Posts Tagged ‘Staff Writer’

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

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Copyright:  The Scranton Times

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

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Copyright:  The Scranton Times

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

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Copyright:  The Scranton Times

BY JEREMY G. BURTON (STAFF WRITER)
Published: June 24, 2010

Pennsylvania authorities found environmental and safety violations on more than 130 trucks hauling wastewater from natural gas wells during a three-day enforcement blitz last week, the state Department of Transportation said Wednesday.

Overall, officials inspected 1,137 trucks between June 14 and 16 during the multi-agency operation, which was focused on Marcellus Shale drilling sites. Of the 210 commercial vehicles ordered out of service for violations, 131 were transporting wastewater used in the process called hydraulic fracturing.

The added enforcement has been made necessary by the growing gas industry’s heavy truck traffic, especially in rural counties, state police Commissioner Frank E. Pawlowski said in a statement.

Also participating was the state Department of Environmental Protection, the Pennsylvania Public Utility Commission and the federal Motor Carrier Safety Administration.

In Troop R – which covers Lackawanna, Pike, Susquehanna and Wayne counties – officials shut down 25 vehicles and issued 141 citations during 142 inspections.

Sixty-six vehicles were shut down and 358 citations issued in 166 inspections within Troop P, which covers Bradford, Sullivan, Wyoming and part of Luzerne counties.

One hundred nineteen vehicles were shut down in western and central Pennsylvania.

Inspectors especially looked for safety deficiencies that could lead to crashes, authorities said.

Contact the writer: jburton@timesshamrock.com

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Copyright: The Scranton Times

by Laura Legere (staff writer)
Published: June 20, 2010

One natural gas well has been drilled into the Marcellus Shale in Lackawanna County, but much more development is on the county’s doorstep.

Already more than an eighth of the county’s land has been leased to companies planning to drill in the Marcellus Shale, according to deeds recorded with the county.

The total land leased – about 38,000 acres – amounts to an area roughly twice the size of Scranton.

Those leases carry a soft deadline for drilling: Many of them have a primary term of five or seven years, which means the companies have to make some progress to develop the gas within that time or renegotiate to extend the agreement and risk losing the lease to a competitor.

Because the vast majority of the leases in the county – 816 of them – were recorded in 2008, the incentive for developing the gas is approaching.

The land rush has touched a vast area of the county. Land in 20 of Lackawanna’s 40 municipalities has been leased, with the largest concentration of leases in northern municipalities, including Scott, Benton and Greenfield townships, as well as areas of the Abingtons.

Many of the county’s most prominent farmers, including the Manning, Eckel, Roba and Pallman families, have signed leases.

Although much of the land has been leased outside of the population centers along the Lackawanna Valley, leased parcels are not strictly on farms or in rural areas.

Baptist Bible College leased 114 acres on its South Abington Twp. campus.

The Abington Hill Cemetery Association leased 120 acres in South Abington along the Morgan Highway.

Leases have also been agreed to on land near residential areas. For example, 38 acres have been leased along the 900 and 1000 blocks of Fairview Road in South Abington.

Property owners with leases include private individuals, but also churches, golf courses, businesses and community associations. The Greenfield Township Sewer Authority leased 7.3 acres; the Fleetville Volunteer Fire Company leased 65 acres in Benton.

The Newton Lake Association and the Associates at Chapman Lake, two community associations that own their namesake lakes and the area around them, both signed leases.

Religious organizations have also signed leases, including the Harmony Heart church camp in Scott, a 59-acre parcel in Scott owned by Parker Hill Community Church, the Evangelical Free Bible Church in North Abington Twp., and Community Bible Church in Greenfield.

Three national energy companies, Oklahoma-based Chesapeake Appalachia, Texas-based Exco Resources, and Texas-based Southwestern Energy, hold nearly all of the leases.

The amount of Lackawanna County land leased for gas development surprised even people who have followed the subject closely for years.

Lee Jamison, a leader of the multi-municipal Abington Council of Governments, which has hosted educational events and speakers regarding Marcellus Shale drilling since 2008, did not know the extent of the leasing or its reach to areas outside of the rural northwest of the county.

He said despite educational events and active gas drilling in nearby communities, Lackawanna County municipalities have to do more to follow changing legislation and precedent-setting court cases to prepare for the coming development.

“I still think there’s quite a lack of preparedness on the part of the local municipal officials,” he said. “Often times you get conflicting reports and confusing stories.”

Mr. Jamison, who recently lost in the Republican primary race for state representative in the 114th House District, made Marcellus Shale a central part of his platform.

“Over 90 percent of the people I’ve spoken to are in favor of developing the Marcellus resource,” he said, “but they want it done correctly. With that caveat.”

Mary Felley, the open space coordinator for the Countryside Conservancy and a representative of Dalton in the Scranton-Abingtons Planning Association, said residents and municipal officials are “aware that it’s coming but not quite here.”

“I come to my local borough meetings, and people ask what can we do as a borough to regulate this, and we don’t know,” she said.

Because of unsettled case law regarding what role municipalities can take in regulated drilling, “we’re not getting a whole lot of clear guidance on what we can and cannot do here,” she said. “That’s kind of scary.”

There has also been a dearth of local training specifically targeting municipal officials on preparing for gas development. Even if there were such meetings, “my concern is people may not attend those until there’s a lot more activity in the county,” she said.

“This is the way we’ve evolved apparently: you respond to urgent threats you can see. You don’t respond to slow, impending threats that are over the hill somewhere.”

Contact the writer: llegere@timesshamrock.com

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Copyright: The Scranton Times

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

psweet@citizensvoice.com 570-821-2112

Copyright: The Citizens Voice

U.S. Senate candidate Joe Sestak holds a meeting at Misericordia University.

By Sherry Long slong@timesleader.com
Staff Writer

Published on June 13, 2010

DALLAS TWP. – Property owners concerned about the effects of Marcellus Shale drilling on water reservoirs made their views clearly known Saturday afternoon during a packed town hall meeting at Misericordia University’s library.

They wanted a moratorium enacted immediately on all gas drilling throughout the state until more is known on how to safely drill natural gas wells without using dangerous chemicals in the hydrofracturing process. The process uses between 1 million to 1.5 million of gallons of water per well laced with chemicals and dirt under high pressure to force the ground open to release natural gas, geologist Patrick Considine said.

Considine and Democratic U.S. Senate candidate Joe Sestak, whose campaign organized the town hall forum, said that during President George W. Bush’s administration, requirements on oil and gas companies were dramatically lifted. Considine, president of Considine Associates and forum panel member, explained that federal and state officials are not entitled to know what mixtures of chemicals each gas drilling company uses because it is considered a trade secret formula.

He warned that the federal and state governments need more officials to oversee the drilling processes, so the companies are not tempted to cut corners when disposing of the water after the fracking.

“Oil and gas companies need to be held to the same standards as other companies. We don’t need more regulations; we need to find ways to enforce the regulations we have,” Considine said.

People wanting the moratorium drowned out the drilling supporters, including business owner, economist and farmer Joe Grace of Morris in Lycoming County, who sees this industry being one of the biggest Pennsylvania has ever experienced by bringing 88,000 jobs to the state just this year and generating millions in revenue.

Worried about the environment and safety of area water systems, local podiatrist Dr. Thomas Jiunta adamantly disagreed with Grace, pointing to the recent gas well drilling incident in Clearfield County and a gas pipeline accident that killed one worker in Texas.

“This is not a safe activity as we know how to do it right now. We need to stop it first. We are putting the cart before the horse when you are talking about economic boom. You can’t drink gas,” said Jiunta of Dallas, a Gas Drilling Awareness Coalition founding member.

Jiunta added more focus should be put jobs that will support and grow green and renewable energy sources.

Sestak told people he sees gas drilling as an economic boon to the state, yet it needs to be done in a responsible way.

“I think this would be a good way to yes, exploit our resources, but not our communities. Business has to pause. Harrisburg has to stop until we get it right,” Sestak said, adding that he supports enacting a 5 percent severance tax on the drilling companies. He said is in favor of a moratorium

No representatives from the campaign of Sestak’s opponent, former U.S. rep. Pat Toomey, attended the forum.

A statement from the Republican candidate’s campaign staff said Sestak’s plan for taxing the drilling will backfire by pushing those companies to focus on other states.

“Marcellus Shale has the potential to provide Pennsylvania with over 200,000 new jobs and millions of dollars in added revenue, but Joe Sestak’s plan to tax natural gas extraction will chase these jobs out of Pennsylvania. A recent study warned that a tax on Marcellus natural gas output would very likely divert investment to other states like Colorado and Texas. This is further proof that Joe Sestak’s ‘more government, less jobs’ approach is bad for Pennsylvania,” Toomey’s Deputy Communications Director Kristin Anderson said.

State Rep. Karen Boback, R-Harveys Lake, did not attend the forum, but issued a statement Friday stating she was working to develop legislation to protect drinking water from gas drilling practices. Knowing that will take time to become law, she is urging Gov. Ed Rendell to issue an executive order implementing four additional rules before permits can be issued.

Her opponent, Richard Shermanski, a Democrat, attended the meeting, telling people he would not support any form of drilling if he knows it will damage water reservoirs.

Many attending the forum reside in Luzerne County, but some people, including Leslie Avakian of Greenfield Township in northern Lackawanna County, drove an hour to voice their views.

She believes the state’s Department of Environmental Protection needs to be spilt up into two separate agencies because DEP currently issues the permits and regulates the gas companies.

Lynn Hesscease of Dallas told her story of how she became deathly sick after three years of oil leaking in her cellar from a rusted pipe.

She explained how she can’t use any type of products made from petroleum – polyester clothing, petroleum jelly or use plastic cups.

“We have to be very careful it is not near our drinking water and we are not exposed to the chemicals or fumes because if we are, people will get sick,” Hesscease said.

Sherry Long, a Times Leader staff writer, may be reached at 829-7159.

Copyright: The Times Leader

By Joe McDonald (Staff Writer)
Published: June 10, 2010

In a ruling with potentially far-reaching consequences in Pennsylvania’s lucrative and burgeoning natural gas industry, a federal judge in Scranton on Wednesday ruled a Susquehanna County landowner can sue Cabot Oil & Gas Corp. on the grounds it fraudulently misled him into a signing a lease at a lowball rate.

The suit, filed by John Kropa, is one of several cases across the state filed by landowners who claim natural gas drilling companies fraudulently induced them to sign leases that locked them into $25-an-acre rates. In a modern-day version of the California gold rush, companies have been rushing to make deals with landowners across Pennsylvania so they can tap into natural gas from the Marcellus Shale, a geological formation that runs under most of the state.

U.S. District Court Judge James M. Munley, in an eight-page memorandum and order, noted Cabot’s agents told Mr. Kropa that the company “would never pay more than $25 per acre for the lease,” yet his “neighbors were apparently paid more than $25 an acre for leases on their property.”

“They relied on this statement and signed the lease, only to discover later that these statements were false and that others had signed far more lucrative deals” with Cabot, Judge Munley said.

Cabot’s representatives also warned that if Mr. Kropa did not sign a lease, then Cabot would take it anyway by negotiating leases with neighbors and “capture the gas,” leaving Mr. Kropa “without a lease or gas on their land,” the memorandum stated.

Mr. Kropa signed an oil and gas lease with the West Virginia company in 2006 and received a $1,275 payment for allowing the company to explore his 51-acre spread in Brooklyn Twp.

Mr. Kropa’s claims are not unique, especially for many of the leases signed before 2008, said attorney Stephen Saunders, a Scranton energy attorney.

“I think the fraud type claims will most likely be significant in cases where individual plaintiffs own larger tracts of land, say more than 100 acres, or situations where small contiguous landowners control significant areas in the aggregate hundreds of acres or more and are litigating as a group,” Mr. Saunders said.

If Mr. Kropa is successful in proving he was the victim of fraud, he could theoretically renegotiate a new lease, assuming the company still wants the gas under his land.

Judge Munley’s court order also dealt with another volatile issue in the gas drilling business: royalty payments. Mr. Kropa along with other landowers had claimed they were shortchanged by the drilling companies because they were deducing expenses from the royalties.

Judge Munley said that issue had been dealt with by the Pennsylvania Supreme Court, which ruled the royalty agreement was valid under Pennsylvania law.

Contact the writer: jmcdonald@timesshamrock.com

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Copyright:  The Scranton Times-Tribune

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer

 LEHMAN TWP. – Back Mountain residents and local legislators knew parcels of land leased to natural gas companies for exploration were close to two major water sources – the Huntsville and Ceasetown reservoirs, but some had no idea just how close.

There is at least one parcel of leased land on the shoreline of the Huntsville Reservoir, and another parcel just a few hundred feet from the shoreline, The Times Leader learned on Monday.

The discovery was made by title searcher Eric Gustitus, of Exeter, and verified by the newspaper through a Luzerne County property records check.

“I was doing a title search on property next to Penn State Lehman and I came across a gas lease on land close to the reservoir. I was shocked,” Gustitus said, explaining that he heard local activists expressing concerns about potential gas well sites being within a mile or two of water sources.

Gustitus located a 3.72-acre property on the shoreline of the reservoir owned by Paul and Janet Siegel, and an adjacent 10.88-acre property to the west owned by their son, Christopher Siegel, and his wife, Maureen.

“Oh my God, am I concerned,” said state Rep. Phyllis Mundy, D-Kingston, when told of the proximity of the leased land to the reservoir.

“I’m very concerned about the potential for drilling so close to the reservoir. If you’ve been following the news about Clearfield County and how frack water spewed from the well for 16 hours, you can see why potential for contamination of our water supply is of grave concern to me. And I know my constituents are concerned,” Mundy said.

A blowout at a natural-gas well in Penfield shot explosive gas and polluted water as high as 75 feet into the air last week before crews were able to tame it more than half a day later.

EnCana Oil & Gas plans to drill two exploratory wells this summer – one next month in Fairmount Township and another in Lake Township. After drilling an initial vertical well on a site, the company will drill horizontally, using a process called hydraulic fracturing (fracking) to release natural gas from the thick layer of shale about a mile beneath the earth’s surface.

Mundy is a co-sponsor of legislation that would create a 2,500-foot buffer around water sources such as the reservoirs to protect them from possible contamination from gas drilling-related activities.

The Huntsville and Ceasetown reservoirs serve as a water supply for Pennsylvania American Water Co., which serves many of Mundy’s constituents.

Mundy said Pennsylvania American President Kathy Pape had expressed concerns to her about water contamination.

Pape said on Monday she is working with Mundy to prepare testimony for the state Public Utility Commission on Marcellus Shale drilling.

Harveys Lake resident Michelle Boice, a member of the Gas Drilling Awareness Coalition and a commentator on environmental issues related to gas drilling at local meetings, said allowing any kind of gas drilling operations so close to the reservoir is “beyond any kind of reasoning., and it goes to show there are no rules or protections in place for the people.”

Dr. Tom Jiunta, a founding member of the coalition, said it’s “insane how close they are with these leases” to water sources.

Paul Siegel said he’s just as concerned as his neighbors about the potential for reservoir contamination, and that’s why there’s a protective clause in his lease with EnCana. “We have the right not to let them on our land, and we wouldn’t do that because we want to live here,” he said.

Siegel said he agreed to lease the land because he got the impression that everyone around him was signing gas leases.

“When everyone around you is signing, it gets kind of like a mad rush. So, if they’re going to be drilling next to us, and they’re going to be down there anyway, we said we don’t mind if they go under us,” Siegel said.

Christopher and Maureen Siegel could not be reached for comment. Neither could EnCana spokeswoman Wendy Wiedenbeck.

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Copyright: The Times Leader

By Steve McConnell (Staff Writer)
Published: June 2, 2010

CARBONDALE – Plans to develop an extensive railroad facility to serve the natural gas industry in Fell Twp. moved forward Tuesday.

The Carbondale Industrial Development Authority unanimously approved a motion to allow Honesdale-based Linde Corp. to purchase a nearly two-acre parcel in the Enterprise Drive business park. The company intends to use it for unloading materials from railcars for shipment via truck. It also would include storage facilities and on-site processing of drilling fluids.

The company is currently developing an adjacent property, purchased from the local railroad authority, that is part of its overall plan to have a suitable staging area for on-site processing of drilling fluids and a railroad facility capable of serving the industry, said company Vice President Christopher A. Langel.

Authority Chairman Bob Farber said there has been ambiguity as to what exactly Linde Corp. intends to develop on the new property since the company has been meeting with the board about it.

“You’ve never given us site plans,” Mr. Farber said.

Mr. Langel said the company has submitted plans and has been meeting with the board since at least October about the project.

Among plans discussed Tuesday, existing railroad tracks, which run through the heart of the city, will be extended to enable off-loading of materials at the site.

The company, which has invested more than $500,000 in the so-called Carbondale Yards Bulk Rail Terminal, is also partnering with Houston-based Baker Hughes to mix sand, water and chemicals into a concentration needed for prospective natural gas drilling sites in the area.

Mr. Langel described it as a nontoxic mixture.

The company also is eyeing the former Wells Cargo building, a large-scale facility inside the business park, as an additional storage and distribution point related to the overall operation, Mr. Langel said.

The authority board tabled a motion that would give Linde Corp. permission to purchase and develop the Wells Cargo property.

In addition, the company is in negotiations with the Susquehanna River Basin Commission to withdraw water from the Lackawanna River for potential use by the natural gas industry. The industry needs an abundance of water to help bust open underground rock formations to release natural gas, a process called hydraulic fracturing.

City administrators have said they support the project for its job-creation potential. It is expected to be completed by the end of the month.

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Copyright:  The Scranton Times-Tribune