Posts Tagged ‘Kathryn Klaber’

Barnstorming Pa., MSC Continues to Educate, Engage “Friends of Marcellus”

The positive and overwhelming benefits associated with the responsible development of the Marcellus Shale’s abundant, homegrown, clean-burning natural gas know no county lines or state borders. Considered to be the world’s second largest natural gas field – second only to one in Iran – the Marcellus Shale’s potential to generate jobs, revenue and opportunity for all Pennsylvanians is real. And it’s a story worth taking on the road.

And so this week, that’s what the Marcellus Shale Coalition and its growing grassroots network did – traveling the length and width of the Commonwealth to continue to educate and engage the 12 million folks that proudly call Pennsylvania home. Along the way, we also took some time to  highlight the economic, supply-chain and job growth opportunities that continue to be created for the local workforce — efforts that will continue at an aggressive pace as the responsible exploration of clean-burning natural gas in Pennsylvania continues to expand.

Here’s a quick snapshot of the ground that the MSC has covered in just the past couple days, along with a run-down of where we’re headed next:

We Started in Philadelphia

The MSC joined the Pennsylvania Department of Community and Economic Development (DCED) to educate local businesses last week of the enormous opportunities that exist up and down the Marcellus Shale supply chain. MSC president Kathryn Klaber also met with elected leaders in Philadelphia to discuss the merits of natural gas-powered vehicles, and other benefits that the Mighty Marcellus will continue to deliver to the city’s residents.

Click here to view the embedded video.

• “There’s a lot of safeguards in place…that make sure Pennsylvanians have safe drinking water,” said Marcellus Shale Coalition president Kathryn Klaber. Klaber is also here to talk about the economic benefits of expanding drilling, mainly the estimated 200,000 jobs that would be created in Pennsylvania. (ABC6 TV, 8/13/10)

Then We Headed Back to Pittsburgh

At the Pittsburgh Business Times’ Energy Inc. conference yesterday afternoon, Gov. Tom Ridge – as reported by the Pittsburgh Post-Gazette – highlighted the benefits of responsible Marcellus development, as well as the safeguards in place and the commitment from the industry to protect the environment.

Click here to view the embedded video.

• Gov. Tom Ridge

o    “I think this is a potentially a transformational opportunity for our state. At the same time, we have to – we must – do it in a way consistent with our commitment to retain the beauty and the bounty, and the pristine condition of Pennsylvania.”

o    “I was on site today that 80 or 90 folks working that at the that site, and about 80 percent of them were local residents from Pennsylvania. Of course, the economic sustainability is real. They call it the ‘Marcellus Multiplier.’

o    “At the end of the day, facts are stubborn things. And we just have to get some facts out there so people can better understand what the industry can do – and will do – to build a sustainable economic model and be true to our commitment to the environment.”

And Now We’re Headed to State College – And Beyond

In an effort to further underscore the benefits responsible that Marcellus Shale development is generating for family farmers and Pennsylvania’s agriculture economy, the MSC will attend Penn State University’s Ag Progress Days today. And tomorrow, MSC president Kathryn Klaber will discuss ways that local business can join the growing Marcellus supply chain network with the Small Business Development Centers (SBDC) at Lock Haven University; she will also participate in a shale gas forum at Marywood University, alongside U.S. Sen. Bob Casey.

Interested in learning more, and joining our fight for a stronger economy and a cleaner and more secure energy future? Become a “Friend of Marcellus” today.

Clean-burning Marcellus Shale gas production continues to strengthen region’s economy, local workforce

The responsible and environmentally sound development of clean-burning natural gas from the Marcellus Shale continues to have a potent impact on our region’s economy and its workforce. This production is creating tens of thousands of good-paying jobs, a robust and growing supply chain network, tremendous amounts of economic opportunity, while at the same time helping delivering affordable supplies of homegrown energy to consumers throughout the Rust Belt.

“The potential is limitless,” says Gov. Ed Rendell, who underscores the fact that the “economic benefit of drilling in the Northern Alleghenies is welcome news in the midst of a sluggish economy and weak job market.”

Marcellus development is helping to buck otherwise bleak regional economic and job growth trends. This development has been – and continues to be – a boon for energy consumers, the environment, local businesses, and even for Pennsylvania’s state parks. In short, clean-burning Marcellus Shale gas is providing benefits to each and every one of the 12 million folks that call Pennsylvania home, in one way or another.

Call it a “Commitment to the Community.” Marcellus Shale Coalition (MSC) president Kathryn Klaber writes this under that headline in the Lock Haven Express yesterday, highlighting the steps shale gas producers are taking each day:

We are committed to working tirelessly each day to be good stewards of our land and waterways. We are also taking steps to ensure our operations minimize disruptions and risks in and near energy-producing communities. After all, our families live in these areas too.

While modern shale gas production involves intricate engineering technologies and techniques, our industry’s top priority is far less complex: Safely developing these clean-burning, job-creating resources in a way that benefits all Pennsylvanians – and protects the environment.

And while Marcellus development is still in the early stages, many of these benefits are already being realized. According to a recent study released by researchers at Penn State, our industry will help create nearly 212,000 jobs across the Commonwealth over the next decade. Last year alone, Marcellus development was responsible for the creation of 44,000 jobs.

And like our industry’s commitment to responsible development, we take very seriously our efforts to create job opportunities for locally trained and hired workers. As Marcellus production continues to expand, these opportunities will, too. Under the headline “Making good on a promise; Halliburton plant creates jobs,” the Williamsport Sun-Gazette highlights this promise in a story this week:

When ground was broken last August on a cement mixing plant owned by Halliburton off Route 405 in Clinton Township, company officials promised they would bring jobs to this area. The company is making good on that promise, said Perry A. Harris, senior district manager for Halliburton’s northeast U.S. operations. “By year’s end we’ll have 75 to 100 (employees) and (add) another 100 to 150 next year,” Harris said during a recent tour of the plant.

Harris said the company plans to develop another 55 acres nearby that will be home to other Halliburton gas field support operations. “Between the two sites, we’ll (be hiring) 400-plus people over the next two to three years,” Harris said.

And local training programs continue to offer and plan for coursework needed to equip the area’s workforce to join our fight for a cleaner and more secure energy future:

• Educators Tailor Courses For Marcellus Drilling Job Demand. “Local educators are creating additional courses commonly required in the Marcellus Shale drilling industry as the number of rigs is expanding across the Northern Alleghenies. Central Pennsylvania Institute of Science and Technology secondary education director Todd Taylor told WJAC-TV that there’s been a recent spike in adult students completing commercial driving license classes to drive vehicles used to haul equipment and liquid in and out of drilling sites. CPI officials plan to add an emerging energy course and expect to see of local job-seekers landing drilling rig jobs. (WJAC-TV, 8/9/10)
• Johnson hopes to build gas drilling workforce. “As development of natural gas from the state’s Marcellus Shale continues, the demand has now increased for skilled welders. Johnson hopes to meet that demand through an initiative by the Center for Sustainability at Johnson College, which is dedicated to offering industry-driven curriculum related to clean, green, and sustainable energy concepts. (Times-Leader, 8/10/10)
• Roustabout training offered. “Information on free training for workers seeking jobs as roustabouts in the natural gas drilling and production industry will be available from 11 a.m. to 12:30 p.m. and 4 to 5:30 p.m. Aug. 12 in Founder’s Hall, Westmoreland County Community College near Youngwood. (Pittsburg Tribune-Review, 8/5/10)
• SCCC may train gas-drilling work force. “Now count Sullivan County Community College among the institutions planning for a future that could include natural-gas drilling. Workforce Development Dean Stephen Mitchell is researching the kinds of jobs gas drilling would make available and what skills those jobs would require. The research could underpin a new job-training curriculum at the college. (Times Herald-Record, 8/3/10)

By Robert Swift (Harrisburg Bureau Chief)
Published: August 10, 2010

HARRISBURG – The natural gas industry is lobbying lawmakers to tax natural gas production at a lower rate during a well’s early years of production.

Proposals for a three-tiered well tax, requiring pooling together land parcels for drilling operations and making drilling a permitted use for local zoning are being advanced by the Marcellus Shale Coalition, an industry trade group. A copy of the coalition’s legislative agenda is circulating at the Capitol.

“Together, these policies will help ensure that Marcellus development remains competitive with other shale gas producing states and that critical capital investment will continue to flow into the region,” coalition president Kathryn Klaber said Monday.

Tax deadline Oct. 1

The coalition’s proposal surfaces with leaders of the House and Senate declaring their intent to pass a state severance tax by Oct. 1 and have it go into effect Jan. 1, 2011. The declaration is part of a state budget package enacted last month. Lawmakers return to session in mid-September with the Marcellus Shale and transportation funding issues competing for attention.

The newest details in the proposal focus on what production would be taxed at lower rates or exempt, an already contentious issue in Harrisburg.

Under the proposal, “high cost” Marcellus Shale wells that go to 5,000 feet or more below the surface to reach deep gas pockets would be taxed at 1.5 percent of market value of gas produced for the first five years, with a five percent tax rate kicking in after that.

So-called marginal Marcellus wells would be taxed at one percent of market value. These are described as wells not capable of producing more than 150,000 cubic feet of gas per day in a month. Wells not capable of producing more than 90,000 cubic feet of gas per day in a month would be exempt from taxes under the proposal.

Shallow gas wells would be exempt from taxes.

Market value would be defined as the amount generated through cash receipts less the cost of dehydrating, treating, compressing and delivering the gas.

As an example of high costs, the coalition cites a provision in state law that requires Marcellus producers to drill down into the Onondaga Layer which underlies the Marcellus Shale formation if the drilling takes place in a coal region. The added cost can amount to $200,000 per well, it states.

The Pennsylvania Budget and Policy Center issued a report recently criticizing tax breaks on new wells as depriving the state of tax revenue during a well’s greatest years of production.

“It would be a severance tax in name only,” said center executive director Sharon Ward.

The industry is seeking a two-sided exemption, with the reduced tax rate at the start and exemption for wells it considers low-producing, said Michael Wood, center research director. A 150,000-cubic-feet threshold is high, he said.

‘Use by right’

In addition, the coalition wants lawmakers to declare drilling a “use by right” in local zoning ordinances. That means drilling would be allowed, without the need for a major review by a local government, as long as it meets the standards specified in an ordinance. A local zoning permit would still be needed, but that would be issued relatively quickly.

This would provide for gas development in an orderly way while allowing municipalities to impose reasonable conditions on land used such as lot size and landscaping and safety features, the coalition said.

“We have problems with that,” said Elam Herr, an official with the Pennsylvania State Association of Township Supervisors. A township can’t exclude drilling under zoning laws, but local officials should be able to say where it takes place and keep it out of areas zoned for residential use, he said.

Other proposals call for providing incentives to convert state and local government and transit vehicles to natural gas fueling and giving priority to tax revenue distribution to host municipalities and counties.

Contact the writer: rswift@timesshamrock.com

View article here.

Copyright:  The Daily Review

Gov. Ridge: “The development of the Marcellus Shale will benefit all of the citizens of our state, our region, and our nation”

Canonsburg, Pa. – The Marcellus Shale Coalition (MSC), representing the majority of those responsible for the development and transportation of clean-burning shale gas throughout the Commonwealth, is pleased to formally announce that former Gov. Tom Ridge has joined the group as a strategic advisor.

“I am pleased to work with the members of the Marcellus Shale Coalition to ensure that this clean and abundant natural gas resource is developed for the full benefit of my home state of Pennsylvania and the nation. Joining the planning effort at this early stage will allow my voice to be added to efforts already underway to ensure worker safety and environmental protection, and to encourage the fullest economic benefit for our state, our communities, and the entire workforce involved in this transformational effort,” said Gov. Ridge.

“The responsible development of the Marcellus Shale represents a once-in-a-generation opportunity to strengthen our region’s economy and our nation’s security,” said Kathryn Klaber, president and executive director of the MSC. “We are honored to have Gov. Ridge working alongside our organization to help ensure that Pennsylvanians fully recognize our industry’s commitment to environmental and workforce safety, as well as the positive and overwhelming economic benefits that responsible shale gas development continues to generate across the region.”

“Pennsylvania, Penn Woods, is rich in natural resources and has led our nation in energy development. We have learned from the past that we must develop our resources safely and efficiently. During my term as Governor, we grew our economy by providing incentives for economic growth and always by ‘Growing Greener.’ The development of the Marcellus Shale will benefit all of the citizens of our state, our region, and our nation. Not only can the environmental and economic benefit be transformational for generations to come, our homeland security will be forever strengthened.,” added Gov. Ridge. “There is much work to be done to maximize the benefits of these abundant and domestic resources, and I’m looking forward to help lead this important effort.”

Before becoming Pennsylvania’s 43^rd governor, serving as the Commonwealth’s chief executive from 1995 to 2001, Gov. Ridge represented northwestern Pennsylvania in the U.S. House of Representatives for more than 10 years. Following the tragic events of September 11^th, 2001, Gov. Ridge became the first Assistant to the President for Homeland Security and, on January 24, 2003, became the first secretary of the U.S. Department of Homeland Security.

Canonsburg, Pa. – Tonight, Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber will deliver the following remarks at a public EPA forum on hydraulic fracturing. Excerpts and full text — as prepared for delivery — of her remarks are below:

• “Fracturing is considered a safe and essential part of the responsible development of natural gas, which studies have shown has the potential to create nearly 212,000 new jobs throughout Pennsylvania over the next decade.”
• “Our industry is working tirelessly to ensure that fracturing is done effectively, prudently and in a way that continues to create thousands of good-paying jobs and stable supplies of homegrown energy for U.S. consumers.”

My name is Kathryn Klaber, and I have the tremendous privilege of serving as the Marcellus Shale Coalition’s first president. And on behalf of the MSC – the organizational body that represents the vast majority of shale gas producers and midstream companies operating in the Commonwealth – I appreciate the opportunity to discuss the significant role hydraulic fracturing continues to play in the responsible development of clean-burning, job-creating natural gas.

As the MSC said at the outset of this study in March, our industry is confident that an objective, science-driven, and peer-reviewed evaluation of fracturing will reach the same conclusions produced by a host of other studies, including most notably one issued by your agency in 2004.

In that report — the product of an intensive, four-year course of study first initiated under the Clinton administration — EPA found “no evidence” suggesting the fracturing of shallow coalbed methane reserves posed a threat to underground drinking water supplies. Certainly you’re aware that coalbed methane strata reside thousands of feet closer to the water table than shale formations, and that the technology used today to access clean-burning natural gas from these formations is much more advanced and sophisticated than what was available in the past.

Here in Pennsylvania, fracturing has been in use for more than 50 years, and has been tightly regulated by the state almost before we had a name for it. Today, as you know, fracturing is considered a safe and essential part of the responsible development of natural gas, which studies have shown has the potential to create nearly 212,000 new jobs throughout Pennsylvania over the next decade.

Because of tight regulations and laws in place, coupled with the commitment from industry to protect the environment, there’s never been a single case of groundwater contamination associated with fracturing, as noted by PA DEP, top EPA officials, other state regulators, and the Groundwater Protection Council.

As EPA’s study moves forward, it’s critical to consider what the top officials responsible for regulating fracturing in the Commonwealth have said. Scott Perry, director of DEP’s bureau of oil and gas management – with whom my members work closely with – said this in May:

• “We’ve never seen an impact to fresh groundwater directly from fracking.”
• “No one’s ever documented drinking water wells that have actually been shown to be impacted by fracking.”

Pittsburgh Congressman Mike Doyle has said that state officials have “done a great job in regulating” Marcellus Shale exploration.

Unfortunately, while perceptions remain that our industry continues to resist regulations, the truth is quite the opposite. In fact, my member companies met earlier today with top DEP officials about well-casing standards; the second of such productive meetings in just months.

Our industry is working tirelessly to ensure that fracturing is done effectively, prudently and in a way that continues to create thousands of good-paying jobs and stable supplies of homegrown energy for U.S. consumers.

Once again, thank for the opportunity to speak here tonight about the critical role that hydraulic fracturing continues to play in realizing the Marcellus’s promise.

NOTE: Click HERE to view these remarks on-line.

Agency convenes hearing in Canonsburg tomorrow to discuss scope of upcoming hydraulic fracturing study. But has EPA forgotten about its 2004 report?

Tomorrow night in Canonsburg, the EPA will convene its third public hearing on its upcoming study on hydraulic fracturing, a key technology that’s been used to produce energy in Pennsylvania for more than a half-century, but one that’s become especially important lately as efforts to convert the enormous potential of the Marcellus into jobs and revenues for Pennsylvanians move forward across the Commonwealth.

But for those keeping tally at home, this new study by EPA isn’t the first time the agency has looked into the safety and performance of fracturing technology. In a report released by EPA in June 2004, federal officials found the fracturing of coalbed methane formations “poses little or no threat” to underground sources of drinking water – despite that fact that coal seams generally reside close to formations carrying drinking water underground. In remarks set to be delivered at tomorrow’s hearing, MSC president and executive director Kathryn Klaber lays out some additional details (and context) associated with this landmark study:

In that report — the product of an intensive, four-year course of study first initiated under the Clinton administration — EPA found “no evidence” suggesting the fracturing of shallow coalbed methane reserves posed a threat to underground drinking water supplies. Certainly you’re aware that coalbed methane strata residethousands of feet closer to the water table than shale formations, and that the technology used today to access clean-burning natural gas from these formations is much more advanced and sophisticated than what was available in the past.

For their part, natural gas critics contend that EPA’s 2004 study on fracturing’s application to coalbed methane reserves somehow isn’t relevant to the current conversation about the Marcellus Shale. Come again? If the fracturing of shallow coalbeds near the water table was found to be safe by EPA, how is it that the fracturing of deep shale formations is any less so? After all, we’re talking about shale strata that reside thousands and thousands of feet below both the water table and the coal beds themselves.

Thursday’s forum in Canonsburg is expected to address some of these questions, and more generally lay out the direction that EPA will take in engaging in its second study on hydraulic fracturing in 70 months. And you know what? It’s an effort we support in full. With fracturing, we’re talking about a technology that’s been deployed more than 1.1 million times in the 60-plus years in which it’s been in commercial use. And in all that time, not a single government regulator – including the EPA – has made a single claim suggesting it’s a threat to groundwater. Assuming this new study is science-based and peer-reviewed, there’s no reason to believe its findings will diverge from what the agency has consistently found in the past.

So what will the latest installment of EPA’s hydraulic fracturing study series look like when it hits the shelves sometime in the next two or three years? Tough to say for sure, but if it ends up drawing on the testimony of regulators in the states, experts in the field, and everyday Americans whose lives are being made better and more prosperous thanks to the once-in-a-lifetime opportunity of shale gas in America – it should be quite a page-turner indeed.

In the meantime, folks interested in coming out to tell EPA what they think of responsible shale gas development in Pennsylvania have a few outstanding tasks to complete before they arrive tomorrow night. First order of business: Register for the meeting, which is easily accomplished by navigating to this page. Second: Make sure to stock up on all the facts. MSC fact sheets have been developed on a range of topics likely to be addressed in some form – from the full disclosure of materials involved in the fracturing process, to the many ways in which natural gas can be used as a workhorse in PA to deliver a clean, secure and affordable energy future. The full arsenal can be accessed here.

So that should just about do it. Pre-registration for the event starts at 5:00 p.m. sharp, and the address for the Hilton Garden Inn is 1000 Corporate Drive in Canonsburg. Hope to see you out there.

Copyright: Marcelluscoalition.org

Canonsburg, Pa. – Earlier today, the Pittsburgh City Council passed a resolution calling for a statewide ban on clean-burning natural gas from the Marcellus Shale for an entire year, including the development of those resources on privately-owned land. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement in response to Council’s resolution, which carries no legal authority:

“Today’s action by the Pittsburgh City Council is unfortunate, unnecessary, and frankly, ill-advised. Most troubling, it comes at a time when the responsible development of clean-burning natural gas from the Marcellus is creating tens of thousands of jobs for residents all across the Commonwealth, breathing new life into our economy at a time and place when it’s perhaps never been needed more.

“Unfortunately, Council appears to have bought wholesale into the argument that Marcellus exploration represents a threat to our water and surrounding environment, notwithstanding a mountain of evidence from EPA, DEP and a just about every environmental regulator across the country that says precisely the opposite. Council has instead decided to take a position that’s unsupported by science, an affront to the rights of landowners, and very much at odds with a budget picture that could be significantly improved under a scenario of safe development and enormous revenue generation within the boundaries of the Council’s jurisdiction.

“Producing more energy here at home creates good-paying jobs, and helps drive down our nation’s dependence on unstable and unfriendly regions of world for the energy we need to fuel our economy. Pennsylvanians overwhelmingly understand this. Job-creators and small business owners understand this, too. It’s unfortunate that Pittsburgh City Council does not.”

Copyright: Marcelluscoalition.org

Callahan brings more than a decade of energy experience to the job, lauded by MSC chairman and president as a “key collaborator” in engaging elected officials and partners

CANONSBURG, Pa. – As Marcellus Shale employers continue to work with policymakers on a comprehensive framework for taking full advantage of the myriad opportunities that natural gas exploration make possible, the Marcellus Shale Coalition (MSC) today announced the addition of a key member to its staff who will be among those serving on the frontlines of that critical and ongoing effort.

Starting this week, David Callahan will serve as MSC’s vice president, a position dually based in Harrisburg and Canonsburg, Pa., but one that will take Mr. Callahan all across the multistate Marcellus region. A native Pennsylvanian, Mr. Callahan has 20 years of experience in the field of government relations, a majority spent representing a number of energy interests, including the Pennsylvania Gas Association (now the Energy Association of Pennsylvania) and the Associated Petroleum Industries of Pennsylvania.

“The safe and steady development of natural gas from the Marcellus Shale represents a once-in-a-lifetime opportunity for shared prosperity across the entire Marcellus,” said Kathryn Klaber, president and executive director of the MSC. “But that vision of the future that will only be realized through engagement and cooperation with policymakers and elected leaders in the region. David’s experience working collaboratively with legislators and regulators alike will serve our members well, and ultimately benefit everyone by advancing a strategy that generates jobs and revenues in the short-term, and the promise of long-term energy security and affordability beyond that.”

“The industry continues to create tens of thousands of jobs each and every year all across the multistate Marcellus region, our membership has continued to expand as well – and so has our strength and expertise,” said Ray Walker, Jr., chairman of the MSC and a senior vice-president for Range Resources. “The addition of David to the growing MSC staff represents a key step forward for this Coalition, and an important resource in our campaign to educate the public about the historic opportunities of the Marcellus, while educating policymakers on the imperative of keeping the Marcellus ahead of the competition curve in the ongoing and aggressive race for talent, equipment and investment.”

Mr. Callahan, currently a resident of Mechanicsburg, Pa., earned his undergraduate degree from Indiana University of Pennsylvania, and his master’s from Syracuse University’s Maxwell School of Citizenship and Public Affairs.

Copyright: Marcelluscoalition.org

Landowners, communities challenge Delaware River Basin Commission to explain rationale, authority behind denying opportunity of the Marcellus to Northeast PA

Translated literally from French it means “superior force,” but translated practically into American law, the term force majeure is a clause used by parties that encounter a situation so severe that it’s actually designated as an “Act of God” by the courts. Floods, famines, earthquakes, volcanoes – these are the kinds of events that trigger the rare invocation of the clause, allowing all parties involved in a contract to shield themselves of obligation in light of the extraordinary and unforeseen events that transpired after it was signed.

Actually, there’s one other event that has historically fallen under the rubric of force majeure: acts of war. Unfortunately, in the case of the West Trenton, N.J.-based Delaware River Basin Commission (DRBC), that’s precisely the action that was taken against landowners in eastern Pennsylvania last month, with the Commission instituting a de-facto, back-door moratorium on all activities within its sprawling jurisdiction even tangentially related to the development of clean-burning natural gas from the Marcellus Shale.

The upshot? This description comes from the June 30 edition of the Philadelphia Inquirer:

Of course, with potentially thousands of jobs at stake in the area – and millions of dollars in much-needed payments to landowners and state and local governments – folks who actually live and work in the Northeast PA counties affected by the DRBC promulgation aren’t exactly taking the decision lying down.

Case in point: Later today, the DRBC will hold a regularly scheduled hearing on a whole slate of issues related to regional water use and management, including a draft water withdrawal request from an energy operator in the area. Among the folks expected to attend? A busload of landowners from the Northern Wayne Property Owners Association (NWPOA), and from the information we’ve been able to glean from its website, the group is expecting a significant showing among residents in the area concerned by the implications of DRBC’s historic overreach on natural gas. To wit:

Back in June, the Marcellus Shale Coalition released an issue alert on the DRBC moratorium decision, wondering aloud if the modern-day DRBC would have let George Washington cross the Delaware without first initiating a years-long review procedure aimed at stalling the process and ultimately executing a pocket-veto of the entire enterprise. Needless to say, the denial of energy and mineral rights to landowners across the border in Pennsylvania wasn’t exactly what the creators of DRBC had in mind 50 years ago when the commission was created.

Earlier this week, the MSC expanded on its previously stated objections to the DRBC moratorium in a letter sent to Commission director Carol Collier. You see, in extending its initial ban to include a moratorium on doing even the most basic things to test the future viability of natural gas wells in the affected counties, the Commission cited “the risk to water resources” as the reason for pulling the plug on exploratory work in the area. But as MSC president and executive director Kathryn Klaber makes plain in her letter to DRBC this week, no water would be put at risk under such an approach – and very little of it will need to be withdrawn from surface areas under DRBC jurisdiction:

Of course, if DRBC’s review and approval of permits in this context is considered appropriate, then “it likewise would be appropriate for the development of a multitude of projects over which the Commission, appropriately, has not sought to assert jurisdiction, such as malls, hotels, restaurants, and residential subdivisions,” according to the letter from MSC.

So why is natural gas so different? That question, unfortunately, is not one that DRBC has answered with any degree of specificity just yet –content instead to simply assert its primacy over the matter and issue sweeping, multi-state declarations with significant implications for the clean-energy future of Pennsylvania and the economic security of those who live here. Hopefully, with the help of groups like NWPOA, the Commission will soon find itself in a position to better understand that the actions it makes from West Trenton, N.J. have real-world consequences for residents in the Commonwealth.

Copyright: Marcelluscoalition.org

Gas drilling incident in western Pennsylvania linked to firm’s corner-cutting tactics.

From staff and wire reports

HARRISBURG – Rig workers’ inexcusable failure to use a second set of pressure-control devices while preparing to connect a natural gas well to a pipeline led to the well’s blowout in western Pennsylvania last month, a consultant’s report said Tuesday.

State regulators, who hired the consultant, quickly ordered all drilling operators to adhere to a set of safety standards designed to prevent another such incident.

“I don’t know any company that would cut corners like this on this kind of well,” said consultant John Vittitow, a Texas-based petroleum engineer.

The company, Houston-based EOG Resources Inc., has used this same tactic on other wells in Pennsylvania, Vittitow said.

“I don’t think they’ll use it again,” he added.

Meanwhile, state Environmental Protection Secretary John Hanger warned that another such incident could mean the end of EOG’s business in Pennsylvania, and insisted state regulations don’t allow EOG’s tactics.

EOG and its contractor, C.C. Forbes Co. of Texas, were given maximum fines of more than $400,000 combined and ordered to take corrective actions, but were allowed to resume all activities in Pennsylvania on Tuesday after a 40-day suspension of well-finishing work.

EOG operates nearly 300 wells in Pennsylvania.

The blowout happened late June 3 on the grounds of a hunting club in Clearfield County where EOG is drilling a number of wells.

For 16 hours, explosive gas and briny wastewater shot into the air before specialists brought it under control.

Hanger insisted Tuesday that existing regulations do not allow EOG’s tactics because they require companies to obey accepted industry safety standards.

Most companies obey those, he said, but a letter sent Tuesday would lay out in detail what is expected of them.

Gary L. Smith, EOG’s vice president and general manager in Pittsburgh stated in an e-mailed that company officials “sincerely regret that the well-control issue took place.”

Since that time, Smith said, EOG has worked with the DEP to resolve all issues, will implement the new operational procedures outlined in the letter to gas well operators and looks forward to resuming activities.

Marcellus Shale Coalition president and executive director Kathryn Klaber said the new regulations DEP put forth “have already been incorporated by many of our members as part of their regular wellsite operations.”

State Rep. Phyllis Mundy, who is leading the charge for a moratorium on gas drilling in the state, said the $400,000 in fines and 40-day suspension “seems like a pittance … for what was clearly an inexcusable lack of proper procedure to care for the environment and their workers.”

Mundy, D-Kingston, said the incident “reinforces the need to hit the pause button with a moratorium. With this kind of activity, there will always be accidents.

“But with proper laws, regulations, best practice guidelines and inspections in place, we could prevent many of them and be much better prepared to deal with them when they do occur. Those things are not in place at this time, yet we continue to issue new permits. We are simply not prepared to either prevent or react to these incidents.”

Hanger said his agency would redouble its inspection activity with more emphasis on well-finishing work.

Copyright: Times Leader