Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

Bradford County woman sues driller over well problems

The Associated Press

 PHILADELPHIA — A Bradford County woman is suing natural gas driller Chesapeake Energy Corp. and two of its subsidiaries, claiming that drilling near her rural home has fouled the water with methane and other pollutants and created a rash of health problems since 2009.

Judy Armstrong’s lawyer, Peter Cambs, said Thursday that the lawsuit, filed in state court in Bradford County on Wednesday, asserts the woman has seen her water supply contaminated with methane, barium and other irritants that have left her with health problems.

Chesapeake senior director for corporate development Brian Grove said Thursday the company had not seen the lawsuit and he could not comment on it.

Also named in the suit were Chesapeake subsidiaries Nomac Drilling LLC and Chesapeake Appalachia LLC.

The state Department of Environmental Protection views the potential for contamination by methane, a highly flammable gas, as among the most serious risks of gas drilling in the Marcellus Shale formation.

The DEP said last month that at least six residential wells were tainted with methane believed to be caused by Chesapeake’s drilling operations.

View article here.

Copyright:  The Times Leader

Debate over proposed Dimock water line divides community

By Laura Legere (Staff Writer)
Published: October 25, 2010

DIMOCK TWP. – A wealth of gas beneath this small Susquehanna County community has brought it a new industry, a national reputation for bad luck and a host of polarizing issues: the risks and damage to water, soil and air; the fair rate for leased land; the condition of the roads and the shape of the economy.

But nothing has defined the division in Dimock Township like a line that exists, for now, only on paper: a proposed $11.8 million water main to bring fresh water to 18 families with methane linked to gas drilling in their wells – a pipe that will travel along Route 29, the thoroughfare that cuts the township in two.

For the group of citizens and businesses called Enough Already that formed this month to oppose the line, the project represents a big-government solution that penalizes many taxpayers for the benefit of a few and threatens to drive away the gas companies that have brought them money or jobs.

For the residents who need the line – those whose water has been contaminated with methane the state found seeping from faulty natural gas wells – the opposition is an attack on their health and safety that comes after they have waited two years for clean water.

“To have neighbor go against neighbor – our own neighbors are doing this,” said Norma Fiorentino, the retired nurse whose water well first drew the state’s attention to the methane problem when the concrete slab above it was blown apart in January 2009.

“This is a real stab in the back for us,” she said. “That was not our fault this happened.”

‘We’re fed up’

Enough Already’s two dozen core members met for the first time in early October, days after Department of Environmental Protection Secretary John Hanger announced a plan to use public financing to build the 12.5-mile waterline then sue to get the money back from Cabot Oil and Gas Corp., the company deemed responsible for the contamination.

The group declared its opposition to the line in an ad in the Mulligan’s Shopping Guide, a Susquehanna County advertising publication, on Oct. 13. It began posting fliers with the same logo – a blue pipe labeled “water line” crossed out in red – in businesses and on public bulletin boards along the proposed route from Montrose to Dimock.

Dan and Gretchen Backer posted the fliers in the windows at the Inn at Montrose, the hotel and restaurant they bought and expanded since 2008 to serve the gas workers.

Gretchen Backer summarized the group’s position: The state has “gone amok” by siding with families who are suing Cabot for contamination the driller says it did not cause and using the opportunity to demand a “handout” from a wealthy company in order to expand a public utility.

“There’s just enough flags that say this is ridiculous,” she said.

Before the lunch rush last Tuesday, she and Dan Backer sat at a table in the tavern they renovated entirely except for the original bar made from wood reclaimed from a bowling lane.

The couple touts the fact that they have benefited from the influx of industry, and they think not enough is said about the good influence of gas drilling.

“Enough Already is enough with the negativity,” Dan Backer said. He fears the combination of state enforcement actions against the gas industry and a public perception of Dimock as a “wasteland” will kill the new opportunities.

“If they left, we’re done. We fold,” he said. “We can’t survive serving steaks and cheeseburgers.”

At Lockhart’s – a combination tag and title business, gas station and diner about 2½ miles south on Route 29 – the Enough Already flier was posted last week on a cork board below another advertising a chicken-and-biscuit dinner.

Don Lockhart, the owner of the business for 26 years, sat on a stool at the lunch counter, where he keeps a petition asking the state infrastructure investment authority to deny financing for the project.

“They’re going to shove this water down everybody’s throats,” he said. The affected residents should have clean water, he said, but the state should consider the impact on people who are not involved with the problem and think of less-intrusive options, like building a reservoir closer to the affected homes.

“All you’re getting is the ‘wah, wah’ part of this,” he said. “You’re not getting any common sense. All you hear about is ‘these poor people.’ The people, we’re fed up.”

Residents without businesses also have signed on with the group, including at least three who have had replacement water provided by Cabot because they believe drilling has damaged the quality or quantity of water in their wells.

Martha Locey, a 78-year-old woman who lives on her family’s farm in Hop Bottom, gave $20 – the money she had in her purse during the group’s first meeting – to help pay for the Enough Already ad. Her farm’s two water wells have had methane in them since they were drilled in the 1940s and 1970s, she said, and signed an affidavit for Cabot testifying to that fact.

“I came out with the truth, because I know it has been in the water,” she said.

The company has used evidence of pre-existing methane to help prove its case that it did not cause the problems in the Dimock wells. It also paid Dr. Robert W. Watson, an emeritus professor of petroleum and natural gas engineering at Penn State University, about $25,000 to review its materials and well-completion records. Watson concluded that Cabot’s wells did not cause methane to seep into aquifers.

DEP counters Cabot’s evidence with a photographic record of methane bubbling out of the company’s gas wells, documentation of excessive well pressures, and isotopic analysis – a kind of chemical fingerprinting – that matches the gas in the affected water supplies with the gas coming from Cabot’s wells.

Hanger has explained that the waterline is the only remedy that will guarantee the families clean water – now and in the future – because there is no certainty that methane will stop migrating from Cabot’s wells.

He also dismissed the conclusions reached by Watson.

“No surprise that his report supports the company that is paying him,” he said in an e-mail.

‘Stirring up trouble’

The most visible battle in Dimock has been the one waged between DEP and Cabot in press releases, public announcements, letters and ads.

Hanger sees evidence of Cabot’s influence in the formation of Enough Already, an accusation the group and Cabot both deny.

“For Cabot to constantly stir up trouble is very disappointing,” Hanger said. “They are doing everything to deflect attention from their own failings and creating distractions from the real issue here, which is they drilled bad wells.”

The businesses hosting the Enough Already petition are either Cabot contractors or frequently do business with the company or its workers, he pointed out. One business, listed on the ad as Guy Parrish’s, is hired by Cabot to deliver replacement water to families affected by the stray methane.

Cabot spokesman George Stark said the driller “does business with many Susquehanna County companies, having invested nearly a billion dollars in the region. Cabot did not ask businesses to participate in any organization or group in Susquehanna County, or anywhere else for that matter.”

Harold Lewis, a resident who has worked delivering water to the affected homes, built a large handmade sign with the words “water pipe line” crossed out in black in his front yard just beyond a telephone pole wrapped with four No Trespassing signs.

The anti-waterline sign faces across the road toward two homes with tainted water.

“It’s nothing against the neighbors or anything like that,” he said in a hallway of Elk Lake High School after a meeting organized by Enough Already on Thursday night. “It’s against the pipeline.”

The Lewis family also had replacement water supplied by Cabot for several months after they noticed an odor in their well water. Lewis said he was just “nervous in the beginning,” but tests show the well water is fine.

“I know all the neighbors think I’m mad at them – I’m not,” he said. “They’re probably mad at me now.”

The meeting on Thursday was punctuated with shouts from members of the audience, many from outside the town or county, who wore blue ribbons in support of the affected families in Dimock.

As the meeting ended, those wearing blue ribbons looked warily across the auditorium as those without ribbons were being interviewed for television. On the other side of the room, audience members sympathetic to Enough Already mumbled on their way out the doors that the families’ complaints were “all about the money.” Others said the families were “pumping chemicals into their own wells.”

Lynn Senick, a Montrose resident and critic of the industry, stood outside and touched the ribbon on her lapel.

“I hate the divisiveness and the lies,” she said. “I hate that the DEP, their authority is being flouted and challenged. I don’t like to walk down the street and feel like I can’t talk to certain people, or that because I have this” – she pointed to her ribbon – “now I’m an enemy.”

Residents who will be served by the waterline also recognized the stakes are higher than hurt feelings.

“If we have regulations and laws but DEP won’t hold the gas companies responsible, we might as well have no DEP,” said Victoria Switzer, one of the affected residents, who paused in the hall after apologizing to the presenters for the heckling from the families’ out-of-town supporters.

“No laws, no regs, just gas,” she said. “Welcome to Dimock.”

llegere@timesshamrock.com

View article here.

Copyright: The Citizens Voice

What They’re Saying: MSC on the Road, Shale Gas Industry Continues to Bring Hope to Rural Communities

It’s been another busy, fact-packed, job-creating week for the Marcellus Shale Coalition(MSC). From meetings with Luzerne County landowners, to a grand opening of aWestmoreland County facility, the MSC continues to engage and help educate key stakeholders, various coalitions, small businesses and folks just looking for an opportunity to join our industry’s efforts in delivering affordable, clean-burning energy for America — a key aspect of our ‘Guiding Principles’.

Here’s what they’re saying about the economic activity that responsible Marcellus development is providing for the region’s workforce and small businesses.

  • “Now there is an opportunity and plenty of work that will be here for a long time”: “More than 100 local business people turned out to see how they can take advantage of the touted economic boom from Marcellus Shale natural gas extraction. Businesses ranging from engineering and restaurants to jewelers and electricians came to the Hilton Scranton and Conference Center to see what the new industry needs and whether they can provide it. The dollar amounts are eye-popping. A single well costs $4 million to complete. It requires 125 tons of cement, 5,000 tons of aggregate stone and 180 rail cars of sand. A Range Resources executive said more than 100 suppliers and contractors are needed to complete a well. Every mile of pipeline is another $1 million. … “We are an example of a local company that got involved in the play,” he said. “I came back to the area for this, and we all complain that our kids can’t come back. Now there is an opportunity and plenty of work that will be here for a long time.” (Scranton Times-Tribune, 10/22/10)
  • Local Business Hires 20, Opens Two New Offices for Marcellus-Related Work: “The Marcellus Shale offers tremendous economic opportunity for local small business owners, representatives of the Marcellus Shale Coalition said Thursday. … At a meeting with local business leaders … representatives from the natural gas drilling and pipeline industries offered advice on how to tap the well of opportunity offered by the shale gas industry.About 100 people attended the event, which was co-hosted by gas-industry advocacy group Marcellus Shale Coalition, the state Department of Community and Economic Development, the Northeastern Pennsylvania Industrial Resource Center and the Greater Scranton Chamber of Commerce. Chris McCue, of Borton-Lawson, called his Wilkes-Barre-based environmental engineering firm a “story of a local company that’s been able to get involved in the (Marcellus Shale) play that didn’t have experience prior to the play developing.” McCue said development of the Marcellus Shale has given Borton-Lawson “a resume that we didn’t have a year and a half ago and helped the firm hire 35 employees since January, 20 of them directly linked to the drilling industry, and open branch offices in Towanda and Pittsburgh. (Wilkes-Barre Time Leader, 10/22/10)
  • MSC president “sees 90,000 new Pa. jobs by end of year”: Promising thousands of jobs and decades of development, a natural gas drilling advocacy group says the change the industry will bring to Pennsylvania has only just begun. “I think it has happened quickly, but I think the coverage of it has been pervasive. I mean the interest in it has made it seem faster than it really is,” Marcellus Shale Coalition President Kathryn Klaber told The Times Leader on Wednesday. Natural gas drilling in the Marcellus Shale is not a “flash-in-the-pan gold rush,” Klaber said, but an industry that will add 90,000 jobs to Pennsylvania’s work force by the end of the year and will produce steady employment for decades to come.” (Wilkes-Barre Time Leader, 10/21/10)
  • “Marcellus Shale natural gas can give Pennsylvania energy security”: “Pennsylvania is facing a ‘huge opportunity’ with the development of the Marcellus Shale, but it also faces many more challenges in the coming year on several economic fronts, a state Chamber of Business and Industry executive believes. Gene Barr, vice president of Government and Public Affairs for the Pennsylvania Chamber of Business and Industry, was the keynote speaker at last night’s annual meeting of the Clinton County Economic Partnership. … “This area, along with the rest of the state where the Marcellus is, has the opportunity to see the biggest economic boom that Pennsylvania has seen in decades,” he said. … Marcellus Shale natural gas can give Pennsylvania energy security at a time when the state is now a huge exporter with of coal and nuclear power, he said. (Lock Haven Express, 10/14/10)
  • More Marcellus Jobs en route to Tioga Co.: “Ground was broken Thursday for a treatment plant that will allow wastewater produced by hydrofracturing for natural gas in the Marcellus Shale in Tioga County to be treated and reused “indefinitely,” according to Neil Hedrick, Hydro Recovery LP president. … Hydro Recovery LP is expected to begin operations in April, Hedrick said, and will employ 12 people. It also will create about 40 construction jobs while it is being built. Mike Hawbaker, owner of Hawbaker Engineering, is the plant’s designer. Since drilling began in the Marcellus Shale more than two years ago, his company has been able to add 200 jobs, he said. Hedrick said the facility is the first of about 12 the company plans to build in the region. (Williamsport Sun-Gazette,10/22/10)
  • Chamber of Commerce Exec.: Marcellus Producers “are hiring local”: “Companies doing business in the Marcellus Shale are moving to the area and creating jobs for local workers. About 1,000 of the jobs were available at Saturday’s Marcellus Career Expo at the Pennsylvania College of Technology field house. … According to an event program, companies were looking for, among other things, receptionists, sales staff, crane and heavy equipment operators, commercial drivers, general laborers, mechanics, drillers, derrick-hands, and engineers. “There are definitely local jobs available,” said Chamber of Commerce Executive Vice President Jason Fink. “There are a lot of folks saying people are being brought in from out of state for these jobs. That’s not what we’re seeing from these companies. They are hiring local.” … Mark Farabee, district manager for Halliburton… said his company is expanding and anticipates hiring 300 people by the end of next year. … “The majority are local,” Morris said, adding, “We’re always looking to hire employees. I just hired 12 people within the last three or four days.” (Williamsport Sun-Gazette, 10/17/10)
  • Marcellus Jobs “reality, in some cases, is different from the talking points of the industry’s detractors”: “There were 20 companies there. They were offering about 1,000 jobs. They intend to hire local people. That was the format at Saturday’s Marcellus Career Expo at the Pennsylvania College of Technology. Besides offering opportunity, the expo offered a window into the reality of employment by the gas industry. That reality, in some cases, is different from the talking points of the industry’s detractors. … These companies do hire local people and will be hiring more of them … While many of those hired may start out relatively low on the wage scale, they can make a lot of money within a couple years, perhaps in the $60,000 to $100,000 range. (Williamsport Sun-Gazette Editorial, 10/22/10)
  • Working Together, Educating the Community, Hiring Locally: “A gas industry engineer stressed the importance of working together to ensure Wayne County can get the most out of the Marcellus Shale at a Tuesday evening educational forum on natural gas drilling. The Wayne County Oil & Gas Task Force and the Penn State University Cooperative Extension sponsored “Marcellus Well Drilling 101” at the Honesdale High School. … He said Marcellus Shale in the county would bring opportunities to everyone. … He also said the process is so broad and complex that it would be impossible to not involve local workers. “We have to work together. I’m not able to transport a bunch of workers from Oklahoma,” he said. (Wayne Independent, 10/20/10)
  • Baker Hughes hiring for center: “Baker Hughes Inc., an oil and natural gas services company based in Houston, said Thursday it is hiring an unspecified number of skilled laborers for its new $16 million repair and maintenance center in Hempfield, Westmoreland County. The 57,000-square-foot facility will support natural gas drilling and production in the Marcellus shale reserves in Pennsylvania and West Virginia, said spokeswoman Kathy Shirley. About 75 people so far work at the Hempfield center, part of a $250 million investment Baker Hughes is making to support its Marcellus operations, the company said. (Tribune-Review, 10/22/10)

Copyright http://marcelluscoalition.org/

MSC Statement on Ongoing Legislative Developments in Harrisburg

We’re regretful that there wasn’t closure brought toward achieving commonsense legislative initiatives

Canonsburg, PA – As the Pennsylvania General Assembly’s legislative session draws to a close, Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement regarding the months of good-faith, broad-based discussions that the industry continues to participate in with the goal of reaching sound, legislative and regulatory solutions that will encourage economic growth and job creation, while helping to put the Commonwealth on a path towards a cleaner energy future:

“From the outset of these discussions, our industry has been working closely with elected leaders and key stakeholders in an effort to modernize the Commonwealth’s legislative and regulatory framework. These commonsense and shared goals will help ensure that capital investment will continue to flow into Pennsylvania, which is critical to expand job opportunities during this period of high unemployment and economic uncertainty.

“Expanding the responsible development of the Marcellus Shale’s abundant, clean-burning natural gas resources will also help put our region and the nation on a path toward a cleaner and more secure environmental future.

“As part of a well thought out and considerate comprehensive overhaul that includes legislative and regulatory modernizations, our industry maintains its support for a competitively structured severance tax that allows for capital recovery and reinvestment, comparable to other leading shale gas producing states, such as Arkansas, Texas and Louisiana.

“The leadership in the state senate deserves credit for their months of work in crafting a competitive, well-balanced package of reforms that would help ensure Pennsylvania remains a leader in responsible shale gas development.

“While our commitment to achieve these shared goals remains steadfast, we’re regretful that there wasn’t closure brought toward achieving these commonsense initiatives during this legislative session. We must get this historic opportunity right; we cannot afford not to.”

NOTE: Below are a host of MSC statements regarding regulatory and legislative developments and proposals:

  • “Kathryn Klaber … says the bill the House passed is more than double what is the least competitive severance tax in other shale gas states. The House bill would put a 39 cent tax on every thousand cubic feet of gas drilled. Klaber says a severance tax that is not competitive with other states would stifle competition in Pennsylvania.” (WDUQ,10/11/10)
  • “A competitively structured tax in Pennsylvania, that allows for critical capital investment, coupled with smart regulatory and legislative modernizations, is key to ensuring that this historic opportunity is realized in ways that benefit each and every Pennsylvanian.” (MSC statement, 9/29/10)
  • “A fair, competitive and updated regulatory framework and tax structure has been, and continues to be the position of the Marcellus Shale Coalition – a position the industry has conveyed to both the executive and legislative branches of our state government.” (MSC statement, 9/20/10)
  • “Kathryn Klaber, executive director of the MSC, an advocacy group representing almost all of the state’s shale gas producers, said the Arkansas [tax] model is one the coalition has been encouraging because ‘we view it as a good way to encourage development and return some revenue to local governments.’” (Pittsburgh Post-Gazette, 9/8/10)
  • “MSC President Kathryn Klaber says the fiscal code language about the severance tax proposal includes a commitment by elected leaders to conduct a comprehensive evaluation of ‘how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.’ … ’We need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface.’” (WDUQ, 7/7/10)
  • “MSC members will continue to be key participants in this iterative, ongoing process, working alongside the General Assembly, the administration and stakeholders across the Commonwealth to put our state in the best possible position to seize on the extraordinary opportunities of the Marcellus. And when it comes to that objective, there’s nothing more important than having a tax, regulatory and legislative framework in place that’s collaborative in its approach, and comprehensive in its design. Today’s agreement moves us one step closer toward the realization of such a plan.” (MSC statement, 7/6/10)
  • “We will continue to work closely with the General Assembly, the governor and his administration, as well as county and local officials, to craft commonsense solutions – especially modernizing our outdated regulatory framework – that encourage competitiveness, expanded job creation and energy security.” (MSC statement, 6/15/10)
  • “Kathryn Klaber, president of the MSC … said state regulations need to be ‘dusted off and modernized’ but emphasized the competitive nature of the gas drilling industry and its economic benefits for the state.” (Pittsburgh Post-Gazette, 5/4/10)
  • “We stand ready to work with you on a plan to convert this potential into historic opportunities for the future – and look forward to continuing to update you and your colleagues on our progress and priorities in the weeks and months to come.” (MSC letter to General Assembly, 4/8/10)
  • “The MSC is committed to an ongoing dialogue with key stakeholders on the development of this framework. This opportunity is far too important for Pennsylvania’s economic future and the future of clean energy development for the nation. We will continue to work closely with lawmakers and regulators to make sure Pennsylvania gets it right, especially given how fortunate we all are to have this once-in-a-lifetime chance to make a difference in the lives of so many.” (MSC statement, 2/9/10)

Copyright http://marcelluscoalition.org/

Naylor: Drilling issue top priority

By Erin L. Nissley (Staff Writer)
Published: October 21, 2010

Dan Naylor said he has thought a lot about Marcellus Shale over the past six months, a subject he believes will have the greatest impact on Northeast Pennsylvania in his lifetime.

The Benton Twp. Republican, who works as a commercial engineer and has served on the Lackawanna Trail School Board for 17 years, has a gas lease on the 100-acre dairy farm where he grew up. And since making the decision in February to take his second run at a seat occupied by state Rep. Jim Wansacz, Mr. Naylor said he has begun worrying more and more about how to protect communities that host drilling.

In a Wednesday meeting with the Times-Tribune editorial board, Mr. Naylor said his top priority if elected to represent the 114th Legislative District will be balancing the impact Marcellus Shale drilling will have on job creation and the economy with the impact it will have on the environment and infrastructure.

“Protecting the environment must come first,” Mr. Naylor said.

And while he is for implementing a state severance tax on natural gas drilling, he does not support the proposal on the floor in Harrisburg because about 81 percent of the money generated would go into the general fund. He believes most of the money collected should stay with the communities affected by drilling.

Mr. Naylor is running against Democrat Sid Mich-aels Kavulich, a former reporter for WBRE-TV and WYOU-TV who has spent the last four years working as a communications specialist for the Senate Democratic Caucus. The pair are vying for the seat held by Rep. Jim Wansacz, who lost a bid for the 22nd Senatorial District seat in the primary.

Representatives serve two-year terms and are paid $78,314.66 a year.

Also at Wednesday’s meeting, Mr. Naylor said he would like to look at decreasing the size of the Pennsylvania Legislature to save money, realign the state budget to make transportation and infrastructure needs a bigger priority and increase accountability of elected officials in Harrisburg.

He has promised not to take per diems – taxpayer-funded reimbursements for expenses that do not require receipts – and will post receipts for expenses on his website.

“Right now, no one trusts Harrisburg, and no one trusts elected officials,” he said. “I want to be held accountable.”

Contact the writer: enissley@timesshamrock.com

View article here.

Copyright:  The Scranton Times

In the Know on H20

Government agencies dispel myths on water usage in the Marcellus, while MSC operators continue to recycle what they have, pursue sustainable means for what they need

Seven seconds.

The time it takes for food to pass from your mouth to your stomach. The length of an average play in the NFL. And, in case you’re counting, the amount of time that has elapsed since you started reading this email. You know what else? Every seven seconds, the Susquehanna River deposits two million gallons of water into the Chesapeake Bay – equivalent to the amount that producers of clean-burning natural gas from the Marcellus Shale withdraw (and pay for) over the course of a 24-hour day.

Two-million gallons sounds like a lot, doesn’t it? Well, consider this: All told, the Susquehanna and its surrounding watershed convey more than 26 billion gallons of waterthrough the Commonwealth every single day – which means the two-million gallons associated with the Marcellus in Pennsylvania account for roughly 0.0125 percent of the basin’s total supply. By contrast, 325 million of those 26 billion gallons – 1.5 percent – go toward meeting the general water needs of the state and its citizens; basically the stuff we use for drinking, showering, dishes and laundry. About 150 million more are claimed each day for power generation. And then there’s the 50 million gallons a day used for “recreation.” Think ski slopes in the winter, golf courses in the summer, and Crocodile Mile all year long.

As with most issues related to the Marcellus, applying the relevant context is key to understanding the relevant substance. And to its credit, the Susquehanna River Basin Commission (SRBC), which oversees and regulates water withdrawals throughout the river’s expansive basin, hasn’t let the politically charged nature of the Marcellus debate get in the way of getting out the facts. Just this past weekend, in fact, SRBC’s Jim Richenderfer was asked by the Williamsport Sun-Gazette whether he thought natural gas exploration posed a threat to local water supplies. Here’s what he had to say:

“There is no danger the gas industry will drain the basin of its water,”Richenderfer said. … According to Richenderfer, the gas industry is removing about 2 million gallons of water per day from the watershed, though it is permitted to remove 25 to 30 million gallons. That is a drop in the bucketcompared to the amount of water flowing out of the watershed at any given moment, he said.

As SRBC’s Richenderfer alluded to in his comments above, Marcellus producers are permitted by SRBC to withdrawal as many as 30 million gallons of water a day. So why are they currently only drawing about one-fifteenth of that amount?

Glad you asked. For starters, we simply don’t need as much water to do the job these days as might have been required in the past. Chalk that one up to advances in water recycling. Remember: Three years ago, very little of the water being produced at the wellsite was being re-used. Today? Many of the large operators are recycling 100 percent — and across the entire Coalition, that number is nearing 70 percent and rising each month.

Some of those operators recycle that water right at the wellsite; others take it to local (but strictly regulated) facilities to do this work for them. Yesterday’s Williamsport paper goes into a bit more detail on the basic mechanics involved in treating this water before it’s eventually re-used again by operators:

Trucks drive to a spill-proof concrete pad at the back of the building, hook up to an inbound receptacle and unload the wastewater, which is filtered to remove items such as stones, mud and other debris. The water then is filtered through a silt sack and stored in a lined concrete pit. … According to Larson engineer Quay Schappell, every truck that pulls into the facility has to complete a manifest showing the well from which its load was taken.

But of course, recycling is only one-half of the equation. The other key consideration relates to finding the most responsible and sustainable ways to access the water we need without adversely affecting ground or surface reservoirs. Most folks think that 100 percent of the water used in the development of the Marcellus Shale comes from surface sources like lakes, streams, ponds and rivers. But that’s never been true in the past, and it’s certainly not true today.

Just look around the Commonwealth for yourself. A story this week in the Centre Daily Times highlights an effort by MSC member Exco Resources to secure “400,000 gallons per day from the University Area Joint Authority’s beneficial reuse recycled wastewater” – literally taking already-used, about-to-be-discharged wastewater off the hands of local water authorities, and paying them for the right to do it.

Now look up along the Northern Tier, where Seneca Resources Corporation, another MSC member, announced earlier this fall that it was utilizing water from abandoned coal mines to conduct its fracturing operations in Tioga Co. Here, Seneca effectively killed two birds with one stone: Not only did the move allow the company to reduce its intake of freshwater, it also had the effect of greatly reducing discharges of mine water into local waterways – a release point that DEP had previously identified as the fifth most severe in the state. Less water means less traffic on the roads. Good for the environment, right? It’s also good for business:

By using the mine run-off water instead of fresh water resources, Seneca estimates it is saving $120,000 per well it drills. In addition to monetary savings, this method also reduces the truck traffic on the roads, saving wear and tear on roads. It’s too soon to tell what positive effects the removal of mine water will have on the local trout population.

Of course, the further east you venture along the Northern Tier, the closer you get to the boundaries of another interstate watershed commission that’s found itself in the news plenty over the past several months. Now we’re talking about the Delaware River Basin Commission (DRBC), which just this week announced yet another delay in promulgating new rules governing the permitting of Marcellus operations in the eastern sixth of the Commonwealth. Previously scheduled to be released in September, and then in October,DRBC now says they’ll be sent around sometime in November. Or maybe later.

But you know what? Let’s also give credit where credit’s due. Late last month, DRBC executive director Carol Collier addressed an annual meeting of energy producers in New Paltz, N.Y., using the occasion to dispel the myth that DRBC was anti-Marcellus, and outright dismissing the notion that water withdrawals associated with shale development were of even mild concern to her or her Commission.

According to Collier, more than billion gallons of water are withdrawn from the Delaware River watershed every day — for a host of industrial, consumer and agricultural needs. The way the DRBC sees it, Marcellus development has the potential to account for 7 to 13 million gallons of water withdrawn a day – meaning that shale development, at maximum, would account for just 0.15 percent of water usage in the basin. You’ve heard of theMarcellus Multiplier, right? Now meet the Marcellus Rounding-Error.

Interestingly enough, some observers predict that eventually producers may able to tap the Marcellus using very little (or perhaps even no) water at all. Until then, every single member of the MSC is committed to doing more with less, and applying the best and most innovative technologies available to ensure the water we do use is used right – and secured in the most responsible, sustainable way possible.

Copyright http://marcelluscoalition.org/

DEP, Cabot argue over Dimock water contamination

Ted Baird
Published: October 20, 2010

The state Department of Environmental Protection and Cabot Oil and Gas Corp. traded barbs Tuesday about the scope, cause and solution for methane contamination in 18 residential water wells in Dimock Township.

The state agency and the natural gas drilling company have been arguing via press releases and advertisements since late last month when DEP announced that Pennsylvania American Water Co. will construct a new, 5.5-mile water main from its Lake Montrose treatment plant to provide water to the affected families, and Cabot would be made to pick up the tab.

“DEP was forced to take action since Cabot continues to deny responsibility for the contamination, despite overwhelming evidence of its responsibility,” DEP Secretary John Hanger said in a letter released widely on Tuesday and circulated over the weekend in Susquehanna County.

“Since that announcement was made, Cabot has launched a public relations campaign and much misinformation has been brought forth concerning who will be party to that solution and who will end up paying for it.”

In a press release also sent Tuesday, Cabot spokesman George Stark said that water tests performed by Cabot and DEP showed only four of the 18 water wells have methane at levels exceeding the 28 milligrams per liter limit suggested by the U.S. Department of the Interior’s Office of Surface Mining. He also said the company, which maintains it did not cause the methane contamination, has provided “substantial and persuasive proof that methane gas has been present in water wells in and around the Dimock area for generations.”

Hanger said in an interview Tuesday that Cabot “unfortunately” continues to deny responsibility and the company’s data “must be examined through that prism.”

The state’s environmental oversight agency determined that excessive pressures and faulty casings in 14 of Cabot’s natural gas wells caused methane from a rock layer above the Marcellus Shale to seep into residential water supplies.

The state’s evidence includes video recordings of gas bubbling between the casing in Cabot’s wells and high pressure readings “that could only exist in wells that are leaking,” as well as isotopic analysis – a form of chemical “fingerprinting” – that matched the gas found in five homes to the gas leaking from nearby Cabot wells.

Hanger said DEP testing since April has shown as many as 18 affected supplies. DEP will continue water tests until the Nov. 1 deadline for Cabot to rid the water of gas.

“We, of course, would be delighted, as the families would be, if in fact some of the gas went away,” he said. “We have seen declines at some properties, but not at all. We’ll do some more testing and frankly we’ll make our own judgments based on our own data.”

In the open letter to Susquehanna County residents, Hanger said PENNVEST, a state agency which finances water and sewer projects, will be asked to provide the $11.8 million for the water line project, and then the state will “aggressively seek to recover the cost of the project from Cabot.”

“No one in Dimock or Susquehanna County will pay for it and local taxes will not be increased as the result of it,” he said.

Besides the affected residents, others who live on Route 29 between Montrose and Dimock will have the option to tap into the water line if they choose, Hanger said, adding that the line should boost the value of homes and businesses nearby.

Stark called the project an “unwarranted burden on the taxpayers of Pennsylvania.”

“Given the science and our findings, we question how the secretary could spend the 12 million of taxpayer dollars,” he said in an interview. “He’s going to sue us to get it back. I’m not certain that a court will find in favor of the commonwealth.”

The public feud between Cabot and DEP was joined by a group of Susquehanna County residents and businesses called Enough, Already! last week, when the group bought an ad in the Mulligan’s Shopping Guide criticizing the waterline as a “terrible, big government decision” that is “expensive and unnecessary.”

The group asks residents to sign petitions, hosted at eight area businesses, telling PENNVEST to deny an application by DEP to fund the line.

Many of Cabot’s positions were echoed in the ad, which Cabot and members of Enough, Already! said the company did not place, write or pay for.

llegere@timesshamrock.com

eskrapits@citizensvoice.com

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Copyright:  The Times Tribune

Encana to finish drilling at Luzerne gas test well

By Elizabeth Skrapits (Staff Writer)
Published: October 18, 2010

Encana to finish drilling at Luzerne gas test well

Encana Oil & Gas USA Inc. is preparing to wrap up drilling operations soon at the company’s – and Luzerne County’s – second exploratory natural gas well.

According to an update from Encana, drilling is nearly complete at the Salansky site on Zosh Road in Lake Twp.

“We installed additional directional signs and turning points leading in and from this location to remind anyone working on behalf of Encana to follow the approved ingress and egress,” the company’s newsletter states.

The Lake Twp. well is Encana’s second. The first – not only for the company, but for Luzerne County – at the Buda property off Route 118 in Fairmount Twp., has already been drilled.

However, Encana has not scheduled completion, which includes hydraulic fracturing, for either well. Hydraulic fracturing involves blasting millions of gallons of water at high pressure deep underground to break up the shale rock and release the gas.

Due to the dry conditions over the summer, some natural gas companies, including Encana, had their sources of water put temporarily off-limits by the Susquehanna River Basin Commission, which regulates large water withdrawals from all sources within the river’s watershed. Those withdrawal bans were lifted by the commission after the rainy weather recently experienced by the region.

Another of Encana’s projects is starting to take shape. The company is building what it calls the Alimar natural gas processing facility at 44 Hartman Road in Fairmount Twp. This facility will process the natural gas and get it into the nearby Transco pipeline to be sent to market. Encana reports that Alimar site preparation is complete and foundation con­- struction has started.

The company is also planning more wells. Encana has received permission for 10 new wells from Luzerne County, and has state approval for half of them so far.

The state Department of Environmental Protection is still reviewing Encana’s plans for five new wells on the 4-P Realty property on Loyalville Road in Lake Twp. DEP has already granted Encana permits for four horizontal wells and one vertical well in Fairmount Twp., on the property of William Kent.

So far the only DEP violation Encana has committed has been administrative; the company failed to file the required production reports on time – even though the wells are not yet producing any gas. The company has since remedied the oversight and is now in compliance.

Contact the writer: eskrapits@citizensvoice.com

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Copyright:  The Scranton Times

Rail executive sees synergies between shale and trains

By Elizabeth Skrapits (Staff Writer)
Published: October 15, 2010

Rail service called key to gas industry

Sand, pipe consumed in quantity

PLAINS TWP. – If natural gas drilling in the Marcellus Shale is going to prevail, it needs rail.

That was the message from transportation officials Thursday night during a gathering at Mohegan Sun at Pocono Downs.

Todd Hunter, director of marketing for the North Shore Railroad, explained to members of the NEPA Logistics Club that gas companies are so far from their suppliers – and they are consuming commodities such as sand and pipe in such quantities – that rail service is going to be crucial.

“Without rail, shale fails,” he said, quoting Lycoming County transportation planner Mark Murawski.

Although Mr. Hunter lives and works in Williamsport, where natural gas development is exploding, he believes Northeast Pennsylvania, including Luzerne and Lackawanna counties, will eventually see increased activity, too.

“We just got started, folks,” Mr. Hunter said. “It’s a year or two away before this thing really gets rolling.”

Started in 1984, North Shore Railroad has six lines and 240 miles of track in northern and central Pennsylvania, 90 employees – it is hiring more – 24 locomotives of its own and has leased two more to keep up with demand, Mr. Hunter said.

The railway had experienced growth prior to the development of the Marcellus Shale, but “the rush started for us in August 2008,” he said.

At that time, the North Shore Railroad moved its first carload of frack sand. Hydraulic fracturing, or “fracking,” involves blasting millions of gallons of water thousands of feet underground to crack the shale and release the gas. Sand is added to the water to prop the cracks open, allowing the gas to flow more freely.

Since 2008, the North Shore has added five active frack sand terminals – three of which are being expanded – three active terminals for pipe, two gas field heavy haulers and a loader for brine water, Mr. Hunter said.

Further impacts on the North Shore include 13 new rail facilities in various stages of completion; rail service hours and days expanded to include evenings, weekends and holidays; and new track switches added – 17 in 2010 alone, he said.

With growth, however, there also will be challenges. Mr. Hunter noted that there are few rail-ready, properly zoned properties in the Marcellus drilling area. Other hurdles will include getting sufficient rail capacity, finding qualified employees and complaints about train horns and other issues during off-hours, he said.

As well, gas companies from other parts of the country, such as Texas and Oklahoma, may not realize that Pennsylvania’s mountainous terrain can make rail more desirable than roads for fast transit.

Mr. Hunter related how a man from one gas company told him, “You know, in Texas, 60 miles is 60 minutes. In Pennsylvania, 60 miles can be six hours.”

“We’ve come up with a saying in Williamsport: ‘This isn’t … Texas,’” Mr. Hunter said.

Besides the talk by Mr. Hunter, Lawrence Malski of Clarks Summit, president of Pennsylvania Northeast Regional Rail Authority, received the Harry Duckworth Award for Excellence in Logistics.

Mr. Malski mentioned the growth the authority has experienced since 1985: its network has increased to more than 100 miles and has induced 11 new industries to locate around the region. With the opportunities presented by the Marcellus Shale, he is sure it will expand further.

Regarding passenger service, Mr. Malski said the rail authority did not receive the “major chunk” of federal funding it was hoping for to establish a high-speed rail line from Scranton to metro New York, but noted that perseverance is key.

“Like everything, it’s ups and it’s downs,” he said, adding that it is a down time for government funding.

Contact the writer: eskrapits@citizensvoice.com

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Copyright:  The Scranton Times

Rendell sees some life on severance tax talks

By Robert Swift (Harrisburg Bureau Chief)
Published: October 14, 2010

HARRISBURG – Negotiations over a state severance tax on natural gas showed some signs of life Wednesday as Gov. Ed Rendell offered encouragement about a private round of leadership talks.

The governor said discussions will continue in coming days to find a compromise tax on natural gas produced by deep wells in the Marcellus Shale formation. He said the tax rate is still a sub-ject of debate, while informal agreement has been reached on specific language to exempt traditional shallow gas wells from the tax.

The governor’s tone was different than on Tuesday when he and legislative leaders of both chambers voiced recriminations over the failure to enact a severance tax by the Oct. 1 target date. Both House Democratic and Senate Republican leaders declared their intent to pass a tax under a provision of the state fiscal code enacted in July.

“Color me optimistic today,” said Mr. Rendell.

It appears that any passage of a severance tax, even if an agreement is struck, is still days or even weeks off.

Senate GOP leaders are cooler in their view of progress. But they have agreed to add session days in advance of the Nov. 2 election if they get a compromise bill from the House. House Democratic leaders have already indicated they will return to vote on a compromise bill.

Mr. Rendell said his compromise offer to phase in a severance tax rate starting at 3 percent and reaching 5 percent by the third year put the talks in gear. But Senate Republicans see things differently.

“It would still be one of the highest (severance) taxes in the nation,” said Senate President Pro Tempore Joseph Scarnati, R-25, Jefferson County. “Unless the governor is willing to negotiate that rate down, I don’t see any progress in getting things done.”

The GOP caucus wants to phase in the tax at 1.5 percent during the first five years’s of a well’s production before a 5 percent rate kicks in.

Mr. Rendell’s proposal would exempt up to 10 percent of some production and distribution costs from the tax, while Senate Republicans want to exempt 100 percent of production costs.

The governor said agreement has been reached on exempting so-called stripper wells producing less than 90,000 cubic feet of gas per day from the tax and progress made on exempting shallow well drillers from a self-reporting requirement.

“A major concern that has emerged in this debate is that small, independent producers that do not drill in the Marcellus Shale would be subject to the proposed tax or be forced to spend millions to prove they qualify for an exemption,” said Louis D’Amico, president of the Pennsylvania Independent Oil and Gas Association.

Contact the writer: rswift@timesshamrock.com

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Copyright:  The Scranton Times