Pricetag to Test Water at Reservoir Near CONSOL Drilling Goes Up
CONSOL Energy has a contract and has actively been drilling Marcellus Shale wells (37 so far) near Beaver Run Reservoir in Westmoreland County, PA. The reservoir provides water to some 120,000 customers in the region. Just to keep an eye on things and to be sure none of the drilling has led to contamination of the reservoir’s water, the Municipal Authority of Westmoreland County contracts with Indiana University of Pennsylvania (IUP) to conduct quarterly water tests. Students both collect and analyze the data.
Two years ago the Municipal Authority paid IUP $55,000 for the work. Last year, $75,000. This year? The price is going up to $100,000. Built in to this year’s higher price is a “third party” review of the water quality…
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A truck with Marcellus Shale drill cuttings entering a landfill in Westmoreland County, PA triggered a radiation alarm last Friday. The truck was quarantined and after finding that yes indeed, the cuttings were a tad too radioactive for disposal at the landfill, the truck was sent back to the drilling site in Greene County.
In March 2010, CONSOL Energy (Cecil, PA) paid Dominion Resources $3.5 billion for 500,000 acres of Marcellus Shale gas leases, instantly tripling their lease holdings. Since that time, CONSOL has continued to invest in Marcellus acreage and they now have 750,000 acres under lease. But CONSOL had a problem: Not enough money to develop their vast Marcellus acreage. So they did what is now a common practice—they found a partner to invest. Yesterday, CONSOL and Noble Energy (Houston, TX) announced that Noble will buy a 50 percent interest in 663,350 net undeveloped acres and fund drilling and completion costs in a deal worth $3.4 billion over an eight-year period.