JKLM Drilling 14 Utica Wells in Potter County, PA This Year

Potter County, PA

JKLM Energy, a Pennsylvania gas drilling company founded by Buffalo Bills owner Terry Pegula, recently hosted a tour of their active operations in Potter County, PA–the only county they drill in. The tour included “county and local government leaders, representatives of conservation organizations and other guests.” Drillers conduct such tours from time to time (go on one if you get the chance!). It wasn’t so much the tour, but a tidbit of information revealed on the tour that caught our attention: That JKLM is on track to drill 14 new Utica Shale wells in Potter County this year.
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Planned Potter County Frack Wastewater Treatment Facility is Dead

Those who once supported a cutting-edge technology wastewater treatment plant, proposed by Epiphany Water Solutions for Coudersport, PA, are now running away from the project as fast as they can. First was JKLM, the primary (only) customer for the project–the main reason for the project. As we told you on Monday, JKLM, which was rumored to also be the main financial backer, said they are no longer interested (see JKLM Pulls Support of Planned Potter County Wastewater Facility). Now comes the news that the Coundersport Area Municipal Authority (CAMA), which operates the local sewage treatment plant that was going to take the distilled water from the proposed Epiphany plant (clean enough to drink) and discharge it into the Allegheny River, has just voted to rescind the permits and contract they had with Epiphany. With friends like these…
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JKLM Pulls Support of Planned Potter County Wastewater Facility

It’s always disappointing when our side backs down from a fight–especially when the other side is demonstrably lying. On Friday afternoon JKLM, the drilling company founded by Terry Pegula (owner of the Buffalo “Marcellus” Bills), announced it is no longer interested in processing brine (wastewater) from shale wells the company drills in Potter County at a proposed shale wastewater treatment plant in Coudersport, PA (see Shale Wastewater Treatment Plant Planned for Potter County, PA). The cutting-edge technology plant, proposed by Epiphany Water Solutions, was opposed by folks who, frankly, lied about it. The lies got so bad that lawyers for Epiphany (and JKLM) recently warned them to stop their lying (see Opponents Slandering Potter Co. Wastewater Facility Legally Warned). JKLM would have been the primary customer for the facility. On Friday, JKLM issued a short statement (below) to say they are no longer interested. We’re guessing they’ve pulled out because of the negative publicity, which is too bad, because it teaches antis that if they make enough noise and enlist lying media to aid them, they can shut down important projects like this one. Is this the end of the Epiphany project–at least in Potter County? JKLM was the primary customer AND financial backer. You do the math…
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Opponents Slandering Potter Co. Wastewater Facility Legally Warned

Is it free speech to make “false, destructive and defamatory statements” about a company and the project it proposes to build? Is it OK to pretend to be a news organization when you’re really just a shill for Big Green groups, and is your “speech” protected–when it’s false? Members of the Seneca Indian tribe and faux news outlet Public Herald have been put on notice, legally, by lawyers representing the proposed Epiphany shale wastewater recycling facility in Coudersport (Potter County, PA) and driller JKLM to “cease and desist” from their slandering, smearing false statements about the Epiphany project–statements that are misleading the public. Those served the legal notice say it’s an attempt to silence their free speech rights. What do you think?…
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Shale Wastewater Treatment Plant Planned for Potter County, PA

A new shale wastewater treatment facility that works in tandem with a local sewage treatment plant may be on the way in Coudersport (Potter County), PA. Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, filed for a permit to build a centralized water treatment facility in Coudersport in July 2017. The initial application with the Dept. of Environmental Protection (DEP) was deemed “incomplete”–so Epiphany filed again and this time the application was complete. The DEP will hold a Jan. 16 public hearing in Coudersport to gain local resident’s input on the facility. This is not the first we’ve heard of Epiphany. They were one of four winners of the Ben Franklin Institute’s Fifth Annual Shale Gas Innovation Contest in 2016 (see 4 Winners Bag $80K at 5th Annual Shale Gas Innovation Contest). Epiphany started life as a company with a mission to pioneer the use of solar technology to desalinate water so people in poor countries have safe drinking water. Laudable goal. However, Epiphany found they actually need to turn a profit and pay bills first–and their technology works equally well for the oil and gas industry. CONSOL Energy (now CNX Resources) was an early backer and user of their technology. JKLM Energy, owned by Buffalo “Marcellus” Bill’s owner Terry Pegula and with active drilling in Potter County, needs a better way to dispose of frack wastewater. So Pegula turned to Epiphany and Epiphany is working with the Coudersport Area Municipal Authority (CAMA) to make it happen…
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Billionaire Fracker Terry Pegula #160 on Forbes 400 Richest List

Terry Pegula

Terry Pegula is a billionaire who owns both the Buffalo Sabres (NHL hockey team) and the Buffalo Bills (NFL football team). Pegula is the owner of East Resources, once a big driller (and holder of acreage) in the Marcellus Shale. Pegula sold off East’s Marcellus assets and used the money, in part, to buy the Buffalo Bills in 2014, which gave rise to MDN calling the team “the Marcellus Bills”–since it was Marcellus money that kept the team in Buffalo, instead of moving to another market (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Yes, “dirty” fracking money saved the Bills! After selling all of East’s Marcellus assets, Pegula still had an itch to frack, so he started up a new company, JKLM, in order to keep his finger in the Marcellus/Utica pie. JKLM is, as we reported in July, fracking 12 Utica wells in Potter County, PA this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). Fracking is what made Pegula rich. We found it interesting that he made the Forbes 400–a list of the 400 richest people in the United States. Pegula was one of only four people who call Upstate New York home to appear on the list. Here is Pegula’s entry for the list…
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Buffalo Bills Owner Terry Pegula Lives a (Fracking) Double Life

Terry Pegula is an interesting guy. He’s a billionaire who owns both the Buffalo Sabres (NHL hockey team) and the Buffalo Bills (NFL football team). Pegula is the owner of East Resources, once a big driller (and holder of acreage) in the Marcellus Shale. Pegula sold off East’s Marcellus assets and used the money, in part, to buy the Buffalo Bills in 2014, which gave rise to MDN calling the team “the Marcellus Bills”–since it was Marcellus money that kept the team in Buffalo, instead of moving to another market (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Yes, “dirty” fracking money saved the Bills! That’s a real conundrum for the lefties in Buffalo, including the Buffalo News. The lefties love the fact the Bills stayed in town, but it was “blood money” that bought the team. That’s the attitude. Recently the Buffalo News woke up to the fact that Pegula is still fracking. He started up a new company, JKLM, in order to keep his finger in the Marcellus/Utica pie. JKLM is, as we reported in July, fracking 12 Utica wells in Potter County, PA this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The News has finally figured it out, and written an expose on Pegulas “other world,” like he’s hiding another wife and family somewhere secret, living a secret double life. Kind of funny! In a “rare interview,” Pegula is unapologetic for his fracking roots, and for his continued fracking practices. The article shares insights into Pegula’s fascination with the oil and gas industry, and his interest in Potter County, PA…
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JKLM Drilling 12 Utica Wells in Potter County, PA This Year

It’s been a while since we’ve updated you on a little-known (but rapidly becoming better known) company called JKLM Energy. In May 2016, the last time we wrote about JKLM, we told you the company had successfully drilled and was flowing gas from Potter County, PA’s first Utica Shale well (see Potter County, PA’s First Utica Well Fracked & Flowing). JKLM is owned by Terry Pegula, the guy who sold most of his Marcellus assets and used the money to buy the Buffalo Bills football team (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Pegula’s former company is East Resources. [Update: an alert MDN reader informed us that Pegula still owns East Resources.] JKLM is Pegula’s way of keeping his finger in the Marcellus/Utica pie. So what’s the latest? According to a brief article we spotted, JKLM “continues to move forward with an ambitious plan” to drill a dozen Utica wells in Potter County this year…
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Potter County, PA’s First Utica Well Fracked & Flowing

JKLM logoAn MDN reader recently alerted us to a little-known fact: JKLM Energy has successfully drilled and is flowing gas from Potter County, PA’s first Utica Shale well. JKLM is owned by Terry Pegula, the guy who sold most of his Marcellus assets and used the money to buy the Buffalo Bills (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Pegula’s former company is East Resources. JKLM is Pegula’s way of keeping his finger in the Marcellus/Utica pie. We reported in Feb. 2015 that JKLM had signed a lease deal in Potter County (see Potter County, PA Hospital Leases Land to JKLM for Utica Drilling). There was an unfortunate incident during the drilling process (see JKLM Energy Accident Contaminates 5 PA Water Wells with Soap and PA DEP Issues Notice of Violation to JKLM Energy for Spilled Soap). But that got cleared up earlier this year (see DEP Gives All Clear for JKLM-Contaminated Water Wells in PA). Now, the first-ever Utica well in Potter County is flowing gas, and has been since January. Here’s the details…
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DEP Gives All Clear for JKLM-Contaminated Water Wells in PA

Last September MDN told you about an accidental spill (or rather migration) of soap into a local water aquifer in Coudersport, PA (see JKLM Energy Accident Contaminates 5 PA Water Wells with Soap). JKLM Energy was trying to free a drill bit stuck in the hole about 570 feet down. The soap they used migrated into a local water aquifer and contaminated five nearby private water wells with very low levels of soap. Not long after the PA Dept. of Environmental Protection (DEP) issued a Notice of Violation to JKLM (see PA DEP Issues Notice of Violation to JKLM Energy for Spilled Soap). Throughout the “crisis”, if you can call it that, JKLM communicated constantly with local residents to get them what they need, and share full information. Since last October we’d not heard anything about the situation until yesterday when the DEP issued a press release saying two of the wells are now cleared to be used again. Apparently the other three wells belong to the hospital (on whose land JKLM was drilling) and the hospital switched to municipal water so they’re in no hurry to begin re-using those wells again–if ever…
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PA DEP Issues Notice of Violation to JKLM Energy for Spilled Soap

Dawn dish soapOn Monday MDN told you about an accident in Sweden Township (Potter County), PA where JKLM Energy released soap into a water aquifer while trying to fish out a broken drill bit from a Utica Shale bore hole (see JKLM Energy Accident Contaminates 5 PA Water Wells with Soap). The soap migrated into five nearby water wells. JKLM promised to provide daily updates on the situation and their progress with correcting the soap leak, and they’ve kept their word. Our previous post brought you all of the updates through Sept. 27. This post brings you the updates from Sept. 28 through yesterday, Oct. 1. We also have more news about the accident: the PA Dept. of Environmental Protection has issued a notice of violation because of the accident. No word yet on how much money spilling 55 gallons of soap into a water aquifer is going to cost JKLM, but you can be sure it won’t be cheap. Here’s the latest on the accident…
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JKLM Energy Accident Contaminates 5 PA Water Wells with Soap

Dawn dish soapIn February MDN told you about a deal signed by a hospital in Potter County, PA to lease 742.9 acres of hospital-owned land to JKLM Energy to drill Utica Shale wells (see Potter County, PA Hospital Leases Land to JKLM for Utica Drilling). Since that time, drilling under the property (and presumably under surrounding properties) has taken place. And, unfortunately, there was an accident. JKLM discovered that 55 gallons of soap (yes, soap) used to free a broken drill bit around 570 feet down the bore hole on Sept. 18 leaked into the water aquifer and migrated to five local water wells. No one is in danger. The soap is already heavily diluted and will soon disappear. There is no lasting damage. But the way the Harrisburg Patriot-News is covering it, you would think a chemical tanker had overturned irreparably polluting an entire town’s water supply. The way JKLM has responded has been exemplary, testing everything in sight, communicating with landowners and the hospital, issuing press releases with full details on a daily basis…
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Potter County, PA Hospital Leases Land to JKLM for Utica Drilling

UPDATE: A sharp MDN reader tipped us with more of the details on this deal. The Cole property is 742.9 acres (located in the Townships of Eulalia and Sweden, and in the Borough of Coudersport); the lease signing bonus payment is reportedly $2,200 per acre, which makes the up-front payment to Cole Memorial a whopping $1,634,380; and the royalty is rumored to be 15%. Thanks to our great reader!

Cole Memorial Hospital in Coudersport (Potter County), PA has reportedly signed a lease with JKLM Energy to allow shale drilling on a “substantial amount” of hospital-owned property. What we don’t know about the deal is more than we do know. We don’t know how many acres. We don’t know how much the signing bonus was for. And we don’t know what royalty was agreed to. How’s that for good reporting? What we do know is that they signed a lease, JKLM has “ties” to Buffalo “Marcellus” Bills owner Terry Pegula. JKLM is potentially interested in the Utica layer and they will only be allowed to drill on non-hospital campus property…
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