Posts Tagged ‘Pennsylvania’

All Wet on Fair Pooling

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.

Activists search for reasons to oppose Fair Pooling … … Even though Fair Pooling is a clear win for PA’s environment and landowners
“[P]ooling … would force property owners in Pennsylvania to lease their mineral rights to a gas company…”

(Letter from Myron Arnowitt to General Assembly, PA Campaign for Clean Water; co-signed by 30 others; June 29, 2010)

Fair pooling isn’t about forcing anyone to do anything. It’s about creating an equitable system that allows private landowners to exercise their private mineral rights for the benefit of themselves and their families.

Landowners who decide not to lease will not be considered leasees, nor will they see a rig on their property or an inch of their land disturbed. The only thing they will see? A check in their mailbox each month.

“Some landowners have decided they do not want to lease their mineral rights … The oil and gas industry would like the General Assembly to overturn the landowners’ decisions.” (letter) Once again, they have it exactly backwards. Landowners who don’t want to lease their land for Marcellus development will not be forced to lease their land under Fair Pooling. But they also won’t be allowed to deny their neighbors that same choice.

Click Here for MSC’s fact sheet on Fair Pooling.

“It has been argued that … pooling would result in a less disruptive and more environmentally protective approach to drilling for natural gas in the Marcellus Shale. However, there is no evidence that … pooling diminishes environmental impact. … [P]ooling should not result in forced pollution.” (letter) No evidence?

The principle of Fair Pooling as a tool of oil and gas conservation and environmental protection is as old the development of energy itself – and “a vital regulatory tool created to conserve oil and gas, protect correlative rights and prevent waste,” according toTexas Tech University (in case you don’t believe theHarvard Law Review or the state of Michigan).

“[Pooling] essentially extends the concept of eminent domain but instead of using private property for the public good, it takes private property for private gain.” (letter)

Copyright: Marcelluscoalition.org

For the small minority of landowners who have not leased, conservation pooling ensures two important outcomes: (1) a fair share of royalties (whereas, under current law, gas can be extracted from under their property without any compensation); and, (2) a guarantee of no surface interference (i.e., no drill, no pipelines, no roads, etc.).

MSC: Budget Agreement a Win for PA’s Economy, Environment

Marcellus producers express commitment to working with lawmakers on comprehensive tax, regulatory and legislative plan for the future

CANONSBURG, Pa. – Earlier today, Gov. Ed Rendell signed a budget plan for 2010-2011 that recognizes the critical contributions that natural gas producers are making in Pennsylvania. The new budget, the product of months of hard work by members of the General Assembly, does not include new taxes on Marcellus Shale employers – but does include a commitment by our 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.

Subsequent to the governor’s signing today, Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement in strong support of the plan:

“Today’s announcement represents a positive step forward. The MSC has said from the start that it was going to take more than hard work and favorable geology to leverage the once-in-a-lifetime opportunity of the Marcellus into jobs, revenue and long-term energy affordability for all Pennsylvanians.

“To do this, and do it right, 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. Today, Pennsylvania announced its intention to compete for these opportunities. And we are pleased to have played a role in working with the legislature to get this process started on the right path.

“MSC members will continue to be key participants in this iterative, ongoing process, working alongside the General Assembly, the Administration and stakeholders across the Commonwealth to put our state in the best possible position to seize on the extraordinary opportunities of the Marcellus. And when it comes to that objective, there’s nothing more important than having a tax, regulatory and legislative framework in place that’s collaborative in its approach, and comprehensive in its design. Today’s agreement moves us one step closer toward the realization of such a plan.”

NOTE: As reported last week in the Towanda Daily Review, Bradford County currently ranks among the top job-producing counties in the state – a surge in employment that’s directly tied to the responsible development of the Marcellus Shale in the area. All told, Bradford Co. added more than 2,000 workers to the job rolls over the past 12 months, even as more than 60 other counties in Pennsylvania experienced a loss in jobs over that time.

Copyright: Marcelluscoalition.org

Onorato wants drilling to go on, but with care

WILKES-BARRE – Democratic gubernatorial nominee Dan Onorato said Thursday he doesn’t support a moratorium on drilling in the Marcellus Shale region, but he does want to see the gas industry grow in “a responsible way.”

“I will grant permits,” Onorato said. “But I want these companies to hire Pennsylvanians. I don’t want to see a bunch of Oklahoma and Texas license plates here.”

Onorato visited the Scranton Chamber of Commerce to speak to members and young professionals of POWER Scranton to discuss the opportunities for economic growth in Scranton.

“Northeast Pennsylvania is in a unique situation to benefit from great economic growth,” he said. “The combination of location, resources and infrastructure could lead to an economic boon for the region’s economy.”

Onorato is opposed by Republican Tom Corbett, who has served two terms at the state’s attorney general.

Onorato knows Northeastern Pennsylvania – he is married to the former Shelly Ziegler of Mountain Top. Onorato said he has traveled to the region regularly for the past 20 years to visit his in-laws, Bill and Sue Ziegler.

“The northeast region is very important to me,” he said. “I will be campaigning here a lot over the next 17 weeks. I see a lot of similarities between here and my home area of Pittsburgh.”

Onorato, 49, has served as the Allegheny County executive for seven years. He boasts that when the next budget is passed in October, it will mark 10 straight years of no tax increase in the county.

“I’ve run the second largest county in the Commonwealth,” Onorato said. “We’ve downsized government – going from 10 row offices to four and we consolidated five 911 centers to one. Those two moves alone saved taxpayers $7 million per year.”

Onorato, the father of three teenagers, said he is optimistic about the governor’s race. He said he doesn’t believe a poll released last week that showed Corbett ahead by 10 percentage points.

“The same people that did that poll also had McCain ahead of Obama in 2008,” He said. “All the polls I’ve seen show this race to be neck-and-neck. I know it will be a battle, but I believe I can win.”

Onorato said the northeast region’s proximity to New York and New Jersey makes it the perfect location to become the warehouse distribution center for the eastern part of the country.

“I see a lot of potential here,” he said.

The Democrat said he would seek to enact a severance tax on the Marcellus Shale drillers and he would use the revenue to fully fund the state Department of Environmental Protection. Onorato said DEP took a 28 percent budget cut last year and he wants to return the department to full capacity.

“If we’re going to allow drilling, then we need a department to watch over it and protect the water and the environment,” Onorato said.

Bill O’Boyle, a Times Leader staff writer, may be reached at 829-7218.

Copyright: Times Leader

Marcellus drillers want “forced pooling” to accompany severance tax

By Laura Legere (Staff Writer)
Published: June 29, 2010

Gas tax law could OK ‘forced pooling’

Firms would drill from nearby site

The Marcellus Shale natural gas industry wants to see legislation attached to any severance tax adopted by the state that would force property owners who refuse leases to allow drillers to gather the gas beneath their land, an industry coalition leader said Monday.

Calling it the most economical and conservative land-use approach to drilling for gas, David Spigelmyer, Chesapeake Energy’s regional vice president for government relations, said in a Times-Tribune editorial board meeting that “forced pooling” is a key element of any legislation the state’s Marcellus drillers could support and is actively being discussed during budget negotiations in the capital.

Mr. Spigelmyer said he does not expect forced pooling to be adopted in the coming days as part of budget talks, but he said “an agreement” likely will emerge with the budget “to talk about (the severance tax) holistically” with other industry-supported legislation on forced pooling.

The Marcellus Shale Coalition, an organization of the state’s Marcellus drillers, “has not said, ‘Hell no’ ” to a severance tax, said Mr. Spigelmyer, the group’s vice chairman. “We’ve said there needs to be a broader discussion.”

A forced pooling statute would require landowners without gas leases to allow a company to drill under their land from a nearby leased property, and it would define the amount of royalties those holdout landowners are owed for their gas.

Eminent domain

Such a statute would help avoid an unnecessary proliferation of wells, Mr. Spigelmyer said, but critics say it is a form of eminent domain.

In May, State Rep. Camille “Bud” George, D-74, Houtzdale, Clearfield County, called it a “controversial, ugly provision” through which “an intrusive government would be depriving an individual’s property rights to benefit private companies.”

Limit zoning laws

As part of severance tax discussions, the industry also wants to limit municipal ordinances that attempt to regulate where gas drilling can occur – a development spurred by a state Supreme Court decision last year that opened the door for municipalities to have some control over where gas wells are located through zoning.

“We’re willing to work with municipalities, but we’re seeing … an extraordinary number of ordinances that are coming into play that basically zone out development completely,” Mr. Spigelmyer said. “We want to make sure we don’t have ordinances in place that basically remove your rights.”

Negotiations over a severance tax are at the center of ongoing state budget decisions, and Mr. Spigelmyer said Monday a Pennsylvania tax needs to look like those in other, competing shale-gas producing states.

Pennsylvania has benefitted from increased drilling without a severance tax, he said, but an unfair tax and recently introduced legislation to halt drilling in the state will deter development.

“I’ve already seen where companies have walked away from joint venture opportunities to invest in Pennsylvania because of the mere inference of a moratorium,” he said.

“It has the potential to, and I think it already has, limited capital investment in the commonwealth.”

Contact the writer: llegere@timesshamrock.com

View article here.

Copyright:  The Scranton Times

Bucking Trends: Marcellus Shale Producing Counties Continue to Add Jobs as Unemployment Climbs Elsewhere

Marcellus job growth the largest “for any sector in [PA], save for…temporary census jobs”

Want to know how tough the economy is in Pennsylvania right now? Of the Commonwealth’s 67 counties, only five did not lose jobs over the past 12 months. But only two of those counties actually improved their unemployment rate (that is, lowered it) by more than two percentage points compared to last year. And wouldn’t you know it — they just happen to be neighbors: Bradford and Tioga Counties. One other thing they share in common: They both happen to be places were Marcellus Shale producers are investing millions of dollars a day to develop clean-burning natural gas for the Commonwealth.

You’ve heard of the Marcellus Multiplier, now meet the Rural Revitalizer. Take a look at the numbers for yourself: In counties where the responsible development of the Marcellus Shale is taking place, jobs are being created, unemployment rates are being held at bay, and millions of dollars are being returned to local governments to provide for essential services.

Bradford County’s story is among the best. In 2009, the local unemployment rate was approaching 11 percent. Today? As recently reported by the Towanda Daily Review, it “leads the state of Pennsylvania in new job creation with 2,000 more people employed than one year ago.”

Today’s Scranton Times Tribune sheds additional light on the positive and lasting impact that Marcellus Shale development is having on job creation and growth across the Commonwealth:

In May, a Penn State University study funded by the natural gas industry said development in the Marcellus Shale region would create 88,000 jobs in 2010. With unemployment up in the state, Bradford County has bucked trends with an unemployment rate that has gone down in the last year.

The Current Employment Statistics for the state in May show statewide mining and logging employment of 23,900, up 2,300 for the year. That growth, 10.6 percent, is the largest rate of growth for any sector in the state, save for federal government employment gains from temporary census jobs.

In Bradford County, an area of high drilling activity, seasonally adjusted unemployment is down a full percentage point, from 8.8 percent last year to 7.8 percent in May. Establishment data, a count of jobs in the county, showed a 1,100-job gain during the year, or 5 percent, to a total of 22,900 jobs, according to state data.

Regional Newspapers Highlight the Economic, Workforce Opportunities for Pennsylvanians

  • “With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands. New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry. … An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year. (Scranton Times Tribune, 6/28/10)
  • It’s just a great opportunity for people to really see what opportunities this industry can provide,” Thompson said. “And it’s not limited to natural gas drilling and extracting. It’s everything. It touches so many different verticals, from food, insurance, gas rig and well site construction, it really runs the gamut of what a lot of people in this area have been doing well for years.” (Morning Times, 6/28/10)

Editorial Pages Underscore the Opportunities Created Through Responsible Marcellus Development

  • “Ground was broken Tuesday afternoon for a Natural Gas Park that will serve the needs of an energy source for the next century. In the evening, Williamsport City Council approved a land development plan for a new gas industry tenant at 240 Arch St. with the potential for 200 to 250 jobs. … These opportunities for our region, its families and its economic profile come along once in a lifetime. (Williamsport Sun-Gazette Editorial, 6/29/10)
  • Good news for Valley was millions of years in the making: “Marcellus Shale covers an area equal to Pennsylvania and Ohio combined, but the good news locally was concentrated on a plot the size of a couple of city blocks straddling the border of Youngstown and Girard. It was there that ground was broken for V&M Star’s expansion, a $650 million project that will provide construction jobs now and, eventually, 350 jobs making oil-country grade pipe. … Now, with new technology and increasing demand for clean-burning natural gas, investors are looking at drilling thousands of Marcellus Shale wells. And hundreds of miles of pipe for those wells will be coming from the Mahoning Valley. (Youngstown Vindicator Editorial, 6/30/10)

To join our fight for more affordable, stable supplies of American-made energy, and for more jobs across the region, visit Marcelluscoalition.org, and become a “Friend of Marcellus.”

State releases list of drilling chemicals

Compounds associated with serious health effects are among those being used to drill gas wells.

Staff and wire reports

HARRISBURG — More than two years after the start of a natural gas drilling boom, Pennsylvania is making public what environmental regulators dub a complete list of the chemicals used to extract the gas from deep underground amid rising public fears of potential water contamination and increased scrutiny of the fast-growing industry.

Compounds associated with neurological problems, cancer and other serious health effects are among the chemicals being used to drill the wells, although state and industry officials say there is no evidence that the activity is polluting drinking water.

The Associated Press obtained the list from the state Department of Environmental Protection, which assembled what is believed to be the first complete catalog of chemicals being used to drill in the Marcellus Shale. The department hopes to post it online as soon as Wednesday, according to spokesman Tom Rathbun.

It counts more than 80 chemicals being used by the industry in a process called hydraulic fracturing, or “fracking,” as it pursues the gas in the mile-deep shale.

Environmental advocates worry the chemicals are poisoning underground drinking water sources. However, environmental officials say they know of no examples in Pennsylvania or elsewhere.

“If we thought there was any frack fluid getting into fresh drinking water … I think we’d have to have a very serious conversation about prohibiting the activity completely,” said Scott Perry, the director of the department’s Bureau of Oil and Gas Management.

Conrad Volz, who directs the University of Pittsburgh’s Department of Environmental and Occupational Health, said state and federal agencies haven’t done enough research to come to that conclusion.

Dr. Thomas Jiunta, a podiatrist from Lehman Township who founded the Gas Drilling Awareness Coalition, predicted DEP’s list would be incomplete and that it would not provide concentrations of chemicals used in fracking fluids. He referred a reporter to Theo Colburn, who has been conducting research on the effects of fracking chemicals.

Colborn, who founded The Endocrine Disruption Exchange, a Colorado non-profit that studies health and environmental problems caused by low-dose exposure to chemicals that interfere with development and function, said the list of chemicals is “the longest list (that she’s seen) provided by any government agency.”

But, said Colborn, whose degrees include pharmacy, epidemiology, toxicology and water chemistry, the list does not contain Chemical Abstract Services registry numbers, which aid in identifying the chemicals through databases. And several items on the list are classes of chemicals rather than individual chemicals.

“Glycol ethers – see, here you have a general term again. There are many glycol ethers. In our spreadsheets, you wouldn’t find anything so general,” Colborn said, scanning the list. “And Oil Mist – what is that?” she said.

Colborn also said the concentrations of the chemicals in the fracking fluids should be divulged because it’s the only way medical personnel and scientists can determine the dosage of chemicals when treating someone exposed to them or when researching the long-term effects of exposure or consumption if the chemicals ended up contaminating a water supply.

Industry advocates say the concentrations of chemicals in fracking solutions must remain trade secrets.

Many of the compounds are present in consumer products, such as salt, cosmetics, ice cream, gasoline, pesticides, solvents, glues, paints and tobacco smoke.

A decades-old technology, hydraulic fracturing was coming under increased scrutiny even before the Gulf of Mexico oil spill.

Its spread from states such as Texas, Colorado and Wyoming to heavily populated watersheds on the East Coast has led to worries about water contamination and calls for federal regulation.

Hydraulic fracturing is exempt from the federal Safe Drinking Water Act, leaving states to regulate the activity. In New York state, regulators have effectively held up drilling on the Marcellus Shale while they consider new regulations. Last year, they published a list of more than 250 chemicals that could potentially be used there.

In Pennsylvania, where approximately 1,500 Marcellus Shale wells have been drilled and many thousands more are expected in the coming years, the state is working to buttress its regulations even as rigs poke holes in large swaths of the state.

Pennsylvania assembled the list in recent months from information the industry is required to disclose and decided to prepare it for the public as public interest grew, Perry said.

Industry officials say the chemicals pose no threat because they are handled safely and are heavily diluted when they are injected under heavy pressure with water and sand into a well. Industry officials say the chemicals account for less than 1 percent of the fluid that is blasted underground.

The mixture breaks up the shale some 5,000 to 8,000 feet down and props open the cracks to allow the gas trapped inside to flow up the well to the surface.

One compound, naphthalene, is classified by the federal Environmental Protection Agency as a possible human carcinogen.

The EPA said central nervous system depression has been reported in people who get high levels of toluene by deliberately inhaling paint or glue.

In its online guidelines on xylene, the U.S. Occupational Safety and Health Administration cites an industrial hygiene and toxicology text that says chronic exposure to xylene may cause central nervous system depression, anemia, liver damage and more.

The chemicals are used to reduce friction, kill algae and break down mineral deposits in the well. Various well services firms make different proprietary blends of the solutions and supply them to the drilling companies, which blend them with water at the well site before pumping them underground.

In recent years, some makers of the solutions have sought to replace toxic ingredients with “green” or food-based additives. For instance, Range Resources Corp., one of the most active drilling companies in Pennsylvania, is close to rolling out a 100 percent biodegradable friction reducer, spokesman Matt Pitzarella said Monday.

Copyright: Times Leader

NEPA schools preparing workers for jobs in gas-drilling industry

BY STEVE McCONNELL (STAFF WRITER)
Published: June 28, 2010

With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands.

New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry.

Already, Lackawanna College and Johnson College in Scranton, Keystone College in LaPlume and the Pennsylvania College of Technology in Williamsport represent the growing trend of educational institutions offering course work and the hands-on training needed to become employable in one of Pennsylvania’s growing industries.

And, college administrators agree the reason for the trend is simple: There’s a demand for it by both the industry and potential workers who want the training and the jobs that come with it.

An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year.

“Marcellus Shale is going to be big business,” said Christopher Kucharski, Lackawanna College spokesman. “Problem is there is just nobody trained to handle the positions they want filled.”

It appears a change is under way.

Larry Milliken, director of Lackawanna College’s energy program and a natural gas instructor, just finished guiding the first class of 18 students through its first year of study to earn an associate degree in natural gas technology.

Based at the college’s New Milford campus in the center of the action near gas fields in Susquehanna County, the program is preparing students for well tender jobs – a position that requires monitoring and maintaining natural gas wells during their lengthy production phase.

There is generally one well tender employed for every 20 to 40 natural gas wells, Mr. Milliken said, and the entry-level annual salary is $36,000. Sixteen students have paid internships with natural gas drilling companies this summer in western Pennsylvania, he added.

“The industry has been very supportive of wanting to get (our students) on board,” he said. The college also is hiring three additional instructors this year to accommodate the increase in students who have enrolled in the natural gas technology degree program for the 2010-11 school year.

At Lackawanna College’s new campus in Hawley, college administrators recently announced a new certificate course for fall centered on training accounting assistants, accounting clerks and administrative assistants specifically for the oil and gas industry.

Tracy Brundage, managing director of work force development at Pennsylvania College of Technology, said administrators decided to take the leap into offering natural gas drilling-related courses this year. The decision followed an in-house study that determined growing employment opportunities because of the prevalence of natural gas development under way in the region.

“The jobs are going to be around for a long time,” Ms. Brundage said. “We’re just getting started … to get our arms around what is happening … and how we need to respond.”

Pennsylvania College of Technology has just begun offering training and certification classes in welding specialized for the industry’s infrastructure and commercial driver’s license classes, and has tweaked some of its academic majors – including diesel and electrical technology – to include natural gas drilling-related coursework.

So far, about 350 students have enrolled in the non-degree programs.

The college plans to expand its offerings, perhaps to include training for natural gas well operators and emergency response technicians, Ms. Brundage said.

Keystone College, known for its focus on the liberal arts, is also jumping on board.

Robert Cook, Ph.D., the college’s environmental resource management program coordinator, said the college will be offering a handful of new courses early next year that include mapping underground natural resources tied specifically to natural gas.

The environmental resource management degree, a four-year Bachelor of Science, has had its “highest level of interest this year” in part because of the Marcellus Shale boom and an expectation that jobs will be available for graduates, Dr. Cook said. The degree, which includes environmental law courses, can also prepare a would-be environmental regulator, he added.

“It’s clear energy is going to be an important subject for decades,” said Dr. Cook, a professional geologist. “It’s thrilling to see our discipline become an important skill set.”

Keystone is also hiring a new instructor to teach undergraduate courses within a new natural gas and petroleum resource curriculum that is now under development.

Marie Allison, director of continuing education at Johnson College, said the college will be offering its first class in pipe welding next week tailored to techniques needed by the natural gas industry. The college also will offer a class for advanced welders to prepare for certification in a specific style of welding demanded by the industry.

The college’s welding program had been defunct since 2001, because of declining enrollment, but the multitude of pipes and fittings that will be laid by the industry in the coming years yields greater demand for skilled welders, she said.

“They need welders,” Ms. Allison said. “We want to give someone the fundamentals and give them the opportunity to find a job.”

Contact the writer: smcconnell@timesshamrock.com

View this article here.

Copyright:  The Scranton Times

It’s Up To You New York

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright: Marcelluscoalition.org

Mundy introduces gas-drilling moratorium legislation

By Bob Kalinowski (Staff Writer)
Published: June 25, 2010

WILKES-BARRE – State Rep. Phyllis Mundy on Wednesday moved ahead with a plan to halt all new natural gas drilling permits in Pennsylvania and two other proposals aimed at protecting drinking-water sources from contamination related to drilling.

Ms. Mundy, D-120, Kingston, formally introduced two bills and a resolution in the state House, which include:

n House Bill 2609, which would establish a one-year moratorium on the issuance of new natural gas drilling permits to give state officials more time to analyze the Marcellus Shale drilling industry and make sure proper protections are in place.

n House Bill 2608 would prohibit natural gas drilling companies that use fracking, or horizontal drilling, from drilling wells within 2,500 feet of a primary source of supply for a community water system, such as a lake or reservoir. The current restriction is only 100 feet.

n House Resolution 864 would urge Congress to pass the Fracturing Responsibility and Awareness of Chemicals Act. It asks Congress to repeal a provision in the federal Safe Drinking Water Act, known as the “Halliburton loophole,” that exempts oil and gas drilling industries from restrictions on hydraulic fracturing near drinking-water sources. The act also would require oil and gas industries to disclose all hydraulic fracturing chemicals and chemical constituents currently considered proprietary rights of the company.

There was no indication if or when the bills would come up for a vote by the House.

Contact the writer: bkalinowski@citizensvoice.com

View article here.

Copyright:  The Scranton Times

State police crack down on gas-drilling vehicles

By Andrew M. Sederaseder@timesleader.com
Times Leader Staff Writer

Victoria Switzer watches the trucks, at least 100 of them she estimates, ramble past her Dimock Township home every day. They go back and forth from the Cabot Oil and Gas drill sites, hauling equipment, waste water and materials.

She worries what would happen if there was a spill, if the operator wasn’t properly licensed, if the truck wasn’t mechanically sound.

For years she’s been calling state officials and complaining about their speed, their actions and what she saw as violations. Last week some agencies heeded the call of Switzer and others like her and made a concerted effort to send a message to the truck operators that though they are permitted to operate, they need to do so legally.

During a three-day enforcement effort last week that focused on trucks hauling waste water from Marcellus Shale natural gas drilling operations across the state, the state police placed 250 commercial vehicles out of service.

State Police Commissioner Frank E. Pawlowski said state troopers worked in partnership with personnel from the Department of Environmental Protection, the Pennsylvania Public Utility Commission and the federal Motor Carrier Safety Administration as part of Operation FracNET.

In total, 1,137 trucks were inspected from June 14-16.

“Pennsylvania has experienced significant increases in heavy truck traffic in areas where Marcellus Shale natural gas drilling operations are taking place, particularly in Bradford, Clearfield, Susquehanna, Tioga and Washington counties,” Pawlowski said. “The process of hydraulic fracturing, or fracking, requires significant amounts of water to be delivered to the sites and later trucked away.”

He said the enforcement effort centered on identifying commercial vehicle safety deficiencies that could lead to crashes. Pawlowski said 131 of the 250 vehicles placed out of service were trucks hauling waste water. He said 669 traffic citations and 818 written warnings were issued as the result of waste water truck inspections. In addition, 23 of the 45 drivers placed out of service during the operation were waste water vehicle operators.

“As activities at natural gas sites continue to increase, it is important that everyone involved, including the waste transportation industry, understands Pennsylvania’s environmental and traffic safety laws and complies with them,” said DEP Secretary John Hanger.

“Cracking down, I’m thrilled to see it,” said Switzer, who is one of a dozen property owners in the Susquehanna County township that have had their well water polluted by oil drilling. “Better late than never.”

Mark Carmon, spokesman for DEP’s Northeast Regional office, said that three trucks were cited in Susquehanna County out of the 30 that were stopped. Two of the trucks were not carrying Prevention Preparedness Contingency plans, which list what chemicals are being hauled, emergency contact numbers in case of a spill and plans for cleanup. One of the trucks did not have proof of waste hauling certification, and one truck did not have its waste log book listing what it was hauling and from and to where.

Carmon said the operation provided “a good opportunity to check these trucks” and said it will be an ongoing measure.

Lt. Myra A. Taylor, a state police spokeswoman, said a decision was made to “make a concerted effort to blitz these particular areas,” in part, because of concerns raised by residents.

“I applaud the citizenry,” Taylor said. And she echoed Carmon’s comments that these inspections will not be a one-time event.

“We will be ever vigilant,” she said.

State Rep. Karen Boback, R-Harveys Lake, praised the offices involved in the operation.

“I applaud our state agencies and the state police for working together to monitor frack water hauling operations. It is vital that we continue to scrutinize every phase, aspect and offshoot of the drilling process, and I encourage law enforcement to persist in efforts to root out those operators who are not acting in accordance with Pennsylvania laws and potentially endangering the lives and health of Commonwealth residents, along with our environment,” she said.

Taylor said the truck violations found ran the gamut mechanical issues to overweight trucks. Driver citations included drivers operating without a proper license and drivers who were operating without enough rest or working too many hours in a day.

A list of what trucking companies were cited was not available by the state police or DEP.

A statement from the executive director of the Marcellus Shale Coalition, a pro-drilling organization, said steps have been taken and will continue to be taken to reduce gas-related truck traffic.

Copyright: Times Leader