracking having polluted local ground water. (Editorial, 12/16/10)

New Fed. Govt. Analysis Projects Rapid Growth in Clean-Burning Natural Gas

“DOE sees rapid growth in natural gas”: The Energy Department foresees a rapid growth in natural gas production over the next 25 years, according to a report from its statistical arm Thursday. … Natural gas will represent 62 percent of new capacity by 2035, EIA said. The greatest chunk of that should come from shale gas, which has already increased production 14-fold over the last decade. (Politico, 12/16/10)

“Shale-Gas Output May Double by 2035, Reducing Energy Imports, U.S. Says”: Production forecasts for natural gas locked in shale have doubled, which will help the U.S. become less reliant on imported energy, according to a federal agency. The Energy Information Administration’s annual long-term forecast shows gas from shale will play a bigger role in meeting U.S. demand, Richard Newell, agency administrator, said today in Washington. Production in 2035 is “twice the level that we had in last year’s outlook,” he said. … This year’s outlook more than doubles the estimate of U.S. technically recoverable reserves of natural gas from shale, a type of sedimentary rock, to 827 trillion cubic feet from 347 trillion cubic feet. New technologies that let natural-gas producers drill horizontally and fracture the rock formations with injections of water, sand and chemicals account for the increase, Newell said. (Bloomberg, 12/16/10)

“US doubles estimates for gas reserves”: In the first release from its Annual Energy Outlook for 2011, the EIA more than doubled its central estimate of the country’s technically recoverable reserves of shale gas, from 353,000bn cubic feet to 827,000bn cubic feet. The estimate would be enough to cover the entire gas consumption of the US for 36 years. The rapid development of shale gas production has already had profound effects on the US energy system, driving down prices and inspiring companies to invest in plants to produce supercooled liquefied natural gas that can be exported in tankers to Europe or Asia. (Financial Times, 12/16/10)

The atrium of the Penn State Downtown Theatre Center was standing room only last Wednesday for the first Research Unplugged event of the fall semester, a conversation with Marcellus Center for Outreach and Research co-directors Michael Arthur and Tom Murphy on the economic and environmental impacts of Marcellus Shale drilling in Pennsylvania.

Tom Murphy opened with the question “Why here? Why now?”

“The geology here is really superior,” Murphy noted. He presented data showing that the first six months of gas extraction in Bradford (the highest-performing county in Pennsylvania) has resulted in more than double the yield of a comparable county in Texas where gas companies are drilling into the Barnett shale.

Tapping the gas reserves in Pennsylvania’s Marcellus Shale will have a big impact on the state’s economy, he said. “We’ve been a net importer of energy over the course of time…but the expectation is that by 2013 we’ll actually be a net energy exporter.”

Murphy explained that yields from the wells are already exceeding early expectations. “Most of these wells are expected to run somewhere between 30 and 50 years…They’re looking at the overall yield for those wells at being somewhere between 3.5 and 4.5 billion cubic feet of gas over that whole duration of time,” he said.

Geoscientist Michael Arthur stepped in to explain the technical steps of extracting gas from the Marcellus Shale, including the controversial process known as hydraulic fracturing—or “fracking. Arthur explained that proper cementing of well shafts is critical to protect groundwater. “As you can imagine,” said Murphy, “just statistically, if nothing else—with more trucks, more people, more activity, with an industrial process—there’s going to be accidents and we’re seeing those occur…That’s likely something we’re going to see again statistically going forward. But the level of that at this point in time, with the amount development that’s occurring, still seems relatively low.”

Fielding questions from the audience, Murphy and Arthur touched on a variety of concerns, including where the large volume of wastewater goes, the prospect of a severance tax for the extraction of natural resources, the impact of well construction on highway traffic, and several other issues.

In wrapping up the hour-long discussion, Murphy stressed the importance of proper well construction. “My concern goes back to the integrity of the well as it is being drilled. The way it’s being cased—the grouting and the standards that are being used there—that’s where my concern is.” And, he added, well safety standards are being addressed, among a number of other issues, by Pennsylvania’s Department of Environmental Protection, with more inspectors being added to enforce the state’s environmental regulations.

Join us Wednesday, October 20, for our next conversation: “The Diabesity Tsunami: Facing the Crisis of Diabetes and Obesity,” featuring Associate Professor of Medicine, Robert Gabbay.

— Kelsey Bradbury, Research Unplugged intern

Originally Posted At: PSU.edu