Posts Tagged ‘Commissioner’

• Marcellus production “will enable us all to keep our farms”
  
• “Farmers are making investments in their farms that were just dreams before the Marcellus Shale”
• Marcellus development pumping “hundreds of millions of dollars into the state’s  economy”

Family farmers say Marcellus development “will enable us all to keep our farms”: “Some see it as a way to keep their farms, which have been in their families for generations. … Nor do they have concerns over the hydraulic fracturing process, which some environmentalists claim can contaminate water wells and pollute rivers and streams. “We’ve been stewards of the farms for years,” said Ward, a fourth-generation farm owner. McMurray’s family has owned its land since 1811, and Bird’s since 1821. “It will enable us all to keep our farms,” said Wright-Croft. Ward believes that farmers have the most to lose from gas drilling since they rely on private wells to water livestock as well as drink it themselves. “You’re not going to find anyone with more concerns about the water than us,” he said. (Observer-Reporter, 8/3/10)

Marcellus development pumping “hundreds of millions of dollars into the state’s economy”: “With lease payments ranging from $750 per acre to $3,600 per acre – and royalties set from 12.5 percent to 18.75 percent – the Marcellus Shale contracts Chesapeake has signed with local property owners has pumped hundreds of millions of dollars into the state’s economy. … The natural gas company presently employs 636 Mountain State residents, with plans to hire more local workers in the future once those potential employees receive proper training. Chesapeake has spent $46 million with West Virginia-based vendors so far this year, including $1 million in shops based in Marshall and Wetzel counties and several million dollars more with a company in St. Marys, W.Va. The company also donated more than $400,000 to community organizations within Marshall and Wetzel counties during the past two years, Chesapeake leaders note. (Wheeling News-Register, 8/1/10)

Marcellus bringing hope to family farmers: “As an accountant who works for many farmers in the northern tier, I have witnessed first-hand the financial stress this important industry has experienced for the past 30 years. In the past two years, I also see the hope that Marcellus Shale brings to these farm families. … Today, these farmers are making investments in their farms that were just dreams before the Marcellus Shale. Also because of these new investments by farmers, I see a rebuilding of the northern tier agriculture infrastructure that was at risk. (Daily Item, 7/28/10)

Marcellus production “good for everybody”; Helping counties “meet their bottom line”: “Marcellus Shale drilling is boosting local water sales and helping to push the Quemahoning pipeline close to its permitted capacity. Bruce Hottle, president of the Lincoln Township Municipal Authority, said the nonprofit has been selling close to 3 million gallons per month to Dallas-based Chief Oil & Gas. Drillers use several million gallons of water to “frack” each Marcellus Shale gas well. “It’s given us some decent cash flow we wouldn’t normally have,” Hottle said. “It’s probably doubled our water sales for the months of June and July.” … “This helps us get out of the hole sooner. It’s been good for everybody,” Hottle said. … As for the county, Commissioner Pamela Tokar-Ickes said the increased usage is helping them meet their bottom line. “The more water we sell the better for the Que pipeline project,” Tokar-Ickes said. “We hope it continues.” (Daily America, 7/30/10)

More new jobs on the way thanks to the Marcellus: “A partnership between Medico Industries Inc. and a South American company looks to tap into the Marcellus Shale natural gas drilling boom with the opening of a manufacturing facility in Hanover Township. … Medico Industries received a $500,000 low-interest loan through the Luzerne County Business Development Loan program to install and purchase machinery. The company is investing nearly $960,000 in the project. It’s estimated 20 jobs will be created. (Times-Leader, 7/31/10)

Marcellus-related jobs “another strong performer”: “The Pittsburgh region’s growth in all four of those sectors ranked between third and seventh best among the 40 largest regions in the country. Another strong performer was the natural resources and mining sector; although it only added 500 jobs, that was more than any region other than Houston, likely reflecting the impact of Marcellus Shale drilling. (Pittsburgh Post-Gazette, 8/1/10)

By Andrew M. Sederaseder@timesleader.com
Times Leader Staff Writer

Victoria Switzer watches the trucks, at least 100 of them she estimates, ramble past her Dimock Township home every day. They go back and forth from the Cabot Oil and Gas drill sites, hauling equipment, waste water and materials.

She worries what would happen if there was a spill, if the operator wasn’t properly licensed, if the truck wasn’t mechanically sound.

For years she’s been calling state officials and complaining about their speed, their actions and what she saw as violations. Last week some agencies heeded the call of Switzer and others like her and made a concerted effort to send a message to the truck operators that though they are permitted to operate, they need to do so legally.

During a three-day enforcement effort last week that focused on trucks hauling waste water from Marcellus Shale natural gas drilling operations across the state, the state police placed 250 commercial vehicles out of service.

State Police Commissioner Frank E. Pawlowski said state troopers worked in partnership with personnel from the Department of Environmental Protection, the Pennsylvania Public Utility Commission and the federal Motor Carrier Safety Administration as part of Operation FracNET.

In total, 1,137 trucks were inspected from June 14-16.

“Pennsylvania has experienced significant increases in heavy truck traffic in areas where Marcellus Shale natural gas drilling operations are taking place, particularly in Bradford, Clearfield, Susquehanna, Tioga and Washington counties,” Pawlowski said. “The process of hydraulic fracturing, or fracking, requires significant amounts of water to be delivered to the sites and later trucked away.”

He said the enforcement effort centered on identifying commercial vehicle safety deficiencies that could lead to crashes. Pawlowski said 131 of the 250 vehicles placed out of service were trucks hauling waste water. He said 669 traffic citations and 818 written warnings were issued as the result of waste water truck inspections. In addition, 23 of the 45 drivers placed out of service during the operation were waste water vehicle operators.

“As activities at natural gas sites continue to increase, it is important that everyone involved, including the waste transportation industry, understands Pennsylvania’s environmental and traffic safety laws and complies with them,” said DEP Secretary John Hanger.

“Cracking down, I’m thrilled to see it,” said Switzer, who is one of a dozen property owners in the Susquehanna County township that have had their well water polluted by oil drilling. “Better late than never.”

Mark Carmon, spokesman for DEP’s Northeast Regional office, said that three trucks were cited in Susquehanna County out of the 30 that were stopped. Two of the trucks were not carrying Prevention Preparedness Contingency plans, which list what chemicals are being hauled, emergency contact numbers in case of a spill and plans for cleanup. One of the trucks did not have proof of waste hauling certification, and one truck did not have its waste log book listing what it was hauling and from and to where.

Carmon said the operation provided “a good opportunity to check these trucks” and said it will be an ongoing measure.

Lt. Myra A. Taylor, a state police spokeswoman, said a decision was made to “make a concerted effort to blitz these particular areas,” in part, because of concerns raised by residents.

“I applaud the citizenry,” Taylor said. And she echoed Carmon’s comments that these inspections will not be a one-time event.

“We will be ever vigilant,” she said.

State Rep. Karen Boback, R-Harveys Lake, praised the offices involved in the operation.

“I applaud our state agencies and the state police for working together to monitor frack water hauling operations. It is vital that we continue to scrutinize every phase, aspect and offshoot of the drilling process, and I encourage law enforcement to persist in efforts to root out those operators who are not acting in accordance with Pennsylvania laws and potentially endangering the lives and health of Commonwealth residents, along with our environment,” she said.

Taylor said the truck violations found ran the gamut mechanical issues to overweight trucks. Driver citations included drivers operating without a proper license and drivers who were operating without enough rest or working too many hours in a day.

A list of what trucking companies were cited was not available by the state police or DEP.

A statement from the executive director of the Marcellus Shale Coalition, a pro-drilling organization, said steps have been taken and will continue to be taken to reduce gas-related truck traffic.

Copyright: Times Leader

The pursuit of natural gas on county land could endanger area water supplies, one leader says.

RALPH NARDONE Times Leader Correspondent

Opposition to local natural gas drilling continues to boil over. On Saturday, about 100 people gathered to voice their concerns about possible drilling at Moon Lake Park. The 650-acre park had been kicked around as a site with the blessing of county officials who were seeking a way to cash in on the local boom.

Organizers originally intended to conduct a nine hour “rally” there that included food vendors, family activities, music and more but could only meet briefly due to a lack of proper insurance coverage.

Janine Dymond from Harding, member of the Friends of Moon Lake and bike trail enthusiast said the county required by policy $1 million worth of insurance coverage for any large scale event on county property. She said when the group learned about the insurance they decided the estimated $1,300 in premiums to be cost prohibitive.

Still, they gathered to support each other, displaying signs of protest for the prospective drilling plans, and spit vitriol at Commissioner Steve Urban who supports gas drilling there.

Dymond said she personally gathered about 600 signatures on an anti-drilling petition.

“It’s hard not to get involved,” Dymond said.

Dr. Tom Jiunta from Lehman Township, one of the founders of the Gas Drilling Awareness Coalition, said the environmental cons of park drilling far outweigh the economic pros. Because of its proximity to the Ceasetown Dam, the fact most residences use well water and the recent issues concerning ground water pollution, drilling is too risky.

In addition, the amount of diesel fuel exhaust from the truck traffic and drilling machinery belched from a 24-hour industrial project is significant, he said. He spoke to people who have respiratory issues they attribute to drilling.

He said the gas industry often misleads about the actual economic value of drilling to Northeastern Pennsylvania. Most of the jobs produced will be for workers who come from out-of-state, he said. The gas taken locally will be sold in the global market to countries such as China, he added.

When talking about Moon Lake, Jiunta said the beauty of the park should be preserved as well as the health and safety of the residents.

Jean Whitesell from Hunlock Creek and Kathy Hopkins from Ashley, co-workers who visit Moon Lake on a regular basis, expressed their fears the park will become a drilling site. They were fishing with their children.

Whitesell said she was “upset” when she first heard about the drilling plans.

She said she is not opposed to gas drilling as long as it is done where it won’t “hurt anybody.”

Dymond said the Friends of Moon Lake thanked the Sierra Club for its help in fighting the drilling project. She said the group intends to organize a rally sometime in the near future.

Copyright: Times Leader

Jurisdiction over drilling for natural gas in the Marcellus Shale is subject of hearing.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

HARRISBURG – The chairman of the state Public Utility Commission is confident that Marcellus Shale development will stabilize prices not only of natural gas, but electricity prices as well, and is thrilled the natural gas industry supports the PUC’s oversight of pipeline safety in Pennsylvania.

Commission members on Thursday heard testimony from representatives of the natural gas industry, a federal pipeline safety official, the state consumer advocate and the director of the Pennsylvania Association of Township Supervisors on the commission’s jurisdiction as related to Marcellus Shale development.

“I think everybody is in agreement that this increased gas supply, whether the gas is sold in Pennsylvania or not, is going to have a depressing effect on the wholesale price of gas,” PUC Chairman James H. Cawley said after the hearing.

Irwin “Sonny” Popowsky, of the state Office of Consumer Advocate, testified that the retail and wholesale price level of natural gas “has been on a roller coaster ride for years.”

He said an abundance of natural gas should stabilize and ultimately lower the price of gas and electricity so that it is affected by supply and demand rather than politics in the Middle East.

Commissioner Wayne Gardner said he’s heard that many roads were severely damaged under Chesapeake Energy traffic.
David J. Spigelmyer, vice president of government relations for Chesapeake, said a harsh freeze-thaw season and the fact that many roads were never constructed with proper foundations resulted in the need significant road repairs. But the company is bonded to repair those roads and has hired 23 road contractors in Bradford County to repair them.

David M. Sanko, executive director of the Pennsylvania Association of Township Supervisors, said his concern is that state law requires bonds for roadwork in the amount of $12,500, but it could cost up to $100,000.

Commissioner Robert Powelson asked how the commission can be confident that the “self-policing system (of the gas industry) will work and that safety will be maintained?”

Spigelmyer said the industry has worked closely with the state Department of Environmental Protection to ensure the industry meets state requirements and noted that permit fees that fund inspections climbed from $100 to about $4,000.

Alex Dankanich, general engineer with the U.S. Department of Transportation’s Office of Pipeline Safety, testified that of the 31 states that produce natural gas, only Pennsylvania and Alaska lack the statutory authority to regulate gas gathering pipelines.

Cawley noted that the administration had been pushing for the PUC to obtain inspection authority because the administration doesn’t have the manpower.

Dankanich said the PUC would be reimbursed 80 percent of the cost for inspecting non-Class I pipelines – those surrounded by 10 or fewer homes within 220 yards of a pipeline in a 1-mile stretch. Those lines are exempt from federal inspection.

PUC Vice Chairman Tyrone Christy asked if Pennsylvania should also exempt Class I pipelines from inspection.

Lindsay Sander, a consultant for the Marcellus Shale Coalition, said she was comfortable with the exemption given the low number of Class I problems.

Cawley said the natural gas industry “seems to be bending over backwards to be responsible. But you’ve got to have the rules in place for everybody, including the potential bad apples who are going to try and take shortcuts.”

He said the commission is not trying to economically regulate the gas production industry.

“We’re not going to try and set the rates. We just want safety jurisdiction, whether they’re a public utility or not. And … the industry coalition, which has 170 members, support us adopting the federal standards. … They’ve said that’s fine and they’ve said they’re willing to help pay for it on a per-mile basis,” he said.

Cawley said the commission has submitted proposed statutory language to House and Senate oversight committees related to PUC safety regulation.

“One part of it has already been passed by the House almost unanimously. It would increase fines for violations to the federal level. It would go from $10,000 per day to $100,000 per day and up to $1 million overall. House Bill 1128, that could be the vehicle for getting it done. The Senate could amend it and send it back over or the House could give us this additional legislation, but this is our top legislative priority – pipeline safety,” Cawley said.

He said he also asked the industry for a commitment to use PUC’s certificated trucks for hauling equipment and supplies, “and they’ve committed to that, which is good. We’ve increased carrier enforcement in that area because we discovered that in their haste to get supplies in, they weren’t using PUC certificated carriers.”

“We’ve increased our enforcement, … and now that they know we’re watching, they’ll be more careful about the carriers they use,” Cawley said.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

County officials had been negotiating with EnCana Oil & Gas USA Inc. of Denver.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

An energy company that plans to drill for natural gas in the Back Mountain has advised Luzerne County officials that the company will not pursue a lease for natural gas drilling at Moon Lake Park.

County officials had been negotiating with EnCana Oil & Gas USA Inc. of Denver to drill at the park and tap lake water needed to help fracture rock to release gas.

“The county informed us of their interest in entering into a lease for the development of natural gas resources on the Moon Lake property,” EnCana spokeswoman Wendy Weidenbeck said in an e-mail.

Weidenbeck said that as with any business opportunity, companies must evaluate multiple factors to help guide their decisions.

“We carefully considered the potential needs of our business and concerns over the development of natural gas resources on recreational property. After careful consideration, we have decided that we will not pursue a lease to drill for natural gas resources on the Moon Lake property,” she said.

Commissioner Chairwoman Maryanne Petrilla said she has been out of the office after knee surgery and had not yet been briefed on the issue.

Commissioner Thomas Cooney said he had not talked with EnCana officials and that Gibbons had alerted him to the news on Friday.

Cooney said other energy companies might be interested in exploration at the county-owned park and the development of a request for proposals was not out of the question. However, “there has been no conversation leading that way right now,” he said.

Cooney said he did not know how far along talks about selling water from the lake at Moon Lake Park have come. But if the county were to negotiate the sale of water, there would have to be appraisals and bidding and permits would have to be secured, he said.

The park’s 48-acre, spring-fed lake holds millions of gallons of water and is 13.5 feet in its deepest spot, county officials have said. All park water drainage pipes also feed into the lake.

Cooney said he thinks the reaction of the Sierra Club to drilling at Moon Lake probably influenced EnCana’s decision.

An official with the Sierra Club’s Northeastern Pennsylvania chapter said in February that county commissioners didn’t have legal authority to allow natural gas drilling at the park, which is located in Plymouth Township.

Frank Muraca, who sits on the organization’s executive committee, had said much of the park land was purchased with state and federal funds in the 1960s through a program known as the Project 70 Land Acquisition and Borrowing Act.

Lands acquired through the act must be used for recreation, conservation and historical purposes unless approval is granted by the General Assembly, the governor and the state Department of Conservation and Natural Resources. Muraca had said he also found other legal and zoning stumbling blocks that would have to be met to allow drilling.

Muraca had initially presented the information to Commissioner Stephen A. Urban, who has said he couldn’t comment on Muraca’s assertions until he did his own research. He has said he is supportive of “responsible” drilling on county property to generate needed revenue.

Urban did not return a message seeking comment for this story.

The park officially closed Jan. 28 because commissioners stripped funding for staff and other expenses from the 2010 budget, saying that they could not justify non-essential expenses with a property tax increase.

Petrilla has said she is willing to consider any offer to generate revenue, as long as the park’s recreational atmosphere is not compromised. She also has said she would not support any offers that would drain or pollute the lake.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

YOU CAN practically hear the Luzerne County Commissioners yelling: “Eureka! Thar’s treasure in them thar’ hills.”

The trio knows that – much like a century ago – a potential financial bonanza lies below our feet in the form of a coveted fuel. This time, it’s not anthracite.

Instead, companies aim to extract natural gas from deep below Northeastern Pennsylvania’s crust, using new drilling technology to tap a rock formation known as the Marcellus shale. The drillers, and speculators hoping to profit by hoarding land-lease agreements, have knocked on doors throughout the region, promising to put money in the pockets of cooperative property holders.

Luzerne County officials rightly recognize that this region’s (second) energy revolution offers a rare opportunity.

If handled properly, it can provide a much-needed source of relatively inexpensive fuel for home-heating and other purposes. Plus, the industry can be a significant money-maker for private landowners as well as public entities, including the commonwealth (which controls state forests and game lands) and the county.

Pennsylvania’s natural gas boom, therefore, deserves to be handled with extreme care so that current residents and future generations reap the full benefits. The approach will require specialized knowledge of geological, environmental and legal issues, coordination among all involved parties and patience.

With no disrespect intended, this is not a job for the Luzerne County Commissioners to attempt on their own.

Commissioner Greg Skrepenak’s proposal to create a gas exploration task force, which will involve professionals, makes sense in the short term. After studying the issue, however, this task force might decide it’s more sensible to combine efforts with a regional or statewide group that has even more expertise and can leverage the best deals on behalf of the taxpaying public.

The commissioners could vote as soon as Wednesday to request proposals for drilling in the county-owned Moon Lake Park area. What’s the rush? Most advisers have been telling private property owners that there is no need to leap on this bandwagon; indeed, better deals probably can be secured at a later time and by coordinating efforts with surrounding property owners rather than trying to compete with them.

In recent years the county has entered into some poorly arranged contracts, such as the juvenile detention center deal. The stakes are too high to botch this one.

Unfortunately, the current commissioners might see natural gas leases as an easy out – an escape from the burdensome budget deficits that have become all-too typical here in recent years. It would be a mistake, however, to make hasty decisions for short-term gain that could impact this region and its residents for the next century.

Luzerne County

officials rightly recognize that this region’s (second) energy revolution offers a rare opportunity.

Copyright: Times Leader

Commissioners consider asking for proposals to drill at Moon Lake Park.

Having witnessed the natural-gas drilling boom both in other counties and for some local residents, Luzerne County officials are considering the windfall potential for county lands.

At its meeting on Wednesday, the county commissioners are expected to approve issuing a request for proposals to drill in a little more than 2,000 acres in Moon Lake Park. They’ll also likely vote on creating a gas exploration task force proposed by Commissioner Greg Skrepenak.

Commissioner Steve Urban said he’s been following the gas progress for about six months and feels now is the time to offer the park lands because surrounding landowners are seeking leases as well.

“People are already interested in the land around Moon Lake, and I’m optimistic they’d be willing to talk to us,” he said. “It’s good to be proactive.”

He said the going rates seem to be between $2,600 and $3,200 signing bonuses per acre and perhaps 18 percent royalties.

Beyond the benefits to the county, he suggested local customers would find a benefit in receiving domestically produced natural gas.

He said the drilling wouldn’t affect plans to construct mountain-bike racing courses there.

Skrepenak said he’d likely support offering the lands for leasing, but said the county should have fully researched the topic first.

“I definitely think we need to take this issue as far as we can,” he said.

The task force would gather information, but also be a source for residents and local companies seeking work with the gas companies, he said. It should be made up of county officials, other public officers and experienced professionals, he said.

The shale drilling has shown to be “recession proof” in Texas, he said, which is why he finds it an exciting consideration. “It is the hot topic,” he said. “It’s been seen as a positive thing for the most part.”

Dave Skoronski, director of the county Geographic Information System/Mapping Department, noted there are promising signs that companies are considering the county. Several companies in related industries have come to his office to buy the county’s map data.

“They’ve been coming, and some people who work at the desk said they were doing gas research,” he said, noting that Burnett Oil Co., Inc., Mason Dixon Energy, Inc. and Elexco Land Services, Inc. have purchased map information.

Panel created

Luzerne County Commissioner Greg Skrepenak was named to the County Commissioners Association of Pennsylvania’s Natural Gas Task Force.

The group has been established to identify issues related to exploration and development of natural gas in Pennsylvania and to advise on policy related to those issues. Skrepenak participated in the task force’s first conference call on Sept. 26.

Copyright: Times Leader