Archive for the ‘Pennsylvania Natural Gas Drilling’ Category
County board speeds drilling for natural gas
At issue is tapping into Marcellus Shale in Fairmount and Lake townships.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
WILKES-BARRE – After more than two hours of testimony on Tuesday night that mostly didn’t address the issues before the board, the Luzerne County Zoning Hearing Board unanimously approved temporary permits and special exception uses to develop natural-gas drilling sites in Fairmount and Lake townships, among the first in the county.
The board, however, placed several caveats on the approvals, including bonding for all roads used, sound and light control measures, and a prohibition on controlling dust on roads with water contaminated from the drilling process.
The two sites are located in municipalities that don’t have zoning boards, which is why the county board was involved.
In Lake, the site is on two properties on Zosh Road owned by Edward Farrell and Daniel Chorba. In Fairmount, the property just off state Route 118 east of Mossville Road and behind the Ricketts Glen Hotel is owned by Edward Buda.
The 12-month temporary permits will allow the well drilling and the storage of water used therein. The special exceptions allow the permanent existence of the well pad at the sites.
At least 50 people attended the hearing, speaking fervently both for and against the expansion of Marcellus Shale gas drilling into Luzerne County. However, board solicitor Stephen Menn warned throughout that most of those issues weren’t before the board.
“This board has very limited rights about what it can do with regards to gas and oil drilling,” he prefaced. “Your concerns are misdirected to us. They should be directed to your legislators.”
Board member Tony Palischak, who is involved with conservation groups, voiced concerns about drilling. “We’re a little skeptical because of all the hair-raising things,” he said, that have been reported in other drilling areas, including Dimock Township in Susquehanna County. A driller there has been fined and cited repeatedly for environmental abuses.
However, he approved the uses. “We have no alternative,” he said afterward. “It’s up to (the state Department of Environmental Protection) and (the state Department of Conservation and Natural Resources) to take it from here.”
Still, objectors from as far as Bethlehem noted water and air pollution concerns, along with damage to roads and congestion.
Others welcomed the economic opportunities, and at least one, Charles Kohl, was swayed when the Denver-based companies, WhitMar Exploration Co. and EnCana Oil and Gas (USA) Inc., announced their interest in leasing all properties in those townships.
The companies are also proposing a site in Lehman Township, which has its own zoning board.
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
Lehman Twp. confronts drill issue
Municipality’s planning board has recommended approving a plan to drill a test gas well.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
LEHMAN TWP. – After more than a year of rising interest in the Marcellus Shale just outside the county, Lehman Township supervisors will in January set the tone for natural-gas drilling in Luzerne County.
What’s Next
Lehman Township supervisors will vote at their Jan. 20 meeting on the conditional use proposal to drill a natural gas well. A public hearing will begin at 6 p.m., with the board meeting to follow.
On Monday evening, the township’s planning board recommended approving a plan to drill a test well at a Peaceful Valley Road site. The vote on the conditional use now goes before township supervisors at their Jan. 20 meeting, at which they will also consider local concerns about groundwater contamination and road damage.
“To the planning (board), it appeared that EnCana … answered those questions adequately,” said Raymond Iwanowski, the vice chairman of the board of supervisors, who was at Monday’s meeting. “As supervisors, we’re pretty united on this. We want to do it right.”
The plan was proposed jointly by Calgary, Canada-based EnCana Oil and Gas and Denver-based WhitMar Exploration Co., which are partnering on exploratory drilling in the county.
If indications from three test wells are positive, the companies plan to expand operations. If not, their leases put them under no further obligation.
Along with the Lehman site, they have identified single sites in Fairmount and Lake townships. Neither of those municipalities has planning boards, so consideration and recommendation of those plans transfer to the county’s planning commission, which is expected to address them on Jan. 5.
With environmental damages and health concerns in connection with gas drilling in Dimock Township, Susquehanna County, making news throughout the year, Iwanowski said groundwater protection is a “also an eye-opener than we have to be vigilant so that that doesn’t happen here,” though he noted that those issues involve a different gas company.
“There are other safeguards that EnCana and Chesapeake and other companies use to alleviate those problems,” he said. “I feel much better about the drilling process than I did a year ago. I was born in the coal mine era. What I don’t want is another coal-mine rape of the land and leave.”
EnCana isn’t without its environmental controversies. It’s currently the focus of an investigation into contaminated water supplies near gas drilling in Pavillion, Wyo.
To ease concerns locally, the drillers are going beyond state regulations. They’re performing baseline groundwater testing for properties within a mile of drilling sites and promise to remediate contamination caused by drilling.
Regarding roads, the company is willing to bond any road required by the township and make contributions for maintenance, said EnCana spokesman Doug Hock.
Copyright: Times Leader
Natural gas shines in energy scene
Cleaner than coal and cheaper than oil, a 90-year supply is under our feet, experts say.
By MARK WILLIAMSAP Energy Writer
An unlikely source of energy has emerged to meet international demands that the United States do more to fight global warming: It’s cleaner than coal, cheaper than oil and a 90-year supply is under our feet.
It’s natural gas, the same fossil fuel that was in such short supply a decade ago that it was deemed unreliable. It’s now being uncovered at such a rapid pace that its price is near a seven-year low.
Long used to heat half the nation’s homes, it’s becoming the fuel of choice when building new power plants. Someday, it may win wider acceptance as a replacement for gasoline in our cars and trucks.
Natural gas’ abundance and low price come as governments around the world debate how to curtail carbon dioxide and other pollution that contribute to global warming. The likely outcome is a tax on companies that spew excessive greenhouse gases. Utilities and other companies see natural gas as a way to lower emissions — and their costs. Yet politicians aren’t stumping for it.
In June, President Barack Obama lumped natural gas with oil and coal as energy sources the nation must move away from. He touts alternative sources — solar, wind and biofuels derived from corn and other plants. In Congress, the energy debate has focused on finding cleaner coal and saving thousands of mining jobs from West Virginia to Wyoming.
Utilities in the U.S. aren’t waiting for Washington to jump on the gas bandwagon. Looming climate legislation has altered the calculus that they use to determine the cheapest way to deliver power. Coal may still be cheaper, but natural gas emits half as much carbon when burned to generate the same amount electricity.
Today, about 27 percent of the nation’s carbon dioxide emissions come from coal-fired power plants, which generate 44 percent of the electricity used in the U.S. Just under 25 percent of power comes from burning natural gas, more than double its share a decade ago but still with room to grow.
But the fuel has to be plentiful and its price stable — and that has not always been the case with natural gas. In the 1990s, factories that wanted to burn gas instead of coal had to install equipment that did both because the gas supply was uncertain and wild price swings were common. In some states, because of feared shortages, homebuilders were told new gas hookups were banned.
It’s a different story today. Energy experts believe that the huge volume of supply now will ease price swings and supply worries.
Gas now trades on futures markets for about $5.50 per 1,000 cubic feet. While that’s up from a recent low of $2.41 in September as the recession reduced demand and storage caverns filled to overflowing, it’s less than half what it was in the summer of 2008 when oil prices surged close to $150 a barrel.
Oil and gas prices trends have since diverged, due to the recession and the growing realization of just how much gas has been discovered in the last three years. That’s thanks to the introduction of horizontal drilling technology that has unlocked stunning amounts of gas in what were before off-limits shale formations. Estimates of total gas reserves have jumped 58 percent from 2004 to 2008, giving the U.S. a 90-year supply at the current usage rate of about 23 trillion cubic feet of year.
The only question is whether enough gas can be delivered at affordable enough prices for these trends to accelerate.
The world’s largest oil company, Exxon Mobil Corp., gave its answer last Monday when it announced a $30 billion deal to acquire XTO Energy Inc. The move will make it the country’s No. 1 producer of natural gas.
Exxon expects to be able to dramatically boost natural gas sales to electric utilities. In fact, CEO Rex Tillerson says that’s why the deal is such a smart investment.
Tillerson says he sees demand for natural gas growing 50 percent by 2030, much of it for electricity generation and running factories. Decisions being made by executives at power companies lend credence to that forecast.
Consider Progress Energy Inc., which scrapped a $2 billion plan this month to add scrubbers needed to reduce sulfur emissions at 4 older coal-fired power plants in North Carolina. Instead, it will phase out those plants and redirect a portion of those funds toward cleaner burning gas-fired plants.
Lloyd Yates, CEO of Progess Energy Carolina, says planners were 99 percent certain that retrofitting plants made sense when they began a review late last year. But then gas prices began falling and the recession prompted gas-turbine makers to slash prices just as global warming pressures intensified.
“Everyone saw it pretty quickly,” he says. Out went coal, in comes gas. “The environmental component of coal is where we see instability.”
Nevada power company NV Energy Inc. canceled plans for a $5 billion coal-fired plant early this year. That came after its homestate senator, Majority Leader Harry Reid, made it clear he would fight to block its approval, and executives’ fears mounted about the costs of meeting future environmental rules.
“It was obvious to us that Congress or the EPA or both were going to act to reduce carbon emissions,” said CEO Michael Yackira, whose utility already gets two-thirds of its electricity from gas-fired units. “Without understanding the economic ramifications, it would have been foolish for us to go forward.”
Even with an expected jump in demand from utilities, gas prices won’t rise much beyond $6.50 per 1,000 cubic feet for years to come, says Ken Medlock, an energy fellow at the James A. Baker III Institute for Public Policy at Rice University in Houston. That tracks an Energy Department estimate made last week.
Such forecasts are based in part on a belief that the recent spurt in gas discoveries may only be the start of a golden age for gas drillers — one that creates wealth that rivals the so-called Gusher Age of the early 20th century, when strikes in Texas created a new class of oil barons.
XTO, the company that Exxon is buying, was one of the pioneers in developing new drilling technologies that allow a single well to descend 9,000 feet and then bore horizontally through shale formations up to 1 1/2 miles away. Water, sand and chemical additives are pumped through these pipes to unlock trillions of cubic feet of natural gas that until recently had been judged unobtainable.
Even with the big increases in reserves they were logging, expansion plans by XTO and its rivals were limited by the debt they took on to finance these projects that can cost as much as $3 million apiece.
Under Exxon, which earned $45.2 billion last year, that barrier has been obliterated.
Copyright: Times Leader
Gas drilling has Back Mountain group concerned
Community partnership members worry about road deterioration, water supplies.
By Rebecca Briarbria@timesleader.com
Staff Writer
DALLAS TWP. – Lehman Township Supervisor Doug Ide informed members of the Back Mountain Community Partnership Thursday afternoon at Misericordia University about the latest natural gas drilling news in the area.
The BMCP is an inter-municipal group composed of Dallas, Franklin, Jackson, Kingston and Lehman townships and Dallas Borough.
Ide attended a public information session by EnCana Oil and Gas Tuesday at Lake-Lehman Junior/Senior High School. He and the other Lehman Township supervisors have also met with EnCana representatives.
Ide says he learned WhitMar Exploration Company has leased 24,000 acres of property in the northwestern part of Luzerne County, mainly on the north side of Route 118 in Fairmount, Ross, Lake and Lehman townships.
“The gas drilling is going to be here in the Back Mountain,” said Al Fox, BMCP president. “I thought it was quite alarming to hear the other day that 800 people signed up.”
According to Ide, EnCana, which will do the drilling, hopes to form two exploration wells in the county – one in Fairmount Township and one in Lehman Township – if they receive the required permits. The wells will prove whether there is natural gas in the area.
Ide says EnCana is willing to bond any road the township requests. Road deterioration and traffic from heavy trucks and machinery has been a common concern among the BMCP.
“We’re going to set some conditions on some roads we do not want traveled, specifically Old Route 115, Hillside Road,” Ide said.
BMCP officials decided to invite representatives from EnCana to speak at the group’s January meeting.
In February, the BMCP will invite back Brian Oram, a geologist and Wilkes University professor, to discuss what the municipalities should do to safeguard their drinking water and other issues related to drilling.
Oram spoke at the BMCP’s September meeting and briefly touched on water’s involvement in natural gas drilling.
In other news, the BMCP approved each member municipality to contribute $300 each to the group’s proposed 2010 operating budget. The budget is to cover general government administration costs.
Copyright: Times Leader
Activists advocate gas drilling regulations
PennEnvironment group wants to ensure water, land isn’t damaged by natural gas exploration.
CBy Rory Sweeneyrsweeney@timesleader.com
Staff Writer
According to a state environmental advocacy group, Pennsylvania needs to do more to ensure that gas drilling creating profits today won’t end up like the coal mining of yesterday that left a costly environmental legacy for the next generation.
In a recent report, PennEnvironment outlined various changes it recommends to the state’s approach to the drilling industry.
They include: strengthening clean-water laws and regulatory tools; making sensitive public lands off limits to drilling and instituting a severance tax on the extracted gas.
“I think we’ve leased out too much state forest land,” said state Rep. Greg Vitali, D-Delaware County, who attended a teleconference last week.
He added that it’s “irresponsible” to lease more until the production is taxed.
“It’s only political influence … that’s kept the Marcellus Shale from being taxed,” he said.
He hoped to get such a tax in the next state budget cycle.
At issue is how to best oversee the increased drilling in the gas-laden shale, which is about a mile underground throughout much of northern and western Pennsylvania. While the state Department of Environmental Protection has promised increased oversight, a rash of issues at various drilling sites has residents concerned that companies will strip out the gas and leave pollution in their wake.
The report lists various regulatory changes PennEnvironment believes would minimize the potential realization of those fears.
“We disagree with the idea that dilution is the solution,” said Brady Russell of the Clean Water Action organization.
He suggested that drilling companies should foot the estimated $300 bill for landowners to get baseline water testing before drilling begins because it can be difficult for landowners to find that money.
The report also calls for better right-to-know laws to force drillers to release the kinds and amounts of chemicals they use and account for the water they consume, while providing for public input that includes allowing health officials opportunities to review proposed permits.
The report also suggests rewriting the municipal code to give local officials primacy over state law for siting wells, which would overrule a recent state Supreme Court decision.
Regarding regulations, the report suggests expanding buffer zones around streams where drilling is prohibited and account for cumulative impacts of drilling when considering additional well permits.
The report calls for banning wastewater discharge to publicly owned treatment works and requiring recycling and reuse of all flow-back wastewater, while setting zero-discharge limits at treatment facilities.
While the report doesn’t address the threat of concentrating naturally radioactive refuse from the drilling process – an issue of concern in New York as the state considers regulations for drilling – Erika Staaf of PennEnvironment said the issue hasn’t come up in Pennsylvania because it doesn’t seem that anyone has tested for it yet.
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
DEP mulls changing discharge standards
State wastewater regulations for natural gas drilling may change to reduce pollution threat.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
Anyone concerned with pollution threats from increased natural gas drilling in Pennsylvania has likely encountered the phrase, “total dissolved solids” and recognizes its potential to be a problem.
However, fewer no doubt know how it can become a problem or that – because of issues emerging from the increased drilling – the state Department of Environmental Protection is considering changes to wastewater discharge standards for TDS that would become effective Jan. 1, 2011.
DEP is seeking public comment on the proposals, and citizens have until Feb. 5 to make them. Earlier this month, Penn State University released a document to help people understand the issues and participate in the process.
Rather than a specific chemical, TDS is a measurement of all dissolved matter – such as minerals, salts and metals – in a given water sample and can be naturally occurring. The federal safe drinking-water standard has a recommended level of 500 milligrams per liter for TDS, but no specific regulation. However, concentrations above that can damage treatment equipment and be toxic to aquatic life and people who drink it.
DEP is proposing the changes, which would limit the TDS levels in wastewater discharges, because it determined that some state waterways, including the West Branch of the Susquehanna River, don’t have the ability to absorb increased levels of TDS.
According to the Penn State report, most of the water used to prepare gas wells – often called “frack water” – is between 800 milligrams per liter and 300,000 milligrams per liter.
The industry estimates the amount of such high-TDS wastewater needing disposal in Pennsylvania will increase from about 9 million gallons per day in 2009 to nearly 20 million gallons per day by 2011, the report said.
DEP’s proposal would change two parts of state code.
First, it would require high-TDS discharges to be diluted to at least 500 milligrams per liter, plus lower thresholds for sulfates and chlorides and, for the oil and gas industry, limits of 10 milligrams per liter for strontium and barium.
Second, it would change water-quality standards for the actual waterway, which would, in turn, affect what could be discharged into it. That regulation change hasn’t yet been officially proposed.
To comment on the proposed rules, the Penn State report recommends several approaches: be specific in citing documents or the target of the comment, stick to comments on the proposed rule rather than water-quality in general, include personal experiences and note where the proposed rules are written unclearly.
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
Large gas company eyes area for drilling
EnCana Corp. will work with WhitMar Exploration Co. in seeking gas in the Marcellus Shale in the region.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
EnCana Corp., perhaps the largest natural-gas producer in North America, has chosen Luzerne County as its entry point into the Marcellus Shale, thanks to an exploratory agreement with WhitMar Exploration Co.
WhitMar, a Denver-based exploratory company, has already leased about 25,000 acres in Columbia and Luzerne counties, including in Fairmount, Ross, Lake, Dallas, Lehman, Jackson, Huntington, Union, Hunlock and the northwest corner of Plymouth townships.
However, it doesn’t have the resources to develop the entire leasehold, so it went looking for a partner. It found EnCana, a Calgary-based company with U.S. headquarters in Denver that produced 1.4 trillion cubic feet of natural gas in 2008, according to its Web site. For comparison, Chesapeake Energy, another industry leader with a local presence, produced 839.5 billion cubic feet that year, according to its 2008 annual report.
Spokesman Doug Hock said EnCana has no other interest in the Marcellus Shale, a ribbon of gas-laden rock about a mile underground that stretches from upstate New York into Virginia but centers on Pennsylvania.
The agreement, however, only commits EnCana to the two exploratory wells WhitMar has agreed in its leases to create, Hock said. “Further activity will really depend on the results of the first two wells,” he said. “The first couple wells that we’re drilling are really to prove it up and ensure that we have viable program there.”
Both wells, while exploratory, will also be put into production, he said, though it’s unclear where pipelines will be installed to connect the wells to regional gas lines.
The deal gives EnCana 75 percent interest in the leasehold and control as the operator, according to WhitMar spokesman Brad Shepard. “Being an exploration company, we’re a small company,” he said. “At least in the Marcellus, we get a partner to develop it with.”
He said there were several companies interested, but that EnCana was “the best fit” thanks to similar interests in testing, drilling and size of the project.
Both companies are also interested in increasing the acreage in the leasehold, he said. Within the area the current lease encompasses, there are perhaps 25,000 to 30,000 acres that aren’t leased, Shepard said. “What we’re trying to do now is basically trying to infill all the land that we have now,” he said.
According to Hock, EnCana, whose business is currently 80 percent gas production, is in the process of splitting the company into two “pure plays” to “enhance the value” of each: EnCana, which would focus entirely on gas, and Cenovus Energy Inc. to oversee its oil-sands operations in Canada.
“We’re in that process right now,” Hock said. “The deal is expected to close at the end of the month.”
EnCana slid on the New York Stock Exchange this week, from $59.40 per share on Monday to $56.11 on Friday.
Both companies are also interested in increasing the acreage in the leasehold.
Copyright: Times Leader
WVSA may treat wastewater from gas-drilling
Authority soliciting proposals now to raise money for upgraded pollution controls.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
The Wyoming Valley Sanitary Authority is investigating the feasibility of treating wastewater created from natural-gas drilling.
It hopes to offset some cost increases the authority will soon incur to make pollution-reducing renovations.
The authority published a request for proposals earlier this week, seeking bidders who could supply at least 500,000 gallons of wastewater daily for at least three years and pay at least 5.5 cents per gallon. Using both minimums, that would create daily revenue of $27,500.
Drilling for gas in the Marcellus Shale creates millions of gallons of wastewater that must be treated.
“The good part of that is that, instead of paying for fresh water from the Susquehanna (River), we would pre-treat this and they would reuse that to fracture new wells,” said Fred DeSanto, the authority’s executive director. “We know drilling’s going on; we are a wastewater treatment facility. That’s our business to treat it. We just don’t want time to go by as there’s water to treat.”
That means that, for now, the plant is seeking a permit from the state Department of Environmental Protection to treat up to 150,000 gallons per day in its sewage stream. The company, however, is reserving the right to inspect for pollutants in incoming drilling wastewater.
It requires pre-testing for “total dissolved solids” and “suspended solids” – generally a measure of the amount of minerals and chemicals in the water – and reserves the right to deny it.
DeSanto said that protects the authority’s equipment, which would “probably” be damaged by heavy loads of solids.
All testing and transportation costs would be paid by the drilling company, which also must carry $2 million in liability insurance, indemnify the authority from all risks associated with hauling the waste and provide a “blanket statement” that it isn’t “hazardous waste.”
The long-term goal is to build a million-gallon-per-day, closed-loop facility to “pre-treat” the water enough that it could be reused in industrial capacities and resell it to the companies that brought it in.In its bid request, the authority is looking to get at least half a cent per gallon for that water. That water would never touch the sewer operation or be discharged into the river.
“It’s the preferred method of disposal by DEP,” said John Minora, the president PA NE Aqua Resources, which is consulting on the project. “We’re left with a sludge cake that gets either landfilled or incinerated. … The water that’s left, it looks a little milky because it’s high in salt.”
That waste could then be mixed with effluent from the plant’s sewer operation to reduce solids levels, thus preventing more discharges to the river, he said. As pollution discharge credits, which would set a limit for how much facilities can discharge, become a reality, the reduced discharges could provide more revenue.
“I think the people who are environmental should be very happy about that,” Minora said. “Recycle and reuse, I don’t think it has to be an us-against-them” situation.
The revenue would go toward the millions the authority will have to spend to upgrade its system for upcoming requirements to reduce pollution in the Chesapeake Bay and to fix stormwater overflows that currently spill untreated sewage into the river whenever it rains heavily.
Potential revenues are “unknown right now because we don’t exactly what the treatment cost is going to be,” DeSanto said. “We feel that there’s enough there that we could make a profit to help our operating budget in the future, help our ratepayers.”
Bids are due by Nov. 16.
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
Energy company vows it’s cautious
Chesapeake Energy explains protections it practices during drilling for natural gas.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
PLAINS TWP. – As negative issues arise related to natural-gas drilling in the Marcellus Shale, at least one company is being careful to keep residents informed about the industry’s benefits and distance itself from concerns.
Brian Grove, director of corporate development for Chesapeake Energy Corporation’s eastern division, outlined benefits drilling for natural gas provides and discussed safety precautions.
Speaking on Thursday at the “Executive Management Breakfast Series” put on by Penn State Wilkes-Barre, a spokesman for Chesapeake Energy detailed the environmental protections his company uses when drilling and outlined the positive economic effect the industry has had in Pennsylvania.
Chesapeake has paid out $700 million to landowners since 2008, along with $100 million to contractors in the state and $500,000 to community projects in 2009, according to Brian Grove, the director of corporate development for the company’s eastern division.
But the growth – a plan for 200 more wells in 2010 – isn’t at the expense of precautions, he said. Wells receive five layers of protection from ground water, he said, and “all of the chemicals (used in the hydraulic fracturing process) are stuff you will find in your home.”
The statement comes weeks after driller Cabot Oil and Gas was fined by the state Department of Environmental Protection for spilling fluids that contaminated a nearby wetland and a day after the department announced another fine against Cabot and ordered that alternative water supplies be provided to Susquehanna County residents whose water wells have been contaminated with methane.
“Certainly, when an operation isn’t meeting the regulations laid out by the state, it doesn’t reflect well on the industry,” Grove acknowledged, adding that Chesapeake is striving to remain free of such image-tarnishing incidents.
At least one of Chesapeake’s operating practices impressed Mary Felley, the executive director at Countryside Conservancy in La Plume, for its environmental protection beyond state regulations. Drillers must collect water contaminated by drilling activities, but they’re only required to store it in open-air pits. When Grove noted that Chesapeake stores all of it in closed containers, Felley complimented the company on its additional protections.
Grove also assured members of the Wyoming County Landowners Group whose land rights are confirmed will be receiving the full up-front payments the group negotiated, which was a particular concern for Marisa Litwinsky, a financial advisor with Merrill Lynch. Group members and others who have recently signed with Chesapeake have worried that the driller might back out on paying the balance of those deals.
“We’re committed to” the land group, Grove assured. “Anyone who’s got a good title, they’re going to have a lease.”
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
Pa. officials fine Texas drilling firm
The Associated Press
DIMOCK — State regulators are fining a Houston-based company because its natural-gas drilling operations polluted residents’ water wells in northeastern Pennsylvania.
Department of Environmental Protection officials said Wednesday that Cabot Oil & Gas Corp. is paying $120,000 in connection with its finding that gas seeped underground into 13 water wells in Susquehanna County.
Cabot has drilled numerous gas wells into the Marcellus Shale rock formation in the rural county, about 15 miles south of the New York State border.
On Jan. 1, a water well exploded at a home nearby Cabot’s operations, prompting an investigation.
The department says its approval of Cabot’s well casing and cementing plans is now required before Cabot can drill.
It also says Cabot must develop a plan to permanently restore or replace the affected water supplies.
Copyright: Times Leader