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Marcellus
Shale
Natural
Gas
Roundup
Potter County, Pa. October 2010
Top Story:
Potter County: Here’s Where The Wells Are Being Drilled So Far
This edition of Monthly Roundup unveils a new feature that allows readers to pinpoint the
location of natural gas wells in Potter County. Bob Volkmar of God’s Country/Trout Unlimited
and Bob Veilleux, an educator with Penn State Cooperative Extension and the Potter County
Education Council, are compiling directories. In addition to the accompanying chart, the two
have available a spreadsheet with specific well activity in each municipality and a navigable
map. Each document will be frequently updated. For additional information, contact Bob
Volkmar at rdvolkmar@gmail.com and Bob Veilleux at rav11@psu.edu.
Part 1: Economic Developments
How Many Wells Are Coming? Industry Says ‘Thousands’
How many gas wells will be drilled into the Marcellus Shale over the next
half-century? Experts’ opinions vary, due to many uncertainties ranging
from economics and market factors to regulatory and taxation issues.
But there’s no doubt that the activity will intensify throughout this decade
and beyond. Too many well-heeled companies have invested too much
money to reach any other conclusion. For its part, the gas industry
forecasts 30,000 Marcellus Shale wells to be drilled by 2020 in
Pennsylvania, southern New York, West Virginia and eastern Ohio. Billions of dollars are
pouring into the four states. Among the biggest deals:
XTO Energy finalized a $31 billion sale to Exxon Mobil Corp. Exxon gains a strong
bridgehead in the Marcellus, where XTO controls minerals under 280,000 acres.
Royal Dutch Shell has bought Pittsburgh-based East Resources for $4.7 billion.
Chesapeake Energy Corp. of Oklahoma City, which holds a 1.6-million-acre position
since acquiring Columbia Natural Resources for $2.2 billion in 2005, signed a joint
venture with Statoil in 2008. The deal handed the Norwegian oil behemoth 600,000
acres of American shale to explore for $3.3 billion, including a $1.2 billion upfront capital
injection to help Chesapeake expand its drilling operation.
Consol Energy Inc., the coal giant and one of Pittsburgh's corporate icons, agreed to pay
$3.4 billion for Marcellus acreage in its buyout of Dominion Resources Inc.
Small and mid-sized companies that spent years locking up Marcellus acreage need the
financial resources of bigger partners to develop it. Energy companies from India and Japan are
investing. In February, Japan's Mitsui & Co. entered a $1.4 billion joint venture with Anadarko.
Then Pittsburgh-based Atlas Energy formed a $1.7 billion partnership with Reliance Industries
Ltd., the largest private-sector company in India. The low cost of producing Marcellus gas, its
pipeline-ready quality and its proximity to consumers in the Northeast have driven investment.
Gas Instead Of Coal? U.S. Policy Will Dictate Future Trends
UN Foundation President Tim Wirth is pushing for U.S. public
policies that encourage electric utilities to retire old coal-fired
power plants and burn cleaner natural gas. Not surprisingly,
that sentiment is facing serious push-back from the coal
industry, but Wirth says the impact could be modified with a
concerted transition. ―Shale deposits in coal states can
change both the economies and the politics of those key
states -- and therefore of Washington," Wirth said. He is
urging policy makers and the gas industry to throw their
weight behind natural gas use in heavy-duty trucks and government fleets, as well as a large-
scale transition from coal-fired plants to gas plants for electricity generation. Coal-fired
generation accounts for about 45% of U.S. electricity use. Fuel-switching to gas is emerging in
large part because of tougher EPA restrictions on air pollutants, state environmental mandates,
and expectations that natural gas prices will remain competitive. MIT estimates gas could go
from supplying about 20 percent of U.S. power generation to 40 percent or more by 2040.
Worldwide Impact Of Shale Gas Discoveries Emphasized
The United States has offered to help major
economies such as China and India develop
shale gas. Twenty nations recently met in
Washington for two days of shale gas talks. US
officials believe that developing shale gas
would provide fast-growing China and India
with a cleaner alternative to coal. In Europe,
shale gas could also reduce reliance on energy
heavyweight Russia. "The main reasons for
doing it are national security and climate
security," said David Goldwyn, the State Department's coordinator on international energy
affairs. Another potential reason -- the United States has an edge in shale gas. Last year, the
United States overtook Russia for the first time in decades as the world's top gas producer. The
talks included four Asian energy importers -- China, India, Indonesia and Pakistan -- along with
eight nations in Russia's vicinity: Armenia, Bulgaria, Estonia, Georgia, Lithuania, Poland,
Romania and Ukraine. Delegates from Chile, Colombia, Peru and Uruguay came from South
America, where energy power Venezuela is a U.S. nemesis. The other nations that participated
were Jordan, Morocco and South Africa.
Clinton County Lands Rental Company For Trailers, Accommodations
HB Rentals, one of the world's largest suppliers of on-site
accommodations and auxiliary equipment for the oil and gas
industry, is opening its doors in Lamar Township, Clinton
County. This will mean about 16 new jobs immediately, with
the possibility of 30 jobs within a year. The company offers a
variety of services to drilling operations involving wheel-
mounted trailer units, telecommunications equipment, water,
sewer and septic systems and cold weather skids. HB Rentals specializes in providing camp-
style accommodations in very remote locations, from pipeline projects to construction and
transportation work. Trailers come in a variety of sizes and layouts. Employees will include
drivers and field technicians, as well as cleaning personnel. Clinton County Economic
Partnership and the Lamar Township Supervisors supported the company.
Gas Industry One Of Few Adding Jobs In Pennsylvania
Gas drilling is one of the few industries adding
jobs in Pennsylvania. Last month, the
Marcellus Shale Coalition launched a website
with links to all its member companies and
their job listings. A Harrisburg Patriot-News
survey of those sites revealed 7,991 current
job listings -- 611 of which (7.6 percent) were in Pennsylvania. Just over one-third of the links
did not have job postings, but rather contact information or a form allowing interested
candidates to submit information or a resume. The site does not include ancillary jobs created
by the Marcellus gas boom — notably trucking and service industry jobs. It also does not
account for temporary jobs which are often filled by workers from outside of Pennsylvania who
support certain sectors of the economy, including gas stations, hotels and restaurants. (Source:
Harrisburg Patriot-News)
Range Resources To Build Headquarters In Pennsylvania
Range Resources Corp. has announced plans to build a five-
story, 180,000-square-foot regional headquarters at the
Southpointe II development in Canonsburg, near Pittsburgh,
with an option to add another 100,000 square feet later. The
Fort Worth, Texas, company said the move is driven by natural
gas opportunities in the Marcellus Shale. Range plans to
expand the regional office from about 225 employees to
approximately 500 over the next several years.
Northcentral Pa. Regional Commission Responding To Marcellus Issues
Northcentral Pa. Regional Planning and Development
Commission is tapping into public and private networks
to fulfill its economic development mission when it
comes to the gas industry. Executive Director Eric
Bridges attended a roundtable in Harrisburg that helped
to define the role of regional development agencies.
―Virtually all state agencies were there," said Bridges.
"There are definite values and opportunities that local
development agencies are bringing to the table . . .
There’s interest in having sufficient housing to not only
handle the influx of workers, but also those who may be dislocated. Housing is not something
that development districts have had an extensive role in, but it's important, so we're trying to
figure out what kind of advocacy or leadership role is needed.‖ Furthermore, Bridges indicated
that officials are planning for the transportation aspect of the Marcellus Shale development.
"We're working with some counties on local land issues and helping municipalities understand
what they need to do with posting and bonding roads . . . We're committed to doing our best to
understand, commit and provide education and technical assistance to communities, individuals
and companies." (Source: Kane Republican)
State Grant Supports Two New Natural Gas Refueling Stations
With help from the state, two companies will opening the first
public natural gas refueling stations in Western
Pennsylvania. DEP has awarded Equitable Gas a $700,000
grant to build a station by the end of March 2011. DEP also
awarded the Giant Eagle supermarket chain $900,000 to buy
10 natural gas vehicles and build another public refueling
station in Crafton. "People aren't going to buy compressed
natural gas vehicles if it's not convenient or they don't have a
place to go refuel," DEP spokesman John Repetz said. "By
offering incentives, we're going to give them a place to refuel.
More vehicles will be purchased, and the industry will
expand." There are about 110,000 natural gas vehicles being used in the United States. Honda
plans to make its natural gas-powered Civic GX available for individual purchase at dealerships
by the end of the year. Equitable will use its station to fuel 32 more natural gas vehicles it plans
to buy, as well as other companies' fleets. Giant Eagle’s station will fuel its fleet and potentially
those of other area companies.
Part 2: Environmental Developments
Pennsylvania Lauded For Regulation Of Gas Drilling
An independent, non-profit stakeholder organization,
known by the acronym STRONGER (State Review of
Oil and Natural Gas Environmental Regulations), called
Pennsylvania’s hydraulic fracturing oversight program
―well-managed, professional and meeting its program
objectives‖ in a recent report. The organization’s evaluation was conducted by members of
environmental organizations, EPA, and representatives of natural gas companies.
Pennsylvania’s program was rated as particularly strong in its approach to planning for and
managing water uses; monitoring water quality before drilling takes place; tracking and reporting
waste generated by drilling operations; and requiring that drillers be prepared in the event of an
emergency. The report also recognized DEP’s work to increase staff levels in the Oil and Gas
Management bureau — adding more than 100 employees in the last two years, which nearly
doubled the bureau’s complement. Most recently, Pennsylvania adopted stronger standards for
discharges into public waterways, strictly limiting the levels of total dissolved solids and other
pollutants that can be released into rivers and streams. The state is also in the process of
toughening gas well construction standards in an effort to protect groundwater supplies. Many
companies are already building their wells to meet the new standards, even though they are not
yet in effect.
Federal Grant Approved For Potter County School Program
Students and teachers from all five public schools in Potter County will
be involved in an environmental education project tied in with the
upsurge in natural gas drilling. A $120,000 federal grant for the project
was approved last week. The proposal was put together by school
administrators from Austin, Northern Potter, Galeton, Oswayo Valley
and Coudersport. Federal funds will be used to buy water quality
monitoring equipment and train teachers and students how to use it; to
prepare teachers to integrate the nationally recognized ―Project Wet‖
environmental education program into the classroom; and to set up
and implement the water quality assessment and reporting processes.
The five local school districts combined forces to retain a grant
consultant who applied for the funding, with support from the Potter
County Natural Gas Task Force and other organizations. Goals of the program are to:
improve students’ awareness of threats to the environment and natural habitats;
enhance students’ knowledge and application of math, science and technology content
as it relates to environmental concerns;
prepare students to become environmental stewards as they monitor the water quality of
rivers (Allegheny, Genesee and Susquehanna), streams, creeks and local aquifers to
determine environmental impacts of natural gas extraction and other activities.
Project WET and the Healthy Water, Healthy People water quality program will be integrated
into standards-based math, science and technology instruction to establish a formal
environmental education curriculum, using nearby water bodies as "living learning laboratories."
Teachers will participate in 80 hours of training to enhance their environmental education skills.
DEP Secretary, Cabot Square Off On Dimock Pollution Issues
Pennsylvania will sue a Houston-based drilling company
unless it agrees to pay nearly $12 million to extend a
public water line to at least 18 residents whose water
wells have been contaminated with methane. DEP
Secretary John Hanger has accused Cabot Oil & Gas
Corp. of reneging on its promises to the residents of
Dimock, a small town in Susquehanna County. Though it
has already taken legal responsibility, Cabot contends
water wells in the area were already tainted with
methane long before it arrived. But Hanger quoted from
two consent agreements, from November 2009 and April
2010, in which Cabot admitted polluting Dimock's water
supplies and failed to fix the gas wells in a timely fashion.
Hanger said the state performed sophisticated testing
that identified the gas as coming from Cabot's wells. Dimock residents are to be connected to
the water system of Montrose, a town about six miles away. Construction is expected to take 18
months. Earlier this month, a private consulting firm found toxic chemicals in Dimock water,
including industrial solvents, but could not say the chemicals were the result of gas drilling. A
private lab found that water supplies in the areas affected by methane contamination were also
contaminated by toluene, xylene and ethylbenzene. Cabot said it "does not believe it caused
these conditions and intends to fight these allegations through its scientific findings."
Fish/Boat Commission Asks State For More Resources
Officials of the Pa. Fish and Boat Commission have called on
the legislature to provide funding that would allow the agency
to step up its oversight of water resources across the state.
―In all likelihood, Pennsylvania will continue to experience
high rates of environmental, health, and safety violations at
Marcellus Shale drilling sites,‖ the agency reported. PFBC
Executive Director John Arway said the gas industry ―has
come into Pennsylvania in full force and has substantially
increased the responsibilities of conservation agencies like
the PFBC . . . Since 2001, the PFBC has tripled the number
of oil and gas well permit reviews it conducts each year, and
we are struggling to keep up with the ever-increasing volume.
Within the past year, PFBC staffers also have conducted
approximately 175 field views of gas well sites and have observed water quality degradation
from a number of these facilities.‖ Meanwhile, three companies with Marcellus Shale drilling
sites recently took Fish and Boat Commission leaders on a field tour through Lycoming County.
Chief Oil & Gas, Anadarko Petroleum Corp. and Range Resources led a tour of sites where the
shale gas is in various stages of extraction. The stops included water withdrawal sites,
impoundments and drilling sites. Last stop was an Anadarko well completion site. Fish and Boat
commissioners were shown an impoundment no longer in use. Anadarko has removed the liner
and cuttings. Once the company receives a DEP permit, it will "reclaim" the pit, or return the
land to its original state. Anadarko officials pointed out that while they are allowed to bury pits
after use, they voluntarily reclaim them to reduce environmental impact.
DEP Cites Chesapeake For Stray Gas; Company Meeting New Standards
While DEP continues to monitor Chesapeake Energy’s
progress in remediating stray methane gas in Bradford County,
the agency has directed the company to take steps to prevent
similar situations from occurring elsewhere. On Sept. 2, DEP
received reports of bubbling water on the Susquehanna River.
DEP and Chesapeake believe the culprit is gas migrating from
six wells that are located on three well pads approximately two
to three miles northwest of the river. DEP directed Chesapeake
to evaluate each of its 171 wells in Pennsylvania that used the
casing procedures used in the six wells. When testing finds an anomaly, the company will inject
cement behind the casing that seals off the formation, eliminating the route for gas to migrate.
The wells were drilled between December 2009 and March 2010, but have not been fractured.
Chesapeake reports that all wells drilled by the company after July 31 conform to the state’s
stricter construction standards that are before the State Environmental Quality Board and could
be submitted to the Independent Regulatory Review Commission by November.
Part 3: Potter County Natural Gas Task Force Update
Training Available Locally For Gas Industry Jobs
The Employment/Training Committee of the Potter County
Natural Gas Task Force reports that another series of training
opportunities has been scheduled for those interested in
learning skills that will help them secure employment in the
natural gas industry. Potter County Education Council, in
partnership with Penn State Extension and the Seneca
Highlands Area Vo-Tech, will be starting its second component
of these training programs on Nov. 8: Certified Well Tender with
CDL, Certified Well Tender without CDL, and CDL. These
courses range in length from 3 to 6 weeks and help prepare
individuals for jobs such as: well tender, pumper, derrick
hand, frac crew, tanker driver, equipment operator, rig
hand, roughneck, roustabout, mud logger or pipe
locator. To learn more, contact the Education Council’s Vo-Tech Office, 814-545-1333.
Township Officials To Meet With PennDOT Reps One-On-One
The Townships & Borough Impacts/Planning Committee of the
Potter County Natural Gas Task Force reports that a meeting will
be held on Oct. 21 in Coudersport to share information with
municipal officials about road bonding, maintenance agreements, overweight vehicles and
related topics. The sessions are timely due to the increase in heavy equipment and water tanker
traffic related to natural gas drilling. Each township and borough will have one-on-one time with
officials from the Pennsylvania Local Technical Assistance Program and PennDOT. They’ll also
receive a booklet with sample ordinances and other information.
Schlumberger Duo Explains Hydrofracturing, New Technology
Engineers Adam Bell (left) and Peter Rottler from
Schlumberger presented a program on hydraulic
fracturing and related topics at the September meeting
of the Potter County Natural Gas Task Force. They
described the additives that are included with the sand
and approximately 5 million gallons of water used in a
typical fracking operation. Between 20 and 25 percent
of the water returns to the surface, contaminated with
sodium and other naturally occurring substances. Due
to expenses incurred in the acquisition, transportation
and treatment of water, much of it is being reused for
subsequent hydrofracturing. Schlumberger has developed a new friction reducer that allows
more reuse of the brine water. New state total dissolved solids standards for discharges into
public waterways have prompted more reuse and a search for other solutions. Some plants are
treating contaminated water and, rather than discharging it, are selling it back to industry. On-
site remediation is another option; more than a half-dozen companies are proposing to provide
those services. (Endeavor News photo).
Reports On Water Monitoring, Township Training Presented
Next meeting of the Potter County Natural Gas Task Force will
be held on Tuesday, Nov. 9, at 7 pm in the Gunzburger Building
at Main and Water streets in Coudersport. This will be the
organization’s final meeting of 2010. Sessions are now held
every other month. A wide variety of information was presented
at the September meeting of the Task Force. Following is a
summary of some of the reports presented:
Trout Unlimited representative Bob Volkmar said training of volunteer water monitors
continues. They’ll be checking streams and rivers for any potential degradation due to
natural gas drilling or other causes. Headwaters Resource Conservation and
Development Council is supporting the monitoring system in Potter, Cameron, McKean,
Elk and Jefferson counties. First phase is to establish a baseline of water conditions on
coldwater streams.
Bob Veilleux reported on training at the Vo-Tech School in Port Allegany for anyone
interested in gas industry employment, from welding and truck driving, to rig work and
related jobs in the field. (See details elsewhere in this edition.) He said there has been a
high level of interest in training classes that have already been held. Veilleux also
discussed other partnerships involving education providers and the gas industry to
prepare local residents for employment.
Mary Jo Shaub discussed the state-sponsored broadband outreach program. It’s an
effort to bring high-speed data/internet capacity across the state, including rural areas, in
partnership with private providers.
John McLaughlin reported on two scheduled water quality workshops. On Thursday,
Oct. 14, Brian Swistock, Cooperative Extension, will make a presentation at the Natural
Gas Expo in St. Marys from 3-5 pm. On Tuesday, Oct. 19, Jim Clark, Cooperative
Extension, 6:30 pm to 8 pm, will present a program at the Galeton Senior Center.
Part 4: Miscellaneous Developments
Wild Well Control Training Sessions Scheduled Locally
Training sessions are being held in Potter and Cameron
counties to prepare emergency services personnel for
response to a natural gas wellsite incident. Potter County
Department of Emergency Services is working with the
State Fire Academy to bring programs to the area. The
natural gas industry is supporting the initiative, which
features new components targeted specifically at public
safety issues associated with shale gas production. It will
cover a host of topics, from what to expect upon arriving at
a well site, to how to coordinate with on-site industry
personnel, giving first-responders the tools needed to
effectively respond to the broad range of scenarios. Wild well control training is scheduled as
follows:
Friday, Nov. 19, 9 am, Coudersport Fire Dept. Training Center;
Saturday, Nov. 20, 9 am, Emporium Firehall;
Sunday, Nov. 21, 9 am, Harrison Township Firehall.
Additional information is available from Potter County DES at 274-8900.
Federal Government Funds Research Center In Wilkes-Barre
Some $1 million in federal funding will be used to help create an
institute in Wilkes-Barre focused on researching Marcellus Shale
natural gas issues. It will be operated by Wilkes University, Kings
College and Earth Conservancy. The Institute for Energy and
Environmental Research of Northeast Pennsylvania will focus on all issues related to natural
gas drilling in the Marcellus Shale. Funding is being provided through the National Energy
Technology Laboratory, which will partner with the schools and Earth Conservancy for research
projects. The institute will work with water resource research and development, community
outreach and public education. It also will be an information clearinghouse. The institute will
initially be located on the Wilkes campus.
PGE Seismic Testing Continues In Western Potter County
Pennsylvania General Energy (PGE) has followed
through on its plans, announced at a Potter County
Natural Gas Task Force meeting, to conduct a 75
square mile three-dimensional ―seismic shoot,‖ with
a price tag of roughly $7 million, to learn more
about subterranean formations in western Potter
and a portion of eastern McKean County. PGE has
plans to drill approximately 100 wells by the end of
2011. (Photo taken in village of Roulette, courtesy
of James Jones, Solomon words website)
Marcellus Shale Coalition Releases ‘Commitment To Community’
Marcellus Shale Coalition (MSC) has unveiled a set of principles by
which the industry aspires to operate in Pennsylvania. Ray N.
Walker Jr. of Range Resources, chairman of the MSC, said the
Commitment to the Community code ―will help make certain that
we will deliver on what is looking more like the greatest economic
opportunity this Commonwealth has seen in generations . . . With
that comes an even greater responsibility.‖ The document’s guiding
principles:
We provide the safest possible workplace for our employees, with our contractors, and in
the communities in which we operate;
We implement state-of-the-art environmental protection across our operations;
We continuously improve our practices and seek transparency in our operations;
We strive to attract and retain a talented and engaged local workforce;
We are committed to being responsible members of the communities in which we work;
We encourage spirited public dialogue and fact-based education about responsible
shale gas development;
We conduct our business in a manner that will provide sustainable and broad-based
economic and energy-security benefits for all.
We recognize that to succeed in business, we not only embrace these principles, we live
by them each and every day. This will be our legacy.
Pennsylvania Town Says ‘No’ To Gas Drilling
Residents of Eagles Mere, a northcentral
Pennsylvania vacation community, are refusing to
lease their land to companies scrambling to grab a
piece of the Marcellus Shale. Most of the doctors,
lawyers and executives who own homes in the
resort are unmoved by offers of lease payments of
at least $2,500 an acre, or by the promise of
royalties on gas. Eagles Mere differs from some
other rural communities where economic hardship,
particularly among farmers, makes it more likely that
landowners accept checks. "The overwhelming
majority of landowners have no desire to lease their land," said Geoff Stoudt, a lawyer and
president of the Eagles Mere Association, which owns 220 acres including the lake around
which the town is built and its shoreline. The association this summer turned down a lease offer
from Chesapeake Energy Corp., which has sunk 186 Marcellus wells statewide -- most of them
in neighboring Bradford County -- and wants to expand production southwards into Sullivan
County surrounding Eagles Mere. Williams Companies Inc. is also seeking to lease land at
Eagles Mere and has signed leases in surrounding towns. Landowners who have signed leases
have generated anger among the majority who have not, residents said. They are now waiting
for the local country club to decide whether to lease, and some have threatened to resign if it
does.
Gas Companies Upgrading Roads In Bradford, Tioga Counties
Bradford County has been the epicenter
of Pennsylvania’s Marcellus Shale
natural gas activity and its roads are
taking a beating. In many cases, drilling
companies have agreed to accept
responsibility for repairing those roads
damaged by heavy tankers and other
equipment. Sometimes, the company is
even willing to upgrade a state or
municipal road in order to accommodate
its heavy traffic. Chesapeake Energy
has contracted to upgrade several
Bradford County roads. The process
involves grinding of the roadway to a depth of approximately 15 inches; adding cement to the
soil; mixing it and compacting it and then applying an average of eight inches of blacktop
pavement. The roads are currently posted with year-round, 10-ton weight restrictions.
Chesapeake has excess maintenance agreements with PennDOT and is responsible for repair
of damage caused by its heavy trucks. Chesapeake determined that it would be more cost-
effective in the long run to upgrade the roads rather than make repairs on a continuing basis. At
the same time, Towanda officials have taken steps to keep water tanker trucks off residential
streets in the borough. Under a new ordinance, weight limits ranging from 10 tons to 20 tons are
in effect on 27 streets in the borough. Water tanker trucks are still able to use the state routes in
the borough, such as Route 6. Certain vehicles are exempt from the weight restrictions, such as
school buses, garbage collection trucks, emergency vehicles, and trucks making local deliveries
and pickups. Meanwhile, in Tioga County, Ultra Resources is upgrading a 2.1-mile section of
the state-owned Elk Run Road, from the intersection with Leetonia Road at Marshlands to the
Pine Creek Bridge at Watrous. The contractor will complete roadway base repairs, then place
two layers of blacktop pavement totaling a depth of six inches. The project is expected to be
completed by Oct. 31. Similar conditions to Chesapeake’s arrangements with PennDOT in
Bradford County will apply.
McKean County Latest To Form Marcellus Shale Task Force
McKean County officials have formed a Natural Gas
Task Force. The county recently held a forum on the
impact of Marcellus Shale gas well drilling. Among
those taking part were (from left) Commissioner Joe
DeMott, Mike Roche, director of economic
development; Jim Clark, Cooperative Extension
educator; Jeff Andrulonis, Kane Chamber of
Commerce; and Mike Hancharick, Kane Hardwood.
Clark advised residents to make sure that "pre-drilling
tests" are performed on private water sources to
establish the condition of the water supply before
drilling begins. Clark also pointed out that large pipelines and miles of gathering lines will be
needed to transport the gas. Because the drillers are hauling heavy equipment over local roads,
Clark advised the municipal officials to work out deals for road improvements.
Lycoming County Zoning Ordinance May Be Model For Others
A zoning ordinance that governs the gas industry in
Lycoming County could be in effect by November,
according to Planning and Community Development
Director Kurt Hausammann Jr. The zoning partnership
includes municipalities that have agreed to be placed
under a county zoning ordinance. Hausammann said
staff worked with representatives from Anadarko
Petroleum Corp., Range Resources and Chief Oil and
Gas to craft a fair ordinance that promotes development
while protecting the quality of life in the county. For a zoning permit to be issued, the ordinance
requires that the county receive a narrative providing the number of acres that will be disturbed,
the proposed number of wells to be drilled and a description of how the company will address
damage to public roads. The company also must submit a 911 site address and copies of state
permits. The ordinance requires a well bore to be located no closer than 200 feet from any
scenic road, trail, boat launch, scenic overlook, national or state-recognized historic place, right-
of-way line of any public or private road, and property line of publicly owned land. The ordinance
also addresses compressor and metering stations, water reuse storage facilities, staging
facilities and noise standards. Andarko’s Mary B. Wolf said, "I think you are going to find you
have a model for other counties in the commonwealth."
Seminars Open To Public At Oct. 14 Gas Expo In St. Marys
Several seminars have been added to the agenda for
the North Central Gas Expo, scheduled for 10 am to 6
pm on Thursday, Oct. 14, in St. Marys. Although the
event is geared toward those who seek to do
business with – or find employment with – the gas
industry, the seminars will be of more general
interest. For more information on the seminars, call
(814) 781-3437 or 1-877-672-3667. For other Expo
information, see northcentralgasexpo.com. The
seminar schedule is as follows:
Marcellus Shale: Pennsylvania’s Home-Grown Energy Source, 10:30 and 2:00; learn
about drilling technology and related issues as well as the outlook for gas production;
presented by Robert Garland, Universal Well Services
Natural Gas Careers and Future Needs, 11:45 and 4:45; learn about careers, skills that
will be required and expected employment needs; presented by Danielle Boston, PIOGA
Introductory Marketing/Working with the Gas Industry, 1 pm; documents, requirements,
and processes; safety training, insurance requirements, master services agreements,
terms and conditions; presented by Bob Veilleux, Cooperative Extension
Marcellus Shale Basics for Landowners, 1 pm and 3 pm; information landowners should
know before signing a lease; presented by Scott Weikert, Cooperative Extension
Water Test Interpretive Workshop, 3 pm; focus on the management of private water
supplies and water testing; presented by Jim Clark and Bryan Swistock, Cooperative
Extension. Pre-registration required; contact Jim Clark at jac20@psu.edu or 814-887-
5613.
.
New Animation Sequence Charts Rapid Growth Of Drilling
As this edition of Monthly Roundup was going to press, the new Marcellus Center for Outreach
and Research at Penn State released an interesting animation tracking the growth of natural
gas drilling in Pennsylvania from 2007 to September 2010. It’s available, along with a wealth of
other information, at the center’s website: marcellus.psu.edu (click on ―Maps‖ option under
Highlights). As can be seen in the animations, interest in the Marcellus has skyrocketed with just
99 drilling permits issued in 2007, compared to 2,108 in the first eight months of 2010. A similar
surge in the numbers of wells drilled also is evident. In 2010, through Aug. 31, some 950 wells
had been drilled in the Marcellus Shale, while in all of 2007 only 43 wells were drilled. ―We
expect that the uptick in Marcellus well drilling activity will continue, given the high production
rates being seen in the wells and the relatively low cost to develop this gas resource,‖ said
Michael Arthur, co-director of Penn State’s Marcellus Center and professor of geosciences.
―Even with the low natural gas commodity pricing, drilling in the Marcellus can still be profitable
for efficient companies.‖ The Marcellus Shale’s organic carbon-rich, gas-producing layers range
from less than 5 feet thick to more than 250 feet thick. Geologic studies confirm that the shale is
thicker and thus has more production potential in counties east of Potter. DEP updates its
permit and well reports weekly on its website. A separate spreadsheet identifies Marcellus
permits and whether they are for horizontal or vertical wells. The Marcellus Center for Outreach
and Research is supported by Penn State Outreach, Penn State Institutes of Energy and the
Environment and the colleges of Agricultural Sciences and Earth and Mineral Sciences. For
more information, contact the center at marcellus@psu.edu or (814) 865-1587. Among the
items found at the center’s website is this map showing the depth of Marcellus Shale. A
separate map depicts its thickness.
Mobile Energy Education Trailer Visit Big Success
School students and members
of the public learned about
energy issues during
appearances at the county seat
by the Mobile Energy Education
Training Unit (MEET-U). The
44-foot-long trailer with exhibits
was developed by Friends of
Drake Well and the petroleum
industry, and sponsored locally
by Pennsylvania General
Energy. MEET-U explains how
petroleum is formed, found,
produced, refined, used, and conserved. It addresses
the costs of energy, the environmental impacts of producing it, and the search for alternative
energy sources. MEET-U also encourages students to consider pursuing careers in science and
engineering. The exhibits include videos, scale models of tools, contemporary well-drilling
photographs, and pieces of Marcellus Shale. After a stop at Coudersport Elementary School,
the trailer moved to the courthouse square. The accompanying photos are by Amy Thompson,
who facilitated the MEET-U visit.
Next meeting of the Potter County Natural Gas Task Force will be held at 7 pm
Tuesday, Nov. 9, at the Gunzburger Building in Coudersport. Program details will
be announced.
Potter County’s website, pottercountypa.net, features a Marcellus Shale/Natural Gas
section containing a wealth of information, including a record of the Task Force, links to
information sources, and coming events.
This publication is produced by the Public Education Committee of the Potter County Natural Gas
Task Force. Anyone with story ideas for this newsletter or comments should contact Paul Heimel
(paulheimel@yahoo.com).
