Posts Tagged ‘vice president and general manager’

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

From staff and wire reports

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

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

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

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

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

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

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

EOG operates nearly 300 wells in Pennsylvania.

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

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

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

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

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

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

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

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

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

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

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

Copyright: Times Leader

The order against EOG Resources Inc. will remain in place until DEP can finish its investigation.

MARC LEVY Associated Press Writer

HARRISBURG — Pennsylvania regulators halted work Monday at dozens of unfinished natural gas wells being drilled by the company whose out-of-control well spewed out explosive gas and polluted water for 16 hours last week.

The order against Houston-based EOG Resources Inc. will remain in place until the Department of Environmental Protection can finish its investigation and until after the company makes whatever changes may be needed, Gov. Ed Rendell said.

The order stops EOG from drilling and hydraulically fracturing wells. It affects about 70 unfinished EOG wells into the gas-rich Marcellus Shale formation.

Another concern was the apparently bungled attempts to notify the right emergency-response officials about the accident. Fines are likely, said Environmental Protection Secretary John Hanger.

Nobody was hurt in Thursday’s blowout in a heavily forested section of north-central Pennsylvania.

The accident shot highly pressurized gas and wastewater as high as 75 feet. The gas never caught fire, but state officials had worried about an explosion and ordered electrical service to the area cut before specialists secured the well at about noon Friday.

About 35,000 gallons of wastewater have been pumped into holding tanks so far, the company said.

Monitors in a nearby spring show signs of pollution, although Hanger said the spring is in such a rural area that it is not viewed as a public health hazard. Officials say they have detected no pollution in larger waterways that feed public water supplies.

The state says the company is cooperating and is supportive of the stop-work order.

Gary L. Smith, vice president and general manager of EOG’s Pittsburgh office, said the company regrets the accident and would continue to work with Pennsylvania officials.

“After the investigations are complete, we will carefully review the findings with the goal of enhancing our practices,” Smith said.

“When all outstanding issues are resolved, we look forward to resuming full operations in Pennsylvania,” Smith added.

DEP officials said the well’s blowout preventer failed, and they were investigating whether the failed equipment was the primary cause.

A blowout preventer is a series of valves that sit atop a well and allow workers to control the pressure inside.

Hanger and EOG said the blowout preventer had been tested successfully by the company on Wednesday morning.

Copyright: Times Leader