Posts Tagged ‘Department of Environmental Protection’

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.

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

Authorities allowed the company to resume work after corrective actions.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

The state Department of Environmental Protection announced on Thursday that it has fined Cabot Oil and Gas $56,000 for three polluting spills at one of its natural gas drilling sites in Susquehanna County.

The fine comes a little more than a month after the spills, which all occurred within a week of each other at the Heitsman well in Dimock Township and totaled about 8,400 gallons of fluids. Some of the liquid, which was a mix of mostly water and a gel that facilitates the drilling process, drained into an adjacent wetlands and Stevens Creek.

“The department presented a number to us and we thought under the circumstances that it was appropriate and not something that we wanted to fight about,” said Ken Komoroski, Cabot spokesman. “We’re just going to move forward.”

Within a few days of the spill, DEP ordered Cabot to halt hydraulic fracturing – the process that caused the spills – and submit an engineering analysis about what went wrong and how it will be avoided in the future.

Cabot’s report said the failure was caused by pressure surges and that significant elevation differences between where the liquid was stored and where it was being pumped to contributed to the problem.

The report includes a list of corrective actions that Cabot has agreed to take, among them providing better containment and pressure-regulating valves for sites where elevation is a factor.

DEP approved the report on Oct. 16 and allowed Cabot to resume “fracking.” The process forces water, sand and a mix of chemicals into the rock layer that contains the gas, causing fractures that release the gas up the well.

Gas drilling has boomed in the Northern Tier since fracking and horizontal drilling technologies have made it financially feasible for companies to drill into the Marcellus Shale, a layer of gas-laden rock that runs about a mile underground from New York into Virginia.

Copyright: Times Leader

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

TUNKHANNOCK – As if responding to previous community criticism about a similar facility, company officials hoping to build a drilling-waste treatment plant near Meshoppen said Tuesday recycling water is part of their plans.

“It makes sense to reuse this water,” said Ron Schlicher, an engineer consulting for the treatment company. “The goal here is to strive for 100-percent reuse, so we don’t have to discharge.”

Wyoming Somerset Regional Water Resources Corp. is proposing a facility in Lemon Township in Wyoming County to treat water contaminated during natural-gas drilling in a process called hydraulic fracturing, or “fracking.”

To do so, it requires a National Pollutant Discharge Elimination System permit from the state Department of Environmental Protection.

That process includes a period of public comment, for which the hearing at the Tunkhannock Middle School on Tuesday evening was held.

Wyoming Somerset is the second company to propose such a facility in Wyoming County. Two weeks ago, DEP held a similar hearing for North Branch Processing LLC, which wants to build a plant just outside Tunkhannock in Eaton Township to discharge up to 500,000 gallons daily of the treated waste into the Susquehanna River.

Citizens attending that hearing complained that the discharges could potentially harm the river’s ecology and suggested that the waste simply be recycled into other fracking jobs.

Wyoming Somerset’s proposal is to discharge up to 380,000 gallons daily into the Meshoppen Creek, but company officials said they hoped to sell it all back to drillers instead.

“The discharges need to be in place to make sure that the weather doesn’t have an adverse effect on operations of cleaning the water,” said Larry Mostoller, Wyoming Somerset’s president. “I’ll be willing to drink what we produce. I’ll be willing to drink what comes out of this plant, and you can hold me to that.”

That promise and the vague goal of full reuse didn’t sit well with the roughly 75 citizens who attended the hearing. Questioning everything from why the facility couldn’t guarantee zero discharges to its proposed site, residents came out squarely against the plan.

Many non-residents joined them, including two from Bucks County, one an environmental scientist and the other a lawyer, and a man from New Jersey.

Don Williams, a Susquehanna River advocate from Lycoming County, warned that cashing in on the gas-laden Marcellus Shale is “jeopardizing our land and our feature for the false promise of jobs” and money.

Of particular frustration for many were the unknown details about the plant’s design. Schlicher presented an overview of it, noting reverse-osmosis filters, evaporation tanks and a three-tiered output to provide drillers with water at various levels of treatment.

The water that could potentially be discharged would be “essentially meeting drinking water standards for most things,” Schlicher said, but not everything, including lead, aluminum and iron “because the surface water body can handle them,” he said.

Design specifics won’t be known until the second part of the application, when the company proposes how it will meet its discharge limits. That part likely won’t have a public hearing, DEP officials noted.

Those wishing to comment on the proposed facility may do so until Oct. 30 by contacting the DEP. The number for its Wilkes-Barre office is (570) 826-2511.

Copyright: Times Leader

Eileen Godin Times Leader Correspondent

LAKE TWP – Concerns over gas drilling and a nuisance property brought two different groups to Wednesday’s supervisors meeting.

Ron Kirkutis and others expressed concerns over possible air and water pollution caused by Marcellus Shale gas drilling.

Kirkutis said information he read revealed about 280 chemicals are used in the fluid the gas drilling companies use.

“Some chemicals are carcinogenic,” he said. “I have a newborn and a 3-year-old. What if that seeps into my well water?”

“I do not want to see a gas drilling operation going on next door,” he said.

Luzerne Conversation District member and Township Supervisor Amy Salansky said residents who lease their property should make sure the gas company is required to test the well water.

She also assured residents that no gas drilling permits have been issued in Lake Township.

Township Attorney Mark McNealis said the supervisors will not have much control over gas drilling.

“The supervisors do not oversee the zoning within the township. That falls under the Luzerne County zoning office, but talk to DEP (the state Department of Environmental Protection), talk to your agencies,” he said.

Also concerned with pollution, resident Leonard Ruotolo complained about a nuisance property.

Ruotolo along with residents Lewis and Edna Higgins, told the supervisors that William Harrison did not comply with the state DEP’s 45-day timeframe to clean up his property, and the situation is getting worst.

DEP issued a citation in August ordering Harrison to clean up three trash piles on his Tulip Road property.

The matter is now awaiting action by DEP’s compliance and legal teams.

McNealis said this is coming down to an enforcement matter. He said residents should contact the district attorney’s office and state Rep. Karen Boback, the county zoning office and the state police.

Copyright: Times Leader

Luzerne County property owners hope to have their own deal by year’s end.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

Lease signing begins today for members of the Wyoming County Landowners group who have accepted a gas-drilling offer from Chesapeake Energy.

The signings could foreshadow what other local landowners are hoping comes to them soon. The South West Ross Township Property Group and Columbia County Land Owners Coalition confirmed on Friday that they, too, are in talks with Chesapeake.

The Columbia group, which represents roughly 80,000 acres in Columbia, Luzerne, Sullivan and Lycoming counties, hopes to complete a deal before the end of the year, according to an e-mail sent out to its membership.

The Ross Township group, which includes roughly 10,000 acres around Ross Township, is affiliated with the Columbia group, but also making its own discussions with Chesapeake, said Ken Long, a member of the group’s executive committee.

Group leaders expect monetary terms to be similar to the one Chesapeake offered to the Wyoming group: a five-year lease at 20-percent royalties, plus a $5,750-per-acre sign-up bonus. It includes a five-year option Chesapeake could exercise for another $5,750 per acre.

But other recent events with drillers locally could foreshadow what landowner hope to never see. The state Department of Environmental Protection issued a notice of violation to Cabot Oil and Gas Corp. for a gas spill earlier this week and ordered the company to cease hydraulic fracturing in Susquehanna County until it had completed a comprehensive engineering assessment and updated its pollution-prevention plans.

The company is currently drilling seven new wells in the county that will require fracking, which forces water, sand and chemicals into the gas-laden Marcellus Shale to fracture the rock and release the gas.

The company has 21 days to complete the assessment and 14 days to update the plan. Once it’s approved, the company will have 21 days to implement the plan.

The situation is one that landowners like the Wyoming group hope to avert with their in-depth leases. The group has been split alphabetically for this weekend’s signing. Those with surnames beginning with “A” through “L” should show up between 9 a.m. and 7 p.m. on Saturday at the American Legion Post 510 in the village of Black Walnut on U.S. Route 6 between Laceyville and Meshoppen. Everyone else is assigned to between 10 a.m. and 4 p.m. on Sunday. Those who can’t make their assigned day may show up on the other one.

Landowners who can’t make either day should be receiving an e-mail with documents that need to be signed and mailed to Chesapeake. The $1,000-per-acre initial payment will be sent by mail.

On the Web

To sign up property for a gas lease: http://forms.askchesapeake.com/landowner

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

Copyright: Times Leader

MARC LEVY Associated Press Writer

HARRISBURG— Citing three recent chemical spills at one well site, Pennsylvania regulators said Friday they had ordered Cabot Oil and Gas Corp. to halt its use of a drilling technique that uses liquids to fracture rock and release natural gas.

The state Department of Environmental Protection’s order applies to eight of Cabot’s drilling sites, all in Susquehanna County in northeastern Pennsylvania.

The company, which received the order Thursday, voluntarily shut down its use of the drilling technique — called hydraulic fracturing, or “fracking” — at the spill-plagued site there earlier this week. It has seven other drilling sites that eventually will require fracking to complete.

“The department took this action because of our concern about Cabot’s current fracking process and to ensure that the environment in Susquehanna County is properly protected,” the DEP’s northcentral regional director, Robert Yowell, said in a statement.

Under the state’s order, Cabot must complete a number of engineering and safety tasks before it can resume its fracking process as it drills into the potentially lucrative Marcellus Shale formation.

Cabot spokesman Ken Komoroski said Friday that the company disagrees with some of the agency’s allegations in the order, but it is committed to completing the tasks required by the order.

Copyright: Times Leader

The initial events polluted a wetland and caused a fish kill in Susquehanna County.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

Cabot Oil and Gas has been issued a letter of violation for two liquid-gel spills last week at the company’s Heitsman natural-gas well pad in Susquehanna County, the state Department of Environmental Protection announced on Tuesday.

The spills of about 8,400 gallons, which polluted a wetland and caused a fish kill in Stevens Creek, were followed up by a third spill at the site on Tuesday morning, according to DEP spokesman Dan Spadoni.

A hose burst, according to DEP, and released about 420 gallons of the same lubricant. A catch basin retained most of it, Cabot spokesman Ken Komoroski said, but it’s unknown what happened to 10 gallons.

He said he was unaware of the spills causing any environmental damage, but acknowledged that a dam created to block the contaminant caused flow problems and that DEP noticed “the minnows downstream were distressed and/or swimming erratically.”

“We think that it’s important to residents that no contaminants from the spill have compromised Stevens Creek,” he said.

The spilled material, known as LGC-35, suspends sand in water to fracture rock in the gas-drilling process used in the Marcellus Shale region.

LGC-35 is a “potential carcinogen,” according to its Material Safety Data Sheet, and can cause eye, skin and respiratory irritation, along with “central nervous system effects,” such as dizziness and headaches.

Komoroski said the drilling contractor, Halliburton, has since revised the safety sheet to exclude the carcinogenic reference because the potential cancer-causing agent is a “potential contaminant” to the gel, not part of its formula. Halliburton told Cabot the contaminant wasn’t present in the spilled batches, but Cabot is performing its own testing to confirm that, Komoroski said.

He added that Cabot feels Halliburton should have been cited for the spill. Halliburton had flushed the wetlands with clean water and collected the effluent before the third spill, Spadoni said, and it won’t be known whether the land needs to be excavated until results from soil samples are announced. “I would anticipate that would be done fairly soon,” Spadoni said.

Cabot has 10 days to respond to the violation notice with how it plans to further clean the affected area and prevent future spills. DEP may assess a civil penalty in the case, for which Komoroski said Cabot would seek compensation from Halliburton.

Copyright: Times Leader

Firm with substantial holdings in Luzerne County taking next step toward exploration.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

WhitMar Exploration Co., the only gas-drilling company so far to have leased substantially in Luzerne County, plans to begin drilling by the middle or latter part of next year, according to the company’s president.

“Right now, we’re just filing for some permits for two, possibly three wells we want to drill,” said Whit Marvin, who heads the Denver-based company. “We do plan on drilling it and testing it for the Marcellus Shale.”

Throughout 2009, WhitMar has leased more than 22,000 acres in, among other places, Fairmount, Ross, Lake, Lehman, Union, Hunlock, Huntington and Dallas townships with little money upfront by offering landowners a contractual guarantee to begin drilling within two years.

The contract also guaranteed permitting within the first year, and Marvin said that process is on track. The company is filing for drilling and water-consumption permits from the state Department of Environmental Protection and the Susquehanna River Basin Commission, and is looking into any other permits it might need, he said.

From there, the company will negotiate with the individual landowners about siting for the well pads and gaining access to them, he said.

Much of that will be based seismic testing that’s being done, the results of which Marvin expects before the end of the year. “In essence, you’re using ultrasound. You’re looking for anomalies under the surface … that would be attractive to drill into,” he said. “We can make some geologic interpretation, (but) it’s definitely not an exact science.”

A drilling contractor hasn’t been hired yet, he said, but the company has begun work elsewhere in the shale. It has leased “large blocks” in Lycoming, Wayne and Susquehanna counties, as well as in some counties in New York’s southern tier, he said. Of that, wells are being drilled in Chemung County, N.Y., and preparations for drilling are being made in Susquehanna and Lycoming counties, he said.

In Lycoming County, the industry is moving so fast that companies needing and offering services aren’t able to connect, according to Jeffrey Lorson, an industrial technology specialist at the Pennsylvania College of Technology.

For that reason, the college and a group of organizations interested in the industry are sponsoring a business-networking expo today. Lorson, who heads the college’s Marcellus Shale Education & Training Center, said about 130 vendors are scheduled to be at the free-admission event at the Hughesville Fairgrounds.

If you go

What: Business-networking expo for the gas-drilling industry

Where: Hughesville Fairgrounds, Lycoming County

When: Today, 10 a.m. to 3 p.m.

Description: About 130 vendors are meeting to display their goods and services, and to see the goods and services other companies are offering.

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

Copyright: Times Leader

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

About 8,400 gallons of a gel used in drilling natural-gas wells was spilled on Wednesday at a well being drilled in Dimock Township for Cabot Oil & Gas, the state Department of Environmental Protection announced Thursday.

Spilled at the Heitsman well site, the substance affected an unknown amount of “shallow wetland,” said company spokesman Ken Komoroski.

DEP and state Fish and Boat Commission officials were on hand Wednesday and Thursday as a crew cleaned up and contained the material, said DEP spokesman Mark Carmon. It may have gotten into Stevens Creek, he said.

“What was done was the spilled material was immediately contained” using an eight-man crew, Komoroski said. “The gel was able to be removed by vacuum trucks.”

The spill occurred as Halliburton was using a fluid to fracture the Marcellus Shale and release the natural gas within it, he said. Baker Tank, the contractor responsible for tanking and piping for the “frack” job, allowed a pipe to come loose and release the gel, he said.

“This is certainly disappointing to Cabot that this occurred,” Komoroski said. “On the other hand, these are the types of things that are typically unforeseeable and it’s important to react to it when it occurs.”

The slippery substance is “relatively innocuous,” he said, but “does have the potential for eye, skin and respiratory irritation.” Used to help suspend sand particles evenly throughout the so-called fracking fluid, it’s made of “paraffinic material” and polysaccharides, or something like fluid wax and starch.

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The company hopes to see more than two dozen wells drilled on its property.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

MEHOOPANY — In October, drilling for natural gas will begin at the Procter & Gamble plant in Mehoopany, and, if geologic estimates pan out, the company hopes to eventually see more than two dozen wells drilled on its property, saving it “tens of millions” of dollars annually for years to come.

The Wyoming County plant consumes about 10 billion cubic feet of natural gas a year that is piped up from the Gulf Coast, company spokesman Alex Fried said. The hope is that drilling on its own property will alleviate much of that need.

“If the wells are productive, sure there’s the possibility. We’ve got enough property there,” Fried said. “If they can supply that, I’ll gladly take it because I’d rather get it from under my own ground.”

Located in Wyoming County, the plant sits in a potentially productive section of the Marcellus Shale, the layer of rock about a mile underground stretching from New York to Virginia that has natural gas locked within its pores. Though it was known about for decades, accessing the rock has only recently become financially feasible with advancements in technology.

Colorado-based Citrus Energy Corp. contracted with P&G to construct five well pads at the company’s 1,300-acre property on the bank of the Susquehanna River. The township gave approval for all five sites, as did the state Department of Environmental Protection for the erosion and sedimentation plans.

Additionally, Citrus got a permit in December from the Susquehanna River Basin Commission to withdraw 499,000 gallons of water per day from the river. It has been bonded with the Pennsylvania Department of Transportation to cross state Route 87 and signed a road-maintenance agreement to use Carney Cemetery Road to access the sites.

Citrus still needs drilling permits from DEP for two sites, but Fried said the sites currently aren’t necessary. “The (sites) at the westernmost and easternmost part of our property aren’t going to be built until next year,” he said.

Starting in October, a well will be drilled at each of the middle three pads. Next year, if the geological indications look good, the company will consider drilling the wells deeper by going horizontally through the shale seam.

After that, the focus will shift to the two remaining pads.

If that all works out, Fried said, P&G could lease land at a 300-acre warehousing site about a mile from the plant, where at least one more pad could be built. In all, Fried estimated, perhaps 30 to 35 wells could be drilled.

Fried declined to discuss the royalty deal struck with Citrus, but described it as “very competitive” because the company could offer a variety of advantages, including access to water, industrial zoning and a direct connection between the buyer and seller.

It also boasts rail access, which Fried said could be used in the future to haul away the contaminated fluid that’s used to break open the rocks and release gas.

The drillers “can haul away 35,000 gallons at a time on a tanker car,” Fried said.

Another benefit is that the gas doesn’t have to go far to get used. “The pipeline will bring it right to the plant, so we’ll still get our royalty, except it just will be a discount off the price of the gas that we’re purchasing,” Fried explained.

Fried said interest in inking a deal came from both sides. He began researching the possibilities at the beginning of the year, around the same time unsolicited calls started rolling in from gas companies.

Originally, the companies simply wanted to lease the land and sell the gas, but Fried had another idea – keeping the gas at home.

“In many cases, they just came in and said, ‘We want to lease,’ ” he said. When he told them how much gas P&G would be willing to buy each year, “their jaws dropped and hit the floor,” Fried said.

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