Posts Tagged ‘Lehman Township’

PA American Water Co. to sample water from Huntsville Creek near natural gas well.

By Jerry Lynottjlynott@timesleader.com
Business Writer

A water company has begun inspecting a creek flowing from the Huntsville Reservoir as a result of a permit issued for a natural gas well in Lehman Township.

PA American Water Co. also will soon begin sampling water from Huntsville Creek, company spokesman Terry Maenza said Thursday.

The testing is to check whether drilling has affected the 1.9-billion- gallon reservoir that supplies drinking water to the utility’s customers. The reservoir is in the Back Mountain area of Luzerne County where more than 25,000 acres have been leased by companies planning to tap into the natural gas rich Marcellus Shale formation underground.

Technicians will go out once a week to take water samples, said Maenza, “so we have baseline data.”

Last month township officials approved a drilling permit for EnCana Gas & Oil USA Inc. It has partnered with Whitmar Exploration Co. to locate possible drilling sites within nine townships and Harveys Lake in the Back Mountain.

PA American has two reservoirs bordered by lease holdings. The 2.9 billion gallon Ceasetown Reservoir also is located in Lehman Township. In conjunction with Huntsville, Ceasetown supplies water to 100,000 people in the Wyoming Valley, Maenza said.

The reservoirs have 500-foot buffer zones around them where drilling is not permitted, he explained.

Maenza added that the water company relies on regulators and inspectors to enforce laws related to drilling and disposal and treatment of waste water used in the hydraulic fracturing or fracking, the high pressure injection of a mixture of water, chemicals and other materials to break up the rock containing the natural gas.

The utility frequently is in contact with the state Department of Environmental Protection on a number of issues, including permits issued for drilling. “They’re letting us know about it,” Maenza said.

Two other water companies that serve customers in the Back Mountain are leaving oversight up to DEP, the Susquehanna River Basin Commission and the state Fish and Boat Commission.

Donna Alston, a spokeswoman for Aqua Pennsylvania, said existing DEP regulations provide protection for the company that draws its water from wells. The company provides service to customers in Luzerne County through its White Haven Division. Statewide it serves 1.4 million people in 30 counties.

Still, Aqua is stepping up its own efforts.

The utility “will be monitoring water quality more frequently and extensively than required by regulation whenever drilling activity is occurring anywhere near one of its well supplies to detect and respond to any water quality changes that might occur,” Alston said.

What steps United Water takes depends upon how close a natural gas well is drilled to one of its water wells, said spokesman Bob Manbeck.

“If a permit for extraction was under consideration within a one mile radius of a United Water-owned well, we would intervene in the permitting process and attempt to ensure that the extraction points are an appropriate distance from our wells,” said Manbeck.

United Water has six wells in Dallas, two each in Dallas Township and Harveys Lake and one in Noxen Township in Wyoming County. It serves 10,000 customers in the Back Mountain.

Copyright: Times Leader

Partnership of two energy companies lines up area covering over 25,000 acres in the Back Mountain for gas exploration.

By Jerry Lynottjlynott@timesleader.com
Business Writer

Just a few sites have been approved for natural gas drilling in Luzerne County, but a partnership of two energy companies has signed leases for more than 25,000 acres, primarily in the Back Mountain, to explore the Marcellus Shale formation that runs underneath.

Since September, Whitmar Exploration Co., of Denver, Colo., has been signing leases with property owners in nine townships and Harveys Lake borough. The company has been working with EnCana Oil & Gas USA Inc. in a joint venture to develop the properties. EnCana holds a 75 percent interest in the leases and is responsible for drilling.

Whitmar wanted to partner with an experienced operator, said Wendy Wiedenbeck, a public and community relations adviser for EnCana.

“This is what we do,” said Wiedenbeck. “We have a team working on this project that possesses deep experience gained from working on similar projects across North America.”

EnCana received approval Tuesday from the Luzerne County Zoning Hearing Board to sink a well in Lake Township and set up a natural gas metering station in Fairmount Township. In April, Lehman Township officials approved drilling for another well.

Wiedenbeck on Wednesday confirmed a map provided to The Times Leader was one EnCana prepared for the Back Mountain Community Partnership to show the extent of the leaseholds.

She cautioned that “the map is quite dated,” having been created in February. Whitmar has signed additional leases into April, according to a search of the county property database.

Wiedenbeck said EnCana’s presence will grow in the region. “As we move forward, EnCana is acquiring new leases.”

When pieced together, the leases cover large swatches of land in the largely rural northern and western sections of the county. The leaseholds range in size from under 1 acre to over 100 acres.

Fairmount Township had the most coverage with approximately 7,500 acres leased, according to the map. Lehman and Ross townships each had nearly 4,300 acres leased; Lake Township, close to 2,600 acres; Jackson Township, 2,400 acres; Huntington Township, 1,400 acres; Dallas Township, 1,300 acres; Hunlock Township, 700 acres; Union Township, 400 acres; Plymouth Township, 200 acres; and Harveys Lake, 50 acres.

The region has also attracted the attention of another major player in the natural gas industry.

Chesapeake Energy Corp. has signed 93 leases since August 2007. More than two-thirds of them were filed this year, according to county property records.

Copyright: Times Leader

Parcels in Lake, Fairmount townships require county zoning approval.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

An energy company is seeking zoning approval to temporarily locate five personnel trailers and up to 192 water storage tanks capable of holding more than 4 million gallons on a 6-acre site in Lake Township.

IF YOU GO

The Luzerne County Zoning Hearing Board will hear testimony on applications from EnCana Oil & Gas for special land uses in Lake and Fairmount townships at 7 p.m. Tuesday, in the Commissioners Meeting Room at the Luzerne County Courthouse in Wilkes-Barre.

EnCana Oil & Gas USA Inc. also wants to temporarily place a sewage holding tank and a potable water tank for each trailer at the site, all to be used during the drilling of a well to extract natural gas from the Marcellus Shale formation thousands of feet below the Earth’s surface.

The Luzerne County Zoning Hearing Board on Tuesday will hear a presentation from EnCana in connection with the company’s application for a “temporary use” and a special exception to construct a permanent gas well head facility on the 49-acre property located at 133 Soltis Road and owned by township Supervisor Amy Salansky and her husband, Paul.

EnCana also is seeking a use variance to operate a natural gas meter station on 5 acres within a 112-acre parcel in Fairmount Township, as well as a height variance to erect an associated 150-foot radio tower on the site.

The meter station site, located at the intersection of Mossville and Hartman roads on property owned by Thomas and Caroline Raskiewicz, would be used to treat and compress natural gas from another well drilling site in Fairmount Township for which EnCana has already received county zoning approval. That drilling site, located off state Route 118 between Tripp and Mossville roads, is owned by Edward Buda.

The Salansky site in Lake Township is the third in the county on which EnCana plans to begin drilling for gas this summer. Earlier this month, the company received approval from Lehman Township supervisors to drill near Peaceful Valley Road on property owned by Russell and Larry Lansberry.

The Salansky and Buda sites required county zoning board approval because neither Lake Township nor Fairmount Township has zoning regulations.

Wendy Wiedenbeck, public and community relations advisor for EnCana, said the Buda site will be the first to be drilled. The target date for drilling to begin, known in the industry as the spud date, is July 1. Crews were to begin clearing an access road on Thursday.

Wiedenbeck said the spud date for the Salansky site is expected to be about a month after drilling begins at the Buda site. It takes about a month to drill a well, and the drilling equipment will be moved from one site to the next.

Plans for the Lansberry site are still under discussion, she said.

21,000-gallon tanks

According to a narrative that EnCana included in the zoning application for the Salansky site, the company will need about 6 million gallons of water for each well completion. Completing a well requires hydraulic fracturing (fracking), which is the process of injecting a mixture of water, sand and a small amount of chemical fluid additives into the wellbore under very high pressure to fracture the shale formation and release the natural gas.

EnCana estimates about 1.2 million gallons of flowback water will return to the surface.

Fresh water for the well completions will be stored in some of the 21,000-gallon “frac water” tanks, which are about 8 feet wide, 50 feet long and 13 feet tall. Some of the steel tanks also could be used to collect flowback water, which either will be treated and reused during a future well completion or hauled away and disposed of at a permitted wastewater facility.

EnCana plans to drill one well at each site using a truck-mounted drill rig. It would be drilled vertically about 7,000 to 8,000 feet deep and then horizontally about 5,000 to 7,000 feet.

During drilling operations, sites would have a drill rig, stockpiles of drill pipe and casing, a 60-by-160-foot reserve pit with an impermeable liner for collecting cuttings and fluid, mud shakers to separate the cuttings from the fluid, generators to provide power to the drill rig and office trailers that would be equipped with personnel sleeping quarters.

Drilling activities would occur around the clock for about four weeks and require on-site supervision 24 hours a day.

Main access roads to the Salansky site include Lehman Outlet, Hoover, Sholtis, Zosh, Ides, Meeker and Slocum roads and state Route 118. EnCana will work with supervisors of Lake and Lehman townships to complete a road assessment and provide appropriate bonding for the roads.

Meter site structures

Major structures at the Raskiewicz meter site in Fairmount Township, in addition to the radio tower, include two 40-by-40-foot buildings, about 20 feet tall, that would house compressor engines, and a 15-by-35-foot meter building about 12 feet high.

Also planned is a smaller air purification building.

Two 20-foot-tall storage tanks for condensate – liquids that fall out of the gas and settle at low points in the pipeline – also will be placed there, along with various other types of storage tanks, most about 10 feet tall. There also will be a dehydration unit, mainly composed of a vertical tank about 34 feet tall.

The facility will require a 1/2 acre where a 6-inch EnCana gas line will feed into the 24-inch transcontinental pipeline that already passes through the site underground, and another 1.5 acres for placement of EnCana treating and compression equipment. The additional 3 acres is for future expansion.

Main access roads to the site are state Route 118, Mossville Road and Hartman Road.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Some residents oppose, but solicitor says only state can halt drilling operations in municipalities.

RALPH NARDONE Times Leader Correspondent

LEHMAN TWP. – Township residents will be getting a new neighbor when EnCana Oil and Gas USA begins drilling for natural gas in late summer.

Township officials voted unanimously Tuesday night to approve an ordinance allowing the company to start Marcellus Shale gas drilling operations near Peaceful Valley Road.

Board of Supervisors Vice Chairman Ray Iwanowski made the motion to enact the ordinance and Chairman David Sutton and Supervisor Douglas Ide voted yes.

Township Zoning Board Solicitor Jack Haley addressed a well-mannered crowd of about 70 people before the vote, essentially telling them the township was in no position to halt the company’s plans.

Some residents who expressed opposition wanted the supervisors to “send a message” by not enacting the ordinance, Haley said. That would have amounted to “civil disobedience,” he said.

According to Haley, all authority to halt drilling operations in any municipality in Pennsylvania lies in the hands of state agencies, not local governments. The township’s rules are “superseded” by the state Oil and Gas Act, he said.

The state Supreme Court already reviewed two similar cases, he added, and decided the only authority Lehman Township has applies to what roads EnCana can use.

Haley also addressed concerns raised that two of the supervisors, Ide and Sutton, have personal ties to gas drilling. Ide leased some of his own land for gas drilling, and Sutton consults property owners concerning drilling, Haley said.

Both members could only second the motion or vote yes but could not participate in any questions about the vote or make the original motion. The only supervisor who could make the motion was Iwanowski.

The state Ethics Commission checked into the potential conflict of interest involving the two supervisors.

Iwanowski outlined six conditions to the motion: that EnCana put up $13,540 to maintain Firehouse Road through the total time it is used; EnCana put up $32,192 to maintain Peaceful Valley Road similarly; all traffic related to the drilling traverse on Firehouse Road toward state Route 118; no traffic will go on Old Route 115 in the township (near the school); EnCana provide adequate insurance coverage for the township, and that a legally binding agreement be signed by EnCana holding it to its commitment.

No representatives from EnCana attended the meeting.

About 25 peaceful protesters were there greeting meeting attendees at the door with anti-drilling literature. Leanne Mazurick, 30, of Dallas Township, stressed the industry is essentially “unregulated.” She said residents in other communities of Northeastern Pennsylvania are having trouble with water contamination where there is drilling.

“We want safeguards put in place,” she said.

Karen Belli, of Dallas Township, and member of Gas Drilling Awareness Coalition, emphasized a long list of ills that arise from local gas drilling. She pointed to homeowners in one local community have to use “water buffaloes” for their water supply because of the contamination.

Belli also questioned how Supervisors Ide and Sutton could be involved in the vote knowing their connections to the industry.

Not all in attendance were opposed. Barry Edwards, of Lehman Township, said the concerns about water are just a “harangue.” He added that in Susquehanna County the drilling companies have made the roads “better than the ever.”

Iwanowski said fixed-income elderly residents and farmers facing large debt are finding the gas drilling a financial “godsend.”

He said the ordinance allows EnCana to drill only vertically. If it wishes to expand horizontally underground that will require another vote from the township.

Copyright: Times Leader

Elected official who held hearing in area last week on natural gas drilling says he was responding to pro-energy group attack.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

A state representative says he was unfairly attacked in a press release by a pro-energy group after holding a public hearing in the Back Mountain last week.

State Rep. Camille “Bud” George, majority chair of the House Environmental Resources and Energy Committee, issued a rebuttal Friday, saying that “money and misinformation are the hallmarks of a gas industry attack titled, ‘Rep. George’s Fact-Free Fact-Finding Mission.’”

Energy In Depth sent the press release to media outlets on Thursday, a day after George convened a committee hearing at 1 p.m. in the Lehman Township Municipal Building to hear testimony on the impact of Marcellus Shale drilling and proposed legislation that would put more environmental safeguards in place.

State Rep. Phyllis Mundy, D-Kingston, invited George to have a hearing in her district, where EnCana Gas & Oil USA plans to drill the first natural gas exploratory well in Luzerne County in May or June. The well will be drilled in Lehman Township.

Area residents and lawmakers are concerned for many reasons, including the fact that the drill site would be less than two miles from the Huntsville and Ceaseville reservoirs, which supply drinking water to nearly 100,000 area residents.

Energy In Depth’s press release classified the hearing as a “pep rally staged by anti-energy activists and like-minded public officials in Northeast Pennsylvania.”

“Characterized as a ‘field hearing’ by … George, who held the event as far away as he could from his home in Clearfield County, the forum included representatives from the Sierra Club and Clean Water Action league, as well as testimony from a local podiatrist and someone describing himself as a ‘naturalopathic’ physician. The only thing missing? Anyone in possession of real, genuine facts related to responsible gas exploration in the Commonwealth,” the release stated.

In response, George said the most troubling aspect of “the attack by Energy In Depth, whose members include the Pennsylvania Independent Oil and Gas Association, is its slur of concerned lawmakers and citizens of Northeastern Pennsylvania as anti-energy activists.”

George noted that the committee had a hearing on Feb. 18 in Clearfield County, where the president of the Marcellus Shale Coalition and executives from some of the leading gas companies in Pennsylvania, including Range Resources and Chesapeake Energy, testified. He also participated two weeks ago in a House Democratic Policy Committee hearing in Ebensburg that included testimony from Chief Oil & Gas and Chesapeake. Ebensburg is in the Altoona area.

“The industry has not been an unwanted stranger at hearings,” George said.

Energy In Depth’s press release then listed quotes – pulled from a story in The Times Leader – of people who testified and rebutted them with quotes from gas industry representatives, a state Department of Environmental Protection fact sheet and Gov. Ed Rendell.

Energy In Depth pointed to testimony from Mundy in which she said she supports House Bill 2213 “which would among other things … require full disclosure of the chemicals used in hydraulic fracturing.”

The organization then pointed to a DEP fact sheet which states that drilling companies “must disclose the names of all chemicals to be used and stored at a drilling site … that must be submitted to DEP as part of the permit application process. These plans contain copies of material safety data sheets for all chemicals … This information is on file with DEP and available to landowners, local governments and emergency responders.”

But George said that “full disclosure of the chemicals – not just the trade names – and how they are used is not (now) required.”

“The precise chemical identities and concentrations and how and when they are employed can be crucial to emergency responders and remediation efforts after spills, and is at the crux of efforts to remove the infamous ‘Halliburton Loophole’ that exempts the industry from oversight by the Environmental Protection Agency,” George said.

“The gas industry can bloat campaign coffers with money, buy discredited and ridiculed studies and poison the debate by taking statements out of context. However, its ‘best management practices’ should never be taken at face value to be the best for Pennsylvania,” George said.

Steve Mocarsky, a Times leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

As energy companies and lease holders extol the benefits and safety of natural gas drilling in the state, and environmentalists and people who live near drilling operations point to chemical spills, water pollution and noise, a congressman last week called for an effort from opposing sides in the energy debate to work together for compromise.

U.S. Rep. Joe Sestak, D-Delaware County, who is running for the U.S. Senate, came to The Peace and Justice Center in Wilkes-Barre on Wednesday to host a forum on Marcellus Shale development.

Panelists included James Shallenberger, a Pennsylvania-licensed geologist and senior project manager at consulting firm Princeton Hydro who spoke on behalf of the gas drilling industry; David T. Messersmith, an extension educator with Penn State Cooperative Extension in Wayne County who is an expert on Marcellus Shale; and Dr. Thomas Jiunta, a Lehman Township resident with a podiatry practice in Kingston who founded Luzerne County Citizens for Clean Water.

“There was a lot of passion in that room. … One side is saying one thing, one side is saying another. I want to be a person who brings people together for a principal compromise, not a compromise of principles,” Sestak said last week in a phone interview.

“I personally believe this is a great economic opportunity for our state, particularly if we are able to benefit by a proper excise tax and if we put the proper protections in place,” Sestak said.

Sestak also said a priority should be enabling community and area colleges to train people for gas industry jobs to ensure Pennsylvanians are getting jobs associated with the drilling industry, rather than leaving energy companies with no choice but to hire experienced people from out-of-state.

Sestak said he learned much about the economic benefits as well as the environmental problems associated with natural gas exploration when he visited several counties in which Marcellus Shale drilling has been ongoing while he was on the campaign trail.

He noted that former Sen. Rick Santorum and Sen. Arlen Specter voted for “the Halliburton Loophole,” which exempts the gas and oil industry from complying with the Safe Water Drinking Act. And he said he supports the “FRAC Act” – Fracturing Responsibility and Awareness of Chemicals Act, which would amend the Safe Drinking Water Act to include the gas and oil industry.

Steve Mocarsky, a Times leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

House committee members hear testimony on impact of gas drilling, proposed environmental safeguards.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Members of the state House of Representatives Environmental Resources and Energy Committee came to the Back Mountain on Wednesday to hear testimony on the impact of Marcellus Shale drilling and proposed legislation that would put additional environmental safeguards in place.

Testifying were representatives of two environmental groups, a local physician active in environmental issues and a resident of Dimock Township, Susquehanna County, where the state Department of Environmental Protection ordered a gas company to provide drinking water to residents after their wells were contaminated by methane.

State Rep. Camille “Bud” George, committee majority chairman, said the committee convened at the township municipal building at the invitation of state Rep. Phyllis Mundy, D-Kingston.

Mundy said she requested the hearing because she and many of her constituents “have serious concerns about the potential impact of Marcellus Shale drilling on our streams, our land and especially our drinking water,” noting that a proposed well site is less than two miles from the Huntsville and Ceasetown reservoirs.

Noting the contamination of drinking water in Dimock Township and a recent drilling-related mud spill in Clinton County, Mundy said there was “still time to put safeguards in place to protect the environment and the public health from the negative impacts” of gas drilling.

“That is why I strongly support Chairman George’s House Bill 2213, the Land and Water Protection Act, which would, among other things, require state inspections of well sites during each drilling phase and require full disclosure of the chemicals used in hydraulic fracturing,” she said.

The act would also:

• Extend from 1,000 feet to 2,500 feet the presumed liability of a gas well polluting a water supply.

• Update bonding requirements to cover the costs of decommissioning a well from a $2,500 bond to a $150,000 bond for a Marcellus Shale well and to a $12,000 bond for all other wells.

• Reaffirm that local government may regulate aspects of drilling within traditional powers, such as hours of operation.

Jeff Schmidt, Sierra Club state chapter director, said the club supports the bill and suggested adding some provisions:

• Require a drilling permit applicant to publish in a local newspaper and in the Pennsylvania Bulletin that a permit application was submitted to DEP.

• Require that erosion and sediment control and storm water discharge plans for drill sites be as stringent as requirements for all other earth disturbance activities, and require DEP to offer county conservation districts the opportunity to review those plans and fund the work.

Brady Russell, Eastern Pennsylvania director for Clean Water Action, said the gas industry will “cut corners” if not properly supervised. He made several recommendations, including requiring an inspector – or eco-cop – on each drill site to make sure drillers follow approved plans.

He also suggested requiring drillers to pay for pre- and post-drilling testing of nearby water sources.

Dr. Thomas Jiunta, a podiatrist from Lehman Township, where issuance of a drilling permit is expected to be approved next week, said that since he has been researching Marcellus Shale exploration, he has “gotten a lot of lip service from senators and representatives about how we need to do it right. Before I start, I just want to say that maybe, maybe – and this is the first time I’ve said this word – we need a moratorium to stop it until we get it right.”

Audience members burst into applause and cheers at Jiunta’s suggestion.

After sharing his concerns about an inadequate number of treatment plants capable of removing hazardous chemicals from water used in hydraulic fracturing and risks associated with storing those chemicals underground, Jiunta made several suggestions for the bill.

One is adding a requirement that recovered waste water from the fracturing process be stored in sealed tanks rather than in surface pits that have liners that he said could tear and overflow with heavy rain.

Dimock Township resident Victoria Switzer testified first that a gas company “landman” talked her and her “misinformed, uninformed and na�ve” family into leasing their land for $25 an acre and a 12.5-percent royalty minus transportation cost.

“We now sit in the middle of 63 natural gas wells. In spite of what has gone terribly wrong here, the 2010 plan calls for a doubling of their efforts,” Switzer said.

She said gas drilling has resulted in diminished or contaminated drinking water supplies, destruction of roads and bridges, increased traffic beyond road capacity; decreased air quality, loss of aesthetics and more.

Mundy said she can’t imagine what Switzer is going through.

“How do you like less government – fewer DEP employees, lower taxes, no severance tax? This is what we’ve got; let’s fix it,” Mundy said.

State Rep. Tim Seip, D-Pottsville, said a severance tax on gas extraction is necessary to fund more inspectors and conservation district work. He said the public should lobby their state senators to adopt the bill when it comes before them.

Asked if he thought a moratorium was possible in Pennsylvania, George said he thought, “It’s really going to help Pennsylvania if every place where there’s drilling we get this type of attention.”

Copyright: Times Leader

Environmental Resources and Energy hearing Wednesday at Kingston Township building.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

KINGSTON TWP. – Several people with concerns about natural gas drilling in Pennsylvania – and especially in the Back Mountain – are scheduled to testify Wednesday at a public hearing before a state House of Representatives committee.

State Rep. Phyllis Mundy requested and is hosting a hearing of the House Environmental Resources and Energy Committee at the Kingston Township Municipal Building from 1 to 3 p.m.

Mundy, D-Kingston, said she has “grave concerns” that there are inadequate protections in place to protect the environment from drilling associated with the Marcellus Shale formation.

“I don’t think we’re going to be able to stop Marcellus Shale drilling, but we need to make sure it doesn’t leave a legacy like that of coal. An ounce of prevention is worth a pound of cure,” Mundy said on Monday.

She said she believes a proposed drilling site in Lehman Township is “much too close” to the Huntsville and Ceasetown reservoirs, which provide drinking water to many of her constituents.

Committee Majority Chairman Camille “Bud” George notes in a press release that the state Department of Environmental Protection issued more than 1,300 drilling permits in 2009 and more are expected in coming years, yet no study exists on the environmental or human health impacts of gas development in Pennsylvania.

Testimony will be presented about mitigating environmental risks and House Bill 2213 – the Land and Water protection Act introduced by George, D-Clearfield County.

The bill would:

• Require state inspections of wells during each drilling phase.

• Extend to 2,500 feet the presumed liability of a well polluting a water supply; the current radius is 1,000 feet.

• Require full disclosure of chemicals used in the hydraulic fracturing of the gas.

• Update bonding requirements to cover the costs of decommissioning a well. Current regulations call for a $2,500 bond, but the cost to cap a well could range from $12,000 to $150,000 for a deep well, according to George.

Scheduled to testify are Dr. Thomas Jiunta, a local podiatric physician active in environmental causes; Dr. Gere Reisinger, a physician whose 200-acre farm in Wyoming County has been affected by drilling; Victoria Switzer, whose water at her home in Dimock, Susquehanna County, was contaminated after nearby drilling; Brady Russell, eastern Pennsylvania director, Clean Water Action; and Jeff Schmidt, senior director, Sierra Club, Pennsylvania Chapter.

Copyright: Times Leader

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

Drilling for natural gas in the Marcellus Shale that underlies much of Northeastern Pennsylvania is expected to create hundreds to thousands of jobs, depending on who’s doing the projections, and have other widespread economic effects.

Some of those new work opportunities will be with the drilling and gas companies, but others are expected to be with subcontracted services, from land surveying and engineering to hauling and construction. Legal and banking services also will be needed.

Chesapeake Energy has invested significantly in not only leasing land in Pennsylvania, but in doing business with private companies.

With 94 wells drilled in the state in 2009 and more than 200 additional wells planned for this year, the company has paid subcontractors and vendors in Pennsylvania $269 million since January 2009, company spokesman Rory Sweeney said in an e-mail.

Among the first employers to see the effects of natural gas exploration are law, surveying and engineering firms.

“We are seeing an increase in our business volume,” said Mark Van Loon, a partner with Rosenn Jenkins & Greenwald, a law firm with offices in Scranton, Wilkes-Barre and Hazleton.

“We’ve represented quite a few people in relation to the Marcellus Shale and land leases in Luzerne County, north to the New York border, and east and west from there in Susquehanna, Bradford, Luzerne and Lackawanna counties. There have been some in Wayne County, but not as much,” Van Loon said.

Lease holders also will also need to protect their financial assets, and that’s where banks come into the picture.

David Raven, president and chief executive officer of Pennstar Bank, said the financial institution is seeing a significant increase in business related to Marcellus Shale at branches in Susquehanna County.

“It’s specific to folks who receive lease (bonus) payments and eventually will receive royalties on the gas that’s produced,” Raven said.

In addition to landowners who want to protect their rights while negotiating the most lucrative deals, firms and individuals that enter into large contracts with the gas and drilling companies – engineers, construction firms, suppliers and haulers, for example – will want to have those contracts vetted before signing, according to Van Loon.

“If somebody has a contract that’s large enough, they’re likely to have it reviewed by their legal counsel because it involves too much risk for them not to. And there could be contractual disputes in relation to the delivery or performance of services,” he said.

Van Loon said his firm has five attorneys actively working on oil and gas lease issues, but at this point the partners have not seen the need to hire additional staff.

That’s not the case with Borton Lawson, an engineering firm based in Plains Township that also has offices in Bethlehem, State College and, as of two months ago because of the business generated by the Marcellus shale, in Wexford – a town in Pittsburgh’s northern suburbs.

Chris Borton, company president, has referred to the Pittsburgh area as “the heart of the gas and oil industry” in the region.

Last year, Borton Lawson laid off some of its survey crew workers as companies hurt by the recession cut back on land development. But over the last six months, the firm has hired six to eight people – including several surveyors – for jobs directly related to the Marcellus Shale.

And the company is looking for 13 more employees right now to fill positions such as environmental engineers and scientists, an electrical engineer, an automation engineer and a mechanical engineer.

Salaries for those jobs range from $40,000 to $80,000 depending on the type of job and experience of the employee, Borton said.

Borton said his firm is working with five natural gas companies in Northeastern Pennsylvania. The company will open a satellite office in the borough of Towanda, the county seat of Bradford County, on April 15 because of the extensive natural gas exploration and drilling in that area.

County drilling near

One of the gas companies – Encana Oil and Gas Inc. – has leased 25,000 acres of property in Luzerne County. The land is mainly on the north side of Route 118 in Fairmount, Ross, Lake and Lehman townships.

Encana so far has obtained permits for drilling one well in Lake Township and another in Fairmount Township and is seeking a permit for one in Lehman Township, said company spokesman Doug Hock. Hydrogeological studies are now under way, and officials hope to begin constructing wells by May.

“For every well drilled, that creates about 120 jobs, either directly or indirectly. … The bulk of these jobs as we begin operations are done by subcontractors,” Hock said.

Subcontracted work includes water haulers, truck drivers, construction crews for well pad grading and construction and rig hands after the wells are built. Local average wages could see a boost, given that salaries even for less skilled positions range from $60,000 and $70,000, he said.

Hock said Encana prefers to hire local contractors, “but it’s not always possible because of the skills available in the labor market.”

He couldn’t predict how many new jobs will be generated by Encana operations because officials won’t know how many additional wells – if any – might be drilled until they see the results of natural gas production from the first two or three.

“By the end of 2010, we’ll have an idea if we have a good program, something that’s economically viable that we can continue to develop,” Hock said.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

The organization represents six communities in the Back Mountain area.

By Rebecca Briarbria@timesleader.com
Staff Writer

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright: Times Leader