JKLM Energy

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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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