DCNR to collect money from drillers who harvest gas under public streams
republicanherald.com/news/dcnr-to-collect-money-from-drillers-who-harvest-gas-under-public-streams-1.1324563
By Laura Legere (Staff Writer llegere@timesshamrock.com)
Published: June 4, 2012
Natural gas drillers have to sign leases and compensate the state if they plan to collect gas trapped deep beneath publicly owned streams and rivers, according to a policy developed recently by the Pennsylvania Department of Conservation and Natural Resources.
The policy applies to gas gathered from pads on neighboring properties – away from the streams and their banks – where wells are drilled vertically before turning and boring laterally underground.
Waterways in the commonwealth are considered publicly owned if they are, or have ever been, used for commercial trade or travel. The list and maps of the waterways compiled by DCNR include hundreds of streams throughout the state’s Marcellus Shale region.
Where the state owns the streambeds, it also owns the mineral rights beneath them.
DCNR spokeswoman Christina Novak said the state is developing a standard agreement for companies who either want to drill horizontal wellbores under streams or who will, through hydraulic fracturing, draw gas from rock formations deep under the waterways. Unlike standard lease agreements for drillers who operate in state forests, the leases will not address surface impacts because there won’t be any on state property, she said.
“This would just allow an operator to access underneath a navigable waterway from nearby but to compensate the commonwealth because it is the owner of the resource,” she said.
The agency alerted gas drillers in March that the state would begin seeking compensation through lease payments and royalties for gas removed under the waterways.
The issue emerged because the mineral rights beneath publicly owned waterways were either impeding natural gas development or drilling was taking place without the state being appropriately compensated, Novak said.
DCNR has not determined how many miles or acres of public waterways will be included in the leasing effort or how much Pennsylvania might make from current or future gas leases. It is also still exploring if it can collect money from any companies that might already have pulled gas from under the waterways.
DCNR has created an interactive map to help operators determine which streams are considered publicly owned, but the agency also cautions in a policy summary that the list of waterways is neither official nor final.
The list developed so far is based primarily on statutory declarations of navigable waterways from as early as the 18th century, but a declaration is not required for a waterway to be considered navigable and the state says it reserves the right to add or drop streams from the list.
Publicly owned waterways in the heart of Northeastern Pennsylvania’s shale region include the Susquehanna and Delaware rivers; Tunkhannock, Bowman and Mehoopany creeks in Susquehanna and Wyoming counties, and Wyalusing, Wysox, Wappasening, Sugar and Towanda creeks in Bradford County.
Washington County families sue over fracking, water testing
www.post-gazette.com/stories/local/marcellusshale/washington-county-families-sue-over-fracking-water-testing-637631/?p=0
By Don Hopey / Pittsburgh Post-Gazette
May 26, 2012
Three Washington County families claim in a lawsuit that they face serious health problems, including a heightened risk of cancer, due to exposure to toxic spills, leaks and air pollutants from a Range Resources Marcellus Shale gas site.
The 182-page lawsuit, filed Friday in Washington County Common Pleas Court, alleges that Range and two commercial water testing laboratories, Microbac Laboratories Inc. and Test America, conspired to produce fraudulent test reports that misrepresented the families’ well water as good and contributed to their exposure to hazardous chemicals and a multitude of health problems.
Filed by attorneys John and Kendra Smith, the lawsuit seeks unspecified punitive damages and is based on information contained in hundreds of pages of water test reports and documents, many subpoenaed from Range and other defendants. In addition to Range, defendants named in the suit include 12 of the drilling company’s subcontractors or suppliers, two individuals and the two water testing laboratories. A jury trial is requested.
According to the lawsuit, Range Resources knew its shale gas development operation on the Yeager farm property on McAdams Road in Amwell had contaminated the groundwater with chemicals from a leaking drilling waste pit and a 3 million-gallon hydraulic fracturing fluid flowback impoundment as early as November 2010. But, the suit states, the company told the plaintiffs that tests showed their well water was safe to drink, shower and bathe in, cook with, and provide to farm animals and pets. Some of those animals were sickened, and some died.
The suit says the plaintiffs developed health problems that included nose bleeds, headaches and dizziness, skin rashes, ear infections, nausea, and numbness in extremities.
“It’s unfortunate that our clients had no choice but to file a civil action due to damage not only caused to their water and property, but to their health,” said Mr. Smith in a written response to a request for comment. “Had the [state Department of Environmental Protection] protected these people, it may have been a different outcome.”
Mr. Smith said the lawsuit is the first he knows of in Pennsylvania to allege that a Marcellus Shale gas drilling company didn’t provide complete and fully accurate water test results to residents and state regulators.
Range Resources spokesman Matt Pitzarella issued a statement saying the company cares about the quality of its operations and stands by testing that “has repeatedly proven that our operations have had no adverse impacts in this instance.” His statement went on to attack the motives of the law firm and attorneys representing the Amwell residents, and its tactics, which he characterized as “fear-mongering.”
“This isn’t about health and safety; it’s unfortunately about a lawyer hoping to pad his pockets, while frightening a lot of people along the way,” he said.
Mr. Smith said it’s easier to attack the messenger than to refute facts.
Range Resources has maintained for years that its Yeager operations, which include one “fracked” well and two drilled wells, condensate tanks, the flowback fluids impoundment and drill cuttings pit, have not contaminated groundwater.
The suit says full and complete test results, subpoenaed from Range but never revealed to residents near the Yeager well site, show that chemical contaminants similar to those found in the fracking flowback impoundment and the drill cuttings pit were also found in water samples from wells and springs.
Range showed or sent to the plaintiffs and the DEP less detailed test reports but, the lawsuit claims, omitted results for others, including several semi-volatile organic compounds that were present in the groundwater samples and the company’s impoundment and pit, and that showed the water was contaminated.
DEP spokesman Kevin Sunday declined to comment because the matter is in litigation.
Due to continuing health problems, three of the plaintiffs, Stacey Haney and her children have, on the advice of their doctor, moved out of their home on McAdams Road, about 1,500 feet from the Yeager flowback-water impoundment.
Toxicity testing of urine from all the Haney family members has measured higher than safe levels of toulene, benezene, arsenic, cobalt and cadmium. Benezene and arsenic are known carcinogens.
Plaintiffs Beth, John and Ashley Voyles, who live about 800 feet from the impoundment and drill site, and Loren Kiskadden and his mother, Grace Kiskadden, who live in separate homes about 3,100 feet from the Yeager impoundment, have had similar health problems and urine test results.
The filing alleges that in September 2011 Range provided incomplete drinking water test results from Test America to the DEP that omitted findings showing a high concentration of nitrate — which can cause cancer — plus fracking fluid, flowback water, uranium and silicon.
Mrs. Voyles sued the DEP in Commonwealth Court in May 2011, claiming the department wasn’t properly investigating odor and water complaints related to the Yeager impoundment. That case is pending.
Today both the Voyles and Haney properties are receiving replacement water supplied by Range.
But Range has denied Mr. Kiskadden’s request that it supply him with an alternative water source, based on the water test results that the company and the DEP said shows his well water was not contaminated by its drilling operations. He has appealed that determination by the DEP to the state Environmental Hearing Board.
The lawsuit also says Range used the Yeager drill cuttings pit to dispose of hazardous drilling waste from at least three other gas drilling sites in Washington County, and the pit leaked and contaminated groundwater.
In April 2010, DEP issued a notice of violation against Range for “failing to control/dispose of production fluids properly,” and a month later Range drained the pit, replaced the pit liner and excavated contaminated soil. Range has not been fined for that violation.
It’s the only violation DEP has issued to Range for its Yeager operations or to any of the defendants in the lawsuit, which alleges the defendants committed various violations of the Pennsylvania Clean Streams Law, the state Solid Waste Management Act, and the Hazardous Sites Cleanup Act.
Don Hopey: dhopey@post-gazette.com or 412-263-1983.
First Published May 26, 2012
Shale-gas development creates demand for environmental graduates
live.psu.edu/story/59790#nw69
Friday, May 18, 2012
The College of Agricultural Sciences' Environment and Natural Resources Institute recently held a Marcellus Shale Info-Fest for students.
UNIVERSITY PARK, Pa. — The Marcellus Shale natural gas play is having a significant impact on Pennsylvania’s economy, and Penn State’s College of Agricultural Sciences is helping to position students to benefit from associated employment opportunities.
Recently the college’s Environment and Natural Resources Institute held a Marcellus Shale Info-Fest for students in the College of Agricultural Sciences in environment-related majors to show them what the specialized industry has to offer in the way of jobs.
This year, in particular, there are many opportunities, according to James Ladlee, extension educator and director of special initiatives for the Marcellus Education and Training Center, which is a collaboration between Pennsylvania College of Technology in Williamsport and Penn State Extension.
“In 2011, roughly 1,900 Marcellus Shale wells were drilled, likely requiring more than 25,000 direct employees and nearly 45,000 indirect employees,” said Ladlee. “State data show that since 2008, core jobs related to shale-gas development have increased by nearly 17,000 just in Pennsylvania.”
Ladlee said College of Agricultural Sciences’ students often represent the strong work ethic, the interest in experiential learning and the creative problem-solving skills needed for the jobs in the shale-gas arena.
“They are among those who best understand the importance of using science-based information to create a better future,” he said. “All these skills are directly transferable to oil and gas exploration companies or businesses and government agencies that support or regulate gas development.”
The Marcellus Shale Info-Fest touched on a wide variety of jobs and careers related to environmental implications for shale development. Those jobs can be in the gas industry, government agencies, private firms and academia.
Shale gas is emerging as a significant economic driver in many places across the country, so students have many chances to get involved, Ladlee noted. It’s a relatively new industry to the East, so here the job opportunities are widely available.
“Although changes appear to be occurring, over the last several years the scale of shale-gas development in the northern tier of Pennsylvania and the southwestern part of the state was unprecedented,” Ladlee said. “Those areas have been hot spots. Thousands of jobs were created just in Pennsylvania, either directly related to drilling or indirectly related to the shale-gas industry.
Penn State College of Ag Sciences students are uniquely positioned to tackle all aspects of oil and gas development, Ladlee pointed out. Students with an education or background in environmental sciences, forestry, engineering, construction, geology, biology, agricultural law, energy business or information sciences are qualified.
“If a student wants to be on the front end of an industry or regulatory system that is growing and dynamic, there are opportunities,” he said. “Students can be a part of the foundation for a strong regulatory system or help to transform and create even better oil- and gas-management practices for industry from the inside.
“Students need to understand that there are opportunities. There are literally tens of thousands of jobs being created as a result of this particular energy development throughout Pennsylvania.”
Job and career information provided at the Marcellus Shale Info-Fest is posted online. Click here to watch a video and see resources for potential jobs related to shale gas development.
Bradford County water wells tested for methane
www.stargazette.com/article/20120521/NEWS11/205210388/Bradford-County-water-wells-tested-methane?odyssey=tab|topnews|text|FRONTPAGE&nclick_check=1
May. 21, 2012
Pa. officials, Chesapeake try to determine cause of gas migration
Pennsylvania officials and Chesapeake Energy are investigating a possible methane gas migration issue in Leroy Township in Bradford County.
The Department of Environmental Protection’s Oil and Gas Program received the initial report on Saturday evening, said Daniel Spadoni, the agency’s community relations coordinator.
Methane was detected in the headspace of two private drinking water wells. Both wells have been vented, DEP says. There have also been reports of gas bubbling documented in nearby wetlands.
Chesapeake’s Morse well pad — which contains two wells — is about one-half mile from the affected private wells. DEP has sampled four private wells in the area and a Chesapeake consultant is screening all private wells within a 2,500 foot radius of the Morse pad.
Brian Grove, Chesapeake’s senior director of corporate development, said the company was alerted Saturday to a complaint regarding residential water supplies and nearby surface water. The company, Grove said, is “working cooperatively with the Pennsylvania Department of Environmental Protection to investigate the situation.”
More information will be released as the investigation proceeds, the company said.
Methane migration, when methane gas leaks into water wells, happens when a gas well hits a pocket of naturally occurring methane gas in the earth, allowing the methane to seep into the soil. In the cases where it can be proved the contamination has been caused by natural gas drilling, gas companies can be made responsible for any remediation methods — installing new water wells, providing bottled fresh water or installing equipment to vent the methane.
Although the DEP strengthened its drilling regulations in February 2011 by mandating a higher grade of cement be used in the well casings, pressure testing the wells and more inspections, the methane migration problem has persisted.
In May 2011, DEP fined Chesapeake Energy for a series of water contamination incidents and a well-site fire that injured three workers. The company agreed to pay $900,000 for allowing methane to migrate up faulty wells in Bradford County and contaminate 16 families’ drinking water beginning in 2010.
In January, DEP sent a violation notice to Chief Oil & Gas for three gas wells in Wyoming County’s Nicholson Township saying there is 100-percent combustible gas between the cemented steel casings, which the agency uses as a sign of flaws in construction of the well. The investigation began after a nearby resident complained of high methane levels in well water supplies.
Methane levels above 28 milligrams per liter are a cause for concern because at that point, water can no longer hold the gas and it begins to escape to the air.
Meanwhile, DEP’s Spadoni said, and no methane has been detected inside any of the homes near the Morse well pad.
One of the wells being tested provides drinking water for a niece of Patricia Klotz, of Rome, Pa. Her niece lives near Rockwell Road in Leroy Township, and Klotz said her niece’s water is being tested every 12 hours and that the testing has been going on for a couple of days.
“But she and her neighbors are afraid to say anything, for fear of repercussions,” Klotz said.
The investigation is continuing and no determination has been made as to the source or sources of the methane, DEP says.
Pa. health care company seeks gas drilling facts
www.businessweek.com/ap/2012-05/D9USIMM83.htm
BY KEVIN BEGOS
May 20, 2012
Some people are absolutely sure gas drilling threatens public health, while others are absolutely sure it doesn’t.
Geisinger Health Systems is looking for more facts on the debate.
“Our concern is getting reliable data so we know what to do for our patients,” said David Carey, director of Geisinger’s Weis Center for Research in Danville, Pa.
Geisinger serves many patients who live in areas that have seen a recent boom in Marcellus Shale gas drilling. The gas-rich formation thousands of feet underground has generated jobs, billions of dollars and concerns about possible environmental and public health impacts from thousands of new wells.
“There’s a real need for reliable information for policymakers,” Carey said, yet some of the debate on the issue has been more emotion-driven than science-driven.
“Lack of data has not led to a lack of opinion,” Carey noted.
But with state and federal budgets under intense pressure, there hasn’t been much money available for serious medical research. Then over the last year, executives at Geisinger realized they had a big head start.
“We have a very long history of caring for patients in this region,” Carey said, noting the company serves 2.6 million patients and operates hospitals, clinics, and an insurance program in 44 north central and north eastern counties. That means they have vast troves of health care data, concerning everything from cancer to car accidents to asthma attacks.
“We can map the clinical data in both space and in time,” Carey said, meaning they can compare health in areas with gas drilling to similar areas where it isn’t happening.
Carey said the company isn’t presuming anything about the issue, though it is aware of both concerns and the economic value of the shale boom.
“Our position is, let’s collect the data and find out,” he said.
It may fall to private companies to do some of the work.
Until a few months ago, Pennsylvania public health officials had expected to get a share of the revenue being generated by the state’s new Marcellus Shale law, which is projected to provide about $180 million to state and local governments in the first year.
But representatives from Republican Gov. Tom Corbett’s office and the state Senate cut the health appropriation to zero during final negotiations, so now the state Department of Health is left with a new workload but no funding to examine whether gas drilling impacts health.
Many federal and state regulators say hydraulic fracturing is safe when done properly, and that thousands of wells have been drilled with few complaints of pollution. But environmental groups and some doctors assert that regulations still aren’t tough enough and that the practice can pollute groundwater and air.
The claims and counterclaims have been so extreme that some health experts feel the fear and confusion that’s been generated among the public is a problem by itself. Bernard Goldstein, a professor emeritus at the University of Pittsburgh School of Public Health, said experience has shown that patient trust is a key component in health care.
Goldstein said Pitt is also looking at ways to use health care data to answer questions about gas drilling and possible public health impacts.
Despite all the controversy over the issue, Carey hopes Geisinger can stay above the fray.
“To the extent possible, we’re trying to stay clear of any political land mines,” he said.
“We see this unfolding in phases. I could see a batch of early studies that might focus on some diseases. Asthma is a good example,” he said, since people with that disease would be very sensitive to possible changes in air quality due to gas drilling.
Geisinger hopes to issue some preliminary results of its data analysis within the next year, Carey said, while other aspects of the research will unfold over five, 10 or 15 years.
Residents: Pa. health dept. lacks in investigating claims of illness.
www.timesleader.com/stories/Residents-Pa-health-dept-lacks-in-investigating-claims-of-illness,149927
By KEVIN BEGOS
May 13, 2012
Inquiry finds several other shortcomings by agency concerning gas drilling.
PITTSBURGH — The Pennsylvania Department of Health says it investigates every claim by residents that gas drilling has caused health problems, but several people say the agency’s actions don’t match its words.
Two western Pennsylvania residents told The Associated Press that health officials have fallen short in responding to their health complaints.
The AP also found that the toll-free number the agency gives out for gas drilling complaints doesn’t mention the issue in its automated menu, and the agency’s website doesn’t have a specific place for people to file such complaints.
And the AP inquiry showed that the agency didn’t begin keeping track of possible health complaints tied to gas drilling until 2011, several years after a surge of activity in the gas-rich Marcellus Shale.
“Everybody kind of just passed the buck,” said Sheri Makepeace, a northwestern Pennsylvania resident who said that starting last year she tried calling the Department of Health and other agencies over fears that nearby drilling created health problems. “I’ve talked to so many different people and have gotten so many different stories.”
Christine Cronkright, a spokeswoman for the agency, said the agency stands by earlier statements that it responds to, investigates and issues a formal response to all complaints about gas drilling and public health. Officials are working on how and where to share information on the issue with the public and expect to release details in the near future, she said.
The AP also found that previous responses from the Department of Health about the numbers of complaints it has received about drilling and health have been at best confusing and at worst misleading.
The agency first told the AP that it had received a total of about 30 complaints, and then modified that to being 30 over the last year. Now, the agency says it didn’t even begin recording such complaints until 2011.
Cronkright also told the AP that the agency has no current investigations regarding people who claim gas drilling has impacted their health.
That puzzles Janet McIntyre, one of Makepeace’s neighbors.
She made a formal complaint by phone in late February and said a health department employee replied that he would get back to her in a few days. McIntyre said she purposefully waited 30 days for a response but none came.
“He sounded as if he wanted to get right on it. And that I would have people calling me,” she said. “I was very frustrated. I was getting nowhere. That was disheartening.”
The AP started asking the health department about problems in responding to complaints in April, and then in early May McIntyre sent a letter to the agency, outlining her experience.
On Thursday, a health official called her to apologize, she said, adding that “they dropped the ball. But at least they picked it up again.”
One public health expert who’s working on gas drilling complaints in Pennsylvania said the health agency is in a difficult position.
“I’m not surprised that their protocols are a little difficult to get in place. The response to something like this is really hard,” said David Brown, a former head of environmental epidemiology in Connecticut who is now working with the nonprofit Southwest Pennsylvania Environmental Health Project to examine complaints about gas drilling.
Until a few months ago, Pennsylvania health officials had expected to get a share of the revenue being generated by the state’s new Marcellus Shale law, which is projected to provide about $180 million to state and local governments in the first year.
But representatives from Republican Gov. Tom Corbett’s office and the state Senate cut the health appropriation to zero during final negotiations, so now the agency is left with a new workload but no funding for the job.
Five spills reported at gas pipeline sites
citizensvoice.com/news/five-spills-reported-at-gas-pipeline-sites-1.1313538#axzz1uZEq4r00
By Elizabeth Skrapits (Staff Writer)
Published: May 11, 2012
DALLAS TWP. – The state Department of Environmental Protection is monitoring a series of drilling mud spills at a natural gas pipeline installation.
Chief Gathering LLC, recently bought out by PVR Partners, hired contractors to install a pipeline to connect natural gas wells in Susquehanna County to the Transco interstate pipeline in Dallas Township.
Since May 1, there have been five spills of more than 6,000 gallons of water containing bentonite, a type of clay used in drilling operations, at two different Dallas Township sites: Leonards Creek on Kunkle Road and Upper Demunds Road and Goodleigh Road, outside Goodleigh Estates, according to a report from DEP. On Thursday, crews sucked up the mud at the Upper Demunds Road site using vacuum trucks.
Chief’s Vice President of Industry Affairs Kristi Gittins said releases of mud at pipeline boring sites are not uncommon and “we plan for them and we deal with them.” No chemicals or additives were used, she said.
DEP has been to the site and approved remediation plans, Gittins said. She said Chief is providing information to DEP and the agency does regular follow-up visits.
The DEP report shows five “inadvertent return to surface” incidents involving drilling mud with bentonite coming up from the ground at two horizontal drilling sites.
The first occurred at 8:30 a.m. May 1, with 50 gallons of mud released at a wetlands next to Leonards Creek on Kunkle Road. It was contained at the site. The next day at the same site 20 gallons escaped containment but did not impact the creek. Then again on May 2, 200 gallons overflowed at the site. It was also cleaned up, DEP reported.
In the fourth incident, on Monday, about 1,000 gallons of bentonite was spilled and drilling mud was discovered coming from an old springhouse between Kunkle Road and Leonards Creek. Not all the bentonite was contained at the time, and DEP reported the creek was cloudy. By Thursday, most of the bentonite was cleaned up.
The fifth incident occurred Saturday, when 5,000 to 6,000 gallons of bentonite was lost in wetlands about 200 feet off Upper Demunds Road, according to DEP. The drilling mud was contained on the site with hay bales and is being removed by a vacuum truck.
The Upper Demunds Road spill occurred outside an upscale development where the pipeline installation created controversy.
Several Goodleigh Estates residents sued their neighbors for leasing Chief a right-of-way, asking Luzerne County court to stop the pipeline construction on the grounds it violated the development’s covenants and would create a nuisance.
Chief was not named in the suit, but the company sued the residents, claiming their efforts to delay the pipeline could cost the company from $683,000 to $18 million or more. Chief also asked them to pay damages for making “defamatory and malicious” statements about the company in local media and on Facebook.
Chief and the residents came to an agreement in November that dismissed the suits.
Under the undisclosed terms of the agreement, the residents are prohibited from commenting about Chief.
eskrapits@citizensvoice.com, 570-821-2072
More shale wells to be levied fee than first thought
citizensvoice.com/news/more-shale-wells-to-be-levied-fee-than-first-thought-1.1311520#axzz1uHygpsqW
By Laura Legere (Staff Writer)
Published: May 7, 2012
Lackawanna and Luzerne counties may get a cut of the state’s shale drilling impact fee after all.
The state’s Public Utility Commission, which is charged with collecting and distributing the fee, said its interpretation of the law allows the state to levy a fee on Lackawanna County’s two exploratory Marcellus Shale wells, at least for one year.
The same might hold true with Luzerne County’s two wells, even though they were not considered productive and were subsequently plugged and abandoned.
PUC spokeswoman Jennifer Kocher said there may be a possibility for one year’s worth of fees from the Luzerne County wells.
“It would all depend on how the wells fit into the definitions that were laid out by the law,” she said.
Encana Oil & Gas USA Inc. drilled two wells in the summer of 2010, one on Route 118 in Fairmount Township and the other on Zosh Road in Lake Township. The company announced in November 2010 that the wells were not economically viable.
Kocher said the potential for Luzerne County and Lake and Fairmount townships to get a share of the drilling revenue for the two wells depends on the definition of “spud,” or the actual start of drilling an unconventional well.
Asked what Luzerne County might stand to receive, Kocher said, “We’re not providing any numbers at this time, because we’re still scrubbing data” from the state Department of Environmental Protection.
Because Lackawanna County’s wells are considered shale or “unconventional” gas wells subject to the law, the county and its municipalities will likely get a small share of the approximately $207 million that will be collected from drillers for wells drilled prior to Jan. 1, 2012.
If all 4,802 of the unconventional wells included in the state Department of Environmental Protection’s official list are subject to the fee, Lackawanna County would receive $16,215, Benton and Greenfield townships would each get about $8,330 and all the county’s municipalities would get a portion of $12,160, according to the distribution formula outlined in the drilling law, known as Act 13.
Although the law levies a smaller fee on vertical wells – like those drilled in Lackawanna County – than horizontal ones, it does not distinguish between the two types of wells for distributing the fee to local governments. Vertical wells are assessed at 20 percent of the horizontal well fee, which is $50,000 for wells drilled before 2012 and may change each year based on the average price of natural gas.
Kocher said Lackawanna County’s two vertical wells “are subject to the 20 percent fee in year one. In year two if they are not producing at the designated levels outlined in the act, they do not have to pay the fee.”
After the law was adopted in February, the fee fate of the state’s exploratory wells and their host communities was not clear.
The law defines a vertical gas well as one that has been hydraulically fractured and produces more than 90,000 cubic feet of gas per day – a definition that the law’s architects said was intended to exclude low- or non-producing wells that are used to assess the quantity of gas in an unexplored region of the shale.
But the law defines an “unconventional well” more expansively, as “a bore hole drilled ⦠for the purpose of or to be used for the production of natural gas from an unconventional formation,” and the state’s official list of unconventional wells includes many vertical, non-producing wells, along with inactive wells and unsuccessful wells that have been plugged.
Organizations that commented on the PUC’s draft interpretation of the law suggested different ways of dealing with the uncertainty.
Three trade organizations for natural gas producers pointed out that the law, and the PUC’s interpretation of it, is not clear about whether the impact fee would be levied on wells drilled into the shale for reasons other than direct gas production, like geologic analysis, although they suggested the answer should be no.
They also wrote that the law does not directly address what to do with “dry holes” – wells that are plugged because they would not produce economic amounts of gas. They suggested that wells drilled and plugged before Jan. 1, 2012, “owe no fee” and that any future wells drilled and plugged in the same year also “do not owe the fee.”
The Pennsylvania State Association of Boroughs offered an opposite interpretation and advocated that any well drilled and plugged in the same year pay at least one year’s fee.
“The fact that a well does not produce quantities above a stripper well or is plugged will not mitigate the impacts to the communities from the drilling of the well,” the group wrote.
The PUC has delayed issuing its final implementation order for the law in response to a court injunction that temporarily postponed some aspects of the act relating to local zoning rules.
Luzerne County Council voted 6-5 on April 16 to pass an ordinance enabling the county to accept a share of natural gas revenue if available.
Councilman Stephen A. Urban, one of the “no” votes, said council never got a definite number on how much revenue the county might be eligible for. However, he voted against the ordinance because he believes Act 13 is unconstitutional, going against the provision in the state constitution allows municipalities and counties to do their own planning and zoning.
“It wasn’t a money issue to me. It was a matter of constitutionality and a matter of principle,” Urban said.
Elizabeth Skrapits, staff writer, contributed to this report.
llegere@timesshamrock.com
Natural gas as a transportation fuel the topic of conference
live.psu.edu/story/59583#nw69
Thursday, May 3, 2012
Increasingly, bus companies are switching to natural gas fuel. Shown here, a Centre Area Transportation Authority vehicle 'gases' up.
UNIVERSITY PARK, Pa. — A one-day conference in Lehigh County, sponsored by Penn State’s College of Agricultural Sciences, will provide a comprehensive overview of using natural gas as a transportation fuel in Pennsylvania and the mid-Atlantic region.
“Natural Gas Vehicles: The Road Ahead in Pennsylvania” will be held from 9 a.m. to 4:30 p.m. on Monday, June 11, at Penn State Lehigh Valley in Center Valley. The program is being organized by Penn State Extension.
“The conference will be a place where clean-air and clean-transportation advocates, industry stakeholders, fleet managers and policymakers can learn the fundamentals of using natural gas as a transportation fuel,” said conference coordinator Dave Messersmith, extension educator and member of Extension’s Marcellus Education Team.
“Professionals attending the sessions will be able to network with other natural gas vehicle stakeholders, and they can discuss opportunities and challenges to greater adoption of natural gas as a transportation fuel.”
The conference will feature sessions titled “A Primer on Natural Gas as a Transportation Fuel,” “What’s Happening with Natural Gas Vehicles in Pennsylvania and the Mid-Atlantic,” “Understanding Shale Gas in Pennsylvania and Natural Gas Market Outlook,” “The Texas Clean Transportation Triangle: A Model for Success,” “Engine and Conversion Technologies,” and “Fueling Station Concepts and Technologies.”
Presenters include researchers, entrepreneurs and industry experts who will provide a fundamental understanding of natural gas as a transportation fuel.
The registration fee for the conference is $149. For more information, contact Carol Loveland at 570-433-3040 or by email at cal24@psu.edu.
To register for the conference by phone, call toll-free 877-489-1398. To register online, go to the conference website at http://agsci.psu.edu/natural-gas-vehicles and click on RSVP in the gray bar near the top of the page.
State investigating methane in water near Dimock Twp.
citizensvoice.com/news/state-investigating-methane-in-water-near-dimock-twp-1.1307137#axzz1t9VLaOeL
By Laura Legere (Staff Writer)
Published: April 28, 2012
State environmental regulators are investigating a possible case of methane migrating into water supplies just north of the 9-square-mile box in Dimock Township where the state halted a gas driller’s operations because of methane contamination in 2010.
Regulators with the state Department of Environmental Protection emphasized that they have not determined the source of elevated methane discovered in two Susquehanna County water wells and whether it is caused by Marcellus Shale drilling or a natural occurrence of gas in the aquifer.
One focus of the investigation is Cabot Oil and Gas Corp.’s Greenwood 1 well, where the company recently squeezed additional cement between steel barriers that are meant to seal off gas and fluids from the aquifer.
The work in late March was an effort to stop the problem, DEP spokesman Kevin Sunday said, even though inspectors have not pinpointed the well as the cause.
“The next step is to determine the effectiveness of the remediation work and to continue water well sampling,” he said.
Regulators began investigating the elevated methane levels in August 2010 after a resident complained about water quality.
The gas wells being evaluated are less than 400 feet from the northern boundary of a section of Dimock where Cabot’s drilling and hydraulic fracturing operations have been on hold since April 2010, when state regulators blamed faulty Cabot wells for allowing shallow methane to channel into 18 private water wells. Cabot disputes the state’s findings in that case.
The current investigation is separate from the ongoing review of Cabot’s wells in the off-limits area.
Cabot spokesman George Stark said Friday that the company “always investigates landowners’ concerns as they are brought to our attention. Cabot has been working closely with the Department of Environmental Protection on this matter and will continue to do so with the best interest of our landowners in mind.”
Neither of the two water wells involved in the current investigation has been vented because one well is buried and has not been located and inspections of the other have not found gas trapped in the open space above the water in the well, Sunday said.
Methane in drinking water is not known to cause any health risks, but at high concentrations it can seep out of water into the air and create an explosion hazard in enclosed spaces.
The state has not reached a determination 20 months into the investigation because a number of factors need to be considered, including the construction of nearby gas wells and identifying features of the methane, DEP spokeswoman Colleen Connolly said.
“It’s not different from any case,” she said. “There are just many issues to deal with.”
The Greenwood 1 well was the first Marcellus Shale well drilled by Cabot in Dimock, in September 2007, according to state records.
Three horizontal wells later drilled on the same pad in November 2009 and May 2010 were among the top-producing wells in the state early last year.
Those wells, the Greenwood 6, 7 and 8, have also been evaluated as part of the investigation. Cabot was cited by DEP for a “failure to case and cement” the three wells “to prevent migrations into fresh groundwater” in January 2011 but Cabot has argued in a letter to the state that the wells were properly constructed and the violations should be rescinded.
Connolly said that DEP is addressing the violations with Cabot. The defects cited by the department “could have been a means of allowing methane to migrate into the fresh groundwater, but that doesn’t necessarily mean the water supply has been impacted,” she said.
llegere@timesshamrock.com