Posts Tagged ‘Edward Buda’
Drilling operations under way
By Elizabeth Skrapits (Staff Writer)
Published: July 22, 2010
FAIRMOUNT TWP. – In one Luzerne County municipality, a natural gas drilling rig towers in the background as a guard keeps vigil against unauthorized personnel at the gate that is kept open to allow trucks to pass in and out of the site.
In another Luzerne County municipality a few miles away, new electrified fencing surrounds a meadow and engineers’ trucks kick up dust along the freshly re-graveled road.
On Wednesday, Encana Oil & Gas USA Inc. started drilling the county’s first exploratory natural gas well in Fairmount Township, and also began site preparation for a second well in Lake Township.
Encana spokeswoman Wendy Wiedenbeck said the drilling components have arrived and operations are moving forward on the site owned by Edward Buda in Fairmount Township, on Route 118 behind the Ricketts Glen Hotel. The well will be drilled about 7,000 feet deep, then go out 2,500 to 5,000 feet horizontally.
Asked what motorists can anticipate near the site, Wiedenbeck said, “We would expect some additional truck traffic. There is signage on the road leading up to and away from the location.”
Noise and dust are side effects of the drilling process, which it is estimated will take about 30 days, Wiedenbeck said. Encana will monitor and mitigate both the dust and the noise at the site, and the company is working closely with Fairmount Township officials, she said.
About a quarter of a mile down Route 118 from the drilling site, Good’s Campground owner Frank Carroll was cutting firewood Wednesday afternoon. He noticed there has been a lot of truck traffic at the drill pad.
“Crazy thing is, all I can hear is the backup of the trucks – you know, beep-beep-beep,” Carroll said as he piled the cut wood in the bed of his pickup truck and pulled a blue tarp over it. “It doesn’t bother me, but I can hear it.”
Carroll says he wakes early and sleeps soundly, so he doesn’t expect the 24-hour-a-day, seven-days-a-week drilling operation to disturb him.
“I’d sleep through the end of the world,” he joked.
One thing does bother Carroll: the speculation. Will the well pay off in royalties to landowners who leased mineral rights?
“Everybody’s been talking about it for two years, how they’re going to get rich or they’re going to get nothing,” Carroll said. “And they’re still talking about it. They all think they’re going to be rich – and they can’t all be rich.”
As soon as drilling is complete in Fairmount Township, the rig, from Horizontal Well Drillers of Purcell, Okla., will be taken to the Lake Township site.
“Efficient work operations is to go from one area to the other,” Wiedenbeck said.
In Lake Township, heavy truck traffic warning signs are in place on Meeker, Outlet and other roads to be traveled by the approximately 2,100 total trucks it will take to create the drilling pad, drill the well and bring in the roughly six million gallons of water needed for hydraulic fracturing.
Robert and Debra Anderson live so close to the Zosh Road site that will be transformed into a natural gas drilling pad they could throw a baseball from the front yard of their trailer home and easily have it land over the electrified wire fence surrounding the meadow belonging to Paul and Amy Salansky.
The Andersons love the area, which is full of wildlife: “I have turkeys, I have deer, I have foxes, I have bear … I even have ducks in my pond,” Debra Anderson said.
Things were quiet on Wednesday afternoon, but in the morning, there was a “big meeting” at the drill pad site, Robert Anderson said.
Just then a pair of engineers drove by in a Borton-Lawson truck, stirring dust from the road as they passed.
But not much dust. The Andersons are pleased with the work Lake Township’s three-man road crew has done on the dirt-and-gravel roads around the site: enlarging them, smoothing them, lining the drainage ditches with rock. Debra Anderson declared she hasn’t seen the roads look that good in the 15 years they’ve lived in the township. Encana’s paying for the road maintenance, Robert Anderson said.
Lake Township will provide dust control with calcium chloride applications on the roads, he said. But what about the noise and light when drilling starts?
“We’ll deal with it. You can’t stop progress,” Robert Anderson said.
He called Encana a “reputable company, not like the one that’s up in Dimock,” and said its representatives are good about telling residents what’s going on. He said he attended the last Lake Township meeting, at which dozens of natural gas drilling opponents showed up, and he said they should go to the company for information, not the supervisors.
“People that go to the Lake Township meetings should be Lake Township residents,” Robert Anderson said. “It’s no one else’s concern.”
eskrapits@citizensvoice.com , 570-821-2072
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Copyright: The Citizens Voice
Gas firm looks to hearing on 10 new well permits
Those against Encana Oil & Gas plans ponder appeals for permits already granted.
By Steve Mocarskysmocarsky@timesleader.com
Staff Writer
As Encana Oil & Gas officials await a hearing next month on zoning permits for 10 new natural gas wells in Luzerne County, gas-drilling opponents are contemplating a second appeal for permits that already have been issued to the company.
Encana recently filed applications with the Luzerne County Zoning Hearing Board seeking temporary-use permits and special exceptions for drilling five natural gas wells and height variances for building a gas processing facility at a site nestled between Loyalville, Hickory Tree and Meeker roads in Lake Township.
The company also applied for the same types of permits for drilling wells on two properties in Fairmount Township – two wells on a site northeast of the intersection of state routes 487 and 118, and three wells on adjoining land to the northeast.
The zoning hearing board has scheduled a hearing for 7 p.m. Aug. 3 to hear testimony on those applications.
The Lake Township site, owned by 4P Realty of Blakely, is about 600 acres. The two Fairmount Township sites consist of 13 parcels – some owned by William Kent of Benton and others owned by Jeffrey Hynich of Lake Township – spanning nearly 480 acres. They are referred to as the Red Rock/Benton Gas Consortium Lands in a lease with Encana.
Encana would move forward with drilling wells on those properties if two exploratory wells in Lake and Fairmount townships prove successful.
Drilling on the Fairmount Township property of Edward Buda is expected to begin within five to 10 days, Encana spokeswoman Wendy Wiedenbeck said.
Encana won zoning approval for drilling on a Lehman Township property owned by Russell W. Lansberry and Larry Lansberry in April but withdrew the application last week – less than a month after township residents Dr. Tom Jiunta, Brian and Jennifer Doran and Joseph Rutchauskas filed an appeal of the zoning approval in county court.
Rutchauskas said on Tuesday that attorneys for the Gas Drilling Awareness Coalition are checking into the possibility of appealing the issuance of zoning permits about two weeks ago for Lake Township property owned by Amy and Paul Salansky on which Encana plans to begin drilling later this summer.
The county zoning hearing board approved the permit applications for the Salansky property in May.
Rutchauskas said he was told by a zoning official that it was too late to file an appeal on the Salansky permits because one must be filed within 30 days of the zoning hearing board’s decision.
“We’re having lawyers check into the timeframe of when the permits were approved and when they were issued. Our stance is that the 30-day timeframe is from the day the permits were issued, not from the day they were approved,” Rutchauskas said.
He said the permits could not be issued until the board received several response plans from Encana, such as a traffic management plan and an emergency response plan.
Eight permits for the Salansky property were issued on June 25 – the same day Encana submitted the plans – and two more were issued on June 28, according to zoning office records.
Rutchauskas said there’s no way zoning officials could have reviewed all the plans the same day, and the permits should not have been issued until the plans were thoroughly reviewed.
“How can you issue a permit without reading the required plans? You can put a Superman comic book in there and they wouldn’t know the difference. Do it slow, take your time, at least open them. I’ve been going through those books almost eight hours,” Rutchauskas said.
Luzerne County Planner Pat Dooley said officials are checking into how an appeal can be filed on the issuance of a zoning permit.
Dooley said he’s not aware of anyone ever appealing the issuance of a zoning permit, only the approval of a permit.
Copyright: Times Leader
Gas firm looks to hearing on 10 new well permits
Those against Encana Oil & Gas plans ponder appeals for permits already granted.
By Steve Mocarsky
Staff Writer
As Encana Oil & Gas officials await a hearing next month on zoning permits for 10 new natural gas wells in Luzerne County, gas-drilling opponents are contemplating a second appeal for permits that already have been issued to the company.
Encana recently filed applications with the Luzerne County Zoning Hearing Board seeking temporary-use permits and special exceptions for drilling five natural gas wells and height variances for building a gas processing facility at a site nestled between Loyalville, Hickory Tree and Meeker roads in Lake Township.
The company also applied for the same types of permits for drilling wells on two properties in Fairmount Township – two wells on a site northeast of the intersection of state routes 487 and 118, and three wells on adjoining land to the northeast.
The zoning hearing board has scheduled a hearing for 7 p.m. Aug. 3 to hear testimony on those applications.
The Lake Township site, owned by 4P Realty of Blakely, is about 600 acres. The two Fairmount Township sites consist of 13 parcels – some owned by William Kent of Benton and others owned by Jeffrey Hynich of Lake Township – spanning nearly 480 acres. They are referred to as the Red Rock/Benton Gas Consortium Lands in a lease with Encana.
Encana would move forward with drilling wells on those properties if two exploratory wells in Lake and Fairmount townships prove successful.
Drilling on the Fairmount Township property of Edward Buda is expected to begin within five to 10 days, Encana spokeswoman Wendy Wiedenbeck said.
Encana won zoning approval for drilling on a Lehman Township property owned by Russell W. Lansberry and Larry Lansberry in April but withdrew the application last week – less than a month after township residents Dr. Tom Jiunta, Brian and Jennifer Doran and Joseph Rutchauskas filed an appeal of the zoning approval in county court.
Rutchauskas said on Tuesday that attorneys for the Gas Drilling Awareness Coalition are checking into the possibility of appealing the issuance of zoning permits about two weeks ago for Lake Township property owned by Amy and Paul Salansky on which Encana plans to begin drilling later this summer.
The county zoning hearing board approved the permit applications for the Salansky property in May.
Rutchauskas said he was told by a zoning official that it was too late to file an appeal on the Salansky permits because one must be filed within 30 days of the zoning hearing board’s decision.
“We’re having lawyers check into the timeframe of when the permits were approved and when they were issued. Our stance is that the 30-day timeframe is from the day the permits were issued, not from the day they were approved,” Rutchauskas said.
He said the permits could not be issued until the board received several response plans from Encana, such as a traffic management plan and an emergency response plan.
Eight permits for the Salansky property were issued on June 25 – the same day Encana submitted the plans – and two more were issued on June 28, according to zoning office records.
Rutchauskas said there’s no way zoning officials could have reviewed all the plans the same day, and the permits should not have been issued until the plans were thoroughly reviewed.
“How can you issue a permit without reading the required plans? You can put a Superman comic book in there and they wouldn’t know the difference. Do it slow, take your time, at least open them. I’ve been going through those books almost eight hours,” Rutchauskas said.
Luzerne County Planner Pat Dooley said officials are checking into how an appeal can be filed on the issuance of a zoning permit.
Dooley said he’s not aware of anyone ever appealing the issuance of a zoning permit, only the approval of a permit.
Contact the writer smocarsky@timesleader.com
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Copyright: The Times Leader
Results of Luzerne natural gas test wells awaited
By Elizabeth Skrapits (Staff Writer)
Published: July 5, 2010
Luzerne test wells’ results awaited
Depending on how its first natural gas wells turn out, Luzerne County could attract a lot of attention from potential drillers.
“I suspect everybody’s interest levels will be piqued if Encana gets successful,” said Steve Myers, director of Land and Legal Affairs for Citrus Energy Corp.
Encana Oil & Gas USA Inc. is poised to start drilling two exploratory natural gas wells this summer, one in Fairmount Twp., on the property of Edward Buda off Route 118, and the second in Lake Twp. on the property of Paul and Amy Salansky on Sholtis Road.
Drilling for natural gas in an area once known for anthracite coal mining is a daring move, by industry standards.
“Everyone’s nervous about going that far south,” Mr. Myers said.
Maps of the Marcellus Shale show the formation running throughout Luzerne County. However, its shale may not be very rich in gas due to the proximity of the anthracite coal-producing areas and high temperatures, which can turn the gas into carbon dioxide, Mr. Myers said.
“There’s some concerns that the Marcellus Shale was subjected to some high temperatures, high pressures that would have converted the shale to graphite and cooked off whatever gas was in place,” he said.
There’s a line that exists, but nobody knows exactly where it is, Mr. Myers said.
“One side, it’s going to be productive; you throw a rock and it’s not,” he said. “Kind of like a summer shower. It can rain across the street, but it doesn’t rain in your yard.”
Encana officials are willing to take the risk.
“We’ve said all along that it’s exploratory, and we have to prove we can develop commercial quantities of natural gas,” Encana spokeswoman Wendy Wiedenbeck said.
“We’re not focused on what other operators are doing; we’re just focused on acting responsibly and getting the wells drilled. And the well results will speak for themselves.”
Although the drill rig is expected to arrive in Fairmount Twp. at some point after today, and the drilling and completion process will take an estimated 65 to 75 days total, production results won’t be in until the end of the year or even 2011, Ms. Wiedenbeck said.
Gas production for the Fairmount Twp. and Lake Twp. wells will have to be reviewed before Encana makes further plans, she said.
At one time Citrus had considered drilling in Luzerne County, leasing hundreds of acres in Lake and Fairmount townships in partnership with Tulsa, Okla.-based Unit Corp. But the partnership broke up and Citrus ended up selling off almost all its leases to Williams Production Appalachia.
Williams Inc., also based in Tulsa, does natural gas drilling and processing, and owns thousands of miles of pipelines, including the Transco, which runs through northern Luzerne County – conveniently close to Encana’s planned drilling sites.
Williams has received permits from the state Department of Environmental Protection to drill three wells in Columbia County: two in Benton and one in Sugarloaf Twp.
Another natural gas company, Oklahoma City-based Chesapeake Energy, also has dozens of leases in Luzerne County but hasn’t made a move yet.
“Chesapeake is still evaluating the area. However, as we drill each new well, we learn more about the potential and the productivity of particular geologic areas, and this information guides our decisions about where to focus future activity,” Brian Grove, Chesapeake director of corporate development, stated in an e-mail.
For the time being, Citrus is focusing its efforts in Wyoming County, according to Mr. Myers. The company has drilled four wells so far in a successful partnership with Procter & Gamble, and has more in the works.
Citrus also plans to drill its own wells in Wyoming County, where it has leased large chunks of land – as have Chesapeake, Carrizo Marcellus LLC, Chief Oil & Gas, and others drawn by the prospects of production in Luzerne County’s neighbor to the north.
“It’s very much a hotbed of activity,” Mr. Myers said. “Any time you get good production, people are going to come. ⦠We expect to have plenty of company here in the future.”
Contact the writer: eskrapits@citizensvoice.com
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Copyright: The Scranton Times
Proposed Lehman Twp. gas drill site contested
Residents challenge zoning permit in area “consistent with agricultural use.”By Steve Mocarskysmocarsky@timesleader.com WILKES-BARRE – Some Luzerne County residents have taken legal action challenging the issuance of a zoning permit for a proposed natural gas well drilling site in Lehman Township. Township residents Dr. Tom Jiunta, Brian and Jennifer Doran and Joseph Rutchauskas are objecting to township supervisors on April 13 granting Whitmar Exploration Co. and EnCana Oil & Gas a conditional use permit for placing a natural gas well on part of an approximately 120-acre site located at 100 Peaceful Valley Road owned by Russell W. Lansberry and Larry Lansberry. A previous story incorrectly identified the well site as being in Lake Township on property on Soltis Road owned by Amy and Robert Salansky. There has been no appeal of a special-use permit that the Luzerne County Zoning Hearing Board approved for that site in May. Attorney Jack Dean, of Elliott Greenleaf & Dean, filed a notice of appeal of the Lehman Township supervisors’ decision on Monday with the county Prothonotary’s Office on behalf of the objectors. “There is no credible argument that this industrial use of gas drilling, with the massive disruption that it causes, is consistent with agricultural use, which is what the area is zoned, or with the character of the community,” Dean said. According to the notice, the supervisors’ decision is contrary to the township zoning ordinance and constitutes an error of law or manifest abuse of discretion in that: • Gas drilling on the property would jeopardize the community development objectives of the ordinance and adversely affect the health, safety and welfare of the public and the environment. • Public services and facilities such as streets, sewage disposal, water, police and fire protection are not adequate for the proposed use. • Existing and future streets and access to the site will not be adequate for emergency services, for avoiding undue congestion and for providing for the public safety and convenience of pedestrian and vehicular traffic, and unsafe and/or dangerous traffic conditions will result. • The nature and intensity of the operation would not be compatible with adjoining development and the character of the zoning district. • The proposed use would lower the value of nearby properties. • The proposed use will be more objectionable in terms of noise, fumes, odors, vibration or lighting than other operations permitted in an agricultural district. At an April 13 public hearing, which EnCana officials did not attend, the supervisors voted unanimously to approve the application if certain conditions were met, including posting bonds totaling $45,732 to maintain Firehouse and Peaceful Valley roads, keeping drilling-related traffic on Firehouse Road and state Route 118 and off Old Route 115, providing adequate insurance coverage for the township and that EnCana sign a legal agreement holding it to its commitment. Supervisors Vice Chairman Ray Iwanowski made the motion to enact the ordinance and Chairman David Sutton and Supervisor Douglas Ide voted yes. For ethics reasons, only Iwanowski could make the motion; and neither Sutton nor Ide could participate in any questions about the vote or make the original motion because they have personal ties to gas drilling. Ide leased some of his own land for gas drilling, and Sutton consults property owners concerning drilling. The Lansberry site likely would be EnCana’s third well site in the county if EnCana’s plans are not held up by the appeal. The company plans to begin drilling its first well in the county in July at a Fairmount Township site located off state Route 118 between Tripp and Mossville roads and owned by Edward Buda. EnCana in May had received approval from the Luzerne County Zoning Hearing Board for a drilling site on property at 133 Soltis Road in Lake Township and owned by township Supervisor Amy Salansky and her husband, Paul. Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311. Copyright: Times Leader |
Gas well permit issuance contested
County residents challenge zoning permit for proposed Lehman Township drill site.
STEVE MOCARSKY smocarsky@timesleader.com
Editor’s note: A print version and a previous on-line version of this story erroneously identified the well site in question as being in Lake Township.
WILKES-BARRE – Some Luzerne County residents have taken legal action challenging the issuance of a zoning permit for a proposed natural gas well drilling site in Lehman Township.
Dr. Thomas Jiunta, a podiatrist from Lehman Township, confirmed late Monday that an attorney working on behalf of himself and other county residents whom he declined to name filed a notice of appeal of a conditional use permit issued in April by the township supervisors.
WhitMar Exploration Co. and EnCana Oil & Gas USA Inc. had sought a conditional-use permit to drill a natural gas well on part of a an approximately 120-acre site located at 100 Peaceful Valley Road and owned by Russell W. Lansberry and Larry Lansberry.
At an April 13 public hearing, which EnCana officials did not attend, the supervisors voted to approve the application if certain conditions were met: that EnCana put up $13,540 to maintain Firehouse Road through the total time it is used; EnCana put up $32,192 to maintain Peaceful Valley Road similarly; all traffic related to the drilling traverse on Firehouse Road toward state Route 118; no traffic will go on Old Route 115 in the township (near the school); EnCana provide adequate insurance coverage for the township, and that a legally binding agreement be signed by EnCana holding it to its commitment.
“There is no credible argument that this industrial use of gas drilling, with the massive disruption that it causes, is consistent with agricultural use, which is what the area is zoned, or with the character of the community,” said attorney Jack Dean, who is representing Jiunta and the others.
Wendy Wiedenbeck, public and community relations advisor for EnCana, did not immediately return a call seeking comment.
The Lansberry site would likely be the third well site in the county if EnCana’s plans are not held up by the appeal. The company plans to begin drilling in July at a Fairmount Township site located off state Route 118 between Tripp and Mossville roads and owned by Edward Buda.
EnCana in May had received approval from the Luzerne County Zoning Hearing Board for a drilling site on property at 133 Soltis Road in Lake Township and owned by township Supervisor Amy Salansky and her husband, Paul.
Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.
Copyright: Times Leader
Drill results could hike land values
EnCana is currently signing standard leases giving Luzerne County landowners $2,500-per-acre bonuses.
STEVE MOCARSKY smocarsky@timesleader.com
The value of land leases with natural gas drilling companies has been climbing in counties to the north, but whether that happens in Luzerne County will depend on the results of exploratory drilling scheduled to begin this summer.
Natural gas exploration companies are now offering leases in Susquehanna and Bradford counties with up-front per-acre bonuses in the $5,000 to $6,000 range and royalties as high as 20 percent, said Garry Taroli, an attorney with Rosenn Jenkins & Greenwald representing area landowners.
Late last month, natural gas producer Williams Companies bought drilling rights to 42,000 net acres in Susquehanna County from Alta Resources for $501 million, placing the lease value on that land at nearly $12,000 per acre.
So people like Edward Buda, who owns land in Fairmount Township on which the first natural gas well in Luzerne County will be drilled in July, might be feeling some lessor’s remorse, given that they agreed to comparatively paltry up-front bonuses for the first two years of the lease term.
When Buda, 75, of Ross Township and his late brother and sister-in-law were in negotiations with WhitMar Exploration Co. early last year, they, like many others, agreed to bonus payments of $12.50 per acre each year for the first two years of the lease. The bonus increases to $2,500 for the third year.
However, if drilling begins on or under a landowner’s property before an anniversary date of the lease, any bonus payments for subsequent years become null and void and the royalty provision of the lease kicks in. So, if the drilling that is to begin next month on Buda’s property is successful, he likely won’t ever see that $2,500-per-acre bonus but will receive much larger royalty payments.
Since Buda’s lease was negotiated, WhitMar sold most of the company’s interest in the leases to EnCana Oil & Gas (USA) Inc.
EnCana is currently signing standard leases giving Luzerne County landowners $2,500-per-acre bonuses – $1,000 the first year of the lease and $1,500 the second year, according to EnCana’s Group Lead for Land (New Ventures) Kit Akers.
Some landowners who signed the same type of deal with WhitMar as Buda believe they’ve been treated fairly.
Michael Giamber, 57, of Fairmount Township, lives about 2 miles from the Buda drill pad. While the Budas negotiated their lease on their own, Giamber joined a consortium of landowners who negotiated a deal with WhitMar in 2008 for bonuses of $12.50 per acre each year for the first two years of the lease, $2,500 per acre for the third year, and a 20-percent royalty on all gas produced.
“It was in the middle of a recession and leasing had pretty much stopped except in Dimock. We essentially partnered with WhitMar,” Giamber said.
In exchange for landowners accepting the initially small incremental bonus payment arrangement, WhitMar promised to do seismic testing of the leased land and partner with a company that would handle the drilling and secure permits for one to three exploratory wells in the county within two years.
“I signed on not because of the bonus, but because of the 20-percent royalty and because if they did not drill one to three wells after two years, we’d be free agents again,” able to renegotiate for better terms, Giamber said. “Because we were in a recession, what did we have to lose?”
“A lot of older people would rather more up-front money, and I can appreciate their position,” Giamber said.
Jeffrey Nepa, an attorney with Nepa & McGraw in Carbondale and Clifford, believes people who signed leases early for smaller bonuses were either “more desperate and needed money or were misinformed about what the extent of (drilling in the Marcellus Shale) was. Some people have had buyer’s remorse, so to speak, regretful that they signed and wanting to get out,” Nepa said.
Nepa said he’s seen bonus money increase, dip back down, “and now it’s creeping back up again. And it appears that landowners “who held out, so to speak, are the ones that are rewarded with the largest contracts. In the Barnett Shale (in Texas), I’ve heard of property owners getting in excess of $20,000 per acre, and they were the ones who held out.”
Gas companies normally drill in 640-acre blocks of land. So people with a larger tract of land are better off holding out for better lease terms, Nepa said.
On the other hand, those who signed leases earlier are now the ones who will see royalty payments kick in much sooner than anyone else, because they will be the first to have wells drilled, said Robert Schneider, 39, of Fleetville, Lackawanna County.
Schneider joined a landowner consortium that negotiated leases with a $2,100 bonus and an 18-percent royalty in 2008 with Exco Resources, and he’s glad he didn’t hold out for more.
“Two years have gone by and I have three years left. … There’s a risk if you wait,” Schneider said, speculating that implementation of more rigorous and costly government permitting requirements, the establishment of a severance tax or finding insufficient or no gas in his area are all reasons that companies might pull out and stop leasing.
EnCana’s Akers backed up what Giamber and Schneider had to say. “People who leased earlier put themselves in a position to most likely have their land drilled earlier,” she said.
And Akers said, if WhitMar had not been able to secure leases at relatively low cost to the company, exploration in Luzerne County might not have begun as soon as it has.
“Because these people leased early to WhitMar, WhitMar was able to build a large position of leases that allowed for horizontal drilling. That’s what got a company like EnCana interested in coming to Luzerne County. If we had not seen a consolidated lease position, it’s unlikely WhitMar would have gotten a company like EnCana to come in … It was possible that the $12.50 offer was the only offer those people would ever get,” she said.
Akers also believes that the reason landowners in Susquehanna and Bradford counties are being offered much higher bonuses is because hundreds of wells have been drilled there and natural gas extraction has proven successful.
“Luzerne County, on the other hand, is really on the frontier. There’s no way to know if shale within a geographic region will produce any gas or enough gas to make drilling profitable without actually drilling wells. There have been no wells drilled in Luzerne County, so that’s the reason why there’s a difference in lease prices between Luzerne County and other counties,” Akers said.
If wells on Buda’s land and a site in Lake Township don’t produce any gas or at least enough of it to make drilling there worthwhile, land lease values in Luzerne County could drop to zero, Akers said.
If the wells do produce significant amounts of gas, however, competition for drilling rights will definitely heat up, Akers said, and with it the price.
Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.
Copyright: Times Leader
New gas entry alters picture
People are wondering just what EnCana will bring to Marcellus Shale drilling.
By Steve Mocarskysmocarsky@timesleader.com
Staff Writer
Edward Buda had been dealing with representatives of Whitmar Exploration Co. for about two years since he, his late brother and sister-in-law negotiated a lease with the company for natural gas drilling on their Fairmount Township property.
ENCANA FACTS
• Based in Calgary, Alberta, EnCana was formed in 2002 through the business combination of Alberta Energy Co. Ltd. and PanCanadian Energy Corp. It is one of North America’s leading natural gas producers with a land base of 15.6 million acres in North America.
• The company produces 3 billion cubic feet of natural gas per day and operates about 8,700 wells.
• EnCana operates in the United States through its subsidiary Encana Gas & Oil (USA) Inc., with its U.S. headquarters in Denver, Colo., and field offices in Denver, Texas, Wyoming and Louisiana.
• In addition to the Marcellus Shale, EnCana is active in four key natural gas resource plays: Jonah in southwest Wyoming; Piceance in northwest Colorado; and the East Texas and Fort Worth, Texas basins. The USA Division is also focused on the development of the Haynesville Shale play in Louisiana and Texas.
• EnCana Corp. reported sales of $11 billion in 2009. Its stock trades under the symbol ECA. It has traded between $27.56 and $63.19 per share in the past 52 weeks and closed Friday at $30.28.
Many area properties are leased for drilling
The list of Luzerne County properties leased for natural gas drilling is long – more than 1,000 just with EnCana Oil & Gas. Chesapeake Energy holds dozens more leases, although the company so far has not begun any drilling operations.
Work began last week on the site of Encana’s first exploratory well in Luzerne County, off Route 118 in Lake Township.
The Times Leader obtained drilling leases filed with the Luzerne County Recorder of Deeds as of last week. They range from slivers of land – less than one-tenth of an acre – to huge spreads of hundreds of acres. Most are with individuals, others with well-known organizations, such as the Irem Temple Country Club.
All of them are in the Back Mountain or other areas in the north and west parts of the county. Most of the land will never host a gas well but may be needed for access roads, equipment storage and to buffer drilling pads from neighbors.
The lists are in pdf format, sorted by municipality. Duplicate filing numbers were removed, but most properties show up twice because leases originally signed with Whitmar Exploration Co. have been assigned to EnCana. The lists can be searched by name using later versions of Adobe Reader, a free computer program.
Find the lists accompanying the main story under “Related Documents” at www.timesleader.com.
Now, there’s a new player in the mix, since Whitmar announced a partnership with EnCana Oil & Gas (USA) Inc. in November for a joint venture in drilling and development of the Marcellus Shale in Luzerne and Columbia counties.
Like others in the Back Mountain, Sweet Valley and Red Rock areas, Buda is a bit wary of the Denver-based energy company.
“We did business with Whitmar. How (Encana is) going to be, I don’t know. How they honor the contract, that’s to be seen. I still don’t know much about them,” said Buda, 75, who lives in Ross Township.
Buda’s brother Walter and Walter’s wife Eleanor signed a fairly simple three-page lease with Whitmar in February 2009, a month before Walter died. Eleanor passed away in November, Edward said, and he became the new lease holder just as EnCana came into the picture.
Now, EnCana wants to lease Edward’s property in Ross Township, but he isn’t too impressed with the $1,000-per-acre offer. And the 16-page lease proposal that has undergone many revisions is written in legalese, he said.
“They wanted to put a drill pad on my property (in Ross Township). I said I want to wait and see what happens in Red Rock (section of Fairmount Township). Everybody’s waiting to see whether it’s going to be a gusher or a fiasco in Red Rock,” Edward said.
Wendy Wiedenbeck, a public and community relations adviser for EnCana, said the well on Buda’s property and a second well planned for a Lake Township property owned by township Supervisor Amy Salansky and her husband, Paul, are exploratory ventures.
If those wells produce an acceptable amount of natural gas, EnCana will develop a plan for expanded drilling operations in the area, Wiedenbeck said. Drilling is expected to begin in July on Buda’s property and gas production should start by October. Clearing of an access road to the site began last week.
Company has won honors
For the past few months, Wiedenbeck has been the face of EnCana locally, arranging and attending meetings with people who live or own property within a mile of the planned drilling sites as well as attending meetings with local groups concerned about drilling activity in their communities.
A self-described “Army wife” with two sons – one in first grade, the other a senior in college, Wiedenbeck has lived in Colorado since 1989 and has been working in community/public relations since the early 1990s. She’s been with EnCana for five years.
“They’re a cultural fit for me. I believe they truly believe in responsible development,” Wiedenbeck said of her employer.
To prove her point, Wiedenbeck provided a long list of awards EnCana has received over the past few years. Just a few include:
• The 2008 U.S. Environmental Protection Agency Natural Gas STAR award, recognizing outstanding efforts to measure, report and reduce methane emissions;
• Interstate Oil & Gas Conservation Commission Chairman’s Stewardship Awards, recognizing exemplary efforts in environmental stewardship by the oil and natural gas industry;
• The 2009 Colorado Oil & Gas Conservation Commission Award for Courtesy Matters program in the Denver-Julesburg Basin surrounding Erie, Colo.
“Courtesy Matters” is EnCana’s community engagement program that brings EnCana staff and third-party contractors together with the community to discuss the nuisance issues associated with company operations,” Wiedenbeck said.
“Courtesy Matters creates a working environment where open and ongoing dialog are paramount. Discussions generally include concerns with traffic, noise and dust associated with our operations,” she said.
Community investment vital
Marty Ostholthoff, community development director for Erie, Colo., said in a teleconference that EnCana is one of four major energy companies drilling in the Denver-Julesburg Basin, the others being Noble Energy Inc., Kerr-McGee Corp. and Anadarko Petroleum Corp.
Fred Diehl, assistant town administrator in Erie, said he would be remiss if he didn’t point out “how far ahead of the other operators EnCana is” when it comes to community investment.
Diehl said he mentioned to Wiedenbeck that officials wanted to install solar panels on a new community center being built, and EnCana donated $250,000 to make that happen. A month ago, the company donated $175,000 for eco-friendly lighting at community ball fields.
“It’s not a requirement that they make notifications to our residents (about drilling activities or problems), but they do. It’s not a requirement that they make financial investments into our community, but they do,” Ostholthoff said.
Of course, there’s a downside to the presence of the drilling companies in the suburban area, which lies in one of the largest natural gas fields in the country, Diehl said.
“These things are still loud,” he said of the drilling rigs. “People come into our offices complaining, ‘We can’t sleep.’ But we worked with the operators to put up hay bales and cargo trailers to minimize the noise. The only good thing is, (the drilling is) temporary.”
As far as addressing concerns of residents, Diehl said all of the companies seem willing and responsive. “If they’re not, one of them can give the whole industry a black eye,” Diehl said.
Wiedenbeck said EnCana will have a toll-free number posted at its drilling sites that people can call to report concerns. Callers who choose the Pennsylvania prompt will be automatically directed to her office or cell phone. An operations phone number also will be established, she said.
And while EnCana will hire someone locally to help with community relations efforts, Wiedenbeck said she will continue to be “that face” for the community. She has spent about half her time in Pennsylvania since EnCana partnered with Whitmar, sometimes bringing her youngest son, Sammy, on trips here.
“He loves Pennsylvania,” she said.
Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.
Copyright: Times Leader
Gas firm seeking special land uses
Parcels in Lake, Fairmount townships require county zoning approval.
By Steve Mocarskysmocarsky@timesleader.com
Staff Writer
An energy company is seeking zoning approval to temporarily locate five personnel trailers and up to 192 water storage tanks capable of holding more than 4 million gallons on a 6-acre site in Lake Township.
IF YOU GO
The Luzerne County Zoning Hearing Board will hear testimony on applications from EnCana Oil & Gas for special land uses in Lake and Fairmount townships at 7 p.m. Tuesday, in the Commissioners Meeting Room at the Luzerne County Courthouse in Wilkes-Barre.
EnCana Oil & Gas USA Inc. also wants to temporarily place a sewage holding tank and a potable water tank for each trailer at the site, all to be used during the drilling of a well to extract natural gas from the Marcellus Shale formation thousands of feet below the Earth’s surface.
The Luzerne County Zoning Hearing Board on Tuesday will hear a presentation from EnCana in connection with the company’s application for a “temporary use” and a special exception to construct a permanent gas well head facility on the 49-acre property located at 133 Soltis Road and owned by township Supervisor Amy Salansky and her husband, Paul.
EnCana also is seeking a use variance to operate a natural gas meter station on 5 acres within a 112-acre parcel in Fairmount Township, as well as a height variance to erect an associated 150-foot radio tower on the site.
The meter station site, located at the intersection of Mossville and Hartman roads on property owned by Thomas and Caroline Raskiewicz, would be used to treat and compress natural gas from another well drilling site in Fairmount Township for which EnCana has already received county zoning approval. That drilling site, located off state Route 118 between Tripp and Mossville roads, is owned by Edward Buda.
The Salansky site in Lake Township is the third in the county on which EnCana plans to begin drilling for gas this summer. Earlier this month, the company received approval from Lehman Township supervisors to drill near Peaceful Valley Road on property owned by Russell and Larry Lansberry.
The Salansky and Buda sites required county zoning board approval because neither Lake Township nor Fairmount Township has zoning regulations.
Wendy Wiedenbeck, public and community relations advisor for EnCana, said the Buda site will be the first to be drilled. The target date for drilling to begin, known in the industry as the spud date, is July 1. Crews were to begin clearing an access road on Thursday.
Wiedenbeck said the spud date for the Salansky site is expected to be about a month after drilling begins at the Buda site. It takes about a month to drill a well, and the drilling equipment will be moved from one site to the next.
Plans for the Lansberry site are still under discussion, she said.
21,000-gallon tanks
According to a narrative that EnCana included in the zoning application for the Salansky site, the company will need about 6 million gallons of water for each well completion. Completing a well requires hydraulic fracturing (fracking), which is the process of injecting a mixture of water, sand and a small amount of chemical fluid additives into the wellbore under very high pressure to fracture the shale formation and release the natural gas.
EnCana estimates about 1.2 million gallons of flowback water will return to the surface.
Fresh water for the well completions will be stored in some of the 21,000-gallon “frac water” tanks, which are about 8 feet wide, 50 feet long and 13 feet tall. Some of the steel tanks also could be used to collect flowback water, which either will be treated and reused during a future well completion or hauled away and disposed of at a permitted wastewater facility.
EnCana plans to drill one well at each site using a truck-mounted drill rig. It would be drilled vertically about 7,000 to 8,000 feet deep and then horizontally about 5,000 to 7,000 feet.
During drilling operations, sites would have a drill rig, stockpiles of drill pipe and casing, a 60-by-160-foot reserve pit with an impermeable liner for collecting cuttings and fluid, mud shakers to separate the cuttings from the fluid, generators to provide power to the drill rig and office trailers that would be equipped with personnel sleeping quarters.
Drilling activities would occur around the clock for about four weeks and require on-site supervision 24 hours a day.
Main access roads to the Salansky site include Lehman Outlet, Hoover, Sholtis, Zosh, Ides, Meeker and Slocum roads and state Route 118. EnCana will work with supervisors of Lake and Lehman townships to complete a road assessment and provide appropriate bonding for the roads.
Meter site structures
Major structures at the Raskiewicz meter site in Fairmount Township, in addition to the radio tower, include two 40-by-40-foot buildings, about 20 feet tall, that would house compressor engines, and a 15-by-35-foot meter building about 12 feet high.
Also planned is a smaller air purification building.
Two 20-foot-tall storage tanks for condensate – liquids that fall out of the gas and settle at low points in the pipeline – also will be placed there, along with various other types of storage tanks, most about 10 feet tall. There also will be a dehydration unit, mainly composed of a vertical tank about 34 feet tall.
The facility will require a 1/2 acre where a 6-inch EnCana gas line will feed into the 24-inch transcontinental pipeline that already passes through the site underground, and another 1.5 acres for placement of EnCana treating and compression equipment. The additional 3 acres is for future expansion.
Main access roads to the site are state Route 118, Mossville Road and Hartman Road.
Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.
Copyright: Times Leader
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