Posts Tagged ‘Pennsylvania’

• “Business is booming thanks to the lucrative gas drilling industry tapping into the Marcellus Shale”

• Marcellus development “enables those of us who have farms to keep our farms so they can be passed on to our families”

• “Safe and responsible gas development could provide the three counties with much-needed jobs and economic growth”

• WV small business “having a banner year in 2010”

“Marcellus Shale region creating growth of business and industry”: “With the development of the Marcellus Shale region creating growth of business and industry within Bradford County, we feel there is tremendous opportunity for this new hotel. In addition to our locations in State College and Lock Haven, it becomes our third Fairfield Inn and Suites in the region.” (Star-Gazette, 7/14/10)

Marcellus development positively impacting local businesses; WV small business “already is having a banner year”: “Assuming the landowner group agrees to $3,000 per acre, the resulting $79.2 million could have a major impact not only on landowners, but on local businesses. Karen Knight, a partner at Knights Farm Supply in Glen Easton, said her company already is having a banner year in 2010 as both property owners and the drilling companies themselves scramble to acquire heavy equipment and other items. “We have seen a big increase in tractor sales, farm equipment sales, grass seed for reseeding at the drilling sites, straw for reseeding and other items. It’s a better year than 2009 for sure,” she said. “Our counter is swamped every day with residents and representatives from the drilling companies. In fact, our parts and counter people are about done in. We’ve been extremely busy.” (News-Register, 7/18/10)

“Prosperous Plans For Bradford County”: “As gas companies tap into the Marcellus Shale in Bradford County, businesses are looking to cash in on what many now consider a booming local economy. … A once abandoned warehouse is now the home for a trucking company. A hotel — gutted for refurbishing. And a excavator sits in this empty lot ready for its next construction project. One thing is clear in Bradford County — business is booming thanks to the lucrative gas drilling industry tapping into the Marcellus Shale, as thousands of workers and their families flock to the area. “I think there are many small towns across America that would die to have a natural resource that they can sell and revitalize their economy,” said Mike Holt of Red Rose Diner in Towanda. (WBNG-TV, 7/13/10)

Marcellus Shale helping to keep family farms in tact: “Nearly 600 residents attended Wednesday’s day-long DRBC meeting to plead their clashing cases: That drilling is needed not only to produce relatively clean energy but to save economically desperate communities … Landowners like Judy Ahrens of Hanesdale, Pa., argued that they should be able to lease the mineral rights to their land. “It enables those of us who have farms to keep our farms so they can be passed on to our families so they don’t have to be split up and developed,” she said. (Associated Press, 7/15/10)

“Gas drilling not only creates local jobs, but increases the nation’s energy independence”: “Gas drilling not only creates local jobs, but increases the nation’s energy independence, pro-drillers say. “I support gas drilling,” said David Jones, as part of a three-hour public comment period with more than 250 speakers. “I also believe that the industry is being unfairly treated. This process has been delayed for too long. Let’s get the regulations out,” he said, to the jeers of most of the crowd. “We don’t need further studies. The process should move forward.” (Bucks Co. Courier Times, 7/15/10)

Responsible Marcellus development “a win win situation all around”: “Some landowners in Wayne County want natural gas drilling to start and start now. They are upset over a decision to halt drilling by a group watching out for the land and water in the Delaware River Basin. Landowners are ready for the halt on gas drilling to be lifted in Wayne County. “It will help to maintain open space and keep our forest grounds grounded and our farms farming.The influx of cash is desperately needed in the state of Pennsylvania, and particularly in the depressed areas of Wayne County, said Alliance Executive Director Marian Schweighofter. … “The effect this has had is its given us the ability to make a college fund for our family members. We think it’s a win win situation all around, most definitely for the economic ability of Wayne County,” said Schweighofter. (WNEP-TV, 7/13/10)

Marcellus production providing “much-needed jobs and economic growth”: “The bottom line is this: If natural gas drilling has economic benefits for Wayne County and can be conducted safely with people mindful about protecting our natural resource, the Delaware River, then shouldn’t we explore the possibilities? … Mary Beth Wood, WEDCO’s executive director, said it best in stating that the coalition — through pooling resources — can gather the best information available. “Safe and responsible gas development could provide the three counties with much-needed jobs and economic growth,” Wood said. (Wayne Independent Editorial, 7/14/10)

Marcellus economic “ripple effect will benefit everyone”: “The Marcellus shale gas drilling boom drew companies from across the country. More than 100 of them packed the Indiana County Fairgrounds Wednesday. The PA Gas Expo was a job fair, a networking event, and a chance for folks to find out what Marcellus shale gas drilling means in employment for thousands. County Commissioners said they have already noticed hotels and restaurants in Indiana County filling up with gas company workers. They said ripple effect will benefit everyone. “The growth element for the region will not be in just one area, but in many areas. And we need to be prepared for that,” said Rod Ruddock. (WJAC-TV, 7/14/10)

“Is this a golden era for Pennsylvania? Absolutely it is.”: “In a sour economy, the word out of Renda Broadcasting Corp.’s first Pennsylvania Gas Expo was sweet: Now hiring. Several companies at the expo, held Wednesday at the Mack Park fairgrounds, reported thatthey are in a hiring mode as they ramp up operations in the Marcellus shale fields underlying the region. The expo brought together 120 or so natural gas producers, drillers, land brokers, well-service companies, suppliers and job seekers. … “Is this a golden era for Pennsylvania? Absolutely it is,” said Rod Foreman, Vanderra’s director of growth and corporate development, speaking during a panel discussion. (Indiana Gazette, 7/15/10)

Pa. landowner on Marcellus development: “I think it’s a wonderful thing”: “The tiny farming community has struggled to strengthen its economy ever since Mosser Tanning Co. left town in 1961. … So, when a gas company comes and injects millions of dollars into a community that has seen half a century pass by since its industrial backbone collapsed, residents are more than excited. “I think it’s a wonderful thing,” Ms. Race said. “It’s got to help financially; much more taxes, much more money. “We’re going to finish paying our mortgage off.” (Times-Tribune, 7/19/10)

Homeowners getting in on Marcellus Shale benefits: “In this struggling economy homeowners have been coming forward hoping to make a big buck from Marcellus shale natural gas drilling boom. Mary Elwood and her husband own a farm in Saltburg, Indiana County. They already have three gas wells and a lease with PC Explorations. Elwood said it is a very profitable endeavor. She wants to sign a lease with another gas company for Marcellus shale drilling. “We get a nice check four times a year,” said Elwood. (WJAC-TV,7/14/10)

Filling county coffers: Marcellus “lease, permit fees good for tens of thousands of dollars”: “The governmental fees related to natural gas drilling that industry officials have been dangling as a cash carrot of sorts to local officials are starting to add up in Luzerne County. A review of county Zoning Office records revealed that just on Wednesday, the office took in $4,450 in permit fees for the construction of a natural gas metering station on property owned by Thomas Raskiewicz near Mossville and Hartman roads in Fairmount Township. … Butthe big winner among county offices to date – as far as revenue associated with natural gas drilling – is the Office of the Recorder of Deeds. (Times-Leader, 7/19/10)

Copyright: Marcelluscoalition.org

Callahan brings more than a decade of energy experience to the job, lauded by MSC chairman and president as a “key collaborator” in engaging elected officials and partners

CANONSBURG, Pa. – As Marcellus Shale employers continue to work with policymakers on a comprehensive framework for taking full advantage of the myriad opportunities that natural gas exploration make possible, the Marcellus Shale Coalition (MSC) today announced the addition of a key member to its staff who will be among those serving on the frontlines of that critical and ongoing effort.

Starting this week, David Callahan will serve as MSC’s vice president, a position dually based in Harrisburg and Canonsburg, Pa., but one that will take Mr. Callahan all across the multistate Marcellus region. A native Pennsylvanian, Mr. Callahan has 20 years of experience in the field of government relations, a majority spent representing a number of energy interests, including the Pennsylvania Gas Association (now the Energy Association of Pennsylvania) and the Associated Petroleum Industries of Pennsylvania.

“The safe and steady development of natural gas from the Marcellus Shale represents a once-in-a-lifetime opportunity for shared prosperity across the entire Marcellus,” said Kathryn Klaber, president and executive director of the MSC. “But that vision of the future that will only be realized through engagement and cooperation with policymakers and elected leaders in the region. David’s experience working collaboratively with legislators and regulators alike will serve our members well, and ultimately benefit everyone by advancing a strategy that generates jobs and revenues in the short-term, and the promise of long-term energy security and affordability beyond that.”

“The industry continues to create tens of thousands of jobs each and every year all across the multistate Marcellus region, our membership has continued to expand as well – and so has our strength and expertise,” said Ray Walker, Jr., chairman of the MSC and a senior vice-president for Range Resources. “The addition of David to the growing MSC staff represents a key step forward for this Coalition, and an important resource in our campaign to educate the public about the historic opportunities of the Marcellus, while educating policymakers on the imperative of keeping the Marcellus ahead of the competition curve in the ongoing and aggressive race for talent, equipment and investment.”

Mr. Callahan, currently a resident of Mechanicsburg, Pa., earned his undergraduate degree from Indiana University of Pennsylvania, and his master’s from Syracuse University’s Maxwell School of Citizenship and Public Affairs.

Copyright: Marcelluscoalition.org

Landowners, communities challenge Delaware River Basin Commission to explain rationale, authority behind denying opportunity of the Marcellus to Northeast PA

Translated literally from French it means “superior force,” but translated practically into American law, the term force majeure is a clause used by parties that encounter a situation so severe that it’s actually designated as an “Act of God” by the courts. Floods, famines, earthquakes, volcanoes – these are the kinds of events that trigger the rare invocation of the clause, allowing all parties involved in a contract to shield themselves of obligation in light of the extraordinary and unforeseen events that transpired after it was signed.

Actually, there’s one other event that has historically fallen under the rubric of force majeure: acts of war. Unfortunately, in the case of the West Trenton, N.J.-based Delaware River Basin Commission (DRBC), that’s precisely the action that was taken against landowners in eastern Pennsylvania last month, with the Commission instituting a de-facto, back-door moratorium on all activities within its sprawling jurisdiction even tangentially related to the development of clean-burning natural gas from the Marcellus Shale.

The upshot? This description comes from the June 30 edition of the Philadelphia Inquirer:

Of course, with potentially thousands of jobs at stake in the area – and millions of dollars in much-needed payments to landowners and state and local governments – folks who actually live and work in the Northeast PA counties affected by the DRBC promulgation aren’t exactly taking the decision lying down.

Case in point: Later today, the DRBC will hold a regularly scheduled hearing on a whole slate of issues related to regional water use and management, including a draft water withdrawal request from an energy operator in the area. Among the folks expected to attend? A busload of landowners from the Northern Wayne Property Owners Association (NWPOA), and from the information we’ve been able to glean from its website, the group is expecting a significant showing among residents in the area concerned by the implications of DRBC’s historic overreach on natural gas. To wit:

Back in June, the Marcellus Shale Coalition released an issue alert on the DRBC moratorium decision, wondering aloud if the modern-day DRBC would have let George Washington cross the Delaware without first initiating a years-long review procedure aimed at stalling the process and ultimately executing a pocket-veto of the entire enterprise. Needless to say, the denial of energy and mineral rights to landowners across the border in Pennsylvania wasn’t exactly what the creators of DRBC had in mind 50 years ago when the commission was created.

Earlier this week, the MSC expanded on its previously stated objections to the DRBC moratorium in a letter sent to Commission director Carol Collier. You see, in extending its initial ban to include a moratorium on doing even the most basic things to test the future viability of natural gas wells in the affected counties, the Commission cited “the risk to water resources” as the reason for pulling the plug on exploratory work in the area. But as MSC president and executive director Kathryn Klaber makes plain in her letter to DRBC this week, no water would be put at risk under such an approach – and very little of it will need to be withdrawn from surface areas under DRBC jurisdiction:

Of course, if DRBC’s review and approval of permits in this context is considered appropriate, then “it likewise would be appropriate for the development of a multitude of projects over which the Commission, appropriately, has not sought to assert jurisdiction, such as malls, hotels, restaurants, and residential subdivisions,” according to the letter from MSC.

So why is natural gas so different? That question, unfortunately, is not one that DRBC has answered with any degree of specificity just yet –content instead to simply assert its primacy over the matter and issue sweeping, multi-state declarations with significant implications for the clean-energy future of Pennsylvania and the economic security of those who live here. Hopefully, with the help of groups like NWPOA, the Commission will soon find itself in a position to better understand that the actions it makes from West Trenton, N.J. have real-world consequences for residents in the Commonwealth.

Copyright: Marcelluscoalition.org

Gas drilling incident in western Pennsylvania linked to firm’s corner-cutting tactics.

From staff and wire reports

HARRISBURG – Rig workers’ inexcusable failure to use a second set of pressure-control devices while preparing to connect a natural gas well to a pipeline led to the well’s blowout in western Pennsylvania last month, a consultant’s report said Tuesday.

State regulators, who hired the consultant, quickly ordered all drilling operators to adhere to a set of safety standards designed to prevent another such incident.

“I don’t know any company that would cut corners like this on this kind of well,” said consultant John Vittitow, a Texas-based petroleum engineer.

The company, Houston-based EOG Resources Inc., has used this same tactic on other wells in Pennsylvania, Vittitow said.

“I don’t think they’ll use it again,” he added.

Meanwhile, state Environmental Protection Secretary John Hanger warned that another such incident could mean the end of EOG’s business in Pennsylvania, and insisted state regulations don’t allow EOG’s tactics.

EOG and its contractor, C.C. Forbes Co. of Texas, were given maximum fines of more than $400,000 combined and ordered to take corrective actions, but were allowed to resume all activities in Pennsylvania on Tuesday after a 40-day suspension of well-finishing work.

EOG operates nearly 300 wells in Pennsylvania.

The blowout happened late June 3 on the grounds of a hunting club in Clearfield County where EOG is drilling a number of wells.

For 16 hours, explosive gas and briny wastewater shot into the air before specialists brought it under control.

Hanger insisted Tuesday that existing regulations do not allow EOG’s tactics because they require companies to obey accepted industry safety standards.

Most companies obey those, he said, but a letter sent Tuesday would lay out in detail what is expected of them.

Gary L. Smith, EOG’s vice president and general manager in Pittsburgh stated in an e-mailed that company officials “sincerely regret that the well-control issue took place.”

Since that time, Smith said, EOG has worked with the DEP to resolve all issues, will implement the new operational procedures outlined in the letter to gas well operators and looks forward to resuming activities.

Marcellus Shale Coalition president and executive director Kathryn Klaber said the new regulations DEP put forth “have already been incorporated by many of our members as part of their regular wellsite operations.”

State Rep. Phyllis Mundy, who is leading the charge for a moratorium on gas drilling in the state, said the $400,000 in fines and 40-day suspension “seems like a pittance … for what was clearly an inexcusable lack of proper procedure to care for the environment and their workers.”

Mundy, D-Kingston, said the incident “reinforces the need to hit the pause button with a moratorium. With this kind of activity, there will always be accidents.

“But with proper laws, regulations, best practice guidelines and inspections in place, we could prevent many of them and be much better prepared to deal with them when they do occur. Those things are not in place at this time, yet we continue to issue new permits. We are simply not prepared to either prevent or react to these incidents.”

Hanger said his agency would redouble its inspection activity with more emphasis on well-finishing work.

Copyright: Times Leader

HARRISBURG – Untrained personnel and the failure to use proper well control procedures were the principal causes of a June 3 natural gas well blowout in Clearfield County, according to an independent investigation that was released today by the state Department of Environmental Protection.

DEP Secretary John Hanger said the blowout, which allowed natural gas and wastewater to escape from the well uncontrollably for 16 hours, was the result of failures by the well’s operator, EOG Resources. The company and its contractor, C.C. Forbes LLC, lost control of the well while performing post-fracturing well cleanout activities.

“The blowout in Clearfield County was caused by EOG Resources and its failure to have proper barriers in place. This incident was preventable and should never have occurred,” said Hanger, who added that EOG Resources has been ordered to take nine corrective actions; C.C. Forbes ordered to take six corrective actions and both companies were fined more than $400,000, collectively.

An EOG representative said the company would issue a press release in response to DEP’s announcement later today.

Following a 40-day suspension of operations in Pennsylvania, EOG Resources and C.C. Forbes were permitted to resume all well completion activities. EOG Resources, formerly known as Enron Oil & Gas Co., operates approximately 297 active wells in Pennsylvania, 139 of which are in the Marcellus Shale formation.

The report was compiled by John Vittitow, whom DEP hired to conduct a thorough and independent investigation into all aspects of EOG’s drilling operation based on his respected reputation in the industry as an experienced petroleum engineer. The investigation was conducted alongside, but independently of, DEP’s investigation.

“Make no mistake, this could have been a catastrophic incident,” Hanger said. “Had the gas blowing out of this well ignited, the human cost would have been tragic, and had an explosion allowed this well to discharge wastewater for days or weeks, the environmental damage would have been significant.”

In light of the investigation’s findings, Hanger said his agency has written each company drilling into the Marcellus Shale to ensure they understand proper well construction and emergency notification procedures. The letter stated that:

• A snubbing unit, which prevents pipes from ejecting uncontrollably from a well, may be used to clean out the composite frac plugs and sand during post-fracturing (post-frac) if coil tubing is not an option.

• A minimum of two pressure barriers should be in place during all post-frac cleanout operations.

• Any blowout preventer equipment should be tested immediately after its installation and before its use. Records of these tests should be kept on file at the well site or with the well site supervisor.

• A sign with DEP’s 24-hour emergency telephone number and local emergency response numbers, including 911 and the county communications center, should be posted prominently at each well site.

• At least one well site supervisor who has a current well control certification from a recognized institution should be on location during post-frac cleanout operations. These certifications should be in possession at all times.

• A remote-controlled, independently powered blowout preventer unit, which allows workers to control what’s happening on the rig at a safe distance, must be located a minimum of 100 feet from the well and operational during all post-frac cleanout operations.

The fines assessed to EOG Resources and C.C. Forbes—for $353,400 and $46,600, respectively—will cover the cost of DEP’s response to the incident and the investigation. In addition to the financial penalties, DEP ordered EOG Resources to implement practices and take nine corrective actions to avoid a repeat of this incident. C.C. Forbes was ordered to implement similar practices and to take six corrective actions.

Copyright: Times Leader

CANONSBURG, Pa. – Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement today after reviewing the letter sent to all Marcellus operators by the Department of Environmental Protection (DEP) as a follow-up to the agency’s investigation of a mechanical wellsite incident in Clearfield County last month:

“Today’s letter from DEP puts forth a series of new regulations that have already been incorporated by many of our members as part of their regular wellsite operations. Our industry is committed to continuously enhancing and improving our operations, and leveraging the opportunities of the Marcellus in a manner that’s safe, efficient and beneficial to all Pennsylvanians.”

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

It is up to the state whether to approve or deny the request to seek natural gas.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

PLAINS TWP. – A second energy company has plans to drill a natural gas well in Luzerne County – this one behind the East Mountain Business Park in Plains Township on property owned by Theta Land Corp.

Rice Drilling, a subsidiary of Washington County-based Rice Energy, filed an application for a permit to drill and operate a well in the northeast corner of the township with the state Department of Environmental Protection on June 24, according to the department’s online database.

The department has 45 days from receipt to either approve or deny the application.

Encana Oil & Gas is set to begin drilling two wells in Fairmount and Lake townships this summer and has drilling permits for two other sites in Lake and Lehman townships.

According to a DEP well locator map, the proposed well site in Plains Township would be just west of Deep Hollow Pond, a little more than 1,000 feet from Baltimore Drive and less than a mile south of Jumper Road.

Freda Tarbell, DEP’s community relations coordinator for the Northwest Region, said the staffer handling the application was unavailable on Thursday, so specifics on the site, such as acreage and distance from water sources, were unavailable.

A secretary with Rice said no company representative was available to provide information on Thursday.

The permit application is somewhat unusual, given that energy companies normally lease gas rights from land owners before applying for drilling permits. However, no lease for the land had been filed with the Luzerne County Recorder of Deeds.

Theta Land Corp. is a subsidiary of Southern Union Co. – one of the nation’s largest suppliers of natural gas – and has been linked to billionaire Louis DeNaples of Dunmore.

Environmentalists criticized DeNaples in 2000 in connection with the purchase of 44,000 acres of land – some of it environmentally sensitive – owned by Theta. He had long been thought to be the buyer, but a confidentiality clause in the sales agreement kept the buyer’s identity secret.

However, DeNaples’ role was confirmed by a Dauphin County grand jury, which determined that a company controlled by DeNaples had purchased Theta. DeNaples in 2008 had been charged with perjury for allegedly lying to state Gaming Control Board investigators about alleged ties to organized crime members. Prosecutors withdrew the charge after he transferred ownership of Mount Airy Casino Resort in Monroe County to a trust.

Plains Township Secretary Kathy O’Boyle said no application for drilling has been submitted to the municipality. She said most of the land behind the business park is zoned as a conservation district and extraction of natural resources would be considered a conditional use. The driller would have to appear before the planning commission and the township board of commissioners for approval, and that process could take about a month, she said.

Reacting to news of the drilling permit application, state Rep. Eddie Day Pashinski, D-Wilkes-Barre, said he’s “in favor of economic development and job growth,” but he supports a temporary moratorium on gas drilling in Pennsylvania “until safeguards are in place.”

“There needs to be regulations in place, enough inspectors on the ground, enough state police to monitor and check vehicles and proper water treatment facilities to protect drinking water sources,” Pashinski said.

“We were all very excited when we learned this new industry was coming to Northeastern Pennsylvania. &hellip Their initial presentations were very encouraging. But in light of what happened in Dimock and Clearfield County, I am supporting a temporary moratorium,” he said.

Natural gas migrated from well bores in Dimock, Susquehanna County, contaminating some drinking water wells last year.

A blowout at a well in Clearfield County in June shot explosive gas and polluted water 75 feet into the air before crews tamed it 16 hours later.

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

Copyright: Times Leader

It is up to the state whether to approve or deny the request to seek natural gas.

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer

PLAINS TWP. – A second energy company has plans to drill a natural gas well in Luzerne County – this one behind the East Mountain Business Park in Plains Township on property owned by Theta Land Corp.

Rice Drilling, a subsidiary of Washington County-based Rice Energy, filed an application for a permit to drill and operate a well in the northeast corner of the township with the state Department of Environmental Protection on June 24, according to the department’s online database.

The department has 45 days from receipt to either approve or deny the application.

Encana Oil & Gas is set to begin drilling two wells in Fairmount and Lake townships this summer and has drilling permits for two other sites in Lake and Lehman townships.

According to a DEP well locator map, the proposed well site in Plains Township would be just west of Deep Hollow Pond, a little more than 1,000 feet from Baltimore Drive and less than a mile south of Jumper Road.

Freda Tarbell, DEP’s community relations coordinator for the Northwest Region, said the staffer handling the application was unavailable on Thursday, so specifics on the site, such as acreage and distance from water sources, were unavailable.

A secretary with Rice said no company representative was available to provide information on Thursday.

The permit application is somewhat unusual, given that energy companies normally lease gas rights from land owners before applying for drilling permits. However, no lease for the land had been filed with the Luzerne County Recorder of Deeds.

Theta Land Corp. is a subsidiary of Southern Union Co. – one of the nation’s largest suppliers of natural gas – and has been linked to billionaire Louis DeNaples of Dunmore.

Environmentalists criticized DeNaples in 2000 in connection with the purchase of 44,000 acres of land – some of it environmentally sensitive – owned by Theta. He had long been thought to be the buyer, but a confidentiality clause in the sales agreement kept the buyer’s identity secret.

However, DeNaples’ role was confirmed by a Dauphin County grand jury, which determined that a company controlled by DeNaples had purchased Theta. DeNaples in 2008 had been charged with perjury for allegedly lying to state Gaming Control Board investigators about alleged ties to organized crime members. Prosecutors withdrew the charge after he transferred ownership of Mount Airy Casino Resort in Monroe County to a trust.

Plains Township Secretary Kathy O’Boyle said no application for drilling has been submitted to the municipality. She said most of the land behind the business park is zoned as a conservation district and extraction of natural resources would be considered a conditional use. The driller would have to appear before the planning commission and the township board of commissioners for approval, and that process could take about a month, she said.

Reacting to news of the drilling permit application, state Rep. Eddie Day Pashinski, D-Wilkes-Barre, said he’s “in favor of economic development and job growth,” but he supports a temporary moratorium on gas drilling in Pennsylvania “until safeguards are in place.”

“There needs to be regulations in place, enough inspectors on the ground, enough state police to monitor and check vehicles and proper water treatment facilities to protect drinking water sources,” Pashinski said.

“We were all very excited when we learned this new industry was coming to Northeastern Pennsylvania. … Their initial presentations were very encouraging. But in light of what happened in Dimock and Clearfield County, I am supporting a temporary moratorium,” he said.

Natural gas migrated from well bores in Dimock, Susquehanna County, contaminating some drinking water wells last year.

A blowout at a well in Clearfield County in June shot explosive gas and polluted water 75 feet into the air before crews tamed it 16 hours later.

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

View article here.

Copyright:  Times Leader

• 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)