Marcellus Shale

Natural Gas Roundup

Potter County, Pa. February 2011

Top Story: ‘Water, Water Everywhere . . .’

Local Water Monitoring, Education Issues Move To Front Burner

Several organizations are pulling together to protect and monitor water resources in PotterCounty. Last week, an organizational meeting was held for a committee being assembled by the Potter County Commissioners to coordinate volunteer water monitoring and to serve as a liaison with private groups, as well as county, state and federal agencies. Serving on the steering committee are representatives of Cooperative Extension, Trout Unlimited, Potter County Conservation District, watershed protection organizations, Potter County Planning Commission, Potter County Education Council, and certified water well driller Judy Bear,shown here with her model of water migration routes.

Among the committee’s initial goals are:

  • obtaining funding to support water monitoring and recordkeeping,
  • pinpointing areas of PotterCounty where water resources may be threatened,
  • identifying areas where regulations need to be updated to afford greater protection of water resources,
  • educating the public.

Later, a public meeting was held to recruit volunteers to monitor waterways for degradation from gas drilling or other activities.Loren Fitzgerald from Trout Unlimited (TU) planned the meeting and laid out organizational options. TU representatives Pete Ryan and Bob Volkmar discussed the chapter’s work with water monitoring.More volunteers are needed. Volkmar emphasized that state agencies do not have sufficient staffs or budgets to effectively monitor waterways or enforce regulations.Laurie Barr from Roulette detailed results of her investigation into gas drilling activity and suggested websites where violations and other information can be found.

Environmental Issues

State’s New Gas Well Regulations Take Effect

New regulations have taken effect in Pennsylvaniafor construction and operation of gas wells. The tougher standards are designed to protectwater supplies. If a well is not properly cased and cemented, natural gas in subsurface formations may potentially migrate from the wellbore through bedrock and soil. This stray gas may adversely affect water supplies and accumulate in, or adjacent to, structures. Pennsylvania’s new regulations cover drilling, casing, cement, testing, monitoring and plugging of gas wells, as well as pressure barriers.

Forum On Fracturing Emphasizes Environmental Issues

U.S. Interior Secretary Ken Salazar recently hosted a forum on hydraulic fracturing and related issues. Among those attending was Potter County Commissioner Paul Heimel. Salazar said shale gas will help the U.S. meet ambitious goals for cutting carbon emissions while strengthening energy independence. He pledged the federal government's continued study of hydraulic fracturing.Trout Unlimited's Steve Moyer said irresponsible drilling could have a devastating impact on water and land resources. He called for strict control of water withdrawals, road construction and stream crossings, recycling of flowback water, and avoidance of drilling in riparian areas and flood plains. "Shale gas production can occur without any harmful impact if these protective measures are taken," Moyer added.Sherri Stuewer of Exxon Mobil warned that federal regulations that supersede state standards could stall development of shale gas and remove local flexibility. "Best practices sometimes depend on customizing them to the site," Stuewer said.Peter Lehner, director of the Natural Resources Defense Council, countered that strong regulations and enforcement are necessary. "Even if 'most' operators do it right all the time, the consequences of doing it wrong even once are unacceptable," Lehner said.

EPA Study Details Leaking Gas Impact On Environment

New EPA research doubles previous estimates for the amount of methane gas that leaks from loose pipe fittings and is vented from wells. Billions of cubic feet of greenhouse gasesseep from loose pipe valves or are vented intentionally, according to EPA. The gas industry would like to see new power plants and vehicles built to run on gas and other plans to increase U.S.reliance on gas. Environmental groups say data on methane emissions and their warming affect should be locked down before major policy decisions are made.

DEP/DCNR Advisory Groups Issue Recommendations

Two citizens' groups have presented reports on issues related to shale gas development in Pennsylvania. Advisory councils appointed by the Dept. of Environmental Protection and. Dept. of Conservation and Natural Resources held regional hearings and met with industry representatives and agency staff. These resulted in a list of issues that the two agencies will evaluate:

  • Bonding: The legal requirement under the Oil and Gas Act is inadequate and needs to be updated.
  • Water Wells: 1. DEP needs to evaluate the validity/adequacy of the 1,000-foot presumption of liability in the Oil and Gas Law; 2. DEP is creating a list of parameters for water well testing so that homeowners know what to test for and what it will cost; 3. the DEP advisory council continues to advocate for passage of new water well construction standards to reduce the impacts of gas migration on homeowner’s water supplies.
  • Staff: Both agencies need to regularly evaluate the sufficiency of staff needed to properly manage Marcellus Shale development.
  • Forests: Bureau of Forestry needs to monitor the impact of Marcellus development on the integrity of the state forest resource. The state forest has been certified for sustainability, which could be negatively impacted by the scope of this development.
  • Gas Development Infrastructure (e.g., gathering lines, transmission lines, water impoundments, compressor stations, roads, pipelines and other developments). Companies should pursue a comprehensive local and regional coordinated approach to this development. This includes coordination of efforts to minimize forest fragmentation, as well as co-location and/or sharing of infrastructure such as pipelines, compressor stations, roads and water impoundments.
  • Severance Tax/Impact Fee: A significant portion of the proceeds should be dedicated to land, water and wildlife conservation and to local governments impacted by gas development.
  • Unplugged Wells: Companies should berequired to locate and plug orphan and abandoned wells in their area of activity; DEP’s orphan well plugging program needs to be adequately funded.

"The Marcellus Play is an enormous opportunity if developed responsibly," the councils concluded. "It has the potential to be disastrous, if not. Companies must do their absolute best to avoid/minimize impacts. Companies need to work together to ensure the best environmental outcomes."

Emergency Services/Public Safety

Well Specialists On Call 24/7 In Clearfield, Canton

Two specialized response teams – one in Clearfield and the other in Canton -- stand ready to spring into action in the event of a serious emergency at a natural gas well. At the same time, firefighters, emergency medical services personnel, emergency management coordinators and police officers in the region have been attending training sessions. Wild Well Control (WWC), a Texas firm, has set up a base of operations at the Clearfield-LawrenceTownshipAirport. Two flatbed semi-trailers can dispatch at a moment’s notice. Each carries 4,000-gallon-per-minute pumps, a 500-gallon fuel tank, a response container, an air compressor and monitor sheds. All of the WWC employees have at least 20 years of experience. Cudd Well Control, based in Houston, has opened a branch in Canton, BradfordCounty. Experts are trained to deal with catastrophic events at natural gas wells and are available 24/7. Equipment at Cudd’s new facility include a 2,000-gallon-per-minute pump; heat shields to protect responders; pneumatic cutting devices that clamp onto damaged pipe to allow responders to cut it at a safe distance; and a “hot tap,” which will drill a hole into damaged pipe to either relieve pressure or allow responders to pump material into the well to kill it. Local volunteer responders are being encouraged to establish a plan for well site incidents, taking into account safety zones, evacuations and many other aspects.

Local Training For First Responders Slated March 2

A free training program to prepare first responders and community leaders for emergency and public safety incidents at natural gas wells is scheduled for Wednesday, March 2, at the Kettle Creek Hose Company firehall in Cross Fork from 6-10 pm. PennsylvaniaStateFireAcademy is bringing the program to the area. The natural gas industry is supporting the initiative. It will cover a host of topics, from the basics of well construction and production, to what to expect upon arriving at a well site and how to coordinate with on-site industry personnel. More information is available from Barry Fritzinger of Kettle Creek Hose Company at 570-923-6029 (days), 570-923-0462 (evenings) or .

Educational Issues

Natural Gas Expo: Cameron-McKean-Potter March 10-11

Natural Gas Expo: Cameron-McKean-Potter is scheduled March 10, from 10 am to 6 pm, and March 11, from 9 to noon, at Pitt-Bradford. Educational seminars will take place on both days. More details are available at a website, or by calling (814) 260-5625.The event is especially geared toward business operators who are interested in becoming part of this emerging industry, but many of the programs and exhibits will have more general appeal.

New Series Of Natural Gas Webinars Continues

PennState's MarcellusCenter for Outreach and Research continues another round of natural gas webinars, available at

One-hour webinars will be held at 1 pm on the following dates:

  • Feb. 16, 2011: "Dealing with Gas Tax Issues: What You Need to Know." Presenter: Mike Jacobson, PennStateSchool of Forest Resources.
  • Mar. 17, 2011: "Gas Wells and Emergency Response and Management."Presenter: Craig Konkle, Lycoming Co. Emergency Management.

Previous webinars covering topics such as water use and quality, gas-leasing and implications for local communities can be viewed at the same website listed above.

Rural Road Maintenance Seminar March 8 In Smethport

A specialized course on environmentally sensitive maintenance of dirt and gravel roads will be held in Smethport on March 8. Content will be of interest to anyone who maintains unpaved roads, including municipalities, oil and gas operators, timber harvesters, landowners, and others. McKean County Conservation Districtis hosting the session from 7:30 am to 4 pmat the Courtyard Restaurant in Smethport. Sponsors include the State Conservation Commission and the PennStateCenter for Dirt and Gravel Road Studies.Emphasis will be on practices which reduce maintenance costs while reducing sediment pollution. A small sampling of what the course will cover includes the impact of natural systems on roads, the influences of right-of-ways, management of roadside vegetation, ditch outlets, road and stream interfaces, and use of driving surface aggregates.A fee of $15 covers course materials, refreshments and lunch. For more information or to register, call 887-4001 by March 1.

Miscellaneous News

East Resources/Shell Speaker Presents Update

A representative of the world’s second-biggest energy company painted a rosy picture of the gas industry at the Potter County Natural Gas Task Force’s January meeting.Jack Showers (left), director of regional affairs for East Resources/Royal Dutch Shell, spotlighted the latest developments in Marcellus Shale gas drilling.Entry of Shell into the Appalachian Basin sent a loud message about its economic viability. Shell paid $4.7 billion to acquire approximately 650,000 acres of East Resources rights in Pennsylvania, West Virginia and New York. East has drilled two Marcellus wells in PotterCounty so far and is pleased with the results. Once pipelines and other infrastructure are in place, the gas industry is going to explode in the region with hundreds of wells being drilled, Showers said. Production will rapidly rise and job opportunities will abound, from field workers, welders and truck drivers to professional careers such as biology, chemistry, geology, accounting, law and at least four engineering tracks — mechanical, electrical, environmental and petroleum.The Utica Shale formation, some 2,000 feet deeper, also contains rich gas deposits. Additionally, there are about 25 other shale formations in the country from which gas is being produced. Showers said natural gas will increasingly be used to generate electricity and to power motor vehicles, reducing consumption of coal and oil while making American more energy-independent.He expressed confidence that Pennsylvania’s water supplies are plentiful enough to meet the industry’s needs and pointed out that most gas producers are now recycling water used for hydrofracturing and trucking the residual waste out of state for deep underground injection. One audience member pointed out that water withdrawals from small headwaters streams can have a more significant impact and that — unlike the Susquehanna and Delaware river basins — the Allegheny river basin is not regulated by a multi-state compact.

Law Firm Program In Galeton Attracts More Than 150

More than 150 people attended a meeting held in Galeton by a New York law firm invited by citizens who are concerned about the environmental implications of gas drilling. Julia LeMense, an attorney with Weitz Luxenberg, shared results of the firm’s initial assessment of air and water pollution issues. She also distributed a questionnaire soliciting information on medical symptoms and on property affected by drilling. Ms. LeMense cautioned that litigation is not necessarily the best approach for addressing environmental issues. She said that community-building is an important part of protecting resources, and she referred the audience to numerous groups that are working to protect public health and the environment.

Legislature Reckoning With Growth Of Gas Industry

An expert on law and public policy spotlighted how the Pa. General Assembly has been trying to adjust state laws to keep up with the rapidly growing Marcellus Shale natural gas industry.

Ross Pifer (left), director of the Agricultural Law Resource and ReferenceCenter at PennState, detailed a busy 2010 and forecasted several issues that will come before the legislature this year.Mary Anne Heston, a member of the Potter County Natural Gas Task Force Public Education Committee, attended Pifer's webinar and reported these details:

Enacted in the 2009-2010 Session

  • Marcellus Shale Reporting Requirements (SB 297): Production data for Marcellus wells must be reported semi-annually on Aug. 15 and Feb. 15.
  • Clean and Green Amendment (SB 298):The bill stipulates that rollback taxes assessed on land previously enrolled be imposed only on the land developed for gas activity.Lands excluded from the rollback are those developed for pipelines, those for which the surface owner does not own the mineral rights, and those developed for pipeline storage.
  • Coal Bed Methane Review Board established (HB 1847): This bill, though not directly addressing gas development, may have implications for split estate issues.It establishes the procedure for consideration of objections to coal bed development plans from surface owners without mineral rights.It establishes a three-member board appointed by the governor to resolve objections.Cases that are not successfully resolved are referred to a Court of Appeals.
  • Severance Tax (SB 1042):Both the Senate and House agreed to pass a severance tax by Oct. 1, 2010.However, the tax was not enacted.

Other legislation considered but not passed in2009-2010:

  • Surface Owner Protection Act (HB 1155), which would have provided surface owners who do not own mineral rights the right to negotiate surface use and compensation.
  • Amendment of Dormant Oil and Gas Act (HB 2266), which would have provided for mineral estate abandonment and for preservation of interests in oil and gas.
  • Water Supply Protection, which would change the current presumption of a drilling company’sresponsibility from within 1,000 feet and six months of drilling to within 2,000 feet and 24 months of drilling.

Legislative issues for the 2011-2012 session:

  • Local impact fee, probably in place of a severance tax..
  • Expanded protection for water supplies and surface owners.
  • Modernization of the Pennsylvania Oil and Gas Act.
  • Fair/Forced Pooling.Pooling may be the best way to ensure that the least number of wells are drilled to effectively extract the gas.However, real issues remain, such as how to fairly compensate landowners, how to honor the rights of private ownership, and how to assess the impact on the lease market.

Pifer referred participants to other resources at

PotterCountyStateForestLand Tour To Be Rescheduled

Slippery driving conditions forced postponementa scheduled Feb. 12 trip into state forest land in PotterCounty to view the impact of natural gas wells. A new date will be announced, at which time a Pa. Bureau of Forestry representative will share details on the state’s leasing policies and oversight of industry activities on public lands. For more information, contact Melissa Troutman at .

During the most recent round of state forest land leasing, Seneca Resources of Houstonwas high bidder on 7,440 acres between Denton Hill and Fox Hill, offering an initial bonus payment of $23.3 million. Penn Virginia Corporation submitted the high bid of $13.9 million on 3,640 acres in Eulalia and Roulette townships. The state will also receive 18 percent of production royalties from both leases.Other state forest land in PotterCounty has been leased, as have some tracts of state game lands. Additionally, subsurface rights on roughly half of the more than 250,000 acres of state-owned land in the county are privately owned and portions of those will be subject to drilling.