Independent Oil & Gas Association of Pennsylvania March 2004, Number 189
Board Looks to Membership
The Executive Committee of the IOGA
Board of Directors has asked that the producer However, several IOGA members believe
members of the association be polled on a that eliminating the 330‘ setback would create
potentially controversial issue. POGAM has problems by opening very small tracts to drilling,
approached the members of the Pennsylvania while the minimum spacing would potentially
General Assembly to make a legislative change to deprive adjacent leaseholders from developing
Act 214, the Coal and Gas Resource Coordination larger leaseholds. Discussions on this issue include
Act. whether this would open lawsuits from landowners
and have potential negative impacts on local
Last summer, the Department of ordinances attempting to mandate spacing.
Environmental Protection changed an interpretation
of Act 214 that had been in place since passage. It is important that the members of the
Producers had been able to drill on a location less association be heard on this issue. IOGA could
than 330‘ from a lease line if the coal owner signed support the elimination of the 330‘ setback in
a waiver authorizing the change which included a entirety, support altering the language of the Act to
spacing variance from 1000‘ to no less than 900‘. meet the previous interpretation of the
However, after a review of language in the Act, the requirements, or remain neutral as an association if
Department changed the interpretation. Under the the opinion within the membership is severely split.
new interpretation, if a location is available on a This issue is certainly important enough to
lease that meets the legal requirements of the 1000‘ producers to warrant full airing and consideration of
spacing and over 330‘ of the property line, that opinions beyond the board members.
location must be developed before a ‗waived‘
location can be drilled. A questionnaire will be forwarded to the
main contact of each member company to ascertain
The POGAM proposal would eliminate the your opinions of this proposal. Please answer by
requirement to be over 330‘ from a lease line. return email as quickly as possible so the Board
There would be no change in the minimum spacing may take into account all opinions and make a
distance required under the Act. Several IOGA reasoned decision. The results of the survey will be
members are supportive of this change which is made available in the next newsletter as well as the
consistent with drilling rules in non-coal areas. resulting BOD decision.
Coal producers are neutral on the issue, since it
would still hold the minimum spacing requirement Thank you in advance for participating in
of 1000‘. this questionnaire.
Greenpeace became the world‘s largest
McGinty & Moore to environmental activist organization.
Headline Annual Meeting Today Dr. Moore could be described best as
a consensus builder and voice of reason in the
environmental community. He currently authors a
The 2004 IOGA of Pennsylvania Annual column for ESPN Outdoors where he is billed as the
Meeting will be held on May 19th at the Four Points ―Sensible Environmentalist‖. His vision of
Sheraton Pittsburgh North. The theme for this environmentalism for the twenty- first century is one
year‘s meeting is ―Getting the Word Out‖. The of cooperation and innovation.
meeting promises to be informative, educational,
entertaining, and maybe a little bit controversial. In 1991 he founded Greenspirit, a
consultancy focusing on environmental policy and
Pennsylvania Department of Environmental communications in natural resources, biodiversity,
Resources Secretary energy and climate change. His stance for
sustainable development rather than anti-
development has caused sharp reactions from his
former colleagues in the environmental movement.
He has been referred to as an ―eco-Judas‖ and his
name now appears in Greenpeace‘s ―Guide to Anti-
Environmental Organizations‖. What ‗heresy‘
could he be promoting to earn him such attacks?
Kathleen A. McGinty
Come to the 2004 IOGA of Pennsylvania
will address the membership on her vision for Annual Meeting and find out who Patrick Moore is
energy and the environment in the Commonwealth and why he is a controversial figure! Hear for
as well as the vision of the Rendell administration. yourselves why he is sought out to speak across the
Secretary McGinty has served in various globe on environmental issues and what he has to
capacities in national and international public policy say that will impact your life and your industry.
leadership. She chaired the White House Council We urge every member of the Association to
on Environmental Quality and acted as Deputy join us at this year‘s meeting. IOGA will be
Assistant to President Clinton. bringing everyone current with a myriad of issues,
Most recently, Secretary McGinty served as problems, and solutions facing the Pennsylvania oil
vice president for asset management at Natsource and gas industry. We will indeed be ―Getting the
LLC, a financial services firm specializing in clean Word Out‖!
energy investments. She also served as director of
Proton Energy Systems Inc, a leading fuel cell
infrastructure company, and as an advisor for a
European venture capital firm interested in clean
The dinner speaker for the Annual Meeting
is Dr. Patrick Moore. Dr. Moore has been a leader Dr. Patrick Moore
in the international environmental field for over 30 Greenspirit
years. Dr. Moore is one of the founding leaders of
Greenpeace and served as President of Greenpeace The Annual Meeting edition of IOGAnews
Canada for nine years as well as seven years as a will be out late next week with a full program and
director of Greenpeace International. He was a discussion of the many speakers and topics for this
driving force in shaping policy and direction as year‘s meeting.
The IOGA office forwarded a memo to each
of you on January 22nd outlining the results of our
efforts to alleviate a problem producers were having
with the Pennsylvania Department of
Transportation. PennDOT had changed its
interpretation of regulations on highway occupancy
permits, determining that only public utilities were
eligible to receive occupancy permits.
IOGA attorneys Jim Sheehan and Kevin
Moody had worked with the department to resume
issuance of these permits to producers, and on
January 22nd this was accomplished. However, we
are still working on some language changes in
PennDOT regulations on this and other global
issues with the department. As soon as these are
fully resolved, we will issue a final report in the
Please report any problems associated with
PennDOT permitting as they happen to insure we
cover all the bases with our global issues.
April 15-16, 2004
The North American Coalbed
Methane Forum, Inc. will hold its
Spring Session on April 15-16, 2004
at the Holiday Inn, Meadow Lands,
near Washington, PA. For
information, please contact Ihor
Havryluk at 412-798-1391 or
Dr. Kashi Aminian at 304-293-7682
James Seif, vice president of corporate relations for
PPL. ―While environmental sensitivity is a daily
January 2004 commitment at PPL, extraordinary partnerships
with government agencies and private groups allow
Hammersley Wild Area us to accomplish great things for the environment.‖
becomes official ―PGE is proud to join with the Commonwealth and
PPL in this historic opportunity for land
The word ―proposed‖ can now be removed from the conservation in Pennsylvania,‖ said PGE Chairman
Hammersley Wild Area. DCNR recently finalized a Thomas H. Henry. ―We shared a mutual goal – the
deal that ensures protection of the state‘s second protection of these 13,600 acres and the creation of
largest wild area—more than 30,000 acres of state the largest contiguous wilderness area in the state
forestland in Potter and Clinton counties. for future generations to enjoy.‖
DCNR obtained the oil, gas and mineral rights for Located in Susquehannock State Forest, the 30,253-
13,600 acres of contiguous land within the proposed acre Hammersley Wild Area is a series of wooded
Hammersley Wild Area from Allentown-based PPL valleys containing more than 51 square miles of
Corporation and Pennsylvania General Energy, road less land. The wild nature of the lands supports
headquartered in Warren, Pa. Although the land is abundant wildlife, and lack of development has
owned by the state, the companies held an produced pristine streams with wild trout. Although
exploration and development lease that gave them most of the area was logged in the early 1900s,
the ability to drill for gas and oil on the lands. several acres were left untouched and now support
old growth hemlock trees three to four feet in
―There are few places we can go anymore to get a diameter. The entire area is forested with some of
true wilderness experience—nothing but woods, the best examples of mature woodland in the
water and wildlife,‖ Secretary DiBerardinis said. Commonwealth.
―Hammersley Wild Area is one of those areas. But
until now, there has always been uncertainty about The Commonwealth‘s wild area system protects
its future because of the potential for oil and gas extensive tracts of state forestland—generally larger
drilling. Thanks to the willingness of PPL and PGE than 3,000 acres—from development to retain the
to work with DCNR, we are ensuring the wild remote and wild character of the lands. The lands
nature of these lands remains protected. I commend are open to public recreation such as hiking,
these companies for their conservation foresight and hunting, fishing, primitive backpack camping,
environmental stewardship, which has made this horseback riding, bicycling and wildlife watching.
partnership possible.‖ New public access roads, motorized vehicles,
mineral development and new rights-of-way are
The oil, gas and mineral lease for the property dates prohibited.
back to the 1930s, when the Emporium Lumber
Company retained the rights after they sold the land DCNR manages 16 wild areas throughout the state
to the Commonwealth. PGE acquired the rights for totaling more than 145,000 acres; because of
the 13,600 acres from PPL in 2001 and through a mineral ownership issues, Hammersley and Quebec
business partnership continued to work with PPL in Run in Fayette County have been in a ―proposed‖
the future development of the property. status.
―The partnership with PGE and DCNR that led to For information on the Hammersley Wild
this agreement is the result of our mutual respect Area, call Susquehannock State Forest at (814) 274-
and appreciation for the environment,‖ said 3600.
FRANKLIN BRINE ACQUIRED
Franklin Brine Treatment Corporation, a
local business in Franklin has recently been
purchased by Pennsylvania Brine Treatment, Inc,
based in Creekside, PA on November 15, 2003.
The Franklin facility (formerly Franklin Brine
Treatment Corporation) located on 322 East, is a
state-of-the–art-wastewater treatment facility
serving the tri-state area oil and gas companies.
Pennsylvania Brine Treatment is permitted
to accept all fluids generated through the ordinary
course of oil and/or gas well drilling and producing
operations. The local facility was originally built
and opened in 1985 by Cabot Oil and Gas
Corporation. In 1996 they purchased the Castle
Brine plant located in Josephine, PA and expanded
operations into Indiana County and the surrounding
Both facilities treat wastewater with
chemicals that neutralize excess acidity and convert
soluble metal ions to an insoluble solid form.
Solids are then removed to a licensed DEP
approved landfill. Pennsylvania Brine Treatment
First Day of Spring…March
operates under permits governed by the PA 20th
Department of Environmental Protection and the
Pennsylvania Brine Treatment currently
employs 7 people with the manager Elton W.
DeLong, Jr. being promoted to Operations
Manager. Pennsylvania Brine Treatment has two
locations, one in Franklin, PA and one in Josephine,
PA with plans to focus on expanding the Josephine
facility in the near future. They also now work in
cooperation with another brine treatment facility,
Hart Resource Technologies located in Creekside,
PA who are providing management services for the
new owners. Daily operations are Monday through
Friday, 7:00a.m. to 11:00p.m. with 24 hour
Wildcat Discoveries in the Appalachian
Trenton/Black River Trend and Planned 2004
KENTUCKY OIL & GAS Drilling in the Area
LEASES FOR SALE
NORTH CANTON, OH – Belden & Blake Corporation
Approx. 11,000 acres in Davies, McLean & announced that it has successfully drilled a Trenton/Black
Muhlenberg Counties River well in Chemung County, New York. On a two hour
AND test, the Curren # 1 well flo wed at 20.5 million cubic feet
(MMcf) of natural gas well was drilled to the Trenton/Black
Approximately 11,000 acres in Butle r, Grayson River fo rmation. The Co mpany is currently installing a
and Ohio Counties pipeline and expects to begin producing the well within the
next 30 days. Following a pipeline expansion scheduled for
CONTACT: complet ion this summer, the Curren #1 well is expected to
K. Ralph Ranson produce between 6 and 10 MMcf of natural gas per day.
Belden & Bla ke o wns a 49.3% wo rking interest in the well.
Energy Corporation of America Belden & Blake also announced the earlier successful
501 56th Street complet ion of a second explo ratory well in the Trenton/Black
Charleston, WV 25304 River trend in New Yo rk. The Harndon #1 well is on
(304) 926-3106 production and is currently producing at a 3.5 MMcf of natural
gas per day. The Co mpany owns a 44.6% working interest in
email@example.com the well.
The Co mpany also announced as part of its 2004 capital
investment plan that it expects to drill 2 additional exp loratory
PENNSYLVANIA OIL & GAS and up to 4 additional development wells in the immediate
area during 2004. It is expected that the gross cost of a typical
LEASES FOR SALE vertical well bore will be $2.0 million.
Approximately 6,000 acres in Clearfield County The informat ion in this release includes forward -looking
statements that are made pursuant to Safe Harbor Provisions
CONTACT: of the Private Securit ies Litigation Reform Act of 1995.
Forward-looking statements, and the business prospects of
K. Ralph Ranson Belden & Blake are subject to a number of risks and
Vice President uncertainties which may cause the Co mpany‘s actual results
Energy Corporation of America in future periods to differ materially fro m the forward-looking
501 56th Street statements contained herein. These risks and uncertainties
Charleston, WV 25304 include, but are not limited to, the Co mpany‘s access to
capital, the market demand for and prices of oil and natural
(304) 926-3106 gas, the Company‘s oil and gas production and costs of
firstname.lastname@example.org operation, results of the Company‘s future drilling activ ities,
the uncertainties of reserve estimates and environmental risks.
These and other risks are described in the Co mpany‘s 10-K
and 10Q reports and other filings with the Securities and
BELDEN & BLAKE CORPORATION Exchange Co mmission.
FOR IMMEDIATE RELEASE Belden & Blake Corporation engages in the exp loration,
development and production of natural gas and oil, and the
FEBRUARY 9, 2004 gathering of natural gas in the Appalachian and Michigan
CONTACT: Patricia A. Harcourt Basins (a region which includes Ohio, Pennsylvania, New
Vice President, Administration Yo rk and Michigan).
Belden & Blake Reports Significant
Tax Manager. Prior to join ing the company, he was employed
by Ernst & Young in Canton, Ohio, as a Senior Manager of
the Tax Depart ment. He is a Cert ified Public Accountant with
extensive experience in taxation, finance, accounting and
BELDEN & BLAKE CORPORATION auditing. Mr. Peshek holds a Bachelor of Business
NEWS RELEASE Admin istration degree in Accounting from Kent State
FOR IMMEDIATE RELEASE University where he graduated with honors. His professional
JANUARY 15, 2004 affiliations include the American Institute of Certified Public
Accountants and the Ohio Society of Cert ified Public
CONTACT: Patricia A. Harcourt Accountants. He is also a member of the Ohio Oil and Gas
Vice President, Administration Association.
―We are delighted that Belden & Blake and Appalachian and
Belden & Blake Corporation Strengthens Michigan Basins continue to attract and sustain the caliber of
talent displayed by these two professionals,‖ stated John L.
Senior Manage ment Team Schwager, President and Chief Executive Officer. ‗Their
knowledge and expertise will co mplement this organization as
NORTH CANTON, OH – Belden & Blake Corporat ion
we continue to successfully explore and produce oil and
recently announced that R. Mark Hackett has joined the natural gas reserves – creating value for our shareholders,‖
company in the newly created position of Senior Vice continued Mr. Schwager.
President of Geoscience and Engineering. The co mpany also
announced the promotion of Robert W. Peshek to Senior Belden & Blake Corporation engages in the exp loration,
Vice President. development and production of natural gas and oil, and the
gathering of natural gas in the Appalachian and Michigan
Basins (a region which includes Ohio, Pennsylvania, New
Yo rk and Michigan).
R. Mark Hackett Robert W. Peshek
Mr. Hackett is responsible for the Appalachian District‘s
geology, geophysical, drilling and engineering activit ies; the
company‘s oilfield service div ision; and strategic planning in
conjunction with the other members of the senior management
team. He has over 15 years of extensive experience in
drilling, engineering and producing operations in the
Appalachian Basin. Fro m 1997 to 2003, he was employed by
Colu mb ia Natural Resources, Inc., holding the most recent
position of Vice President of Operat ions. Fro m 1988 to 1997,
he served in various management positions at Alamco, Inc.,
including Vice President, Engineering. Mr. Hackett has a
Bachelor o f Science degree in Petroleu m Engineers, the
Independent Oil and Gas Association of West Virginia and the
Kentucky Oil and Gas Association.
Mr. Peshek was recently elected Senior Vice President of the
company by the Board of Directors. He serves as the
company‘s Chief Financial Officer as well. Previously, Mr.
Peshek held the title of Vice President of Finance for the
Co mpany since 1997, and in 1999, was appointed Chief
Financial Officer. M r. Peshek jo ined Belden & Blake in
March of 1994, in the capacity of Co rporate Controller and
associations. It has recently been awarded a
For Immediate Release: ³Certificate of Recognition² from PA Senator Barry
Stout and the ³Chuck Chattaway Memorial Award²
Lee Supply Co., Inc. of Charle roi, PA is for support in re-establishing the area¹s economic
celebrating its 50th anniversary this year. Founded base from the Mid Mon Valley Industrial
in 1954 by Ed Lee, the father and grandfather of the Development Association.
current owners, the company was primarily a
mining supply firm selling products to the coal The core values of Lee Supply Co. remain the same,
industry in western PA, northern W.V. and eastern providing quality products, at competitive prices, in
OH. a timely manner to all markets they serve. As they
enter their 50th year of business their commitment
The second Lee generation took over management to solutions, service and supply that has led to
in 1972. They continued to service the mines as growth and development for fifty years will
well as diversifying into the industrial, municipal continue to be their base for the future.
and environmental markets in the mid to late 1980s.
With these new markets came new products such as Lee Supply Company, Inc.
HDPE pipe, fittings, and specialty fabrications. That 305 1st Street
diversification has led to the company being one of Charleroi, PA 15022
the largest suppliers of pipe and pumping systems to 1-800-353-3747
the solid waste industry in the eastern United States. www.leesupply.com
As the largest stocking distributor of HDPE pipe in
the northeast, Lee Supply is able to service and
support customers in all markets 24/7. The fleet of
over 20 company operated trucks assures on time
delivery and the trained staff of technical support
personnel is available to assist on any project.
Lee Supply¹s continued success is due to the quality
products it represents plus the overall strength of
character of the people it employs. There are over
90 employees with a combined 936 years
experience in the industry, many of those have been
with Lee for over 20 years.
From left to right: Kevi n Lee (Customer Service Rep);
Mike Lee (President, CEO); Dave Lee (VP, CFO);
Doing business in a small town means being Shawn Lee (Fusion Equi pment Manager).
involved in promoting the prosperity of the area.
Lee Supply gets involved by supporting over 75
youth, adult, and community groups and
Publication of the Independent Oil and Gas Association of Pennsylvania
Executive Director and Editor, Louis D. D’Amico
IOGA-PA, 115 VIP Drive – Suite 110, Wexford, PA 15090-7906
Phone: 724-933-7306 • Fax: 724-933-7310 • email@example.com