Posts Tagged ‘Pennsylvania’

Shale town mayor tells drilling woes

Mauri Rapp Abington Journal Correspondent

Sir Francis Bacon once said “Knowledge is power.” To that famous quote, Calvin Tillman adds “Once you know, you can’t not know.”

Tillman, the mayor of DISH, Texas, was one of four panelists in attendance at “Impacts of Gas Drilling and Your Community,” a Marcellus Shale drilling information seminar held April 29 at the Clark Summit fire hall. DISH, a town of fewer than 200 residents located approximately 25 miles from the Dallas/Fort Worth metroplex, garnered national attention after changing its name from Clark in exchange for free cable television service for ten years from DISH Network.

DISH has also attracted another kind of attention: the eye of natural gas companies drilling in the Barnett Shale region, a natural gas field which stretches approximately 5,000 square miles across the state of Texas. Tillman called DISH the “Grand Central Station” of the Barnett Shale play, with 11 compressor stations, three metering stations and more than 20 natural gas pipelines located within less than two square miles.

Tillman described to the 150-plus people in attendance April 29 the impact natural gas drilling has had on his town. To date, the Barnett Shale play has added approximately $8 to $10 billion and 100,000 jobs to the Texas economy, Tillman said. The industry has also added toxic chemicals to DISH’s air, he said. A study performed in August 2009 by Wolf Eagle Environmental showed that the air contained high concentrations of carcinogens and neurotoxins. Tillman continues to advocate for the town’s population, and on April 22 the Texas Commission on Environmental Quality installed a continuous air monitor in DISH. “I believe more testing should be done,” he said.

The mayor has relayed his story to audiences in the Marcellus Shale region during the past several months. Tillman said he is not against the industry and believes in working with it to get things done, but feels that citizens and communities should go into leases with their eyes open. He said that certain measures, such as green technologies, declaration of areas such as schools and parks off limits to drilling, and a separation between the DEP regulating and permitting bodies could help make the industry safer. Tillman also spoke in favor of a severance tax for Pennsylvania. “I hate to break it to you, but the oil and gas industry came into Pennsylvania and picked your pockets,” Tillman said. “You need to have a severance tax to pay for roads, to pay for environmental issues, to pay for more DEP workers.”

Putting a personal face on the Marcellus Shale play was Victoria Switzer, a natural gas lessor from Dimock Township who said she wished she knew when she signed her lease what she knows now. “We’ve all heard the glories of the natural gas industry,” Switzer said. “I’m not going to dispute some of those things, but I’m going to show you what comes with the package deal.”

Switzer said that for the past couple of years, she has been living in a gas field with 63 wells located within nine square miles, the closest one 710 feet from her own home. Twenty-four of those wells have had violations, said Switzer. She now conducts what she calls “Victoria’s Toxic Tours” for citizens, journalists and public officials interested in seeing the impact natural gas drilling has had in her township. “You need to know what is coming your way,” she told the audience.

Panelist Paul Lumia, executive director of North Branch Land Trust, provided tips for those who decide to lease to natural gas drillers, including getting to know one’s gas man and remaining vigilant in reporting suspected violations to DEP. Lumia also encourages the crowd to pressure policymakers into decisions that preserve the environment. “Don’t just assume that your neighbors will do it,” Lumia said. “Protecting our land is up to us.”

Also on hand was George E. Turner, a professional geologist with more than 20 years of experience with groundwater and water testing. Turner advised those considering natural gas leasing to get their water tested beforehand. “This gives you legal proof in case your water is contaminated,” he said.

Scott Perry, deputy director of the DEP Bureau of Oil and Gas Management, was on hand to answer questions from the audience.

Copyright: Times Leader

Gas land leasers now get rich deal

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

The yearlong wait was worth it for Wyoming County landowners who didn’t get a chance to sign a gas lease last year.

In a deal with Chesapeake Energy announced on Tuesday, they’ll receive almost double the bonus offered previously and an additional bump in the royalties they keep. The five-year deal offers $5,750 per acre immediately as a sign-up bonus, 20 percent royalties and a multiyear extension option.

The Wyoming County landowners group represents about 37,000 acres that haven’t been leased yet, and if all property owners sign up, the deal, in bonus money alone, is worth about $212.75 million.

Chesapeake officials were hoping to have a lease signing this week, but the landowners don’t think that will be possible logistically, group secretary Chip Lines-Burgess said. “The one question that comes up is, ‘What happens if we’re on vacation next week when this comes about?’ ”

After months of relative silence on leasing in the Marcellus Shale, a layer of gas-laden rock about mile underground that centers on northern Pennsylvania, interest is again heating up.

The agreement is somewhat bittersweet for members of the group who leased last year before the financial crash with Colorado-based Citrus Energy.

Lines-Burgess’s 42 acres in Meshoppen were among those roughly 35,000 acres. They received a $2,850-per-acre bonus, minus consultant payments, for a five-year lease with 17-percent royalties. If the lands aren’t drilled within five years, there are two one-year extensions each for $1,000 per acre.

“Yes, sure, it’s a tough pill to swallow … but who knew?” she said. “If it goes a year down the road, it might go to God only knows what, or it may not. … You just have to make a decision that when you sign on the dotted line, (you’re) happy.”

She said her family was able to pay off their farm. She remained on as secretary, as did other members of the group’s core committee, because “we just felt it was our … duty to make sure this happened.”

“Our county consists of a lot of people in their golden years. … We have a lot of people who have a lot of acreage and needed something. If this wonderful lease brings those people more comfort in their golden years … that’s the ultimate,” she said. “Their grandchildren, with this, won’t have to worry about what’s in this lease.”

The deal comes as groups in Susquehanna County are signing similar leases and about a month after the Northern Wayne Property Owners Alliance signed perhaps the first lease in the state with 20-percent royalties.

The South West Ross Township Property Group held a members-only meeting on Tuesday night, and member Ken Long acknowledged that the group is “in negotiations with a major gas company” and that “the monetary offers are in the ballpark of what” the Wyoming County landowners received.

He declined to confirm or deny that the company is Chesapeake.

It’s unclear what caused offers to rise so much so fast, but there are theories. “There’s been a lot of discussion about that,” said Lines-Burgess, who speculated that it might be a reaction to potential legislation that would affect leasing rights.

“We just don’t know what they (gas companies) are seeing. … Obviously, they have a plan, and we’re part of it,” she said.

Long said he believed the education efforts of land groups helped. “I would say that a lot of the efforts of the groups that have formed … are kind of paying dividends now. I think we’ve raised the standards of the leases, and we’re starting to see the increases in the bonus payment and royalties,” he said, adding that companies might be scrambling to get a foothold in the shale as more and more of the land is leased.

Copyright: Times Leader

Oil/natural gas rep touts environmental record

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

WILKES-BARRE – A representative of a trade association for the oil and natural gas industry defended her members’ record on environmental issues Tuesday during a meeting with The Times Leader editorial board.

Sara Banaszak, senior economist with the American Petroleum Institute in Washington, D.C., also shared her perspectives on federal regulation and state taxation of the industry.

Banaszak indicated she understands concerns that residents of the region might have, given the legacy of coal barons profiting from the region’s anthracite, disappearing with their profits, and leaving future generations to deal with stripping pits, mine subsidence, acidic streams and lung disease.

“From the industry perspective, no accident and no amount of pollution is acceptable. It’s not sustainable for the industry. If I’m polluting your water, I know I’m going to be tossed out of town in two minutes, so it’s not in my interest,” Banaszak said.

Banaszak said any industrial process can be dangerous, “and anything we do has impacts on the earth. So what we’re trying to do is continuously and on an ongoing basis employ best knowledge, best practices and the technological development and the regulation needed to make sure that we’re getting the best that we can. And the best that we can has to be clean water. We have to have clean water,” she said.

Banaszak said many people don’t realize there is already regulation in place to protect Pennsylvania from water pollution.

“Even if I get a lease, I’m not going to drill a well or even move equipment onto that site until I’ve presented to the state of Pennsylvania a well drilling plan, and a well drilling plan has a water management plan attached to it,” she said.

Much concern has been raised about “fracking” – the hydraulic fracturing of rock to release natural gas.

Banaszak said fracking has been used in the industry since the 1940s. And when the Safe Drinking Water Act was passed in 1974, the U.S. Environmental Protection Agency found it unnecessary to regulate because it wasn’t threatening drinking water. The manner in which it was being managed at the state level was sufficient to protect drinking water, she said.

Banaszak said problems with the completion of drilling and cementing of wells or poor management of fracking fluid on the surface led to pollution of groundwater, not the fracking process itself. She said more oversight is needed for those practices.

Banaszak said gas companies don’t want to reveal formulas for fracking fluids because they are proprietary. But the industry doesn’t oppose disclosing the proprietary information to state regulators, local authorities and hospitals if the information is kept confidential, she said.

Banaszak said making the EPA responsible for oversight of fracking would require the agency to develop a new oversight program or dramatically overhaul its program regulating underground use of fluids.

A complete overhaul would be a slow process, taking six months to two years to develop a proposal, plus more time for advertising, public comment and developing draft and final plans.

“That’s why there’s so much concern. It’s not a simple matter just to say, oh, we’re just asking under federal law for the disclosure of chemicals,” she said.

Regarding concerns about fracking depleting water supplies, Banaszak said that even at double the peak drilling level in the Barnett Shale in Texas, which is 10 times greater than Marcellus drilling was in 2009, water use would represent only half of what is used for recreational purposes in Pennsylvania, such as golf course and ski slope maintenance.

As for economics, Banaszak said imposing a severance tax on natural gas production could actually hamper economic development.

Although the Marcellus Shale is the second-largest natural gas field in the world, she said other sources are available to investors. She said it seems natural to assume that the state could gain more revenue through taxing natural gas production, but the issue can be counter-intuitive.

“If you impose a tax, you get less investment and the government could see less net revenues. … If you let the situation go, the amount of government revenue you collect could actually be more,” she said.

The pipeline infrastructure in the Northeast is old and difficult to tap, requiring much investment. In West Virginia, where taxes there are 10 percent higher, “you see dramatically low investment,” Banaszak said.

Copyright: Times Leader

Casey wants EPA to probe well contamination linked to gas drilling

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

SCRANTON – U.S. Sen. Robert Casey wants the U.S. Environmental Protection Agency to investigate and respond to groundwater contamination that the state has linked to a natural gas well in Susquehanna County.

ON THE NET

Read Sen. Robert Casey’s letter to the EPA at www.timesleader.com.

In a letter to EPA administrator Lisa Jackson, Casey noted that natural gas drilling in the Marcellus Shale region has led to job creation, strengthened the state economy and reduced dependence on foreign oil.

However, Casey writes, “the highly variable and unpredictable nature” of hydraulic fracturing (fracking) “that can lead to the contamination of drinking water is of great concern.” He noted the gas and oil industry is exempt from complying with the federal Safe Drinking Water Act.

Casey said there are many reasons for requesting EPA involvement, including recent incidents in the state that “raise the question of whether the necessary steps have been taken to protect Pennsylvania families and communities against the detrimental side effects of drilling.”

He pointed to methane gas infiltration into private water wells in Dimock Township and noted that several wells have exploded because of a suspected buildup of natural gas.

Casey said the state Department of Environmental Protection fined Cabot Oil & Gas Corp. $240,000, ordered the plugging of three natural gas wells believed to be the source of the contamination, prohibited Cabot from drilling in the vicinity for one year and required Cabot to install permanent water treatment systems in affected homes.

Casey also noted that, according to DEP, between 6,000 and 8,000 gallons of fracking fluid leaked from a pipe at a drill site and contaminated the surrounding area and a wetland in Susquehanna County in two separate spills on the same day in September 2009 – one in the afternoon that leaked 25 to 50 barrels of fluid, another in the evening that leaked 140 barrels.

“I commend DEP for taking action, but I remain concerned that the current status of federal and state oversight of gas drilling may be inadequate” to protect families living near drilling sites, Casey wrote.

The senator asked for a meeting with appropriate EPA officials to discuss natural gas drilling and whether the agency could investigate water and environmental contamination. He said he hopes Science Advisory Board officials would also attend the meeting to discuss the scope, timing and methodology of a congressionally mandated study the EPA has launched on hydraulic fracturing.

An EPA spokeswoman said officials are reviewing Casey’s letter and expect to respond in the near future.

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

Copyright: Times Leader

Activists express fears on gas drilling

Green Party rally on Earth Day protests environmental concerns regarding fracking.

By Sherry Longslong@timesleader.com
Staff Writer

WILKES-BARRE – Local environmental activists used this year’s Earth Day to address their viewpoints on gas drilling.

Members of the Luzerne County Green Party held a rally on Public Square around lunchtime Thursday explaining their fears that gas companies drilling throughout Northeastern Pennsylvania will cause more environmental harm than good by drilling.

This year was the 40th anniversary of Earth Day, the international movement to bring awareness to economical issues.

Party co-chairman Carl Romanelli thinks the state needs to enact stiffer guidelines to protect the water resources because the gas drillers were given what he called a loophole in 2005 in the federal Clean Water Act.

He believes the hydro-fracturing system, also known as fracking, used to extract gas from deep within the earth could be harmful because it uses what he calls a “toxic soup” of chemicals.

“It is essential that the Commonwealth of Pennsylvania step up to protect its citizens and natural resources of Pennsylvania and not sell us out,” Romanelli said.

Chris Tucker, a spokesman for the Marcellus Shale Coalition, an organization based near Pittsburgh, created to support gas drilling throughout the state, disagreed with Romanelli. He said gas drilling is more environmentally friendly than other drilling practices of decades past.

“Because of hydraulic fracking and horizontial drilling, we today produce 10 times the amount of energy with one-tenth the number of wells drilled. We are reducing land disturbance, reducing the need for infrastructure and reducing all types of environmental foot prints because we are drilling fewer wells,” Tucker said.

The primary elements used in fracking are excessive gallons of water and sand with a small amount of chemicals mixed in, he added. Those chemicals help push the water down nearly two miles deep into the surface, which then forces the gas upward.

He said fracking has been around for 60 years and is used by the federal Environmental Protection Agency to clean up severely toxic sites and dig nine out of every 10 wells, including water wells across the nation.

John Hanger of the state Department of Environmental Protection said the state monitors fracking very closely and there have been no instances of where fracking has contaminated anyone’s drinking water.

Copyright: Times Leader

UC foresees energy cost cut

Jurisdiction over drilling for natural gas in the Marcellus Shale is subject of hearing.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

HARRISBURG – The chairman of the state Public Utility Commission is confident that Marcellus Shale development will stabilize prices not only of natural gas, but electricity prices as well, and is thrilled the natural gas industry supports the PUC’s oversight of pipeline safety in Pennsylvania.

Commission members on Thursday heard testimony from representatives of the natural gas industry, a federal pipeline safety official, the state consumer advocate and the director of the Pennsylvania Association of Township Supervisors on the commission’s jurisdiction as related to Marcellus Shale development.

“I think everybody is in agreement that this increased gas supply, whether the gas is sold in Pennsylvania or not, is going to have a depressing effect on the wholesale price of gas,” PUC Chairman James H. Cawley said after the hearing.

Irwin “Sonny” Popowsky, of the state Office of Consumer Advocate, testified that the retail and wholesale price level of natural gas “has been on a roller coaster ride for years.”

He said an abundance of natural gas should stabilize and ultimately lower the price of gas and electricity so that it is affected by supply and demand rather than politics in the Middle East.

Commissioner Wayne Gardner said he’s heard that many roads were severely damaged under Chesapeake Energy traffic.
David J. Spigelmyer, vice president of government relations for Chesapeake, said a harsh freeze-thaw season and the fact that many roads were never constructed with proper foundations resulted in the need significant road repairs. But the company is bonded to repair those roads and has hired 23 road contractors in Bradford County to repair them.

David M. Sanko, executive director of the Pennsylvania Association of Township Supervisors, said his concern is that state law requires bonds for roadwork in the amount of $12,500, but it could cost up to $100,000.

Commissioner Robert Powelson asked how the commission can be confident that the “self-policing system (of the gas industry) will work and that safety will be maintained?”

Spigelmyer said the industry has worked closely with the state Department of Environmental Protection to ensure the industry meets state requirements and noted that permit fees that fund inspections climbed from $100 to about $4,000.

Alex Dankanich, general engineer with the U.S. Department of Transportation’s Office of Pipeline Safety, testified that of the 31 states that produce natural gas, only Pennsylvania and Alaska lack the statutory authority to regulate gas gathering pipelines.

Cawley noted that the administration had been pushing for the PUC to obtain inspection authority because the administration doesn’t have the manpower.

Dankanich said the PUC would be reimbursed 80 percent of the cost for inspecting non-Class I pipelines – those surrounded by 10 or fewer homes within 220 yards of a pipeline in a 1-mile stretch. Those lines are exempt from federal inspection.

PUC Vice Chairman Tyrone Christy asked if Pennsylvania should also exempt Class I pipelines from inspection.

Lindsay Sander, a consultant for the Marcellus Shale Coalition, said she was comfortable with the exemption given the low number of Class I problems.

Cawley said the natural gas industry “seems to be bending over backwards to be responsible. But you’ve got to have the rules in place for everybody, including the potential bad apples who are going to try and take shortcuts.”

He said the commission is not trying to economically regulate the gas production industry.

“We’re not going to try and set the rates. We just want safety jurisdiction, whether they’re a public utility or not. And … the industry coalition, which has 170 members, support us adopting the federal standards. … They’ve said that’s fine and they’ve said they’re willing to help pay for it on a per-mile basis,” he said.

Cawley said the commission has submitted proposed statutory language to House and Senate oversight committees related to PUC safety regulation.

“One part of it has already been passed by the House almost unanimously. It would increase fines for violations to the federal level. It would go from $10,000 per day to $100,000 per day and up to $1 million overall. House Bill 1128, that could be the vehicle for getting it done. The Senate could amend it and send it back over or the House could give us this additional legislation, but this is our top legislative priority – pipeline safety,” Cawley said.

He said he also asked the industry for a commitment to use PUC’s certificated trucks for hauling equipment and supplies, “and they’ve committed to that, which is good. We’ve increased carrier enforcement in that area because we discovered that in their haste to get supplies in, they weren’t using PUC certificated carriers.”

“We’ve increased our enforcement, … and now that they know we’re watching, they’ll be more careful about the carriers they use,” Cawley said.

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

Copyright: Times Leader

Gas drillers called to Harrisburg

The Associated Press

HARRISBURG — Pennsylvania’s top environmental regulator is summoning oil and gas companies to Harrisburg to discuss their drilling operations in the Marcellus Shale.

Department of Environmental Secretary John Hanger said Tuesday that he plans to meet with companies that have permits to drill in the Marcellus, a sprawling rock formation that may develop into one of the nation’s most productive gas fields.

The meeting will be held May 13.

Hanger says he wants to avoid a repeat of the pollution in Dimock Township, Susquehanna County.

DEP alleges that Lafayette, La.-based Cabot Oil & Gas Inc. allowed methane gas to migrate into 14 residential water wells.

DEP has called for stricter regulations on the gas industry.

Copyright: Times Leader

Debate rages over Delaware River watershed

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

MICHAEL RUBINKAM Associated Press Writer

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright: Times Leader

Gas drilling could aid clean water

Industry may pay to upgrade plants that handle waste water from process.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

The state is contending with a multibillion-dollar water-treatment problem, and the growing gas-drilling industry might be part of the solution.

A roughly $7.2 billion deficit exists for repairing or upgrading waste-water treatment facilities in the state, according to a task force created by Gov. Ed Rendell to solve water-infrastructure issues. Gas companies might help defray that cost as more wells are drilled because the companies will need treatment facilities for waste water.

The process to drill gas and oil wells, called hydraulic fracturing or simply “fracing,” involves shooting sand and water down a well to fracture the rock containing the oil or gas.

The contaminated water is separated out and can be stored and reused, but must eventually be treated. The state Department of Environmental Protection categorizes it as industrial waste, agency spokesman Mark Carmon said.

In western Pennsylvania, where many shallow wells exist, privately operated treatment facilities handle such waste, but none has so far in the northeast area, said Stephen Rhoads, president of the Pennsylvania Oil & Gas Association.

Exploring the Marcellus Shale, which runs from upstate New York into Virginia, including the northern edge of Luzerne County, generally requires far more water than shallow wells because the wells can be 8,000 feet deep

Companies working in this region have reused the water in multiple wells and then shipped it to the facilities out west, Rhoads said, but “obviously, moving it across the state with the fuel prices the way they are, is not economically” viable. The water can also be injected deep into the ground, but no one has sought such a permit in this region, Carmon said.

That leaves sending the water to public facilities, but since many of them are already near or at capacity, the industry is considering paying to upgrade plants. About 30 of the largest regional treatment facilities have been notified by DEP that they might be approached with the idea and that they’d first need to modify their liquid discharge permits and receive approval from the agency, Carmon said.

The idea hasn’t escaped the gas companies.

“We’ve talked about that in various areas throughout the state,” said Rodney Waller, of Range Resources Corp. “We’re investigating that, but … there’s nothing on the horizon.”

Upcoming events

• 10:30 a.m. today the state Department of Environmental Protection, Department of Conservation and Natural Resources, Pennsylvania Fish and Boat Commission, Susquehanna and Delaware river basin commissions, and county conservation districts are meeting in Harrisburg with industry members to discuss environmental regulations.

• 7 p.m. June 23 the Penn State Cooperative Extension is holding a gas-lease workshop for landowners at the Lake-Lehman High School.

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

Copyright: Times Leader

Lehman Township says yes to gas drilling

Some residents oppose, but solicitor says only state can halt drilling operations in municipalities.

RALPH NARDONE Times Leader Correspondent

LEHMAN TWP. – Township residents will be getting a new neighbor when EnCana Oil and Gas USA begins drilling for natural gas in late summer.

Township officials voted unanimously Tuesday night to approve an ordinance allowing the company to start Marcellus Shale gas drilling operations near Peaceful Valley Road.

Board of Supervisors Vice Chairman Ray Iwanowski made the motion to enact the ordinance and Chairman David Sutton and Supervisor Douglas Ide voted yes.

Township Zoning Board Solicitor Jack Haley addressed a well-mannered crowd of about 70 people before the vote, essentially telling them the township was in no position to halt the company’s plans.

Some residents who expressed opposition wanted the supervisors to “send a message” by not enacting the ordinance, Haley said. That would have amounted to “civil disobedience,” he said.

According to Haley, all authority to halt drilling operations in any municipality in Pennsylvania lies in the hands of state agencies, not local governments. The township’s rules are “superseded” by the state Oil and Gas Act, he said.

The state Supreme Court already reviewed two similar cases, he added, and decided the only authority Lehman Township has applies to what roads EnCana can use.

Haley also addressed concerns raised that two of the supervisors, Ide and Sutton, have personal ties to gas drilling. Ide leased some of his own land for gas drilling, and Sutton consults property owners concerning drilling, Haley said.

Both members could only second the motion or vote yes but could not participate in any questions about the vote or make the original motion. The only supervisor who could make the motion was Iwanowski.

The state Ethics Commission checked into the potential conflict of interest involving the two supervisors.

Iwanowski outlined six conditions to the motion: that EnCana put up $13,540 to maintain Firehouse Road through the total time it is used; EnCana put up $32,192 to maintain Peaceful Valley Road similarly; all traffic related to the drilling traverse on Firehouse Road toward state Route 118; no traffic will go on Old Route 115 in the township (near the school); EnCana provide adequate insurance coverage for the township, and that a legally binding agreement be signed by EnCana holding it to its commitment.

No representatives from EnCana attended the meeting.

About 25 peaceful protesters were there greeting meeting attendees at the door with anti-drilling literature. Leanne Mazurick, 30, of Dallas Township, stressed the industry is essentially “unregulated.” She said residents in other communities of Northeastern Pennsylvania are having trouble with water contamination where there is drilling.

“We want safeguards put in place,” she said.

Karen Belli, of Dallas Township, and member of Gas Drilling Awareness Coalition, emphasized a long list of ills that arise from local gas drilling. She pointed to homeowners in one local community have to use “water buffaloes” for their water supply because of the contamination.

Belli also questioned how Supervisors Ide and Sutton could be involved in the vote knowing their connections to the industry.

Not all in attendance were opposed. Barry Edwards, of Lehman Township, said the concerns about water are just a “harangue.” He added that in Susquehanna County the drilling companies have made the roads “better than the ever.”

Iwanowski said fixed-income elderly residents and farmers facing large debt are finding the gas drilling a financial “godsend.”

He said the ordinance allows EnCana to drill only vertically. If it wishes to expand horizontally underground that will require another vote from the township.

Copyright: Times Leader