Marcellus Shale Natural Gas Roundup Potter County, Pa. October 2010



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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).
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