Archive for the ‘Pennsylvania Natural Gas Drilling’ Category

A recent study out of Pennsylvania State University has been quoted by the gas industry as predicting that as many as 98000 new jobs may be created in Pennsylvania as a result of increased drilling for natural gas.

The Pennsylvania personal injury Attorneys at Dougherty Leventhal and Price LLP are committed to protecting the rights of workers and their families for injuries or death suffered while working at drill sites. Attorney Thomas Cummings and Attorney Joseph Price will be attending a seminar at the University of Texas which will discuss issues involving gas drilling. Attorney Cummings handles workers compensation claims for injured workers. Attorney Price handles serious/complex personal injury claims involving injury or death. Both Attorney Cummings and Attorney Price have been named Super Lawyers by Philadelphia Magazine.

Any person or family suffering death or injury as a result of gas drilling in Pennsylvania should contact Dougherty Leventhal and Price LLP immediately for a free consultation.

A recent study out of Pennsylvania State University has been quoted by the gas industry as predicting that as many as 98000 new jobs may be created in Pennsylvania as a result of increased drilling for natural gas.

The Pennsylvania personal injury Attorneys at Dougherty Leventhal and Price LLP are committed to protecting the rights of workers and their families for injuries or death suffered while working at drill sites. Attorney Thomas Cummings and Attorney Joseph Price will be attending a seminar at the University of Texas which will discuss issues involving gas drilling. Attorney Cummings handles workers compensation claims for injured workers. Attorney Price handles serious/complex personal injury claims involving injury or death. Both Attorney Cummings and Attorney Price have been named Super Lawyers by Philadelphia Magazine.

Any person or family suffering death or injury as a result of gas drilling in Pennsylvania should contact Dougherty Leventhal and Price LLP immediately for a free consultation.

N.J. gas firm eyes $300M income

ANDREW MAYKUTH The Philadelphia Inquirer

A southern New Jersey gas firm that bought a $2 million Marcellus Shale interest in 2008 says it might generate $300 million in income over its lifetime.

South Jersey Industries Inc., the Folsom, N.J., company that owns South Jersey Gas and several nonutility energy businesses, disclosed to analysts that its purchase of mineral rights in northern Pennsylvania could pay off handsomely.

Chief executive officer Edward J. Graham, speaking to analysts about the company’s annual earnings, said two horizontal wells in which South Jersey Industries has a stake will begin producing income this quarter.

He said the gas operator, St. Mary Land & Exploration Co., of Tulsa, Okla., was still tying the wells to a pipeline, but feels “really good about the prospects.”

Two more wells are planned for this year on the 21,000-acre property in McKean County.

In early 2008, South Jersey Industries paid $2 million for an interest in a partnership that owns the deep-gas rights on the property, Stephen Clark, the company’s treasurer, said in an interview. Since then, the value of mineral rights has skyrocketed.

South Jersey Industries estimates that its combined royalties and ownership rights will net 10.25 percent of the value of the gas produced — the company’s share would be about $300 million, based on an average price of $6 per thousand cubic feet.

“It has the opportunity to be very productive for us,” Clark said.

Graham told analysts that it was premature to estimate earnings, which depend upon the number of wells drilled and the price of natural gas. Production could take years, or even decades, to realize.

The estimates illustrate the huge potential in the Marcellus Shale, which lies under much of Pennsylvania and several surrounding states.

Copyright: Times Leader

Four well drilling workers suffered serious injuries on a drilling rig in Elk Hills, California on February 15th. The workers were performing a pressure test on a well when an unexpected pressure release occurred. It appears that at least some of the injuries resulted from the workers jumping from the rig, according to reports from the scene.
Two of the men injured suffered severe injuries and were flown from the accident by helicopter. Two others suffered less critical injuries and were taken by ground ambulances to hospitals. A fifth worker suffered minor injuries and was treated at the scene.
Source: The Taft Midway Driller, Tuesday, February 16, 2010.

As a result of the recent Pennsylvania state budget compromise, the Pennsylvania Department of Conservation and Natural Resources recently received bids for the leasing of state lands by gas drilling companies. The leases were for up to 32,000 acres of land in Cameron, Potter, Tioga, Clinton and Clearfield counties. The land is located in State Forests including Sproul, Elk, Tioga and Susquehannock.

According to the DCNR the leases will generate at least $125 million in additional revenues for the State coffers. The leases will also help create jobs. State environmental groups have raised serious concerns over the leases, but DCNR is confident that a balance has been struck addressing all issues.

Dougherty Leventhal and Price LLP represents individual injured as a result of gas drilling related injuries in Pennsylvania. Contact one of DLP’s twelve (12) Pennsylvania personal injury attorneys if you have any questions regarding injuries suffered as a result of companies or individuals related to the Pennsylvania natural gas drilling industry.

Pa. is biggest natural gas producer that does not impose some type of tax.

MARC LEVY Associated Press Writer

HARRISBURG — The natural gas industry in one of the nation’s hottest exploration spots is bracing for a political tussle over whether and how Pennsylvania will tax methane from the potentially lucrative Marcellus Shale formation.

An industry trade association, the Marcellus Shale Coalition, said Thursday it wants any discussion of a tax to involve the high cost to drill a shale well and cumbersome state laws that make it costly to operate.

A tax enacted without addressing issues that hamper exploration companies could encourage some to move resources to shale formations in other states, said coalition president Kathryn Klaber.

“What is important is to look at the broad issues, not just a tax, as to how we make this climate best for growth,” Klaber said. “There are a lot of modernization policies that need to be put in place to develop this massive natural resource.”

On Tuesday, Gov. Ed Rendell issued his annual spending plan for the state and renewed his call to enact a tax identical to West Virginia’s: 5 percent on the value of sale, plus 4.7 cents per thousand cubic feet produced.

Rendell projects the tax would produce $180 million in the fiscal year beginning July 1 and increase to nearly $530 million after five years, including 10 percent set aside for local governments.

Rendell wants money to shore up a state treasury that faces a projected $5.6 billion gap in 2011 and 2012 resulting from spiraling public pension costs and the expiration of federal stimulus budget aid.

Pennsylvania is the biggest natural gas producer that does not impose some type of tax on it.

However, the coalition wants to steer talk of a tax to reflect those imposed by shale states, such as Texas, Arkansas and Louisiana. In those states, the tax is discounted initially to allow the exploration companies to recoup a multimillion-dollar investment in each well.

For instance, Texas imposes a 7.5 percent tax but discounts it for 10 years or until the operator recovers 50 percent of the drilling and completion costs. In Arkansas, the state imposes a 5 percent tax on natural gas production but discounts it to 1.5 percent for at least three years.

Last year, Rendell called for the same tax rate on gas. After months of Republican-led opposition, he relented, saying he did not want to hurt an industry in its infancy.

In recent weeks, Rendell has said he believes the industry can afford to pay a tax, and pointed to the heavy influx of cash into Marcellus Shale exploration ventures.

For now, production from the Marcellus Shale is still in the early stages. Fewer than half of the approximately 1,100 wells drilled in Pennsylvania are connected to pipelines that can bring the gas to customers.

Environmental groups and the Pennsylvania State Association of Township Supervisors support a tax. The Senate’s Republican majority has not ruled out the eventual imposition of a tax, although Senate Appropriations Committee Chairman Jake Corman, R-Centre, called it “premature.”

Copyright: Times Leader

Tunkhannock expecting $439,975 check in March from Chesapeake Energy.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

Tunkhannock Township in Wyoming County announced this week it received the signed agreement for its gas-drilling lease with Chesapeake Energy for about 76 acres of public land.

The up-front bonus check for $439,975 is expected in early March.

The township board had signed the lease in October, but the process was delayed because of municipal regulatory requirements.

“We were part of the Wyoming County land group, but we had to put it out for bid being a municipality,” said Judy Gingher, the township’s secretary.

The bid stipulated, however, that the winning bidder had to have at least 1,000 acres already leased in the township, and no one entered a bid.

The township received $5,762 per acre, which was $12 per acre more than for private landowners, Gingher said. The township currently has no plans for the money.

“They’re looking possibly just to invest it,” Gingher said.

Gingher said there were minor community concerns about surface-drilling activity because much of the land is in the township’s 42.5-acre Lazy Brook Park, which hosts a variety of community functions.

The land might be off limits to surface activity because of building-setback requirements and deed restrictions.

Much of it was purchased in 2006 through hazardous flood mitigation buyouts, which carry emergency management agency restrictions that prohibit permanent structures.

Township Solicitor Paul Litwin was unsure if drilling would be considered a restriction, though, because the drilling infrastructure is temporary and the resulting well pad likely wouldn’t impede flood flow, which is the purpose of the restrictions.

Structures are permissible “as long as you don’t increase the flood height with the structure, and a pad would basically be flat once you put the structure in,” he said.

“The question we’ll have to resolve if they want to put a pad there is that a permanent structure, and we’ll have to look at that if and when they want to do that. … They haven’t applied yet, so we haven’t looked at it yet. … My guess is it probably would not be considered permanent.”

Brian Grove, the director of corporate development at Chesapeake, declined to comment on the lease or plans for the property.

Copyright: Times Leader

On WVIA show, members of industry admit not telling public about methods.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

PITTSTON TWP. – Members of the gas-drilling industry acknowledged on Thursday evening a failure to inform the public about their procedures, and the audience at the WVIA call-in show reminded them of that often.

Viewers of the “State of Pennsylvania” program repeatedly questioned – through the Internet, phone calls and in person – potentials for polluting, environmental justice issues and the industry’s willingness to abide by regulations.

There were even sporadic bursts of applause when in-house questions touched on contentious issues. “I don’t want it (Marcellus Shale drilling) in Luzerne County,” said Audrey Simpson of Shavertown “Take a trip up to Dimock (Township in Susquehanna County) and see what the hell is happening to those people up there.”

There, methane contamination in 13 wells is being attributed to gas-drilling activities. Those affected have brought a lawsuit against the local driller, Cabot Oil and Gas.

A Cabot representative was not among the panel.

In fact, the only driller there was Chesapeake Energy, represented by David Spigelmyer, the vice president of government relations for Chesapeake’s Eastern Division. The company has defended the industry by itself at several similar public-input meetings.

Early on during the hour-long program, the vehemence was foreshadowed by Gary Byron, a former state Department of Environmental Protection official and the president of Dux Head Environmental Services, a consulting firm for the drilling industry.

“The industry and the DEP don’t agree on a lot, but the one thing they do agree on,” he said, is that information has lagged behind drilling activity so much that “there are a lot of misconceptions about the industry.”

He added that many of the companies need to be educated about regulatory methods in Pennsylvania. “They want to comply,” he said.

Bruce Bonnice, who has worked for several resource-conservation groups but also leased his land to Carrizo Oil and Gas and now consults for them, likened the risks to everyday transportation. “I’m not sure I’m going to have a car accident every time I get in my car, but I still travel,” he said.

Spigelmyer noted plans for taxing the industry are premature because the Marcellus hasn’t yet shown it’s worth refocusing capital from other gas shales in southern states. He added that regulatory overhead would further stunt that process.

Copyright: Times Leader

Intent is to have inspectors based closer to local gas drilling activity.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

For some time, local legislators and environmentalists have complained that local oversight of natural-gas drilling is too difficult because the closest inspectors are in Williamsport.

With the industry preparing to ramp up activities in Susquehanna and Wayne counties, the state Department of Environmental Protection addressed that complaint on Wednesday by announcing the opening of an Oil and Gas Management office in Scranton.

“Our communities need the economic boost that gas drilling will provide, but we simply cannot afford to have state government shortchange oversight,” said state Sen. Lisa Baker, R-Lehman Township, in a news release.

She had asked Gov. Ed Rendell to open an office closer to local drilling activity, the release noted, because “given the increase in drilling activity expected to take place in the region, and the potential environmental consequences of mistakes, long-distance oversight was not an acceptable answer.”

The site hasn’t been finalized, but it will be within the city, according to DEP spokesman Tom Rathbun, and will house 10 employees who have yet to be hired. Most of those will be “field personnel,” Rathbun said, meaning “they’ll be handling inspection and compliance.”

No date has been set for the office’s opening, but Rathbun assured it would be “as soon as possible.”

“We’re anticipating continued growth in Wayne and Susquehanna counties, according to what the industry is reporting, so we’re responding to that,” he said. “That’s based on the industry forecasts where they’re doing next year, what they expect to do.”

Funding for the employees and regional office will be paid for through increased permitting fees the industry is paying to drill in the Marcellus shale, “which was the original intent behind increasing the fees: to make the program pay for itself,” Rathbun said.

The shale is a rock formation a mile underground stretching from New York to Kentucky and is estimated to store enough gas to supply the nation’s current consumption for two decades.

The employees will be part of 68 new DEP hires that Rendell announced last week to handle increased gas drilling, Rathbun said.

Copyright: Times Leader

In Pennsylvania, the Department of Labor and Industry monitors and administers the codes and regulations which affect the safety of our workforce. The Bureau of Workers’ Compensation (“the BWC”) administers laws which assure that workers are insured against job-related injury, illness, or death. The Health and Safety Division of the BWC is responsible for enforcement of the health and safety regulations of the Workers’ Compensation Act.
The Bureau of Occupational and Industrial Safety is responsible for the administration and enforcement of various provisions and regulations including the Uniform Construction Code, the Fire and Panic Law, the Universal Accessibility Law, the General Safety Law, the Boiler Law, and the Elevator Law. Also included in the purview of the Bureau of Occupational and Industrial Safety is the enforcement of the provisions of the Liquefied Petroleum Gas Law and the Flammable & Combustible Liquids Law.

With the burgeoning growth of the natural drilling industry in Pennsylvania’s Marcellus Shale field, it’s important that the workers in this industry can be assured of a safe work environment. It’s also important that these workers are aware of the rights and remedies available to them in the event that they suffer a work injury. The team of lawyers at Dougherty, Leventhal & Price are ready to answer your questions on workplace safety and the workers’ compensation system. If you do suffer a work injury, contact us and we will be happy to represent you and guide you through the litigation of your workers’ compensation claim.