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Marcellus Shale Companies in Pennsylvania Looking to Fill Jobs and Contract with Local Businesses

Companies involved in drilling, processing and transporting Marcellus Shale gas in Pennsylvania are looking to contract with local businesses and hire local people to work for them. On the list are…

  • Contractors for:
    • clearing land
    • constructing well pads
    • setting up rigs
    • running wirelines
    • hauling waste
    • hauling dirt
    • mechanical work
    • civil work
    • electrical work
    • environmental surveyors
    • installers
  • Real estate/office space
  • Drilling crews
  • Frac crews
  • Right-of-way agents
  • Suppliers for:
    • drilling mud
    • frac fluid
    • steel pipes
    • valves and fittings
    • natural gas compressors
  • Engineering firms
  • Environmental firms
  • Professionals:
    • geologists
    • geophysicists
    • environmental engineers

The companies looking to hire include:

  • East Resources
  • Chief Oil & Gas
  • Laurel Mountain Midstream
  • MarkWest Energy
  • Talisman Energy

For more details, along with contact names and inside tips for submitting a bid or applying for a job, see the article linked below.

*Pittsburgh Business Times (Apr 29) – The Marcellus Shale: How your company could get in on the action

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National Fuel Does Pipeline Deal with Statoil and East Resources to Move Marcellus Shale Gas to Canadian & Northeast US Markets

National Fuel has struck a deal with Statoil and East Resources and is expanding two pipelines to handle Pennsylvania Marcellus Shale gas, sending it to markets in Canada and the Northeastern U.S. The announcement says National Fuel will build 16 miles of new pipeline from Corning, NY to Tioga County, PA, and construct a new interconnection with the Tennessee Gas Pipeline in Ontario County, NY, among other improvements.

From the National Fuel press release:

WILLIAMSVILLE, N.Y.–(BUSINESS WIRE)–National Fuel Gas Supply Corporation (“Supply”) and Empire Pipeline, Inc. (“Empire”), the companies that comprise the Pipeline and Storage segment of National Fuel Gas Company (NYSE: NFG) (“National Fuel”), have reached major milestones on two pipeline expansion projects that are the first in the industry designed to receive natural gas produced from the Marcellus Shale and transport it to key markets of Canada and the Northeast U.S. Supply has entered into a binding precedent agreement with Statoil Natural Gas LLC (“Statoil”) for 100 percent of the capacity on Supply’s “Northern Access” expansion project. Empire also has a binding precedent agreement in place with anchor shipper East Resources, Inc. (“East”) for Empire’s “Tioga County Extension” project, and is concluding negotiations for additional capacity with a second shipper. The precedent agreements provide for Statoil and East to sign, after satisfaction of conditions, firm transportation service agreements under which Supply and Empire will transport natural gas for Statoil and East.

Read More “National Fuel Does Pipeline Deal with Statoil and East Resources to Move Marcellus Shale Gas to Canadian & Northeast US Markets”

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NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling

These are the bald facts of life for New York landowners who own land in either the New York City or Syracuse watershed areas and may want to lease their land for Marcellus Shale gas drilling: Forget it. That’s the loud and clear message from NY Department of Environmental Conservation (DEC) Commissioner Pete Grannis. After the DEC’s announcement of last week, no energy company in their right mind will be willing to drill in New York’s watersheds (although drilling companies currently drill safely in the Susquehanna River watershed in PA, and are trying to drill in the Delaware River watershed in PA).

Reaction from landowners in New York has been mixed. While some believe watershed landowners are being unfairly penalized, others think this may speed up the process of drilling for everyone else by removing a key objection to drilling—that drilling may contaminate city water supplies.

From a press release issued by the NY DEC last week:

April 23 – New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis today announced that due to the unique issues related to the protection of New York City and Syracuse drinking water supplies, these watersheds will be excluded from the pending generic environmental review process for natural gas drilling using high-volume horizontal drilling in the Marcellus shale formation. Instead, applications to drill in these watersheds will require a case-by-case environmental review process to establish whether appropriate measures to mitigate potential impacts can be developed. There are 58 pending applications for horizontal drilling in the Marcellus shale; no applications are located in either the New York City or the Skaneateles Lake watersheds (Syracuse utilizes the Skaneateles watershed).

Read More “NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling”

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Joint Landowner’s Coalition of NY Makes Appeal to Landowners

The Joint Landowner’s Coalition of NY has put out a plea for donations. Drilling in New York may not happen unless landowners can generate enough noise to break through the resistance in Albany. Here is the letter reproduced in full from the JLCNY:

A Message from the JLCNY President Dan Fitzsimmons – April 27, 2010

Fellow Landowners – I don’t have to tell you we have much at stake.  But I do need to sound an alarm:  the time for us to act is NOW.  We are organized.  We are prepared.  And although we have worked intensely over the last two plus years, we are outmanned, outspent, outmaneuvered.  We need to step up our game, and we have a plan to get it done.  But we desperately need your financial support.  Some of you have given generously financially.  Some of you have poured blood, sweat and tears into this effort.  And some of you will make your first donation right now.  We need as much as you can afford to give to fund our efforts to:

  • Hire professionals in Albany who can represent us and make sure our voices are not drowned out by the better-funded extremists.  These professionals can open doors, cut through clutter and red-tape for us and focus us on the most effective strategy for being heard where it counts.

  • Get the word out:  you’ve heard the same arguments I hear:  more people are against drilling than are for it.  We know that’s not true – but we have to erase that perception.  The best way to do that is to blanket our area with lawn signs, drown our airwaves with pro-drilling ads, promote speakers at public forums who can support our issues with facts, erect billboards with clear messages, etc.

  • Continue to support landowners.  In some respect, the work begins when the moratorium is lifted and leases are signed.  Who will advocate for landowners in their negotiations and relations with energy companies?  Who will be a watchdog with the regulatory agencies?  Who will make sure we have the best and latest information on and about the industry and the technology surrounding us?  Landowners will need the JLC more and more as time goes by and as the stakes continue to rise. We cannot sustain it without your support.

We are seeking support from a number of channels:  from corporations and industry; from foundations and other organizations who may provide grants for our work; from local business and farm organizations.  But the most important support we need RIGHT NOW is from you.  Please give what you can today – $10, $20, $100, $500 or more.  See if your company has a matching donation program – or if you know of any other source you can approach for us – please do.  Use PAYPAL on our website: JLCNY.org or send a check to:

PO Box 2839
Binghamton, NY 13902

Thank you from the bottom of my heart.  We will get there, but only if we stay together on this.

Dan Fitzsimmons
President JLCNY

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Kinder Morgan Building New Marcellus Shale Pipeline from Pennsylvania to Michigan

Kinder Morgan, a pipeline and energy storage company, will build a new 250-mile pipeline from Pennsylvania to the Cochin Pipeline in Michigan to move Marcellus Shale gas to processing facilities and markets in the Midwestern U.S. and Canada.

From the Kinder Morgan press release:

HOUSTON, April 20, 2010 – Kinder Morgan Energy Partners, L.P. today announced plans to modify and expand the existing Cochin Pipeline system to provide a solution for transporting natural gas liquids (NGL) from the Marcellus Shale Basin to fractionation plants and chemical markets near Sarnia, Ontario, and Chicago, Ill.

Kinder Morgan plans to build approximately 250 miles of NGL pipeline from the Marcellus Shale Basin in southern Pennsylvania to the Cochin interconnect at Riga, Mich. From Riga, Kinder Morgan anticipates that product will be transported through the existing Cochin Pipeline system to Windsor, Ontario, and then through the Windsor-Sarnia Pipeline to Sarnia. Kinder Morgan also plans to reverse the eastern leg of its Cochin pipeline in order to move NGLs from Riga to the Chicago area, where it expects to build an additional pipeline to connect to existing fractionation facilities and chemical plants.

“Our proposed pipeline and key existing infrastructure offers NGL producers the quickest and most efficient solution to get their product to the market,” said Don Lindley, vice president of business development for Kinder Morgan’s Products Pipeline group.

The pipeline will be designed to transport mixed NGLs (Y-grade), as well as purity NGLs such as ethane, and will have an initial throughput capacity of 75,000 barrels per day and can be expanded to handle up to 175,000 barrels per day.

The recent decision by Canada’s National Energy Board directing the reconnection of the Cochin Pipeline to the Windsor-Sarnia Pipeline will enable Cochin Pipeline shippers to have access to the Sarnia chemical complex. Kinder Morgan anticipates offering transportation from Marcellus to Sarnia for under 14 cents per gallon.

Kinder Morgan expects to move forward with an open season in the second quarter of 2010.

Kinder Morgan Press Release (Apr 20) – Kinder Morgan Offers Quick and Efficient Solution to Move Marcellus NGLs to Market

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A New and Potentially Safer Way to Treat Marcellus Shale Wastewater

A Pittsburgh startup company formed at the Pittsburgh Allegheny-Singer Research Institute believes it has developed a better solution than current alternatives for treating wastewater from drilling Marcellus Shale gas wells. Frac Biologics Inc. was founded by physicians, so it’s no surprise the technology comes from the medical community:

“The idea for the company came from our work with biofilms, which are (cell) communities that we try to manipulate or get rid of to treat human disease,” said Christopher Post, a physician and CEO of the 3-month-old company. Other founders are physician William Costerton and Garth Ehrlich. All three are Allegheny-Singer directors.

Allegheny-Singer researchers found the biofilms love to eat heavy metals, such as strontium, nickel, even uranium. The metals, in effect, fuel the biofilms, Post said.*

Water used in drilling Marcellus wells often comes out of the well containing small quantities of heavy metals. One of the objections to hydraulic fracturing is that wastewater from drilling eventually needs to be returned to the environment, and if it’s laced with heavy metals it is not safe. If Frac Biologics is successful with their concept, perhaps some of those objections can be addressed.

*Pittsburgh Tribute-Review (Apr 22) – New company says it can safely handle Marcellus wastewater

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Speakers at Marcellus Midstream Conference: Infrastructure Critical to Future Success

According to speakers at today’s Marcellus Midstream Conference and Exhibition in Pittsburgh, infrastructure will be play a key role, and if not ramped up quickly, may create problems for drillers in the Pennsylvania Marcellus Shale.

“The opportunity for Marcellus Shale production growth can be overwhelmed by a lack of infrastructure,” said Scott Soler, managing director of Houston-based private equity firm Quantum Energy Partners.

Soler said an estimated $10 billion must be spent on pipelines, processing and storage facilities within five years to keep up with projected production.*

Bentek Energy, also presenting at the conference, said the industry has announced or already begun more than 30 pipeline projects, including new pipelines or expansion of existing pipelines.

MDN recently reported on new processing, fractionation and storage facilities announced by both Dominion and MarkWest. Infrastructure will play a key role in drilling in the Marcellus for years to come.

*Pittsburg Tribune-Review (Apr 21) – Marcellus Shale infrastructure inadequate, energy exec says

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Apartment Rentals, Commercial Property Leasing Benefits from Marcellus Drilling in Wellsboro, PA

Depending on your viewpoint, one of the benefits (or drawbacks) of an increase in drilling activity is the rise in rental prices for apartments and houses. The borough of Wellsboro in Tioga  County, PA (population about 3,300) is experiencing a real estate boom due to drilling. Prices for apartments around Wellsboro have doubled:

[Real Estate Agent Victoria] Costanzo says the average rental rate in Wellsboro use to range between $400 to $600 a month. But now with the natural gas companies moving their employees into local areas, they are willing to pay more and rents have doubled.

The Wellsboro Mayor [Jim Daugherty] says people, who originally were going to sell their homes, are now opting to rent or lease their properties for higher prices.*

Office space and garages to store equipment are also in high demand, and two area hotels have been sold to drilling companies to house workers.

*WETM Channel 18 TV (Apr 21) – Rent Prices on Rise in Wellsboro

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Bad News for NY Landowners: DEC Says Drilling Won’t Begin Until Mid-2011

NY DEC Comm. Pete Grannis MDN does not want to depress and demoralize the good citizen landowners (and drillers) of New York State, but we must share some disheartening news. It seems comments made today by New York Department of Environmental Conservation (DEC) Commissioner Pete Grannis, the man who heads the very agency working on new rules for drilling in New York, indicate drilling in New York State will not begin until spring or summer 2011.

As part of an Earth Day speech at Onondaga Lake near Syracuse, Grannis made some revealing comments:

Grannis predicted the DEC will finish drafting regulations that companies will have to follow to receive drilling permits by fall. He said he expects drilling to begin by spring or summer 2011.*

Why is it bad for landowners and drillers? The longer we go without drilling, the more likely it simply won’t happen at all—ever. In addition, every month that passes with no drilling in New York means thousands of more jobs permanently relocated to other states in the Marcellus Shale, including Pennsylvania and West Virginia, where drilling is already happening. Once drilling companies decide on where to locate their headquarters and branch offices, and once other businesses like wastewater treatment plants and trucking firms get established, they almost never relocate. If those jobs and capital investments go to PA and WV, New York will never see them. A real shame.

Finally, waiting until 2011 is bad because it means the next governor of New York, likely Andrew Cuomo, will have to sign off before drilling can begin. If Cuomo is elected, it’s not at all clear whether he would be favorable to drilling. In fact, it is likely he will be opposed.

There’s still time. Landowners and concerned citizens who recognize just how important this is to New York’s future need to make their voices heard loud and clear to their elected representatives—and people like Cuomo need to understand elections may very well hinge on how they come down on the drilling debate.

It’s time to turn up the heat on the DEC—they’ve had long enough. They are intentionally delaying and stalling for political reasons—not safety reasons.

*Syracuse Post-Standard (Apr 20) – Environmental Conservation Commissioner Pete Grannis says hydrofracking likely to begin in New York in spring or summer 2011

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PA DEP Secretary John Hanger Summons Marcellus Shale Drilling Companies to a May Meeting

PA DEP Sec. John Hanger The PA Department of Environmental Protection (DEP) is summoning all Marcellus gas drillers operating in Pennsylvania to meeting. MDN wouldn’t exactly use the term “mandatory attendance required” to describe the meeting, but reading between the lines it certainly seems that way.

MDN welcomes the DEP keeping a close eye on drillers, especially in the aftermath of Dimock. However, the tone of the press release is confrontational and bullyish, rather than collaborative and respectful.

From the official DEP summons press release:

HARRISBURG—Department of Environmental [Protection] Secretary John Hanger announced today that he has called a meeting of oil and gas companies with permits to drill in the Marcellus Shale to discuss what steps the industry must take to prevent gas migrating from wells and polluting Pennsylvania’s natural resources, which can create a public safety risk.

The meeting will be held on May 13 in Harrisburg.

“The Department of Environmental Protection has a constitutional and statutory obligation to protect Pennsylvania’s environment. That right is not for sale and is not subject to compromise,” said Hanger.

“Drilling for natural gas beneath our soil can be done responsibly without putting the citizens of Pennsylvania, their property or livelihoods at risk,” added Hanger. “I am urging the industry to come and discuss how to effectively and safely prevent gas migration, protect our natural resources, and ensure that what happened to the residents of Dimock Township, Susquehanna County, does not happen elsewhere.”

Last week, DEP took further action against Cabot Oil & Gas Inc. after it failed to address migrating gas discovered in 2009 from drilling operations that contaminated groundwater and the drinking water supplies of 14 homes in the region.

“Gas migration is unacceptable and the department is taking every precaution necessary to address this issue to protect our citizens and their communities,”   Hanger added. “In addition to increased oversight, the department has proposed tougher regulations to meet the growing demand and new drilling technologies including improving well construction standards to protect from gas migration.”

PA DEP Press Release (Apr 20) – DEP to Meet With Drilling Companies to Discuss Ways to Prevent Dangerous Gas Migration Situations, Safeguard Homes, Water Supplies

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Delaware River Basic Commission Continues to Obstruct Drilling in PA

The Delaware River Basin Commission (DRBC) continues to obstruct drilling in the Marcellus Shale in Pennsylvania. The latest energy company to experience frustrations in dealing with the DRBC is Hess, which holds leases to 126,000 acres in Wayne County, PA:

“It’s a big issue,” said Gene Linscomb, a Hess Corp. business manager based in Honesdale. “We’re asking them [the DRBC] for input.”*

The thing is, the DRBC has not approved a single, solitary Marcellus shale operation in the watershed. Not one.

The commission, a West Trenton, N.J.-based regulatory authority that has jurisdiction over water resources in the 13,539-square-mile Delaware River watershed, has yet to green light a single natural gas production well.*

Hess has been asking the DRBC, repeatedly, what they want them to do so Hess can begin to drill.

The [DRBC] has stated it does not intend to be a roadblock to natural gas development – something many Wayne County residents who signed leases do not believe.*

So what is the DRBC doing? They’ve requested $250,000 to do a study about drilling in the Marcellus Shale in the watershed. They’re hoping to get federal money for the study “late this year.” In other words, they’re not doing anything. If you’re a landowner in the Delaware River Basin, or a drilling company, don’t hold your breath for drilling to begin any time soon.

*Scranton Times Tribute (Apr 17) – Hess to Wayne County: ‘(We’re) here for the long term’

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NY Marcellus Shale Drilling Regulations Ready by Fall 2010?

When will the new Marcellus shale drilling regulations be ready in New York State? That’s the multi-million dollar question for both energy companies and landowners. Pro-drilling groups are pushing for the new regs to be released by early summer, but the New York Department of Environmental Conservation (DEC), the agency tasked with rewriting the regulations, is now making noise about “late summer or early fall.”

Department of Environmental Conservation Commissioner Alexander “Pete” Grannis, speaking to the state Business Council on Thursday, said the Supplemental Generic Environmental Impact Statement (SGEIS) could be finalized by late summer or early fall, according to media reports.

The reports also indicated drilling permits could be issued by the end of the year.*

According to Richard Downey, a landowner and member of the Unatego Area Landowners Association:

“This is the first time he’s [Grannis] said it and I tend to believe him,” Downey said. “My own opinion is the man has always kept his word and his own schedule.”*

*Oneonta Daily Star (Apr 19) – Drilling regs could be final by fall

Also see: Binghamton Press & Sun-Bulletin (Apr 15) – N.Y. review of Marcellus hits snags

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Opinion: How the AP and Other Media Outlets “Wag the Dog” Against Drilling in the Marcellus Shale

Google News Search "Louis Matoushek" MDN notes with some amusement how news is manufactured—and is thankful blogs are around to help set the story straight. Case in point: A few days ago the Associated Press ran a single story about the “raging debate” over gas drilling in Northeast Pennsylvania. While the drilling debate is certainly ongoing, and there are plenty of people on both sides of the debate, the AP story would have us believe the forces of good (people against drilling) are rising up in overwhelming numbers to oppose the forces of evil (the nasty energy companies who want to rape and pillage the unspoiled landscape, along with the greedy landowners who enable them).

That single AP anti-drilling story was picked up by no less than 250 media outlets, including large city newspapers, television stations and everything down to small town newspapers—all in the course of two days. One would have to be blind to miss the coverage and not think, “Maybe there are a lot of people opposed to drilling after all!” And all from a single story run again and again and again.

The AP story starts this way:

A few hundred yards from Louis Matoushek’s Wayne County farmhouse is a well that could soon produce not only natural gas, but a drilling boom in the wild and scenic Delaware River watershed.

Energy companies have leased thousands of acres of land in Pennsylvania’s unspoiled northeastern tip, hoping to tap vast stores of gas in a sprawling rock formation—the Marcellus shale—that some experts believe could become the nation’s most productive gas field.*

But wait, it’s not enough that the villainous drilling companies want to spoil the unspoiled land in PA. While that argument will sway some readers, let’s throw in the thing that works every time, the one thing that will magically turn everyone against drilling: Water.

Standing in the way is a loose coalition of sporting groups, conservationists and anti-drilling neighbors. They contend that large-scale gas exploration so close to crucial waterways will threaten drinking water, ruin a renowned wild trout fishery, wreck property values, and transform a rural area popular with tourists into an industrial zone with constant noise and truck traffic.

Both sides are furiously lobbying the Delaware River Basin Commission, the powerful federal-interstate compact agency that monitors water supplies for 15 million people, including half the population of New York City. The commission has jurisdiction because the drilling process will require withdrawing huge amounts of water from the watershed’s streams and rivers and because of the potential for groundwater pollution.*

PA learns fast. They look over the border at New York where City politicians bleat about the New York City watershed as if drillers are about to poison the water supply of the entire City, and say, “Hey, if it works for them, maybe it will work for us.” And so, the shrill voices in PA have found their argument: Drilling pollutes water. Run the story (i.e. lie) enough times and after a while people will believe it.

Don’t fall for the lie. And landowners: Make your voices heard!

*Pittsburgh Tribute-Review/AP (Apr 19) – Gas-drilling foes fear for local water supplies

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Chesapeake Energy’s Permit to Use State Route 1007 in Bradford County Revoked Until Damage is Repaired

Bradford-County-SR-1007 Chesapeake Energy’s permit to use a PA State Route in Bradford County has been revoked—now a second time—by the Pennsylvania Department of Transportation (PennDOT).

From the PennDOT press release:

HARRISBURG, Pa., April 15 — A road use permit issued to Chesapeake Energy Corporation for moving its drilling trucks and other equipment over State Route 1007 in Bradford County was revoked because of the company’s failure to deal with severe damage to the roadway, Transportation Secretary Allen D. Biehler, P.E., announced today.

Chesapeake was granted a permit to put heavy trucks and equipment on the road, known locally as Spring Hill Road in Tuscarora and Stevens townships. The road normally has a 10-ton weight restriction, and Chesapeake’s permit carried the understanding the company would be responsible for repairs.

“Chesapeake may not use this route until it makes the required repairs,” Biehler said. “We understand the importance of Marcellus Shale drilling to the region’s economy, but we will remain vigilant in requiring action to keep the roads safe and properly maintained for public use.”

PennDOT revoked the permit after Chesapeake failed to respond to two notices of unsafe conditions on the roadway. Under the terms of the permit, Chesapeake is to proactively monitor pavement conditions and immediately begin repairs as needed to keep the road safe.

On March 1, PennDOT revoked Chesapeake’s permit for State Route 1001 in Bradford County for the same reasons. The permit was restored after the road was closed for about one week and the company made the required repairs.

*PR Newswire (Apr 15) – PennDOT Revokes Road Use Permit for Chesapeake Energy Corporation on State Route 1007 in Bradford County Until Repairs Are Made

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Penn State to Monitor 50 Water Wells to Measure Marcellus Drilling Affects on Water Supplies

Penn State will monitor water wells in Pennsylvania to see if they are affected by drilling activity. MDN applauds this effort:

Penn State’s School of Forest Resources along with several Penn State Cooperative Extension county offices have received funding from the Center for Rural Pennsylvania and the Pennsylvania Water Resources Research Center to conduct a research study on the potential impacts of Marcellus gas drilling on rural drinking water supplies.

The data collected from the study is for research purposes, Penn State officials said.

About 50 private water wells will be selected for free water testing of 15 water quality parameters. Water samples will be collected by trained Penn State researchers both before and after nearby Marcellus gas well drilling has occurred.

Interested residents of the southwest region of Pennsylvania can take the eligibility survey here, call Dana Rizzo at 724-837-1402 or e-mail.*

*Fayette Daily Courier (Apr 12) – Ongoing Penn State study planned on impact of gas drilling

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Radiation Testing Shows Marcellus Shale Drill Cuttings are Safe for Chemung County, NY Landfill

Chemung County, NY officials have released a report they commissioned from an independent certified health physicist that show levels of radiation in the Marcellus Shale drill cuttings coming from Pennsylvania Marcellus drilling operations to the Chemung County landfill are “well below” U.S. Environmental Protection Agency standards for radiation.

The gist of the report is that the soil that the county landfill would accept from Marcellus Shale drilling poses no health threat from radiation, said County Executive Tom Santulli.

“These people are experts. They made it very clear that this material is less radioactive than the countertops in our houses and soil in our gardens,” Santulli said. “My message is simple—this stuff is not toxic. It’s no more radioactive than the soil in your garden and bricks on your house. All this testing verifies that. This is way below any EPA levels.

“This would be equivalent to taking dirt from your backyard and using it in landfill,” he said. “It can be used for cover. It’s that safe.”*

However, the debate still rages. Those opposed to drilling claim there is a significant threat to human health from the drill cuttings. County Executive Santulli says those opposed “have zero credibility” on the matter with no facts to back up their claims.

For more information on both positions, see the full article in the Star-Gazette.

*Elmira Star-Gazette (Apr 11) – County study says soil from gas drilling is safe