Rochester Democrat & Chronicle (Oct 4):
Focus of natural gas exploration in Pa., not N.Y.
Not a lot of interest in this article. But there’s this useful paragraph:
Fortuna Energy Inc. of Chemung County, for example, has spent $350 million since April on wells in Pennsylvania, said spokesman Mark Scheuerman.
From a Reuters news story on the Financial 24 website:
Exxon Mobil Corp, the world’s largest publicly traded company, has leases on 19,400 acres in the Marcellus Shale, a formation that is said to hold vast amounts of natural gas.
In September, Exxon bid $85.2 million for 18 blocks in the Marcellus, a large shale formation that runs through parts of New York, Pennsylvania, Ohio and West Virginia.
Exxon, based in Irving, Texas, was the high bidder on six Marcellus blocks, paying a total of $22.4 million for acreage in Tioga and Lycoming counties in Pennsylvania, company spokesman Patrick McGinn, said.
Read the full article: Exxon has 19,400 acres in the Marcellus shale
Pennsylvania Rep. Dave Reed (Republican, Indiana, PA) “gets it” when it comes to drilling in the Marcellus. Gov. Ed “fast Eddie” Rendell (Democrat), wants to tax drilling in the Marcellus. According to the Indiana Gazette (PA), fast Eddie’s plan calls for:
Read More “Finally Some Common Sense About (Not) Taxing Marcellus Production in Pennsylvania”
On February 27, the Pennsylvania Department of Environmental Protection (DEP) served Cabot Oil & Gas with a “Notice of Violation” claiming Cabot’s drilling activities in the Carter Road area of Dimock Township, PA caused some local private water wells to be contaminated with methane (see the MDN article Cabot Oil & Gas Served with “Notice of Violation” in Dimock, PA). One month later, the DEP seems to have reversed its position.
Buried in the Saturday, March 28 edition of the Scranton Times-Tribune we get the story that recent test results from the DEP show no indication of water contamination due to Cabot’s hydro-fracturing activities in the area. Yes, you read that right. Cabot’s Marcellus drilling activity is not to blame for methane (natural gas) water contamination in the Dimock area according to the PA State DEP.
The DEP will continue testing and monitoring, and Cabot will continue providing water for four homes that it has been providing water to, due to elevated levels of methane in the water. But the DEP seems to have just reversed its position that Cabot is the cause of methane appearing in a few local water wells. Big news that deserves a big headline.
What has the DEP tested for that might indicate hydrofacturing has caused contamination?
Indicators could include total dissolved solids, chlorides, specific conductivity, pH, alkalinity, hardness, sodium, calcium, barium, iron, manganese, potassium and aluminum.
The DEP is promising they will continue to be vigilant in Dimock:
Residents “expressed concern to us that methane wasn’t the only thing impacting their groundwater, their wells,” DEP spokesman Mark Carmon said. “We’ll continue to look at both.”
Cabot spokesman Ken Komoroski said the company is “pleased” that the department has found no indication of wells being tainted from gas well hydro-fracturing activity, and will continue to work with the DEP to ensure the safety and health of residents.
MDN will continue to cover this story as it develops.
Read the full article: Dimock gas wells pass DEP test
Read the full DEP press release: PA DEP Continues to Analyze Dimock Water Supplies
Lock Haven University (PA) produces a regular online publication called The Hemlock. The current issue, dated March 2009, focuses on drilling in the Marcellus region in Pennsylvania. The issue is quite long with different articles focusing on different aspects of Marcellus drilling. As you can imagine, the articles are mostly negative and “the sky is falling” in nature. Fair enough. They have a viewpoint and wish to air it. Those of us who believe drilling can occur safely, but understand there will be problems along the way, have nothing to fear from the very worst the anti-drilling side can dish out. I rather enjoy reading such articles because I always learn something.
What do I learn from the opposition? As an example, one of the articles contributed is from a retired state forester–Butch Davey–offering this bit of insight into why he’s against drilling in the Marcellus:
Reading the children’s book The Lorax by Dr. Seuss to my grandchildren brings home the lesson that we need to carefully conserve the natural resources of Pennsylvania on both private and public land. It is up to us to start living in a sustainable way so that future generations won’t be saddled with mistakes we made because of a myopic view of natural resource limitations or outright greed.
There you have it folks. Dr. Seuss, a leading light of environmental knowledge and highly-sought after expert source, is one of Mr. Davey’s inspirations.
About half way down the issue, amongst the articles recounting the gloom and doom of drilling, are a couple of landowner perspectives. One perspective is from a landowner who purchased his land without purchasing the mineral rights. Doh! When the energy companies show up and drill and you don’t get a dime from it, of course you’re going to be against it and focus on every single shortcoming and ill-effect of drilling (noise, traffic, etc.). Such a perspective is hardly impartial. Lesson to those buying land in the Marcellus: Be sure you purchase the mineral rights–and don’t blame the Realtor for your own stupidity if you don’t purchase the mineral rights, as this person did.
But, somehow The Hemlock added a pro-drilling perspective! About the only pro-drilling aspect of the entire issue–no doubt their idea of “balance.” The perspective is offered by Dr. Ralph Harnishfeger, a biology professor at Lock Haven–someone who knows and cares about nature and the environment. He recounts how he and his wife (also a professional biologist) and his neighbors “did it right” by banding together, working out a lease that protects them all and protects the environment, while at the same time allowing drilling on their property. A win/win for everyone. He acknowledges there is always some environmental impact from drilling, but when done right, the negatives can be minimized. Slogging through the entire Hemlock issue is worth it just to read his short contribution. He concludes his perspective with this:
We believe that energy development can occur responsibly and in a manner consistent with good environmental stewardship. Farmland has been significantly altered by man from what existed prior to the arrival of Europeans on this continent and such change has dramatically improved food production and the resulting quality of life for many humans. This transition has increased habitat for some species and decreased habitat for others. It is unrealistic to expect a return to primeval forest and in the context of our highly altered environment we prefer well-managed and planned land use with the additional protections guaranteed through our lease.
It seems at its core much of the debate over drilling in the Marcellus, as is the debate for most environmental issues, is a clash of philosophies, as Dr. Harnishfeger alludes to in his summary statement. Many people erroneously believe we can return “nature” to it’s pre-man condition. They view man and his activities on this planet as an infestation rather than as a species with the God-given (or Nature-given, if you’re a non-believer) right to manage the resources around us. It is not only impractical, but idiotic to ignore the energy needs of humans and think we can return to animal skins and clubs and give up electricity, machinery and the many advances of the last 500 years of human-kind. That view is truly unsustainable.
Does drilling for natural gas impact the environment? Sure does. Do accidents happen along the way? Yes. Do we throw the baby out with the bathwater with respect to drilling because of some negatives? No way! Although The Hemlock issue is long, I encourage you to read it, particularly Dr. Harnishfeger’s contribution (especially if you’re a landowner) so you get some insights into how to “do it right” when it comes to creating a lease for your land.
Read the issue here: The Hemlock, Volume 2, Issue 6 (March 2009)
It seems drilling in the Marcellus is not only good for landowners and energy companies, but also for education and jobs. From an article published on iStockAnalyst (reprinted from The Daily Review, Towanda, PA):
Lackawanna College will begin offering an associate’s degree this fall in natural gas technology to prepare students to work in the growing local natural gas industry, and many of the required courses for the degree will be offered at the college’s Towanda Center.
In addition, Lackawanna College will soon start giving accounting students at the college’s Towanda Center the option of customizing their degree to prepare them to work in the accounting side of the natural gas industry, said Larry D. Milliken, director of energy programs at the college.
And the college is in the process of contracting with Sage Technical Services of Vestal, N.Y., so that its Towanda Center can again offer training to students who wish to obtain a commercial driver’s license, as there will be a large number of trucks required when drilling for gas, he said.
And this on the number of new jobs that will be created from Marcellus drilling activities:
“Development of the Marcellus Shale gas is expected to generate over 90,000 jobs over the next 20 years,” states a press release from Lackawanna College, which this week announced the launching of the natural gas technology program. “This kind of job growth and economic stimulus to northeastern Pennsylvania will be transforming to our region and to the lives of those people who get the technical education and training needed to take advantage of the best job opportunities as they arise.”
The new applied science degree in Oil and Gas Production Technology will be available at the college’s main campus in Scranton, and some of the other satellite locations, in addition to Towanda.
For more information about the new program, read the article Lackawanna College to Offer Natural Gas Technology Degree, read Lackawanna College’s news release, or contact Lackawanna College’s Department of Continuing Education at (570) 961-7883.
Three Jay Township supervisors have voted to deny access to water to EOG Resources for drilling in Elk County, Pennsylvania. EOG had requested access to the Bennetts Branch of the Sinnemahoning Creek by driving across township-owned land, specifically near a ball field.
According to the Courier-Express/Tri-County Sunday (DuBois) newspaper:
During Thursday’s Jay Township Supervisors meeting, the supervisors said they would not give EOG permission to use township land to access the stream because they still have a lot of unanswered questions.
EOG wants to withdraw the water for gas drilling in the Marcellus Shale, Supervisor Murray Lilley said.
Since October or November 8, the township has received three requests to withdraw water from various streams in the township, Supervisor Bob Coppolo said.
In each case, a letter was written by the supervisors to the Susquehanna River Basin Commission and copied to elected officials and the Department of Environmental Protection expressing concern.
The township is concerned about having water trucks going in and out of a recreation area where youth gather and play.
There are also questions of if the township would be liable if anything happens since it would be on township property.
And this interesting comment:
Asked by a resident if the township had to allow the company access to the stream, Coppolo said, “It’s our property.”
Although it is a favorable time economically to have this type of work, it is also important to preserve the community and the beauty of the area, he said.
Marcellus Drilling News thoughts: Hopefully Supervisor Coppolo means “our” as in the people of the township and not the private fifedom of he and his fellow supervisors. We encourage Supervisor Coppolo to talk with ALL of the people in the township, including landowners who have leased their property for drilling.
Read the full article: Township denies request to access water
The Centre Daily Times (State College, PA) implies that a recent auction of property in Centre County which had been seized for tax liens had higher than expected prices due to drilling in the Marcellus. The article begins thus:
BELLEFONTE — Property at Wednesday’s Centre County auction started selling at $1,000, but it didn’t take long for bidding on the first piece of land to reach $82,000.
Ditto for the next few parcels — all large pieces of Snow Shoe Township property in the Marcellus Shale natural gas region.
“Do I hear $150,000?” asked Chuck Salvanish, who works in the county tax assessment office and doubled as an auctioneer at Wednesday morning’s lien-free property sale in the county Courthouse Annex.
The winning bid on one 264-acre property quickly reached $300,000. Altogether, the sale brought in about $509,000, and drew upward of 100 people…
“I’m amazed at how many people are here,” said Sue Crowley, of Howard Township.
And this:
[Bill] Shreffler bid on a 76-acre Carlin Inc. property in Snow Shoe Township, but stopped at $49,000. The winning bid was $50,000.
Tarry Bratton, of York County, bid $20,000 for 163 acres of Carlin Inc. property in Snow Shoe Township that had at one time been a landfill.
I don’t live anywhere near Centre County, so I don’t know if those prices are high or not. How about you? Have land prices climbed in your area because of the Marcellus and the prospect of drilling? If they have (or haven’t), leave a comment.
Read the full article: County gets $509,000 in auction of property
The Centre Daily Times (State College, PA) recently ran an editorial with typical scare-tactic, kindergarten logic, while at the same time supporting the obscene taxation of drilling in the Marcellus in Pennsylvania.
The editorial recounts how a number of so-called conservation groups have their greedy hands out and want a piece of the pie (my words, not theirs). So in the tortured logic of these groups, they want to tax tax tax the Marcellus. On one hand conservation groups and the Centre Daily Times decry drilling and paint a nightmarish picture of water and noise pollution, road damage, and general malaise. In the next breath they say, “Oh well, if it’s gonna happen, let’s at least grab a piece of the action for ourselves.” It’s thuggish thinking and thuggish behavior. A protection racket–pay to play. And newspapers like the Centre Daily Times fall right in line, along with their Democrat co-conspirators in Pennsylvania state government.
Perhaps this is a teachable moment? The taxarati (the taxing class), will tell you energy companies will have to pay the tax, and that there’s more than enough money going around that “a little tax won’t hurt anyone,” with the justification that “39 other states do it too.” Wrong. Natural gas prices have come down dramatically in the past 12 months and new exploration is at best a break-even affair at this point.
Point #1: Drilling will slow or stop. Making drilling more expensive by adding more tax may tip the scales and make it an unprofitable venture, and the drilling will stop. There are already indications that new drilling has slowed throughout the Marcellus.
Point #2: Landowners will not escape the tax. Do you think energy companies alone will bear the tax? Wrong! Landowners will also be part of this tax. The energy companies will not bear the burden alone. More tax means less in landowners’ pockets.
Point #3: Consumers will ultimately pay. Do you think corporations simply “live” with making smaller margins of profit? They do not. They pass along increases in higher prices. There truly is no such thing as a tax increase on business that is paid by anyone other than the consumer. It is always the case. You may think you’re “soaking the rich” by increasing taxes on businesses, but those taxes are treated as a cost of business and factored into the price consumers will pay. By taxing business, you have just taxed yourself. Doh!
Wake up PA, and reject the notion of a severance tax on Marcellus drilling.
Read the Centre Daily Times editorial: Tax the source of the mess
The Scranton Times-Tribune reports that Pennsylvania Democrats, including Gov. Ed Rendell, are on a mission to tax natural gas drilling in the Marcellus. Let’s name some names, shall we?
House Finance Chairman David Levdansky, D-39, Pittsburgh, and Environmental Resources Chairman Camille George, D-74, Houtzdale, joined with statewide conservation groups Monday to widen the debate over proposed state taxation of natural gas produced by drilling deep pockets in the Marcellus Shale formation, underlying much of western and Northeast Pennsylvania.
Gov. Ed Rendell has proposed a 5 percent severance tax in hopes of generating an estimated $107 million for state coffers. The tax would be levied on the value of natural gas at the well.
Not to be outdone by the government, the so-called conservation groups have their hands out too:
The conservation groups, including PennFuture and Pennsylvania Federation of Sportsmen’s Clubs, say some of that revenue should go for conservation projects, the state Game and Fish and Boat Commissions and to help local governments repair roads.
The coalition isn’t suggesting a specific amount at this point, said Andy Loza, an official with the Pennsylvania Land Trust Association.
And the pièce de résistance:
“Implementing a severance tax on natural gas is a no-brainer,” said Mr. George, who is drafting legislation to set standards for treating water used in drilling.
Taxing the fledgling PA gas industry into oblivion is a real no-brainer for those with no brains!
Read the full article: Shale tax ideas debated
At a recent meeting of the Susquehanna River Basin Commission held in Scranton, PA, the group approved 26 applications to use water from the Susquehanna River watershed for drilling in the Marcellus Shale deposit. At the meeting, the Commission imposed new rules about posting signs at sites along rivers and creeks where water is drawn for use in drilling.
Among the permits approved by the commission, according to the Susquehanna Independent Weekend, is permission for ALTA Operating “to draw up to 3 million gallons per day from the Susquehanna River and 99,000 gallons per day from Snake Creek, both in Susquehanna County.”
Read the full article: New rules for gas drillers
Energy company Gastar Exploration reports the following about their Marcellus commitment in a recent quarterly financial filing:
In the Marcellus Shale we hold approximately 42,000 net acres in northern West Virginia and southwestern Pennsylvania. To date, we have drilled 10 shallow wells, which will allow us to hold the related leases with production. Currently, we are seeking a joint venture partner to help us further develop this play. We do not expect to drill additional shallow wells until we secure a joint venture partner or until natural gas prices improve. We will continue to maintain our leases through renewals, extensions and renegotiations of drilling commitments.
Read the press release: Gastar Exploration Reports Fourth Quarter and Full Year 2008 Financial and Operational Results
The Beaver County & Allegheny Times Online news site reports Range Resources has hired Conquest Seismic Services to vibrate the ground around Hopewell and Independence Townships, located in Beaver County, Pennsylvania (near Pittsburgh).
For now, Range is looking along Route 151, according to Dave Schieck, a geophysicist for Range Resources. But don’t look for production wells for quite a few years:
“We’re looking here, and we’ll be looking in the northern part of Beaver County later on,” Schieck said of a stretch between Zelienople and the Beaver River. “It may be as much as a decade before any extraction takes place here, but I’d bet we’ll see some once the area is ready.”
Read the full article: Company vibrating ground in search of natural gas
On Thursday, March 12, the board of supervisors for Westmoreland County (Pennsylvania) voted to let drilling commence on an area of county-owned land. According to the Valley News Dispatch:
The board approved five natural gas wells to be drilled on Municipal Authority of Westmoreland County property near the Beaver Run Reservoir.
James McKinstry of Dominion Exploration detailed plans for the wells to be drilled into the Marcellus Shale in an area bordered by Fox Road, Walker Road and Route 286.
Resident John Doyle asked if drinking water in the reservoir will be protected, particularly from material such as disposable brine. McKinstry said waste, such as brine, will be trucked away. There is a site in Indiana County that accepts brine.
McKinstry added that the state Department of Environmental Protection regulations must be followed.
Supervisors unanimously granted the request, attaching conditions such as submitting a plot plan, posting 24-hour emergency numbers and keeping roads passable at all times.
Dominion feels the wells can be built in about seven or eight months once approval is granted.
Full article: Washington Township hopes for state sewerage dollars
The Wilkes-Barre Times Leader is following the story of the natural gas-contaminated water wells in Dimock, PA. Overall the article is pretty even-handed in its treatment of the issue and worth a read. In covering “both sides” of the issue, they reveal some of the facts in the case:
The company [Cabot Oil & Gas] and DEP [PA Department of Environmental Protection] agree that the gas isn’t from Marcellus Shale, a pipeline leak or naturally occurring sources above ground. They also concur that the gas is likely from a gas-laden upper layer of underground Devonian shale, of which the Marcellus Shale is a component but thousands of feet deeper, [DEP spokesman Mark] Carmon said. Marcellus Shale is generally at least 5,000 feet underground, while DEP determined the gas contaminating the water wells came from a shale layer roughly between 1,500 feet and 2,000 feet deep, Carmon said.
The company has cemented the upper Devonian shale layers of several wells, effectively extending the cement seals from the bottom of the water-bearing region, where the seals usually stop, to the bottom of the upper shale layers. The department has been trying to isolate the exact source of gas, seeing whether the extended seals produce a drop in water-contamination levels, Carmon said.
Because the method of contamination hasn’t been determined, Carmon said it’s too early to tell if Cabot knowingly violated regulations. “I’m not aware of anything blatant or anything like that, but, again, we want to know how did it happen,” he said.
Other news outlets would do well to follow the Times Leader’s example and get their facts straight before running stories about the Dimock situation.
Read the full article: Consequences of gas drilling still unknown
The Somerset County Daily American newspaper reports drilling by Samson Investment Co. has commenced in the county:
Paul Menhorn is among the very first area landowners to get an in-person look at natural gas drilling operations. A drilling rig is now boring a gas well on his 157-acre dairy farm, which is located a few miles from Berlin.
It was last August when a representative from the Tulsa, Okla.-based firm told Menhorn that they would in fact begin to explore his property. By November, trucks were on the land, moving dirt and preparing the drilling site.
Equipment was shuttled onto his land March 2. A drilling rig now towers over a telephone pole near one of his barns.
According to Menhorn, it’s been life as usual, despite the sudden additions to his farm.
As for noise:
“When they’re drilling you can hear a little chattering, but it’s not bad,” Menhorn said, adding that his sleep has been unaffected by the sounds.
The newspaper article also reports:
The rig on Menhorn’s property could be the first of many. According Samson’s Web site, the company has doubled its work force over the past five years – a sign of growth and production.
The article gives an honest and frank view of what life has been like for the Menhorns since drilling started, along with a talk about the Menhorns’ concern about their water supply and how they approached ensuring there would be no problems with water contamination. The article is well written and worth your time to read all of it.
Read the full article: Drilling company taps Marcellus shale