Posts Tagged ‘Ohio’

MATTHEW TODD VINE Times Leader Intern

HAZLETON – Local businesses eager to get in on the Marcellus Shale gas drilling bonanza will have a chance to hear about opportunities on Tuesday.

That’s when the Northeast Pennsylvania Manufacturers and Employers Association will hold a combined Schuylkill/Luzerne CEO roundtable at the Top of the 80’s restaurant on Route 93 to talk about Marcellus Shale development with a focus on manufacturing jobs.

Darlene Robbins, president of the association, said that about 25 member companies were registered for the event by Wednesday.

“Our purpose of the event is to provide the discussion to the companies,” Robbins said, “about the services that are available with this Marcellus Shale development.”

Robbins said the businesses already registered include service providers, universities, workforce development agencies and electrical contractors.

According to the Marcellus Shale Coalition, based in Canonsburg, an industry funded study by The Department of Energy and Mineral Engineering in the College of Earth and Mineral Sciences at The Pennsylvania State University found 44,000 jobs already created in the state and projected more than 200,000 direct and indirect jobs would be added by 2020.

The potential jobs include site construction, well production, pipe manufacturing and transportation.

The Marcellus Shale is a layer of sedimentary rock about a mile underground that contains natural gas. This layer underlies much of Pennsylvania and West Virginia, and parts of New York, Ohio, Maryland, Virginia. Drilling is just getting started in Luzerne County, and companies have leased thousands of acres, mostly in the northern and western sections of the county.

Copyright: Times Leader

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

Sporting groups, conservationists and anti-drilling neighbors protest the large-scale gas exploration.

MICHAEL RUBINKAM Associated Press Writer

PLEASANT MOUNT, Pa. — A few hundred yards from Louis Matoushek’s farmhouse is a well that could soon produce not only natural gas, but a drilling boom in the wild and scenic Delaware River watershed.

Energy companies have leased thousands of acres of land in Pennsylvania’s unspoiled northeastern tip, hoping to tap vast stores of gas in a sprawling rock formation — the Marcellus Shale — that some experts believe could become the nation’s most productive gas field.

Plenty of folks like Matoushek are eager for the gas, and the royalty checks, to start flowing — including farmers who see Marcellus money as a way to keep their struggling operations afloat.

“It’s a depressed area,” Matoushek said. “This is going to mean new jobs, real jobs, not government jobs.”

Standing in the way is a loose coalition of sporting groups, conservationists and anti-drilling neighbors. They contend that large-scale gas exploration so close to crucial waterways will threaten drinking water, ruin a renowned wild trout fishery, wreck property values, and transform a rural area popular with tourists into an industrial zone with constant noise and truck traffic.

Both sides are furiously lobbying the Delaware River Basin Commission, the powerful federal-interstate compact agency that monitors water supplies for 15 million people, including half the population of New York City. The commission has jurisdiction because the drilling process will require withdrawing huge amounts of water from the watershed’s streams and rivers and because of the potential for groundwater pollution.

The well on Matoushek’s 200-acre spread in the northern Pocono Mountains in Wayne County is up first. The commission is reviewing an application by Stone Energy Corp. of Lafayette, La., to extract gas from the well — the first of what could be thousands of applications by energy companies to sink wells in an area roughly the size of Connecticut.

Stone Energy’s application has already generated more than 1,700 written comments to the DRBC. The company, which paid a $70,000 penalty for drilling the Matoushek well without DRBC approval in 2008, has already received a permit from the Pennsylvania Department of Environmental Protection.

Eager gas companies have leased more than 300 square miles of watershed land, conservation officials estimate.

“This is certainly just the start. There’s a lot of acreage out there, and a lot of people interested in leasing their land,” said Tracy Carluccio, deputy director of the anti-drilling Delaware Riverkeeper Network.

The Marcellus Shale is a rock formation 6,000 to 8,000 feet beneath Pennsylvania, New York, West Virginia and Ohio, including about 36 percent of the Delaware River basin. New drilling techniques now allow affordable access to supplies in the Marcellus and other shales in the U.S. that once were too expensive to tap.

Energy companies combine horizontal drilling with hydraulic fracturing, or “fracking,” a technique that injects vast amounts of water, along with sand and chemicals, underground to break up the shale and release the gas.

While gas companies refuse to identify the chemicals they use — claiming that is proprietary information — critics cite contamination problems in other natural gas drilling fields. They worry that unregulated fracking can taint drinking water, deplete aquifers and produce briny wastewater that can kill fish. In Dimock, Pa., about 40 miles west of the Matoushek well but outside the Delaware basin, state environmental regulators say that cracked casings on fracked wells have tainted residential water supplies with methane gas.

The Environmental Protection Agency announced last month that it will study the impact of fracking on the environment and human health. The EPA said in 2004 there was no evidence that fracking threatens drinking water quality, but critics, including a veteran engineer in the Denver regional EPA office, argued that report’s methodology was flawed.

The industry contends environmental concerns are overblown. It says the drilling techniques are safe and that there has never been a proven case of groundwater contamination caused by fracking — in part because fracking occurs far below the water table. Congress exempted hydraulic fracturing from federal oversight in 2005.

Dozens of people told the DRBC at a recent public hearing why they oppose the watershed drilling. A few supporters called it an economic boon and a property-rights issue.

Richard Kreznar, who owns property in the Pennsylvania riverfront community of Damascus, said gas drilling primarily benefits large landowners and exploration companies.

“After the Delaware River and the stream next to my house are messed up, what compensation will I get? Who will put it back together again?” he asked DRBC staff.

Lee Hartman, the Delaware River chairman for Trout Unlimited, worries that large water withdrawals required for fracking will create low stream flows in the Delaware’s tributaries, damaging fish habitat. For the Matoushek well, Stone Energy wants to take 700,000 gallons a day from the Lackawaxen River’s narrow west branch.

Hartman and others say the DRBC should first study the cumulative environmental impacts of drilling in the Delaware watershed, and pass drilling regulations, before it allows any gas extraction to take place. The agency has asked for $250,000 in federal funds for a study, but commissioners have not said whether they will wait before voting on Matoushek’s well.

Opponents say they will sue if Stone Energy’s application is approved.

Downstream communities that rely on the Delaware for drinking water are worried about the coming gas boom. New York City Mayor Michael Bloomberg opposes any drilling in the watershed, while the Philadelphia City Council has asked the basin commission for an environmental study.

New York state regulators have put a moratorium on drilling in the Marcellus region, saying they won’t approve permits until they are finished drafting new regulations.

Back in northeastern Pennsylvania, Matoushek, 68, a semiretired farmer who signed a lease with Stone Energy three years ago, said he is counting on royalty checks from gas production to help fund his golden years and secure the land for future generations of his family. As far he’s concerned, the benefits far outweigh any theoretical harm.

Copyright: Times Leader

Although signing bonuses generate an enormous amount of interest because they are guaranteed income, royalties can be significantly higher. A royalty is a share of a well’s income. The customary royalty rate is 12.5 percent of the value of gas produced by a well. Higher royalty rates are sometimes paid by aggressive buyers for highly desirable properties.

The royalties paid to eligible property owners from a well yielding over one million cubic feet of natural gas per day can be hundreds of thousands of dollars per year.

If the Marcellus Shale holds up to the optimistic expectations of some natural gas experts, Pennsylvania, Ohio, New York and West Virginia could temporarily have an enormous boost in income that might be sustained for a few decades.
Copyright: Geology.com

Harveys Lake officials cite environmental concerns in opposing the water use.

EILEEN GODIN Times Leader Correspondent

HARVEYS LAKE – Council members on Tuesday night voiced concerns over a gas company’s interest in using lake water for the drilling of the Marcellus Shale.

Environmental scientists from Gannett Fleming Engineering are interested in drilling in the Marcellus Shale region, which runs through Northeastern Pennsylvania. The shale contains pockets of natural gas.

The gas company wants to use 20 million gallons of water from Harveys Lake for a process called hydrofracing. Hydrofracing is the use of high pressure water to create cracks in the rock surrounding the shale so that the gas can be recovered.

Council Chairman Lawrence Lucarino said the shale is located a mile or more below the earth’s surface.

Council members say they oppose the practice because they are trying to protect the state’s largest natural lake.

But even though the council can deny it the use of the water, “the federal government can override the council’s decision,” Councilwoman Diane Dwyer said.

The council has asked attorney Charles D. McCormick to draft a letter stating the borough’s position and reasons against using the lake water.

“Who knows how well they will filter out the contaminants before letting the water back into the lake,” Dwyer said.

She asked residents to “please be watchdogs and keep an eye on your backyard.”

The Marcellus Shale fields are located in the Appalachian Basin, running through Pennsylvania, New York, Ohio and West Virginia. According to the Web site oilshalegas.com, the Appalachian Basin could provide 50 trillion cubic feet of natural gas for the United States. The United States now produces 30 trillion cubic feet of natural gas.

In other news, emergency 911 street maps have been returned to the borough. Council members Carole Samson and Charles Musial will review the maps to make sure all the street names are correct.

This process should take about one to two weeks, Samson said. Once approved by the borough, the maps will be sent to the County 911 office for final approval.

Copyright: Times Leader

Industry reps cite permitting delays; DEP head says issues to be resolved.

DALLAS TWP. – Representatives from every aspect of the state’s burgeoning natural-gas drilling industry met on Tuesday and, though differing on specifics, emphasized that Pennsylvanians stand upon a multibillion-dollar windfall, but only if the state streamlines its permitting process.

The hearing at Misericordia University was organized by the state Senate Republicans’ policy committee to identify potential problems with drilling the Marcellus Shale about a mile underground, but the senators instead were told that many of the problems lie with the state itself.

“Fundamentally, what the industry has said to us is, ‘We need to know what the rules are,’” said Tom Beauduy, the deputy director of the Susquehanna River Basin Commission. The commission oversees water removal from the river basin.

Industry representatives were dire with their characterizations. The industry is experiencing “permitting delays unlike we have ever seen in any other state,” said Wendy Straatmann, president of Ohio-based Exco-North Coast Energy Inc. “Why would I spend so much of our company’s time and resources when I can go to some other state and use the gas and oil manual and follow the regulations?”

Ray Walker, a vice president with Texas-based Range Resources Corp., agreed that an inclusive regulations manual would help companies “put our money into protecting the environment and not paperwork.” He noted that smaller companies are considering drilling here, but won’t if the permitting process remains slow and taxes increase. That could keep development slow, he said.

That’s a prospect that few at the hearing wanted. John Hanger, the acting secretary of the state Department of Environmental Protection, assured that his agency was “working to make sure that gas can be produced and water protected.” Part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock, and Hanger said his favored alternative was to find ways for the companies to simply inject them underground.

DEP would need to increase its regulatory force to keep up with the permitting and inspections demand predicted based on industry desires, he said, noting the department has recently requested substantially increasing its well-permitting fees.

Still the Republican senators felt DEP is clamping down too tightly. “When I ran for Senate, I was mad at the state for over-regulating my industry,” said Sen. Mary Jo White, R-Venango County, who had worked for an oil corporation. “I think we’re heading down that road again.”

William Brackett, the managing editor of a newsletter that reports on the Barnett Shale, said gas drilling there “is a prime reason the north Texas economy has only caught a cold and not the flu.”

John Hanger, acting DEP secretary, said part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock.

Copyright: Times Leader

Industry reps cite permitting delays; DEP head says issues to be resolved.

DALLAS TWP. – Representatives from every aspect of the state’s burgeoning natural-gas drilling industry met on Tuesday and, though differing on specifics, emphasized that Pennsylvanians stand upon a multibillion-dollar windfall, but only if the state streamlines its permitting process.

The hearing at Misericordia University was organized by the state Senate Republicans’ policy committee to identify potential problems with drilling the Marcellus Shale about a mile underground, but the senators instead were told that many of the problems lie with the state itself.

“Fundamentally, what the industry has said to us is, ‘We need to know what the rules are,’” said Tom Beauduy, the deputy director of the Susquehanna River Basin Commission. The commission oversees water removal from the river basin.

Industry representatives were dire with their characterizations. The industry is experiencing “permitting delays unlike we have ever seen in any other state,” said Wendy Straatmann, president of Ohio-based Exco-North Coast Energy Inc. “Why would I spend so much of our company’s time and resources when I can go to some other state and use the gas and oil manual and follow the regulations?”

Ray Walker, a vice president with Texas-based Range Resources Corp., agreed that an inclusive regulations manual would help companies “put our money into protecting the environment and not paperwork.” He noted that smaller companies are considering drilling here, but won’t if the permitting process remains slow and taxes increase. That could keep development slow, he said.

That’s a prospect that few at the hearing wanted. John Hanger, the acting secretary of the state Department of Environmental Protection, assured that his agency was “working to make sure that gas can be produced and water protected.” Part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock, and Hanger said his favored alternative was to find ways for the companies to simply inject them underground.

DEP would need to increase its regulatory force to keep up with the permitting and inspections demand predicted based on industry desires, he said, noting the department has recently requested substantially increasing its well-permitting fees.

Still the Republican senators felt DEP is clamping down too tightly. “When I ran for Senate, I was mad at the state for over-regulating my industry,” said Sen. Mary Jo White, R-Venango County, who had worked for an oil corporation. “I think we’re heading down that road again.”

William Brackett, the managing editor of a newsletter that reports on the Barnett Shale, said gas drilling there “is a prime reason the north Texas economy has only caught a cold and not the flu.”

John Hanger, acting DEP secretary, said part of the lag has come from a dearth of disposal options for the fluids used to hydraulically fracture the rock.

Copyright: Times Leader



Gas industry officials told state senators in Dallas that cumbersome rules make it difficult to operate.

MICHAEL RUBINKAM Associated Press Writer

DALLAS — Executives of drilling companies exploring a huge untapped reserve of natural gas say the economic windfall expected from the Marcellus Shale may not come to pass if Pennsylvania doesn’t get its regulatory house in order.

Industry officials complained Tuesday about a time-consuming and lengthy permitting process and cumbersome regulations that, on top of plummeting natural gas prices and the credit crisis, is making it difficult for them to operate in Pennsylvania.

“I have great hopes for what the Marcellus Shale play might still hold for Pennsylvania. Unfortunately, my experience to date does not lead me to be very optimistic,” Wendy Straatman, president of Exco-North Coast Energy Inc., told Republican state senators at a hearing in northeastern Pennsylvania.

She said the Akron, Ohio-based company has moved drilling equipment to West Virginia and delayed its plan to transfer a “significant number” of employees into Pennsylvania because of DEP permitting delays that are “unlike anything we have seen in any other state in which we operate.”

Another executive, Scott Rotruck of Oklahoma City-based Chesapeake Energy Corp., the largest natural gas producer in the United States, predicted “ominous” consequences for Marcellus development if Pennsylvania’s regulatory environment doesn’t become more welcoming. He said the permitting process is easier and less costly in other states.

Sympathetic GOP senators pressed acting Environmental Secretary John Hanger for answers, warning that Pennsylvania can’t afford to scare off an industry that has promised to create tens of thousands of new jobs.

The state needs to be “careful we are not killing the goose that’s laying the golden egg,” said Sen. Mary Jo White, R-Venango.

Hanger agreed that regulations need to be streamlined and said his agency is working on it, but added that most applications are processed within 45 days.

“There has to be a smart way to protect what we need to protect, and at the same time (prevent) a delay that really serves no purpose,” he said. “I believe there’s a learning curve here for everyone involved.”

Part of the problem may be a lack of DEP manpower to cope with a record number of natural gas applications. The agency is on track to issue 8,000 permits in 2008, up from 2,000 in 1999, yet staffing in the agency’s oil and gas division has remained stable at about 80. The DEP has proposed to raise fees on drilling companies to pay for additional staff to process applications and inspect wells.

Tuesday’s hearing at Misericordia University was called by the Senate Majority Policy Committee to explore the economic and environmental impact of drilling in the Marcellus, a layer of rock deep underground that experts say holds vast stores of largely untapped natural gas.

Industry executives also opposed a tax on natural gas that the administration of Gov. Ed Rendell has said it is considering.

“New taxes will stymie Marcellus development,” said Ray Walker Jr., vice president of Range Resources Corp., a Texas-based oil and gas company with an office in southwestern Pennsylvania.

Copyright: Times Leader

ALBANY, N.Y.

Marcellus Shale gets upgraded sevenfold

A geologist says the Marcellus Shale region of the Appalachians could yield seven times as much natural gas as he earlier estimated, meaning it could meet the entire nation’s natural gas needs for at least 14 years.

Penn State University geoscientist Terry Engelder says in a phone interview Monday that he now estimates 363 trillion cubic feet of natural gas could be recovered from the 31-million-acre core area of the Marcellus region, which includes southern New York, Pennsylvania, West Virginia and eastern Ohio.

Engelder and geologist Gary Nash of the State University of New York at Fredonia touched off a gas rush in the region last January with their study estimating that the Marcellus could yield as much as 50 trillion cubic feet of natural gas.

LANCASTER, Pa.

Man gets 2 DUIs in five-hour period

Police say a central Pennsylvania man was arrested on drunken driving charges twice in less than six hours.

Michael Hufford’s first arrest came just before 11 a.m. Sunday. Police say his car hit the back of a stopped vehicle in Manheim Township, Lancaster County.

Hufford was arrested for suspected DUI. After he was processed, he was released to his girlfriend.

Hufford was arrested again just before 4 p.m. Police say the second accident happened after he turned left in front of another vehicle.

The 50-year-old was arraigned by a magisterial district judge after the second crash. Police say he was sent to Lancaster County Prison.

YORK, Pa.

Man kills wife, toddler and then himself

A suburban York man killed his wife and 2-year-old son before committing suicide inside their home, police said Monday.

John D. Goodman, 39, did not leave a note before he shot his wife, Julia, multiple times and shot their son, Langon, early Sunday morning, said Spring Garden Township Chief George Swartz.

Swartz said investigators were still trying to determine what happened and why. He said there is no evidence that the couple was divorcing or that any protective orders were in place.

York County Coroner Barry Bloss Sr. told the York Dispatch that John Goodman may have been recently laid off from his job as a surveyor in Lancaster. Bloss also said his office would try to confirm reports that 39-year-old Julia Goodman was pregnant.

The Goodmans had lived in the neighborhood near York Hospital since 2003, and before that they lived elsewhere in Spring Garden Township.

ERIE, Pa.

Freight-train death perplexes coroner

A Pennsylvania coroner is hoping toxicology tests and more investigation will help him figure out why a man was killed by a passing freight train.

Erie County Coroner Lyell Cook says the body of 23-year-old Timothy Villa, of Erie, was found near the CSX railroad tracks in the city Sunday about 2 a.m.

Cook says the investigation indicates Villa may have left a Halloween party shortly before he was struck and killed by the train. An autopsy Sunday confirmed the man died of massive trauma.

Cook says police are trying to contact the train’s crew. Cook is waiting for toxicology tests on Villa’s body before ruling whether the death was an accident, but says it does not appear to be foul play.

Copyright: Times Leader