New state regulations to deal with gas drilling in Marcellus Shale
New state regulations to deal with gas drilling in Marcellus Shale
Friday, November 5, 2010
University Park, Pa. — As the natural-gas drilling boom into the deep Marcellus Shale formation has unfolded, state regulators have become increasingly aware of pollution risks to ground and surface water, and they have scrambled to develop regulations to protect valuable natural resources.
Two experts with the Pennsylvania Department of Environmental Protection will offer details about the current regulatory environment in a free, one-hour, Web-based seminar at 1 p.m. on Nov. 18.
Presented by Penn State Cooperative Extension, the webinar will feature Dana Aunkst, director of DEP’s bureau of water standards and facilities regulation, and Eugene Pine, professional geologist manager with the agency. Online participants will have the opportunity to ask the speakers questions during the session.
“In 2010, the Pennsylvania Environmental Quality Board amended the Pennsylvania Code to include new treatment requirements for total dissolved solids,” Aunkst said. “This final form rulemaking ensures the continued protection of the commonwealth’s water resources from new and expanded sources of total dissolved solids.”
Most importantly, Aunkst noted, the final rulemaking guarantees that state waters will not exceed a threshold of 500 milligrams per liter. “In doing so, the final rulemaking assures the continued use and protection of drinking water intakes on streams throughout the commonwealth,” he said. “That provides the required protection of aquatic life and maintains continued economic viability of the current water users.”
The final rulemaking adopts a combination of recommended approaches for addressing these larger loads of total dissolved solids, Aunkst pointed out. This combination of approaches includes an industrial-sector-based regulation along with a watershed-based analysis.
“The sector-based piece focuses on the natural-gas industry, mandating the treatment of gas-well wastewater,” he said. “This approach is based on available, proven treatment technologies for this industry and takes cost into consideration. In addition, this treatment must be performed at a centralized wastewater treatment facility to the standards in the proposed rulemaking.
“These requirements will assure that any threat of water pollution from this rapidly growing industry is prevented in accordance with the Pennsylvania Clean Streams Law.”
Aunkst’s presentation will provide background on the need for the new regulation, a history of the development of the regulation and an update on the implementation of the new requirements.
In addition, Pine’s presentation will explain how his department is making changes to the regulations and will detail the proposed and final rulemaking process, including timeframes, public-comment periods and so forth.
“I will generally explain where we are in this process and then highlight the more significant revisions to the existing regulations,” he said. “The regulatory revisions emphasize, and are intended to strengthen, proper well-drilling, construction and operational practices.”
A properly cased and cemented oil or gas well is critical to protecting groundwater, public health, safety and the environment, explained Pine. Many of the regulations governing well construction were promulgated in 1989 and remain largely unchanged.
“New well-drilling and completion practices used to develop Marcellus Shale wells, as well as recent impacts to drinking water supplies and the environment by both ‘traditional’ and Marcellus Shale wells, prompted the department to re-evaluate existing requirements,” he said.
With the continued development of the oil and gas industry, the potential exists for natural gas to migrate from the wellbore by either improperly constructed wells or older, deteriorated wells, Pine noted.
“This migration could adversely affect underground sources of drinking water and pose a threat to public safety and the environment,” he said. “Accordingly, DEP has revised its well-drilling and operation regulations.”
The webinar, “Pa. DEP Regulatory Update,” is part of an ongoing series of workshops and events addressing issues related to the state’s Marcellus Shale gas boom. Information about how to register for the webinar is available at http://extension.psu.edu/naturalgas/webinars.
Additional one-hour webinars will be held at 1 p.m. on the following dates:
— Dec. 16: “Plumbing the Depths in Pa.: A Primer on Marcellus Shale Geology and Technology.”
— Jan. 20, 2011: “Marcellus Shale Legislation: What Was Accomplished in the 2009-10 Session and What Issues Remain to be Addressed.”
— Feb. 16, 2011: “Dealing with Gas Tax Issues: What You Need to Know.”
— March 17, 2011: “Natural Gas Well Development and Emergency Response and Management.”
Previous webinars, publications and other information on topics such as water use and quality, zoning, gas-leasing considerations for landowners and implications for local communities also are available online at http://extension.psu.edu/naturalgas.
For more information, contact John Turack, extension educator in Westmoreland County, at 724-837-1402 or by e-mail at jdt15@psu.edu.
DEP Makes Oil and Gas Operations More Transparent with New Online Resources
http://www.portal.state.pa.us/portal/server.pt/community/newsroom/14287?id=15010&typeid=1
FOR IMMEDIATE RELEASE
11/1/2010
DEP Makes Oil and Gas Operations More Transparent with New Online Resources
Information on Well Production, Waste Products, and Violations Now Online
HARRISBURG — For the first time, Pennsylvania’s oil and gas industry production and compliance information is available online as part of the commonwealth’s ongoing effort to make the industry’s operations more transparent.
Department of Environmental Protection Secretary John Hanger said the oil and gas public reporting website, which debuted today, allows access to production statistics for oil and gas wells in the state, including historical data. A new, separate webpage also lets users view violation data, by operator, as well as the department’s enforcement measures.
“The public reporting website will create much needed transparency that allows for citizens and policymakers to be aware of the increasing amount of natural gas being generated in Pennsylvania,” said Hanger. “This is an industrial activity that is taking place widely throughout the state. It’s important that families know what is happening in their backyards and whether or not the company drilling there has a good track record of safe and environmentally sound operations.”
The public reporting website, www.marcellusreporting.state.pa.us/ogrereports/, enables users to search all oil and natural gas production data by operator, county or a specific well number. Information on industry-generated waste can be viewed by operator, county or processing facility.
Act 15 of 2010 required Marcellus operators to report to DEP their well production totals from July 1, 2009 to June 30, 2010 by Aug. 15. Subsequent reports on Marcellus production are due every six months. All other oil and gas production besides Marcellus wells must be reported annually.
“It is absolutely essential for the oil and gas industry to be excellent in their operations to protect public health and our environment,” Hanger said. “This information will allow the public to see which operators are leading the way in a safe and environmentally conscious manner and which ones need to address their operating procedures.”
The violation, inspection, and enforcement information is available for 2008 through 2010 to date, including resolved violations for the three-year span. Information for 2010 is available year-to-date or monthly. To view the violation reports, visit www.depweb.state.pa.us and click on the button that says “Gas Well Violations.”
For more information about oil and gas operations in Pennsylvania, visit www.depweb.state.pa.us and click on “Oil and Gas.”
COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection
Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg PA., 17120
CONTACT:
Jamie Legenos, Department of Environmental Protection
717-787-1323
Marcellus Shale workshop planned for Nov. 16 in Dunmore
http://citizensvoice.com/news/marcellus-shale-workshop-planned-for-nov-16-1.1059322
Published: November 4, 2010
Marcellus Shale workshop planned for Nov. 16
Penn State Cooperative Extension in Lackawanna County will host a Marcellus Shale natural gas workshop, “Marcellus Shale and Pipelines – Understanding the Infrastructure Development,” from 6:30 to 9 p.m. on Tuesday, Nov. 16, at the Worthington Scranton Campus in Dunmore.
Participants will gain a greater understanding of pipeline infrastructure, regulation and safety, and needs to address as a landowner and community member with property in the Marcellus Shale region.
There will be a discussion on the background and need for pipeline development in the Marcellus region, various regulations and safety issues, and the legalities of right-of-way agreements. A question-and-answer session will follow.
The program, part of a five-part series, is free and open to the public, but registration is required. Call Penn State Lackawanna County Extension Office at 570-963-6842 by Friday, Nov. 12.
Protecting Sensitive State Forest Land from Future Natural Gas Leases
http://www.portal.state.pa.us/portal/server.pt/community/newsroom/14287?id=14973&typeid=2
Governor Rendell Signs Moratorium Protecting Sensitive State Forest Land from Future Natural Gas Leases
Governor Edward G. Rendell today signed an executive order protecting Pennsylvania’s state forests from any new natural gas development activities that would disturb the surface of these areas and jeopardize fragile ecosystems.
The Governor said a recent and extensive evaluation of the state forest system conducted by the Department of Conservation and Natural Resources over a period of seven months found that any additional leases could endanger the environmental quality and character of these tracts and pose a risk to Pennsylvania’s existing certification that it manages its forests in a sustainable manner, which is important for the state’s nearly $6 billion forest products industry.
Governor Rendell added the executive order was necessary now given the state Senate’s failure to act on House Bill 2235, which would have instituted a moratorium on state forest land leases. The legislation passed the House of Representatives with bipartisan support in early May, but was ignored by the Senate.
“Drilling companies’ rush to grab private lands across the state has left few areas untouched by this widespread industrial activity,” said Governor Rendell. “We need to protect our un-leased public lands from this rush because they are the most significant tracts of undisturbed forest remaining in the state. The House led the way to protect these lands, but the Senate failed to do so. That’s why it’s clear we need this executive order.
“Failing to protect these acres will significantly alter the ecological integrity and the wild character of our state forest system. That would devastate our ecotourism industry and jeopardize the green certification upon which the state’s forest products industry depends.”
Currently, 700,000 acres of Pennsylvania’s 2.2 million-acre state forest are available for natural gas extraction. When completely developed over the next 30 years, these leased lands will include about 1,000 well pads and as many as 10,000 wells, which, along with the associated roadways and infrastructure, could disturb as much as 30,000 acres of the land already under lease.
Approximately 1.5 million acres of state forest lands sits atop the natural gas-rich Marcellus Shale formation. The remaining 800,000 acres that have not been made available for natural gas development contain significant environmental, eco-tourism, and recreational values, including:
• 180,000 acres of high-value ecosystems designated as wild and natural areas;
• 200,000 acres of old-growth forests;
• 128,000 acres with sensitive environmental resources (wetlands, riparian areas, threatened and endangered species, steep slopes, unique habitats) and valuable recreational resources (scenic vistas and viewsheds, trails, leased camps);
• 299,000 acres in remote areas generally inaccessible by motorized vehicles and offering wilderness experiences paralleling those in the western United States;
• 88,000 acres of highly valued recreational and water resources in the Poconos in close proximity to many residents; and
• 20,000 acres important to ecotourism in the Laurel Highlands region.
“The moratorium is important to the state’s economy because it protects some of our most valuable assets,” said Governor Rendell. “Countless people enjoy our state forests for recreation, which draws tourism dollars into the state, and our lumber industry needs the assurance of knowing we’re going to responsibly manage these resources to protect jobs in that industry.
“After I sign this order into effect, it should remain in place. The stewardship of the public’s forests demands no less,” added the Governor. “We simply cannot risk subjecting these sensitive and high-value tracts to the same kind of environmental accidents and mishaps that have happened on private lands elsewhere in the state because of the drilling industry’s poor practices.”
For more information, visit www.dcnr.state.pa.us.
Media contact:
Gary Tuma, 717-783-1116
Chris Novak, DCNR; 717-772-9101
Read more
Webinars: Water management for Marcellus Shale gas production a growing issue
http://live.psu.edu/story/49365#nw69
Friday, October 22, 2010
Webinars: Water management for Marcellus Shale gas production a growing issue
University Park, Pa. — Billions of dollars already have been invested by natural-gas companies in Pennsylvania for Marcellus Shale gas exploration. Similarly, millions of gallons of water have been utilized to develop billions of cubic feet of natural gas.
The natural-gas industry is pursuing ways to minimize potential environmental impacts during development of the rich Marcellus formation, such as by treating and reusing wastewater produced during the process. However, according to one Penn State expert, as the Marcellus natural-gas play grows, the demand for water for hydraulic fracturing will directly increase, as will the need for infrastructure to treat flowback water for reuse or disposal.
“To minimize the environmental and financial costs of flowback treatment, many operators are now reusing flowback and other impaired waters such as acid mine drainage,” said David Yoxtheimer, hydrogeologist and extension associate with Penn State’s Marcellus Center for Outreach and Research. < http://www.marcellus.psu.edu/ >
Yoxtheimer was one of the featured speakers during an Oct. 21 Web-based seminar titled, “Water Use and Water Reuse/Recycling in Marcellus Shale Gas Exploration and Production.” Sponsored by Penn State Cooperative Extension < http://extension.psu.edu/ >, the webinar provided an overview of new strategies to conserve fresh water and reuse waters affected by the gas exploration process.
When shale gas drillers develop natural gas using the hydraulic-fracturing technique, they inject 3 million to 5 million gallons of water, along with sand and a relatively low concentration of additives into the Marcellus formation to release the natural gas. According to the Susquehanna River Basin Commission, about 10 percent (300,000 to 500,000 gallons) of the injected hydraulic-fracturing fluids return to the surface via the natural-gas well within about one month.
This wastewater, known as “flowback,” contains relatively high concentrations of salt as well as some metals that were dissolved out of the shale during the fracturing process. The flowback water requires treatment prior to release back into the environment, but many companies are now reusing the flowback for subsequent hydraulic-fracturing operations, which has environmental benefits and reduces truck traffic on roads.
“Simply reusing the water is only the first step, but the lack of processing back to the water-quality standards is a big challenge to conventional thinking,” said Tony Gaudlip of Range Resources. Gaudlip, a co-presenter in the webinar, joined Range Resources in January 2008 following various industry positions in south Texas, Wyoming, the Middle East, Europe and Asia.
“We do not need crystal clear water to use as a base fluid for fracturing,” he said. “We do not need to treat the water at all in order to get good production — no distillation, crystallization, reverse osmosis, nanofiltration, etc. That’s all unnecessary to meet new downhole requirements,” Gaudlip said.
“What Range is doing is different,” Yoxtheimer said. “The company is fairly progressive and basically is recycling 100 percent of its water, and other companies are now following that trend.”
Yoxtheimer added that reusing flowback — and using impaired waters such as acid mine drainage and effluent from municipal or industrial wastewater plants — greatly offsets the need to use fresh water drawn from local streams and rivers.
Yoxtheimer said that Marcellus development is “proceeding pretty much full steam ahead” in Pennsylvania despite some opposition. “There are a lot of economic opportunities there that are potentially good, but also some potential environmental consequences. Ideally, a fine balance can be struck by doing the exploration and extraction in an environmentally responsible way.”
The “Water Use and Water Reuse/Recycling in Marcellus Shale Gas Exploration and Production” program was part of an ongoing series of workshops addressing issues related to the state’s Marcellus Shale gas boom. One-hour webinars also will be held at 1 p.m. on the following dates:
–Nov. 18: “Pa. DEP Regulatory Update.” Presenters: Dana Aunkst and Scott Perry, Pennsylvania Department of Environmental Protection.
–Dec. 16: “Plumbing the Depths in Pa.: A Primer on Marcellus Shale Geology and Technology.” Presenter: Mike Arthur, Penn State Marcellus Center for Outreach and Research.
–Jan. 20, 2011: “Marcellus Shale Legislation: What Was Accomplished in the 2009-10 Session and What Issues Remain to be Addressed.” Presenter: Ross Pifer, Dickinson School of Law, Penn State.
–Feb. 16, 2011: “Dealing with Gas Tax Issues: What You Need to Know.” Presenter: Mike Jacobson, Penn State School of Forest Resources.
–Mar. 17, 2011: “Natural Gas Well Development and Emergency Response and Management.” Presenter: Craig Konkle, Lycoming County Office of Emergency Management.
Previous webinars — which covered topics such as water use and quality, gas-leasing considerations for landowners and implications for local communities — can be viewed at Penn State Cooperative Extension’s natural-gas website. <http://extension.psu.edu/naturalgas/webinars >
For more information, contact John Turack, extension educator in Westmoreland County, at 724-837-1402 or by e-mail at jdt15@psu.edu.
Drilling awareness coalition hosting forum
http://www.timesleader.com/news/Drilling_awareness_coalition_hosting_forum_10-22-2010.html
Posted: October 23, 2010
Drilling awareness coalition hosting forum
MATT HUGHES mhughes@timesleader.com
The Back Mountain-based Gas Drilling Awareness Coalition will again carry its message against natural gas drilling in Luzerne County into the Wyoming Valley.
The group will host an informational meeting at 7 p.m. Wednesday at the Kingston American Legion Post 395, 386 Wyoming Ave.
The public event will include a presentation by Gas Drilling Awareness Coalition founder Thomas Jiunta and a question-and-answer session.
“We organized this meeting to alert residents in the Valley that the gas drilling occurring in the Back Mountain will have an impact on them, as well,” Jiunta said, adding that the group believes the quality of the air, water, and roads, as well as property values in the Wyoming Valley, could be negatively affected by natural gas drilling.
The Gas Drilling Awareness Coalition describes itself as a group of primarily “Luzerne County citizens concerned about the many problems horizontal fracturing (“fracking”) will bring to this populated and developed area. … Their goal is to protect Wyoming Valley communities and the environment from exploitative gas drilling.”
Pennsylvania governor declares natural gas tax dead
http://af.reuters.com/article/commoditiesNews/idAFN2112837120101021?sp=true
Pennsylvania governor declares natural gas tax dead
PHILADELPHIA Oct 21 (Reuters) – Pennsylvania Governor Ed Rendell on Thursday declared his plan to tax natural gas production “clearly dead this year” due to Republican opposition and accused Republican legislators of reneging on a pledge to enact a tax.
Pennsylvania, home to the Marcellus Shale that is expected to quadruple production in the next 20 years, remains the only gas-producing state yet to impose a tax on shale gas, a largely untapped and relatively clean source of onshore energy.
“Their clear unwillingness to change their previous proposal or to resolve differences with the House Democrats and with my administration makes it obvious that they have killed the severance tax in this legislative session,” Rendell said in a statement.
Senate Republican spokesman Erik Arneson accused Rendell of making a “unilateral decision to end negotiations”.
“We are willing to continue negotiations on Marcellus Shale issues,” Arneson said. “We hope the governor will reconsider his position.”
Talks had already extended past the end of the legislative session, meaning that if any deal had been reached then both houses would need to be called back into special session.
Rendell, a Democrat who will step down in January at the end of his second term, has been calling for the tax for two years to boost state revenue and help pay for the environmental costs of gas drilling.
The Republican-controlled state senate and the shale gas industry had opposed the tax, forcing Rendell to compromise from an original plan that would have raised $307 million in the first year alone. Now that compromise is dead as well.
Lawmakers had agreed during this year’s budget talks to settle details of the so-called severance tax by Oct. 1. The date passed without a deal despite protracted talks, and the legislative session has ended ahead of the Nov. 2 election.
“It is a broken promise, as well as a misguided policy decision that will harm our environment, will leave our local governments without the financial wherewithal to deal with the impacts of drilling in their communities, and will increase the budget challenges that Pennsylvania will face in the years to come,” he said.
Shale gas is extracted through a controversial process known as hydraulic fracturing, or “fracking,” in which a mixture of chemicals, sand and water are blasted into rock deep beneath the surface, creating fissures that release trapped gas.
Environmentalists have raised concerns that chemical leaks and spills at the surface of have polluted ground water but the industry insists the process is safe, a contention recently supported by Pennsylvania’s top environmental regulator. [ID:nN01279320] (Reporting by Daniel Trotta, Jon Hurdle and Joan Gralla; Editing by Chizu Nomiyama and Andrew Hay)
DEP Secretary Issues Open Letter to Citizens of Susquehanna County
http://www.portal.state.pa.us/portal/server.pt/community/newsroom/14287?id=14827&typeid=1
FOR IMMEDIATE RELEASE
10/19/2010
CONTACT:
Jamie Legenos , Department of Environmental Protection
717-787-1323
DEP Secretary Issues Open Letter to Citizens of Susquehanna County Community Impacted by Ongoing Gas Migration Issues
HARRISBURG — Department of Environmental Protection Secretary John Hanger today issued the following open letter to residents of Dimock, Susquehanna County:
To Whom It May Concern:
The Department of Environmental Protection (DEP) recently announced a permanent solution to the drinking water problems in Dimock caused by gas migration from Cabot Oil & Gas Corporation wells. DEP was forced to take action since Cabot continues to deny responsibility for the contamination, despite overwhelming evidence of its responsibility. Since that announcement was made, Cabot has launched a public relations campaign and much misinformation has been brought forth concerning who will be party to that solution and who will end up paying for it.
Cabot is responsible for the gas migration that has caused families to be without a permanent water supply for nearly 2 years and the Commonwealth of Pennsylvania will seek court orders to make Cabot pay for all costs. But we cannot wait for Cabot to fix the problems it caused and to do the right thing. In the interim, PENNVEST, an agency that finances water and sewer infrastructure projects, will be asked to provide funds to pay the estimated $11.8 million cost for Pennsylvania American Water Company to construct a new, 5.5-mile water main from its Lake Montrose treatment plant to provide water service to the residents of Dimock. Again, the Commonwealth of Pennsylvania will then aggressively seek to recover the cost of the project from Cabot.
No one in Dimock or Susquehanna County will pay for it and local taxes will not be increased as the result of it. Residents along Route 29 will have the option to tap into the line if they so choose. No one will be forced to hook up to the new public water supply. The new water line will also boost the value of homes and businesses near it.
This action is being taken based on overwhelming evidence that proves the Cabot wells are the source of the contamination. DEP has collected ample evidence tying methane found in private water supplies to Cabot’s wells. We have witnessed and chronicled bubbling gas and high pressure readings from a number of wells that prove poor well construction, and taken readings that show excessive gas levels that could only exist in wells that are leaking. Sophisticated testing has “fingerprinted” gas samples and matched the gas found in five homes to the gas leaking from the nearby Cabot wells. Additionally, the gas wells in many cases are less than a thousand feet from the homes where, by law, it is presumed gas drilling caused any pollution of water wells that may result.
The residents of Dimock have already paid a high price for Cabot’s unwillingness to accept responsibility and provide a satisfactory solution. Cabot will be the one paying the final bill. Perhaps next time Cabot will do the job right the first time and avoid expensive repairs.
Sincerely,
John Hanger, Secretary
COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection
Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg PA., 17120
Senate position firm on Severance tax
http://citizensvoice.com/news/senate-position-firm-on-severance-tax-1.1051756
Senate position firm on Severance tax
By Robert Swift (Harrisburg Bureau Chief)
Published: October 21, 2010
HARRISBURG – Senate Republican leaders reaffirmed their position Wednesday that a state severance tax on natural gas production should start at 1½ percent and exempt up to 100 percent of well production costs.
A short phone conference call between Gov. Ed Rendell and legislative leaders on Tuesday has led to some exchanges on how to move the unresolved issue forward. Whether these exchanges will provide the building blocks for a final compromise on a severance tax in the waning days of the legislative session and Rendell’s tenure is uncertain.
The Senate GOP response doesn’t appear to contain anything different from their previous position, said Rendell spokesman Gary Tuma.
“Senate Republicans remain committed to allowing a full deduction of the costs associated with getting the natural gas to market from the tax owed,” wrote the GOP leadership in a letter to Rendell. “Some individual natural gas companies are spending considerable resources laying pipeline in order to get the gas to market; other companies, due to their proximity to other existing pipelines, are not. To prohibit those costs (or to cap them at 10 percent as you proposed) from being deducted from the tax owed would create a significant inequity of the tax burden company by company.”
Rendell had asked the four caucuses to offer counterproposals to a compromise he offered last week to phase in a severance tax starting at 3 percent and reaching 5 percent by the third year while exempting up to 10 percent of some production and distribution costs.
Senate Republicans want to phase in the tax at 1½ percent during the first five years of a well’s production before a 5-percent rate kicks in. They said there would be no retroactive application of the 1½ percent rate for the full five years to wells already in operation. They also want a comprehensive package addressing drilling-related issues such as zoning rights and spacing of wells in active coal mining areas.
The House approved legislation recently to set the rate at 39 cents per thousand cubic feet, or mcf, of natural gas at the wellhead.
Severance tax revenues are being eyed to plug a $70 million hole in the current state budget and generate new revenue to help communities in drilling boom areas and replenish a state environmental protection fund. Both the governor’s “3-4-5” compromise and the Senate GOP proposal would provide a significant tax break for the natural gas industry, said the Pennsylvania Budget and Policy Center, a Harrisburg think tank that supports a tax.
Elected officials face challenges trying to agree on policy so close to an election, said Terry Madonna, Ph.D., pollster at Franklin and Marshall College. The Marcellus Shale doesn’t rank as a top issue in statewide voter opinion polls with the exception being the drilling boom areas in Northeastern and Southwestern Pennsylvania.
rswift@timesshamrock.com
DEP, Cabot argue over Dimock water contamination
http://citizensvoice.com/news/dep-cabot-argue-over-dimock-water-contamination-1.1051257
Published: October 20, 2010
DEP, Cabot argue over Dimock water contamination
The state Department of Environmental Protection and Cabot Oil and Gas Corp. traded barbs Tuesday about the scope, cause and solution for methane contamination in 18 residential water wells in Dimock Township.
The state agency and the natural gas drilling company have been arguing via press releases and advertisements since late last month when DEP announced that Pennsylvania American Water Co. will construct a new, 5.5-mile water main from its Lake Montrose treatment plant to provide water to the affected families, and Cabot would be made to pick up the tab.
Read Hanger’s letter to Cabot Oil & Gas
“DEP was forced to take action since Cabot continues to deny responsibility for the contamination, despite overwhelming evidence of its responsibility,” DEP Secretary John Hanger said in a letter released widely on Tuesday and circulated over the weekend in Susquehanna County.
“Since that announcement was made, Cabot has launched a public relations campaign and much misinformation has been brought forth concerning who will be party to that solution and who will end up paying for it.”
In a press release also sent Tuesday, Cabot spokesman George Stark said that water tests performed by Cabot and DEP showed only four of the 18 water wells have methane at levels exceeding the 28 milligrams per liter limit suggested by the U.S. Department of the Interior’s Office of Surface Mining. He also said the company, which maintains it did not cause the methane contamination, has provided “substantial and persuasive proof that methane gas has been present in water wells in and around the Dimock area for generations.”
Read Cabot’s Dimock well data
Hanger said in an interview Tuesday that Cabot “unfortunately” continues to deny responsibility and the company’s data “must be examined through that prism.”
The state’s environmental oversight agency determined that excessive pressures and faulty casings in 14 of Cabot’s natural gas wells caused methane from a rock layer above the Marcellus Shale to seep into residential water supplies.
The state’s evidence includes video recordings of gas bubbling between the casing in Cabot’s wells and high pressure readings “that could only exist in wells that are leaking,” as well as isotopic analysis – a form of chemical “fingerprinting” – that matched the gas found in five homes to the gas leaking from nearby Cabot wells.
Hanger said DEP testing since April has shown as many as 18 affected supplies. DEP will continue water tests until the Nov. 1 deadline for Cabot to rid the water of gas.
“We, of course, would be delighted, as the families would be, if in fact some of the gas went away,” he said. “We have seen declines at some properties, but not at all. We’ll do some more testing and frankly we’ll make our own judgments based on our own data.”
In the open letter to Susquehanna County residents, Hanger said PENNVEST, a state agency which finances water and sewer projects, will be asked to provide the $11.8 million for the water line project, and then the state will “aggressively seek to recover the cost of the project from Cabot.”
“No one in Dimock or Susquehanna County will pay for it and local taxes will not be increased as the result of it,” he said.
Besides the affected residents, others who live on Route 29 between Montrose and Dimock will have the option to tap into the water line if they choose, Hanger said, adding that the line should boost the value of homes and businesses nearby.
Stark called the project an “unwarranted burden on the taxpayers of Pennsylvania.”
“Given the science and our findings, we question how the secretary could spend the 12 million of taxpayer dollars,” he said in an interview. “He’s going to sue us to get it back. I’m not certain that a court will find in favor of the commonwealth.”
The public feud between Cabot and DEP was joined by a group of Susquehanna County residents and businesses called Enough, Already! last week, when the group bought an ad in the Mulligan’s Shopping Guide criticizing the waterline as a “terrible, big government decision” that is “expensive and unnecessary.”
The group asks residents to sign petitions, hosted at eight area businesses, telling PENNVEST to deny an application by DEP to fund the line.
Many of Cabot’s positions were echoed in the ad, which Cabot and members of Enough, Already! said the company did not place, write or pay for.
llegere@timesshamrock.com
eskrapits@citizensvoice.com, 570-821-2072