Posts Tagged ‘horizontal natural gas wells’

By Steve McConnell (Staff Writer)
Published: August 16, 2010

Although a natural gas drilling ban is in effect for much of Wayne County, one company is lining up permits for what may become the county’s first producing wells – in a small area just a hop across the Delaware River watershed boundary.

Hess Corp. has natural gas development permits either pending or recently approved for at least six hydraulically fractured Marcellus Shale wells along the county’s far northwestern border, according to state Department of Environmental Protection and Susquehanna River Basin Commission records.

Nearly all of the county lies within the Delaware River watershed, a vast 13,539-square-mile area that drains into the Delaware River. But this sliver in its far northern reaches is in the Susquehanna River watershed. There, the presiding Susquehanna River Basin Commission has granted hundreds of water-use permits to the burgeoning industry centered regionally in Susquehanna and Bradford counties.

Hess, which has leased at least 100,000 acres in northern Wayne County in a joint-development partnership with Newfield Exploration Co., had received regulatory approval from both the Susquehanna River Basin Commission and DEP for three Marcellus Shale wells in the Susquehanna watershed as of Saturday, according to a record review.

The permits were issued in late June and July. The pending and approved wells are concentrated in an area that encompasses Scott and Preston townships and Starrucca. The company will be “drilling and hydraulically stimulating one or more horizontal natural gas wells,” according to each permit application.

“An accounting of how (the companies) are going to use the water” is made before the commission decides to issue a permit, Susquehanna commission spokeswoman Susan Obleski said.

Efforts to reach officials with the New York City-based Hess Corp. were unsuccessful.

Drilling in Wayne County’s portion of the Delaware River watershed is a different story.

The Delaware River Basin Commission recently enacted a moratorium on the drilling of producing natural gas wells, which may be in effect for at least six months to a year. Meanwhile, Wayne County does not have a single producing well, nor has it seen any wells hydraulically fractured.

The only natural gas company that has attempted to hydraulically fracture a Marcellus Shale natural gas well in Wayne County, Lafayette, La.-based Stone Energy Corp., was issued a stop-work order in the summer of 2008 for its partially completed well in Clinton Twp. because it lacked a permit from the Delaware River Basin commission.

The Delaware River commission, a federal-state environmental regulatory agency charged with protecting the environmental integrity of the watershed, has stringent jurisdiction over the watershed and over natural gas drilling operations there.

It has placed a blanket moratorium on natural gas drilling until it develops its own industry regulations which are expected to exceed some DEP enforced laws.

“(Delaware) River Basin Commission consideration of natural gas production projects will occur after new … regulations are adopted,” said spokesman Clarke Rupert.

Mr. Rupert said draft regulations are expected to be published by the end of the summer. They will be followed by a series of public meetings and comment periods prior to final approval by commission vote.

“I expect those draft regulations will include provisions relating to the accounting of water movement since we would want to know the source of water to be used to support natural gas development and extraction activities in the basin,” Mr. Rupert said.

Meanwhile, the Delaware River commission is allowing 10 natural gas exploratory wells to go forward in Wayne County. They will not be hydraulically fractured, produce gas, or require much water. Hess Corp. and Newfield Exploration Co. received approvals for these wells from DEP prior to the June 14 moratorium.

Contact the writer: smcconnell@timesshamrock.com

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Copyright:  The Scranton Times