Posts Tagged ‘Staff Writer’

By Elizabeth Skrapits (Staff Writer)
Published: July 22, 2010

FAIRMOUNT TWP. – In one Luzerne County municipality, a natural gas drilling rig towers in the background as a guard keeps vigil against unauthorized personnel at the gate that is kept open to allow trucks to pass in and out of the site.

In another Luzerne County municipality a few miles away, new electrified fencing surrounds a meadow and engineers’ trucks kick up dust along the freshly re-graveled road.

On Wednesday, Encana Oil & Gas USA Inc. started drilling the county’s first exploratory natural gas well in Fairmount Township, and also began site preparation for a second well in Lake Township.

Encana spokeswoman Wendy Wiedenbeck said the drilling components have arrived and operations are moving forward on the site owned by Edward Buda in Fairmount Township, on Route 118 behind the Ricketts Glen Hotel. The well will be drilled about 7,000 feet deep, then go out 2,500 to 5,000 feet horizontally.

Asked what motorists can anticipate near the site, Wiedenbeck said, “We would expect some additional truck traffic. There is signage on the road leading up to and away from the location.”

Noise and dust are side effects of the drilling process, which it is estimated will take about 30 days, Wiedenbeck said. Encana will monitor and mitigate both the dust and the noise at the site, and the company is working closely with Fairmount Township officials, she said.

About a quarter of a mile down Route 118 from the drilling site, Good’s Campground owner Frank Carroll was cutting firewood Wednesday afternoon. He noticed there has been a lot of truck traffic at the drill pad.

“Crazy thing is, all I can hear is the backup of the trucks – you know, beep-beep-beep,” Carroll said as he piled the cut wood in the bed of his pickup truck and pulled a blue tarp over it. “It doesn’t bother me, but I can hear it.”

Carroll says he wakes early and sleeps soundly, so he doesn’t expect the 24-hour-a-day, seven-days-a-week drilling operation to disturb him.

“I’d sleep through the end of the world,” he joked.

One thing does bother Carroll: the speculation. Will the well pay off in royalties to landowners who leased mineral rights?

“Everybody’s been talking about it for two years, how they’re going to get rich or they’re going to get nothing,” Carroll said. “And they’re still talking about it. They all think they’re going to be rich – and they can’t all be rich.”

As soon as drilling is complete in Fairmount Township, the rig, from Horizontal Well Drillers of Purcell, Okla., will be taken to the Lake Township site.

“Efficient work operations is to go from one area to the other,” Wiedenbeck said.

In Lake Township, heavy truck traffic warning signs are in place on Meeker, Outlet and other roads to be traveled by the approximately 2,100 total trucks it will take to create the drilling pad, drill the well and bring in the roughly six million gallons of water needed for hydraulic fracturing.

Robert and Debra Anderson live so close to the Zosh Road site that will be transformed into a natural gas drilling pad they could throw a baseball from the front yard of their trailer home and easily have it land over the electrified wire fence surrounding the meadow belonging to Paul and Amy Salansky.

The Andersons love the area, which is full of wildlife: “I have turkeys, I have deer, I have foxes, I have bear … I even have ducks in my pond,” Debra Anderson said.

Things were quiet on Wednesday afternoon, but in the morning, there was a “big meeting” at the drill pad site, Robert Anderson said.

Just then a pair of engineers drove by in a Borton-Lawson truck, stirring dust from the road as they passed.

But not much dust. The Andersons are pleased with the work Lake Township’s three-man road crew has done on the dirt-and-gravel roads around the site: enlarging them, smoothing them, lining the drainage ditches with rock. Debra Anderson declared she hasn’t seen the roads look that good in the 15 years they’ve lived in the township. Encana’s paying for the road maintenance, Robert Anderson said.

Lake Township will provide dust control with calcium chloride applications on the roads, he said. But what about the noise and light when drilling starts?

“We’ll deal with it. You can’t stop progress,” Robert Anderson said.

He called Encana a “reputable company, not like the one that’s up in Dimock,” and said its representatives are good about telling residents what’s going on. He said he attended the last Lake Township meeting, at which dozens of natural gas drilling opponents showed up, and he said they should go to the company for information, not the supervisors.

“People that go to the Lake Township meetings should be Lake Township residents,” Robert Anderson said. “It’s no one else’s concern.”

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizens Voice

By Elizabeth Skrapits (Staff Writer)
Published: July 21, 2010

HARVEYS LAKE – If the state Department of Environmental Protection can make borough officials do something about sewage pollution in the lake, why can’t it step in to prevent potential contamination from natural gas drilling?

That was the argument state Rep. Karen Boback, R-Harveys Lake, approached council with Tuesday. She asked borough officials to meet with DEP and the state fish commission to discuss a one-year moratorium on drilling near the lake.

Her suggestion was greeted with applause from the approximately 80 people who filled council chambers. Council members were open to the idea of contacting the state agencies.

“As far as I’m concerned, the precedent is set,” Boback said. “In my letter to (DEP Secretary John) Hanger, I put it was due to the infiltration problems during storm events. Our concern is the potential contamination with fracking fluids, and if that’s not a legitimate argument, I don’t know what is.”

Hydraulic fracturing or “fracking” involves blasting millions of gallons of chemical-treated water thousands of feet underground to break up the shale rock and release the natural gas.

Because of problems with raw sewage flowing into the lake during heavy rains, DEP cited the borough and ordered its officials to come up with a corrective action plan. As a result, the General Municipal Authority of Harveys Lake put a DEP-approved voluntary moratorium on new sewer connections in July 2003 until inflow and infiltration into the system was cut back. DEP allowed the authority to relax the moratorium in 2006.

“If they’re talking about infiltration, what about fracking water spewing all over the place?” Boback said, referring to a recent well blowout in Clearfield County.

Boback said she is writing legislation similar to what she introduced to protect drinking water sources, such as the Huntsville and Ceasetown reservoirs. DEP allows natural gas drilling up to 100 feet away from bodies of water. Boback wants that changed to 2,500 feet.

She also wants to prohibit drilling beneath drinking water sources and lakes, such as Harveys Lake, that are governed by a borough or second-class township.

Resident Michelle Boice urged council to take a “strong, proactive stance” with DEP on the issue.

“My concern is that we should be working closely with DEP as a government, and ask the tough questions as to why, when they have been a strong presence in this borough for more than 40 years, they are not doing something about controlling where these drilling permits are being issued,” she said. “Right over the hill, a half mile at Alderson, a drilling permit has been issued.”

Boice was referring to the Sordoni family’s Sterling Farms, where Carrizo Marcellus LLC plans to drill one of two exploratory wells in the Noxen area. She also noted so far 300 acres in Harveys Lake Borough have been leased to gas companies.

Councilman Ryan Doughton said gas companies can lease anywhere. However, zoning restricts where they can drill.

The only place where mineral extraction is allowed in the borough is in the small manufacturing zone on the northern side of the Old Lake Road, Doughton said. Natural gas companies seeking to drill in other parts of the borough would need a zoning hearing for a conditional use permit, he said.

According to resident Guy Giordano, the underground-spring-fed Harveys Lake is a source of the Ceasetown Reservoir, where thousands of people in the Wyoming Valley get their drinking water.

“Council needs to take a stronger position on this and ask the state for help, because this not only affects our wells around Harveys Lake, it affects the drinking water for the entire Wyoming Valley,” he said.

Councilman Rich Williams III said he has been studying the state Oil & Gas Act, trying to find out what council as a local government can do – state law supersedes local government.

“Please don’t think what you say is falling on deaf ears, because I practically use this thing for a pillow,” he told residents.

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizen’s Voice

By Elizabeth Skrapits (Staff Writer)
Published: July 20, 2010

LEHMAN TWP. – The company drilling the Back Mountain’s first exploratory natural gas well will take care of township roads, but residents should be proactive in reporting problems, supervisors said Monday.

Encana Oil & Gas USA Inc. will start site preparation in August to drill an exploratory natural gas well at 203 Zosh Road in Lake Township, not far from the Lehman Township border.

During the process, trucks leaving the site will use Ide, Meeker and Slocum roads in Lehman Township to reach state Route 118. Encana has agreed to maintain the roads in equal or better condition during the drilling process, Supervisor Chairman David Sutton said in response to a question by resident Joseph Rutchauskas.

Encana paid for repaving the stone arch bridge on Slocum Road, but the township’s road department filled in all the potholes, Supervisor Douglas Ide said. But the company will take that over when work begins, he said.

“The day they start trucks, the maintenance is theirs for the duration,” Ide said.

Rutchauskas said work had already started, because Zosh Road – which becomes Ide Road in Lehman Township – was closed, so Encana should be responsible now. The supervisors disagreed.

Penn State’s Center for Dirt and Gravel Roads is overseeing a project with the Luzerne County Conservation District in which Encana is paying to strip and pave a 100-foot section of Zosh Road to see how it will hold up under heavy truck traffic.

According to plans filed with the Luzerne County planning and zoning department, Encana anticipates 16 to 18 weeks of traffic during which a total of approximately 2,100 trucks will travel on Lake and Lehman township roads: 200 during site preparation, 100 during the well drilling and 1,800 during the completion phase, when tankers will bring in the roughly 6 million gallons of water needed for hydraulic fracturing.

Encana has submitted a $956,844 bond to cover Outlet, Ide, Meeker Outlet and Slocum roads and the Slocum Road stone bridge. Township officials stressed Encana’s willingness to work with them.

“Anything we have billed Encana for, we have been paid within 30 days,” Treasurer Alvin Cragle said.

“They have been nothing but cooperative in everything we’ve asked them to do,” Sutton agreed.

Rutchauskas asked the supervisors to keep an eye on the drill site and coordinate with Lake Township so residents will be aware of issues like road closings.

Sutton said they would, but “we don’t have the resources to watch 24-7,” he said. He said residents need to be proactive and call if they see problems.

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizens Voice

By Patrick Sweet (Staff Writer)
Published: July 18, 2010

Harry Traver and Doug Brody glanced at each other, stood up and followed their neighbor’s lead.

“We didn’t drive all the way out here to make changes,” neighbor Joel Field responded when Carrizo Oil & Gas proposed amendments to the multimillion-dollar deal the three came to finalize.

Before the men made it very far, the company reeled them back to the bargaining table at its Pittsburgh office and hammered out a natural gas deal that includes the mineral rights to roughly 8,500 acres.

Willing to walk away from a deal worth more than $4 million – with the potential to become much more than $40 million – the three men exemplify the roughly 135 families they represent.

“Ninety-five percent of the people that signed live here,” Mr. Brody said. “I mean, this is our home … It’s been our group’s home for years and generations in some cases. We took our time and I think we did it right.”

Noxen is a community that came together and protested the closing of its post office on a bitter December morning. They embrace the camaraderie of a community that answered the call when its historic train station was threatened with demolition and raised money to protect it.

So, when gas company land agents approached residents in rural Noxen Twp., they demonstrated perhaps their greatest skill: their ability to unite.

Strength in numbers

Residents gathered under the pavilion behind Noxen United Methodist Church to formulate their plan of action. Across the street from his Whistle Pig Pumpkin Patch, Mr. Field found himself responsible for preserving the hopes of his family, friends and neighbors for a lucrative gas lease. The Noxen Area Gas Group was born.

“I kind of stood up and said, ‘Well, we ought to try this and we ought to try that,’ and everybody said, ‘OK. Great. Go do that,’” the 47-year-old farmer said.

“The responsibility was awesome.”

Over a 2½-year span, those responsibilities included innumerable hours of courthouse research, days studying the natural gas industry and negotiating deals that never succeeded. He even traveled to Houston to market the land that their farms, orchards and businesses have rested on for generations.

“We didn’t sign in the end, but for quite a long time we were dancing with Chief,” Mr. Field said. “The only reason we danced with Chief Oil and Gas was because we did courthouse research that revealed they had a couple thousand acres right contiguous to our block.”

Mr. Field didn’t realize exactly what he was getting himself into that day. He never thought he would have to hunt down the estranged brother of a neighboring family to gain his signature on their lease.

“It actually took a couple months to find the brother in California,” Mr. Field said. “They actually tracked him down through his union.”

Just as much, Mr. Traver and Mr. Brody – whom Mr. Field called upon to help organize the group – didn’t think they would be studying geology or helping to cover a several thousand dollar attorney bill.

Two days after the group signed the lease on July 10, Mr. Field, Mr. Traver and Mr. Brody sat down with Times Shamrock Newspapers for an exclusive interview about the experience. It was a complete about-face for the tight-lipped trio who refused to jeopardize any part of the deal before it was done.

Sitting at the wooden picnic table behind Mr. Field’s house, not far from the barn where the group held some of its meetings, the three men smiled as they shared stories.

“Getting up to speed on (natural gas) and keeping the people together was always, I guess, our biggest concern,” said Mr. Field.

“But the people stayed together and that’s what made it happen,” Mr. Traver added.

“Some of our principles in the very beginning, when we first started out, was to stick together as a family, as a community,” Mr. Field continued.

A boomtown again?

It’s not difficult to imagine why the community would unite so well. The tiny farming community has struggled to strengthen its economy ever since Mosser Tanning Co. left town in 1961.

The tannery employed enough people to force the construction of a second hotel and a row of houses nearby. It brought unprecedented life to Noxen’s economy that was once based on just more than a dozen farms and a handful of small businesses.

“When the tannery left, everything left with it,” Noxen resident Pearl Race said. “This was a booming town at one time.”

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.”

Carrizo paid each lessor $500 per acre up front with an additional $4,500 and 20 percent royalty if the company finds a decent supply of gas.

On the day of the signing, Mr. Traver said, an elderly woman who was having trouble getting by stepped up to the table, leased her roughly 1-acre property and took her check. Mr. Traver’s wife, Dawn, offered to take her to the bank.

The woman, Mr. Traver said, declined the offer.

“I want to keep it for a couple days just to look at it,” she said.

The possibility of a check more than 10 times the amount they just received, it seems, has most folks embracing the words of former Alaska Gov. Sarah Palin: “Drill, baby, drill.”

“We want production,” Mr. Field said. “We’re not just out there to get the bonus money. The value in this arrangement is in the royalty.”

Is the gas there?

The problem is companies aren’t quite sure the gas is there. Carrizo bought 2-D seismic data, senior landman Phillip Corey said, to get an idea of what they’d find.

“Based on what we see, it looks OK,” Mr. Corey said. “You’re trying to extrapolate a picture with three data points, though, when what you really need is a hundred.”

The uncertainty is why Carrizo didn’t pay the full $5,000 per acre up front. The company will drill two exploratory wells to test the area’s potential before cutting any more checks.

The Noxen group is split into southern and northern areas. Carrizo will drill one well in each area. If gas production is strong in the north but not the south, Carrizo will only have to pay northern landowners and vice versa.

Wooden stakes with neon flags tied to the tops mark the location of the northern well in Mr. Field’s pumpkin patch. The Sordoni family’s huge Sterling Farms property will host to the southern well.

The Sordoni property is one of a few properties directly abutting Harveys Lake. A provision in the lease prevents Carrizo from drilling within 500 feet of any structure or water source.

Still, some folks are concerned with what might unfold.

Noxen resident Viola Robbins, 72, has family in Dimock Twp., the poster-child community for environmental disasters caused by natural gas drilling. Thousands of gallons of potentially carcinogenic drilling fluid spilled just outside the town.

“They can’t do nothing,” Ms. Robbins said. “(The gas company) brought them water for drinking and cooking.”

Toxic water forced Ms. Robbins’ great-niece Andrea Ely and her family to move back in with her parents.

“I’m against it,” Ms. Robbins said. “Maybe it’s me. It might be a different story if I had lots of land for them to drill on.”

Still, many others have faith that Carrizo won’t make the same mistakes as Cabot Oil and Gas did in Dimock Twp.

“We all own farms down through here,” Mr. Traver said. “When these people say that they are worried about the water, they aren’t as worried as these guys, because that’s how they make their living.”

Contact the writer:

psweet@citizensvoice.com

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Copyright: The Scranton Times

BY STEVE McCONNELL (STAFF WRITER)
Published: July 15, 2010

A company developing a railroad facility to serve the natural gas drilling industry is also seeking to withdraw 905,000 gallons of water a day from the Lackawanna River in Fell Twp. to support its operation.

Honesdale-based Linde Corp. began developing the Carbondale Yards Bulk Rail Terminal this year inside the Enterprise Drive business park to provide a transportation mode for materials and to mix fluids on-site that natural gas drilling companies use in the drilling process.

Susan Obleski, a spokeswoman with the Susquehanna River Basin Commission, which regulates surface water withdrawals in the watershed, said the commission is reviewing Linde’s application to see if flow meters, which measure the amount of water in the river at all times, will need to be installed around the withdrawal point as a way to mitigate potential impact to aquatic life, especially during drought conditions.

Linde officials have said they intend to mix the drawn water with sand and a chemical concentration to create a “drilling mud.”

The river withdrawal point, which is located near Linde’s facility, is also upstream from a stretch of the Lackawanna River from Archbald to Olyphant designated as wild, “trophy” trout waters with stringent fishing regulations enacted by the state Fish and Boat Commission.

Larry Bundy, a law enforcement assistant regional supervisor for the state Fish and Boat Commission, which also regulates state waters and aquatic wildlife, said Wednesday that he “wasn’t aware” of Linde’s application. However, he said his agency relies on the river basin commission’s biologists and staff to make determinations on whether water withdrawals may impact trout or other aquatic life.

“I haven’t seen any problems,” he said of other commission-approved water withdrawals in his Northeast Pennsylvania jurisdiction.

As of Monday, the river basin commission had only approved only one water source withdrawal for natural gas-related development projects in Lackawanna County – 91,000 gallons a day from the South Branch of Tunkhannock Creek in Benton Twp.

It has approved dozens of others throughout its 27,510-square miles jurisdiction, however, including 22 water withdrawal applications specifically for natural gas projects in Susquehanna County.

The Susquehanna River Basin Commission could vote on Linde’s application at its September meeting.

Contact the writer: smcconnell @timesshamrock.com

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Copyright:  The Scranton Times 

Those against Encana Oil & Gas plans ponder appeals for permits already granted.

By Steve Mocarsky
Staff Writer

As Encana Oil & Gas officials await a hearing next month on zoning permits for 10 new natural gas wells in Luzerne County, gas-drilling opponents are contemplating a second appeal for permits that already have been issued to the company.

Encana recently filed applications with the Luzerne County Zoning Hearing Board seeking temporary-use permits and special exceptions for drilling five natural gas wells and height variances for building a gas processing facility at a site nestled between Loyalville, Hickory Tree and Meeker roads in Lake Township.

The company also applied for the same types of permits for drilling wells on two properties in Fairmount Township – two wells on a site northeast of the intersection of state routes 487 and 118, and three wells on adjoining land to the northeast.

The zoning hearing board has scheduled a hearing for 7 p.m. Aug. 3 to hear testimony on those applications.

The Lake Township site, owned by 4P Realty of Blakely, is about 600 acres. The two Fairmount Township sites consist of 13 parcels – some owned by William Kent of Benton and others owned by Jeffrey Hynich of Lake Township – spanning nearly 480 acres. They are referred to as the Red Rock/Benton Gas Consortium Lands in a lease with Encana.

Encana would move forward with drilling wells on those properties if two exploratory wells in Lake and Fairmount townships prove successful.

Drilling on the Fairmount Township property of Edward Buda is expected to begin within five to 10 days, Encana spokeswoman Wendy Wiedenbeck said.

Encana won zoning approval for drilling on a Lehman Township property owned by Russell W. Lansberry and Larry Lansberry in April but withdrew the application last week – less than a month after township residents Dr. Tom Jiunta, Brian and Jennifer Doran and Joseph Rutchauskas filed an appeal of the zoning approval in county court.

Rutchauskas said on Tuesday that attorneys for the Gas Drilling Awareness Coalition are checking into the possibility of appealing the issuance of zoning permits about two weeks ago for Lake Township property owned by Amy and Paul Salansky on which Encana plans to begin drilling later this summer.

The county zoning hearing board approved the permit applications for the Salansky property in May.

Rutchauskas said he was told by a zoning official that it was too late to file an appeal on the Salansky permits because one must be filed within 30 days of the zoning hearing board’s decision.

“We’re having lawyers check into the timeframe of when the permits were approved and when they were issued. Our stance is that the 30-day timeframe is from the day the permits were issued, not from the day they were approved,” Rutchauskas said.

He said the permits could not be issued until the board received several response plans from Encana, such as a traffic management plan and an emergency response plan.

Eight permits for the Salansky property were issued on June 25 – the same day Encana submitted the plans – and two more were issued on June 28, according to zoning office records.

Rutchauskas said there’s no way zoning officials could have reviewed all the plans the same day, and the permits should not have been issued until the plans were thoroughly reviewed.

“How can you issue a permit without reading the required plans? You can put a Superman comic book in there and they wouldn’t know the difference. Do it slow, take your time, at least open them. I’ve been going through those books almost eight hours,” Rutchauskas said.

Luzerne County Planner Pat Dooley said officials are checking into how an appeal can be filed on the issuance of a zoning permit.

Dooley said he’s not aware of anyone ever appealing the issuance of a zoning permit, only the approval of a permit.

Contact the writer smocarsky@timesleader.com

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Copyright:  The Times Leader

By Elizabeth Skrapits (Staff Writer)
Published: July 11, 2010

DALLAS TWP. – Mary Alice Frederick became nervous in March when she discovered her neighbor, the Irem Temple Country Club and the Masonic Village development, had leased mineral rights to a natural gas company.

“I can’t put a chicken coop in my backyard but people can put heavy industry all around the township. I don’t understand that,” the retired Dallas school teacher said. “It doesn’t make sense. It doesn’t seem fair.”

A proposal on the table that would allow natural gas companies to take gas from beneath people’s properties regardless of whether or not they have leased their mineral rights, Frederick now fears losing the peace and quiet of her beloved neighborhood.

In exchange for a tax on natural gas extraction, gas companies are seeking what they call “fair pooling,” legislation that would require property owners without leases to allow drilling beneath their land in exchange for a share of royalties to be determined. However, the gas companies could not put a drilling rig on unwilling owners’ properties. Landowners call “forced pooling.”

“Gas companies are just bullying their way in and telling the legislators what they want. It should be the reverse,” Lehman Township resident Joseph Rutchauskas said. “It’s a democracy, not a corporate dictatorship.”

Rutchauskas lives near two sites permitted for natural gas wells. In August, Encana Oil & Gas USA Inc. intends to start preparing one in nearby Lake Township for drilling, and has all the requirements for a well in Lehman Township. Encana recently notified Lehman Township supervisors they do not plan to drill the third well in Lehman Township.

“I do not support that one bit because I feel it’s a violation of my rights,” Rutchauskas said about forced pooling. “I don’t think anyone should have the right to tell me they can drill under my land without my consent.”

He said his development, which has 10 properties, is protected by covenants that do not allow drilling of any kind, including beneath the property.

“We would have to change the covenants to allow it, and nobody in the development wants to do that,” Rutchauskas said.

He said the question of whether the covenants would hold up under a forced pooling law would have to be answered legally.

“I would take it to court to whatever level necessary,” Rutchauskas vowed.

Irem Temple Ancient Arabic Order Nobles Of The Mystic Shrine have leased 355.91 acres to Chesapeake Appalachia, LLC. The land completely surrounds Frederick’s half-acre property.

The concept of forced pooling scares Frederick, who was already concerned about the potential to turn her quiet suburban street into an “industrial zone.” She opposes natural gas drilling because of potential harmful effects on the environment. She also doesn’t like the idea that foreign investors from countries such as United Arab Emirates and China have interests in natural gas companies.

“I don’t want to be part of this,” Frederick said. “I do have a conscience.”

Irem Recorder Harry Wood said the organization has not heard anything from Chesapeake about plans for the site.

“I don’t blame them,” he said in response to residents’ concerns about forced pooling.

However, Wood said gas drilling would be done far enough away from homes that they shouldn’t be affected, even in the case of horizontal drilling.

“Everybody has the wrong idea about that. It would never be allowed on any of these properties. If any drilling would be done it would be on the top of the hill, or away from the residences,” he said.

Developing the Irem Golf Course is also not an option, he said.

“I’m not going to take a $7 million golf course and put a drilling rig in the middle of it,” Wood said.

eskrapits@citizensvoice.com, 570-821-2072

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Copyright:  The Citizens Voice

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.

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Copyright:  Times Leader

By Elizabeth Skrapits (Staff Writer)
Published: July 5, 2010

Luzerne test wells’ results awaited

Depending on how its first natural gas wells turn out, Luzerne County could attract a lot of attention from potential drillers.

“I suspect everybody’s interest levels will be piqued if Encana gets successful,” said Steve Myers, director of Land and Legal Affairs for Citrus Energy Corp.

Encana Oil & Gas USA Inc. is poised to start drilling two exploratory natural gas wells this summer, one in Fairmount Twp., on the property of Edward Buda off Route 118, and the second in Lake Twp. on the property of Paul and Amy Salansky on Sholtis Road.

Drilling for natural gas in an area once known for anthracite coal mining is a daring move, by industry standards.

“Everyone’s nervous about going that far south,” Mr. Myers said.

Maps of the Marcellus Shale show the formation running throughout Luzerne County. However, its shale may not be very rich in gas due to the proximity of the anthracite coal-producing areas and high temperatures, which can turn the gas into carbon dioxide, Mr. Myers said.

“There’s some concerns that the Marcellus Shale was subjected to some high temperatures, high pressures that would have converted the shale to graphite and cooked off whatever gas was in place,” he said.

There’s a line that exists, but nobody knows exactly where it is, Mr. Myers said.

“One side, it’s going to be productive; you throw a rock and it’s not,” he said. “Kind of like a summer shower. It can rain across the street, but it doesn’t rain in your yard.”

Encana officials are willing to take the risk.

“We’ve said all along that it’s exploratory, and we have to prove we can develop commercial quantities of natural gas,” Encana spokeswoman Wendy Wiedenbeck said.

“We’re not focused on what other operators are doing; we’re just focused on acting responsibly and getting the wells drilled. And the well results will speak for themselves.”

Although the drill rig is expected to arrive in Fairmount Twp. at some point after today, and the drilling and completion process will take an estimated 65 to 75 days total, production results won’t be in until the end of the year or even 2011, Ms. Wiedenbeck said.

Gas production for the Fairmount Twp. and Lake Twp. wells will have to be reviewed before Encana makes further plans, she said.

At one time Citrus had considered drilling in Luzerne County, leasing hundreds of acres in Lake and Fairmount townships in partnership with Tulsa, Okla.-based Unit Corp. But the partnership broke up and Citrus ended up selling off almost all its leases to Williams Production Appalachia.

Williams Inc., also based in Tulsa, does natural gas drilling and processing, and owns thousands of miles of pipelines, including the Transco, which runs through northern Luzerne County – conveniently close to Encana’s planned drilling sites.

Williams has received permits from the state Department of Environmental Protection to drill three wells in Columbia County: two in Benton and one in Sugarloaf Twp.

Another natural gas company, Oklahoma City-based Chesapeake Energy, also has dozens of leases in Luzerne County but hasn’t made a move yet.

“Chesapeake is still evaluating the area. However, as we drill each new well, we learn more about the potential and the productivity of particular geologic areas, and this information guides our decisions about where to focus future activity,” Brian Grove, Chesapeake director of corporate development, stated in an e-mail.

For the time being, Citrus is focusing its efforts in Wyoming County, according to Mr. Myers. The company has drilled four wells so far in a successful partnership with Procter & Gamble, and has more in the works.

Citrus also plans to drill its own wells in Wyoming County, where it has leased large chunks of land – as have Chesapeake, Carrizo Marcellus LLC, Chief Oil & Gas, and others drawn by the prospects of production in Luzerne County’s neighbor to the north.

“It’s very much a hotbed of activity,” Mr. Myers said. “Any time you get good production, people are going to come. … We expect to have plenty of company here in the future.”

Contact the writer: eskrapits@citizensvoice.com

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Copyright:  The Scranton Times

BY STACI WILSON (Staff Writer)
Published: July 2, 2010

HOP BOTTOM – Linda and Bob Lewis didn’t sign up to be part of Susquehanna County’s natural gas plan, but the industry is coming to them anyway.

The Lathrop Twp. property owners live along Route 2002, outside Hop Bottom, where Chief Gathering, a subsidiary of Chief Oil and Gas, is constructing a 12-inch pipeline headed to a nearby compressor station.

The pipeline construction is taking place on private property along a state Department of Transportation right of way.

It is the construction along the road that has Mrs. Lewis alarmed.

“They’re going right through the yard,” she said. “I’m so upset about it. PennDOT has given out permits to run the pipeline through the right of way and they say there is nothing we can do about it.”

PennDOT spokeswoman Karen Dussinger confirmed that the agency granted the gas company permission to install the pipe in its right of way. Ms. Dussinger said the right of way varies from place to place and could range between 25 feet and 50 feet from the centerline of the road.

“Property owners often believe they own the land right up to the road itself, but that isn’t so,” said Ms. Dussinger.

She explained the right of way is an easement the state gives PennDOT in order to maintain the roads.

Mrs. Lewis is concerned about the proximity of the pipeline to her home.

“I don’t know how they can go so close to homes with a 12-inch pipeline,” she said. “If that thing blows, we’re off the map.”

She said she has known about the pipeline coming through the area since January, but only recently learned it would be built along the side of the road she lives on. She said she has tried to contact Chief Oil and Gas for months but her calls were not returned.

Officials at Chief Oil and Gas could not be reached for comment.

Department of Environmental Planning, Bureau of Oil and Gas spokesman Dan Spadoni said the agency requires erosion and sediment control plans along proposed pipeline routes. He said a storm water discharge plan may also be required on pipeline projects.

DEP would also require a construction and encroachment permit if the pipeline was going to cross any streams or impact a wetlands area. DEP does not regulate the material and construction standards or set a minimum depth the pipeline has to be laid below the ground.

“It’s scary to have a 12-inch pipeline right out in front of your home,” Mrs. Lewis said. “That’s a lot of pressure.”

Contact the writer: swilson@independentweekender.com

View article here.

Copyright:  The Scranton Times