Marcellus Shale "In The News"

• The January 10th Philadelphia Inquirer included a report entitled “Fracking Under Pressure” that relates growing opposition to methods for extracting natural gas and efforts to keep aquifers safe. An opinion piece “Put Strings on Any Gas Tax” is also included in this issue.

• The State’s plan to regulate total dissolved solids is a subject for debate. According to an article in the January 5th Pittsburgh Post Gazette, environmentalists say the Commonwealth’s proposal to regulate discharges of dissolved solids into streams, rivers and lakes is much needed and long overdue. On the other hand, industry and pro-development groups have labeled it ill-advised and too expensive. Find out more about the positions presented at the public hearing of the state’s Environmental Quality Board in Cranberry.

• The Winter 2009-10 issue of E&P Focus, the National Energy Technology Laboratory’s quarterly newsletter highlighting US Department of Energy oil and gas research, features two articles of interest involving environmentally friendly drilling techniques and technologies for managing fracturing flowback water. This issue can also be accessed on the NETL website.

• The federal Environmental Protection Agency (E.P.A.) has recommended “essential environmental protection measures” be taken before reviewing permits for drilling in the Marcellus Shale region of New York. Formal comments to the proposed New York regulations included concerns about how the drilling would affect public health and the environment. The response also urged further study on its potential impact on such aspects as regional water supply, air quality and wastewater treatment including radioactive materials that could be disturbed during drilling. See the December 31, 2009 New York Times article for details.

• Marcellus Shale legislation and litigation was the subject of the December 17, 2009 “webinar” sponsored by the Penn State Cooperative Extension. An overview of case law and a summary of proposed legislation, as well as previous sessions on topics related to Marcellus Shale natural gas extraction, can be found at http://naturalgas.extension.psu.edu/Events.htm

• On December 14th, Exxon Mobil announced its plan to buy XTO Energy Inc for $41 billion. XTO, a Fort Worth, Texas company, is a major developer of “unconventional” natural gas such as that found in Marcellus Shale.With the purchase, Exxon Mobile obtains leases to 280,000 acres in the Appalachians and 35 of the 2431 active well permits in Pennslvania. Details are in the December 15th Philadelphia Inquirer.

• Resources, a natural gas company in Warrendale, Pa., that holds significant rights to lands in the upper Susquehanna Watershed. See the December 10th feature in the Philadelphia Inquirer.

• “The Dark Side of a Natural Gas Boom,” reported in the December 7, 2009 New York Times, relates accounts of problems created by methane in drinking water and fracturing chemicals in water sources. Responses of industry representatives and Environmental Protection Agency spokespersons are also presented.

• Business interest in natural gas extraction from Marcellus Shale continues to boom according to a December 6th article in the Pittsburgh Post-Gazette. Hart Energy Publishing Company initially planned a conference in October for about 300 people and 1400 attendees from across the country came! Get a sense of this economic trend, read the historical perspective and projections reported.

• According to the November 30th PR Newswire, the Marcellus Shale Coalition (MRC) has reorganized into an independent, non-profit organization representing the Marcellus natural gas industry in Pennsylvania. The group is planning to enhance its communication with regulators, government officials, the news media, and Pennsylvania’s citizens.

• Given concerns about water pollution resulting from Marcellus Shale natural gas extraction, the Susquehanna River Commission is installing a network of water monitoring devices to assess water quality along the streams in the impacted areas. The $750,000 cost is being paid by East

• To offset Pennsylvania’s budget shortfalls, more state lands are open to the leasing of surface and mineral rights. The River Reporter reports that Acting Secretary John Quigley of the Department of Conservation and Natural Resources has announced the availability of six tracks of land in Elk, Moshannon, Sproul, Susquehannock and Tioga state forests. Bids will open at $2000 per acre with 18% royalties. For details on the land lease, go to www.dcnr.state.pa.us/forestry/gaslease.aspx .

• To deal with concerns about water in Lycoming County, the Responsible Drilling Alliance has been formed in the Williamsport area with about 100 members. The group, was recently featured on WYEP Pittsburgh Public Radio and also in an article in the Sun Gazette.

• The Pittsburgh Post-Gazette reported on October 6, 2009 that Scott Roy, Gov. Rendell’s deputy chief of staff, has resigned to work for Range Resources Inc., a Texas gas firm that is active in the drilling for natural gas in Marcellus shale areas.

• A $600 million dollar, 110 mile pipeline from the natural gas fields of West Virginia to Delmont, PA is going to be built by Dominion Energy. According to the October 5, 2009 UPI release from Richmond, the pipeline will be completed in 2012, include four compressor stations, and end 25 miles east of Pittsburgh.

• On September 17, 2009, the PA Department of Environmental Protection announced that about 8,400 gallons of a gel used in drilling natural-gas wells was spilled on an unknown amount of “shallow wetland” at a well being drilled in Dimock Township for Cabot Oil & Gas.

• According to Fox News, on September 14, Fortuna Energy, Inc. indicated it wants to lease land in the Southern Tier (New York) and northern Pennsylvania for five years and would pay landowners $5500 per acre. On top of that, owners would receive 20% royalties on natural gas produced.

• On September 15,2009 the Williamsport Sun Gazette posted that the Blossburg Council approved the rezoning go a 10-acre parcel of land from commercial to heavy industrial so a fracking water treatment facility could possibly constructed there. It would remove “suspended solids” from water and resell it to the gas companies for re-use.

• According to the September 19, 2009 issue of Harrisburg’s The Sentinel, the budget agreement reached on September 18th, includes $65 million dollars in revenue from leasing State lands for Marcellus Shale.

• On September 20, 2009, the Pittsburgh Post-Gazette reported that thirty-eight miles of Dunkard Creek in Greene County are all but dead as 161 species in the ecosystem have been wiped out. The fish kill count is over 10,000. An investigation is still underway.

• A September 6, 2009 article in the Pittsbugh Tribune Review stated that the demand for treating wastewater from oil and gas production in the state is expected to reach about nine million gallons a day this year, according to a state Department of Environmental Protection report. It is projected to increase to 16 million gallons next year and 19 million gallons a day in 2011, when new standards limiting such pollution would take effect.

• Through mid-August 2009, the DEP issued 1067 permits for drilling statewide, compared with 476 for the entire 2008 year. The number of wells drilled totaled 283, up 45% from the 195 total in 2008, according to the September 6, 2009 piece in the Pittsburgh Tribune Review.

LWV PROJECTS