Posts Tagged ‘Williamsport’

College in Williamsport preparing workers

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

WILLIAMSPORT – Like many of his classmates, Mike Harris already has a job in electricity-generation lined up for when he graduates this spring.

The only problem is it will require the Dalton native to relocate to Illinois.

Soon enough, though, future students in these same welding classes at Pennsylvania College of Technology could be in a curriculum that funnels them into local jobs with natural gas drillers working in the Marcellus Shale region.

The Marcellus Shale Education & Training Center at the college is in its early infancy, only envisioned late last year and opened earlier this year, but plans are for it to expand quickly.

A collaboration with the Penn State Cooperative Extension, the center will identify the industry’s work force needs and respond with education tracks that train people for those jobs, said Jeffrey Lorson, an industrial technology specialist at the college who’s running the training center.

“With the escalation and the things with the Marcellus, there was clearly a need in the work force,” he said. “We knew we had a tremendous fit to support the industry.”

The jobs are certainly here, Harris said, and there aren’t enough local workers. “They can’t find anybody,” he said about drillers.

Lorson’s family has a motel in Bainbridge, N.Y., near Binghamton, and the place is constantly packed. “There’s guys coming from all over the place” to work for the drilling companies, he said.

He felt Penn College graduates would be “competitive” for jobs in the industry, which could feed off the college for workers in fields from welding to heavy machinery operation.

“The center has the potential to provide very meaningful training options for local residents,” said Stephen Rhoads, the president of the Pennsylvania Oil & Gas Association. Certain skills, such as building and maintaining infrastructure and inspecting gauges and other moveable parts, “are all skills that could very easily find a home up in Northeastern Pennsylvania,” he said.

“If the industry grows as we expect it to, there will be long-term career opportunities.”

While he plans to enjoy traveling while starting his career, Harris said he’s looking ahead to hometown job security.

“I feel very confident, and I’d love to stay in Northeastern Pennsylvania, but right now as things are starting to take off, I think it’s easier for me to leave and get some experience,” he said.

The center could also help students outline career paths, an idea Harris has already considered. He’s planning to become certified in visual inspections.

“It keeps me out in the field, but it’s managerial,” he said. “You’re in the middle, which is pretty much where I wouldn’t mind being.”

See more photos of the Pennsylvania College of Technology Marcellus Shale Education & Training Center at www.timesleader.com.

Copyright: Times Leader

Property owners claim in lawsuit agent offered lower royalty than allowed by law.

MARC LEVY Associated Press Writer

HARRISBURG — Scores of people who own land above a potentially lucrative natural gas reservoir are seeking to void the drilling leases they signed and accused a land agent of guaranteeing a lower royalty than the amount allowed by state law.

The property owners filed a lawsuit in federal court in Williamsport last week against The Keeton Group LLC, of Lexington, Ky.

The lawsuit stems from a rush of activity by exploration companies to capitalize on the largely untapped Marcellus Shale gas reservoir while natural gas prices are high. Property owners from West Virginia to New York have complained of aggressive “landmen” pushing them to sign leases that allow an exploration company to drill down to the Marcellus Shale, a layer of thick black rock that holds a vast reservoir of gas.

The law cited by the plaintiffs guarantees a property owner at least one-eighth of the royalties from the recovery of oil and gas on their land. However, the suit said the leases violate state law because they give the exploration company the right to subtract taxes, assessments and adjustments on production from the 12.5 percent royalty.

The suit, filed Thursday, said the approximately 130 plaintiffs own more than 18,000 acres in Sullivan and Lycoming counties in northern Pennsylvania. The contracts were signed with Keeton between April 2005 and March 2006, the suit said.

A telephone message left Tuesday with The Keeton Group was not immediately returned. On an outdated version of its Web site, Keeton touts its record as an early arrival on the Marcellus Shale.

“Our group was among the first to acquire lease rights for the current Marcellus Shale drilling activities — not only in Pennsylvania but also in 7 other states under which this vast geological formation lies,” the Keeton site said.

The gas reservoir beneath the Marcellus Shale was long known to exist, but only recently has drilling technology improved enough to cost-effectively tap into it. According to state officials, drilling activity on the formation is taking place at about 275 well sites, and less than 20 sites are producing gas.

To date, exploration companies have spent about $2 billion on leasing land, performing seismic studies and other activities in pursuit of Marcellus Shale gas in Pennsylvania, according to Stephen Rhoads, the president of the Pennsylvania Oil and Gas Association.

Companies as large as ExxonMobil Corp. have shown interest in Pennsylvania, which is one of four states that sit atop 54,000 square miles that analysts say hold the best exploration prospects.

Copyright: Times Leader

Gas-drilling firm increased original request tenfold.

After it received approval to withdraw about 2 million gallons of water daily from the Susquehanna River, Chesapeake Energy Corp. is trying to increase that allowance roughly tenfold.

The Susquehanna River Basin Commission approved the original allowance in September, but Chesapeake applied earlier this week for a modification of the approval to allow withdrawing 20 million gallons each day.

The approval is only for natural-gas drilling in eight counties in New York and 15 counties in Pennsylvania, including Luzerne.

Chesapeake did not immediately return a request for comment.

Whether the request is approved remains to be seen.

“They can request however much, but that doesn’t mean that’s what the commissioners would ultimately approve,” SRBC spokeswoman Susan Obleski said. “We have gotten a few others (requests for withdrawal increases) … but certainly no increase like this.”

The increase seems to be to allow multiple well drillings each day, she said. New techniques, called hydrofracturing, have made it economical to attempt extracting gas from Marcellus shale deposits deep underground, but the drilling is heavily water intensive, requiring millions of gallons for each “fracing” process.

She noted the SRBC is considering changing its rules so that each well pad would require a withdrawal permit instead of one for the company’s entire leased area.

The commission is scheduled to vote on the issue in December. The public can comment on the increase request or rule changes by e-mailing the commission or by attending public meetings.

If you go

The Susquehanna River Basin Commission is holding a public meeting at 7 p.m. on Oct. 21 at Lycoming College’s Academic Center’s Lecture Hall, Room D001, on Mulberry Street in Williamsport. Notice of attendance or submission of testimony should be sent to Richard Cairo at rcairo@srbc.net.

Copyright: Times Leader

Topics like reporting leasing income, transferring leases to beneficiaries to be covered.

The temptation to just sign could seem irresistible. With a few strokes of the pen, some people in the region are being offered the chance to completely change their lives with natural gas leases.

But first, they’re warned, make peace with the fact that the next person will get more. Check the maps, they’re told, check the deed, hire a lawyer, test the water. How much environmental damage is acceptable? How about hassles to daily life?

For those not involved, think Beverly Hillbillies, minus that improbable shot, and then exchange the endearing high jinks for hours of tedious title searching, legal work and stressful decisions with lifelong implications.

So who could blame anyone for simply signing and hiding behind the wads of cash? Well, their children, for one. Because with the great benefits of gas royalties come the great responsibilities of taxation and profit allocation, and, if they’re ignored, the great headaches of the judicial system and familial infighting.

“People are just seeing the (money) as a way to pay taxes … and not thinking about having to report it to the IRS and the tax implications that could have on them … or thinking about general financial planning or investing,” wrote Donna Skog Grey in an e-mail.

Grey, who works for the Penn State Cooperative Extension in Luzerne County, says the extension has been fielding questions on gas leases, environmental issues and lessee rights. What to do with the money, however, hasn’t come up often, she noted, which is why the extension is sponsoring workshops on what to do after the lease is signed but before the money rolls in.

One is planned for Lake-Lehman Junior/Senior High School on Aug. 25.

“There may be some strategies available to reduce the income tax,” said Dale Tice, an attorney with Greevy & Associates, a Williamsport law firm consulting on gas leases. “That’s something they would want to work out with their accountant or financial advisor prior to receiving the payment.”

The workshop will cover various topics, including how to report leasing income – the cash bonuses are just like regular income – transferring leases to beneficiaries and investment options.

“Certainly the cash-bonus payment is an issue,” Tice said. “It could push somebody up into a higher tax bracket. … You’re looking at a large potential tax hit, and without using the strategies that are available, you’ve got issues (in the event of) divorce, creditors.”

To add to confusion, there are health-care implications with elderly lessees who are currently eligible for Medicare or Medicaid, he said.

He noted some families are creating limited-liability companies to distribute the proceeds, and that family limited partnerships can make dividing up ownership of the lease similar to issuing stock.

“Really, the issue here is providing governance, keeping the parents in control of the resource while they’re alive, but at the same time providing for an orderly and easy shift of equity to the next generation,” Tice said. “I don’t think that you have to have it necessarily worked out before you receive your cash-bonus payment, but certainly there’s no disadvantage to thinking about these issues earlier rather than later.”

If you go

A natural gas-leasing workshop entitled “Managing Natural Gas Lease and Royalty Income” is scheduled for 7 p.m. to 9:30 p.m. Monday, Aug. 25 at the Lake-Lehman Junior/Senior High School. The cost is $10 per person. To make reservations, call the Penn State Cooperative Extension at 1-888-825-1701.

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

Copyright: Times Leader