Posts Tagged ‘gas’

Forced into drilling

By Elizabeth Skrapits (Staff Writer)
Published: July 11, 2010

DALLAS TWP. – Mary Alice Frederick became nervous in March when she discovered her neighbor, the Irem Temple Country Club and the Masonic Village development, had leased mineral rights to a natural gas company.

“I can’t put a chicken coop in my backyard but people can put heavy industry all around the township. I don’t understand that,” the retired Dallas school teacher said. “It doesn’t make sense. It doesn’t seem fair.”

A proposal on the table that would allow natural gas companies to take gas from beneath people’s properties regardless of whether or not they have leased their mineral rights, Frederick now fears losing the peace and quiet of her beloved neighborhood.

In exchange for a tax on natural gas extraction, gas companies are seeking what they call “fair pooling,” legislation that would require property owners without leases to allow drilling beneath their land in exchange for a share of royalties to be determined. However, the gas companies could not put a drilling rig on unwilling owners’ properties. Landowners call “forced pooling.”

“Gas companies are just bullying their way in and telling the legislators what they want. It should be the reverse,” Lehman Township resident Joseph Rutchauskas said. “It’s a democracy, not a corporate dictatorship.”

Rutchauskas lives near two sites permitted for natural gas wells. In August, Encana Oil & Gas USA Inc. intends to start preparing one in nearby Lake Township for drilling, and has all the requirements for a well in Lehman Township. Encana recently notified Lehman Township supervisors they do not plan to drill the third well in Lehman Township.

“I do not support that one bit because I feel it’s a violation of my rights,” Rutchauskas said about forced pooling. “I don’t think anyone should have the right to tell me they can drill under my land without my consent.”

He said his development, which has 10 properties, is protected by covenants that do not allow drilling of any kind, including beneath the property.

“We would have to change the covenants to allow it, and nobody in the development wants to do that,” Rutchauskas said.

He said the question of whether the covenants would hold up under a forced pooling law would have to be answered legally.

“I would take it to court to whatever level necessary,” Rutchauskas vowed.

Irem Temple Ancient Arabic Order Nobles Of The Mystic Shrine have leased 355.91 acres to Chesapeake Appalachia, LLC. The land completely surrounds Frederick’s half-acre property.

The concept of forced pooling scares Frederick, who was already concerned about the potential to turn her quiet suburban street into an “industrial zone.” She opposes natural gas drilling because of potential harmful effects on the environment. She also doesn’t like the idea that foreign investors from countries such as United Arab Emirates and China have interests in natural gas companies.

“I don’t want to be part of this,” Frederick said. “I do have a conscience.”

Irem Recorder Harry Wood said the organization has not heard anything from Chesapeake about plans for the site.

“I don’t blame them,” he said in response to residents’ concerns about forced pooling.

However, Wood said gas drilling would be done far enough away from homes that they shouldn’t be affected, even in the case of horizontal drilling.

“Everybody has the wrong idea about that. It would never be allowed on any of these properties. If any drilling would be done it would be on the top of the hill, or away from the residences,” he said.

Developing the Irem Golf Course is also not an option, he said.

“I’m not going to take a $7 million golf course and put a drilling rig in the middle of it,” Wood said.

eskrapits@citizensvoice.com, 570-821-2072

View article here.

Copyright:  The Citizens Voice

About that Water in Your Well

Study says millions of PA residents relying on private water wells that may contain contaminants – none of which are related to the Marcellus Shale

Nearly 20,000 new wells are drilled in Pennsylvania every year. And among these, not a single one of them has anything to do with oil or natural gas.

Instead, these wells are drilled for the purpose of accessing underground sources of water. In Pennsylvania, more than three million residents rely on private wells for essential sources of potable water – second most in the entire nation behind Michigan. So lots of wells must mean lots of good, high-quality drinking water, right? Not according to a report issued last year by researchers from Penn State.

The study, available here and commissioned by the Center for Rural Pennsylvania, was conducted over two years and drew on samples from more than 700 individual private water wells installed all across the state. What did the researchers find? For starters, a full 40 percent of tested wells failed to meet the state’s drinking water standards for safety. Keep in mind that Pennsylvania supports more than 1 million private water wells – which means it’s possible that more than 400,000 water wells, serving roughly 700,000 residents, are of a quality and nature of potential concern. And the worst thing about it? According to the survey, very few of these well owners even knew they had a problem.

With more than 1,300 Marcellus wells developed in Pennsylvania this year, it’s become a popular thing to assume that wells drilled for the purpose of tapping enormous and clean-burning reserves of natural gas 5,000 to 9,000 feet below the water table are having a deleterious impact on underground drinking water. The alleged culprit? A commonly deployed well stimulation technology known as hydraulic fracturing, a technique that’s been used more than a million times over the past 60 years not just for oil and natural gas, but forgeothermal production and even by EPA for Superfund clean-ups.

But as mentioned, the report on private water wells from Penn State was issued in 2009, roughly 50 years removed from the first-ever application of fracturing technology in the Commonwealth — and five years after the fracturing of the first-ever Marcellus Shale well. In other words, hydraulic fracturing has been around an awful long time in Pennsylvania, and so has the development of oil (1859) and natural gas (1881). So if the critics are right, those activities must have been identified by researchers as the greatest threats to the state’s underground water resources, right?

Take a look for yourself:

Of the 28 variables measured for each well, the results demonstrated that natural variables, such as the type of bedrock geology where the well was drilled, were important in explaining the occurrence of most pollutants in wells. Soil moisture conditions at the time of sampling were the single most important variable in explaining the occurrence of bacteria in private wells. … Inadequate well construction was strongly correlated with the occurrence of both coliform and E. coli bacteria in wells.

That’s right – we forgot to mention the fecal coliform (exactly what you think it is) and E. coli bacteria. According to the report, it turns out that 33 percent of private water wells in PA were found to be contaminated with the coliform, while a staggering 14 percent tested positive for E. coli. Another contaminant of concern is naturally occurring arsenic. Two percent of tested wells had increased levels of that, which potentially translates into 20,000 water wells across the state. According to the report, arsenic “most often occur[s] naturally from certain types of rocks but it can also come from treated lumber and pesticides.” Incidentally, Pennsylvania is among the only states in the nation without regulations governing the construction of private water wells or the periodic testing of the quality of water that comes from them.

This presentation prepared by the U.S. Geological Survey will take a minute or two to load, but take a look at slide 23 if you get the chance. Turns out Pennsylvania’s water wells are among the only ones in the nation with “high contaminant concentrations” for every one of the Big 3: arsenic, nitrates and radon. Again: Nothing in the report remotely related to Marcellus Shale activities. But don’t take our word for it – ask DEP (by way of Scott Perry, director of DEP’s Bureau of Oil and Gas Management):

“If there was fracturing of the producing formations that was having a direct communication with groundwater, the first thing you would notice is the salt content in the drinking water. It’s never happened. After a million times across the country, no one’s ever documented drinking water wells that have actually been shown to be impacted by fracking.”

Protecting underground sources of drinking water is and will always be our top priority – after all, we live here too. But if we expect the quality of our water to improve, first we’ll need to be honest about how it got where it is today, and then we’ll need to get serious about what needs to be done to improve it. That, we think, is what you’d do if you genuinely cared about the state and status of Pennsylvania’s private water wells. Unfortunately, too many folks seem all too willing to blame the entire phenomenon on the development of the Marcellus Shale – irrespective of the science, and blind to the history of the past 60 years.

Copyright: Marcelluscoalition.org

What They’re Saying: MSC Applauds PA Budget Agreement, Stands Ready to Work with Lawmakers on Comprehensive Framework for Developing the Marcellus

  • MSC President Kathryn Klaber: “[W]e need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface
  • [Severance] tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry.

Shale Coalition Wants “Fair Tax” & Modernized Rules. Marcellus Shale Coalition President Kathryn Klaber says the fiscal code language about the severance tax proposal includes a commitment by elected leaders to conduct a comprehensive evaluation of “how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.” Klaber called on state lawmakers not to look at the severance tax in a vacuum, that there is more at stake than putting a little extra money in state coffers…..”we need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface.” (WDUQ Radio, 7/7/10)

Pennsylvania needs to stay “ahead of the curve in terms of investment”: “The Marcellus Shale is not the only shale play that is under development in the United States, said Kathryn Klaber, president and executive director the Marcellus Shale Coalition.”There is a lot of competition for dollars” to develop gas wells, she said. Pennsylvania needs to stay “ahead of the curve in terms of investment” in gas drilling, Klaber said in a conference call with reporters on Tuesday. (Towanda Daily Review, 7/7/10)

Marcellus Shale represent[s] a tremendous opportunity: “The rich natural gas deposits in the Marcellus Shale represent a tremendous opportunity in the form of new jobs and economic stimulus to mostly rural communities across the commonwealth,” said Governor Rendell. “We have a responsibility to ensure that the economic benefits are balanced with the need to protect the local environment and the residents of communities where the work is being done.” (Pocono News, 7/7/10)

Gas rush has generated a frenzy: In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. The gas rush has generated a frenzy in the region over the past two years. In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. (New York Times, 7/7/10)

Comprehensive Evaluation of State Natural Gas Laws Needed: Now that the legislature has agreed in principle on the tax, energy industry leaders are hoping to influence the debate on the tax and regulation in coming months. The Marcellus Shale Coalition, an industry group, said on Tuesday the tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry. Klaber argued that a “fair tax strategy,” coupled with laws and regulations that recognize the industry’s recent technological gains, would allow Pennsylvania to compete for new investment in the booming industry. (Reuters, 7/7/10)

For Mom, it’s just overwhelming: On a farm north of this old timber town that stretches out along the banks of the Susquehanna River, Perry Landon’s 82-year-old mother confronts the promises and trepidation of a new era of energy wealth. “For Mom, it’s just overwhelming,” Landon says. “She grew up in the Depression. Her parents were very poor. It’s hard for her to get her mind around this amount of money, and that you would get it for doing nothing.” Gas is testing oil’s position as the most sought-after energy commodity, as the global hunt for black gold faces technological limits, environmental risk and relentless political instability in oil-rich regions. (New York Times, 7/7/10)

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

View article here.

Copyright:  The Scranton Times

All Wet on Fair Pooling

Fair Pooling protects the environment, reduces environmental footprints, and generates more revenue for environmental programs – so why do environmentalists oppose it?

CANONSBURG – When is an environmentalist not an environmentalist? How about when he sends a letter to lawmakers in Harrisburg demanding they reject a proposal that would result in greater efficiency in developing clean-burning natural gas from the Marcellus, far less disturbance to land while doing it, and millions in revenue for state programs to protect and preserve the environment?

Unfortunately, that’s precisely the letter that members of the General Assembly received this week – sent by a coalition of more than 30 groups that claim to support all the things that a Fair Pooling statute in Pennsylvania would make possible (smaller footprints and more revenue, especially), but nonetheless stand in opposition to the adoption of the actual plan.

Of course, virtually every energy-producing state in America has fair pooling protection on the books – and for good reason. Fair pooling allows for “equitable and efficient development of [natural gas] while preventing the drilling of unnecessary wells,” according to Michigan’s Department of Environmental Quality – “at the same time, it protects an owner from having his or her oil and gas drained without compensation.”

The Harvard Law Review agrees: “Pooling is important in the prevention of drilling of unnecessary and uneconomic wells, which will usually result in physical and economic waste.” That line comes from an article on efforts to conserve oil and natural gas published in the Review back in 1952.

So if these environmental groups can’t defend their opposition to Fair Pooling onenvironmental grounds, what arguments do they use instead? See below a quick side-by-side of the charges leveled by these groups’ compared with the actual facts of what Fair Pooling is, and what it is not.

Activists search for reasons to oppose Fair Pooling … … Even though Fair Pooling is a clear win for PA’s environment and landowners
“[P]ooling … would force property owners in Pennsylvania to lease their mineral rights to a gas company…”

(Letter from Myron Arnowitt to General Assembly, PA Campaign for Clean Water; co-signed by 30 others; June 29, 2010)

Fair pooling isn’t about forcing anyone to do anything. It’s about creating an equitable system that allows private landowners to exercise their private mineral rights for the benefit of themselves and their families.

Landowners who decide not to lease will not be considered leasees, nor will they see a rig on their property or an inch of their land disturbed. The only thing they will see? A check in their mailbox each month.

“Some landowners have decided they do not want to lease their mineral rights … The oil and gas industry would like the General Assembly to overturn the landowners’ decisions.” (letter) Once again, they have it exactly backwards. Landowners who don’t want to lease their land for Marcellus development will not be forced to lease their land under Fair Pooling. But they also won’t be allowed to deny their neighbors that same choice.

Click Here for MSC’s fact sheet on Fair Pooling.

“It has been argued that … pooling would result in a less disruptive and more environmentally protective approach to drilling for natural gas in the Marcellus Shale. However, there is no evidence that … pooling diminishes environmental impact. … [P]ooling should not result in forced pollution.” (letter) No evidence?

The principle of Fair Pooling as a tool of oil and gas conservation and environmental protection is as old the development of energy itself – and “a vital regulatory tool created to conserve oil and gas, protect correlative rights and prevent waste,” according toTexas Tech University (in case you don’t believe theHarvard Law Review or the state of Michigan).

“[Pooling] essentially extends the concept of eminent domain but instead of using private property for the public good, it takes private property for private gain.” (letter)

Copyright: Marcelluscoalition.org

For the small minority of landowners who have not leased, conservation pooling ensures two important outcomes: (1) a fair share of royalties (whereas, under current law, gas can be extracted from under their property without any compensation); and, (2) a guarantee of no surface interference (i.e., no drill, no pipelines, no roads, etc.).

Cattle may have drunk drill water

State quarantines cattle in Tioga County after exposure to drilling wastewater.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

WELLSBORO – The state Department of Agriculture on Thursday announced that it quarantined cattle on a Tioga County farm after it was discovered that they might have ingested drilling wastewater from a nearby Marcellus Shale natural gas well.

Agriculture Secretary Russell Redding said in a press release the quarantine was warranted to protect the public from eating potentially contaminated beef.

“Cattle are drawn to the taste of salty water,” Redding said. “Drilling wastewater has high salinity levels, but it also contains dangerous chemicals and metals. We took this precaution in order to protect the public from consuming any of this potentially contaminated product.”

Redding said 28 head of cattle were included in the quarantine, including 16 cows, four heifers and eight calves. The cattle were out to pasture in late April and early May when a drilling wastewater pit on the farm of Don and Carol Johnson leaked, sending the contaminated water into an adjacent field, where it pooled.

The holding pond was collecting flowback water from the hydraulic fracturing process on a well being drilled by East Resources Inc.

Grass was killed in a roughly 30-foot-by-40-foot area where the wastewater pooled. Although no cows were seen drinking the wastewater, tracks were found throughout the pool, and the cattle had access to it for at least three days until the gas company erected a snow fence around it.

Testing showed the wastewater contained chloride, iron, sulfate, barium, magnesium, manganese, potassium, sodium, strontium and calcium. Redding said the main element of concern is the heavy metal strontium, which can be toxic to humans, especially children.

The secretary said the quarantine will follow guidelines from the Food Animal Residue Avoidance and Depletion Program, which recommends holding the animals from the food chain based on their stages of development – six months for adult animals, eight months for calves exposed in utero and two years for growing calves.

None of the animals appeared sick, department spokesman Justin Fleming said.

In response to the leak, the state Department of Environmental Protection issued a notice of violation to East Resources and required further sampling and site remediation. DEP is evaluating a final cleanup report and continues investigating drill site operations and circumstances surrounding the leak.

An East Resources spokesman did not return a call seeking comment.

Carol Johnson said East Resources personnel were on-scene within an hour of being alerted to the problem and did “everything they could possibly do.” They found that the leak occurred because of a 2-foot tear in the pit liner. The contaminated soil was removed and disposed of at a facility in Ohio, she said.

DEP is putting together a new list of chemicals found in hydraulic fracturing fluids. A list the department released to The Associated Press on Monday contained not only chemicals used in hydraulic fracturing – a process used to break up the shale formation so the natural gas is released – but also all chemicals found on well-drilling sites.

Copyright: Times Leader

Bucking Trends: Marcellus Shale Producing Counties Continue to Add Jobs as Unemployment Climbs Elsewhere

Marcellus job growth the largest “for any sector in [PA], save for…temporary census jobs”

Want to know how tough the economy is in Pennsylvania right now? Of the Commonwealth’s 67 counties, only five did not lose jobs over the past 12 months. But only two of those counties actually improved their unemployment rate (that is, lowered it) by more than two percentage points compared to last year. And wouldn’t you know it — they just happen to be neighbors: Bradford and Tioga Counties. One other thing they share in common: They both happen to be places were Marcellus Shale producers are investing millions of dollars a day to develop clean-burning natural gas for the Commonwealth.

You’ve heard of the Marcellus Multiplier, now meet the Rural Revitalizer. Take a look at the numbers for yourself: In counties where the responsible development of the Marcellus Shale is taking place, jobs are being created, unemployment rates are being held at bay, and millions of dollars are being returned to local governments to provide for essential services.

Bradford County’s story is among the best. In 2009, the local unemployment rate was approaching 11 percent. Today? As recently reported by the Towanda Daily Review, it “leads the state of Pennsylvania in new job creation with 2,000 more people employed than one year ago.”

Today’s Scranton Times Tribune sheds additional light on the positive and lasting impact that Marcellus Shale development is having on job creation and growth across the Commonwealth:

In May, a Penn State University study funded by the natural gas industry said development in the Marcellus Shale region would create 88,000 jobs in 2010. With unemployment up in the state, Bradford County has bucked trends with an unemployment rate that has gone down in the last year.

The Current Employment Statistics for the state in May show statewide mining and logging employment of 23,900, up 2,300 for the year. That growth, 10.6 percent, is the largest rate of growth for any sector in the state, save for federal government employment gains from temporary census jobs.

In Bradford County, an area of high drilling activity, seasonally adjusted unemployment is down a full percentage point, from 8.8 percent last year to 7.8 percent in May. Establishment data, a count of jobs in the county, showed a 1,100-job gain during the year, or 5 percent, to a total of 22,900 jobs, according to state data.

Regional Newspapers Highlight the Economic, Workforce Opportunities for Pennsylvanians

  • “With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands. New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry. … An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year. (Scranton Times Tribune, 6/28/10)
  • It’s just a great opportunity for people to really see what opportunities this industry can provide,” Thompson said. “And it’s not limited to natural gas drilling and extracting. It’s everything. It touches so many different verticals, from food, insurance, gas rig and well site construction, it really runs the gamut of what a lot of people in this area have been doing well for years.” (Morning Times, 6/28/10)

Editorial Pages Underscore the Opportunities Created Through Responsible Marcellus Development

  • “Ground was broken Tuesday afternoon for a Natural Gas Park that will serve the needs of an energy source for the next century. In the evening, Williamsport City Council approved a land development plan for a new gas industry tenant at 240 Arch St. with the potential for 200 to 250 jobs. … These opportunities for our region, its families and its economic profile come along once in a lifetime. (Williamsport Sun-Gazette Editorial, 6/29/10)
  • Good news for Valley was millions of years in the making: “Marcellus Shale covers an area equal to Pennsylvania and Ohio combined, but the good news locally was concentrated on a plot the size of a couple of city blocks straddling the border of Youngstown and Girard. It was there that ground was broken for V&M Star’s expansion, a $650 million project that will provide construction jobs now and, eventually, 350 jobs making oil-country grade pipe. … Now, with new technology and increasing demand for clean-burning natural gas, investors are looking at drilling thousands of Marcellus Shale wells. And hundreds of miles of pipe for those wells will be coming from the Mahoning Valley. (Youngstown Vindicator Editorial, 6/30/10)

To join our fight for more affordable, stable supplies of American-made energy, and for more jobs across the region, visit Marcelluscoalition.org, and become a “Friend of Marcellus.”

NEPA schools preparing workers for jobs in gas-drilling industry

BY STEVE McCONNELL (STAFF WRITER)
Published: June 28, 2010

With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands.

New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry.

Already, Lackawanna College and Johnson College in Scranton, Keystone College in LaPlume and the Pennsylvania College of Technology in Williamsport represent the growing trend of educational institutions offering course work and the hands-on training needed to become employable in one of Pennsylvania’s growing industries.

And, college administrators agree the reason for the trend is simple: There’s a demand for it by both the industry and potential workers who want the training and the jobs that come with it.

An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year.

“Marcellus Shale is going to be big business,” said Christopher Kucharski, Lackawanna College spokesman. “Problem is there is just nobody trained to handle the positions they want filled.”

It appears a change is under way.

Larry Milliken, director of Lackawanna College’s energy program and a natural gas instructor, just finished guiding the first class of 18 students through its first year of study to earn an associate degree in natural gas technology.

Based at the college’s New Milford campus in the center of the action near gas fields in Susquehanna County, the program is preparing students for well tender jobs – a position that requires monitoring and maintaining natural gas wells during their lengthy production phase.

There is generally one well tender employed for every 20 to 40 natural gas wells, Mr. Milliken said, and the entry-level annual salary is $36,000. Sixteen students have paid internships with natural gas drilling companies this summer in western Pennsylvania, he added.

“The industry has been very supportive of wanting to get (our students) on board,” he said. The college also is hiring three additional instructors this year to accommodate the increase in students who have enrolled in the natural gas technology degree program for the 2010-11 school year.

At Lackawanna College’s new campus in Hawley, college administrators recently announced a new certificate course for fall centered on training accounting assistants, accounting clerks and administrative assistants specifically for the oil and gas industry.

Tracy Brundage, managing director of work force development at Pennsylvania College of Technology, said administrators decided to take the leap into offering natural gas drilling-related courses this year. The decision followed an in-house study that determined growing employment opportunities because of the prevalence of natural gas development under way in the region.

“The jobs are going to be around for a long time,” Ms. Brundage said. “We’re just getting started … to get our arms around what is happening … and how we need to respond.”

Pennsylvania College of Technology has just begun offering training and certification classes in welding specialized for the industry’s infrastructure and commercial driver’s license classes, and has tweaked some of its academic majors – including diesel and electrical technology – to include natural gas drilling-related coursework.

So far, about 350 students have enrolled in the non-degree programs.

The college plans to expand its offerings, perhaps to include training for natural gas well operators and emergency response technicians, Ms. Brundage said.

Keystone College, known for its focus on the liberal arts, is also jumping on board.

Robert Cook, Ph.D., the college’s environmental resource management program coordinator, said the college will be offering a handful of new courses early next year that include mapping underground natural resources tied specifically to natural gas.

The environmental resource management degree, a four-year Bachelor of Science, has had its “highest level of interest this year” in part because of the Marcellus Shale boom and an expectation that jobs will be available for graduates, Dr. Cook said. The degree, which includes environmental law courses, can also prepare a would-be environmental regulator, he added.

“It’s clear energy is going to be an important subject for decades,” said Dr. Cook, a professional geologist. “It’s thrilling to see our discipline become an important skill set.”

Keystone is also hiring a new instructor to teach undergraduate courses within a new natural gas and petroleum resource curriculum that is now under development.

Marie Allison, director of continuing education at Johnson College, said the college will be offering its first class in pipe welding next week tailored to techniques needed by the natural gas industry. The college also will offer a class for advanced welders to prepare for certification in a specific style of welding demanded by the industry.

The college’s welding program had been defunct since 2001, because of declining enrollment, but the multitude of pipes and fittings that will be laid by the industry in the coming years yields greater demand for skilled welders, she said.

“They need welders,” Ms. Allison said. “We want to give someone the fundamentals and give them the opportunity to find a job.”

Contact the writer: smcconnell@timesshamrock.com

View this article here.

Copyright:  The Scranton Times

It’s Up To You New York

The economic benefits associated with the responsible and environmentally sound development of the Marcellus Shale’s abundant, clean-burning natural gas reserves are overwhelming. Tens of thousands of good-paying jobs are being created across the Commonweal of Pennsylvania, where Marcellus development has been underway for several years. Hundreds of millions of dollars in tax revenues are being generated to local and state government. And Pennsylvania consumers, who continue to struggle with nearly double-digit unemployment rates, are seeing the benefits of shale gas development in the form of lower energy costs.

However, the story of the Marcellus Shale in New York State is a very different one. You see, in terms of geology, the Marcellus Shale formation is not considerably different in New York than it is in Pennsylvania. The technologies used to safely and effectively reach thesejob-creating resources are the same, too. But environmental regulators there have kept this production off-limits, denying the creation of thousands of jobs and countless other economic benefits to the region, despite the fact that the nation’s first natural gas well was completed in Fredonia, NY in 1821. At the same time, some elected state leaders are also working to implement an even more far-reaching moratorium on shale gas development.

Recognizing how critical this development is for Upstate New York’s struggling economy, and for our nation’s energy security, Marcellus Shale Coalition (MSC) president Kathryn Klaber joined a broad group of organizations this week in a letter to the State Assembly urging their support to move forward with responsible shale gas development: Here are key highlights from that letter:

We need your support for this compelling economic development opportunity, one that could benefit the State and localities significantly for years to come. We should embrace our State’s ability to bring New York-produced gas to New York customers, and by so doing create new opportunity and prosperity in our own State.

Natural gas is the cleanest fossil fuel known to man – is a solution to reducing our nation’s carbon footprint, and it will greatly improve New York’s and America’s energy independence. … And natural gas is abundant; the Marcellus Shale alone could supply natural gas to the entire United States for 20 years or more.

Based on economic projections in Pennsylvania, where the Marcellus is now being explored, Marcellus Shale development in New York will generate more than $1.4 billion in annual economic impact, based on 300 wells drilled – including more than $100 million in lease payments to landowners, $32 million in state tax revenue and tens of thousands of new jobs over time. In Broome County, a recent study that showed that 2,000 wells would annually generate more than $7.4 billion in economic activity, and nearly $400 million in wages, salaries and benefits. Also, more than $600 million in property tax income and $22 million and $20 million in state and local taxes would be generated. All of this – in just one county.

The folks in New York, especially those along the Southern Tier where Marcellus development would occur, are doing their part to educate, engage and inform the public, and key stakeholders, about the overwhelmingly positive benefits associated with shale gas production and how safe the process actually is. Last night, a group of elected officials, academics, landowners, and energy and labor representatives met in Binghamton to discuss these benefits, and to dispel the myths about the production of shale gas. The Ithaca Journal reports this today under the headline “Meeting touts benefits of tapping into Marcellus Shale”:

According to Syracuse University Earth Sciences professor Don Siegel, these concerns are more myth than reality. “This is the first environmental issue that I’ve thrown my hat into the ring on,” he said. “As a hydrogeologist, I really am almost offended by some of the opposition that’s trying to paint a picture of what groundwater resources are like that is completely wrong.”

“New investments will be made in a region where multimillion — and even multibillion — dollar investments have not been seen to this level in years,” said Broome County Executive Barbara Fiala,” and we can do all this while protecting the environment.”

“Our campus was one of the fastest-growing campuses in the United States, and virtually all of our graduates were going out into very good-paying energy industry jobs,” Drumm said. “The energy industry creates great jobs — lots of jobs — and we were heavily involved in our colleges in training for those jobs.”

Labor unions are also speaking out for responsible shale gas development in New York on behalf of their members. This from a WICZ-TV report:

Local union representatives were on hand as well, supporting the notion that jobs and money are on the coat tails of hydro-fracking.

Alex Barillo of Laborers Local 785 says he’s seen the benefits of drilling south of the border in Pennsylvania, and on the Millenium Pipeline where he says workers have seen a gross income of approximately 35 million dollars.

“That’s $35 million in gross wages that went to local workers right here so that they could have health insurance, they can have retirement, and they could pay their mortgages and so that they can do the things they do every day in their communities,” Barillo said.

We encourage you, your employees, colleagues, businesses associates, friends and family to visit Marcelluscoalition.org/get-involved, and join this fight for a more prosperous economy that leverages these resources into permanent, family-supporting jobs and stable supplies of domestic energy. Becoming a “Friend of Marcellus” will help ensure that you are informed and educated about the opportunities and critical issues surrounding this development, especially as it relates to moving forward with Marcellus development in New York.

Copyright: Marcelluscoalition.org

What They’re Saying: Marcellus Shale “a wonderful thing”; Creating tens of thousands of “family-sustaining jobs”

  • “There were a lot of people around here who had a nicer Christmas last year because of the gas busines
  • “The greatest economic and clean-energy opportunity of our lifetime
  • “This is a good thing for us”


Marcellus Shale creating “family-sustaining jobs”
: John Moran Jr., president of Moran Industries, described the arrival of the natural gas industry as “a wonderful thing” that will both create “family-sustaining jobs” and lead people to finally “really believe the clouds (have) parted.” He likened the gas industry to “a blessing from God” and predicted a trickle-down effect and creation of new wealth unlike anything seen here since the long-ago lumber era. Heinz said the gas industry brings to the area “unlimited” business and employment opportunities. (Williamsport Sun-Gazette, 6/23/10)

Responsible Marcellus development benefiting “the mom-and-pops”: “The burst in industrial activity creates new business opportunities and spinoff benefits for established companies, said Marilyn Morgan, president of the Greater Montrose Chamber of Commerce. “We’ve got a lot of entrepreneurs,” she said, including vendors selling food at drilling sites and start-up laundry services cleaning clothes for gas-field workers. “The mom-and-pops are starting to see some economic benefits,” Morgan said. “Restaurants are seeing a difference.” (Towanda Daily-Review, 6/23/10)

Sen. Mary Jo White: Marcellus Shale “the greatest economic, clean-energy opportunity of our lifetime”: “It must be noted that this activity has generated billions of dollars for landowners, including the state, through lease and royalty payments, as well as hundreds of millions of tax dollars through corporate and personal income, sales, fuel and other taxes. … Without question, we must ensure that drilling occurs in a responsible manner. Thanks to increased permitting fees, we now have twice as many permit reviewers and inspectors on the ground than before the Marcellus rush. … The Marcellus Shale presents perhaps the greatest economic and clean-energy opportunity of our lifetime. (Pittsburgh Post-Gazette, 6/23/10)

Marcellus Shale expanding PA’s workforce, small businesses: “According to Heinz, M-I SWACO initially will employ about 20 to 30 people at or working out of the Moran site, but he predicted the numbers will grow. … Among the employment opportunities are skilled positions for field engineers. Those hired locally will be those with both high school and college degrees, who will train before going out to well sites, according to Heinz. (Williamsport Sun-Gazette, 6/23/10)

Congressman Joe Pitts: Marcellus Shale will benefit local companies, “reduce energy costs while improving air quality”: “A Penn State University estimate shows that there is now enough gas in the Marcellus Shale to supply the entire U.S. for more than 14 years. Obviously, the Shale is not going to be tapped all at once and will not be the sole source of gas in the U.S., meaning that wells in Pennsylvania will provide a source of natural for decades. It is estimated that natural gas exploration could lead to more than 100,000 jobs statewide. While Pennsylvania’s 16th Congressional District is not located above the shale,local companies will certainly benefit. … With many Pennsylvanians looking for work we shouldn’t pass up this opportunity to create new jobs. Responsible development of the Marcellus Shale can reduce energy costs while improving air quality. (Pottstown Mercury,6/23/10)

Marcellus Shale generating new jobs, significant revenue for local, regional businesses: “Larry Mostoller’s company moves up to 1 million gallons of water a day for Cabot Oil and Gas Corp. “My company has grown 300 percent in one year.” “I employ 80 percent of my workforce from Susquehanna and Wyoming counties,” he said. “I’m definitely going to go over 100 (employees) this year.” Despite controversy about the economic, environmental and employment impacts of Marcellus Shale natural gas development, the industry generates new jobs and significant revenue for regional businesses. … A recent Penn State University study financed by the gas industry concluded that drilling companies spent $4.5 billion in the state in 2009 and helped create 44,000 jobs. (Citizens Voice, 6/23/10)

Marcellus development helping local school districts, “Taxpayers like the idea”: “A school district in Bradford County is now caught up in the natural gas boom. Towanda Area School District agreed Monday night to a $500,000 gas lease with Chesapeake Energy. … “This is added money that we didn’t have before, new money,” said school board vice president Pete Alesky. … There won’t be big gas drilling rigs on the actual school property. The lease only allows the gas company to drill underneath the land. If the gas company finds gas there, then the school district can make more money by getting 20 percent royalties. “They should get in it. The opportunity is there to get some money and they should get it,” said taxpayer Howard Shaw of Wysox Township. … Taxpayers who talked with Newswatch 16 liked the idea of the district getting the surge of cash. (WNEP-TV, 6/22/10)

Marcellus Shale ‘crop’ sustaining family farms: “Natural gas is a new crop for farmers in many parts of the state. It is harvested thousands of feet below the topsoil. This new revenue it generates has allowed countless farms to stay in business, repair and upgrade their barns and buy new equipment to plant their crops. The lease revenue has saved many farms from development and allowed farmers to invest in modern no-till equipment to farm in a more efficient and environmentally friendly way – both are good for water quality and the environment. (Wilkes-Barre Times Leader LTE, 6/22/10)

Marcellus Shale send rail yards booming, boosting “overall economic development”: “A $500,000 upgrade of the historic rail yard in Fell Twp., which was built in 1825 to help ignite the region’s coal boom, is a good example of the region’s new gas industry’s ability to boost overall economic development and of the growing importance of rail freight to the region. The project will make possible the easy delivery, by rail rather than truck alone, of many of the materials used in the booming Marcellus Shale drilling industry. … The rail yard upgrade is a good example of how to use the gas industry to boost general economic activity. (Scranton Times-Tribune Editorial, 6/22/10)

PA prof.: Marcellus “energy, income, jobs a good thing for us”: “Debate about the economic effect may overlook the impact on the ground, said John Sumansky, Ph.D., an economist at Misericordia University in Dallas. “The burst of energy and income and jobs coming from this spills over to a sector where the economy has been lagging in this region,” Sumansky said. “This is a good thing for us, especially in the fields of transportation and construction.” It is a good thing for Latona Trucking and Excavating Inc., a Pittston company that does well-site preparation and hauls water for Chesapeake. On some days, up to 60 of the company’s 120 employs do gas-related work, said Joseph Latona, company vice president. … “This will probably be our best year ever in business.” (Towanda Daily-Review,6/23/10)

200,000 well-paying jobs will be generated over the next decade: “It is likely, with the continued development of the Pennsylvania Marcellus Shale and the aging of the current natural gas industry workforce, that more than 200,000 well-paying jobs will be generated over the next decade, with an even greater number as drilling activity increases. … There is an immediate need for truck drivers/operators, equipment operators, drillers, rig hands, geologists/geophysical staff, production workers, well tenders, engineers, land agents and more. (PA Business Central, 6/22/10)

Marcellus Shale is saving small businesses, allowing folks to have “a nicer Christmas”: “Donald Lockhart sees a big difference over the last two years at his restaurant and gas station in South Montrose along Route 29, a major artery for drilling-related traffic. “We’ve better than tripled our business since last year,” Lockhart said as he sat in a booth in the dining area while a flatbed truck hauling an industrial generator idled outside. “I’m selling more Tastykake than they are in the grocery store.” … “They saved my business by coming here.” … Dozens of small businesses in the Endless Mountains region benefit from gas development, Mostoller said. … “My employees live better because they work in this industry,” Mostoller said. “There were a lot of people around here who had a nicer Christmas last year because of the gas business,” Lockhart said. (Towanda Daily-Review, 6/23/10)

The game-changing resource of the decade: “The extraction of shale natural gas is set to become a major growth industry in the United States. Recently, Amy Myers Jaffa wrote in the Wall Street Journal that natural gas could become “the game-changing resource of the decade.” Already Pennsylvania, West Virginia, Louisiana, and other states are beginning to reap the economic benefits of a natural gas boom. A study by Penn State University predicted that the natural gas industry in Pennsylvania alone will be responsible for the creation of 111,000 jobs and for bringing in an additional $987 million in tax revenue to the state by 2011. Natural gas extraction has been one of few industries growing (without government subsidies) during this recession. (Biggovernment.com Op-Ed, 6/23/10)

Copyright: Marcelluscoalition.org