Penn State Extension offering natural gas taxation, finance workshops
http://live.psu.edu/story/50501#nw69
Friday, December 17, 201
Penn State Extension offering natural gas taxation, finance workshops
Marcellus shale natural-gas drilling rigs dot the northcentral part of the state.
University Park, Pa. — Penn State Cooperative Extension will be holding three Natural Gas Taxation and Finance Workshops across the state in January 2011.
The first will be Jan. 12, at the Westmoreland County Cooperative Extension office, 214 Donohue Road, Greensburg; the second will be Jan. 19 at the Genetti Hotel and Suites, 200 West 4th Street, Williamsport; and the third will be Jan. 26 at the Riverstone Inn on Route 6 in Towanda.
The programs will run from 8 a.m. to 5 p.m. and will be geared for financial advisers, such as attorneys, accountants, financial planners, tax preparers and small-business owners. Landowners also are welcome.
“Gas taxation is extremely complicated, and it’s important for landowners to get the best advice possible to save money and avoid unnecessary taxes,” said Michael Jacobson, Penn State associate professor of forest resources. “But these programs are for educational purposes only and are not intended to be legal advice — if you need that, consult a tax professional or an attorney.”
Besides Jacobson, instructors will include Tim Gooch with the Pennsylvania Institute of Certified Public Accountants and ParenteBeard LLC; Dale Tice, attorney with Marshall, Parker and Associates; Jeffrey Kern, president of Resource Technologies Corporation; and Ross Pifer, director of the Agricultural Law Resource and Reference Center at Penn State’s Dickinson School of Law.
The registration fee is $120 if paid a week or more prior to the programs; registration will cost $150 after that. The fee will cover breaks, lunch and all course materials. The workshop will provide eight hours of continuing-education credits for attorneys, accountants and professional foresters.
Additional information and registration may be found online at http://guest.cvent.com/d/wdqt61. Questions related to course content may be directed to Mike Jacobson at 814-865-3994 or mgj2@psu.edu.
Penn State encourages persons with disabilities to participate in its programs and activities. Those who anticipate needing special accommodations or have questions about the physical access provided should contact Jacobson in advance of their participation or visit.
Napoli Bern Ripka & Associates, LLP Views Cabot Oil’s Use of DEP Consent Order as Improper
http://www.prnewswire.com/news-releases/napoli-bern-ripka–associates-llp-views-cabot-oils-use-of-dep-consent-order-as-improper-112236604.html
Napoli Bern Ripka & Associates, LLP Views Cabot Oil’s Use of DEP Consent Order as Improper
NEW YORK, Dec. 21, 2010 /PRNewswire/ — Attorneys of Napoli Bern Ripka & Associates, LLP, representing plaintiffs in Dimock, Pennsylvania who have sued Cabot Oil & Gas Corporation (Fiorentino v. Cabot Oil & Gas Corp., USDC-Middle District of PA., Docket No.: 3:09-CV-02284) for contamination of their drinking water announced today that Cabot and its attorneys have attempted to use a consent order entered with the Pennsylvania Department of Environmental Protection (DEP) to allegedly mislead their clients into waiving their rights to continue the litigation.
The Dimock plaintiffs have sued Cabot Oil over its use of hydraulic fracturing known as “fracking.” Natural gas drillers use fracking to get gas that is trapped in pores and fissures in the sub-surface rock. The method involves pumping a toxic stew of chemicals and water at very high pressures into the rock to “fracture” it thus allowing the gas to escape up into the well. Fracking causes groundwater contamination from surface releases, leaking well casings and the chemicals working their way up to potable water supplies.
The DEP determined that Cabot had failed to complete its obligations under an earlier consent order by failing, among other things, to “permanently restore and replace water supplies” and also failing to “completely eliminate the unpermitted discharge of natural gas into the waters of the Commonwealth” from its gas wells in the Dimock/Carter Road areas. As a result, the DEP entered a consent order with Cabot on December 15, 2010. The Order requires Cabot to do a number of things, including paying the greater of $50,000 or two times the assessed value of the [affected] property into nineteen escrow funds to “pay for or restore and/or replace the water supplies or to provide for ongoing operating or maintenance expense.” This money was to be paid without any obligation on the part of the property owner, a number of whom have been involved in civil litigation against Cabot in the United States District Court for the Middle District of Pennsylvania (December 15, 2010 Consent Order and Settlement Agreement).
Instead of simply notifying the attorneys for these plaintiffs, Cabot’s agent reportedly telephoned a number of the plaintiffs directly on December 17, 2010. Cabot’s attorneys opined in a December 20, 2010 letter to the Napoli office that the agent’s calls were not a violation of Rule 4.2 of the Pennsylvania Disciplinary Code for Attorneys, which precludes directly contacting an adversary, known to be represented by counsel, because the agent is not himself an attorney.
In addition to advising plaintiffs, all of whom are represented by legal counsel, that Cabot was required to test their water supply under the Consent Order, Cabot also reportedly told those plaintiffs that they would be required to sign releases of all of their claims against Cabot in the litigation to obtain the payment already due them under the Consent Order. Nothing in the Consent Order with DEP requires the plaintiffs to sign such releases and signing the release would have foreclosed the plaintiffs’ ability to continue to seek damages in their civil suit. The damages claimed against Cabot are far higher than the amounts Cabot is required to pay by the DEP consent order.
Said plaintiffs’ attorney Marc Jay Bern states, “Cabot’s attorneys claim they are not responsible for their client’s unethical and dishonest conduct in calling my clients and misleading them about the need to sign releases to obtain the money due them under the Consent Order. They knew Cabot (their client) was making these calls and they are just as responsible as Cabot and its General Counsel, himself an attorney who is bound by the Disciplinary Code to avoid contact with litigation adversaries who are represented by counsel.” Bern continued, “Cabot’s conduct violates every precept of fairness and honesty toward these people who neither signed on to the Consent Order nor were involved in negotiating its terms.”
Press Release Contact Information:
Marc Jay Bern
Senior Partner
Napoli Bern Ripka & Associates, LLP
(212) 267-3700
mjbern@napolibern.com
DEP orders Tamaqua to fix sewer discharge
http://republicanherald.com/news/dep-orders-tamaqua-to-fix-sewer-discharge-1.1080322
DEP orders Tamaqua to fix sewer discharge
BY BEN WOLFGANG (STAFF WRITER bwolfgang@republicanherald.com)
Published: December 21, 2010
TAMAQUA – The borough has a little more than eight months to identify and reroute all illegal sewer discharge into Wabash Creek, the state Department of Environmental Protection ordered last week.
“The borough’s failure to address the problem left us with no choice but to order them to comply,” DEP’s Northeast Regional Director Michael Bedrin said in a written statement Monday.
According to DEP, at least two locations have been illegally discharging sewage directly into the creek, and there are 39 other potential illegal discharge sites.
The Tamaqua Public Library, 30 S. Railroad St., is one of the two confirmed locations, according to DEP.
DEP conducted dye tests earlier this year confirming the illegal discharge. Complaints about the discharge have been ongoing for several years and efforts to fix the problems have been unsuccessful, DEP said.
The discharges violate Pennsylvania’s Clean Streams Law.
“We want this addressed as quickly as possible,” DEP spokesman Mark Carmon said Monday. “This isn’t something new. They should have been looking at this for a while.”
DEP has ordered the library to connect to the borough sewer system by May 31, 2011. The other sites have until Aug. 31 to comply.
“There are no excuses for these violations. The borough was responsible for dealing with this pollution, failed in that responsibility and allowed raw sewage to be discharged into the creek,” said Bedrin.
DEP has ordered the borough to:
– Take whatever steps necessary to require the library to connect to the Tamaqua wastewater system
– Take whatever steps are necessary to investigate the sources of the sewage, notify owners of the problem and order them to correct it
– Identify any and all pipes funneling sewage directly into Wabash Creek
– Submit a report to DEP by Sept. 30 documenting the results of borough investigations and outlining the steps taken to address the problem
– Submit quarterly written progress reports
Tamaqua Mayor Christian Morrison and solicitor Michael Greek had no comment and directed all questions to borough manager Kevin Steigerwalt, who did return calls Monday.
Rendell laments lack of Marcellus revenues
http://citizensvoice.com/news/drilling/rendell-laments-lack-of-marcellus-revenues-1.1078531
Rendell laments lack of Marcellus revenues
By Robert Swift (Harrisburg Bureau Chief)
Published: December 17, 2010
HARRISBURG – The failure to enact a state severance tax on natural gas production is dragging down efforts to keep the state budget balanced through the end of the fiscal year, Gov. Ed Rendell said Thursday.
“We will have a budget deficit at the end of this year at $63 million,” Rendell said, referring to the estimated revenue yield if a severance tax had been enacted before the legislative session ended last month.
House Democratic and Senate Republican leaders had set an Oct. 1 target date to pass a severance tax, but the effort bogged down in disagreement over a tax rate, revenue distribution, scope of drilling-related issues to address and the emergence of the severance tax as a key issue in the gubernatorial race.
Rendell highlighted the severance tax issue at a traditional midyear briefing on how revenue projections for the 2010-11 budget passed in July are bearing out. This was his last briefing as governor.
Gov.-elect Tom Corbett opposes a severance tax. Some Republican lamwakers have discussed letting municipalities charge gas companies fees to cover the impact of drilling on roads and services as an alternative to a severance tax.
The lack of a severance tax means that local communities in the drilling boom areas are missing out on revenue to help pay for road repairs and environmental protection, said Senate Minority Leader Jay Costa, D-Pittsburgh.
The governor and GOP senators are at fundamental odds over how to distribute severance tax revenue, said Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi, R-Chester.
“We believe the primary recipients of any revenue from such a tax should be the local communities being impacted by Marcellus Shale development and environmental projects across the state,” he added. “The governor believes the lion’s share of that revenue should go to state government.”
Arneson said it’s too early to say whether the current fiscal year will end in a deficit or not.
Beyond balancing the current budget, Rendell’s briefing focused on a projected $3 billion to $4 billion deficit facing the 2011-12 budget with the end of federal stimulus money and earlier one-time revenue transfers and other factors.
rswift@timesshamrock.com
DEP-Cabot settlement gets Rendell’s approval
http://citizensvoice.com/news/drilling/dep-cabot-settlement-gets-rendell-s-approval-1.1078462
DEP-Cabot settlement gets Rendell’s approval
By Robert Swift (Harrisburg Bureau Chief)
Published: December 17, 2010
HARRISBURG – Gov. Ed Rendell gave his personal stamp of approval today to the settlement between the Department of Environmental Protection and Cabot Oil and Gas Corp. to address water contamination problems in Dimock Township.
“It’s a good settlement because they (Cabot) share the fiscal responsibility of making this right,” Rendell said.
Under the settlement, Cabot agrees to pay $4.1 million to residents affected by methane contamination attributed to faulty Cabot natural gas wells. In exchange, DEP has dropped its plan to build a 12.5-mile waterline from Montrose to Dimock Township to restore water supplies to 19 families affected by methane contamination in their water supplies.
Rendell said the settlement is due to the determination of DEP Secretary John Hanger to reach a solution to the township’s water woes.
State regulators will watch Cabot very carefully as the company resumes hydrofracking operations and drilling for natural gas pockets in the area next year as provided under the settlement, Rendell said.
rswift@timesshamrock.com
Dimock residents see “dirty tricks” in Cabot document
http://citizensvoice.com/news/dimock-residents-see-dirty-tricks-in-cabot-document-1.1079002
Dimock residents see “dirty tricks” in Cabot document
By Laura Legere (Staff Writer)
Published: December 18, 2010
Legal releases delivered Thursday by the gas company deemed responsible for methane contamination in Dimock Twp. water wells have some township residents accusing the driller of using “dirty, dirty tricks” to try to free itself of a lawsuit pending in federal court.
Early on Thursday morning, attorneys for Cabot Oil and Gas Corp. delivered documents to 19 Dimock families who will split $4.1 million as part of a settlement announced 14 hours earlier between the Texas-based driller and the state Department of Environmental Protection.
Each family is entitled to a payment worth twice the value of its home as a remedy for methane in the drinking water that DEP linked to faulty Cabot gas wells. Under the agreement worked out between the company and the state, Cabot must put each family’s share of the money in escrow accounts that the residents can access after 30 days at the earliest.
DEP Secretary John Hanger emphasized when announcing the settlement that it carried “no requirement” for the families to drop the federal lawsuit that 11 of them have filed against Cabot alleging broader harm and damages to their health and property.
But the letter Cabot delivered Thursday offered a different deal: the families were asked to release the company from all legal claims against it in exchange for receiving the money.
Cabot spokesman George Stark said the offer was intended only as a way to speed up the payments.
“It is a way in which they can get their payment now, immediately, and we’ve heard from some that they’d like that to be an option,” he said. “The other option is to wait for the escrows to be fully funded, which would be about 30 days, and then they can draw their dollars down from there.”
“They are under no obligation one way or another to sign or not to sign,” he added.
The families’ attorney, Leslie Lewis, said the Cabot document contained no information that identified it as an optional offer to speed up the payments.
“It really doesn’t say that,” she said.
“It was an effort to acquire a waiver for all present and future claims in exchange for this money. They tried to slip something by.”
The families called the letter from Cabot a ploy meant to appeal to the poorest and most vulnerable among them.
“They’re sneaky,” resident Julie Sautner said.
“There may be people that are desperate but nobody is that desperate. We’re going to wait.”
llegere@timesshamrock.com
Congress moves to reduce lead in drinking water
http://www.washingtonpost.com/wp-dyn/content/article/2010/12/17/AR2010121705270.html
Congress moves to reduce lead in drinking water
By JIM ABRAMS
The Associated Press
Friday, December 17, 2010
WASHINGTON — Congress on Friday sent President Barack Obama a bill that would significantly reduce exposures to lead in drinking water.
Lead contamination can pose serious health risks, particularly to pregnant women and children. It has been linked to health problems such as kidney disease, hypertension, reduced IQs in children, and brain damage.
The House approved the bill on a 226-109 vote. The Senate approved it earlier on a voice vote.
The bill would set federal standards for levels of permissible lead in plumbing fixtures that carry drinking water, with allowable lead content going from the current federal level of as much as 8 percent to 0.25 percent. It limits the amount of lead that can leach from plumbing into drinking water.
Rep. Mike Doyle, D-Pa., said the new standards would nearly eradicate lead in facets and fixtures. He cited Environmental Protection Agency estimates that lead from these sources contribute to up to 20 percent of human exposure.
The bill becomes effective 36 months after it is signed into law. It would then prohibit manufacturers and importers from selling plumbing fixtures that don’t meet the new standards.
“In 21st century America, we have a responsibility to do more to protect our children and families against lead exposure acquired through plumbing systems,” said Rep. Anna Eshoo, D-Calif., who authored the bill in the House. “Lead-free plumbing is an existing alternative, it’s affordable and it’s time we adopt it across the nation.” Health studies, she said, have estimated that lead exposure costs the nation $43 billion in lost time and health costs.
“Lead, a toxic heavy metal, does not belong in our drinking water,” Senate sponsor Sen. Barbara Boxer, D-Calif., said Thursday night after the Senate passed the bill on a voice vote. “This is a major step forward in the effort to eliminate lead in our drinking water.”
Almost all the opposition came from Republicans. Rep. Cliff Stearns, R-Fla., questioned the necessity of passing a federal law when major producers of faucets are already making safer equipment and some states are imposing their own tough standards.
He added that “people should not mistake this bill as a panacea when studies have shown that lead service lines are the biggest culprits of leaked lead.”
An Associated Press investigation last year found that contaminants have surfaced at public and private schools in all 50 states, with lead among the most frequent causes of unsafe water.
Last month residents in New York City were told to run their taps for 30 seconds before drinking water after tests showed elevated lead levels in some older buildings.
“Lead in drinking water poses a dangerous health risk, particularly to pregnant women, infants and children, and it is refreshing to see that members of both parties in the Senate and House can agree on making the water we drink every day safer,” said Mae Wu, an attorney at the Natural Resources Defense Council.
Expert: Gas drilling about risks vs. rewards
http://citizensvoice.com/news/expert-gas-drilling-about-risks-vs-rewards-1.1078631
Expert: Gas drilling about risks vs. rewards
By Elizabeth Skrapits (Staff Writer)
Published: December 17, 2010
NANTICOKE – Natural gas drilling comes with risks to the environment and human health, and the issue is to determine whether those risks are worth the potential rewards.
Dr. Anthony Ingraffea, a professor at Cornell University’s School of Civil and Environmental Engineering, talked about what can go wrong with natural gas drilling and dispelled some myths about the process during a lecture Thursday at Luzerne County Community College.
“No industrial activity, even building a toaster, is risk-free,” he said.
Ingraffea stressed the importance of calculating the level of risk: taking the probability of things going wrong and weighing them against the expenses, costs and benefits.
The Marcellus Shale, which lies beneath much of New York and Pennsylvania, is rich in natural gas. However, it was not considered economically viable until four new technologies were developed, Ingraffea said.
These are directional drilling – going horizontal to access the thin layer of shale – high volumes of hydraulic fracturing fluid, using slick water to control the amount of power needed to pump large volumes of the fluid at high pressure quickly over long distances, and drilling multiple-wells on a single pad to access as much of the gas as possible in a particular area so as to require a minimum of leasing and capital expenditures.
Hydraulic fracturing or “fracking” involves blasting thousands to millions of gallons of water containing chemicals and sand thousands of feet underground. This re-opens fractures in the shale, where the natural gas collects. Ingraffea pointed out that the gas is not in the rock itself, but in its natural fractures or joints.
Part of the water used in fracking comes back laden with chemicals, naturally occurring radioactive material, heavy metals and salt. This flowback water has to be disposed of, he said.
Although hydraulic fracturing was around since 1947, the four technologies are relatively recent, Ingraffea said. The first hydraulically fractured well in the Marcellus Shale was drilled in Washington County in 2003, he said.
Slick-water, high-volume fracking has a higher risk to the environment and human health for reasons including that it requires much more industrial development over large areas with heavy equipment operating constantly, and it produces much higher volumes of wastewater.
As the number of wells and the volume of wastewater increases, “odds go up that bad things will happen,” Ingraffea said. These range from blowouts to leaking wastewater trucks.
Research hasn’t been done on the cumulative effects of natural gas drilling, he said. In Pennsylvania – New York has a moratorium on drilling – gas companies are only a few years into what could be a 30- or 40-year development.
And the problems with natural gas drilling, such as methane migration and frack fluid migration, are not new: the industry has known about them for 25 years, Ingraffea said. They are being solved – but they’re not solved yet, he said.
There is no way to guarantee the cement casing, which is poured around metal pipes in the well as a layer of protection, will be perfect, Ingraffea said. The casing can corrode or burst, for example.
The natural gas industry does not have complete control over the wells: they are working thousands of feet underground, where they can’t hear or see, and they rely on imperfect computer models, he said.
Ingraffea said he thought the current rate of natural gas well accidents is too large. If, as predicted, there will be 400,000 Marcellus Shale wells drilled over a 50-year period, how many major failures are acceptable? he asked.
“We’re already at one for every 150 wells. That’s 98.5 percent reliability,” Ingraffea said.
“You’ve got to make the call. What’s an acceptable level of risk?” he continued. To do that, you’ve got to see the quantification of the things that can go wrong. We’re just now beginning in Pennsylvania to be able to quantify the number of accidents per well, or the number of accidents per truck trip, or the number of accidents per million gallons of frack fluid. That stuff could have been modeled. You don’t have to wait for your experience to learn these things. They could be predicted.”
Basin commission issues watershed drilling rules while N.Y. officials call for delay
http://www.strausnews.com/articles/2010/12/17/pike_county_courier/news/2.txt
December 16, 2010
Turbulent week in natural gas drilling issue
Basin commission issues watershed drilling rules while N.Y. officials call for delay
West Trenton, N.J. For better or worse, rhetoric turned to action this past week as the Delaware River Basin Commision (DRBC) issued rules for the controversial horizontal drilling process for natural gas.
According to DRBC, the ruling “applies to all natural gas development projects involving siting, construction, or use of production, exploratory, or other wells in the basin regardless of the target geologic formation, and to water withdrawals, well pad and related activities, and wastewater disposal activities comprising part of, associated with, or serving such projects.”
Early responses were predictably mixed as proponents in New York and Pennsylvania saw the rules as a break in a logjam that would allow development of leases and new economic activity.
Opponents point to widespread instances of ground water pollution from chemicals pumped into drilling holes to “frack” or break up and separate gas in the Marcellus shale formation. They noted that the rules will allow companies with large areas of contiguous leased properties to drill throughout their holdings with a single permit.
Reviewers continue to evaluating the new rules but N.Y. opponents say despite their content, they should not have been issued prior to the completion of environmental studies.
The DRBC rules were issued Dec. 9, days after passage of a three-month moratorium on all gas drilling by N.Y. State Legislature and a letter to the commission from N.Y. Governor David Paterson asking for a delay in the rulemaking until state and city studies were completed.
In asking for delay and consultation, Paterson wrote on Dec. 6 that, “DRBC appears intent on going forward with a regulatory program that would not have the advantage of the full investigations and public deliberations taking place in New York.”
New York State earlier decided that separate environmental reviews would be necessary for any natural gas projects that might be proposed within the unfiltered New York City drinking water watershed surrounding its upstate reservoirs and the DRBC rules have ceded lead decision making to the various state governments.
Still, N.Y. City Mayor Michael Bloomberg wrote on Nov. 17, also asking for delay during ongoing studies, “Because full-scale development of natural gas exploitation in the watershed could degrade water quality, a rush to regulate and drill risks the long-term viability of one of the most important drinking water sources in the United States”.
The mayor said the “stakes are high” and that billions have been invested in clean water in the Delaware River watershed, which provides drinking water for some 15 million people.
Paterson on Dec. 11 vetoed the state moratorium bill and issued an executive order which would prohibit horizontal fracking gas exploration until July 1, while allowing continuing operation of conventional vertical gas drilling.
The full text of the 83-page document is online at http://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm .
There will be a 90-day comment period, with written comments, via surface mail and e-mail through the DRBC Web site, accepted through the close of business (5 p.m.) March 16. Other forms of comment will not be accepted.
A debate over fly ash disposal
http://www.post-gazette.com/pg/10350/1109210-114.stm
A debate over fly ash disposal
Thursday, December 16, 2010
By David Templeton and Don Hopey, Pittsburgh Post-Gazette
Piles of fly ash sit atop a hill at the Matt Canestrale Contracting Inc. disposal site in La Belle, Fayette County.
Before Penn Power created Little Blue Lake in 1975, the company circulated fliers advertising a picturesque recreation area where people could boat and ski on blue waters.
So 35 years later, where are all the boats and skiers?
And, for that matter, where’s the lake?
The so-called “lake” in Beaver County’s Greene Township, near the boroughs of Georgetown and Hookstown, was created as a disposal pit for calcium sulfate and fly ash generated at the 2,390-megawatt Bruce Mansfield Power Plant in nearby Shippingport.
Today it looks like moonscape.
Coal waste, 400 feet deep and even deeper, extends across the state line into West Virginia’s Northern Panhandle and covers about 1,000 acres on a site that is 2 square miles. The 100 million tons of waste includes 60 million tons of calcium sulfate — generated by the scrubbing process to remove sulfur dioxide from smokestack emissions — and 40 million tons of fly ash, which is a byproduct of the coal-burning process to produce electricity.
The only sign of life on a late-summer day was a flock of Canada geese walking — not swimming — across the weird surface.
As one of the nation’s largest coal-waste disposal sites, Little Blue is a centerpiece of a nationwide debate about the safety of such impoundments and whether fly ash should be designated as hazardous waste.
Heavy metals in fly ash, including arsenic, lead, mercury, cobalt and thallium, should be designated as hazardous, environmental groups say.
But the power industry says such a designation will hinder beneficial uses for fly ash, including in concrete. Calcium sulfate is used in wallboard, but its dust can irritate eyes, skin, mucous membranes and the upper respiratory tract. Dust periodically has been a concern at the site.
Critics question whether the millions of tons can remain sealed on site or if their heavy metals leach into groundwater and damage the environment and public health.
The more immediate debate centers on whether leaching already has begun.
Site owner FirstEnergy Corp., based in Akron, Ohio, says its “first of its kind” disposal site is safe. Up to 3.2 million gallons of sludge are sent daily to the site through seven miles of overland pipes.
“It’s been operating for 34 or 35 years safely with all the structural integrity it is designed to have,” said Ellen Raines, spokeswoman for FirstEnergy, which always has owned Little Blue but previously under the name Penn Power.
The state Department of Environmental Protection supports that conclusion.
“Coal-ash facilities in the region have to manage the waste, so they figure out how much waste they have and how long they can use the site and how to plan for continued disposal,” said Diane McDaniel, DEP facilities chief for waste management. “It’s nothing unusual.”
But the Environmental Integrity Project, working on behalf of concerned Greene Township residents, says Little Blue already is posing risks to the environment and residents’ health.
Lisa Graves Marcucci, an Integrity Project official who’s been studying Little Blue for years, points to problems she says the company and DEP have refused to remedy them.
“[FirstEnergy has] 10 of 69 monitoring wells on site showing elevated spikes for arsenic — and that’s as recent as the first and second quarters of this year,” she said. “The monitoring wells are the sentinels that say there’s a problem at the site, and if not addressed, will leave the site.”
A report issued by the Integrity Project, the Sierra Club and Earthjustice in September says 39 coal-ash dump sites in 21 states, including Little Blue, “are contaminating drinking water or surface water with arsenic and other heavy metals.”
The report also says state governments aren’t adequately monitoring the sites and encourages the U.S. Environmental Protection Agency to enact new regulations designating fly ash as a hazardous waste to protect the public.
Every coal-ash site equipped with groundwater monitoring wells, it says, has concentrations of heavy metals — arsenic and lead included — that exceed federal drinking-water standards.
But Jeff Smith, a DEP geologist and expert on Little Blue Run and the disposal site, said quarterly data from monitoring wells at and surrounding the impoundment reveal no excess levels of primary contaminants. “That has been proven with the data and in all the residential samples I’ve collected,” he said.
Sporadic elevations in arsenic levels in 2009 and 2010 were traced to fertilizer FirstEnergy was using to plant grass over areas of the impoundment. Arsenic levels declined once the company changed fertilizers, Mr. Smith said.
In the 1970s, Penn Power built its earthen dam across Little Blue Run near the point where it enters the Ohio River, just north of Chester, W.Va., and across the river from East Liverpool, Ohio.
Initially, the company thought coal waste would sink to the lake bottom and harden into low-grade concrete, leaving the surface pristine and available for recreation. But it soon became apparent that the lake never could be open to the public, Ms. Raines said.
The entire disposal site now is encircled by a chain-link fence.
Unregulated waste
The American Coal Ash Association, which promotes beneficial uses for coal-combustion products, said the United States in 2007 produced 131 million tons of such materials, of which 75 million tons not used in concrete and other products had to be disposed of in 1,300 fly-ash dumps nationwide.
Most are not monitored or regulated.
Recent collapses of waste-impoundments display potential for health and environmental consequences when such systems fail.
The wall of a large impoundment of red sludge at the Hungarian Aluminum Production and Trade Co. collapsed Oct. 4 and sent the sludge flowing through a Hungarian town. Nine people died.
Fly-ash disposal became a domestic concern on Dec. 22, 2008, when a disposal cell at the TVA Kingston Fossil Plant in Tennessee collapsed and released 5.4 million cubic yards of ash slurry (ash mixed with water) onto 300 acres, polluting nearby Emory and Clinch rivers in the process.
A neighborhood had to be evacuated due to heavy-metal contamination and three homes were destroyed by the wave of water and ash.
Although soil samples contained arsenic, cobalt, iron and thallium levels that exceeded “residential Superfund soil-screening values,” the EPA ultimately ruled that the waste was not hazardous.
But the collapses have spawned fresh concern about Little Blue.
The dam, standing 400 feet high, looms over the Ohio River and represents that largest earthen dam in the eastern United States. In 2009 the EPA designated that the dam has “High Hazard Potential,” which means failure would lead to loss of life.
Ms. Raines of FirstEnergy said the dam’s height alone was reason for EPA’s hazard rating. She said the dam is safe: “It is inspected by our contractors twice a year and by DEP once a year.”
The dam, built with 9 million cubic yards of rock, has a base 1,300-feet thick and a top that’s 2,200 feet across, or about two-fifths of a mile. No one lives in the area between the dam and the Ohio River, Ms. Raines said.
Monitors are built into the dam to detect any movement. “This is not something taken lightly,” she said. “Safety has been the emphasis from the beginning.”
But Ms. Graves Marcucci said water seeps through the dam from the impoundment. But seepage is an expected consequence of the dam’s design, FirstEnergy said, noting that it collects the water and pumps it back into the impoundment.
Because the lake is full, the company has been filling sausage-shaped “geotubes” with dry waste since 2006 and stacking them atop the lake. FirstEnergy anticipates using Little Blue for five to eight more years. In time, it will be covered with mulch to promote vegetation growth. Only time will tell if the 1,300-acre impoundment can ever be used for anything other than a disposal pit.
“Keep in mind that this is a cement-like substance that hardens to a low-grade concrete” due to the presence of calcium sulfate, Ms. Raines said. “It dries up and sets. The situation in Tennessee was wet fly ash. That’s not the situation in Little Blue.”
DEP’s Mr. Smith said Little Blue’s white semi-solid surface is like putty; it’s not low-grade concrete but more substantial than a gel. The putty-like substance would help prevent heavy metals from leaching, he said.
Ms. Raines said FirstEnergy has tested well water on residential properties 70 times without discovering problems that can be traced to the impoundment.
But Ms. Graves Marcucci said the 100 million tons of sludge is pressing down on aquifers, creating pressure that potentially could cause heavy metals to leach into groundwater. Greene Township residents have no access to public water and rely on wells.
A University of Pittsburgh study, led by Conrad Dan Volz from Pitt’s Graduate School of Public Health, is studying water quality in Greene Township but results are not yet available.
Neighbors’ concerns
West Virginians living near the impoundment face their own set of problems. Water has begun seeping from hillsides surrounding the impoundment, raising fears that water from Little Blue could be moving off site.
One woman’s sloping lawn is rolling up like carpeting due to hillside seepage.
Two other people have thyroid and respiratory illnesses they link to exposure to the impoundment over the hill from their home. They say a FirstEnergy official advised them against eating vegetables from their backyard garden, but company officials said no such advisory was ever issued.
At the home of John Reed Jr. within 1,000 yards of Little Blue, FirstEnergy’s water-well testing showed arsenic levels above safe drinking water limits. The company and DEP confirmed the high levels in one reading, but attributed it to a bad well casing that allowed the natural arsenic from soil to infiltrate the well.
DEP officials said seeps from the hillsides around the impoundment are under investigation.
Mark Durbin, a FirstEnergy spokesman, said the seep issue is “something we’re aware of and have discussed with residents. “We are hoping to move soon to take care of it,” he said.
Another concern is FirstEnergy’s proposal to build a new dry-waste disposal site with a double clay liner in Greene Township. FirstEnergy already owns 23 percent of the township, and supervisors said they don’t want another waste dump.
Health link?
Ultimately, the issue focuses on whether health impacts can be linked to Little Blue. Residents have done informal health surveys that have scared them.
“We seem to have a high rate of cancer,” said Sandra Wright, Greene Township secretary-treasurer. “On any road you have two or three people living with cancer daily.”
The township wants air monitors to determine the extent of air pollution from local and downwind sources. It also is awaiting results from the Pitt study before deciding on a next step.
The Post-Gazette’s ecological study of mortality rates for heart and respiratory disease and lung cancer shows elevated rates for the combined area of Greene Township, Hookstown and Georgetown.
Heart disease deaths there were 46 percent higher than the national rate. The total of 88 deaths from all three diseases is 42 percent higher than the predicted number of 62 deaths, based on national rates.
Scientific studies say these diseases can be linked to air pollution, but there are no studies suggesting a direct link to heavy-metal or fly-ash exposure.
David Templeton: dtempleton@post-gazette.com or 412-263-1578. Don Hopey: dhopey@post-gazette.com or 412-263-1983.
First published on December 16, 2010 at 12:00 am