Pennsylvania

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    Encana’s Big Gamble in Luzerne County, PA

    Will Encana Oil & Gas’ gamble in Luzerne County, Pennsylvania pay off? We’ll know soon. Encana is due to start drilling two exploratory wells in Luzerne County this week. The drilling process itself will last 65-75 days.

    So why is it a gamble for Encana to drill for gas in Luzerne County? Nobody knows for sure if the Marcellus Shale gas deposits are commercially viable that far south.
    Read More “Encana’s Big Gamble in Luzerne County, PA”

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    Two-Thirds of Wyoming County, PA Land Now Leased, More Land being Sought by Drillers

    Nearly two-thirds of the land in Wyoming County, Pennsylvania is leased by natural gas drilling companies, and recent strong gas production from wells in the northern part of the county have sparked a competition to lease even more Wyoming County land.
    Read More “Two-Thirds of Wyoming County, PA Land Now Leased, More Land being Sought by Drillers”

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    List of 78 Chemicals Used in Hydraulic Fracturing Fluid in Pennsylvania

    UPDATE (July 6): It seems the list below is not completely accurate, as admitted by the PA DEP. The list below includes chemicals and substances stored on site (like diesel fuel and oil) that are not injected into the ground. MDN will furnish an updated list when it becomes available from the DEP.

    An earlier version of the list, provided by DEP to the Associated Press and published in newspapers throughout the state this week, purportedly included all of the chemicals used in Pennsylvania during the gas extraction process called hydraulic fracturing. Instead, it included not just the chemicals pumped deep underground but also those stored or used on a well site, including fuel for vehicles and brake fluid.

    “You can blame it on me,” Scott Perry, the director of DEP’s Bureau of Oil and Gas Management, said on Wednesday.

    The original list was a compilation of the chemicals identified on safety documents called material safety data sheets that hydraulic fracturing contractors must submit to the department, but he did not realize that it included substances the contractors use both above and below ground on a well site, he said. The second list was winnowed by a DEP chemist, who recognized that some of the chemicals on the initial list are not among those injected underground during the fracturing process.

    Of the 83 chemicals on the list published by the AP and the 78 on the list posted by the DEP, only 37 items are in common.

    Three compounds specifically addressed in the AP article because of the risks they can pose to human health – naphthalene, toluene and xylene – are not on the list of hydraulic fracturing chemicals DEP posted on its website on Wednesday.

    Scranton Times Tribune (July 1) – DEP shale chemical lists at odds over inclusion of above ground substances

    Original post from June 30…

    Using Material Safety Data Sheets (MSDS) from drillers, along with analysis of fracking fluid, the Pennsylvania Department of Environmental Protection (DEP) has released an updated list of 78 chemicals they say are found in fluids used by gas drillers in PA (called “fracking fluids”). MDN has obtained the list of 78 chemicals and reproduced it below. There is also a downloadable version at the end of this posting.

    There are many nasty chemicals in this list, no one disputes that. But here’s a few things to keep in mind:

    1. No one knows how much of these chemicals are being used by any given driller. We do know that fracking fluid is composed of less than one percent of the chemicals in this list, with water and sand making up the other 99 percent.
    2. When fracking fluid is pumped into the ground, the vertical hole down which it’s pumped is lined with concrete to protect surface water supplies from chemicals. The fracking fluid goes down some 5,000 feet to where it’s used to help break rock apart releasing the natural gas, and then most of the fluid is pumped back out again and carted away where it’s treated at a regulated and approved facility. For the fluid that stays behind, it’s down some 5,000 feet. That’s almost a mile of solid rock between where it sits and surface water supplies (which are located at about 300 feet). There’s no way any of that fluid will “seep up” into water supplies. And remember that most fluid is pumped back out again. So less than one percent of the fluid are chemicals from this list, and most of that comes out again, leaving behind a very very small amount of chemicals a mile below the surface and heavily diluted by water and sand.
    3. Compare the list below with the labels on the containers under your kitchen and bathroom sinks. You’ll find some of the same names on the labels.
    4. One last thing to keep in mind: No driller uses all of these chemicals. In fact, Range Resources has openly discussed what they use in their fracking fluid:

    Range Resources, which uses contractor Frac Tech for its fracing work, says its frac fluid additives are chosen from a list of only nine compounds — hydrochloric acid, methanol propargyl, polyacrylamide, glutaraldehyde, ethanol, ethylene glycol, alcohol and sodium hydroxide.*

    Chemicals Used in the Hydraulic Fracturing Process in Pennsylvania
    Prepared by the Department of Environmental Protection
    Bureau of Oil and Gas Management
    Compiled from Material Safety Data Sheets (MSDS) obtained from Inustry

    Updated June 10, 2010

    Chemical Product Name
    2,2-Dibromo-3-Nitrilopropionamide Bio Clear 1000/Bio Clear 2000/ Bio-Clear 200/BioRid20L/ EC6116A
    2-methyl-4-isothiazolin-3-one X-Cide 207
    5-chloro-2-methyl-4-isothiazolin-3-one X-Cide 207
    Acetic Acid Fe-1A Acidizing Composition/ Packer Inhibitor
    Acetic Anhydride Fe-1A Acidizing Composition
    Acetylene GT&S Inc./ Airco
    Alcohol Ethoxylated C12-16 NE-200
    Alkyl benzene sulfonic acid Tetrolite AW0007/ FR-46
    Ammonia (aqueous) FAW-5
    Ammonium Bifluoride ABF 37%
    Ammonium Persulfate AP Break
    Ammonium Bisulfite Techni-Hib 604/ Fe OXCLEAR/ Packer Inhibitor
    Ammonium chloride Salt Inhibitor
    Ammonium Salt (alkylpolyether sulfate) Tetrolite AW0007
    Amorphous silica TerraProp Plus/ Bituminous Coal Fly Ash ASTM C618
    Benzoic Acid Benzoic Acid
    Boric Acid BC-140/ Unilink 8.5
    Boric Oxide XLW-32
    Calcium Chloride Dowflake
    Calcium Oxide Bituminous Coal Fly Ash ASTM C618
    carboxymethylhydroxypropyl guar blend Unigel CMPHG
    Choline Chloride Clay Treat-2C
    Cinnamaldehyde ENVIROHIB 2001
    Citric Acid Ferrotrol 300L/ IC-100L
    Complex polyamine salt Clay Master-5C
    Crystalline Silica: Cristobalite  
    Crystalline Silica: Quartz Silica Sand/ / Atlas PRC/ Best Sand/ Bituminous Coal Fly Ash ASTM C618
    Cupric chloride dihydrate Ferrotrol 280L
    Cured resin LiteProp 125
    Cyclohexanes CS-2
    Dazomet ICI-3240
    Diethylene Glycol Scaletrol 720/ Scaletrol 7208

    d-Limonene

    		 MA-844W
    Enzyme GBL-8X
    EO-C7-9-iso-, C8 rich-alcohols NE-940/ NE-90
    EO-C9-11-iso-, C10-rich alcohols NE-940/ NE-90
    Ethoxylated Alcohol FRW-14/ SAS-2/ Flomax 50/ WFR-3B
    Ethyl Acetate Castle Thrust
    Ethyl Alcohol FAW-5/ Castle Shop Solv/ Dallas Morris
    Ethylbenzene NDL-100/ PARANOX/ Uniflo II
    Ethylbenzene NDL-100/ PARANOX/ Uniflo II
    Ethylene Glycol ENVIROHIB 2001/ ICA-2/ LEB 10X/ Scaletrol
    720/ Sceletrol 7208/ CC 300/ Clachek A/ Clachek
    LP/ Ironsta II B/ NCL-100/ BC 140/ NCL-100/
    Flomax 50/ NCL/ Scalehib 100/ Unihib O/ Unilink 8.5
    Formic Acid ENVIROHIB 2001
    Gluconic Acid Interstate ICA-2
    Glutaraldehyde Alpha 114/Alpha 125/ ICI-150
    Glycerol Bio Sealers
    Glycol Ethers ENVIROHIB 2001/AMPHOAM 75/ PARANOX/ Uniflo II/ Unifoam/ WNE-342LN
    Guar Gum PROGUM 19 GUAR PRODUCT/ Unigel 19XL/ Benchmark Polymer 3400/ WGA-15/ Unigel 5F
    Hydrochloric Acid Hydrochloric Acid (HCL)/ TETRAClean 542/ Muriatic Acid
    Hydrochloric Acid 3% – 35% Hydrochloric Acid 3% – 35%
    Isopropanol AFS 30 Blend/ FAC-1W/ FAC-3W/ MA-844W/ NE-23/ NE-940/ Flomax 50/ Tetrolite AW0007/
    FMW25 Foamer/ CS-2
    Isopropyl Alcohol NFS-102/ WFT-9511/ LT-32/ AR-1/ Flomax 50/ NDL-100/ Unibac/ Uniflo II/ Uniflo/ Unihib O/
    WNE-342LN
    Methanol

    AFS 30 Blend/ NE-200/ Activator Superset-W/ CI-14/ FAW-5/ GasFlo/ Inflo-250W/ LT-32/ NE-940/
    XLW-32/ Tetrolite AW0007/ FMW25 Foamer/ 40 HTL Corrosion Inhibitor/ NE 100/ HAI-OS Acid
    Inhibitor/ Unibac/ NE-90/ Packer Inhibitor
    Methyl Alcohol Clearbreak 400/ Super Surf/ Castle Shop Solv
    Methyl Salicylate Bio Sealers
    n-butanol AirFoam 311
    Nitrilotriacetamide Salt Inhibitor
    Phenolic Resin Atlas PRC
    Polyethylene Glycol NE-940/ EC6116A/ NE-90
    Polyethylene Glycol Mixture Bio Clear 2000/ Bio-Clear 200
    Polyoxylalkylene sulfate FMW25 Foamer
    Polysaccharide Blend GW-3LDF
    Potassium Carbonate BF-7L
    Potassium Chloride Dowflake
    Potassium Hydroxide B-9, pH Increase Buffer/ BXL-2
    Propargyl Alcohol CI-14/ HAI-OS Acid Inhibitor
    Propylene Glycol SAS-2/ WFR-3B
    Silica S-8C, Sand, 100 mesh/ Montmorillnonite clay
    Sodium Bicarbonate K-34
    Sodium Bromide BioRid 20L
    Sodium Hydroxide Caustic Soda/ ICI-3240/ BioRid B-71
    Sodium Persulphate High Perm SW-LB
    Sodium Xylene Sulfonate FAC-2/ FAC-3W
    Sulfuric Acid Sulfuric Acid
    Surfactants AFS-30/ GasFlo/ Inflo-250W
    Talc Adomite Aqua
    Tetrakis(hydroxymethyl)phosphonium sulfate Magnacide 575 Microbiocide
    Tetramethyl ammonium Chloride Clay Treat-3C
    Trimethyloctadecylammonium chloride FAC-1W/ FAC-3W

     

    Download Chemicals Used in Hydraulic Fracturing in PA list

    *Pittsburgh Business Times (June 30) – DEP releases new list of frac chemicals; used in Marcellus, other Pa. operations

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    Chesapeake Energy has 19 Active Drilling Rigs in Northeast PA Alone

    Brian Grove, corporate spokesman for Chesapeake Energy, addressed the Chamber of Business and Industry of Centre County in State College, PA today. Among his comments was this statement showing Chesapeake’s commitment to the Marcellus Shale:

    “In northeastern Pennsylvania, where I’m from … we have 19 drilling rigs right now active in the northern tier. That’s as many, right now, as our company has in the Barnett Shale in Texas.”*

    Grove also warned that a steep severance tax and “overly heavy” regulation will slow drilling growth in PA.

    *The Centre Daily Times (June 30) – Natural Gas Rep: Drilling companies here to stay in Pennsylvania

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    Forced Pooling – An Issue Coming to the Forefront in Pennsylvania

    Now that a severance tax is coming to Pennsylvania, natural gas drillers will likely push for a provision called “forced pooling” in PA which makes it easier to gather gas from properties that are not leased but sit in-between other leased land.

    The Marcellus Shale natural gas industry wants to see legislation attached to any severance tax adopted by the state that would force property owners who refuse leases to allow drillers to gather the gas beneath their land, an industry coalition leader said Monday.

    Calling it the most economical and conservative land-use approach to drilling for gas, David Spigelmyer, Chesapeake Energy’s regional vice president for government relations, said in a Times-Shamrock newspapers editorial board meeting that “forced pooling” is a key element of any legislation the state’s Marcellus drillers could support and is actively being discussed during budget negotiations in the capital.

    Such a statute would help avoid an unnecessary proliferation of wells, Spigelmyer said, but critics say it is a form of eminent domain.*

    This is an unresolved and complex issue that’s about to become red hot in PA. There are strong arguments on both sides. MDN believes landowners should have the right to allow drilling on and under their land provided it does not harm nearby populations or the environment. It is the constitutional right for citizens of this country to use their land as they see fit. On the other hand, to force a landowner who does not want to lease their land into a pool with their neighbors who have leased, is also unfair. If it means a proliferation of wells and added expense, so be it. The drilling company will have to bear the cost. Citizens should not have to worry that portions of their property will be used against their will—both on the surface and under it. It’s wrong to stop drilling based on irrational fear (as is being done in New York), and it’s equally wrong for drillers to force landowners to allow drilling under their land.

    What do you think about forced pooling? Leave a comment below and let us know.

    *Wilkes-Barre Citizen’s Voice (June 29) – Gas industry wants access to unleased property

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    PA Budget Deal Approved: Marcellus Landowners are the Losers

    Pennsylvania has just reached a new budget agreement for the next fiscal year, weighing in at a staggering $28.05 billion. Those who smoke cigars and use smokeless tobacco can breathe easier (or perhaps not)—your bad habit has escaped the tax man yet again this year. There are no state taxes on cigars and smokeless tobacco. But if you’re a landowner who’s getting royalty payments, you’re about to get soaked. Everyone knew it was only a matter of time before the politicians, who can’t resist taxing everything under the sun, would not be able to resist a severance tax on gas drilling. It’s now happened:

    The [budget] agreement calls for the Legislature to enact a severance tax on natural gas extraction in the Marcellus Shale by Oct. 1, Rendell said, with the tax becoming effective Jan. 1, 2011. He said he would like to see a tax rate close to West Virginia’s, which is roughly 6 percent.*

    It makes no difference if the tax is levied on the drilling company or not—ultimately this tax will come out of the pockets of landowners because expenses are always passed back. Oh well, it was a good run while it lasted. At least they’re drilling in PA!

    *Pittsburgh Business Times (June 29) – Rendell: Pa. reaches budget agreement

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    Gas Well Blowout in Clearfield County, PA Causes “Modest” Environmental Damage

    What do we know about the gas well blowout that occurred on June 3rd? EOG Resources had almost completed drilling and fracking a gas well in Clearfield County, Pennsylvania when a blowout (too much pressure too fast) occurred. Here is the chronology of events:

    The month long drilling operation [in Clearfield County] ended on March 3. Contractors returned in May to hydraulically fracture the well over 12 days. The process involves the injection of water, sand and chemicals under high pressure to shatter the gas-bearing rock so that the fuel can be recovered.

    The frack job ended on May 28. The operator [EOG Resources] had begun well-completion operations on June 1. The blowout occurred two days later.

    High pressure in an oil or gas well is both desired and essential – the pressure is what brings the fuel to the surface. Blowouts occur when the pressure surges and overwhelms control mechanisms.

    A device known as a blowout preventer is attached to the wellhead at the surface. It is designed to be triggered by operators to control pressure surges.*

    And this from the Pennsylvania Department of Environmental Protection (DEP) official press release on the matter:

    The leak began at approximately 8 p.m. on Thursday, June 3, when the well’s operators lost control of it while preparing to extract gas after fracking the shale. As a result, natural gas and flowback frack fluid was released uncontrollably onto the ground and 75 feet into the air. The well was capped at around noon on June 4.

    The EOG well pad is located in a rural area near the Penfield/Route 153 exit of Interstate 80 in northwestern Clearfield County, near Moshannon State Forest.

    The department’s [DEP] Emergency Response and Oil and Gas programs responded to the incident, along with the Pennsylvania State Police, the Pennsylvania Emergency Management Agency, and local fire and police departments.**

    The DEP believes the blowout preventer failed—but they don’t yet know why. Investigations continue. Since the blowout, the DEP has stopped all new drilling by EOG Resources until a cause is found:

    The Department of Environmental Protection today [June 7] ordered EOG Resources Inc. to suspend its natural gas well drilling activities in Pennsylvania after a June 3 blowout at one of the company’s Clearfield County wells sent natural gas and at least 35,000 gallons of drilling wastewater into the sky and over the ground for 16 hours.

    DEP Secretary John Hanger said that while the order bans all drilling and hydrofracturing, or fracking, operations for specified periods of time, the suspension will remain in effect until DEP has completed a comprehensive investigation into the leak and the company has implemented any needed changes.**

    Here’s what else we know: No one was hurt. About 35,000 gallons of drilling fluid (mostly water) was spilled. The well did not explode. According to DEP Secretary John Hanger:

    “Fortunately, the well did not ignite and explode, and there were no injuries to the well crew or emergency responders. Our preliminary assessment is that the environmental damage was modest as the frack fluid was contained and did not appear to reach any streams.”**

    Since the accident, anti-drillers (and mainstream media) have had a field day referring to the “tragedy” and “disaster” in Clearfield County. While MDN does not excuse or minimize the accident and encourages a full investigation, a little perspective is in order: According to the Federal Highway Administration (as of 2005), an average of 115 people die every day in automobile accidents. The average number of people who die every day from gas well accidents? Zero.

    *Philadelphia Inquirer (June 7) – Pa. suspends gas drilling at Marcellus rupture site
    **PR Newswire (June 7) – DEP Orders EOG Resources to Halt All Natural Gas Drilling Activities in PA

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    Dominion Signs Deal to Transport CONSOL Marcellus Shale Gas for Next 15 Years

    From a Dominion press release issued today:

    Dominion today announced that its natural gas transmission and storage subsidiary, Dominion Transmission, has reached a 15-year agreement with the gas subsidiary of CONSOL Energy Inc. for firm transportation of CONSOL’s Marcellus shale natural gas production.

    The project, capable of transporting 200,000 dekatherms per day, will move supplies from various receipt points in central and southwestern Pennsylvania to a nexus of market pipelines and storage facilities in Leidy, Clinton County, Pa.

    “Dominion is pleased to provide CONSOL with year-round access to growing Northeast markets and to provide another supply alternative for market area customers,” said Gary Sypolt, chief executive officer of Dominion Energy. 

    Earlier this year Dominion sold its natural gas exploration and production business to CONSOL so that the company could concentrate on its regulated businesses, including increased transportation and storage infrastructure opportunities resulting from Marcellus shale discoveries.

    Dominion plans to file for a FERC certificate in December. If the project is approved, construction is planned to begin in March 2012, and it would enter service in November 2012. Construction plans include new compression facilities at three existing compressor stations in central Pennsylvania.

    Dominion Transmission provides gathering, processing, transportation and storage services, operating in the heart of the Marcellus shale production area.

    Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 12,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation’s largest natural gas storage system with 942 billion cubic feet of storage capacity and serves retail energy customers in 12 states.

    *Dominion Press Release (June 14) – Dominion Announces 15-Year Contract for Marcellus Northeast Natural Gas Project

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    Delaware River Basin Commission Bans Exploratory Drilling in Marcellus Shale in the Watershed

    Once again the Delaware River Basin Commission (DRBC) is overreaching. There is no doubt the commission is packed with people opposed to shale gas drilling, and they have no regard for private property owners or their property rights. Under the guise of “protecting the water supply,” a single person—the director of the DRBC—has now banned exploratory drilling in the watershed with the stroke of a pen. What does it mean? If you’re a property owner living in the Delaware River watershed (New York or Pennsylvania), drilling for you won’t happen any time soon. Maybe never.

    Today’s DRBC press release:

    Delaware River Basin Commission (DRBC) Executive Director Carol R. Collier today announced that she has supplemented her May 19, 2009 determination to include natural gas exploratory wells.

    “My 2009 determination that sponsors of natural gas extraction projects in shale formations must obtain commission approval before commencing such projects expressly did not cover wells intended solely for exploratory purposes,” Collier said.  “Today, I am extending the provisions of my 2009 determination to include exploratory wells, subject to reservations for exploratory well projects already approved by the states on or before June 14, 2010.”

    By this supplemental determination, all natural gas well project sponsors, including the sponsors of natural gas well projects intended solely for exploratory purposes, must first apply for and obtain commission approval before commencing any natural gas well project for the production from or exploration of shale formations within the drainage area of Special Protection Waters in the Delaware River Basin.

    “For the purpose of this determination, any natural gas well drilled in or through shale is assumed to be targeting a shale formation and is subject to this determination, unless the project sponsor proves otherwise,” Collier added. All other aspects of the 2009 determination remain in effect.

    Today’s action recognizes the risks to water resources, including ground and surface water that the land disturbance and drilling activities inherent in any shale gas well pose. “In light of the commission’s May 5, 2010 decision to finalize natural gas regulations before considering project approvals, this supplemental determination removes any regulatory incentive for project sponsors to classify their wells as exploratory wells and install them without  DRBC review before the commission’s natural gas regulations are in place,” Collier said. “It thus supports the commission’s goal that exploratory wells do not serve as a source of degradation of the commission’s Special Protection Waters.”

    “Where entities have invested in exploratory well projects in reliance on my May 2009 determination and information from DRBC staff, there are countervailing considerations that favor allowing these projects to move ahead,” Collier stated in her supplemental determination. “I am informed that since May of 2009, Pennsylvania has issued a limited number of natural gas well drilling permits within the Delaware River Basin targeting shale formations, while New York State has not issued any natural gas well permits targeting shales in the basin since that date. In contrast to the thousands of wells projected to be installed in the basin over the next several years, the risk to basin waters posed by only the wells approved by Pennsylvania since May 2009 are comparatively small. Not only are these wells subject to state regulation as to their construction and operation, but they continue to require commission approval before they can be fractured or otherwise modified for natural gas production. In light of these existing safeguards and the investment-backed expectations of the sponsors of these projects, this supplemental determination does not prohibit any exploratory natural gas well project from proceeding if the applicant has obtained a state natural gas well permit for the project on or before June 14, 2010.”

    Most of the shale formations that may be subject to horizontal drilling and hydraulic fracturing techniques requiring large volumes of water in the basin are located within the drainage area to DRBC’s designated Special Protection Waters (SPW). The commission’s SPW program is designed to prevent degradation in streams and rivers considered to have exceptionally high scenic, recreational, ecological, and/or water supply values through stricter control of wastewater discharges, non-point pollution control, and reporting requirements. Coverage of the DRBC’s SPW anti-degradation regulations includes the 197-mile non-tidal Delaware River from Hancock, N.Y. south to Trenton, N.J. and the land draining to this stretch.

    Any person adversely affected by this action may request a hearing by submitting a request in writing to the commission secretary within 30 days of the date of this supplemental determination in accordance with the DRBC’s Rules of Practice and Procedure.

    *DRBC Press Release (June 14) – DRBC Executive Director Determination Extended to Include Natural Gas Exploratory Wells

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    Encana and Luzerne County Draft Emergency Response Plan for Potential Marcellus Shale Drilling Disaster

    One of the concerns (fears?) expressed by community members when learning there will be a gas well drilled nearby is the question of what happens in the case of a disaster, like a fire or gas leak. Will local first responders be responsible for handling a situation they may not be equipped or trained to handle?

    The off-shore Deepwater Horizon oil drilling disaster in the Gulf makes people concerned about local natural gas drilling. Even though the two forms of energy extraction are vastly different, with completely different levels of risk involved, it makes no difference. It has people spooked. Planning for safety, and how you will respond to a disaster, is a good thing—especially with gas drilling.

    Enter Encana, which is about to drill Luzerne County, Pennsylvania’s first Marcellus Shale gas well. And people are nervous. Working closely with the Luzerne County Emergency Management Agency, Encana is drafting a disaster emergency response plan.

    Wendy Wiedenbeck, public and community relations advisor for EnCana, said local firefighters would not be responsible for containing or fighting a gas well fire or gas release at a well site.

    “In the event of an incident, local emergency responders will be asked to provide support to our operations personnel who are specially trained to deal with incidents at oil and gas locations,” Wiedenbeck said.

    “Should a serious well-control incident occur, such as release of gas or fire, EnCana will look to local emergency responders to provide support while EnCana calls upon well-control experts to assist in addressing such an incident,” she said.*

    So the plan is that if the unthinkable happens, local first responders will provide support, but “experts” will actually handle the emergency. The only problem MDN sees is that the well-control experts Encana will call on have their offices in Texas. The news account does not specify whether or not there is an office closer, or how the experts intend to respond in a timely manner, but presumably that’s outlined in the proposed plan.

    Encana and the Luzerne County Emergency Management Agency are completing the draft disaster response plan now, and as soon as it’s ready, it will be released to the public for comment and feedback. Encana and Luzerne County are showing the way for other energy companies and municipalities. Plan now for the unthinkable, and when/if it happens, the severity will hopefully be less than it otherwise would have been because you have a plan.

    *Wilkes-Barre Times Leader (May 31) – Response to gas disaster in the works

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    Penn Virginia Corporation Acquires 10,000 Marcellus Shale Acres in PA for $19.5M

    Penn Virginia Corporation (“PVA”) announced it has acquired approximately 10,000 net Marcellus Shale acres primarily in Potter, Somerset and Tioga Counties, Pennsylvania in two transactions for approximately $19.5 million in cash and overriding royalty interests on a portion of the acquired acreage.

    The first acquisition was from a private oil and gas firm who was PVA’s joint venture partner. The acquired leases were located primarily in Potter, Somerset and Tioga Counties, including approximately 7,900 net acres with Marcellus Shale rights and approximately 23,000 net acres with deeper rights. In connection with the acquisition, PVA granted the seller a 1.5 percent overriding royalty interest on the acquired acreage. After taking into account the override, PVA’s net revenue interest in the joint venture acreage is approximately 84 percent.

    The second acquisition was from another private oil and gas firm of leases primarily in Potter County covering approximately 2,100 net acres, with rights to the Marcellus Shale and all other formations.

    A. James Dearlove, President and Chief Executive Officer, said, “We are pleased to have expanded our Marcellus Shale acreage position from approximately 35,000 net acres to 45,000 net acres, and to have accomplished this expansion at a very attractive cost. We plan to begin testing the acreage in these areas later in 2010. In addition, we continue our leasing efforts and our review of other acquisition opportunities, as we seek to establish a significant presence in this emerging play over the next few years.”

    Source: Penn Virginia Corporation Announces Acquisitions in the Marcellus Shale (May 28)

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    East Resources Sells to Royal Dutch Shell for $4.7 Billion, Deal Includes All of East’s Marcellus Shale Operations

    East Resources, a major drilling company in the Marcellus Shale, especially in Pennsylvania, is selling itself to Royal Dutch Shell for a whopping $4.7 billion. From drilling a single horizontal Marcellus Shale gas well in 2009, East has drilled some 75 horizontal wells in the past 12 months. East did have plans to drill 6,000-7,000 wells in Tioga County, PA over the next “several years” (see this MDN story). No word on the planned drilling for Tioga County and other regions, but MDN assume Shell did not invest in East to not drill. In fact, the pace of drilling may well pick up with Shell’s investment.

    From the East Resources press release:

    East Resources, Inc., a Pennsylvania-based independent oil and gas producer and one of the most active explorers in the Marcellus Shale, along with its private equity investor Kohlberg Kravis Roberts & Company, signed a definitive agreement to sell the company’s principal subsidiaries to an affiliate of Royal Dutch Shell plc (“Shell”) for cash consideration of $4.7 billion. The sale includes East’s natural gas and oil exploration and production operations and most of its holdings in related businesses. With the purchase of East Resources, Shell will acquire approximately 650,000 net acres of Marcellus Shale rights in Pennsylvania, West Virginia and New York, and 1.05 million acres in total.

    East Resources, founded in 1983 by Terrence M. Pegula, has been one of the Appalachian Basin’s most active exploration and production companies for more than 25 years. Since its inception, East has grown primarily through its exploration successes, several strategic acquisitions, and most recently the development of the Marcellus Shale.

    East Resources employs approximately 300 office and field personnel in Pennsylvania, West Virginia, New York and Colorado. Its principal offices are located in Warrendale, PA, Broomfield, CO and Parkersburg, WV. Shell will continue to operate with East’s workforce to ensure continuing success in the growth and development of the reserves it will acquire in the purchase.

    The sale of East Resources to Shell is expected to close in two phases. The first phase of the sale will be completed in mid- to late summer. The second phase of the sale, including the sale of the West Virginia business, will close later this year, pending certain regulatory approvals.

    “The sale of the company to Shell will ensure that the capital needed to develop East’s significant Marcellus Shale holdings will be available,” says Mr. Pegula, East’s owner and Chief Executive Officer. “Shell’s entry into the region should benefit Pennsylvania, West Virginia and New York through significant new capital investment, new jobs and new business opportunities. I am very proud that this transaction has brought Shell into the Appalachian Basin.”

    President of Shell Oil Company, Marvin Odum commented, “East Resources’ management has built an excellent organization which we are pleased to have as we enter the northeast US and specifically the Marcellus Shale play.”*

    *East Resources Press Release (May 28) – East Resources Inc announces sales agreement with Royal Dutch Shell plc

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    Gas Drilling & Compressor Plants in DISH, TX Not Poisoning Local Population

    Since February of this year, Mayor Calvin Tillman from DISH, Texas has visited—several times—the Marcellus Shale regions of New York and Pennsylvania, sponsored by groups like Shaleshock and other anti-drilling organizations. Mayor Tillman claims that his small town in Texas, north of the Dallas-Fort Worth metroplex area, has been contaminated by shale gas drilling. DISH is located in the Barnett Shale deposit. Some of the drilled gas wells are within the city limits, and others sit just outside of town. MDN attended one of Mayor Tillman’s presentations back in February and you can read about my impressions here. It’s a fair statement that Mayor Tillman has been a popular speaker for those opposed to drilling in the Marcellus Shale, drawing sizable crowds.

    One of the claims made by Mayor Tillman in his talks is that either local gas wells, or the compressor plants used to pressurize shale gas for area pipelines, or both is polluting DISH and its citizens. DISH is unusual in that there are 11 large pipelines in the DISH area, far more than normally found in a single location (the most in one area for shale gas that MDN is aware of). Odors are coming from the compressor plants, so it’s certainly not a stretch to think that if you can smell it, it may be polluting or causing harm. That was Mayor Tillman’s suspicion, so he used city funds to conduct environmental testing in the DISH area, and separately another organization performed a health “survey” of current and former DISH residents (for free). Problem is, both the environmental testing and the health survey were flawed in their methodologies, which casts doubt on the findings. So the Texas Department of State Health Services stepped in to do a scientific health study using blood and tissue samples.

    Agency officials collected biological samples from 28 Dish residents in late January to see whether levels of volatile organic compounds (VOCs) in their blood were higher than those in the broader population. “We were looking to see whether a single contaminant or a handful of contaminants were notably elevated in many or all of the people we tested,” said Dr. Carrie Bradford, the toxicologist who led the investigation.*

    And what was the conclusion of the Department of State Health?

    Texas health officials found no connection between pollution from a natural gas compressor station in Dish, Texas and levels of toxins in the blood of people living nearby.*

    The new report from the Department of State Health Services says levels of benzene and other contaminants was no higher in Dish residents than in the nation’s population in general.**

    MDN wonders if the now less than credible Mayor Tillman will still be such a large draw when he comes calling again?

    *Elimra Star-Gazette (May 26) – Texas gas study finds no pattern of elevated toxins near compressor
    **Dallas Fort Worth – Channel 33 News (May 12) – DISH Report: No evidence gas well hurting residents of Dish, Texas

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    New Website Resource for Marcellus Shale Workers Coming to PA

    Marcellus Shale drilling in Pennsylvania continues to bring business, and people, to the state. Now there’s a new website to assist out-of-staters who need a place to stay:

    STATE COLLEGE, Pa.—Workers traveling to the Marcellus Shale natural gas deposit in Pennsylvania now have a valuable online travel guide dedicated to helping find accommodations in Pennsylvania’s Marcellus Shale region.

    MarcellusShaleHotels.com offers those coming to stay in the area information on hotels with short and long-term stay options. All the hotels featured on the site offer special rates to those coming to work on the Marcellus Shale.

    Michael Szczesny is the Director of Operations at the State College hotels featured on the resource site. He’s eager to assist Marcellus Shale companies with their lodging needs.

    “All our State College properties are either adjacent to or within walking distance to restaurants such as Outback Steakhouse, Olive Garden, Otto’s Microbrewery and Texas Roadhouse,” Szczesny said. “We are offering both short and long-term stays to accommodate the requirements of each company.”

    Each of the hotels featured on the site is just minutes away from various locations in Pennsylvania’s Marcellus Shale region and offers amenities designed to accommodate every guest.

    Locations of properties on the site range from Lock Haven to State College and down to Pittsburgh. To learn more about hotels in the Marcellus Shale region of Pennsylvania, visit MarcellusShaleHotels.com today.*

    *Business Wire (May 26) – Marcellus Shale Website a Resource to Those Traveling to Work Pennsylvania’s Gas Field

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    PA Gas Driller Bonds Will Skyrocket from $2,500 to $150,000 per Marcellus Gas Well Under Proposed Legislation

    Pennsylvania lawmakers, both Democrat and Republican, agree that bonds posted by drillers need to increase—dramatically. The bonds are used to cover the costs of plugging or closing natural gas wells. The current bond requirements date back to 1984.

    Drillers are required to post a $2,500 bond for a single well and $25,000 blanket bond to cover any number of wells under current law. A measure sponsored by Rep. Camille George, D-74, Houtzdale, would require a $150,000-per-well bond for any well in the Marcellus Shale formation and $12,000 bond on other oil and gas wells. George, chairman of the House Environmental Resources and Energy Committee, also proposes setting a $240,000 blanket bond, while prohibiting blanket bonds for wells in the Marcellus Shale formation. He suggested those amounts would cover the actual costs of decommissioning.

    *Hazelton Standard Speaker (May 23) – Marcellus drilling spurs calls for higher bonds