Pennsylvania

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    Dunkard Creek Fish Kill Update

    Pittsburgh Post-Gazette (Oct 14):
    Drilling water may be cause of fish kill: DEP points to salty discharge from mine

    Charleston Gazette (Sept 21):
    Consol mine may not be reason for fish dying

    An update on the fish kill in the Dunkard Creek which runs along the Pennsylvania and West Virginia border. As you recall, MDN pointed out that a connection to drilling in the Marcellus Shale for natural gas was tenous at best. A new story in the Pittsburgh Post-Gazette further strengthens that view (although you have to read the article with a discerning eye).

    This new article says the PA Department of Environmental Protection is now pointing the finger of blame (mostly) at an area coal mine. Here’s how the article starts:

    A heretofore undisclosed underground flow of mine pool and methane gas well drilling water into Consol Energy’s Blacksville No. 2 Mine may have contributed to the salty, polluted discharges that caused the massive, month-long fish kill on Dunkard Creek.

    Notice the confusing language that talks about “methane gas well drilling.” It leads you to believe the problem is about gas drilling, perhaps even hydrofracturing. It is not. Later on we get this:

    [The PA DEP] requested that the U.S. Environmental Protection Agency revoke the federal deep well injection permit that allows Consol to dispose of coalbed methane drilling waste water…

    So the waste water, IF it is the cause, comes from coal mining, not natural gas hydrofracturing. We need to be very clear about that. Blacksville No. 2 is a coal mine–there is no drilling for natural gas at that location. The PA DEP is saying that discharges from the coal mine into the creek “may have contributed” to the fish kill. Consol is vigorously denying the connection.

    So what is the connection to drilling in the Marcellus? A fantastical story. Here’s another paragraph, deep in this article:

    The Pennsylvania DEP said that algae — which may have “hitchhiked” to the Mason-Dixon Line on drilling rigs brought up from Texas to work in the Marcellus shale gas fields in Pennsylvania and West Virginia — was able to flourish in a brackish Dunkard Creek because of the high levels of dissolved solids and chlorides discharged into the stream by Consol’s treatment facility.

    There you have it. Nasty coal miners weakened Dunkard Creek, and nasty gas drillers drove trucks from Texas to the area and those little algae devils had the nerve to hitchhike along and jump into the Creek right where it was weakened and cause this problem. Go figure.

    Oh, one more little wrinkle in this story, that comes from the Charleston Gazette:

    West Virginia environmental officials now say a nearby coal mine may not be the only reason fish are dying in Dunkard Creek.

    Department of Environmental Protection officials say more dead fish have been found in the creek, but more than a mile upstream from Consol Energy’s Blacksville No. 2 mine.

    So, more than a mile upstream from where the coal mine discharges into Dunkard Creek they found dead fish. If the “weakened” water was downstream and the algae flourish in weakened water, how might that have somehow traveled upstream? Oh wait, I’m using logic instead of blind eco-nut belief…what was I thinking??

    Bottom line: I’m not categorically saying the coal mine plays no role, nor that hitchhiking algae plays no role. I am saying before we declare such things to be the case, let’s investigate and use some SCIENCE instead of blind and biased beliefs to declare a combination of coal and natural gas mining as the cause.

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    Anti-Drilling Organizer Predicts Environmental Holocaust

    Pocono Record (Oct 9):
    Environmentalist: Firms drilling for natural gas would ‘destroy’ local state game lands

    A reporter with anti-drilling views (Jessica Cohen) interviews a local anti-drilling organizer (Pat Carullo) in Northeast Pennsylvania. In the process, you get an article shot full of lies. Mr. Carullo is upset over 2,500 acres owned by the Mushpaugh Sportsman’s Association in Lackawaxen (privately owned, I might add), that are being leased to Cabot Oil & Gas. Mr. Carullo predicts environmental holocaust. He then goes on to rail about the state leasing public lands for drilling, confusing the two issues–the state leasing of public lands held in trust for all citizens, and citizens (or groups of citizens) who possess private property rights guaranteed by the U.S. Constitution. The entire “article” is so full of random tirades and so completely one-sided, it’s a joke.

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    Pennsylvania Budget Almost There – With No Drilling Tax

    Philadelphia Inquirer (Oct 9):
    Pa. budget pieces start to fall into place

    With a state budget still not adopted, and now over 100 days late, Pennsylvania is finally about there. The good news for drillers…no severance tax this year:

    Also not in the package is a tax that some lawmakers had wanted to impose on natural-gas drilling in the vast formation known as the Marcellus Shale.

    Republicans in the Senate – and later Rendell – opposed starting such a tax this year, arguing that it would stunt drillers in an industry still in its infancy in the state.

    Kudos to the Republican Senate for protecting landowners’ money.

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    Philadelphia Inquirer – In a Snit Over Rendell Aide

    Philadelphia Inquirer (Oct 8):
    Editorial: Drilling for friends

    A snarky editorial with a snarky title from the lefties at the Philadelphia Inquirer. Actually has me laughing with a smile on my face. 🙂 The self-righteous anti-drillers are outraged that a top Democrat has defected from government to work for industry–in this case an aide to Gov. Rendell who was the governor’s point man on drilling in the Marcellus in Pennsylvania. He’s gone to work for (gasp), an energy company that’s drilling in PA. The anti-drillers see it as a betrayal and hint there may have been payoffs involved. For shame! Payoffs in the Rendell administration? Say it ain’t so. Shocking, I tell ya.

    Anyway, MDN finds it very amusing that the Inquirer never says a peep when top Democrats defect (either at the state level or federal level) to take high paying jobs with lobbying firms. It seems only people like Karl Rove (who left the Bush White House to work for Fox News), and people on the right deserve their righteous indignation. Oh, and Democrats who flip and start to work for “the other side.”

    Like a said, puts a smile on my face.

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    Fair and Balanced Column on Drilling in Philly Inquirer

    Philadelphia Inquirer (Oct 8):
    Daniel Rubin: Hard to extract consensus on natural gas

    A very fair and balanced piece by Philadelphia Inquirer columnist Daniel Rubin. In fact, a delight to read with some very good information. Mr. Rubin recently attended a meeting hosted by the League of Women Voters, who had invited people on both sides of the drilling issue to speak. On the pro-drilling side was Stephen Rhoads, chief lobbyist for the state’s oil and gas industry. Rhoads shared some excellent information, including how much taxing extraction in Pennsylvania would actually raise ($26 million this year), and how many active natural gas wells there are in PA (329 hydrofactured gas wells right now). He also said the gas industry will provide 174,000 jobs in PA at an average salary of $60,000 per year. Be sure to read this article.

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    Residents: Keep drilling discharge out of the Susquehanna

    Wilkes-Barre Times Leader (Oct 7):
    Residents: Keep drilling discharge out

    The Pennsylvania Department of Environmental Protection (DEP) held a public hearing on Tuesday in Tunkhannock, PA on the question of whether to grant a permit to discharge treated water that comes from drilling into the Susquehanna River. Local members of the community turned out to (mostly) oppose it. The article says landowners and drilling companies were not present at the meeting. The view the media and eco-nut groups want to create in people’s minds is that water used in hydrofracturing is hopelessly contaminated and can never be reused again. From the article:

    But the economic development comes at an environmental cost that some residents are unwilling to accept, such as contamination to water that’s forced underground to crack the shale and release the gas.

    The process is called hydraulic fracturing, and the fluid used, while mostly water, contains hazardous chemicals and lots of salt.

    North Branch Processing LLC hopes to build a plant near Skyhaven Airport to clean the “frac” water and discharge it into the river. The hearing, called by the state Department of Environmental Protection, was on a permit for that discharge.

    Residents said the water should be reused for “fracing” rather than put into the river.

    No argument here that the water can and should be reused for more hydrofracturing. However, at some point, some of this water will need to be treated and put back into the environment. If it’s unsafe to do so, then hydrofracturing is fundamentally an unsafe practice that should be disallowed. MDN believes hydrofactured water can be treated so that it’s safe. Let’s get some more science and facts injected into the debate and less speculation and scare tactics.

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    Range Announces Management Additions and Bank Borrowing Base Reaffirmation

    Press Release from Range Resources (Oct 7):
    Range Announces Management Additions and Bank Borrowing Base Reaffirmation

    FORT WORTH, TEXAS – Range Resources Corporation announced today that it has hired Joseph H. Frantz, Jr. as Vice President of Engineering and K. Scott Roy as Vice President of Government and Regulatory Affairs for the Marcellus Shale Division located in Pittsburgh, Pennsylvania.

    Mr. Frantz brings more than 26 years of petroleum engineering experience with Texaco, S.A. Holditch & Associates and Schlumberger. Recently, Mr. Frantz led Schlumberger’s shale evaluation team for various emerging shale formations, including the Barnett, Fayetteville and Marcellus. Mr. Frantz has extensive experience working in the Appalachian Basin, and he has performed studies on topics ranging from reservoir simulations to hydraulic fracture optimization. He holds a bachelor’s degree in Petroleum and Natural Gas Engineering from Penn State University.

    Mr. Roy previously served as Executive Deputy Chief of Staff in the Office of the Governor of the Commonwealth of Pennsylvania. He has spent more than 17 years in public service in various positions, including key roles in both the Rendell and Ridge administrations and acting as the Governor’s liaison to various regulatory and environmental agencies. Mr. Roy earned his bachelor’s degree from Allegheny College and his juris doctorate from the Dickinson School of Law at Penn State University.

    Range also announced that at its regularly scheduled review, the Range bank group unanimously reaffirmed the Company’s $1.5 billion borrowing base effective September 30, 2009. Range elected to retain the existing $1.25 billion commitment amount, which provides in excess of $800 million in available liquidity. There were no changes to the interest rate, repayment terms or number of banks in the credit facility.

    Range’s Chairman and CEO, John H. Pinkerton, commented, “We are extremely pleased to announce these two new management additions to our Marcellus Shale team. Both Joe and Scott are Pennsylvania natives, who will report to Ray Walker in our Pittsburgh Marcellus Shale Division. Joe Frantz will head up our technical evaluation, not only of the Marcellus, but also for the other Appalachian shale formations. His extensive technical background in shale reservoir evaluations and optimized completion techniques is a key addition to our technical team. As the pioneer of the Marcellus Shale play, we fully understand the importance of forging a strong partnership among public, regulatory and industry interests to ensure that the development of the Marcellus Shale is accomplished in a responsible way. The addition of Scott Roy reflects Range’s commitment to being a good steward of Pennsylvania’s resources. Lastly, the unanimous affirmation of our borrowing base by our bank group reflects our low-cost structure, high-margin asset base and strong financial position. We are well positioned to continue to execute our plan of low-cost, consistent per share growth.”

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    Top Rendell aide quits to join gas driller

    Philadelphia Inquirer (Oct 7):
    Top Rendell aide quits to join gas driller

    An interesting bit of news: A top aide to Gov. Ed Rendell is stepping down to take a job in the drilling industry:

    K. Scott Roy is stepping down as the $146,000-a-year executive deputy chief of staff to Rendell to become vice president for government relations and regulatory affairs for Range Resources Corp., a Texas-based company with a major drilling stake in Pennsylvania.

    And another bit of interesting news found in this article is that Gov. Rendell wants to forego an extraction tax–for now (although the Democrats in the legislature are still trying to get a tax passed for this year):

    [Rendell’s call for an extraction tax] changed Aug. 31. In a move that took even some of his top aides by surprise, Rendell said at a news briefing that he was giving up his push for the tax this year.

    He said he changed his mind after meeting with industry executives who convinced him that imposing the tax now would stunt the growth of drilling in the state.

    “We felt we should let the industry get off to a good start, and that surpasses our need for money,” Rendell said Aug. 31. He said he favored starting such a tax next year.

    The article is mostly quoting eco-nut groups moaning about a potential conflict of interest by Mr. Roy’s “sellout” to the drilling industry.

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    PA House budget unlikely to advance

    Pittsburgh Post-Gazette (Oct 3):
    House budget unlikely to advance

    Pennsylvania still has not adopted a budget for the new fiscal year. Part of the wrangling is how to raise taxes to meet the ever growing demand of government to transfer wealth from the producers of society to the non-producers. In PA, the Democrats want to tax natural gas drilling, which of course will take money out of the landowner’s pocket…make no mistake, any tax on drilling will be passed on as an “expense” by the energy companies, reducing royalties to landowners. The Republicans in the PA statehouse are trying to stop it. Make your voice heard if you’re in PA!

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    Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

    Pittsburgh Post-Gazette (Oct 4):
    Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

    A highly speculative and irresponsible article trying to tie an algae buildup along the Pennsylvania-West Virginia border to drilling for natural gas. I would go as far as saying it’s pure fantasy. But that’s what passes for “news” these days. Part of the article ties in completely unrelated news, like the Cabot problems in Northeast PA, with this one–a favorite tactic of people who don’t have a case.

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    Exxon Leases 19,400 Acres in Pennsylvania Marcellus Shale

    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

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    Finally Some Common Sense About (Not) Taxing Marcellus Production in Pennsylvania

    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”

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    Breaking News: Dimock Gas Wells Pass DEP Test, Cabot Not at Fault

    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

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    Lock Haven University Biology Professor (and Landowner) Recounts Positive Experience with Drilling in the Marcellus

    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)

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    Lackawanna College Predicts 90,000 New Jobs from Marcellus Drilling, Offers New Degree in Oil & Gas Production Technology

    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.