Posts Tagged ‘gas’

Nearly $2 million will be allocated for a look at environmental results.

STEVE GELSI MarketWatch

NEW YORK — The U.S. Environmental Protection Agency said Thursday it will conduct a massive study to investigate any potential adverse impact of hydraulic fracturing to extract natural gas, as the energy industry moves to boost domestic natural gas supplies.

The effort comes as part of a move by government officials and academics to grapple with an expected increase in the decades-old practice of extracting natural gas by injecting water and fracturing rock, a practice known as fracking.

In Northeastern Pennsylvania, drilling is proceeding in the Marcellus Shale, a layer of bedrock containing natural gas.

“There are concerns that hydraulic fracturing may impact ground water and surface water quality in ways that threaten human health and the environment,” the EPA said Thursday.

The agency said it’s reallocating $1.9 million to help pay for a “comprehensive, peer-reviewed” study. Regina Hopper, president of industry group America’s Natural Gas Alliance, said the EPA study will help affirm the safety of fracking.

“Hydraulic fracturing has been refined and improved over the past 60 years and has been used safely on more than one million U.S. wells,” Hopper said in a prepared statement. While hydraulic fracturing usually takes place far underground, well below aquifers for domestic water supplies, it also produces wastewater which must be treated on site or trucked off for disposal.

Last month, the House Energy and Commerce Committee launched an investigation into the potential impact and said it would like to see more information on the chemicals used in fracturing liquid.

“Hydraulic fracturing could help us unlock vast domestic natural gas reserves once thought unattainable, strengthening America’s energy independence and reducing carbon emissions,” said Chairman Henry Waxman, D-Calif. “As we use this technology in more parts of the country on a much larger scale, we must ensure that we are not creating new environmental and public health problems.”

Copyright: Times Leader

The organization represents six communities in the Back Mountain area.

By Rebecca Briarbria@timesleader.com
Staff Writer

DALLAS TWP. – Members of the Back Mountain Community Partnership hope to pass an ordinance that addresses natural gas drilling issues.

The partnership is an inter-municipal group composed of Dallas, Franklin, Jackson, Kingston and Lehman townships and Dallas borough.

The group voted Thursday afternoon at Misericordia University to have their solicitor, Jeffrey Malak, perform research as to what can be done to control the drilling process.

Partnership President Al Fox said he did not want to comment as to what the ordinance may contain because he is not sure legally what can be in it.

“Whatever we can do we need to do as quickly as we can,” Fox said.

Malak said the Oil and Gas Act pre-empts local interference in gas drilling.

“I can give you some options of what some other municipalities are doing,” Malak said. “There’s not a one size fits all.”

In a related matter, the partnership shared responses from EnCana Oil and Gas Inc. on questions the public asked company officials during the January meeting.

Fox said the company answered only six of the many questions that were asked during the meeting. The responses briefly addressed issues such as the chemicals used and the prevention of cross contamination.

Tom Yoniski, a representative for state Sen. Lisa Baker, R-Lehman Township, said he can set up a public forum with Penn State University and the Pennsylvania Department of Environmental Protection to inform the public of the state’s plans to protect water quality.

In other news, the partnership approved proceeding to jointly apply for Pennsylvania Commission on Crime and Delinquency funding to purchase Tasers for each municipality’s police department. Franklin Township does not have a department and uses state police coverage, but voted to proceed with the application for the group.

Up to $10,000 is available for each municipality, said Joe Chacke, of NEPA Alliance, a nonprofit organization that provides administrative and professional services to the BMCP at no cost.

Also, Richard Heffron and Veronica Ciaruffoli, of the Luzerne County Government Study Commission, gave an overview on the status of the commission.

Rebecca Bria, a staff writer, may be reached at 970-7436.

Copyright: Times Leader

The Associated Press

HARRISBURG — Pennsylvania will join other major natural-gas states in requiring the prompt disclosure of production results.

State senators unanimously approved the measure Tuesday, six days after the House did the same. Gov. Ed Rendell is expected to sign it.

State legislators are peeling back the cloak of secrecy just as exploration companies are flocking to Pennsylvania in pursuit of natural gas in the sprawling Marcellus Shale formation.

The measure will require the disclosure of well-specific production data every six months. Currently, a 25-year-old state law requires state regulators to keep oil and gas production data confidential for five years.

Supporters say faster disclosure will help companies harvest the gas and let landowners see whether they are getting the royalties they are owed.

Copyright: Times Leader

Recent reports indicate that the gas industry estimates drilling approximately 1750 new gas wells in Pennsylvania in 2010. The cost of investment is expected to be seven (7) billion dollars according to industry sources. Many new jobs will be created along with ongoing environmental concerns.

Dougherty Leventhal and Price LLP represents workers and citizens injured or killed as a result of gas drilling related activities. DLP is a 12 member law firm serving Northeast and Central Pennsylvania for the past thirty years.

By Jen Marckinijmarckini@timesleader.com
Staff Writer

KINGSTON TWP. – A representative of Shaleshock Action Alliance spoke about issues of drilling into the Marcellus Shale at a public meeting on Friday.

The meeting, sponsored by the newly formed group, Luzerne County Citizens for Clean Water, featured a presentation by Andrew Byers, of Ithaca, N.Y.

Gas companies have leased thousands of acres from Benton to Dallas and plan on drilling by “hydro-fracturing,” a high-pressure pumping process that could have detrimental environmental and economic impacts, Byers said.

An estimated 2 million to 9 million gallons of water mixed with chemicals is used per well in fracking, Byers said. Sixty-five of the chemicals are classified as hazardous waste – many causing cancer or birth defects, he said.

According to Byers, products used in natural gas production in Colorado had adverse health effects, including endocrine disruptors.

“This is not waste water,” he said. “This is low-level radioactive fluid.”

Property values have shown to plummet after gas drilling, Byers said, adding that each fracking requires 550 to 2,500 tanker truck trips, which could result in road damage.

In 2005 the gas and oil industry became exempt from the Safe Drinking Water Act. They are not required to comply with federal or local laws.

“We have an industry that is unregulated on a federal level,” Byers said.

About a dozen people are active in the grassroots group that wants to protect its communities, said Audrey Simpson, a member.

A petition to say no to polluted water and unrestricted natural gas drilling in the county was distributed at the evening meeting, which was held at Kingston Township Municipal Building, Shavertown.

The petition asks state legislators to modify state laws to allow restrictions on drilling in populated areas.

State Rep. Phyllis Mundy, who attended the meeting, said she is concerned about the potential harm that could be done as a result of drilling into the Marcellus Shale.

Mundy, D-Kingston, said she and state Rep. Karen Boback, R-Harveys Lake, are working with the chairman of the Environmental Resources and Energy Committee in the House on bills that would provide protection such as buffers around waterways.

“I support a Marcellus Shale severance tax that would be dedicated toward any environmental harm or impact that is caused by the drilling,” Mundy said.

Copyright: Times Leader

Supervisor seeking a meeting with Encana Energy Corp. so questions can be fielded.

EILEEN GODIN Times Leader Correspondent

LAKE TWP. – On Wednesday night, supervisors and residents discussed concerns about gas drilling likely to begin in May or June.

A property off Zosh Road, near the border with Lehman Township, will be a future site of a Marcellus Shale gas drilling operation. Supervisors were unsure of the exact acreage of the property.

Supervisor Amy Salansky said the drilling company is Encana Energy Corp., headquartered in Calgary, Canada, working in partnership with WhitMar Exploration Co.

Knowing residents will have many concerns, Salansky said she is trying to arrange a meeting with Encana Energy Corp. so questions can be addressed.

Concerned about gas trucks blocking roads, resident Charles Kohl questioned supervisors on which routes the trucks will be using. Salansky said an official route has not been submitted by Encana. She added the trucks will not be blocking roads.

“During a recent zoning board meeting, possible routes were discussed but nothing was decided,” she said.

Township solicitor Mark McNealis said it is not up to the supervisors to decide which public roads the gas company can and cannot use.

Chairman Lonnie Piatt said supervisors are looking into bonding roads for weight limits. By bonding roads and posting weight limits, the township is protecting roads from damage caused by heavy trucks.

The procedure to bond a road requires an engineer to study the materials in the road makeup and determine how much weight those materials can sustain.

About three quarters of the township roads are dirt and gravel roads. Zosh Road is one of them. Piatt said that currently the gas company would assume responsibility for repairing and maintaining Zosh Road.

Residents within a mile of the site are being advised to get their well water tested. This would provide them with a starting point baseline to measure if contaminants should leak in.

If residents visit Penn State’s Cooperative Extension’s Web site at http://water.cas.psu.edu and click on “Drinking Water,” then “Testing & Protection” and then “Find a Local Water Lab,” they will find a listing by county of accredited water testing laboratories.

The next supervisors’ meeting is scheduled for 7 p.m. April 14 in the municipal building.

Copyright: Times Leader

A company has an offer for local people in the natural gas-rich Marcellus Shale area.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

Officials with a company in Western Pennsylvania say landowners in the Marcellus Shale region can benefit by banding together to negotiate natural gas drilling leases with energy companies.

Representatives of Dick Landowners Group will be in the area next week meeting privately with some landowners to discuss the benefits that the group can offer, said company owner Deb Dick.

The group organizes pools for landowners for the marketing of oil and natural gas, working to obtain the maximum protection and secure the best financial success for landowners through power in numbers, competitive bidding and a landowner-friendly contract, Dick said.

Dick said all provisions of the contract negotiated with energy companies are contained in the body of the contract, meaning there are no addendums with confusing details.

“In our contracts, we limit what the gas companies get to a well, a road to the well and one pipeline out,” Dick said.

That leaves landowners with the potential for additional income streams if, for instance, the energy company later wants to build a compressor station or install additional pipelines, she said.

For its work, the group charges landowners a one-time fee of 15 percent of the bonus money the landowner would receive for each acre of land leased to the energy company, Dick said.

The company has successfully leased more than 500,000 acres contained in more than 1,700 individual parcels for landowners, including school districts, churches, attorneys and judges over the past three years, mostly in the western part of the state, she said.

The group incorporated as a limited liability company in Pennsylvania in February, according to the Pennsylvania Department of State.

Before that, the group had been operating as a sole proprietorship, Dick said.

Dick said the group plans to offer group meetings in the area in the future.

Copyright: Times Leader

N.J. gas firm eyes $300M income

ANDREW MAYKUTH The Philadelphia Inquirer

A southern New Jersey gas firm that bought a $2 million Marcellus Shale interest in 2008 says it might generate $300 million in income over its lifetime.

South Jersey Industries Inc., the Folsom, N.J., company that owns South Jersey Gas and several nonutility energy businesses, disclosed to analysts that its purchase of mineral rights in northern Pennsylvania could pay off handsomely.

Chief executive officer Edward J. Graham, speaking to analysts about the company’s annual earnings, said two horizontal wells in which South Jersey Industries has a stake will begin producing income this quarter.

He said the gas operator, St. Mary Land & Exploration Co., of Tulsa, Okla., was still tying the wells to a pipeline, but feels “really good about the prospects.”

Two more wells are planned for this year on the 21,000-acre property in McKean County.

In early 2008, South Jersey Industries paid $2 million for an interest in a partnership that owns the deep-gas rights on the property, Stephen Clark, the company’s treasurer, said in an interview. Since then, the value of mineral rights has skyrocketed.

South Jersey Industries estimates that its combined royalties and ownership rights will net 10.25 percent of the value of the gas produced — the company’s share would be about $300 million, based on an average price of $6 per thousand cubic feet.

“It has the opportunity to be very productive for us,” Clark said.

Graham told analysts that it was premature to estimate earnings, which depend upon the number of wells drilled and the price of natural gas. Production could take years, or even decades, to realize.

The estimates illustrate the huge potential in the Marcellus Shale, which lies under much of Pennsylvania and several surrounding states.

Copyright: Times Leader

As a result of the recent Pennsylvania state budget compromise, the Pennsylvania Department of Conservation and Natural Resources recently received bids for the leasing of state lands by gas drilling companies. The leases were for up to 32,000 acres of land in Cameron, Potter, Tioga, Clinton and Clearfield counties. The land is located in State Forests including Sproul, Elk, Tioga and Susquehannock.

According to the DCNR the leases will generate at least $125 million in additional revenues for the State coffers. The leases will also help create jobs. State environmental groups have raised serious concerns over the leases, but DCNR is confident that a balance has been struck addressing all issues.

Dougherty Leventhal and Price LLP represents individual injured as a result of gas drilling related injuries in Pennsylvania. Contact one of DLP’s twelve (12) Pennsylvania personal injury attorneys if you have any questions regarding injuries suffered as a result of companies or individuals related to the Pennsylvania natural gas drilling industry.

Pa. is biggest natural gas producer that does not impose some type of tax.

MARC LEVY Associated Press Writer

HARRISBURG — The natural gas industry in one of the nation’s hottest exploration spots is bracing for a political tussle over whether and how Pennsylvania will tax methane from the potentially lucrative Marcellus Shale formation.

An industry trade association, the Marcellus Shale Coalition, said Thursday it wants any discussion of a tax to involve the high cost to drill a shale well and cumbersome state laws that make it costly to operate.

A tax enacted without addressing issues that hamper exploration companies could encourage some to move resources to shale formations in other states, said coalition president Kathryn Klaber.

“What is important is to look at the broad issues, not just a tax, as to how we make this climate best for growth,” Klaber said. “There are a lot of modernization policies that need to be put in place to develop this massive natural resource.”

On Tuesday, Gov. Ed Rendell issued his annual spending plan for the state and renewed his call to enact a tax identical to West Virginia’s: 5 percent on the value of sale, plus 4.7 cents per thousand cubic feet produced.

Rendell projects the tax would produce $180 million in the fiscal year beginning July 1 and increase to nearly $530 million after five years, including 10 percent set aside for local governments.

Rendell wants money to shore up a state treasury that faces a projected $5.6 billion gap in 2011 and 2012 resulting from spiraling public pension costs and the expiration of federal stimulus budget aid.

Pennsylvania is the biggest natural gas producer that does not impose some type of tax on it.

However, the coalition wants to steer talk of a tax to reflect those imposed by shale states, such as Texas, Arkansas and Louisiana. In those states, the tax is discounted initially to allow the exploration companies to recoup a multimillion-dollar investment in each well.

For instance, Texas imposes a 7.5 percent tax but discounts it for 10 years or until the operator recovers 50 percent of the drilling and completion costs. In Arkansas, the state imposes a 5 percent tax on natural gas production but discounts it to 1.5 percent for at least three years.

Last year, Rendell called for the same tax rate on gas. After months of Republican-led opposition, he relented, saying he did not want to hurt an industry in its infancy.

In recent weeks, Rendell has said he believes the industry can afford to pay a tax, and pointed to the heavy influx of cash into Marcellus Shale exploration ventures.

For now, production from the Marcellus Shale is still in the early stages. Fewer than half of the approximately 1,100 wells drilled in Pennsylvania are connected to pipelines that can bring the gas to customers.

Environmental groups and the Pennsylvania State Association of Township Supervisors support a tax. The Senate’s Republican majority has not ruled out the eventual imposition of a tax, although Senate Appropriations Committee Chairman Jake Corman, R-Centre, called it “premature.”

Copyright: Times Leader