BY BORYS KRAWCZENIUK (STAFF WRITER)
Published: July 29, 2010

A provision to require disclosure of all chemicals used in fracturing Marcellus Shale to extract natural gas could wind up as part of the scaled-down national energy bill the U.S. Senate might consider soon.

Sen. Bob Casey said he convinced Senate Majority Leader Harry Reid to fold disclosure provisions of his Fracturing Responsibility and Awareness of Chemicals Act into the energy bill.

“It’s a great breakthrough,” he said. “It’s a substantial step forward. … It gives people information they wouldn’t have otherwise about what’s happening underneath their property.”

Senate leaders are hoping to pass the bill before the summer recess Aug. 6, after realizing they did not have the votes to pass a more comprehensive energy bill. Even if the smaller energy bill gets through the Senate, the House would have to pass it before President Barack Obama can sign it. Neither is assured.

Industry groups said the fracturing chemicals are already well known to the public and state regulators, and further disclosure would harm the development of natural gas.

“We fundamentally believe that regulation of hydraulic fracturing is best addressed at the state level, and we have been unable to reach a consensus with congressional advocates on how this program would be overseen by the federal government,” America’s Natural Gas Alliance said in a statement.

Congress and the federal Environmental Protection Agency are studying whether the chemicals used in hydraulic fracturing of shale contaminate drinking water.

Energy In Depth, an industry group, argues regulation should be left to states, which “have effectively regulated hydraulic fracturing for over 40 years with no confirmed incidents of groundwater contamination associated with (fracturing) activities.”

At public meetings on gas drilling, local residents regularly dispute the claim.

Though the industry argues the chemicals it uses are well known, a Times-Tribune investigation determined that DEP scientists who analyzed spilled fracturing chemicals at a Susquehanna County well site in September found 10 compounds never disclosed on the drilling contractor’s material safety data sheet.

None of the 10 was included in a state Department of Environmental Protection list of chemicals used in fracturing, a list developed by the industry. When DEP posted a new list earlier this month, none of the 10 was on it.

Mr. Casey dismissed the industry criticism.

“That’s why I called it a substantial step forward, if they’re attacking it,” he said. “If they’re feeling that this is giving information to people that they are reluctant to disclose, that’s why I think it’s an important change, and it’s progress on an issue that some would have thought would have taken years to get done.”

Mr. Casey’s legislation would amend the federal Emergency Planning and Community Right-to-Know Act, which requires employers to disclose what hazardous chemicals they use.

The amendments would require:

- Well-drilling operators to disclose to state regulators and the public a list of chemicals used in fracturing, commonly known as fracking. The requirement would cover chemical constituents but not chemical formulas whose manufacturers are allowed by law to keep the formulas secret, according to Mr. Casey’s office.

- Disclosure to be specific to each well.

- Disclosure of secret formulas or chemical constituents to doctors or nurses treating a contamination victim in an emergency.

- An end to thresholds for reporting chemicals normally required by law so all amounts of chemicals are reported.

In an analysis of the legislation, Energy In Depth said it would “chill” investment in innovations in fracturing and place “unrealistic burdens” on natural gas producers by requiring them to disclose secret chemical compounds whose composition they legally can know nothing about.

In an interview, DEP Secretary John Hanger said he welcomed the federal legislation, argued Pennsylvania already requires more disclosure than his bill and believes companies should disclose the volume and mix of chemicals they use in fracking.

Contact the writer: bkrawczeniuk@timesshamrock.com

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Copyright:  The Scranton Times

BY STEVE McCONNELL (STAFF WRITER)
Published: July 28, 2010

A natural gas drilling company has filed a federal lawsuit against Damascus Twp. in Wayne County, just days after township officials issued a “cease-and-desist” work order on one of the company’s exploratory wells because it didn’t obtain a permit.

The suit, filed July 6 by a subsidiary of Houston-based Newfield Exploration Co., claims that on July 2 township officials “took administrative action to stop the drilling project” by issuing a stop-work order. It further states the township does not have any regulatory authority to do so through its zoning ordinance.

The suit alleges that state law, in particular the state Oil and Gas Act, which is enforced by the state Department of Environmental Protection, supercedes all local authority to regulate or require any special provisions upon natural gas exploration and development.

Jeffrey R. Dexter, board of supervisors chairman, said Damascus wanted the company to submit a zoning application and did not want to control how the 41-acre prospective natural gas exploration site would be developed or any aspect of the drilling process. “We’re saying come in and get a zoning permit for construction of the well pad. … No different from any other” new construction, Mr. Dexter said.

The lawsuit, Mr. Dexter said, makes the township “sound like we’re putting them out of business.

“We weren’t looking for a fight. We still don’t understand what we’re doing in federal court,” he said. “We know that they are much bigger than we are.”

The lawsuit claims the township’s zoning ordinance contains a “catch-all” provision that can deny a company a zoning permit, and therefore the right to develop, based on any “environmental, community and other public health” impacts that may be caused by a proposed development.

The suit also seeks reimbursement for legal costs, demands a jury trial, and asks the court to quash the cease and desist work order.

Newfield spokesman Keith Schmidt declined to comment on the pending litigation, which was filed by international law firm K&L Gates LLP in the federal District Court for the Middle District of Pennsylvania. Efforts to reach George A. Bibikos, a Harrisburg attorney listed in the lawsuit and affiliated with the firm, were unsuccessful.

Mr. Schmidt said the company will still drill the exploratory well called into question in the lawsuit, and the company further intends to drill a second exploratory well in Damascus.

Newfield and New York City-based Hess Corp. have leased approximately 100,000 acres of land north of Honesdale in Wayne County in a joint natural gas development partnership and completed their first exploratory well in Manchester Twp. this month. Only 10 exploratory wells in Wayne County can move forward following last month’s Delaware River Basin Commission’s moratorium over gas drilling in the watershed while the group develops its own regulations, said commission spokesman Clarke Rupert.

Mr. Dexter said the township issued another cease and desist work order on Sunday, which levies a fine of up to $500 a day if work is not stopped, on the company’s second exploratory well since it did not obtain zoning approval.

The federal lawsuit comes amid a handful of recent opinions and decisions handed down by state courts that are beginning to provide a somewhat clearer picture over how much local authority a municipality can have over natural gas development, said Ross H. Pifer, director of the Agricultural Law Resource and Reference Center at Penn State University Dickinson School of Law.

“This is certainly an issue that the industry is looking at … because we don’t have a lot of guidance,” Mr. Pifer said, adding that he is not aware of any federal rulings that address the use of a zoning ordinance to regulate natural gas operations in the state.

The state Supreme Court issued two rulings on the matter last February that provided some definition of how much leeway a municipality may have in developing an ordinance or enforcing existing zoning laws over the industry.

The legal question bandied about in the courts comes down to whether a municipality’s ordinance is preempted by state law, in particular the state Oil and Gas Act which is the overarching regulatory framework the industry must abide by.

Mr. Pifer said Commonwealth Court also ruled last week that Fayette County could impose certain conditions under its zoning laws, including one addressing how far a natural gas well can be located away from a residence – even though that is already defined in state law.

“There are still a lot of questions that remain,” he said. “A federal court is going to apply existing state law, but there are a lot of specific situations that have not yet been addressed by Pennsylvania courts.”

Contact the writer: smcconnell@timesshamrock.com

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Copyright:  The Scranton Times

ISSUE: Sam passed away and left a sizable gun collection to his three sons. Sam failed to take into consideration that his sons had been convicted of aggravated assault twenty years before down in Florida. Will Sam’s executor be able to carry out Sam’s wishes?

ANSWER: No. Pennsylvania Uniform Fire Arms Act establishes that persons are not allowed to possess, use, manufacture, control, sell or transfer fire arms if they have been convicted of an offense that includes aggravated assault. Other offenses that prevent one from obtaining guns include arson, aggravated indecent assault, burglary, and many others. Sam’s sons will have to attempt to get a restoration of their fire arms rights which will not be available to them for many years.

Disclaimer: The above article is for instructive purposes only and each case is fact sensitive. Consultation with an attorney should be obtained instead of reliance upon the legal issues discussed in this column.

By Elizabeth Skrapits (Staff Writer)
Published: July 26, 2010

HARVEYS LAKE – The natural gas company planning two exploratory natural gas wells in Noxen is steering clear of nearby Harveys Lake.

“Carrizo has no intention of drilling under Harveys Lake or anywhere near Harveys Lake,” Carrizo Marcellus LLC spokesman Phillip Corey said. “Our first well, the closest point to the lake as the crow flies, is almost 3 miles away.”

The company leased more than 3,000 acres of Sterling Farms, property belonging to the Sordoni family. While most of the property is in Noxen Township, some is in Harveys Lake Borough, he said. However, the company does not have rights to drill under Harveys Lake and doesn’t want to, anyway, Corey said.

“You can’t just go out there to drop a hole wherever you please,” he said.

Harveys Lake resident Guy Giordano, who is vocal about keeping contaminants out of the lake, said it’s good news that Carrizo is not drilling in the borough – but it’s still a little too close for him.

“That still doesn’t give me a lot of comfort. Thirty miles, yeah, but 3 miles, I’m not so sure,” he said.

Hydraulic fracturing, commonly called “fracking,” involves blasting millions of gallons of chemical-treated water thousands of feet underground to break up the shale and release the natural gas.

The fact that some of these chemicals are not disclosed bothers Giordano.

“Why can’t they use something non-toxic?” he asked. “I can’t believe the government would let anyone put anything in the ground that’s secret.”

State law allows natural gas companies to drill up to 100 feet away from a water source. State Rep. Karen Boback, R-Harveys Lake, wants to expand the buffer to 2,500 feet away from drinking water sources, as well as lakes and other bodies of water that are governed by boroughs or second-class townships. She also wants to prohibit drilling beneath them.

Boback has also signed on as a co-sponsor to state Rep. Phyllis Mundy’s bill calling for a one-year moratorium on natural gas drilling in Pennsylvania.

Corey said Carrizo will test the drinking water of residents around the drilling site, as required in the lease, which also calls for staying at least 500 feet away from any structure or water source.

He said Carrizo has not decided which direction, if at all, to drill horizontally. The company might just stick with a vertical well to see what’s there, he said.

“We’re going to play this very conservatively,” Corey said.

Giordano stressed that he does not oppose natural gas drilling.

“I’m glad these people got the money for these drilling leases, God bless ‘em. They deserve it,” he said. “But I wish they didn’t have to drill. If it’s rural, it’s OK, the risk is not that great. But when you’re talking about a densely populated area, it’s not worth it. I don’t see how they can take the risk.”

Ceasetown connection

Giordano pulled his minivan to the side of the road to get a better look at the Ceasetown Dam, slightly misty in the summer rain and surrounded by lush green foliage.

This is one of the main reasons he worries about Harveys Lake becoming contaminated.

“A few years ago I had a sample of lake water tested at the Kirby Health Center,” Giordano confessed. “It passed as drinking water.”

Harveys Lake is the source of Harveys Creek. Pennsylvania American Water Co. spokesman Terry Maenza said the company uses Harveys Creek as a backup water supply for the Ceasetown Reservoir. It isn’t used often but it’s there for emergencies, he said.

The Ceasetown Reservoir in Lehman Township serves about 70,000 people in all or parts of Ashley, Courtdale, Conyngham Township, Edwardsville, Hanover Township, Hunlock Township, Larksville, Nanticoke, Newport Township, Plymouth, Plymouth Township, Pringle, Salem Township, Shickshinny, Wilkes-Barre and Wilkes-Barre Township.

“We have done some sampling from Harveys Creek to get some baseline data, so we have that information on file if and when any drilling does take place in the future,” Maenza said.

The Susquehanna River Basin Commission, which regulates large water withdrawals from sources within the river basin, has not issued permits for any natural gas companies to take water from anywhere in Luzerne County, including the Ceasetown or Huntsville reservoirs.

Besides permits from the commission, “There are other permits they would have to get through us before they could start taking our water,” Maenza said.

Last week, there were water tankers at the Huntsville Reservoir, but they were removing sludge, Maenza said. When the filters at the water treatment centers are backwashed, the sludge goes into a lagoon, he explained. About 95 percent of it is recycled, including for agricultural use, he said.

When it comes to natural gas drilling, Maenza said Pennsylvania American Water officials are being vigilant, talking to the state Department of Environmental Protection about permits, keeping in constant touch with legislators including Boback, Mundy, and state Sen. Lisa Baker, R-Lehman Township.

Maenza said the company has also been in contact with Encana Oil & Gas USA Inc., which started site preparations for a second exploratory natural gas well on Zosh Road in Lake Township on Wednesday, the same day Encana began drilling its first well in Fairmount Township.

“Nobody’s more concerned than us,” Maenza said. “This is our business. Water quality is what we rely on. We don’t want anything to put our water supply in jeopardy.”

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizens Voice

By JOE MANDAK Associated Press Writer

INDIANOLA, Pa. (AP) — A natural gas well  where welders were believed to be working exploded Friday, killing two people and sparking a fire that spewed black smoke for hours.

The blast happened around 9:50 a.m. in a remote, wooded area of Indiana Township, northeast of Pittsburgh, police said. Firefighters doused the resulting fire with foam, and part of the blaze was still burning about three hours after the explosion.

The cause wasn’t yet known, but state officials believe “people were welding at the site and there was an explosion and the well caught fire,” said Helen Humphries, a spokeswoman for the state Department of Environmental Protection.

“Why they were welding or what caused the explosion, I don’t know yet,” she said.

The well, dubbed Murray Heirs No. 6, is a shallow well, about 3,500 feet deep, and was drilled in May 2008, Humphries said. It was considered to be a producing well, she said.

The department won’t be able to determine the environmental impact until after the fire is extinguished, Humphries said.

The well is owned by Huntley & Huntley, a company that says it operates more than 350 gas wells in and around Pittsburgh and is also active in Oklahoma. The company confirmed its workers had arrived at the well but a spokeswoman said she had no further information.

Humphries said Huntley & Huntley does not have a record of violations.

The accident is the latest misfortune to strike the region’s burgeoning natural gas industry.

Last month, a well in north-central Pennsylvania without proper pressure-control systems exploded as a crew was preparing to hook it up to a pipeline. No one was injured.

A few days later, seven people were injured in a rig explosion in West Virginia’s Northern Panhandle when the drilling crew struck a pocket of methane gas while sinking a natural gas well through an abandoned coal mine.

In northeastern Pennsylvania, state environmental officials said construction flaws in gas wells were responsible for allowing gas to seep into the area’s groundwater.

DEP Secretary John Hanger said in an e-mail message that the well where the accident occurred Friday is not part of the lucrative Marcellus Shale, a rock formation that drillers have begun tapping only recently.

Associated Press writer Marc Levy in Harrisburg, Pa., contributed to this report.

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Copyright:  The Times Leader

By Elizabeth Skrapits (Staff Writer)
Published: July 22, 2010

FAIRMOUNT TWP. – In one Luzerne County municipality, a natural gas drilling rig towers in the background as a guard keeps vigil against unauthorized personnel at the gate that is kept open to allow trucks to pass in and out of the site.

In another Luzerne County municipality a few miles away, new electrified fencing surrounds a meadow and engineers’ trucks kick up dust along the freshly re-graveled road.

On Wednesday, Encana Oil & Gas USA Inc. started drilling the county’s first exploratory natural gas well in Fairmount Township, and also began site preparation for a second well in Lake Township.

Encana spokeswoman Wendy Wiedenbeck said the drilling components have arrived and operations are moving forward on the site owned by Edward Buda in Fairmount Township, on Route 118 behind the Ricketts Glen Hotel. The well will be drilled about 7,000 feet deep, then go out 2,500 to 5,000 feet horizontally.

Asked what motorists can anticipate near the site, Wiedenbeck said, “We would expect some additional truck traffic. There is signage on the road leading up to and away from the location.”

Noise and dust are side effects of the drilling process, which it is estimated will take about 30 days, Wiedenbeck said. Encana will monitor and mitigate both the dust and the noise at the site, and the company is working closely with Fairmount Township officials, she said.

About a quarter of a mile down Route 118 from the drilling site, Good’s Campground owner Frank Carroll was cutting firewood Wednesday afternoon. He noticed there has been a lot of truck traffic at the drill pad.

“Crazy thing is, all I can hear is the backup of the trucks – you know, beep-beep-beep,” Carroll said as he piled the cut wood in the bed of his pickup truck and pulled a blue tarp over it. “It doesn’t bother me, but I can hear it.”

Carroll says he wakes early and sleeps soundly, so he doesn’t expect the 24-hour-a-day, seven-days-a-week drilling operation to disturb him.

“I’d sleep through the end of the world,” he joked.

One thing does bother Carroll: the speculation. Will the well pay off in royalties to landowners who leased mineral rights?

“Everybody’s been talking about it for two years, how they’re going to get rich or they’re going to get nothing,” Carroll said. “And they’re still talking about it. They all think they’re going to be rich – and they can’t all be rich.”

As soon as drilling is complete in Fairmount Township, the rig, from Horizontal Well Drillers of Purcell, Okla., will be taken to the Lake Township site.

“Efficient work operations is to go from one area to the other,” Wiedenbeck said.

In Lake Township, heavy truck traffic warning signs are in place on Meeker, Outlet and other roads to be traveled by the approximately 2,100 total trucks it will take to create the drilling pad, drill the well and bring in the roughly six million gallons of water needed for hydraulic fracturing.

Robert and Debra Anderson live so close to the Zosh Road site that will be transformed into a natural gas drilling pad they could throw a baseball from the front yard of their trailer home and easily have it land over the electrified wire fence surrounding the meadow belonging to Paul and Amy Salansky.

The Andersons love the area, which is full of wildlife: “I have turkeys, I have deer, I have foxes, I have bear … I even have ducks in my pond,” Debra Anderson said.

Things were quiet on Wednesday afternoon, but in the morning, there was a “big meeting” at the drill pad site, Robert Anderson said.

Just then a pair of engineers drove by in a Borton-Lawson truck, stirring dust from the road as they passed.

But not much dust. The Andersons are pleased with the work Lake Township’s three-man road crew has done on the dirt-and-gravel roads around the site: enlarging them, smoothing them, lining the drainage ditches with rock. Debra Anderson declared she hasn’t seen the roads look that good in the 15 years they’ve lived in the township. Encana’s paying for the road maintenance, Robert Anderson said.

Lake Township will provide dust control with calcium chloride applications on the roads, he said. But what about the noise and light when drilling starts?

“We’ll deal with it. You can’t stop progress,” Robert Anderson said.

He called Encana a “reputable company, not like the one that’s up in Dimock,” and said its representatives are good about telling residents what’s going on. He said he attended the last Lake Township meeting, at which dozens of natural gas drilling opponents showed up, and he said they should go to the company for information, not the supervisors.

“People that go to the Lake Township meetings should be Lake Township residents,” Robert Anderson said. “It’s no one else’s concern.”

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizens Voice

By Elizabeth Skrapits (Staff Writer)
Published: July 21, 2010

HARVEYS LAKE – If the state Department of Environmental Protection can make borough officials do something about sewage pollution in the lake, why can’t it step in to prevent potential contamination from natural gas drilling?

That was the argument state Rep. Karen Boback, R-Harveys Lake, approached council with Tuesday. She asked borough officials to meet with DEP and the state fish commission to discuss a one-year moratorium on drilling near the lake.

Her suggestion was greeted with applause from the approximately 80 people who filled council chambers. Council members were open to the idea of contacting the state agencies.

“As far as I’m concerned, the precedent is set,” Boback said. “In my letter to (DEP Secretary John) Hanger, I put it was due to the infiltration problems during storm events. Our concern is the potential contamination with fracking fluids, and if that’s not a legitimate argument, I don’t know what is.”

Hydraulic fracturing or “fracking” involves blasting millions of gallons of chemical-treated water thousands of feet underground to break up the shale rock and release the natural gas.

Because of problems with raw sewage flowing into the lake during heavy rains, DEP cited the borough and ordered its officials to come up with a corrective action plan. As a result, the General Municipal Authority of Harveys Lake put a DEP-approved voluntary moratorium on new sewer connections in July 2003 until inflow and infiltration into the system was cut back. DEP allowed the authority to relax the moratorium in 2006.

“If they’re talking about infiltration, what about fracking water spewing all over the place?” Boback said, referring to a recent well blowout in Clearfield County.

Boback said she is writing legislation similar to what she introduced to protect drinking water sources, such as the Huntsville and Ceasetown reservoirs. DEP allows natural gas drilling up to 100 feet away from bodies of water. Boback wants that changed to 2,500 feet.

She also wants to prohibit drilling beneath drinking water sources and lakes, such as Harveys Lake, that are governed by a borough or second-class township.

Resident Michelle Boice urged council to take a “strong, proactive stance” with DEP on the issue.

“My concern is that we should be working closely with DEP as a government, and ask the tough questions as to why, when they have been a strong presence in this borough for more than 40 years, they are not doing something about controlling where these drilling permits are being issued,” she said. “Right over the hill, a half mile at Alderson, a drilling permit has been issued.”

Boice was referring to the Sordoni family’s Sterling Farms, where Carrizo Marcellus LLC plans to drill one of two exploratory wells in the Noxen area. She also noted so far 300 acres in Harveys Lake Borough have been leased to gas companies.

Councilman Ryan Doughton said gas companies can lease anywhere. However, zoning restricts where they can drill.

The only place where mineral extraction is allowed in the borough is in the small manufacturing zone on the northern side of the Old Lake Road, Doughton said. Natural gas companies seeking to drill in other parts of the borough would need a zoning hearing for a conditional use permit, he said.

According to resident Guy Giordano, the underground-spring-fed Harveys Lake is a source of the Ceasetown Reservoir, where thousands of people in the Wyoming Valley get their drinking water.

“Council needs to take a stronger position on this and ask the state for help, because this not only affects our wells around Harveys Lake, it affects the drinking water for the entire Wyoming Valley,” he said.

Councilman Rich Williams III said he has been studying the state Oil & Gas Act, trying to find out what council as a local government can do – state law supersedes local government.

“Please don’t think what you say is falling on deaf ears, because I practically use this thing for a pillow,” he told residents.

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizen’s Voice

By Elizabeth Skrapits (Staff Writer)
Published: July 20, 2010

LEHMAN TWP. – The company drilling the Back Mountain’s first exploratory natural gas well will take care of township roads, but residents should be proactive in reporting problems, supervisors said Monday.

Encana Oil & Gas USA Inc. will start site preparation in August to drill an exploratory natural gas well at 203 Zosh Road in Lake Township, not far from the Lehman Township border.

During the process, trucks leaving the site will use Ide, Meeker and Slocum roads in Lehman Township to reach state Route 118. Encana has agreed to maintain the roads in equal or better condition during the drilling process, Supervisor Chairman David Sutton said in response to a question by resident Joseph Rutchauskas.

Encana paid for repaving the stone arch bridge on Slocum Road, but the township’s road department filled in all the potholes, Supervisor Douglas Ide said. But the company will take that over when work begins, he said.

“The day they start trucks, the maintenance is theirs for the duration,” Ide said.

Rutchauskas said work had already started, because Zosh Road – which becomes Ide Road in Lehman Township – was closed, so Encana should be responsible now. The supervisors disagreed.

Penn State’s Center for Dirt and Gravel Roads is overseeing a project with the Luzerne County Conservation District in which Encana is paying to strip and pave a 100-foot section of Zosh Road to see how it will hold up under heavy truck traffic.

According to plans filed with the Luzerne County planning and zoning department, Encana anticipates 16 to 18 weeks of traffic during which a total of approximately 2,100 trucks will travel on Lake and Lehman township roads: 200 during site preparation, 100 during the well drilling and 1,800 during the completion phase, when tankers will bring in the roughly 6 million gallons of water needed for hydraulic fracturing.

Encana has submitted a $956,844 bond to cover Outlet, Ide, Meeker Outlet and Slocum roads and the Slocum Road stone bridge. Township officials stressed Encana’s willingness to work with them.

“Anything we have billed Encana for, we have been paid within 30 days,” Treasurer Alvin Cragle said.

“They have been nothing but cooperative in everything we’ve asked them to do,” Sutton agreed.

Rutchauskas asked the supervisors to keep an eye on the drill site and coordinate with Lake Township so residents will be aware of issues like road closings.

Sutton said they would, but “we don’t have the resources to watch 24-7,” he said. He said residents need to be proactive and call if they see problems.

eskrapits@citizensvoice.com , 570-821-2072

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Copyright:  The Citizens Voice

By Patrick Sweet (Staff Writer)
Published: July 18, 2010

Harry Traver and Doug Brody glanced at each other, stood up and followed their neighbor’s lead.

“We didn’t drive all the way out here to make changes,” neighbor Joel Field responded when Carrizo Oil & Gas proposed amendments to the multimillion-dollar deal the three came to finalize.

Before the men made it very far, the company reeled them back to the bargaining table at its Pittsburgh office and hammered out a natural gas deal that includes the mineral rights to roughly 8,500 acres.

Willing to walk away from a deal worth more than $4 million – with the potential to become much more than $40 million – the three men exemplify the roughly 135 families they represent.

“Ninety-five percent of the people that signed live here,” Mr. Brody said. “I mean, this is our home … It’s been our group’s home for years and generations in some cases. We took our time and I think we did it right.”

Noxen is a community that came together and protested the closing of its post office on a bitter December morning. They embrace the camaraderie of a community that answered the call when its historic train station was threatened with demolition and raised money to protect it.

So, when gas company land agents approached residents in rural Noxen Twp., they demonstrated perhaps their greatest skill: their ability to unite.

Strength in numbers

Residents gathered under the pavilion behind Noxen United Methodist Church to formulate their plan of action. Across the street from his Whistle Pig Pumpkin Patch, Mr. Field found himself responsible for preserving the hopes of his family, friends and neighbors for a lucrative gas lease. The Noxen Area Gas Group was born.

“I kind of stood up and said, ‘Well, we ought to try this and we ought to try that,’ and everybody said, ‘OK. Great. Go do that,’” the 47-year-old farmer said.

“The responsibility was awesome.”

Over a 2½-year span, those responsibilities included innumerable hours of courthouse research, days studying the natural gas industry and negotiating deals that never succeeded. He even traveled to Houston to market the land that their farms, orchards and businesses have rested on for generations.

“We didn’t sign in the end, but for quite a long time we were dancing with Chief,” Mr. Field said. “The only reason we danced with Chief Oil and Gas was because we did courthouse research that revealed they had a couple thousand acres right contiguous to our block.”

Mr. Field didn’t realize exactly what he was getting himself into that day. He never thought he would have to hunt down the estranged brother of a neighboring family to gain his signature on their lease.

“It actually took a couple months to find the brother in California,” Mr. Field said. “They actually tracked him down through his union.”

Just as much, Mr. Traver and Mr. Brody – whom Mr. Field called upon to help organize the group – didn’t think they would be studying geology or helping to cover a several thousand dollar attorney bill.

Two days after the group signed the lease on July 10, Mr. Field, Mr. Traver and Mr. Brody sat down with Times Shamrock Newspapers for an exclusive interview about the experience. It was a complete about-face for the tight-lipped trio who refused to jeopardize any part of the deal before it was done.

Sitting at the wooden picnic table behind Mr. Field’s house, not far from the barn where the group held some of its meetings, the three men smiled as they shared stories.

“Getting up to speed on (natural gas) and keeping the people together was always, I guess, our biggest concern,” said Mr. Field.

“But the people stayed together and that’s what made it happen,” Mr. Traver added.

“Some of our principles in the very beginning, when we first started out, was to stick together as a family, as a community,” Mr. Field continued.

A boomtown again?

It’s not difficult to imagine why the community would unite so well. The tiny farming community has struggled to strengthen its economy ever since Mosser Tanning Co. left town in 1961.

The tannery employed enough people to force the construction of a second hotel and a row of houses nearby. It brought unprecedented life to Noxen’s economy that was once based on just more than a dozen farms and a handful of small businesses.

“When the tannery left, everything left with it,” Noxen resident Pearl Race said. “This was a booming town at one time.”

So, when a gas company comes and injects millions of dollars into a community that has seen half a century pass by since its industrial backbone collapsed, residents are more than excited.

“I think it’s a wonderful thing,” Ms. Race said. “It’s got to help financially; much more taxes, much more money.

“We’re going to finish paying our mortgage off.”

Carrizo paid each lessor $500 per acre up front with an additional $4,500 and 20 percent royalty if the company finds a decent supply of gas.

On the day of the signing, Mr. Traver said, an elderly woman who was having trouble getting by stepped up to the table, leased her roughly 1-acre property and took her check. Mr. Traver’s wife, Dawn, offered to take her to the bank.

The woman, Mr. Traver said, declined the offer.

“I want to keep it for a couple days just to look at it,” she said.

The possibility of a check more than 10 times the amount they just received, it seems, has most folks embracing the words of former Alaska Gov. Sarah Palin: “Drill, baby, drill.”

“We want production,” Mr. Field said. “We’re not just out there to get the bonus money. The value in this arrangement is in the royalty.”

Is the gas there?

The problem is companies aren’t quite sure the gas is there. Carrizo bought 2-D seismic data, senior landman Phillip Corey said, to get an idea of what they’d find.

“Based on what we see, it looks OK,” Mr. Corey said. “You’re trying to extrapolate a picture with three data points, though, when what you really need is a hundred.”

The uncertainty is why Carrizo didn’t pay the full $5,000 per acre up front. The company will drill two exploratory wells to test the area’s potential before cutting any more checks.

The Noxen group is split into southern and northern areas. Carrizo will drill one well in each area. If gas production is strong in the north but not the south, Carrizo will only have to pay northern landowners and vice versa.

Wooden stakes with neon flags tied to the tops mark the location of the northern well in Mr. Field’s pumpkin patch. The Sordoni family’s huge Sterling Farms property will host to the southern well.

The Sordoni property is one of a few properties directly abutting Harveys Lake. A provision in the lease prevents Carrizo from drilling within 500 feet of any structure or water source.

Still, some folks are concerned with what might unfold.

Noxen resident Viola Robbins, 72, has family in Dimock Twp., the poster-child community for environmental disasters caused by natural gas drilling. Thousands of gallons of potentially carcinogenic drilling fluid spilled just outside the town.

“They can’t do nothing,” Ms. Robbins said. “(The gas company) brought them water for drinking and cooking.”

Toxic water forced Ms. Robbins’ great-niece Andrea Ely and her family to move back in with her parents.

“I’m against it,” Ms. Robbins said. “Maybe it’s me. It might be a different story if I had lots of land for them to drill on.”

Still, many others have faith that Carrizo won’t make the same mistakes as Cabot Oil and Gas did in Dimock Twp.

“We all own farms down through here,” Mr. Traver said. “When these people say that they are worried about the water, they aren’t as worried as these guys, because that’s how they make their living.”

Contact the writer:

psweet@citizensvoice.com

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Copyright: The Scranton Times

By Robert Swift (Harrisburg Bureau Chief)
Published: July 17, 2010

HARRISBURG – A proposed rule to limit the concentration in waterways of a salt compound produced by the Marcellus Shale drilling process is being challenged.

The proposal by the state Department of Environmental Protection would align the standard for allowable chloride levels with national criteria used to protect freshwater plants and animals. The existing state chloride standard was developed mainly to protect water supplies.

Fish and aquatic life can’t survive when high levels of chloride are present. Chloride can corrode metals and affect the taste of food.

The rule is being considered by the Environmental Quality Board as environmentalists warn that increased drilling for natural gas in the Marcellus Shale formation will produce wastewater contributing high levels of chloride to streams and groundwater.

Chloride occurs naturally in ancient rock formations that once formed seabeds and are reached by the drilling for deep gas pockets.

But chloride can also contaminate waterways through agricultural runoff and discharges from industries and wastewater treatment plants.

The chloride rule is a separate issue from a broader rule to limit pollution in wastewater from natural gas drilling in the final stages of regulatory action. The rule gives drillers several options to treat wastewater.

Under the chloride rule, the DEP would follow toxicity data on the impact of chlorides on plant aquatic life set by the federal Environmental Protection Agency in a 1988 study.

Both environmental and industry groups argue the 1988 data are outdated.

A coalition of environmental groups, including Clean Water Action and the Delaware Riverkeeper Network, note that DEP has the authority to adopt standards more stringent than federal criteria. They want new studies on chloride contamination that focus on aquatic life in Pennsylvania.

The Pennsylvania Coal Association suggests other industries are adversely affected by the focus on Marcellus Shale drilling.

“The proposed regulation does have the potential to again sweep in a wide range of many other Pennsylvania industries, including the mining industry, who to date have not been generally required to sample for, or treat, chloride in their wastewater discharges,” the association said.

This week the state Independent Regulatory Review Commission urged DEP to rewrite the proposal.

“We agree that basing the new criteria on outdated data when more recent data is available is not reasonable,” the commissioners said.

Contact the writer: rswift@timesshamrock.com

View article here.

Copyright:  The Scranton Times