Posts Tagged ‘oil’

This 180-hour course takes a participant through the process of obtaining a Class “A” Commercial Driver’s License (CDL). The course will focus upon typical on-road CDL training and include additional training in skills necessary for success in the oil and natural gas industry. Skills such as operating skills on lease roads, high center of gravity loads, and close quarter maneuvering will be studied and practiced. This training is already utilized by many of the leading oil and gas service companies for their current employees.

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer

FAIRMOUNT TWP. – Having drilled 8,100 feet straight down into the earth beneath the Buda 1H Well Pad, Encana Oil & Gas is now preparing to begin the horizontal leg of the first Marcellus Shale natural gas well in Luzerne County.

Company officials on Thursday provided a tour of the well pad off state Route 118, out behind Ricketts Glen Hotel, explaining various parts of the drilling operations and noting extra safety measures employed, given the proximity to wetlands.

As an automatic pipe handler lifted 40-foot sections of drill pipe, each weighing about 650 pounds, from a storage area on the ground onto the drill rig, Encana operations engineer Joel Fox explained the purpose of some of the equipment used on-site.

“This is one of the modern rigs with an automated pipe handler. … In the old days, you had roughnecks out there handling that pipe, two or three guys muscling around, fighting that pipe. This system’s a lot safer,” Fox said.

Joining Fox were Encana operations engineer Ashley Lantz and environmental health and safety coordinator Jarrett Toms.

Toms said there have been no health or safety related issues on-site since the drilling began last month.

Fox showed some large steel pipe, called casing, stored there. Surface casing is run down into the well bore about 425 feet and is “what provides the protection of your fresh-water aquifers. That’s been run already and cemented,” he said.

He also showed intermediate casing, which is run down to 2,150 feet. The intermediate casing is cemented inside the surface casing, and cement is also pumped around the exterior pipe to prevent gas from seeping up the outside of the casing and into ground water.

A third string of steel casing – production casing – will be run into the total depth of the well after horizontal drilling is complete. The horizontal drilling begins by drilling a curved path from a vertical well bore to 90 degrees over a 900-foot span.

“The pipe is pretty flexible. It’s stiff and strong, but it will bend,” Fox explained.

During drilling, rock and drill bit cuttings must be removed from the well bore.

Fox pointed out pallets full of bags of chemicals that are mixed with synthetic food-grade drilling oil to make the drilling mud.

“It looks and feels like baby oil,” he said. Emulsifiers are added to the oil and water to make the mud viscous so it will carry the drill cuttings to the surface of the well for removal.

When drill cuttings come up, they’re cleaned, mixed with sawdust, stored in covered containers until tested by the state Department of Environmental Protection and then hauled off to a landfill.

Fox also noted there is no reserve pit to hold the cuttings at the Buda site.

“This is an entirely closed system. In other words, there are no open pits that you hear people talk about a lot in the newspaper. All fluids are contained in tanks; drill cuttings, fluid is all in tanks,” Fox said.

“We consulted with DEP, and because we’re in a wetlands area, a closed system made a lot of sense,” Fox said, even though a closed system is more expensive to operate than using a reserve pit.

It also made sense to use a closed system at the site because the water table is high in the area, so a pit could not be dug very deep, he said.

To protect the ground from potential spills of any fluids on-site, the part of the well pad under and around the drill rig and all of the tanks and equipment is covered with liners hung over berms that look like barricades, Fox explained.

“We call these duck ponds. If something gets spilled, it stays in there. And we have what looks like a large Shop-Vac device. So as soon as any fluid or rainwater gets on that liner, we can suck it up like a Shop-Vac in your basement,” he said.

Fox also pointed out four monitoring wells the company drilled at strategic locations between the site and Ricketts Glen Hotel, which has the nearest water well.

Also on-site are five trailers for office space and to house some staff. There are five people with the drilling contractor – Horizontal Well Drillers – plus two to five Encana employees, drilling specialists and contractors on-site at all times.

It should take 10 days to two weeks to drill the 3,500- to 4,000-foot horizontal leg of the well, also called the lateral, in a southeast direction. The company uses computerized equipment near the drill bit to make sure the well bore is going exactly in the direction the engineers want it to, Fox said.

“It’s like a GPS on the (drill) bit,” he said.

View article here.

Copyright:  The Times Leader

BY DENISE ALLABAUGH (STAFF WRITER)
Published: August 26, 2010

WILKES-BARRE – Encana Oil & Gas continues its quest for natural gas.

The company remains in an exploratory mode as it drills two natural gas wells in Fairmount and Lake townships, said company Vice President Don McClure.

“It’s very dependent on what we find in those two wells as to what our next steps are going to be,” Mr. McClure said.

Mr. McClure and Brian Grove, senior director of corporate development for Chesapeake Energy Corp.’s Eastern Division, spoke about the impacts of drilling natural gas wells to more than 100 business leaders who attended the Greater Wilkes-Barre Chamber of Commerce’s CEO-to-CEO networking breakfast Wednesday at the Westmoreland Club.

Earlier this month, the Luzerne County Zoning Hearing Board granted Encana Oil & Gas conditional use to drill 10 more wells in Fairmount and Lake townships. Mr. McClure says the company is “being very conservative” with the drilling process.

“We’re only going to drill a couple wells and we’ll evaluate what they’re going to produce,” Mr. McClure said.

The company drills wells simultaneously to be efficient and reduce community impact, Mr. McClure said. The potential for water pollution are among the concerns arising from the increased drilling. Yet, Mr. McClure said he sees natural-gas drilling as a “tremendous opportunity” that could reduce dependence on Middle East oil from about 44 percent to 10 percent by increasing natural gas production.

“That’s substantial,” Mr. McClure said. “That’s the kind of impact that Marcellus Shale can have.”

Showing the company’s track record in the United States and Canada on a slide presentation, Mr. McClure said the company takes safety of people and the environment very seriously. As the second largest natural gas producer in North America, he said Encana’s goal is not to be the biggest but the “best we can possibly be.”

“We’re always pursuing a higher safety standard,” he said.

Both Mr. McClure and Mr. Grove touted benefits of natural gas drilling, which they said will be an economic development engine for job growth.

When asked how many jobs could be created as a result of Marcellus Shale, Mr. McClure said studies show for every one percent increase in natural gas production across North America, that correlates to 20,000 to 30,000 jobs.

More than 350,000 oil and gas wells have been drilled in Pennsylvania since the first commercial oil well was developed in 1859, according to the state Department of Environmental Protection.

When asked what the biggest misconception of drilling is, Mr. Grove was quick to respond, “Hydraulic fracturing.” Fears about hydraulic fracturing, or the process used in wells that results in fractures in rocks, have been driven by a “lack of knowledge,” he said.

Contact the writer: dallabaugh@citizensvoice.com

View article here.

Copyright:  The Scranton Times

This 180-hour course takes a participant through the process of obtaining a Class “A” Commercial Driver’s License (CDL). The course will focus upon typical on-road CDL training and include additional training in skills necessary for success in the oil and natural gas industry. Skills such as operating skills on lease roads, high center of gravity loads, and close quarter maneuvering will be studied and practiced. This training is already utilized by many of the leading oil and gas service companies for their current employees.

Canonsburg, Pa. – Earlier today, an explosion at a shallow, non-Marcellus Shale oil well occurred in Indiana Twp., Allegheny County, claiming the lives of two workers, according to reports. Although the Marcellus Shale Coalition (MSC) represents companies producing natural gas, the MSC issued the following statement expressing condolences, and reinforcing its commitment to operating in the safest and most environmentally sensitive manner possible:

“Our Coalition may not represent this particular company or these particular workers, but the events that took place today represent an absolute tragedy for everyone involved in producing energy here in Pennsylvania. Our deepest sympathies and condolences go out to the families who lost loves ones today.

“What happened in Indiana Twp. today reminds us all how critically important it is to value the health and safety of your workforce. That’s why our member companies and their contractors continue to work day-in and day-out to ensure those protections and safeguards are in place, and are constantly improved and strengthened, as new technology and insight becomes available. These are investments we will continue to make, part of an industry-wide effort to implement a series of best management practices aimed at ensuring that clean-burning energy resources from the Marcellus are developed the right way, and in a manner that protects our workers and the environment above all else.”

Copyright: Marcelluscoalition.org

Study says millions of PA residents relying on private water wells that may contain contaminants – none of which are related to the Marcellus Shale

Nearly 20,000 new wells are drilled in Pennsylvania every year. And among these, not a single one of them has anything to do with oil or natural gas.

Instead, these wells are drilled for the purpose of accessing underground sources of water. In Pennsylvania, more than three million residents rely on private wells for essential sources of potable water – second most in the entire nation behind Michigan. So lots of wells must mean lots of good, high-quality drinking water, right? Not according to a report issued last year by researchers from Penn State.

The study, available here and commissioned by the Center for Rural Pennsylvania, was conducted over two years and drew on samples from more than 700 individual private water wells installed all across the state. What did the researchers find? For starters, a full 40 percent of tested wells failed to meet the state’s drinking water standards for safety. Keep in mind that Pennsylvania supports more than 1 million private water wells – which means it’s possible that more than 400,000 water wells, serving roughly 700,000 residents, are of a quality and nature of potential concern. And the worst thing about it? According to the survey, very few of these well owners even knew they had a problem.

With more than 1,300 Marcellus wells developed in Pennsylvania this year, it’s become a popular thing to assume that wells drilled for the purpose of tapping enormous and clean-burning reserves of natural gas 5,000 to 9,000 feet below the water table are having a deleterious impact on underground drinking water. The alleged culprit? A commonly deployed well stimulation technology known as hydraulic fracturing, a technique that’s been used more than a million times over the past 60 years not just for oil and natural gas, but forgeothermal production and even by EPA for Superfund clean-ups.

But as mentioned, the report on private water wells from Penn State was issued in 2009, roughly 50 years removed from the first-ever application of fracturing technology in the Commonwealth — and five years after the fracturing of the first-ever Marcellus Shale well. In other words, hydraulic fracturing has been around an awful long time in Pennsylvania, and so has the development of oil (1859) and natural gas (1881). So if the critics are right, those activities must have been identified by researchers as the greatest threats to the state’s underground water resources, right?

Take a look for yourself:

Of the 28 variables measured for each well, the results demonstrated that natural variables, such as the type of bedrock geology where the well was drilled, were important in explaining the occurrence of most pollutants in wells. Soil moisture conditions at the time of sampling were the single most important variable in explaining the occurrence of bacteria in private wells. … Inadequate well construction was strongly correlated with the occurrence of both coliform and E. coli bacteria in wells.

That’s right – we forgot to mention the fecal coliform (exactly what you think it is) and E. coli bacteria. According to the report, it turns out that 33 percent of private water wells in PA were found to be contaminated with the coliform, while a staggering 14 percent tested positive for E. coli. Another contaminant of concern is naturally occurring arsenic. Two percent of tested wells had increased levels of that, which potentially translates into 20,000 water wells across the state. According to the report, arsenic “most often occur[s] naturally from certain types of rocks but it can also come from treated lumber and pesticides.” Incidentally, Pennsylvania is among the only states in the nation without regulations governing the construction of private water wells or the periodic testing of the quality of water that comes from them.

This presentation prepared by the U.S. Geological Survey will take a minute or two to load, but take a look at slide 23 if you get the chance. Turns out Pennsylvania’s water wells are among the only ones in the nation with “high contaminant concentrations” for every one of the Big 3: arsenic, nitrates and radon. Again: Nothing in the report remotely related to Marcellus Shale activities. But don’t take our word for it – ask DEP (by way of Scott Perry, director of DEP’s Bureau of Oil and Gas Management):

“If there was fracturing of the producing formations that was having a direct communication with groundwater, the first thing you would notice is the salt content in the drinking water. It’s never happened. After a million times across the country, no one’s ever documented drinking water wells that have actually been shown to be impacted by fracking.”

Protecting underground sources of drinking water is and will always be our top priority – after all, we live here too. But if we expect the quality of our water to improve, first we’ll need to be honest about how it got where it is today, and then we’ll need to get serious about what needs to be done to improve it. That, we think, is what you’d do if you genuinely cared about the state and status of Pennsylvania’s private water wells. Unfortunately, too many folks seem all too willing to blame the entire phenomenon on the development of the Marcellus Shale – irrespective of the science, and blind to the history of the past 60 years.

Copyright: Marcelluscoalition.org

• MSC President Kathryn Klaber: “[W]e need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface
  
• [Severance] tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry.

Shale Coalition Wants “Fair Tax” & Modernized Rules. Marcellus Shale Coalition President Kathryn Klaber says the fiscal code language about the severance tax proposal includes a commitment by elected leaders to conduct a comprehensive evaluation of “how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.” Klaber called on state lawmakers not to look at the severance tax in a vacuum, that there is more at stake than putting a little extra money in state coffers…..”we need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface.” (WDUQ Radio, 7/7/10)

Pennsylvania needs to stay “ahead of the curve in terms of investment”: “The Marcellus Shale is not the only shale play that is under development in the United States, said Kathryn Klaber, president and executive director the Marcellus Shale Coalition.”There is a lot of competition for dollars” to develop gas wells, she said. Pennsylvania needs to stay “ahead of the curve in terms of investment” in gas drilling, Klaber said in a conference call with reporters on Tuesday. (Towanda Daily Review, 7/7/10)

Marcellus Shale represent[s] a tremendous opportunity: “The rich natural gas deposits in the Marcellus Shale represent a tremendous opportunity in the form of new jobs and economic stimulus to mostly rural communities across the commonwealth,” said Governor Rendell. “We have a responsibility to ensure that the economic benefits are balanced with the need to protect the local environment and the residents of communities where the work is being done.” (Pocono News, 7/7/10)

Gas rush has generated a frenzy: In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. The gas rush has generated a frenzy in the region over the past two years. In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. (New York Times, 7/7/10)

Comprehensive Evaluation of State Natural Gas Laws Needed: Now that the legislature has agreed in principle on the tax, energy industry leaders are hoping to influence the debate on the tax and regulation in coming months. The Marcellus Shale Coalition, an industry group, said on Tuesday the tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry. Klaber argued that a “fair tax strategy,” coupled with laws and regulations that recognize the industry’s recent technological gains, would allow Pennsylvania to compete for new investment in the booming industry. (Reuters, 7/7/10)

For Mom, it’s just overwhelming: On a farm north of this old timber town that stretches out along the banks of the Susquehanna River, Perry Landon’s 82-year-old mother confronts the promises and trepidation of a new era of energy wealth. “For Mom, it’s just overwhelming,” Landon says. “She grew up in the Depression. Her parents were very poor. It’s hard for her to get her mind around this amount of money, and that you would get it for doing nothing.” Gas is testing oil’s position as the most sought-after energy commodity, as the global hunt for black gold faces technological limits, environmental risk and relentless political instability in oil-rich regions. (New York Times, 7/7/10)

Fair Pooling protects the environment, reduces environmental footprints, and generates more revenue for environmental programs – so why do environmentalists oppose it?

CANONSBURG – When is an environmentalist not an environmentalist? How about when he sends a letter to lawmakers in Harrisburg demanding they reject a proposal that would result in greater efficiency in developing clean-burning natural gas from the Marcellus, far less disturbance to land while doing it, and millions in revenue for state programs to protect and preserve the environment?

Unfortunately, that’s precisely the letter that members of the General Assembly received this week – sent by a coalition of more than 30 groups that claim to support all the things that a Fair Pooling statute in Pennsylvania would make possible (smaller footprints and more revenue, especially), but nonetheless stand in opposition to the adoption of the actual plan.

Of course, virtually every energy-producing state in America has fair pooling protection on the books – and for good reason. Fair pooling allows for “equitable and efficient development of [natural gas] while preventing the drilling of unnecessary wells,” according to Michigan’s Department of Environmental Quality – “at the same time, it protects an owner from having his or her oil and gas drained without compensation.”

The Harvard Law Review agrees: “Pooling is important in the prevention of drilling of unnecessary and uneconomic wells, which will usually result in physical and economic waste.” That line comes from an article on efforts to conserve oil and natural gas published in the Review back in 1952.

So if these environmental groups can’t defend their opposition to Fair Pooling onenvironmental grounds, what arguments do they use instead? See below a quick side-by-side of the charges leveled by these groups’ compared with the actual facts of what Fair Pooling is, and what it is not.

Chief to offer “substantial” cash, says solicitor, who wants to see land involved, right-of-way agreement.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

and Rebecca Briarbria@timesleader.com
Staff Writer

DALLAS TWP. – An oil and natural gas company has asked township officials if it can lay pipeline underneath township property in return for money.

Two officials from Chief Oil and Gas attended the supervisors meeting Tuesday evening in search of an answer as to whether they can lay pipeline under a parcel of township-owned land.

Supervisor Glenn Howell said the land is along a gravel road off the Old Tunkhannock Highway. The gravel road leads to a Little League field and some other things, he said.

Township solicitor Thomas Brennan confirmed the company is offering “a substantial amount” of money to the township to lay the pipeline, though Brennan would not disclose the amount.

Brennan said there is no question about the legality of allowing the company to lay the pipe underneath township land. However, he said he first wants to take a look at the land to know what is involved.

The officials from the company also are wondering what they would have to do if they wanted to lay pipe under or along the township’s right-of-way. They said more than 20 miles of pipeline is planned coming from the north and terminating east of Dallas High School.

Brennan asked if the officials could provide a copy of the agreement they have with the Pennsylvania Department of Transportation regarding their right-of-way usage. Brennan told the officials that he would have more information for them at the next supervisors meeting on July 6.

Earlier on Tuesday, township Zoning Officer Len Kozick said he’s heard from property owners in the township that they are being offered right-of-way agreements as well. And at least one agreement has already been signed.

According to Luzerne County property records, Leonard DeLeur, who owns Back to Basics – a fireplace and stove shop in Dallas – leased a 50-foot right-of-way along the edge of his 24-acre property in the township.

DeLeur said Chief offered him $20 per foot of pipeline laid on his property.

Kristi Gittins, vice president, Chief Oil & Gas, said a definite path has not been chosen for a pipeline, and one won’t be chosen until wells are drilled. She said no imminent drilling is planned for Luzerne County; the company’s next two wells will be drilled in Sullivan and Wyoming counties.

Josh Longmore, director of the Luzerne Conservation District, confirmed that drilling is slated to begin on his father’s land in Monroe Township, Wyoming County, in mid-July. His father, Robert Longmore, has a lease allowing Chief to drill on his 97-acre farm near Noxen Township.

Chief, which has 75 wells drilled in 10 counties, has wells in Lycoming, Bradford and Susquehanna counties that are producing gas, but there’s currently no way to get it to market. Gittins said gas is going to market from only about half of Chief’s wells in the Northeast because it takes a while to build a pipeline infrastructure where none previously existed.

Gittins said it costs about $1 million a mile to lay pipeline. And lease holders don’t see any royalty money until the gas gets to market.

Gittins said that Chief is selectively seeking leases in Luzerne County, but only in the area of currently leased land, she said. The company has leased a few properties in Fairmount Township. The Dallas, Texas-based company has 650,000 acres leased in Pennsylvania and West Virginia, she said.

In other business, supervisors awarded a bid for a paving and drainage project on Main and Campground roads to Popple Construction, the lowest bidder, at $147,530 for Main Road and $56,642.33 for Campground Road.

Supervisors Vice Chairman Frank Wagner previously said the project will consist of paving Main Road from the Kingston Township line to Route 309, as well as all of Campground Road.

Also, George Stolarick, who said he has lived on Ridge Street for the past 45 years, asked the supervisors to consider paving his road. Stolarick said that although there are only three houses on his road, eight families use the road to access their homes.

But, Supervisors Chairman Phil Walter said “it’s not in the cards right now.”

Rebecca Bria, a Times Leader staff writer, may be reached at 970-7436. Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

By Patrick Sweet (Staff Writer)
Published: June 15, 2010

NOXEN – Chief Oil and Gas may begin construction on a natural gas well just a few miles north of the border between Luzerne and Wyoming counties as soon as the second week of July.

Off Route 29 in Noxen, short stakes mark the future location of the drilling pad on Robert Longmore’s 97-acre farm. The state Department of Environmental Protection is currently reviewing the Texas-based gas company’s permit to place and operate a well it filed May 11.

The farm is near properties that are part of the Noxen Area Gas Group, a body of roughly 150 families with a combined 8,500 acres which is in the midst of negotiating a lease with Houston, Texas-based Carrizo Oil and Gas.

Just down the road from Longmore, Noxen group organizer Joel Field verified that the group is in the final stages of negotiation with Carrizo. Field and co-organizer Harry Traver declined further comment due to the sensitivity of the negotiations.

“Until things are settled down, they’d rather not give any statements,” Harry Traver’s wife, Dawn Traver, said Monday.

Longmore, 56, has owned the farm since 1998 and signed a lease with Chief roughly four and a half years ago. The landmen who approached Longmore about the deal, he said, made the three-page lease giving his family $25 per acre with the minimum 12.5 percent royalty sound like a good deal.

“We were kind of taken advantage of four and a half years ago,” Longmore said. “I know people getting $6,000 an acre.”

The lease had almost no provisions protecting Longmore’s farm. At the time, the landmen made it seem unlikely that drilling would ever commence during the terms of his lease, which ends May 15, 2011.

Chief Oil and Gas media contact Ben McCue attempted to reach operations employees for comment Monday afternoon but they were unavailable by press time.

Since Longmore signed, though, he said his experience with the company has been much more positive.

Earlier this year, the Longmores were given the opportunity to amend the lease.

“They proposed some amendments to the lease,” Longmore said, “so we countered with some amendments with some environmental stuff.”

Chief offered to reopen the terms of the lease in order to add protections for the company in anticipation of a Pennsylvania Supreme Court decision that could have invalidated thousands of gas leases where gas companies were deducting production costs from the state minimum royalty.

The opinion on the case was an interpretation of the Pennsylvania’s Minimum Royalty Act which establishes the 12.5 percent royalty requirement for all oil or natural gas recovered from a well but doesn’t stipulate when to calculate the royalty.

The court ultimately decided in favor of the gas companies roughly a week after the Longmores and Chief finalized the revised lease.

The Longmores added amendments that protected ground and surface water, along with the 0.25-mile stretch of Bowmans Creek that runs through the property.

Longmore’s son, Josh Longmore, manages the Luzerne County Conservation District and helped his father amend the lease.

“Unfortunately, they signed a very basic lease that didn’t have some of the protections that the newer leases have,” Josh Longmore said. “Our biggest goal, our biggest hope is that the property maintains its natural beauty, its agricultural purpose.”

The younger Longmore doesn’t have any stake in his parents’ farm, but felt that it was necessary to help. He and his father combed through leases that they found online and pulled out the clauses that fit their needs.

“There was like three or four different categories of amendments,” Longmore said.

Chief accepted 90 percent of their roughly 20 amendments, Longmore said.

The company did draw the line on an amendment that would have prohibited the company from disposing cuttings – the rock equivalent to sawdust – on the pad. The company argued it would be cost-prohibitive to haul it off-site, Longmore said.

“I really got the impression that they weren’t hiding anything from us,” Longmore said. “They were willing to answer every question we had.”

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Copyright: The Citizens Voice