Posts Tagged ‘fracturing’

Agency said Susquehanna River has enough water, but withdrawal timing is key.

WILLIAMSPORT – The Susquehanna River watershed has enough water to supply drilling for natural gas in the Marcellus Shale, members of the Susquehanna River Basin Commission assured at a public hearing on Tuesday.

The trick is to take it when there’s a lot available, and that requires planning.

“It’s not so much the consumptive use,” said Thomas Beauduy, the SRBC’s deputy director.

“It’s when it’s being used. It’s how it’s being used.”

To illustrate the point, Michael Brownell, the commission’s Water Resources Management Division chief, used a local drilling site owned by Chief Oil & Gas LLC as an example.

The site, tucked along rolling ridges east of Hughesville, is permitted for water withdrawal from a creek almost six miles away, meaning the water must be trucked. Water could probably be piped in from a smaller creek about half a mile away, but only in certain seasons when its flow is high enough, Brownell said, which would require forethought.

It’s a matter of submitting the application early, doing the research and picking the right time, he said.

Water use is a major factor for drilling in the shale about a mile underground.

Companies use an innovative horizontal drilling and hydraulic fracturing process that’s succeeded in similar gas-containing formations in Texas. Each fracturing process can use as much as four million gallons of water. Only about half of that is recovered, Beauduy said.

And while the commission is interested in recycling and reusing water, he acknowledged that every use is assumed to be a complete loss of the water from the watershed so that any recovery is seen as a bonus.

That said, both SRBC representatives noted that, in the aggregate, water withdrawal for well drilling would equal perhaps 28 million gallons per day, which is about half as much as PPL Corp.’s nuclear Susquehanna Steam Electric Station in Salem Township.

The hearing, which was meant to discuss proposed SRBC regulation changes, brought out concerns from both the industry and residents.

Potter County Commissioner Paul Heimel, who was representing the County Commissioners Association of Pennsylvania, noted two concerns.

First, that the chemicals used in the fracturing process haven’t been identified, and second, that it was unclear if the industry would be allowed to withdraw water during drought conditions.

Scott Blauvelt of East Resources, Inc. represented the Marcellus Shale Committee, which is made up of 28 members of regional gas and oil associations.

Copyright: Times Leader

Gas leasing! When I first wrote about this in May last year, lease prices were “up to several hundred dollars an acre.” When I did an update in December, prices “as high as $800” were said to be offered. Now $2,500 an acre is thought to be a reasonable price. Who knows how high it may go? Statewide, speculation about the most promising part of the Marcellus Shale is being directed solidly toward northeastern Pennsylvania.

The issues I mentioned in my first article are still valid concerns: clearing of trees and vegetation at the drilling site and for access roads; noise, lights, and vehicle and human traffic during the drilling process; and the risk of water supply interruption or contamination. Several water-related issues have come into higher prominence since then: the source and disposal of the water used in drilling and hydraulic fracturing (“fracking”) a gas well, and the removal and disposal of solid and liquid wastes from the well site.

Representatives of land trusts from around the state, including Countryside Conservancy, met in Harrisburg in mid-June to learn more about the Marcellus Shale gas resource, how it will be developed, and how gas extraction can coexist with conservation. The conference organizer, the Pennsylvania Land Trust Association ( www.conserveland.org), has indicated that they will soon post information from this meeting on their website.

As a land trust, the Countryside Conservancy is dedicated to land and water conservation. We are not opposed to exploration and extraction of natural gas, but we want to ensure that the process does not damage natural resources of conservation value. To that end, we are working hard to educate ourselves about the pros and cons of gas development, and we urge landowners to do the same.

At the moment, one of the more accessible information resources for landowners is the Penn State Cooperative Extension website (naturalgaslease.pbwiki.com). It contains information, publications, links to lawyers, CPAs, energy companies and more. The Extension does not recommend the services of anyone referred to on their website, but it is a place to start.

If you are a landowner considering leasing your gas rights, you will NOT want to sign any lease you are given by a gas or leasing company. There are many provisions that may need to be added to a lease to protect you, your land and your finances. A small sampling of things that you may want your lease to dictate, beyond leasing rates and royalties: removal of waste materials from the site; bearing the costs of Clean and Green or other tax penalties; lease extension clauses; permitting gas storage and transmission in addition to extraction; “shut-in” or “holding by production” clauses; defining the primary vs. secondary term of the lease; controlling the number of wells permitted on a property; timber payment for any trees removed; use of ponds as a water source; testing and protection of drinking water supply; the “Pugh Clause”; the landowner’s right to audit the operator’s production data; and landowner indemnification. This is not a comprehensive list, just an illustration that leases are complex legal documents.

Our #1 advice remains: talk to a lawyer who has experience in this field. You do not want to sign any important legal document that may change your land forever without having a lawyer on your side.

Also, get your well water tested. In fact, even if you are not leasing but your neighbors are, it is an excellent idea to test your water supply so that you will have pre-drilling baseline data. The testing needs to be done by a DEP-certified lab in order to be admissible for legal purposes. You can visit the Department of Environmental Protection website ( www.dep.state.pa.us) for a list of approved labs and other information (search under “Energy,” then “oil and gas wells”).

We at the Conservancy are not geologists or gas-rights lawyers, but we are dedicated to helping landowners make the best decisions for their land. We will do our best to put landowners in touch with people who can provide sound advice.

I can’t do better than quote the disclaimer on the Penn State Cooperative Extension web site: This information is for educational purposes only. The information posted here is NOT to be considered as legal advice. Consult a qualified attorney before signing anything!

Last call for the Countryside Conservancy’s 9th Annual Auction! The Auction takes place Saturday, July 12 on the green at Keystone College and tickets are still available. The party starts at 6 pm. Call 945-6995 now to reserve your place!

Mary Felley is the Executive Director of the Countryside Conservancy. Contact her at 945-6995 or cconserv@epix.net

Copyright: Times Leader