Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

Emergency crews set for Pa. wells

Pa. DEP: Bradford County-based unit can get to incident anywhere within 5 hours.

Experts trained to deal with catastrophic events at natural gas wells now will be stationed 24 hours a day, seven days a week in Pennsylvania.

Recent high-profile accidents at natural gas wells in Pennsylvania prompted the Department of Environmental Protection to arrange emergency response services with a leading company that is opening a new operation in the state, DEP Secretary John Hanger announced Monday.

CUDD Well Control will locate a new facility in Canton Township, Bradford County, which means a highly specialized emergency response crew will be located about five hours from any natural gas well in the state, according to a DEP press release.

By comparison, it took 16 hours for out-of-state crews to address a June 3 blowout in Clearfield County and 11 hours to extinguish a July 23 fire in Allegheny County. In both cases, well operators had to wait for response crews to fly in from Texas.

“Recent accidents in our state have shown that the natural gas industry lacks the training and equipment to respond quickly to accidents. This creates a tremendous danger to the public and the environment. When an accident occurs, we cannot wait 10 or more hours for a crew to fly in from halfway across the country,” said Hanger, adding that CUDD’s presence in the state will ensure fast, expert response to emergencies at well sites.

Dr. Tom Jiunta, founder of the Luzerne County-based Gas Drilling Awareness Coalition, said that although he is happy to hear that expert emergency crews will be located closer to local gas wells, DEP’s response is “an after-the-fact remedy.”

Jiunta said he asked officials at a local zoning hearing how long it would take expert emergency responders to get to a well blow-out in Northeastern Pennsylvania and no one could provide an answer.

“It’s a double-edged sword. It’s good that we’ll have specialty crew in the state, but at the same time, it’s scary that we’re inviting an industrial process that needs to have a specialty response team nearby,” Jiunta said.

CUDD’s new operation will give Pennsylvania 16 specially trained well-control responders and a senior well-control responder in the state at all times. Senior responders can provide an initial assessment of emergency situations, advise local first responders and coordinate emergency response measures with other well control specialists.

Equipment at CUDD’s new facility will include: a 2,000-gallon-per-minute pump; heat shields to protect responders as they work near a well fire; pneumatic cutting devices that clamp onto damaged pipe to allow responders to cut it at a safe distance; and a “hot tap,” which will drill a hole into damaged pipe to either relieve the pressure or allow responders to pump material into the well to kill it.

The state will use CUDD’s services as needed through emergency contracts on a case-by-case basis, so there is no cost to taxpayers unless CUDD personnel are mobilized. If that happens, the state will seek to recoup the costs from the well operator.

Hanger said he expects to have a contract with a well-control specialty company through a competitive bid process by Oct. 15.

He said natural gas well emergencies pose a considerable cost to local emergency crews, but enacting a severance tax would offset the additional expenses.

“When accidents happen, the natural gas industry should be bearing those costs, not the public or our fire, EMT and police departments. That’s one of the main reasons we need a severance tax; so taxpayers aren’t shouldering this financial burden and emergency response crews have the funds they need to respond appropriately, as well as get proper training and equipment,” he said.

While finalizing the 2010-11 state budget, lawmakers agreed to vote on a severance tax by Oct. 1 with an effective date of Jan. 1, 2011.

Copyright The Times Leader

Send Question/Comment to the Publisher

Settlement sought over gas firm’s utility status

By Robert Swift (Harrisburg Bureau Chief)
Published: August 25, 2010

HARRISBURG – Opposing parties in a high-profile bid by a gas-pipeline company to gain public utility status are attempting to reach a settlement.

The state Public Utility Commission has suspended hearings into the application by Laser Northeast Gathering LLC to become a regulated utility because of the effort to reach a settlement by Sept. 10, agency spokeswoman Jennifer Kocher said Tuesday.

Laser Northeast plans to build a 30-mile natural gas pipeline from Marcellus Shale exploration areas in Susquehanna County into southern New York, where it will connect to a larger interstate pipeline. The company has a field office in New Milford.

The Silver Lake Association, several individuals and the company have agreed to seek a settlement, Kocher said. Not all parties who filed intervention requests in the case, including some energy firms, have indicated they support a settlement, however.

The pipeline case has drawn attention because of the prospect that Laser Northeast, as a public utility, could exercise the power of eminent domain to acquire private property for the pipeline. Tom Karam, a Laser Northeast principal and Scranton native, has said the company wants to avoid land condemnation.

Under state law, a utility can exercise eminent domain, but a Common Pleas Court judge in a respective county would have to grant that power, Kocher said.

PUC Administrative Law Judge Susan Colwell held a public hearing on the case in June at Great Bend.

If a settlement is reached, it would undergo a review process with a decision by PUC near year’s end.

rswift@timesshamrock.com

View article here.

Copyright:  Citizens Voice

The Hole Truth and Nothing But

Cash-strapped Albany enforces obscure tax targeting bagel shops in New York – maybe it’s time to take another look at the Marcellus?

Few states have been hit harder by the nation’s protracted economic downturn than New York, but here’s how you know the budget situation up there has gone from serious to critical: Starting this month, the state will assess a separate tax on the purchase of bagelsthat have been sliced.

Here’s how it will work: You walk into Louie Thompson’s Terrace Bagel shop in Brooklyn, N.Y. and ask for a whole blueberry bagel. No tax assessed there. But ask Louie to run his Ginsu through it, or possibly even dare to consume that bagel within the confines of his store, and in the eyes of Albany, you’ve just been issued a “prepared food” item – with the appropriate levy attached. Think we’re kidding around? Here’s how the Wall Street Journal addressed the issue in the paper this week:

State tax officials, under orders from cash-strapped Albany … have begun to enforce one of the more obscure distinctions within the state’s sales tax law. In New York, the sale of whole bagels isn’t subject to sales tax. But the tax does apply to “sliced or prepared bagels (with cream cheese or other toppings),” according to the state Department of Taxation and Finance. And if the bagel is eaten in the store, even if it’s never been touched by a knife, it’s also taxed.

So how much are we talking here? According to Kenneth Greene, who owns several Bruegger’s Bagel franchises throughout the state, the levy amounts to about eight cents a bagel. Doesn’t seem like much — until you consider that more than 200 million bagels are bought and sold in America each year.

Just for argument’s sake, let’s assume New York accounts for 20 percent of that total. At eight cents a pop, you arrive at a collection figure of $3.2 million a year. Nothing to sneeze at, for sure. But not exactly in the same league as the potential revenue that could be generated through the responsible development of the Marcellus Shale in New York. For those numbers, let’s take a look at a recent report on the subject commissioned by API and produced by professor and economist Tim Considine:

Total gross output in New York would increase $3 billion in 2015 if Marcellus development would be allowed. Value added impacts displayed in Table 11 are $1.7 billion. … Marcellus development would be quite significant to the regional economy of upstate New York. Employment would increase by more than 15,000 in 2015. Finally, local and state tax revenues would increase more than $214 million in 2010 dollars.

You read that right: Even applying the most conservative estimates related to the number of Marcellus wells developed in the Southern Tier, we’re still talking about the potential to generate more than $200 million a year for state and local governments in New York. Good news for sliced-bagel lovers across the state, potentially – but even better news for the nearly 900,000 folks currently on the state’s unemployment rolls, right?

Unfortunately, the prospect of leveraging the enormous potential of the Mighty Marcellus into jobs, revenue and opportunity for New York has yet to be fully appreciated by those charged with representing the interests of New Yorkers in the state Senate, with that body earlier this summer approving a bill that seeks to ban the use of a commonly used energy technology known as hydraulic fracturing all across the state – whether it’s deployed in the Marcellus or not. Their reasoning? Hydraulic fracturing is new, and untested, and unregulated. Never mind that it’s been used safely in New York for more than a half-century. Or that the state’s DEC has aggressively regulated and overseen the practice almost before we even had a name for it.

Now comes word that the same folks who promoted that legislation in Albany are actively enlisting small business owners in New York to carry forth that same campaign of misinformation on their behalf. Their latest victim? None other than our friend Louie Thompson from the Terrace Bagel shop in Brooklyn. In a video posted recently on a website maintained by Riverkeeper, Louie explains the process of making his no-doubt-delectable rolls-with-a-hole. But it’s the little tag line he attaches to the end that got our attention:

Gas drilling – or fracking – in New York will ruin our water and our bagels. So go to DontFrackNewYork.com [sic.] and tell Albany: ‘Don’t frack with New York’s water.’

All of which begs a simple question: Would Louie take the same position on the Marcellus if he knew that hydraulic fracturing isn’t a “gas drilling” process (fracture stimulation occurs after the drilling procedure is complete)? Would he be more supportive if he knew that fracturing operations have been going on safely and responsibly in New York for decades? Could he be convinced to reevaluate his stance if he knew that prospective Marcellus exploration isn’t slated to take place anywhere near the borough of Brooklyn? What if we told him the sliced-bagel tax could go the way of the dodo if even a fraction of estimated Marcellus-related revenue is generated by producers, and dutifully collected by Albany?

We don’t know Louie, so we don’t know the answer to that question. But here’s what we do know: The opportunities the Marcellus Shale present to New York are historic – especially at a time with 900,000 residents unemployed, and a $9 billion hole in the state budget. We also know it’s going to take decades of hard work to fully make good on those opportunities, as well as a renewed commitment to doing this work in the best, safest, cleanest and most efficient manner possible. Sound regulation is a fundamental part of that equation — always has been, always will be. Now it’s time for the facts to make their way to the scene as well. Preferably with a little cream cheese in tow.

Copyright: Marcelluscoalition.org

Court ruling affirms communities’ ability to limit natural gas drilling

By Elizabeth Skrapits (Staff Writer)
Published: August 23, 2010

DALLAS TWP. – Would local officials be powerless to stop a natural gas company from drilling a natural gas well in the middle of a housing development?

Not according to a new state court ruling, which affirms the right of municipal and county officials to limit natural gas drilling to certain districts, such as agricultural, mining or manufacturing, and out of residential neighborhoods.

“Gas drilling is here to stay, and it affects the Back Mountain region very extensively.” Attorney Jeffrey Malak told members of the Back Mountain Community Partnership as he outlined the new court decision.

Thousands of acres in the Back Mountain have been leased by natural gas companies, and Encana Oil & Gas USA Inc. is drilling the second of two exploratory natural gas wells in Lake Township.

Traditionally, local officials have limited say when it comes to natural gas drilling. Technical aspects, such as what kind of materials to use and how the well is drilled, are governed by the state Oil and Gas Act. But local officials are gaining more and more say in where wells can be drilled.

Two previous cases, Huntley & Huntley v. Oakmont Borough and Range Resources v. Salem Township (Westmoreland County) set precedents allowing local officials some leeway in regulating where natural gas companies can drill.

A third, Penneco Oil Co. Inc. v. the County of Fayette, decided in Commonwealth Court on July 22, determined the state Oil & Gas Act does not trump local zoning ordinances, and that local officials can take steps to protect the residential character of neighborhoods.

In the case, Penneco, Range Resources Appalachia LLC and the Independent Oil and Gas Association of Pennsylvania took Fayette County Office of Planning, Zoning and Community Development to court, saying they did not have to follow the county’s zoning ordinance because the state Oil and Gas Act made it invalid. The court ruled in favor of the county.

“This opens up the floodgates and says municipal zoning is not pre-empted,” Malak said.

The Penneco case allows that gas wells cannot be located within the flight path of an airport runway; that they must be at least 200 feet from a residential dwelling; and that officials can require fencing and shrubs around the well site. It also allows zoning hearing boards to impose any other provisions to protect the health, safety and welfare of residents.

Whether the Penneco case will be appealed is anybody’s guess, but it’s the law unless the state Supreme Court changes it, Malak said.

Dallas Borough already has some of the provisions in its zoning ordinance, Malak said. In Jackson Township, where he also serves as solicitor, the supervisors will put similar provisions in the zoning ordinance when it is drafted over the next couple of months, Malak said.

Dallas Township Supervisor Chairman Phil Walter asked Malak if there was a way to protect a municipality against fly-by-night operators who will leave when something goes wrong.

The case does allow for bonds, even large ones, to be put in place to protect the health, safety and welfare of residents, Malak said.

Kingston Township Supervisor Jeffrey Box asked if local officials can require a land development plan from natural gas companies. Malak said they could, and they can require special exceptions, meaning there has to be a hearing in front of the zoning hearing board to grant permission and to impose any standard planning and zoning fees.

But, he said, there are still aspects of natural gas drilling that will have to be decided in court, such as whether there can be restrictions on hours drillers can operate and whether they can be barred from using roads at certain times.

eskrapits@citizensvoice.com , 570-821-2072

View article here.

Copyright:  The Citizens Voice

PSU to start natural gas education, research center

Penn State will create the Marcellus Center for Outreach and Research, an education and research center to focus on the growing natural gas industry.

School President Graham Spanier said Wednesday that along with having the faculty who were the first to call attention to the Marcellus Shale natural gas reserve, Penn State has 500 faculty and researchers who do work related to energy and the environment.

Michael Arthur, professor of geosciences in the College of Earth and Mineral Sciences, and Tom Murphy, Cooperative Extension educator, will be co-directors of the new center. A hydrogeologist has been hired to handle outreach related to water availability and protection.

Spanier said the center does not yet have outside funding, but the university hopes to get financial support from the state and the industry.

Copyright The Time Leader

Send Question/Comment to the Publisher

Officials explain Marcellus challenges, opportunities

Sen. Bob Casey wants fracking disclosure exemptions repealed for oil, gas industry.

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer

SCRANTON – U.S. Sen. Robert Casey returned to his hometown Thursday to extol the economic benefits of a present-day “gas rush” and, recalling the devastating effects of coal mining on the environment, called for more safeguards and federal oversight of natural gas drilling to prevent a “repeat of the mistakes of the past.”

The Democrat from Scranton joined five other panelists at a forum convened at Marywood University to discuss the opportunities and challenges presented by development of the Marcellus Shale.

Noting that nearly 600,000 Pennsylvanians are unemployed and 70 percent of the workers employed at Marcellus Shale drilling sites are not state residents, Casey said his Marcellus Shale On-the-Job Training Act would fund training programs to help ensure gas drilling jobs go to Pennsylvanians instead of out-of-state workers.

Recalling a well blowout in Clearfield County in June, Casey said a proper emergency response plan was not in place. His Faster Action Safety Team Emergency Response Act would authorize additional regulations to enhance response procedures as gas and oil wells, he said.

His Fracturing Responsibility and Awareness of Chemicals Act, Casey said, would repeal some exemptions for the oil and gas industry and require disclosure of all chemicals used in hydraulic fracturing – the process of injecting millions of gallons of water with sand and chemicals added into a well bore to stimulate the release of natural gas.

“Pennsylvanians have a right to know what is being injected in the ground. … The intent is not to stop hydraulic fracturing. This is about disclosure,” Casey said, noting that the ingredients of Coke and Pepsi are listed on cans and bottles without revealing “their secret formula.”

“If the chemicals … used in the hydraulic fracturing process are not harmful and cannot compromise health and safety or contaminate drinking water, … why can’t we shine the light of disclosure on that process?” Casey said to applause from the audience.

Boosting Pa. economy

Forum panelist Kathryn Klaber, president and executive director of the Marcellus Shale Coalition, detailed how the gas drilling industry is creating jobs and boosting local economies, making special note of the steel and rail industries in the state.

She also addressed how the industry is working to safeguard public health and the environment and noted that the industry supported the state Department of Environmental Protection significant increase of permit fees to fund the hire of more oil and gas inspectors.

Klaber said the industry is increasing well wastewater recycling; already more than 60 percent is being recycled.

And, she said, the sharing of information between energy companies about best practices is increasing and hydraulic fracturing companies already have a listing of all chemicals used in material safety data sheets at drilling sites.

Timothy Kelsey, a professor of agricultural economics at Penn State University, spoke about the potential economic benefits of Marcellus Shale exploration.

He said a natural gas well can produce royalty income of $2.25 million to $2.8 million over the life of a well but noted that local investment decreases over time as well production declines.

“The lion’s share of the royalty income from each well will occur in the first seven years,” Kelsey said. “So when the drilling is going on, it’s critical that the community think about future.”

Kelsey said research shows that communities with a lack of trust in leadership are no better off following an energy boom than they were before, but those that have strong local leadership and “entrepreneurial support systems” in place fare better.

“Community focus needs to be on the future after the boom, not just the present. Use the Marcellus as a means to improve the economy, social organization … infrastructure. It is not an end in itself,” he said.

State park drilling

John Quigley, secretary of the state Department of Conservation and Natural Resources, said more than half of the commonwealth’s state parks are potential natural gas drill sites.

Of the 28 million acres in the state, Quigley said at least 7 million acres are leased for land drilling. The state House passed a resolution putting a moratorium on new large-scale leasing, but the bill has not come up in the Senate.

“We need to draw the line and say enough is enough,” Quigley said.

Quigley said there are currently 10 gas-producing wells on state forestland. Over the next 10 years, that number likely will increase to 6,000. “Add to that 1,000 miles of roadway, pipeline, gathering line … it’s very clear that the environmental impacts will be enormous,” he said.

Quigley also promoted a severance tax on natural gas extraction proposed by Gov. Ed Rendell.

“This is low-cost, high-profit gas any way you slice it. … And facing the imposition of a severance tax, this industry’s not going anywhere. It’s the most productive play in the world. This industry is not going to be taxed out of the state by the very, very reasonable proposal the governor has put in place,” Quigley said.

Jennifer Hoffman, manager of the Susquehanna River Basin Commission’s Monitoring and Assessment Program, explained how the commission is regulating water use by the drilling industry, assuring the audience that commission regulations ensure waterways will not be negatively impacted by industry water withdrawals.

She also detailed a water-monitoring network in place in drilling areas throughout the basin.

Jeanne VanBriessen, director of the Center for Water Quality in Urban Environmental Systems at Carnegie Mellon University, said the technology is available for officials and regulators to manage the water consumption and wastewater treatment needs of the gas drilling industry while protecting the environment.

“The question I have for you, for our government and our regulators is: Will we?” VanBriessen said.

Copyright The Times Leader

Shale drilling in Monroe, Pike on the horizon

Experts say area should prepare because drilling is not far off

Pocono Record Writer
August 20, 2010

SCRANTON — Drilling for natural gas in Marcellus Shale in Monroe and Pike counties? It’s not a question of if, but when.

That was the word from around the state Thursday at a forum at Marywood University, where experts said the region is rich in the valuable fossil fuel.

The bulk of the drilling now in northeast Pennsylvania is along the northern tier but could eventually extend into the Poconos.

Kathryn Zuberbuhler Klaber, president and executive director of the Marcellus Shale Coalition, said areas more conducive to the entire operation — including roads and pipeline — are the first areas that will be drilled. Once more companies get involved and more money is available, drilling could expand to other parts of the state that haven’t seen it yet.

“There’s only so much capital right now,” she said. “By its nature, you’re going to see that concentrated development.”

Currently, there are no Marcellus Shale drilling operations in Monroe or Pike counties. There is only one in Wayne County.

One roadblock from local drilling right now is the Delaware River Basin Commission, which stopped issuing drilling permits in 2009 until it can formulate a list of regulations gas companies must meet.

Clarke Rupert, spokesman for the DRBC, said the commission hopes to have those regulations finalized by the end of the summer and adopted by the end of the year, admitting that’s an “optimistic” schedule.

Marcellus Shale is found in most of Pennsylvania and parts of New York and West Virginia, about 5,000 to 8,000 feet below the surface. It had been considered too expensive to drill, but advances in technology and the rising cost of natural gas made it more attractive, according to the Pennsylvania Department of Environmental Protection.

The new method of drilling — hydraulic fracturing, known as “fracking” — uses large amounts of water mixed with sand and other items to fracture the shale and allow the gas to flow, according to the DEP. The water used is then treated before it is released back into the water system.

However, residents near some drilling operations have complained that local water supplies have been damaged. That’s led to some in the state to wonder if this is another coal industry, which ravaged the land of the Scranton/Wilkes-Barre area before it was gone.

U.S. Rep. Paul E. Kanjorski, D-11, called the shale movement “our second chance” to correct the mistakes of the coal industry.

“Don’t exploit us, and we’ll work with you,” he said our message should be to gas companies. “Exploit us, and you don’t know the (bother) we can be to you.”

John Quigley, secretary of the state’s Department of Conservation and Natural Resources, said about half of Pennsylvania’s state parks are in areas where Marcellus Shale is thought to be present, and about 700,000 of the 2.1 million acres of state forest land already is leased by gas companies.

He called for the state to stop issuing permits to gas companies until there is more known about the industry.

“Frankly, I think we need to take more than a timeout, we need to take a stop,” he said.

U.S. Sen. Bob Casey, D-Pa., encouraged local government leaders who may not have many avenues of protecting themselves to write and even pressure their state and federal representatives to make sure the Marcellus Shale industry is regulated.

“There is almost no area that can look and say, ‘That’s someone else’s problem,’” he said. “We all have to do what we can to make sure this is done the right way.”

View article here.

Copyright:  Pocono Record

Drilling at Buda site wrapping up

By Elizabeth Skrapits (Staff Writer)
Published: August 19, 2010

Drilling is close to wrapping up at Luzerne County’s first natural gas well, paving the way for Encana Oil & Gas USA Inc. to start on the second.

In a recent release, Encana reported drilling operations at the Buda natural gas well site on Route 118 behind the Ricketts Glen Hotel in Fairmount Township are expected to be finished within the next two weeks. Construction of the drilling pad at the Salansky site on Zosh Road in Lake Township is also “nearing completion and preparation for active drilling operations will start soon,” the company stated.

However, Encana stated that the completion process, which includes hydraulic fracturing, has not yet been scheduled for either site.

The wells will take approximately 6 millions of gallons of water for hydraulic fracturing.

The Susquehanna River Basin Commission, which regulates large water withdrawals, has granted Encana permits to take water from three sources shared with other natural gas drilling companies and three municipal sources.

The municipal sources are Dushore Water Authority in Sullivan County, Towanda Municipal Authority in Bradford County and Tunkhannock Borough Municipal Authority, Wyoming County.

Encana has SRBC permission to take up to 499,000 gallons per day from a Citrus Energy source at the North Branch Susquehanna River in Washington Township, Wyoming County; up to 999,000 gallons per day from the Mountain Energy Services Inc. source at Tunkhannock Creek in Tunkhannock Township; and up to 240,000 gallons per day from the Bowmans Creek withdrawal site of Randy Wiernusz in Eaton Township.

Withdrawals from the Citrus Energy site are currently on hold due to low stream levels, triggering what the commission calls “pass-by restrictions,” according to Susquehanna River Basin Commission Spokeswoman Susan Obleski.

Citrus Energy and Mountain Energy were also under the restrictions, but Obleski said those have been lifted.

“The other two are available, but I understand the stream flows are dropping quickly there again, so it could be only a matter of time that they’re put on hold again,” she said.

Encana also announced that in the event of a natural gas well emergency, the company is partnering with Cudd Well Control as a first responder.

Cudd, which is based in Houston, Texas, has opened a branch on Route 414 in Canton, Bradford County – the first well-control specialists to start operating in Pennsylvania. Previously, specialists from Texas had to be flown in to handle natural gas well emergencies.

“We’ve worked with Encana for a long time in Texas and look forward to partnering here in Pennsylvania,” Troy White, Cudd’s director of business development, said in a prepared statement. “Our specialized team is already familiar with Encana’s safety practices, so we expect a smooth transition to first response planning with Encana in the Marcellus.”

eskrapits@citizensvoice.com, 570-821-2072

View article here.

Copyright:  Citizens Voice

What They’re Saying: Safe, Responsible Marcellus Development Continues to Positively Impact the Region

‘Marcellus Multiplier’ Creating Jobs at Breakneck Rates, Helping to Lower Energy Prices for Consumers

Roustabouts wanted as companies produce homegrown, clean-burning natural gas: “The natural gas industry expects to create thousands of jobs in Marcellus shale gas development in this decade, and state agencies and colleges are gearing up to train workers to fill those positions. The Marcellus Shale Coalition…said the boom created 44,000 jobs in the state last year. It is predicting thousands more this decade. … The Western Area Career and Technology Center in Canonsburg has trained more than 100 in a roustabout training program since last year, and the Pennsylvania College of Technology in Williamsportgraduated about 200 workers from its roustabout program since October. … Some students graduating from Western Area Career and Technology Center in Canonsburg have landed jobs related to gas production and are being paid annual salaries of between $50,000 and $60,000, said Iannetti, director of the career center. (Tribune-Review, 8/18/10)

Shale gas production has driven “natural gas price down to the lowest rates in almost a decade”: “UGI Corp. will enter the Marcellus Shale gas rush, a move that could result in Pennsylvania utility customers using and benefiting from Pennsylvania-produced gas. … “The natural gas in the Marcellus Shale region of Pennsylvania is in areas in which we have a significant amount of assets, including much of our utility and gas marketing service territories,” said Lon R. Greenberg, chairman and chief executive officer of UGI. … The discovery of shale gas reserves throughout the country has already driven natural gas price down to the lowest rates in almost a decade. Brian Fitzpatrick, UGI’s manager of gas supply, said adding a local source of natural gas to the utility’s portfolio could reduce the price volatility that occurs from hurricane disruptions in the Gulf. State consumer advocate Irwin “Sonny” Popowsky said UGI’s plans could benefit both natural gas and electricity customers,since natural gas pricess are figured into electricity prices. (Scranton Times-Tribune,8/14/10)

Marcellus Shale companies in hiring mode: “Among the most voluminous hirers are natural gas developers ramping up their operations in the Marcellus Shale, a gas-rich layer of rock thousands of feet below the ground. Moon-based Atlas Energy Inc., for example, has been on a hiring spree since it announced in April a $1.7 billion joint venture with Indian company Reliance Industries Ltd. The company’s president, Rich Weber, said Atlas has added about 100 people to the firm’s roster in 2010, bringing the total to about 600. The firm is slated to double in size in the next several years, he said. … Weber also added that about 85 percent of its new hires have come from Pennsylvania. … Talisman Energy, is on track to hire an additional 60 employees for its new American corporate headquarters in Warrendale. (Pittsburgh Business Times, 8/13/10)

Hundreds want gas drilling jobs: “Hundreds of residents from throughout the Ohio Valley waited in long lines Wednesday with hopes of landing a job with one of the many natural gas companies actively drilling in the West Virginia Marcellus Shale. Nine recruiters from Chesapeake Energy, based in Oklahoma City, were on hand Wednesday to talk to job seekers during a six-hour career information open house at the PPG McKenna Shelter. Men and women with resumes in hand, dressed in everything from construction boots and jeans to business attire, stood on line for two to three hours waiting for the chance to speak with one of the recruiters. … “This is a great opportunity for around here,” said Long. “This (the gas industry) is one of the only things around here. It’s a good thing they (Chesapeake) are here.” … “Any new full-time employment in this area is great,” he added. (Wheeling Intelligencer, 8/19/10)

Marcellus Shale’s economic impact is growing: “Marcellus Shale drilling is still in its infancy in West Virginia, but the industry is already contributing millions of dollars to the state’s economy. It may be awhile before the gas industry’s economic impact rivals that of coal in West Virginia. Mike Shaver, clad in a hard hat and muddy boots, surveys a gas drilling rig on a site in Upshur County. As a crew drills towards the Marcellus Shale, a pipe pumps water and dirt out of the hole in the earth and into a huge pit of muddy, rock-filled water. (Huntington Herald Dispatch, 8/14/10)

Regional Editorials Weigh-In

New York State gets it wrong on gas drilling moratorium: “We prefer that Pennsylvania simply be very responsible and practical in enforcing its environmental laws. There is no reason that can’t be done while desperately needed economic growth from the natural gas industry is nurtured. This past week the Sun-Gazette reported on the rapid growth of the cement mixing Halliburton plant off Route 405 in Clinton Township, where ground was broken a year ago. By year’s end there will be about 100 jobs, and there are projections that the plant will eventually employ 400 people. Plants with 400 jobs especially new ones aren’t plentiful in our region. As long as the state has a fix on how to be environmentally vigilant over the industry, we don’t get why a moratorium that would drive off sorely needed economic development like that is necessary. (Williamsport Sun-Gazette Editorial, 8/15/10)

WV should safely explore gas development on taxpayer-owned land: “While some citizens are reluctant to permit gas development under public lands, others are aware thatWest Virginia can realize significant benefits that preserve and enhance state properties.New revenues from both the sale of gas and the employment of drilling crews can support government programs that many citizens believe are important. (State Journal Editorial,8/19/10)

We’re Here For the Long-Haul, and Here to Be Good Neighbors, Stewards of the Environment

Ridge pushes for environmentally safe gas drilling: “Former Gov. Tom Ridge this afternoon called Marcellus Shale gas production a “transformative opportunity” for Pennsylvania during an appearance Downtown in his new role as a strategic adviser to an industry group. Still dressed in the jeans and checkered shirt that he wore to inspect production operations in Washington County earlier in the day, Mr. Ridge hailed the industry’s economic potential but also stressed the need to manage environmental concerns. “We’re only getting one chance to get it right,” Mr. Ridge said. (Post-Gazette, 8/17/10)

Natural gas company reaches out to neighbors: “Cabot Oil and Gas has more than 100 gas wells in Susquehanna County and at Montrose Area high school, the company and other contractors brought in equipment, had demonstrations and more to show the community exactly what they do and how they do it. … It was all about educating the public at the Cabot Oil and Gas community picnic at Montrose Area high school. … Hundreds showed up for the behind-the-scenes look. “They needed a day like this to see this equipment, to get an understanding of what it is we’re doing. I couldn’t get everybody on a rig tour, but we thought we could bring a rig tour to the folks here,” said George Stark with Cabot Oil and Gas. … “I think it’s taken a pretty sleepy community and put it on the map. Some people might think that’s not good, but it’s brought a lot of business,” said Becky Severcool of Montrose. (WNEP-TV, 8/14/10)

Drilling workers donate blood: “About three hours into the drive, a caller from Susquehanna County phoned the office of American Red Cross Wyoming County, asking for directions to the school from a gas drilling site in Susquehanna County. … Jay Jones, a supervisor with Selman and Associates, of Midland, Texas, assigned as Superintendent of Geology for Cabot Oil & Gas drilling sites in the area, said all of the workers, including his wife, are geologists working under contract with Cabot Oil & Gas to do geological studies at Dimock, Springville, Elk Lake, Montrose and South Montrose. “We had seen signs for the Red Cross blood drive posted on a bulletin board at True Value Hardware Store in Montrose for several days,” Jones said. “We asked one of the managers there to call the phone number posted on the sign to get us directions. Now, we’re here to give blood.” (Dallas Post,8/15/10)

Cabot educational picnic draws more than 2,300 interested in learning more about the Marcellus: “More than 2,300 people crowded onto the grounds surrounding Montrose Area Junior/Senior High School Saturday afternoon, chowing down on barbecue fare while gawking at giant trucks, water tanks and other equipment used in the natural gas drilling process. … “I am overwhelmed with the community support that we have from today’s event,” Cabot spokesman George Stark said. “To see the crowd, to hear the questions, and to be able to answer those questions is very satisfying and rewarding.” … “This is wonderful,”said Jeanne Ludwick, a Great Bend, Pa. resident who brought her three young grandchildren. (Press & Bulletin, 8/14/10)

NEPA resident says “We’re looking forward to” job-creating Marcellus production: “The purpose of Saturday’s picnic at Montrose Area High School was to help the host get to know its new Susquehanna County neighbors a bit better. Nothing unusual in that, perhaps. Except that the host was a natural gas company, the neighbors turned out in the thousandsand the gathering even drew a small number of protesters. Possibly more than 3,000 people came to find out more about the industry, Cabot Oil & Gas Corp. Lew and Lois Davy of New Milford attended the event to find out more about the area’s natural gas industry. “It’s coming,” Mr. Davy said. “We hope it does, anyway. We’re looking forward to it.” (Scranton Times-Tribune, 8/15/10)

Shale gas workers make room for Little League World Series families: “Marcellus Shale, which runs underneath this central Pennsylvania region, has far greater potential than baseball to restoring Williamsport as an industrial hub. … Kristi Gittins, a spokeswoman for Chief Oil & Gas, a Texas company that has been housing many of its employees in the Holiday Inn and the Hampton Inn, said many workers had already set up permanent residence in the area but that it still has workers “coming in and out” who had to find different lodging out of town. “Little League is such a wonderful event for the entire area,” said Gittins. “It’s a temporary inconvenience for workers. We didn’t give moving a second thought.” (Philadelphia Inquirer, 8/19/10)

Local Governments, Academic Experts Back Responsible Marcellus Development

Lehman Twp. supervisors back Marcellus production: “Despite negative feedback in recent months from anti-“fracking” groups concerning Marcellus Shale gas drilling, supervisors on Monday night expressed their support for the industry, as did several township residents. Fracking refers to the drilling process of hydraulic fracturing, which uses water and chemicals under pressure to liberate natural gas from the shale deposits. … Carl Kern, who owns trucks that service drillers in Bradford County, said the public should listen to the positive side of drilling instead of the protest. … Board Chairman Dave Sutton concurred, adding that if the township must repair a road in an emergency situation, it will be reimbursed by the drillers.“It’s nice to hear something positive,” Sutton said. … He and several other lease holders are in the process of formalizing a local gas industry support group. (Wilkes Barre Times-Leader,8/17/10)

University of Pitt. professor Dr. Radisav Vidic confirms fact that hydraulic fracturing’s never contaminated groundwater: “There hasn’t been any proven case that shows that the hydraulic fracturing itself causes contamination to groundwater. First of all, the well casing — the way it’s designed to be used — there’s multiple barriers there through the aquifer so there’s really no communication between the material that’s injected into the well and a groundwater aquifer. … You can go on the DEP website, and there is a list chemicals that are being used in hydro fracturing operation. … The industry is required to disclose this information, and the DEP has a list of all the chemicals that are being used for hydro fracturing operations.” (KDKA Radio, 7/10)

Monongahela Council OKs Marcellus gas deal: “Monongahela Council has approved a deal with a natural gas drilling company to locate two wells within city limits, earning the city a signing bonus of $35,000. One natural gas well will be located on property owned by the local fire department beside the city park known as The Mounds, Monongahela Mayor Bob Kepics said. Royalties paid by Chesapeake Appalachia of Charleston, W.Va., would help to keep the fire department in business, Kepics said. … Kepics said he is not aware of any residents who oppose the projects. (Washington Observer-Reporter, 8/17/10)

Copyright: Marcelluscoalition.org

On the Road Again

Barnstorming Pa., MSC Continues to Educate, Engage “Friends of Marcellus”

The positive and overwhelming benefits associated with the responsible development of the Marcellus Shale’s abundant, homegrown, clean-burning natural gas know no county lines or state borders. Considered to be the world’s second largest natural gas field – second only to one in Iran – the Marcellus Shale’s potential to generate jobs, revenue and opportunity for all Pennsylvanians is real. And it’s a story worth taking on the road.

And so this week, that’s what the Marcellus Shale Coalition and its growing grassroots network did – traveling the length and width of the Commonwealth to continue to educate and engage the 12 million folks that proudly call Pennsylvania home. Along the way, we also took some time to  highlight the economic, supply-chain and job growth opportunities that continue to be created for the local workforce — efforts that will continue at an aggressive pace as the responsible exploration of clean-burning natural gas in Pennsylvania continues to expand.

Here’s a quick snapshot of the ground that the MSC has covered in just the past couple days, along with a run-down of where we’re headed next:

We Started in Philadelphia

The MSC joined the Pennsylvania Department of Community and Economic Development (DCED) to educate local businesses last week of the enormous opportunities that exist up and down the Marcellus Shale supply chain. MSC president Kathryn Klaber also met with elected leaders in Philadelphia to discuss the merits of natural gas-powered vehicles, and other benefits that the Mighty Marcellus will continue to deliver to the city’s residents.

Click here to view the embedded video.

  • “There’s a lot of safeguards in place…that make sure Pennsylvanians have safe drinking water,” said Marcellus Shale Coalition president Kathryn Klaber. Klaber is also here to talk about the economic benefits of expanding drilling, mainly the estimated 200,000 jobs that would be created in Pennsylvania. (ABC6 TV, 8/13/10)


Then We Headed Back to Pittsburgh

At the Pittsburgh Business Times’ Energy Inc. conference yesterday afternoon, Gov. Tom Ridge – as reported by the Pittsburgh Post-Gazette – highlighted the benefits of responsible Marcellus development, as well as the safeguards in place and the commitment from the industry to protect the environment.

Click here to view the embedded video.

  • Gov. Tom Ridge

o    “I think this is a potentially a transformational opportunity for our state. At the same time, we have to – we must – do it in a way consistent with our commitment to retain the beauty and the bounty, and the pristine condition of Pennsylvania.”

o    “I was on site today that 80 or 90 folks working that at the that site, and about 80 percent of them were local residents from Pennsylvania. Of course, the economic sustainability is real. They call it the ‘Marcellus Multiplier.’

o    “At the end of the day, facts are stubborn things. And we just have to get some facts out there so people can better understand what the industry can do – and will do – to build a sustainable economic model and be true to our commitment to the environment.”


And Now We’re Headed to State College – And Beyond

In an effort to further underscore the benefits responsible that Marcellus Shale development is generating for family farmers and Pennsylvania’s agriculture economy, the MSC will attend Penn State University’s Ag Progress Days today. And tomorrow, MSC president Kathryn Klaber will discuss ways that local business can join the growing Marcellus supply chain network with the Small Business Development Centers (SBDC) at Lock Haven University; she will also participate in a shale gas forum at Marywood University, alongside U.S. Sen. Bob Casey.

Interested in learning more, and joining our fight for a stronger economy and a cleaner and more secure energy future? Become a “Friend of Marcellus” today.