Posts Tagged ‘Department of Environmental Protection’
Consequences of gas drilling still unknown
Firm accused of causing gas infiltration, but it’s unclear if rules knowingly violated.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
Cabot Oil & Gas Corp. caused natural gas to infiltrate into at least nine homes in Susquehanna County, according a letter of violation from the state Department of Environmental Protection, but it remains unclear whether Cabot knowingly violated any regulations.
“The more important part of the investigation is still ahead of us,” DEP spokesman Mark Carmon said. “We know where it came from. The two more important things are how did it get there … and more importantly, how do we get it out of the wells.”
The company, however, is not confident in DEP’s findings, according to spokesman Ken Komoroski, believing the letter is “unnecessary” and claims as fact conclusions that haven’t been proven.
The situation has become an example of a statewide issue regarding the unknown consequences of gas drilling. Water contamination concerns have caused environmental agencies, including DEP and the Susquehanna River Basic Commission, to increase their regulation and oversight, hindering drillers’ efforts to secure permits quickly.
The letter cites Cabot for an “unpermitted discharge of natural gas” into state waters, for failure to prevent the discharge and failure to submit certain records on time. Though no financial punishment has been levied, Cabot was told to install gas detectors in nine homes where methane was detected in water wells and to continue providing water to four of those where there’s a safety threat from gas buildup, Carmon said.
“It’s disappointing to have a letter which is, at best, premature directed to the company that it violated environmental standards when that conclusion hasn’t been reached yet,” Komoroski said. “We’re hopeful, and I stress hopeful, that our hydrogeologist will actually be able to determine what caused the natural gas to be in the water. We don’t know that we’ll be able to do that.”
Cabot hit a bump on Jan. 1 in its exploration for natural gas in the Marcellus Shale when the cap exploded off a private water well near one of the company’s drilling sites.
While drilling hasn’t come to Luzerne County yet, companies have expressed interest in properties along its northern border. Fairmount Township Supervisor David Keller said several properties have been leased for years, and hundreds of acres, including his 90, were scheduled to be leased before the economic recession hit the industry. “The economy fell apart before they got the money to us,” he said.
The company and DEP agree that the gas isn’t from Marcellus Shale, a pipeline leak or naturally occurring sources above ground. They also concur that the gas is likely from a gas-laden upper layer of underground Devonian shale, of which the Marcellus Shale is a component but thousands of feet deeper, Carmon said. Marcellus Shale is generally at least 5,000 feet underground, while DEP determined the gas contaminating the water wells came from a shale layer roughly between 1,500 feet and 2,000 feet deep, Carmon said.
The company has cemented the upper Devonian shale layers of several wells, effectively extending the cement seals from the bottom of the water-bearing region, where the seals usually stop, to the bottom of the upper shale layers. The department has been trying to isolate the exact source of gas, seeing whether the extended seals produce a drop in water-contamination levels, Carmon said.
Because the method of contamination hasn’t been determined, Carmon said it’s too early to tell if Cabot knowingly violated regulations. “I’m not aware of anything blatant or anything like that, but, again, we want to know how did it happen,” he said.
Komoroski said the company is concerned about the effect the letter will have on its public image, particularly since it questions many of the department’s conclusions. It believes it filed all drilling reports on time, and that the gas detectors aren’t necessary. In fact, Komoroski said, the product DEP suggested Cabot buy wasn’t even a gas detector.
Cabot plans to meet DEP’s deadline for a response and is also scheduling an in-person meeting, as requested.
Copyright: Times Leader
Bids sought for gas drilling leases at Moon Lake
More than 650 acres are available. Drilling firms being contacted directly.
By Rory Sweeneyrsweeney@timesleader.com
Staff Writer
Luzerne County began seeking bids Monday to lease more than 650 acres at Moon Lake Park for natural gas drilling.
In an effort to entice a bidder, county engineer Joe Gibbons said he is contacting drilling companies directly.
“I’m trying to swing it in our favor. I’m sending e-mails out to the gas industry to see if anyone’s interested in receiving a set of bid documents,” he said. “It’s up in the air because the commodities are in the tank right now. … I’m kind of optimistic. I hope we get somebody.”
Potential bidders can review and pick up the documents at the county property and supply office in Penn Place at 20 N. Pennsylvania Ave., Wilkes-Barre. The bids are due by 2 p.m. April 23, but must be pre-qualified by April 9.
The proposal is modeled, Gibbons said, on that used by the state Department of Conservation and Natural Resources.
The request for proposals was structured, he said, so that the county receives several revenue sources from the deal and retains authority over where drill pads would be located in the park. “The last thing I want to do is make the place look like an open construction site. I want to maintain its recreational integrity. It’s just a unique project,” he said.
The county would receive income from the rental of the drilled acreage; the sale of the timber felled when preparing the drilling sites; other marketable fluids, such as methane or oil, that are extracted from the drilling; and storage fees for gas that is stored when an exploratory well is drilled, but capped until it can be hooked up to a pipeline, he said. “They can have the storage, that’s fine, but we get the storage rental,” he said.
All bidders would have to offer at least 16 percent royalties on the price at the well head for any marketable fluids it produces, he said.
The winning bidder will offer the highest initial-year rental fee for the acreage, he said, which was set for at least $500 per acre. After that, the fee drops to between $10 and $20 per year, he said, but there is a stipulation that drilling begin within a year.
The winning bidder would post three bonds, including one to ensure the site is restored after drilling concludes, he said. “I put restrictions on where they could take water from and how much they could take, even above and beyond what DEP (the state Department of Environmental Protection) would issue in a mining permit,” he said.
The bids would also have to be pre-qualified to ensure they are from actual drilling companies planning development and not land-holding companies expecting to resell the land, he said. “If we do get a lease, I want to deal directly with the gas company. I don’t want to go through a middle man,” he said.
Copyright: Times Leader
DEP: Firms face lake water snags
Gas drillers’ access to Harveys Lake water doesn’t seem likely.
HARVEYS LAKE – The borough is girding itself against potential plans to use lake water for natural-gas drilling, but the state Department of Environmental Protection thinks attempting to gain access to the water might be more trouble than it’s worth.
At its recent monthly meeting, borough council had solicitor Charles McCormick write to the Susquehanna River Basin Commission noting in the letter that the council “strongly opposes &hellip any consumptive use of water from the tributary system of Harveys Lake.”
Council became concerned after receiving a phone call and a notice. The notice was of Chesapeake Energy’s request to increase its one-day water-removal limit from the basin to 20 million gallons, and the phone call was from an engineering firm representing a gas company.
Brent Ramsey, an environmental scientist with Harrisburg-based international engineering consulting firm Gannett Fleming, had asked who owned the water rights at the lake and if the water could be procured for a well-drilling client, borough secretary Susan Sutton said.
He also called the borough’s Environmental Advisory Council asking similar questions, EAC secretary Denise Sult said.
Ramsey said the client directed that the operation be kept confidential, but acknowledged that his company’s involvement is in securing water-use permitting and that approval for a source of water hasn’t yet been secured. He refused to comment on whether the lake was still a target or if other sources were being sought.
Tapping the lake’s resources might prove difficult, however, said DEP spokesman Mark Carmon. “There’s been a long-standing question mark about who owns the bottom of the lake,” he said. “It’s probably a lot more complicated that it’s worth, in a legal sense, for anybody.”
He said the borough doesn’t own the water and individual lakefront landowners would have to be contacted. Deeds would have to be checked for exact descriptions of how far out into the water each property border protrudes. Any user-landowner agreement would still need to get SRBC approval “and face the wrath of the neighbors on each side of them,” he said.
“We think that’s the way it would play out,” he said.
He said that he wasn’t aware of any proposals or approvals of water usage in Luzerne County for gas drilling.
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
State seen to hinder gas drilling
Industry reps cite permitting delays; DEP head says issues to be resolved.
DALLAS TWP. – Representatives from every aspect of the state’s burgeoning natural-gas drilling industry met on Tuesday and, though differing on specifics, emphasized that Pennsylvanians stand upon a multibillion-dollar windfall, but only if the state streamlines its permitting process.
The hearing at Misericordia University was organized by the state Senate Republicans’ policy committee to identify potential problems with drilling the Marcellus Shale about a mile underground, but the senators instead were told that many of the problems lie with the state itself.
“Fundamentally, what the industry has said to us is, ‘We need to know what the rules are,’” said Tom Beauduy, the deputy director of the Susquehanna River Basin Commission. The commission oversees water removal from the river basin.
Industry representatives were dire with their characterizations. The industry is experiencing “permitting delays unlike we have ever seen in any other state,” said Wendy Straatmann, president of Ohio-based Exco-North Coast Energy Inc. “Why would I spend so much of our company’s time and resources when I can go to some other state and use the gas and oil manual and follow the regulations?”
Ray Walker, a vice president with Texas-based Range Resources Corp., agreed that an inclusive regulations manual would help companies “put our money into protecting the environment and not paperwork.” He noted that smaller companies are considering drilling here, but won’t if the permitting process remains slow and taxes increase. That could keep development slow, he said.
That’s a prospect that few at the hearing wanted. John Hanger, the acting secretary of the state Department of Environmental Protection, assured that his agency was “working to make sure that gas can be produced and water protected.” Part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock, and Hanger said his favored alternative was to find ways for the companies to simply inject them underground.
DEP would need to increase its regulatory force to keep up with the permitting and inspections demand predicted based on industry desires, he said, noting the department has recently requested substantially increasing its well-permitting fees.
Still the Republican senators felt DEP is clamping down too tightly. “When I ran for Senate, I was mad at the state for over-regulating my industry,” said Sen. Mary Jo White, R-Venango County, who had worked for an oil corporation. “I think we’re heading down that road again.”
William Brackett, the managing editor of a newsletter that reports on the Barnett Shale, said gas drilling there “is a prime reason the north Texas economy has only caught a cold and not the flu.”
John Hanger, acting DEP secretary, said part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock.
Copyright: Times Leader
State seen to hinder gas drilling
Industry reps cite permitting delays; DEP head says issues to be resolved.
DALLAS TWP. – Representatives from every aspect of the state’s burgeoning natural-gas drilling industry met on Tuesday and, though differing on specifics, emphasized that Pennsylvanians stand upon a multibillion-dollar windfall, but only if the state streamlines its permitting process.
The hearing at Misericordia University was organized by the state Senate Republicans’ policy committee to identify potential problems with drilling the Marcellus Shale about a mile underground, but the senators instead were told that many of the problems lie with the state itself.
“Fundamentally, what the industry has said to us is, ‘We need to know what the rules are,’” said Tom Beauduy, the deputy director of the Susquehanna River Basin Commission. The commission oversees water removal from the river basin.
Industry representatives were dire with their characterizations. The industry is experiencing “permitting delays unlike we have ever seen in any other state,” said Wendy Straatmann, president of Ohio-based Exco-North Coast Energy Inc. “Why would I spend so much of our company’s time and resources when I can go to some other state and use the gas and oil manual and follow the regulations?”
Ray Walker, a vice president with Texas-based Range Resources Corp., agreed that an inclusive regulations manual would help companies “put our money into protecting the environment and not paperwork.” He noted that smaller companies are considering drilling here, but won’t if the permitting process remains slow and taxes increase. That could keep development slow, he said.
That’s a prospect that few at the hearing wanted. John Hanger, the acting secretary of the state Department of Environmental Protection, assured that his agency was “working to make sure that gas can be produced and water protected.” Part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock, and Hanger said his favored alternative was to find ways for the companies to simply inject them underground.
DEP would need to increase its regulatory force to keep up with the permitting and inspections demand predicted based on industry desires, he said, noting the department has recently requested substantially increasing its well-permitting fees.
Still the Republican senators felt DEP is clamping down too tightly. “When I ran for Senate, I was mad at the state for over-regulating my industry,” said Sen. Mary Jo White, R-Venango County, who had worked for an oil corporation. “I think we’re heading down that road again.”
William Brackett, the managing editor of a newsletter that reports on the Barnett Shale, said gas drilling there “is a prime reason the north Texas economy has only caught a cold and not the flu.”
John Hanger, acting DEP secretary, said part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock.
Copyright: Times Leader
Pa. considers adding natural gas to the tax rolls
By MARC LEVY Associated Press Writer
HARRISBURG, Pa. (AP) _ The land agents, geologists and drilling crews rushing after the Marcellus Shale are raising something besides the natural gas they’re seeking: Talk of a natural gas tax.
Thanks to a state Supreme Court decision six years ago, Pennsylvania is now one of the biggest natural-gas producing states — if not the biggest — that does not tax the methane sucked from beneath its ground.
But momentum is gathering to impose such a tax. The Marcellus Shale — a layer of black rock that holds a vast reservoir of gas — is luring some of the country’s largest gas producers to Pennsylvania, and state government revenues are being waylaid by a worldwide economic malaise.
A spokesman for Gov. Ed Rendell says the administration is looking at the idea of a tax on natural gas, but a decision has not been made. Typically, Rendell does not reveal any tax or revenue proposals until his official budget plan is introduced each February.
Senate Republicans are planning a November hearing at Misericordia University in northeastern Pennsylvania to look at what effect can be expected on local governments if Marcellus Shale production lives up to its potential.
Local officials worry about damage to local roads ill-suited for heavy truck traffic and equipment. School districts could be strained by families of gas company employees moving into town. And some residents are concerned about gas wells disrupting or polluting the water tables from which they draw drinking water.
Legislators must find the fairest way for companies to share those costs, whether by levying a tax or through some other means, said Sen. Jake Corman, R-Centre, the GOP’s policy chairman.
“I do think there is an understanding that some sort of compensation for municipalities is warranted,” Corman said. “We just have to figure out the best way to do that.”
So far, drilling activity is under way on the Marcellus Shale in at least 18 counties, primarily in the northern tier and southwest where the shale is thickest, according to the state Department of Environmental Protection.
Land agents are trooping in and out of county courthouses to research the below-ground mineral rights. At least several million acres above the Marcellus Shale have been leased by companies in West Virginia, New York and Pennsylvania.
Just this week, Range Resources Corp. and a Denver-based gas processor said they have started up Pennsylvania’s first large-scale gas processing plant, about 20 miles south of Pittsburgh.
And CNX Gas Corp. announced that a $6 million horizontal well it drilled in southwest Pennsylvania is producing a respectable 1.2 million cubic feet a day — a rate it expects to improve in coming weeks.
In the opposite corner of Pennsylvania, drilling pads are now visible on Susquehanna County’s farmland, and hotel rooms are booked with land agents and drilling crews.
“It is the talk at the coffee shops, at the local grocery store, the gas station — everybody,” said state Sen. Lisa Baker, R-Luzerne.
Activity is still in the early stages, as exploration companies work to confirm their basic assumptions about the potential of the Marcellus Shale reservoir, and probe for the spots with the greatest promise, analysts say.
Industry representatives say they oppose a tax, and Stephen W. Rhoads, the president of the Pennsylvania Oil and Gas Association, questioned the wisdom of imposing a tax on gas production that is still speculative.
In some natural-gas states, a tax is collected based on a company’s gas production by volume.
But in Pennsylvania, the Supreme Court ruled in 2002 that state law did not allow counties, schools and municipalities to impose a real estate tax based on the value of the subsurface oil and gas rights held by exploration companies.
An appraiser’s study presented last year during a House Finance Committee hearing estimated that the court’s decision had cost Greene, Fayette and Washington counties up to $30 million in county, school and municipal tax revenue.
The state’s county commissioners and school boards support the resumption of some type of taxing authority — although that could mean landowners would get smaller royalty checks.
Regardless, Doug Hill, the executive director of the County Commissioners Association of Pennsylvania, said the matter is one of basic fairness since coal, gravel and limestone are assessed.
“The bottom line is it isn’t a windfall issue,” Hill said. “It’s a tax equity issue.”
___
Marc Levy covers state government for The Associated Press in Harrisburg. He can be reached at mlevy(at)ap.org.
Copyright 2008 The Associated Press.
Pa. said to be ill-equipped for gas-drilling rush
By MARC LEVY Associated Press Writer
HARRISBURG, Pa. (AP) _ A top state environmental official says Pennsylvania is ill-equipped to handle the huge influx of interest in drilling for a potentially lucrative natural gas formation.
John Hanger, the acting secretary of the state Department of Environmental Protection, made the comments during a hearing in Harrisburg before the state House Environmental Resources and Energy Committee.
Hanger told lawmakers that he needs dozens more employees to review drilling permit applications and inspect drilling sites over the Marcellus Shale gas formation.
He also said he is concerned the state will run out of capacity to treat the contaminated water left over from the drilling process, but that state laws are largely adequate for protecting the environment.
Copyright 2008 The Associated Press
Posted at: Times Leader
No gas well permits issued for Luzerne County
But experts say that doesn’t mean drillers won’t eventually explore here.
None of the 73 permits the state Department of Environmental Protection issued Wednesday for natural gas wells in the Marcellus Shale was in Luzerne County.
That doesn’t necessarily mean drillers aren’t interested in looking for gas here, experts say. But a combination of factors may slow activity compared to other parts of the state.
“I’m sure it’s still in the mix,” said Stephen Rhoads, president of the Pennsylvania Oil & Gas Association. “The work in trying to explore and analyze for natural gas in the Marcellus Shale in the region … is only beginning in the northeast” region of Pennsylvania.
Energy companies and geologists have estimated for decades that billions of dollars worth of natural gas is locked in a layer of rock called Marcellus Shale that runs about a mile underground from upstate New York down to Virginia, including through the northern tier of Pennsylvania. Only recently have technological advances and higher energy prices made extracting the gas financially feasible.
Western Pennsylvania has much more drilling infrastructure, such as wastewater treatment facilities, than this region, Rhoads said, which explains why the majority of the permits issued on Wednesday were for western counties.
He also attributed the companies’ deliberate pace to budgetary constraints, a lack of drilling rigs and an incomplete grasp of the geology.
“It takes a lot of time and money to understand what lies more than a mile underground,” he said. “These companies are investing a lot … to make sure they get it right.”
While some properties have been leased in the northwestern section of Luzerne County, Mark Carmon, regional DEP spokesman, said there are no drilling permits in the county. He was unaware of any awaiting approval, either, but cautioned that doesn’t mean county landowners have missed the windfall.
All the assurances don’t make the waiting any more palatable for landowners.
“It’s pretty frustrating,” said Jack Zucosky, whose Luzerne County Landowners group is looking to get its more than 6,000 acres leased. “We’ve been close a few times with a few companies, but nothing definite yet.”
He’s confident Luzerne County property will get leased, but not until next year at the earliest.
“I really think what’s going on here is natural gas (prices) dropped a lot, and these companies are having cash flow problems,” he said. “It’s a waiting game right now.”
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader
Groups eye hauling well wastewater
In addition to anticipated jobs and profits from natural-gas drilling, water usage should increase as regional operations get under way.
That could mean more income for water haulers and sanitary authorities.
Drilling companies have been ramping up activities because an underground rock layer known as Marcellus Shale is expected to contain billions of dollars in natural gas deposits.
Each well-drilling operation could require up to 1 million gallons of water. While the water can be reused, it eventually must be disposed of at a treatment facility.
The Wyoming Valley Sanitary Authority hasn’t accepted any well-drilling wastewater, but it is interested.
“If it’s not hazardous to our plant, and if DEP approves us as a disposal site, we would consider it,” executive director Fred DeSanto said.
The state Department of Environmental Protection recently sent a letter to sanitary authorities advising them that wastewater from the drilling can be harmful to certain treatment systems and cause them to violate their discharge permits. The water must be tested and approved by DEP.
Such contracts could be lucrative, but have potential problems. WVSA, the major wastewater treatment facility in Luzerne County, charges 3.5 cents per gallon for treatment of up to 2 million gallons and 3 cents for quantities beyond that.
That could help offset the estimated $6 million in upgrades the authority said it needs to meet Chesapeake Bay watershed agreement discharge standards.
That quick influx, however, creates a problem.
Sandy Bartosiewicz, WVSA’s financial and budget officer, said the authority has never been in a situation where it accepted “that amount of volume at one time.”
It will also have an impact on wastewater haulers.
“The volume of the material is significant,” said Chris Ravenscroft, president of Honesdale-based Koberlein Environmental Services. “I don’t think there’s any one company out there that has the capacity for the volume. … So I think there’s a large volume of work that will be generated.”
He said his company is actively seeking energy companies that are looking for haulers and treatment facilities. Gas companies are investigating drilling possibilities through the Marcellus region, which stretches from upstate New York through northern and western Pennsylvania, including the upper fringe of Luzerne County, and down into Virginia. Several wells have been drilled in this region, according to DEP spokesman Mark Carmon.
Cabot Oil & Gas Co. announced recently a well in Susquehanna County became its first to generate income.
Copyright: Times Leader
Gas wells a mixed blessing on property
Lucrative leasing deals are possible for area residents. Negatives: Noise, pollution.
The opportunity won’t come to most Northeastern Pennsylvania landowners, but those offered a natural-gas well will face life-changing effects, both positive and negative.
“It’s going to transform Pennsylvania, there’s no doubt about it,” said Ken Balliet, a Penn State Cooperative Extension director well-versed in gas-lease issues. “This whole Marcellus shale play is highly speculative” for the gas companies, he said, because it’s not very well studied, but landowners who land lucrative deals will see it otherwise. “When you hand someone a check for half a million dollars, that’s not very speculative.”
Add to that well-siting and annual royalty payments, and suddenly the problem becomes trying to find tax havens for the profits.
The tradeoff, however, is an unexpected and sometimes unwelcome bustling of activity — trucks, noise and pollution. Many of the changes will come and go, but some – like a clear-cut well site or a noisy compression station – will remain for decades.
It’s a sacrifice Jerry Riaubia is willing to make on his 16 acres in Sweet Valley – if the right number is on the checks and they keep coming. “If I had an income for my family, it would be well worth it,” he said. “We could help the economy out if we had that money. It could save our economy.”
For many rural landowners, the offers are difficult to pass up. Reports of leases offered at $2,500 per acre are common as close as Wyoming County, and companies have increased production royalties from the state-mandated 12.5 percent to 18 percent as owners become more educated.
Even with just his 16 acres in a standard 600-acre drilling unit, and estimating modest gas extraction at 18 percent royalties on a single well, Riaubia stands to pocket around $117,000 over the well’s lifetime, according to www.pagaslease.com, a Web site run by landowners who were approached early on about leasing.
That’s only the profits from a single well, and far more than one can exist at a site. “We heard of one company had drilled 27 on one pad,” said Tom Murphy, a Penn State Cooperative Extension educator.
And as oil prices increase, so will natural gas prices, according to a 2005 report by the Schlumberger oil and gas company. “The price of gas is linked to oil and based on each fuel’s heating value,” the report notes. “As long as oil prices remain high, there is no reason for natural gas prices to go down. Although gas is abundant in much of the world, it is expensive and potentially dangerous to transport internationally.”
That financial windfall might be just a pipedream for Luzerne County residents, though.
Chesapeake Energy Corp., one of the largest leaseholders in the Marcellus play, isn’t leasing in the county, according to Matt Sheppard, the company’s director of corporate development. A single listing exists for Luzerne County on the gas lease Web site’s lease tracker. Signed in late May, the five-year offer was $1,500 per acre with 15 percent royalties.
While Riaubia said he hasn’t been approached by any companies, land groups in northern municipalities in the county, such as Franklin Township, have been negotiating. Rod McGuirk, who owns 56 acres in the township, said owners there have been offered $1,800 per acre. “They’re just preliminary offers, but we’re excited,” he said.
That excitement could quickly wane if problems crop up or owners are unprepared for the realities of drilling. Unlike other unconventional gas sources, shale wells produce consistently over three decades, so well sites are more or less permanent. Even after sites are reclaimed, some infrastructure is left behind.
Also, because gas is transported nationally through lines that are more compressed than regional distribution lines, noisy compression stations will need to be installed in what are otherwise bucolically quiet locales.
Then there’s the potential to unearth radioactive materials, acid-producing minerals and deplete water resources. In fact, after concerns arose about the amount of water necessary to drill a well, the state Department of Environmental Protection included an addendum to its drilling permit that addresses water usage and is specific to Marcellus shale.
Still, officials assure that regulatory agencies are keeping tabs on drillers. “There’s an awful lot of eyes watching the streams up there,” DEP spokesman Tom Rathbun said. “So these guys aren’t just going to be able to dump stuff. … If they start killing streams, a lot of people are going to find out quickly.”
And aside from that, he said, the financials force the industry to regulate itself. “The Marcellus shale is not really a business for fly-by-nighters,” he said. “You don’t throw $10 million away because you were cutting corners on an environmental regulation. Now that they know we’re watching … there’s too much money on the line for these guys to do stupid mistakes or to cut corners.”
Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.
Copyright: Times Leader