Posts Tagged ‘Moon Lake Park’

The pursuit of natural gas on county land could endanger area water supplies, one leader says.

RALPH NARDONE Times Leader Correspondent

Opposition to local natural gas drilling continues to boil over. On Saturday, about 100 people gathered to voice their concerns about possible drilling at Moon Lake Park. The 650-acre park had been kicked around as a site with the blessing of county officials who were seeking a way to cash in on the local boom.

Organizers originally intended to conduct a nine hour “rally” there that included food vendors, family activities, music and more but could only meet briefly due to a lack of proper insurance coverage.

Janine Dymond from Harding, member of the Friends of Moon Lake and bike trail enthusiast said the county required by policy $1 million worth of insurance coverage for any large scale event on county property. She said when the group learned about the insurance they decided the estimated $1,300 in premiums to be cost prohibitive.

Still, they gathered to support each other, displaying signs of protest for the prospective drilling plans, and spit vitriol at Commissioner Steve Urban who supports gas drilling there.

Dymond said she personally gathered about 600 signatures on an anti-drilling petition.

“It’s hard not to get involved,” Dymond said.

Dr. Tom Jiunta from Lehman Township, one of the founders of the Gas Drilling Awareness Coalition, said the environmental cons of park drilling far outweigh the economic pros. Because of its proximity to the Ceasetown Dam, the fact most residences use well water and the recent issues concerning ground water pollution, drilling is too risky.

In addition, the amount of diesel fuel exhaust from the truck traffic and drilling machinery belched from a 24-hour industrial project is significant, he said. He spoke to people who have respiratory issues they attribute to drilling.

He said the gas industry often misleads about the actual economic value of drilling to Northeastern Pennsylvania. Most of the jobs produced will be for workers who come from out-of-state, he said. The gas taken locally will be sold in the global market to countries such as China, he added.

When talking about Moon Lake, Jiunta said the beauty of the park should be preserved as well as the health and safety of the residents.

Jean Whitesell from Hunlock Creek and Kathy Hopkins from Ashley, co-workers who visit Moon Lake on a regular basis, expressed their fears the park will become a drilling site. They were fishing with their children.

Whitesell said she was “upset” when she first heard about the drilling plans.

She said she is not opposed to gas drilling as long as it is done where it won’t “hurt anybody.”

Dymond said the Friends of Moon Lake thanked the Sierra Club for its help in fighting the drilling project. She said the group intends to organize a rally sometime in the near future.

Copyright: Times Leader

County officials had been negotiating with EnCana Oil & Gas USA Inc. of Denver.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

An energy company that plans to drill for natural gas in the Back Mountain has advised Luzerne County officials that the company will not pursue a lease for natural gas drilling at Moon Lake Park.

County officials had been negotiating with EnCana Oil & Gas USA Inc. of Denver to drill at the park and tap lake water needed to help fracture rock to release gas.

“The county informed us of their interest in entering into a lease for the development of natural gas resources on the Moon Lake property,” EnCana spokeswoman Wendy Weidenbeck said in an e-mail.

Weidenbeck said that as with any business opportunity, companies must evaluate multiple factors to help guide their decisions.

“We carefully considered the potential needs of our business and concerns over the development of natural gas resources on recreational property. After careful consideration, we have decided that we will not pursue a lease to drill for natural gas resources on the Moon Lake property,” she said.

Commissioner Chairwoman Maryanne Petrilla said she has been out of the office after knee surgery and had not yet been briefed on the issue.

Commissioner Thomas Cooney said he had not talked with EnCana officials and that Gibbons had alerted him to the news on Friday.

Cooney said other energy companies might be interested in exploration at the county-owned park and the development of a request for proposals was not out of the question. However, “there has been no conversation leading that way right now,” he said.

Cooney said he did not know how far along talks about selling water from the lake at Moon Lake Park have come. But if the county were to negotiate the sale of water, there would have to be appraisals and bidding and permits would have to be secured, he said.

The park’s 48-acre, spring-fed lake holds millions of gallons of water and is 13.5 feet in its deepest spot, county officials have said. All park water drainage pipes also feed into the lake.

Cooney said he thinks the reaction of the Sierra Club to drilling at Moon Lake probably influenced EnCana’s decision.

An official with the Sierra Club’s Northeastern Pennsylvania chapter said in February that county commissioners didn’t have legal authority to allow natural gas drilling at the park, which is located in Plymouth Township.

Frank Muraca, who sits on the organization’s executive committee, had said much of the park land was purchased with state and federal funds in the 1960s through a program known as the Project 70 Land Acquisition and Borrowing Act.

Lands acquired through the act must be used for recreation, conservation and historical purposes unless approval is granted by the General Assembly, the governor and the state Department of Conservation and Natural Resources. Muraca had said he also found other legal and zoning stumbling blocks that would have to be met to allow drilling.

Muraca had initially presented the information to Commissioner Stephen A. Urban, who has said he couldn’t comment on Muraca’s assertions until he did his own research. He has said he is supportive of “responsible” drilling on county property to generate needed revenue.

Urban did not return a message seeking comment for this story.

The park officially closed Jan. 28 because commissioners stripped funding for staff and other expenses from the 2010 budget, saying that they could not justify non-essential expenses with a property tax increase.

Petrilla has said she is willing to consider any offer to generate revenue, as long as the park’s recreational atmosphere is not compromised. She also has said she would not support any offers that would drain or pollute the lake.

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

Copyright: Times Leader

More than 650 acres are available. Drilling firms being contacted directly.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

Luzerne County began seeking bids Monday to lease more than 650 acres at Moon Lake Park for natural gas drilling.

In an effort to entice a bidder, county engineer Joe Gibbons said he is contacting drilling companies directly.

“I’m trying to swing it in our favor. I’m sending e-mails out to the gas industry to see if anyone’s interested in receiving a set of bid documents,” he said. “It’s up in the air because the commodities are in the tank right now. … I’m kind of optimistic. I hope we get somebody.”

Potential bidders can review and pick up the documents at the county property and supply office in Penn Place at 20 N. Pennsylvania Ave., Wilkes-Barre. The bids are due by 2 p.m. April 23, but must be pre-qualified by April 9.

The proposal is modeled, Gibbons said, on that used by the state Department of Conservation and Natural Resources.

The request for proposals was structured, he said, so that the county receives several revenue sources from the deal and retains authority over where drill pads would be located in the park. “The last thing I want to do is make the place look like an open construction site. I want to maintain its recreational integrity. It’s just a unique project,” he said.

The county would receive income from the rental of the drilled acreage; the sale of the timber felled when preparing the drilling sites; other marketable fluids, such as methane or oil, that are extracted from the drilling; and storage fees for gas that is stored when an exploratory well is drilled, but capped until it can be hooked up to a pipeline, he said. “They can have the storage, that’s fine, but we get the storage rental,” he said.

All bidders would have to offer at least 16 percent royalties on the price at the well head for any marketable fluids it produces, he said.

The winning bidder will offer the highest initial-year rental fee for the acreage, he said, which was set for at least $500 per acre. After that, the fee drops to between $10 and $20 per year, he said, but there is a stipulation that drilling begin within a year.

The winning bidder would post three bonds, including one to ensure the site is restored after drilling concludes, he said. “I put restrictions on where they could take water from and how much they could take, even above and beyond what DEP (the state Department of Environmental Protection) would issue in a mining permit,” he said.

The bids would also have to be pre-qualified to ensure they are from actual drilling companies planning development and not land-holding companies expecting to resell the land, he said. “If we do get a lease, I want to deal directly with the gas company. I don’t want to go through a middle man,” he said.

Copyright: Times Leader

YOU CAN practically hear the Luzerne County Commissioners yelling: “Eureka! Thar’s treasure in them thar’ hills.”

The trio knows that – much like a century ago – a potential financial bonanza lies below our feet in the form of a coveted fuel. This time, it’s not anthracite.

Instead, companies aim to extract natural gas from deep below Northeastern Pennsylvania’s crust, using new drilling technology to tap a rock formation known as the Marcellus shale. The drillers, and speculators hoping to profit by hoarding land-lease agreements, have knocked on doors throughout the region, promising to put money in the pockets of cooperative property holders.

Luzerne County officials rightly recognize that this region’s (second) energy revolution offers a rare opportunity.

If handled properly, it can provide a much-needed source of relatively inexpensive fuel for home-heating and other purposes. Plus, the industry can be a significant money-maker for private landowners as well as public entities, including the commonwealth (which controls state forests and game lands) and the county.

Pennsylvania’s natural gas boom, therefore, deserves to be handled with extreme care so that current residents and future generations reap the full benefits. The approach will require specialized knowledge of geological, environmental and legal issues, coordination among all involved parties and patience.

With no disrespect intended, this is not a job for the Luzerne County Commissioners to attempt on their own.

Commissioner Greg Skrepenak’s proposal to create a gas exploration task force, which will involve professionals, makes sense in the short term. After studying the issue, however, this task force might decide it’s more sensible to combine efforts with a regional or statewide group that has even more expertise and can leverage the best deals on behalf of the taxpaying public.

The commissioners could vote as soon as Wednesday to request proposals for drilling in the county-owned Moon Lake Park area. What’s the rush? Most advisers have been telling private property owners that there is no need to leap on this bandwagon; indeed, better deals probably can be secured at a later time and by coordinating efforts with surrounding property owners rather than trying to compete with them.

In recent years the county has entered into some poorly arranged contracts, such as the juvenile detention center deal. The stakes are too high to botch this one.

Unfortunately, the current commissioners might see natural gas leases as an easy out – an escape from the burdensome budget deficits that have become all-too typical here in recent years. It would be a mistake, however, to make hasty decisions for short-term gain that could impact this region and its residents for the next century.

Luzerne County

officials rightly recognize that this region’s (second) energy revolution offers a rare opportunity.

Copyright: Times Leader

Commissioners consider asking for proposals to drill at Moon Lake Park.

Having witnessed the natural-gas drilling boom both in other counties and for some local residents, Luzerne County officials are considering the windfall potential for county lands.

At its meeting on Wednesday, the county commissioners are expected to approve issuing a request for proposals to drill in a little more than 2,000 acres in Moon Lake Park. They’ll also likely vote on creating a gas exploration task force proposed by Commissioner Greg Skrepenak.

Commissioner Steve Urban said he’s been following the gas progress for about six months and feels now is the time to offer the park lands because surrounding landowners are seeking leases as well.

“People are already interested in the land around Moon Lake, and I’m optimistic they’d be willing to talk to us,” he said. “It’s good to be proactive.”

He said the going rates seem to be between $2,600 and $3,200 signing bonuses per acre and perhaps 18 percent royalties.

Beyond the benefits to the county, he suggested local customers would find a benefit in receiving domestically produced natural gas.

He said the drilling wouldn’t affect plans to construct mountain-bike racing courses there.

Skrepenak said he’d likely support offering the lands for leasing, but said the county should have fully researched the topic first.

“I definitely think we need to take this issue as far as we can,” he said.

The task force would gather information, but also be a source for residents and local companies seeking work with the gas companies, he said. It should be made up of county officials, other public officers and experienced professionals, he said.

The shale drilling has shown to be “recession proof” in Texas, he said, which is why he finds it an exciting consideration. “It is the hot topic,” he said. “It’s been seen as a positive thing for the most part.”

Dave Skoronski, director of the county Geographic Information System/Mapping Department, noted there are promising signs that companies are considering the county. Several companies in related industries have come to his office to buy the county’s map data.

“They’ve been coming, and some people who work at the desk said they were doing gas research,” he said, noting that Burnett Oil Co., Inc., Mason Dixon Energy, Inc. and Elexco Land Services, Inc. have purchased map information.

Panel created

Luzerne County Commissioner Greg Skrepenak was named to the County Commissioners Association of Pennsylvania’s Natural Gas Task Force.

The group has been established to identify issues related to exploration and development of natural gas in Pennsylvania and to advise on policy related to those issues. Skrepenak participated in the task force’s first conference call on Sept. 26.

Copyright: Times Leader