Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

Competitive Tax Structure Imperative to Keep PA’s Economy, Workforce Ahead of Curve

As State House Readies Massive New Tax on Shale Gas Job Creators, Leaders Must Consider Host of Unintended Consequences

Canonsburg, Pa. – The responsible development of the Marcellus Shale’s clean-burning, homegrown natural gas reserves represents a historic opportunity to revitalize Pennsylvania’s economy by growing its workforce, all while strengthening our nation’s energy security and improving its environment.

In fact, the Reading Eagle took a deep look at these economic, environmental and national security benefits in a weekend story under the headline “Pennsylvania gas reserve could transform U.S. energy market.” But commonsense laws, policies and regulations that encourage this tightly-regulated, environmentally proven production are key to maximizing these benefits for each and every Pennsylvanian and ensuring this transformational opportunity is fully realized. And as Marcellus Shale production expands across the Commonwealth, so too do these much-needed, job-creating benefits.

But as the General Assembly’s legislative calendar quickly draws to a close before this fall’s elections, the Associated Press reports that “Pennsylvania’s House majority leader said Friday that he plans to hold a vote next week on legislation to impose a tax on Marcellus Shale natural gas extraction,“ noting that “Todd Eachus, D-Luzerne, said he will press for a minimum tax of 39 cents per thousand cubic feet.”

Unfortunately, this proposed new, massive tax – twice as large (and punitive) as West Virginia’s, which is currently the nation’s highest – would drive critical capital investment to other energy-producing states (and countries), dramatically undercutting efforts that are helping to lower energy costs for Pennsylvania consumers and creating jobs at a time when they’re most needed. Here’s a look at the taxes on the books in other shale gas-producing states, which are competing fiercely for the jobs and the critical capital investment needed to produce from the Marcellus:

It’s also important to note that the competing shale gas-producing states, including Texas, Arkansas and Louisiana, all include a capital recovery period in their tax structures, reflecting their commitment to attract investment and job creation – not discourage it – like the model under consideration in the House of Representatives.

In yesterday’s Harrisburg Patriot-News, Kathryn Klaber — president and executive director of the Marcellus Shale Coalition (MSC) — underscores how critical it is that our leaders in Harrisburg “get this right” in a column entitled “Misguided Marcellus Shale tax would cost PA”:

It’s no secret that our elected officials in Harrisburg are considering a new tax on shale gas production. Unfortunately, some don’t seem to understand that global competition for capital will react to the magnitude of the tax, evidenced by their consideration of a tax that would be the nation’s highest and least competitive.
Our focus must be on getting this opportunity right. To make certain that Pennsylvania’s economy and workforce remain ahead of the curve in the increasingly competitive global economy requires common-sense solutions that encourage capital investment in the commonwealth.

We have an opportunity to make Pennsylvania a national leader in natural gas production – a “first” that will afford thousands of Pennsylvanians a good-paying job, spur billions in economic development and provide America with the energy security it so desperately needs.

Our lawmakers should reject any massive, new tax proposal that puts Pennsylvania last.

Copyright: Marcelluscoalition.org

A gas reserves pooling law is about fairness

In the Sept. 22 editorial “Shale Worries: Loss of Property Rights Could Be the Next Threat,” the Post-Gazette mischaracterizes the concept of fair pooling, a policy that states have used wisely for generations to reduce above-ground surface activities, while maximizing responsible shale gas production and its host of benefits.

Pooling — which is on the books in every major energy-producing state for horizontal drilling, except Pennsylvania — ensures that mineral owners are compensated for the production of their natural gas.

Your readers, and your editorial writers, should understand that new technologies allow natural gas reserves to be reached thousands of feet below ground, and thousands of feet horizontally from a drilling pad. Unfortunately, under current law, a single landowner could deny the rights of a vast majority of landowners from producing their natural gas reserves. How fair is that?

In June 2009, the Post-Gazette editorialized in favor of a severance tax on shale gas production because “most states, including West Virginia, already” have such a tax, adding that “it is only fair that Pennsylvania share in the wealth.” By that logic, doesn’t Pennsylvania need a common-sense pooling statute, too, since other states (including West Virginia) have one?

The paper is right to characterize Pennsylvania’s natural gas industry as a source of “promising new jobs and income”; in fact, the responsible development of the state’s shale gas resources has created more than 44,000 jobs so far in the commonwealth, with many more in the coming months and years. A competitive tax structure, along with common-sense laws such as fair pooling, will only help build on this tremendous and historic opportunity.

DAVID CALLAHAN

Vice President

Marcellus Shale Coalition

– Link to original Letter to the Editor in Pittsburgh Post-Gazette:  http://www.post-gazette.com/pg/10270/1090577-110.stm

Copyright: Marcelluscoalition.org

Ridge: Philadelphia City Council’s Marcellus Hearings a Positive Educational Opportunity

Fmr. Governor Urges Forum to Remain Focused on Facts, Science, Potential Benefits of the Marcellus

Canonsburg, Pa. – Today, the Philadelphia City Council’s Environment and Transportation & Public Utilities panels will hold a joint hearing focused on the responsible development of the Marcellus Shale’s clean-burning, job-creating natural gas reserves, which – by year’s end – is projected to create nearly 88,000 jobs in Pennsylvania alone, according to Penn State University researchers. This tightly-regulated production is enabled by the 60-year old energy stimulation technology known as hydraulic fracturing, which has been safely used in more than 1.1 million wells nationwide without ever directly impacting groundwater.

Gov. Tom Ridge, a strategic advisor to the Marcellus Shale Coalition (MSC), issued the following statement regarding today’s hearing, where MSC president and executive director Kathryn Klaber is slated to provide testimony and expert analysis:

“Developing the Marcellus Shale’s abundant, job-creating natural gas resources in a world-class manner is the priority of every operator in this industry and an imperative we must get right. The Philadelphia City Council deserves much credit for examining this production and the benefits – thousands of jobs, a cleaner energy future, and more affordable supplies of energy for consumers – that are being realized for each and every Pennsylvanian.

“Education and an honest and civil debate about this process is absolutely critical, and the industry is committed to equipping Pennsylvanians with the facts about this tightly-regulated, environmentally sound development. Our hope, and expectation, is that today’s City Council meeting will provide a venue to help advance these shared goals.”

NOTE: A recent study by the non-profit STRONGER (State Review of Oil and Natural Gas Environmental Regulations) — a national board of state regulatory officials, industry experts and environmental stakeholders — underscored the fact that “hydraulic fracturing has been used in Pennsylvania since the 1950s. Since the 1980s, nearly all wells drilled in Pennsylvania have been fractured. Although thousands of wells have been fractured in Pennsylvania, DEP has not identified any instances where groundwater has been contaminated by hydraulic fracturing.” Click HERE to view this study on-line.

Copyright Marcellus Shale Coalition

National Panel: PA DEP Oversight of Key Marcellus Technology “Merits Special Recognition”

Findings highlight how Pa. continues to lead the way in safe, responsible use of hydraulic fracturing

Canonsburg, Pa. – Pennsylvania officials’ oversight and regulation of hydraulic fracturing, a critical technology for producing abundant reserves of natural gas from the Marcellus Shale, is among the strongest in the nation. That’s the message delivered by a national board of state regulatory officials, industry experts and environmental stakeholders in the form of a new report from the non-profit group STRONGER, the State Review of Oil and Natural Gas Environmental Regulations.

“Hydraulic fracturing has long been an important technology in producing energy here in Pennsylvania,” said Kathryn Klaber, president and executive director of the Marcellus Shale Coalition. “But at no point in its history has it been more important than right now. Thanks to the well-stimulation process, natural gas that would otherwise be too deep and too difficult to access suddenly isn’t – which means more energy, more jobs, and more revenue for state and local governments. But we know the process has to remain safe to remain effective. And so that’s why we continue to work with state regulators to ensure that our environment and groundwater are protected. The work done by DEP is incredibly important and done tremendously well, and this study confirms that.”

“The review team found that the Pennsylvania Department of Environmental Protection has a well-managed program,” said Lori Wrotenbery, the chair of the STRONGER review panel and a senior official with the Oklahoma Corporation Commission. “In fact, we believe several aspects of the Department of Environmental Protection and its operations merit special recognition.” A copy of STRONGER’s press release can be accessed here.

The Pennsylvania hydraulic fracturing regulatory program was singled out for its operations in the following areas: comprehensive water planning; baseline water sampling and water studies; prevention, preparedness and contingency planning; waste identification, tracking and reporting; and increasing staffing levels, according to the STRONGER statement.

NOTE: According to STRONGER, “hydraulic fracturing has been used in Pennsylvania since the 1950s. Since the 1980s, nearly all wells drilled in Pennsylvania have been fractured. Although thousands of wells have been fractured in Pennsylvania, DEP has not identified any instances where groundwater has been contaminated by hydraulic fracturing.” Click HERE to view this study on-line.

Misguided Marcellus Shale tax would cost Pennsylvania

Kathryn Z. Klaber
The Patriot-News
Sunday, September 26, 2010

  • Our focus must be on getting this opportunity right. To make certain that Pennsylvania’s economy and workforce remain ahead of the curve in the increasingly competitive global economy requires common-sense solutions that encourage capital investment in the commonwealth.”

Pennsylvania’s prosperity has long been a function of its abundant natural resources — and the American experience has long been improved by their use. The commonwealth’s coal helped us win two world wars. Its oil helped power progress and improve our standard of living. And its timber helped form the backbone of our modern society.

Today, we’re leading the way once again with manufacturing of alternative energy technology. And because of the Marcellus Shale and other shale plays nationwide, we’re positioning ourselves to leverage the power of clean energy into thousands of jobs and billions in revenue for Pennsylvanians.

Of course, geologists have known about the Marcellus Shale for a long time — it’s 390 million years old, after all. But thanks to the combination of age-old techniques and new innovations along the way, natural gas reserves previously considered too deep and difficult to access suddenly are not. And considering energy security concerns and the difficult economic times in which we find ourselves today, these discoveries couldn’t have come at a better time.

As of this writing, Pennsylvania’s unemployment rate is still near double digits, and more than 400,000 residents are still out of a job. A recent Patriot-News article reports that “The economic impact of the drilling industry — particularly in rural areas of the state — is indisputable,” noting that the facts are “demonstrable.”

In an otherwise bleak economy, Marcellus Shale development will create nearly 90,000 jobs in Pennsylvania by the end of this year, according to researchers at Penn State, with nearly 211,000 jobs projected through the next decade.

And these aren’t just drilling rig jobs — railroads, engineers, building contractors, supply stores, diners, hotels, steel manufacturers and several other industries and small and medium-size businesses involved in our growing and robust supply chain are all experiencing a significant expansion of growth directly tied to Marcellus production. We call it the “Marcellus Multiplier.”

Our work also is generating billions of dollars in tax revenues and lease payments to Pennsylvania landowners. During the next year, continued Marcellus development will generate more than $1 billion in state and local tax revenues. In 2008 alone, our industry paid more than $1.8 billion in lease and bonus payments to Pennsylvania landowners. But there’s much more to be done, more jobs to be created and more stable supplies of homegrown, clean-burning energy to deliver to Pennsylvania consumers.

Yet as our production expands in Pennsylvania, the competition for the critical capital needed to produce a Marcellus well — each requires about $4 million — grows stronger and fiercer by the day. Other shale gas-producing states — particularly Texas, Oklahoma, Louisiana and Arkansas — want those investments, and those jobs, just as much as we do.

But we’re not just competing with other states for these opportunities. Poland, China, Canada and other foreign nations are working aggressively to secure the capital needed to expand their energy production, too. There’s a reason officials at the Kremlin read news clips from the Marcellus region every morning — and it’s not because they’re looking for coupons.

It’s no secret that our elected officials in Harrisburg are considering a new tax on shale gas production. Unfortunately, some don’t seem to understand that global competition for capital will react to the magnitude of the tax, evidenced by their consideration of a tax that would be the nation’s highest and least competitive.

In fact, it would be higher than West Virginia’s, which stands as one of the least competitive in the nation. And, as of last month, there were 16 horizontal rigs operating in West Virginia’s Marcellus and more than 60 here in Pennsylvania. That’s not a coincidence.

These far-reaching decisions — which will impact the commonwealth’s economy and ability to compete for decades to come — should not be made in isolation to fill a hole in the state budget; that’s the wrong approach and one that will carry several negative unintended economic consequences.

Our focus must be on getting this opportunity right. To make certain that Pennsylvania’s economy and workforce remain ahead of the curve in the increasingly competitive global economy requires common-sense solutions that encourage capital investment in the commonwealth.

Pennsylvania needs strong regulatory and competitive tax frameworks that encourage capital investment and job creation — not a massive, misguided and unprecedented tax that would drive critical capital and jobs to other energy-producing states and countries. This would dramatically undercut efforts that are helping to lower energy costs for Pennsylvania consumers, increase energy security for Americans and bring cleaner fuels to our environment.

As an industry, we are committed — each and every day — to ensuring that this historic opportunity is realized in ways that benefit each and every Pennsylvanian. Our hope, and expectation, is that our government also will work to ensure that this opportunity is realized for decades to come.

KATHRYN KLABER is the president and executive director of the Canonsburg-basedMarcellus Shale Coalition.

Copyright: Marcelluscoalition.org

Pro-drilling group welcomes gas companies

By Elizabeth Skrapits (Staff Writer)
Published: September 27, 2010

Yellow signs welcoming Encana Oil & Gas USA Inc., the first natural gas company to start drilling in Luzerne County, are starting to pop up around the Back Mountain.

They’re the handiwork of a newly formed pro-gas group, Citizens for Cleaner Energy, which consists of people who have leased their land – or who want to – and who feel it’s time to speak out in favor of what they believe will be the region’s most important resource.

Unlike natural gas drilling opponents, who have been highly visible and vocal, natural gas drilling proponents have been largely silent.

“I understand other people see this differently, and that’s fine, that’s the American process,” Citizens for Cleaner Energy President Gary Ide said. “But if we sit back and say nothing, I think everyone assumes we have nothing to say, and we do.”

The signs are symbolic, according to Ide: they are meant to welcome Encana specifically, because many of the group’s members have leases with the company and they have heard good things about it, but they’re also meant to welcome responsible natural gas exploration in general, which is one of the group’s goals. The others are to protect personal property rights and educate people about natural gas and the drilling process.

In addition to Ide, the group’s organizers are Russ and Mary Lansberry, Larry Lansberry and Gene Janiczek, whose properties in Lehman Township were to be the site of a vertical natural gas well until Encana withdrew its application to drill.

At later meetings the group decided on a name and appointed officers: Ide as president, Mary Lansberry as vice president, Barbara Mikielski as secretary and Janet McCarroll as treasurer.

But the group’s first meeting on Aug. 13 in the Lehman Township fire hall was to determine if others had similar concerns, according to Ide.

They did: “It was clear that all were frustrated about how they were being portrayed by those who oppose gas exploration,” he said.

However, Ide said the group was not formed to counter anti-drilling groups such as the Gas Drilling Awareness Coalition. Members of Citizens for Cleaner Energy are also sensitive to environmental issues, he said.

“People have a reason to be concerned. This is not oxygen we’re trying to find, it is a combustible substance and it is potentially dangerous,” Ide said. “That’s why many people who have signed (leases) signed with Encana – there seems to be some real thought about how they are going to drill and produce. We think there’s a responsible way of doing this and a safe way of doing this.”

Members of Citizens for Cleaner Energy want people to know a lot of thought goes into making the decision to lease, Ide said.

“Of course economic reasons are why we’re all doing this,” he said. “But I think the considerations of all the things you might think we would worry about are there.”

Members also want to help people learn about all the components of natural gas drilling – the main problem he sees is that people are not familiar with the entire process.

“My biggest beef is probably the people who are just flat-out opposed because something might go wrong, and in the case of Dimock, did go wrong,” Ide said, referring to the Susquehanna County township where some residents are experiencing water well contamination. “I think it’s OK to be concerned and make sure they’re doing the best job possible. I don’t think it’s OK to frighten needlessly.”

Things can go wrong, he acknowledges. But, he noted, “The opportunity for economic growth for the entire area is just a little more powerful than the potential for these huge catastrophic environmental messes.”

Much needs to be proven to an unsure public, Ide said.

“I want to hopefully engage people who think they have nothing, that they have something to gain,” he said. “It’s not just good for a handful of people. … I think we’re all going to benefit.”

Some people think just because they don’t have land they won’t get anything, but that’s not true, Ide said.

“I don’t think there’s a business that could be brought in that can stimulate the economy more than this can. I can say that, but I think in time that will be proved.”

For the past six weeks Ide has been talking to as many people as possible, to learn what they had to say, find out what they were frustrated about, make sure everyone was on the same page.

So far Citizens for Cleaner Energy has about 120 members, Ide said. There are no dues or membership fees, but people do make voluntary contributions to cover costs.

Lehman Township resident Carl Kern, who does trucking for natural gas companies, was the group’s first speaker. His trucks are leased to Mountain Energy, which provides water for Chesapeake Appalachia LLC.

Ide said Kern explained how stringent the rules are for collecting and transporting water, and he made an impact on the group “by saying these are not fly-by-night outfits.”

“Most of the companies are good companies. They’re honestly trying to do things the right way,” he said.

Kern said he talked about what he is seeing in the field and how the natural gas industry is producing jobs.

He said he is just as concerned as anyone else that the gas companies do things right, but said people need to give the state some credit for enforcing regulations.

“I understand where some of these people are coming from, but everybody has to sit down and weigh it all out. I think in the long run, the pluses are going to outweigh the negatives,” Kern said.

He supports Citizens for Cleaner Energy and believes more people will join the group.

“I’m right with them. I’m going to fight as hard as I can to make this work,” Kern said.

View article here.

Copyright:  The Citizens Voice

eskrapits@citizensvoice.com, 570-821-2072

Drilling at second Lake Twp. well begins

By Elizabeth Skrapits (Staff Writer)
Published: September 24, 2010

Encana Oil & Gas USA Inc. recently started drilling on Zosh Road in Lake Township, the second of its two exploratory natural gas wells in Luzerne County, after wrapping up drilling at its first.

Encana Community Relations Advisor Wendy Wiedenbeck said via e-mail that “drilling is under way at the Salansky location and activity is going as expected.” She estimates the drilling activity will last for about 30 days.

Prior to starting work in Lake Township, Encana finished drilling operations at its first exploratory site, the Buda well behind the Ricketts Glen Hotel on Route 118 in Fairmount Township. Wiedenbeck said the well was drilled 7,000 feet deep and 4,400 feet horizontally.

Since April, the state Department of Environmental Protection has made eight site inspections at the Buda well, and found no violations. Additionally, DEP has issued permits for Encana’s two Kent North horizontal wells, which are planned just down Route 118 from the Buda well site in Fairmount Township. Encana is still awaiting DEP permits for three more wells in Fairmount Township and five more in Lake Township.

A schedule has not been set to complete the first two wells, including hydraulic fracturing to break up the shale and release the gas, according to Wiedenbeck.

She stated it is “just a matter of all the business needs aligning at the same time: specialty contractor availability, equipment availability and water resources. We anticipated that completions activities wouldn’t take place immediately following drilling.

Exploratory projects are by nature limited in scope and as such needed services and supplies compete with already full schedules.”

Wiedenbeck said Encana anticipates completing both wells either later this year or early 2011.

A potential headache for natural gas companies, including Encana, is that dry conditions are leading to a growing scarcity of the large quantities of water needed for hydraulic fracturing.

Last week, DEP declared most of Pennsylvania’s counties to be either in a state of drought watch or the more severe drought warning.

The Susquehanna River Basin Commission, which monitors water levels and controls large-scale water withdrawals, has temporarily shut down some of Encana’s sources in Wyoming County.

“The drought does impact our ability to access water,” Wiedenbeck confirmed.

Drilling starts in Benton

Another exploratory natural gas well is under way in Benton, in neighboring Columbia County.

Williams Production Appalachia LLC has drilled other wells in Pennsylvania’s Marcellus Shale, but this is the company’s first in Columbia County, Williams Spokeswoman Susan Oliver said.

The drill site is part of acreage originally leased to Citrus Energy Corp. In April, Citrus sold leases for 10,000 acres in Columbia County and several hundred acres’ worth of leases in Fairmount Township to Williams.

Williams representatives met with about 250 community members in the Benton High School on Tuesday to talk about the company and its plans. She said questions ranged from the economic development effects of natural gas drilling to what hydraulic fracturing is.

“We’re very open to meeting with landowner groups and other organizations,” Oliver said.

eskrapits@citizensvoice.com, 570-821-2072

View article here.

Copyright:  The Citizens Voice

Casey wary of feds’ oversight of pipelines in Pa.

Posted:  September 23

Matt Hughes mhughes@timesleader.com

U.S. Sen. Robert P. Casey stated in a letter Wednesday to a federal agency that he has “grave concerns” about federal oversight of interstate pipelines criss-crossing Pennsylvania.

In his letter to U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Administrator Cynthia Quarterman, Casey, D-Scranton, requests an assessment of the resources and programs in place for the inspection of the more than 7,500 miles of interstate pipelines in Pennsylvania. He also requests that the USDOT consider establishing a pipeline inspection training and certification center in the state.

“I have grave concerns that the Pipeline and Hazardous Materials Safety Administration has not allocated enough resources to inspect and maintain pipelines properly and does not have adequate training facilities,” Casey wrote.

Casey also referenced the Sept. 10 explosion of a California natural gas pipeline that killed seven and set a San Francisco suburb alight and the July oil pipeline spill that polluted two rivers near Kalamazoo, Mich., as reminders “of just how vulnerable our national system of gas and oil pipelines is and how critical the federal inspection of this system is to protecting American lives and property.”

Although he said he is most immediately concerned with safety, Casey also declares that any pipeline accident could have serious ramifications on the delivery of heating fuel to Pennsylvanians and on industry.

“A pipeline disruption would have severe and far-reaching impacts on local communities beyond the loss of life and property,” Casey wrote.

The senator requested that Quarterman provide him with an assessment of the adequacy of the administration’s staff and resources to inspect pipelines in the state, and, if such resources are inadequate, to provide an assessment of what additional resources are required. Casey also asks Quarterman to consider establishing a training and certification center in Pennsylvania, as, in his understanding, the nearest such center is located in Oklahoma City.

Pipeline and Hazardous Materials Safety Administration spokesman Damon Hill said Wednesday the administration had not yet officially received Casey’s letter and therefore could not comment.

View article here.

Copyright: The Times Leader

UGI, Citrus sign agreement on productive wells

By Elizabeth Skrapits (Staff Writer)
Published: September 22, 2010

The Marcellus Shale wells Citrus Energy Corp. is drilling for Procter & Gamble near its Wyoming County plant are so productive there’s enough natural gas left over to send to market.

UGI Energy Services Inc., the midstream and energy marketing subsidiary of UGI Corp., forged an agreement with Citrus to use the pipeline that once brought gas to the Procter & Gamble plant to instead move the extra gas out of the plant and into the Tennessee interstate gas pipeline in Susquehanna County.

“This gas we’re talking about here is that which is over and above the requirements of Procter & Gamble at their Mehoopany plant,” said Peter Terranova, UGI vice president of midstream assets and services.

UGI Energy Services plans to acquire and construct facilities to handle up to 120,000 dekatherms – 120 billion British thermal units – of gas per day. Service could begin as early as next spring.

“We’re happy about them (UGI) becoming a transporter-gatherer,” said Steve Myers, Director of Land and Legal Affairs for Citrus. “We have acquired quite a bit of capacity on that line. That was the game plan from Day One when we first walked in the door and started talking to Procter & Gamble. That was how we saw this thing developing.”

Procter & Gamble spokesman Alex Fried said UGI had been providing gas to the company for 45 years.

“They connect to the Tennessee Pipeline in Auburn Center in Susquehanna County about eight miles north of us. From there it can flow to a number of other customers, both residential and commercial,” he said. “UGI gets to re-use a good existing pipeline, and Citrus gets to continue developing wells within the Wyoming County region and not have to stop once they hit P&G’s needs. This provides a much bigger market to the area.”

Last October, Citrus started drilling under an agreement that gives Procter & Gamble minority ownership of the wells with an option to buy them. So far Citrus has drilled six wells for the company, not all of which are producing because they are in various stages of preparation, Myers said.

But at least one has been exceeding expectations. Well production data recently released by the Department of Environmental Protection shows that Citrus’ PG2-1H well for Procter & Gamble ranks fifth in the state, with an average daily production of more than 10.04 million cubic feet of gas each day for the 22 days of the fiscal year reported.

Fried noted that it will take until the next report to determine exactly how the well is producing, since gas flows tend to be high at the start and can decline.

Anything above what Procter & Gamble consumes would be considered “stranded gas” because there is no way to get it to market, Myers said. It is expensive to lay pipeline – and why duplicate a line that already exists, and that has become valueless since it is no longer supplying gas to Procter & Gamble.

“Ostensibly it should help the (UGI) ratepayers in that this will be a piece of pipeline that produces income,” Myers said. “Otherwise it’s just a piece of steel in the ground because nobody’s paying to move gas through it.”

Fried noted, “It’s very logical for UGI to make existing infrastructure available to Citrus. It’s a win-win all around.”

 Terranova said the project is the first UGI Energy Services is undertaking to “provide Marcellus producers multiple avenues to serve high value markets efficiently and bring plentiful, competitively priced, locally produced natural gas to consumers.”

He said he is glad to see how well everything is working out.

“We’ve worked very closely with Procter & Gamble and Citrus to make this happen,” Terranova said.

eskrapits@citizensvoice.com, 570-821-2072

View article here.

Copyright:  The Citizens Voice

Oversized gas trucks a concern in Lehman

Posted: September 21

CAMILLE FIOTI Times Leader CorrespondentLEHMAN TWP. — Issues involving the oversized gas drilling company trucks traveling through the township were discussed at Monday’s board of supervisors meeting. Tony Rutchauskas said he read a recent local news article about gas trucks that were too high to clear utility wires hanging over the township roadways. He said the wires had to be moved by hand for the trucks to pass through.

 “They failed to study the route,” Rutchauskas said of the gas company.

 Susan Rutchauskas asked if the township is responsible for maintaining the wires. Supervisor Dave Sutton said the utility that owns the wires is responsible for them.

 Joe Rutchauskas voiced concerns about a recent incident involving a large flat-bed truck owned by EnCana Gas Co. that was too large to navigate through the intersection of Ide and Meeker roads, thus blocking a school bus. He asked the board if someone from the gas company could direct traffic when its trucks need help clearing a turn.

 Supervisor Doug Ide said EnCana officials contacted James McGovern, superintendent of the Lake-Lehman School District, as soon as the incident occurred. Ide said he would request EnCana to provide its own traffic control personnel for the future.

 Catherine Tasco asked if the district has a system to notify parents in the event of a school bus delay. Supervisor Ray Iwanoski said he wasn’t sure what system the district used, but that school officials were involved with the traffic planning regarding gas company traffic routes.

 View article here.

 Copyright:  The Times Leader