Posts Tagged ‘natural gas well’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright: Marcelluscoalition.org

VICKI SMITH Associated Press Writer
Published: June 7, 2010

MORGANTOWN, W.Va. (AP) — A crew drilling a natural gas well through an abandoned coal mine in West Virginia’s Northern Panhandle hit a pocket of methane gas that ignited, triggering an explosion that burned seven workers, state and company officials said Monday.

The blast created a column of flame that was initially at least 70 feet high, but the rig operator said the site was secure and the fire was about 40 feet high by late morning.

A team from Texas-based Wild Well Control, a company that specializes in rig fires, will decide whether to let the methane burn or try to extinguish the flames, said Kristi Gittins of Dallas,Texas-based Chief Oil and Natural Gas.

The explosion occurred about 1:30 a.m. in a rural area outside Moundsville, about 55 miles southwest of Pittsburgh, and presents no danger to any structures or people, said Bill Hendershot, an inspector with the state Department of Environmental Protection’s Office of Oil and Gas.

The operation was less than a week old: DEP records show a permit was issued June 2 to AB Resources PA LLC of Brecksville, Ohio.

Gittins said AB Resources is the operator of the well, while Chief has a “participation interest.” It is Chief’s responsibility to drill and complete the well, she said.

Chief’s site contractor, Union Drilling of Buckhannon, had drilled the first 1,000 feet of a second well on the property and was preparing to install surface casing when crews apparently hit and ignited the methane, she said.

Crews had drilled through the abandoned Consol Energy mine before without incident, she said.

Methane is a known risk when working near old mines, and the company typically takes a variety of precautions, including venting systems. Gittins could not immediately say what precautions were in place at this site.

“Luckily, our response team got there quickly, secured the area and evacuated the workers,” she said. “From all appearances, there weren’t any life-threatening injuries, so that’s a good thing.”

The seven workers were taken the West Penn Burn Center in Pittsburgh and were in fair condition, a hospital spokeswoman said.

Five were employed by Union and two worked for BJ Services Co. of Houston, Texas, said Jeff Funke, area director of the Occupational Safety and Health Administration’s Charleston office.

A spokesman for Union in Fort Worth, Texas, did not immediately return a telephone message.

The BJ Services workers were among four that had just arrived on site to place the casing, said Gary Flaharty, a spokesman for the parent company, Baker Hughes Inc. of Houston. The crew runs a safety check at the start of each shift and was just preparing to do that when the blast occurred.

Flaharty could not provide any details about the injured employees but said they’re being treated for burns and are expected to survive.

Funke said OSHA learned of the accident shortly after 8 a.m., and two investigators were being dispatched. However, they cannot enter the site and begin work until the fire is out, he said.

OSHA created a program to deal with gas drilling in the vast Marcellus shale fields about five years ago and has been proactively inspecting sites to ensure compliance with safety regulations, he said. The gas reserve is about the size of Greece and lies more than a mile beneath New York, Pennsylvania, West Virginia and Ohio.

OSHA knew there would be a lot of drilling in West Virginia and Pennsylvania, “and we did our best to get out in front of that curve,” Funke said. “So we’re well-equipped to respond to this.”

About 98 percent of the region’s drilling now involves Marcellus shale, he said.

Gittins, the spokeswoman for Chief, confirmed the company was tapping into the Marcellus reserves. The company has drilled about 75 Marcellus wells in West Virginia and Pennsylvania so far, she said, with about 15 of them in West Virginia.

This was the company’s first major accident, she said.

However, it’s the latest in a string of accidents related to the rapidly growing pursuit of Marcellus gas.

In Pennsylvania, environmental regulators are investigating what caused another well to spew explosive gas and polluted water for about 16 hours last week until it was brought under control.

A crew of eight was evacuated from the Clearfield County site Thursday, but no one was injured. That accident involved EOG Resources Inc. of Houston.

Copyright:  The Scranton Times-Tribune