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News & Events on
Marcellus Shale

PAGE INDEX


EVENTS
 


  
CURIOUS HOW NATURAL GAS DRILLING COULD AFFECT YOU?

COME WATCH THE GRIPPING DOCUMENTARY

“SPLIT ESTATE”

WHERE: University of Pittsburgh, Barco Law Building - Room 109

WHEN: Thursday, March 18 @ 6:30pm
  

PITTSBURGH

Marcellus Shale Conference

Monday, May 3 - Tuesday, May 4, 2010
Duquesne University

The conference is being sponsored by the Pennsylvania Environmental Council and Duquesne University. This two-day forum is being held to bring together all who have a stake in the development of regulatory policy and decision-making in Marcellus shale gas production in Pennsylvania, including regulators, legislative leaders, industry officials, environmental organizations, the academic community, landowners and economic development agencies. The program will seek to identify the strategies and practices for the effective and sustainable development of this extraordinary resource.


NEWS

News Stories:

 

Gas Drilling Has ‘Massive Effect’

The Intelligencer. Wheeling News Register
By IAN HICKS Staff Writer

March 8, 2010

SILVER HILL - As Chesapeake Appalachia prepares to drill for Marcellus Shale natural gas in Oglebay Park, Wetzel County resident Raymond Renaud says those living near the proposed drilling sites may get far more than they bargained for.

Renaud, whose residence lies about a mile from a Chesapeake drilling well in the Silver Hill area, isn't talking about money. He's talking about the impact he and other members of the Wetzel County Action Group have seen on the surrounding area and residents' way of life since Chesapeake began drilling there about three years ago.

"Our first concern is the traffic, by far," said Renaud. "The situation has become quite dangerous."

The winding roads leading to the drilling sites, he noted, are simply not designed for large trucks to travel safely.

"Our infrastructure does not support the activity. Our roads are such that a tractor-trailer simply cannot maintain his lane around our turns," Renaud said.

He added that Chesapeake has been cooperative in taking steps to minimize the danger to residents, including putting escort vehicles in front of tractor-trailers and providing security vehicles to observe traffic conditions.

"Without those steps, we would have had countless fatalities," said Renaud.

Still, he estimated three to four accidents per day occur in the Silver Hill area involving gas drilling vehicles "going into a skid, sliding across the center line and off the road."

Renaud said Brock Ridge and County Road 89, two major access roads for Silver Hill residents, "have taken a major beating" as they're not designed to bear the load of so many large trucks. He said to Chesapeake's credit, the company repaved both roads at its own expense - but the repairs haven't held.

"They finished in the late fall, and Brock Ridge is completely destroyed," said Renaud. "Their new paving job is gone. It's a mud road.

"We're talking about massive road failure. ... We're talking about some pretty massive effects. If your road totally disappears, that's a pretty massive effect," he continued.

And during the winter, said Renaud, those roads are blocked by oversized vehicles multiple times each day.

"Locals who used to drive Brock Ridge now go out of their way and use other roads," he said, noting he's also a member of the Wetzel County Emergency Medical Service. "It's normally a 14-minute trip, and I was an hour and a half getting to the Silver Hill Fire Department."

Water pollution also is a concern, Renaud noted. He said in snowy weather, the company lays down "tremendous volumes" of cinders so its trucks can gain traction. When the snow melts, the cinders mix with the water, creating "a lava flow of cinders going into the creeks," Renaud claims.

"The worst part about this, when it dries up, you're inhaling tremendous volumes of cinder dust. The summer irritant for us is dust. ... People have to power wash their homes," he said.

Another worry stems from an industry process called hydraulic fracturing, or "fracing," in which million of gallons of water, sand and chemicals are blasted into each well to break up the tightly compacted shale. Once the rock is fractured, some of the water - estimates range from 15 percent to 40 percent - comes back up the well. When it does, it can be five times saltier than seawater and laden with dissolved solids such as sulfates and chlorides, which conventional sewage and drinking water treatment plants are not equipped to remove.

Chesapeake officials have maintained they "aggressively implement best practices to reduce the possibility of leaks, spills and discharges" with regard to fracing.

Another industry practice, called flaring, occurs when drilling companies burn off surplus combustible vapors.

"They literally burn it out of the stack. Our concern is, we don't know how toxic that gas is," said Renaud. "If you live downwind or in a hollow, it's a gagging odor. ... It's just not very pleasant."

Renaud believes all these factors are adding up to plummeting property values for landowners near natural gas drilling sites.

"I moved here in the '70s," he said. "I moved to get away from the city, to live in a nice rural atmosphere, and now I live in an industrial zone.

"If you live on a rural road and experience 40 trucks going by your house a day, you would have a hard time selling your house. ... These people are now trying to get Chesapeake to buy their property because they can't recover what they paid for the property. Mortgages outstanding are greater than the value of the property today," Renaud claimed.

Renaud is calling on government officials to step in and help "exploit the Marcellus Shale in a way that benefits the citizens of Wetzel County and West Virginia."

"I really don't fault the gas development companies, because if they went out of their way to satisfy what we're asking for, it's going to increase their costs," he said. "They wouldn't be able to compete. It's an industrywide thing. To me, this is a social issue that requires local, state and federal government."
 

W.Va. Bills Are Mixed On Mineral Rights
The Intelligencer. Wheeling News Register
By JOSELYN KING Political Writer
March 8, 2010

WHEELING - Legislation to recognize the rights of surface owners where natural gas drilling takes place has died in the West Virginia Legislature.

Meanwhile, a second bill - one that changes the legal definition of "shallow wells" to include Marcellus Shale wells being drilled locally - has passed the state Senate and is now before the House Judiciary Committee.

Opponents of Senate Bill 369 say the definition change will especially hurt those owning mineral rights on properties adjacent to natural gas drilling sites.

"And it's a terrible bill for surface owners," said Norm Steenstra, a lobbyist with the West Virginia Surface Owners Rights Organization. "The only ones who will benefit are those who drill the wells."

He said "shallow wells" aren't subject to the same royalty sharing laws as deep wells, and that they can be spaced more closely together with detrimental effects. As a result, during shallow well drilling natural gas can be sucked out from under adjacent properties without the property owners knowing, according to Steenstra.

"Even the oil companies suffer," he continued. "If there is drilling of a lot of wells in an area, they are losing pressure and a lot of ability to pull gas out.

"Surrounding property owners should be concerned ... and mineral owners should be worried. They have a right to the money. They can pull the gas out from underneath you," he said.

Supporters say the change in the definition is needed to clarify who regulates the wells. The West Virginia Oil and Gas Conservation Commission regulates deep wells, and the Shallow Gas Well Review Board oversees deep wells.

Last year, Chesapeake Appalachia paid Wheeling and the Wheeling Park Commission $386,629 each to lease possible drilling sites at Oglebay Park. Additional natural gas drilling operations, meanwhile, have been ongoing in Marshall County.

And the drilling in Marshall County has created concerns regarding traffic and condition of roads there, said state Sen. Jeff Kessler, D-Marshall. This prompted him and state Sen. Larry Edgell, D-Wetzel, to introduce SB 529, which would have created the Surface Owners' Rights Recognition Act.

Among its provisions, the bill would have required oil and gas operators to give notice of planned work and its impact upon the property before entry is made; set forth notice requirements and civil penalties; and requiring separate bonds to be posted.

Neither SB 529 nor its House equivalent, House Bill 4408, advanced in their respective chambers.
  

Hoeffel Calls for Responsible DrillingDouble Proposed Revenue from Severance Taxes & Moratorium on new Marcellus Shale Permits 

Joe Hoeffel, Democratic candidate for governor of Pennsylvania, announced today his position on the Marcellus Shale: 
 
“As governor, I will seek a severance tax which will double the projected revenue from Governor Rendell's currently proposed tax to provide Pennsylvania with $300 million in its first year," said Hoeffel. 
 
"The extraction of Marcellus Shale natural gas represents an entirely new economy and has the potential to create thousands of jobs. But drilling in the Shale also opens up new environmental concerns with extremely serious consequences for all Pennsylvanians."
 
"Our commonwealth is getting a lousy deal," continued Hoeffel. "The gas will be there for a long time - We need to get it right. We must cover the immediate costs of the industry and make sure Pennsylvania communities thrive long after all the natural gas has been mined. The silver lining is that we can learn from other states and create a fair tax with maximum benefits."
 
"The tax must  be used wisely. A severance tax won't last forever: once the gas is gone, the tax revenue ends. Pennsylvania must devote some of the severance tax money to protecting the towns experiencing a boom economy during the gas rush from experiencing a bust economy later."
 
Hoeffel will dedicate portions of the severance tax to fund: 
  • DEP's inspection and enforcement operations; 
  • new wastewater treatment facilities; 
  • the renewal of Growing Greener;
  • communities affected by drilling in their efforts to meet the infrastructure and housing costs the industry has brought them; AND
  • our community colleges, expanding programs and educational sites to build a strong, adaptable workforce throughout the state.
Bolstering our community colleges will help prepare Pennsylvanians for thousands of skilled jobs in the natural gas industry and environmental protection. Community colleges will also prepare our workforce for jobs in green energy, manufacturing, infrastructure, technology, health care, and other fields which will long outlast the Marcellus Shale natural gas.
 
"Because our regulations are not adequately protecting our drinking water, it's time to slow down and do the right things in the right order, " said Hoeffel. "That's why I support a moratorium on issuing new drilling permits until new wastewater regulations are in place and enforceable."
 
Hoeffel also supports a moratorium on the leasing of additional state lands for drilling until a comprehensive study of all state land is performed to prioritize which land is most critical to protect.
 
"With environmental regulations that protect our water, a severance tax which allows our towns to adapt to their new industry and a plan in place to protect our state land, Pennsylvania can take pride in its natural gas industry. Landowners, towns, and the commonwealth will prosper. Many Pennsylvanians will be employed working on gas wells and in treatment facilities. And most importantly, Pennsylvania will be prepared for the day the drilling ends. If we prepare, the boom won't turn into a bust."
 
"The Marcellus Shale needs a traffic cop." concluded Hoeffel.  "It's time for Tom Corbett and my opponents in the Democratic Primary to join me in calling for responsible drilling, safe drinking water and overall environmental protection."
  

"Stealth" Measurements of Air Quality Contradict
Shale Gas Industry Claims of Safe Air

New technology finds huge methane plumes around shale gas drilling and processing facilities

Technology is new arrow in quiver of shale gas impacted communities nationwide

DISH, TX March 4 - Yesterday a team of environmental scientists presented findings from a novel two day emissions gas detection project showing methane levels as much as 20 times above normal background levels in the air around several counties in the greater Dallas-Fort Worth Metroplex.

"These findings raise troubling questions about shale gas industry pollution not only in Texas but for states nationwide where shale gas drilling and production is planned or underway," said Wilma Subra, EARTHWORKS board member, environmental chemist and MacArthur grant recipient.

The results were collected over the past two days by an undercover team driving an unmarked white van around the metroplex to test a new measurement technology that enables drive-by emissions testing on shale gas drilling and pumping facilities -- without leaving the vehicle or slowing down from normal driving speeds.

Methane is a surrogate gas for benzene, xylene and other toxic and carcinogenic volatile organic compounds (VOCs). As a greenhouse gas that is roughly four-times more potent than CO2, methane is also a significant contributor to the ongoing climate crisis.

The results were presented to an overflow crowd at the DISH town hall where Mayor Calvin Tilman had called a special meeting to discuss the findings. DISH and other metroplex residents are concerned shale gas industry pollution are behind serious health problems in the area.

The sampling team, which included Wilma Subra and environmental testing firm Wolf Eagle Environmental, was able to approach and circle the pumping facilities without detection. Previously, companies that own and operate the shale gas installations had spotted sampling teams and turned off compressor and other production operations that produce emissions gases.

In one area, concentrations of methane from emissions plumes were so high that the instrument - manufactured by Picarro Inc. -- reached the higher end of its detection range at 40-50 parts per million. When Subra and Wolf Eagle Environmental CEO Alisa Rich contacted air quality regulators, they learned that the Flower Mound facility had failed to report an emissions event, as required by state and federal law.

"These jaw-dropping results show that the shale gas industry is not to be trusted with public health", said Sharon Wilson, organizer for the Texas Oil & Gas Accountability Project. She continued, "Drilling can only be done right with adequate supervision and enforcement. Texas OGAP and EARTHWORKS are considering ways to bring unannounced emissions detection to other shale gas regions - and other mining, digging and drilling facilities -- around the country."

Texas OGAP works with communities statewide to prevent and minimize the impacts caused by energy development. EARTHWORKS has 29,000 members nationwide, and offices in California, Colorado, Montana, New Mexico, Texas and Washington, D.C.

Fort Worth residents see the bad side of natural gas drilling

Jesus spoke of "the least of these." It seems like many Fort Worth residents are "the least of these" when city officials and the natural gas industry partner to bring us gas wells, fracking operations and liquids, "produced water," gas well condensate, lift compressors, heavy diesel machinery, liquid storage tanks and the like in every zoning category in the city.

Time was when heavy industry was confined to specially zoned heavy industrial districts for public health and public safety reasons. State law specifically grants municipalities this power.

In 1956, Fort Worth banned fireworks factories and warehouses from residential areas because of an explosion at one of these sites. But the City Council, at the request of natural gas drillers, has abandoned residents and voted to permit any gas drilling or production activity in any zoning category.

If the least of us -- those who do not live in high-dollar homes in the wealthiest neighborhoods -- are not protected from the very clear dangers posed by these industrial activities, none of us are protected.

Our City Council, guided by the gas drilling industry, has abandoned children and their families who expect to live in a safe and healthy place, leaving them exposed to dangers inherent in drilling, fracking, piping, processing and compressing raw gas. Information about the danger is easily available on the Internet and elsewhere, yet the council has allowed the gas industry to guide its actions without doing proper due diligence.

Now "the least of these" are beginning to see what has been done to them, and they are not happy. They recently rose up and fought a proposed multiple-well drilling site on Page Avenue in South Fort Worth. They made the council and industry back down from a plan that would have placed a huge source of carcinogen and neurotoxin emissions in the middle of a neighborhood with a model public elementary school, churches, homes and apartments.

Opposition came not only from residents along and near Page Avenue but from representatives of the nearby Rosemont Neighborhood Association, who had recently won a fight against building a combined school and community center in Rosemont Park near another drilling site. That plan had been engineered in private by the City Council, the school district and the natural gas industry.

The school district and even many churches have endorsed the natural gas drilling bonanza that largely benefits Fort Worth's elite. The "least of these" have no alternative but to rise.

Perhaps this revolt will cause the City Council to rethink its responsibilities and return to a proper and prudent course of governance. As drillers buy up more and more property in Fort Worth and apply more pressure to the city to rubber stamp variances to whatever restrictions are in place, it is going to become more and more difficult to change course and return to sanity.

Time is wasting. Natural gas drilling and production operations must not be permitted where people live.

Robert Snoke is chairman of the Rosemont Neighborhood Association in South Fort Worth.
  

Texas company sues Jefferson Twp. man

By Cara Host, Staff writer
Observer-Reporter
2/25/2010


Texas Eastern Transmission has sued a Jefferson man in federal court, claiming he is standing in the way of a pipeline project that is supposed to deliver natural gas to the East Coast.

The company filed the lawsuit last week in U.S. District Court in Pittsburgh. The company wants to use eminent domain to condemn about 1.16 acres of Donald E. Bruckner's family farm on Valley View Road, Jefferson Township, so it can proceed with its project to build a new, 36-inch pipeline that will extend 9.6 miles through Greene County on its way to York County and the East Coast.

Texas Eastern wants to have the pipeline in service by Nov. 1. It asked the court to expedite action on its suit so construction can begin by April 1. Texas Eastern filed similar lawsuits against several other Greene County property owners a few months ago.

Bruckner said that he tried to negotiate with Texas Eastern, but the company chose to sue him instead.

"I'm not opposed to this project," he said when reached by telephone Wednesday. "I don't think when they build something like this that the homeowner should become bankrupt."

The pipeline construction will make a portion of the Bruckner family's 212-acre farm unusable for up to two years. Bruckner said he will have less pasture and water for his cattle, so he will have to thin the herd and lose thousands of dollars in the process.

Texas Eastern already has an easement through Bruckner's property, which it obtained in 1951. Two pipelines are located on that right of way, but the new line will diverge from the easement and the company wants to obtain a new easement through eminent domain. In its lawsuit, Texas Eastern claims it changed the route at Bruckner's request.

Bruckner said installing the pipeline at the original location would jeopardize the well and water system at his brother's mobile home, so Bruckner suggested that Texas Eastern move the home or purchase it. The new route goes around the mobile home, Bruckner said.

Texas Eastern claims Bruckner initially granted permission for the project to proceed through his property only to revoke that permission later. Bruckner said he never agreed to anything and he thought he was still negotiating with the company when he was served with the lawsuit papers.

"We're not the type of people who want to go to court. These are people who are not local and they come in here and do a lot of sneaky, little underhanded things," Bruckner said.

Without an easement, Texas Eastern claims that a bottleneck will be created at the property and force construction crews to move around the area until the property dispute is resolved. That process will cost the company at least $241,000 in each incident, according to the lawsuit.

The company has asked the court to grant a preliminary injunction to allow access to the property to install the line starting April 1. If that is not possible, Texas Eastern wants the court to award damages for moving around the property and any other expenses.

"No one feels good about going to court and we do everything we can to avoid that route," said Wendy Olson, spokeswoman for Texas Eastern's parent company, Spectra Energy. "Our hopes are to reach a mutually agreeable solution."
  

A New Watchdog for Texas' Shale Gas Drilling Industry

Texas Oil & Gas Accountability Project Launches Best Practices Platform

Fort Worth, 2/23 - Today EARTHWORKS formally launched the Texas Oil & Gas Accountability Project (OGAP), a new citizens' group that will work to ensure that Texas' burgeoning Barnett shale gas industry operates while respecting the environment and the rights of its neighbors. Simultaneously, the new watchdog group released its best practices platform: DRILL-RIGHT TEXAS: Best Oil & Gas Development Practices for Texas.

"Shale gas drilling has a black eye in Texas because it fails to respect communities and the environment. That's why concerned Texans came together to form the Texas Oil & Gas Accountability Project," said Gwen Lachelt from EARTHWORKS. "DRILL-RIGHT TEXAS shows the responsible way forward for both drillers and regulators, and Texas OGAP will push them in that direction."

The shale gas industry is exploding in the central Texas. In Fort Worth alone, more than 1,100 wells have been drilled within the city limits, and 100 new wells are being permitted every month. Over 9,000 wells have been drilled in surrounding counties -- with 5,000 more already approved. Pipelines and wells are being located and drilled just a few feet from residences, sparking concerns by local residents for their health. Open spaces, such as the Tandy Hills, Greenbelt and other endangered, native prairie lands are turning into industrialized landscapes and drilling is encroaching upon Lake Worth, a critical drinking water supply for the city.

"DRILL-RIGHT TEXAS shows the drilling industry how to do it right: respect private property rights, clean water and clean air, wildlife, and public health," said Sharon Wilson, the new Texas OGAP organizer. She continued, "I'm a 4th generation Texan who hoped to get rich selling gas leases. After witnessing first-hand the devastation wrought by current drilling practices, I know that unless DRILL RIGHT recommendations are followed, Texans and future Texans will be a whole lot poorer."

EARTHWORKS, the only nationwide non-governmental organization (NGO) in the U.S. focused exclusively on resource extraction, has worked with Texans since the Barnett Shale drilling boom sparked citizens to demand greater oversight of oil and gas activities in the region. Texas OGAP hopes to replicate successes in other states like New Mexico and Colorado, where EARTHWORKS-championed landowner and environmental initiatives have become law.

"We are calling for responsible water standards to protect Texans threatened by drilling," said Kathy Chruscielski, Texas OGAP Steering Committee member. She continued, "Enormous amounts of water are used to drill wells and the waste water must be properly managed. Water recycling, closed-loop drilling systems and non-toxic fracturing fluids are best practices we're promoting to protect our increasingly-scarce fresh water supply."

A citizen's groundwater advocate and the publisher of Parched Newsletter, Chruscielski became active in water issues four years ago when gas drilling was blamed for causing water wells to go dry.

"Some areas are so important for future generations that they simply should not be drilled," said Texas OGAP member Don Young and founder of Fort Worth Citizens Against Neighborhood Drilling Operations. "We've got to protect our special places like the Tandy Hills and LBJ Grasslands or we won't have anything left," he continued.

Young's Fort Worth CANDO is the first group in the United States devoted to raising public awareness of urban drilling issues.

Texas OGAP will work with communities statewide to prevent and minimize the impacts caused by energy development. EARTHWORKS has 27,000 members nationwide, and offices in California, Colorado, Montana, New Mexico, Texas and Washington, D.C.

 
By Mary Perham
Corning Leader/Bath Courier

Packed House Attends Environmental Resources and Energy Committee Hearing on HB 2213 in Clearfield

By Aaron T. Evans
February 20, 2010
gantdaily.com

CLEARFIELD, PA – On Wednesday well over 100 people turned out to listen to testimony at public hearing held by the Environmental Resources and Energy Committee at the Knights of Columbus. The hearing was held to solicit testimony on the proposed House Bill 2213, which would amend the existing Oil and Gas Act of 1984. The purpose of the bill is to provide further protection to surface land and water supplies from natural gas drilling activities.

HB 2213 would:

- Require the DEP to inspect Marcellus well sites during each drilling phase;

- Extend to 2,500 feet, from 1,000 feet, the presumed liability of a well polluting a water supply;

- Require disclosure of the chemicals used in the hydraulic fracturing – fracing – of the natural gas from the earth;

- Update bonding requirements to cover the costs of decommissioning a well;

- Clarify local governments’ traditional authority to regulate oil and gas activities.

The meeting opened with members of the committee giving comments on HB 2213, gas well drilling and Pennsylvania’s water system.

State Rept. Camille “Bud” George, majority chair of the committee, said that Pennsylvania is no stranger to drilling. He added that the size and magnitude of Marcellus Shale drilling adds new challenges in ensuring that the both the environment and industry are protected.

“I think it’s important we do it right,” said state Rep. Scott E. Hutchinson, minority chair.

John Hines, deputy secretary for water management for the state Department of Environmental Protection and other DEP representatives were first to testify.

“Pennsylvania is blessed with water,” said Hines. “We live with it, but sometimes we don’t respect it.

“We are at a crossroads,” added Hines. He asked how they will deal with energy production and protecting watersheds.

Hines touched on the process of fracing, where water, salt, sand and chemicals are used to fracture shale formations that hold natural gas. Hines pointed out that this water must be treated before it can be released back into the watershed. He said the DEP uses a number of existing regulations in monitoring wastewater treatment.

He also said that contrary to popular belief, DEP does have a list of chemicals used in the fracing process. He said the department has obtained material data sheets from mining companies. He added that these lists are then circulated to emergency management agencies in the event of an emergency.

Hines admitted that while the DEP knows what chemicals are in the fracing fluid, it does not know what the concentrations of chemicals are. He indicated that each company uses a different solution, in essence, a trade secret.

He also noted that total dissolved solids, or TDS, is a very real problem in the states waterways. He stated that there is a permitting process to deal with TDS in gas well drilling.

State Rep. Mike Carroll asked how many treatment facilities in the state are currently permitted to handle frac water. One of the DEP representatives said around 17 or 18 and noted that they are almost all in the northwest and southwest parts of the state.

“We really do have to get this right,” said Carroll. He added that they can’t repeat the anthracite coal problems of the past. “We’ve come a long way, but we have to get this right.”

Another issue touched on was an incident involving gas well drilling and water wells in Dimock Township. A DEP representative indicated that the water was tainted by gas from a shallow gas well, not Marcellus Shale gas. Later in the meeting, however, there was some discussion that the overall incident occurred because of Marcellus Shale drilling.

State Rep. Matt Gabler questioned the DEP representatives about gas migration and the use of concrete for casing material. The DEP representatives said that gas migration can occur when a shallow pocket of gas is hit in the drilling process or when a casing goes bad. They noted that concrete, while porous, has been effective as a casing material and that it is uncommon for a concrete casing to fail.

George told the DEP representatives that he’s amazed the material used in fracing is a trade secret. He questioned how they will know that water’s treated when they don’t know the ratios of chemicals in the frac water. He also questioned allowing for prolonged usage of open pits.

“We have very strict standards for pits and impoundments,” said Hines.

Also testifying was Thomas W. Beauduy, deputy director and counsel for the Susquehanna River Basin Commission. He praised the committee for their attempts on improving the Oil and Gas Act of 1984. He said the mining activity of today was not foreseen in 1984. He commented on the bonding issue, noting that bonds should reflect the cost of remediation.

Beauduy said he had some issues with some of the drafting in the bill, and that the provisions and disclosures should not only affect Marcellus Shale drilling, but all hydrofracture operations.

He said the SRBC’s business is in water resource management, not drilling regulations, flowbacks or brines. He said they regulate water withdrawal.

“In the past we’ve seen mineral exploitation at the risk of society,” Said Beauduy. He added that they need to use the lessons of the past.

“For this industry, we start at gallon one.”

He touched on the amount of water used in the gas well drilling industry and compared it with other industries. He said a scrubber at a power plant cooling tower uses an average of five million gallons of water a day; the golf industry over 3 billion gallons of water a day is used; in an 18-month span in the Susquehanna River basin, 262 million gallons was used.

Beauduy also added that real-time water data monitoring is in the works, and will be available on the SRBC’s Web site.

Under questioning he noted that the SRBC is concerned about smaller, older streams. He said they will look at habitat and use, among other things, both up and downstream before issuing permits. He also said that water will be available should the industry expand over the next few years.

George asked Beauduy if it was reasonable for drilling companies to use water from other industrial origins, such as acid mine drainage.

“Absolutely,” said Beauduy. He indicated that if a firm uses AMD in their process, they will waive the fees on applications.

John Baillie, senior attorney for Citizens for Pennsylvania’s Future (PennFuture) also testified at the hearing. PennFuture is a statewide public interest membership organization with offices in Harrisburg, Pittsburgh, Philadelphia, West Chester and Wilkes-Barre. The organization’s purposes include advocating and litigating on behalf of the environment and public health on a state-wide basis. This includes water quality issues and issues arising out of gas drilling activities.

In his testimony Baillie pointed out that techniques used in Marcellus Shale drilling are also used in other gas extraction instances. He noted that these techniques are likely to raise similar water pollution concerns. He asked that HB 2213 be revised so its protections not only cover Marcellus Shale gas wells, but to any gas extraction activity that uses fracing and horizontal drilling.

Baillie also pointed out that the Oil and Gas Act does not require gas well companies to disclose information regarding the chemicals used in the drilling process. He noted that DEP requires companies to disclose the ingredients of frac fluid, but not the ratios.

“…It also appears that the manufacturers of fracturing fluids can legitimately claim that the concentration of the fluids’ various ingredients are confidential trade secrets,” said Baillie. “Well operators purchase fracturing fluids but may not be privy to the concentrations of the ingredients the fluids contain.”

He asked that the sponsors of HB 2213 consider removing requirements that well operators disclose the concentrations or ratios of ingredients in their frac fluids. Baillie indicated this would avoid imposing obligations on drillers that they may fight.

George asked Baillie if he disagreed with other organizations that believed the drillers should disclose the ratios/concentrations. Baillie said he did not.

“We’d like to get this bill passed as close to current form as it is,” said Baillie. He added that he would rather see 99 percent of the bill passed than nothing.

Baillie also touched on the Pennsylvania Municipalities Planning Code and the Flood Plain Management Act. Both take a back seat to the Oil and Gas Act. He asked that HB 2213 amend section 602, “to clarify that such local ordinances are preempted only to the extent they purport to regulate oil and gas well operations and that to the extent local ordinances would regulate certain other aspects of oil or gas well operations – including time and place of operations – the ordinances are not preempted.”

He also pointed that the bill needs to recognize ordinances under the Second Class City Code of Pittsburgh, so the city can assert its traditional zoning powers on gas well drilling in the same way other municipalities might.

Kathryn Klaber, president and executive director of the Marcellus Shale Coalition and David Spigelmyer, vice chairman of the MSC and vice president of government relations for Chesapeake Energy were the last to testify.

“I certainly recognize your historic commitment to conservation and the environment and appreciate the committee’s review of this subject,” said Klaber. “And you have been very clear about the need to maximize the real economic opportunities from the Marcellus development without jeopardizing the environment.

“On that goal, we are on the same page.”

She, like Carroll and Hutchinson, said they needed to get it right. She touched on casing and the cementing of well borings, hydraulic fracturing fluids and equipment disinfection.

She noted an advisory board of regulators, industry representatives, academia and representatives of the public interest who worked toward updating the PA Code concerning gas oil well construction. She cited it as an example of how the natural gas industry is developing the Marcellus Shale while working with regulators. She also pointed to a recent announcement by Gov. Ed Rendell regarding the hiring of 60-plus new DEP staffers to monitor oil and gas wells. She said the MSC has “consistently supported the hiring of additional DEP staff to monitor natural gas wells in the commonwealth.”

Klaber also touched on frac fluid.

“With respect to the disclosure of the components of the fracturing fluid, and notwithstanding the misleading statement to the contrary by those who would appear to want to see this Marcellus opportunity for Pennsylvania fail, this information is available in multiple places. Just like in other regulated industries, the natural gas industry complies with the federal Occupational Safety and Health Administration rules that require up-to-date Material Safety Data Sheets to be on site, disclosing the components of the products in use.”

Klaber and Spigelmyer were asked about using AMD in the mining process as well as companies recycling their water. Spigelmyer said the company he’s with has almost 100 percent recycling when it comes to their waste water. Klaber stated that companies use AMD when they are in the right locations.

Throughout the hearing members of the Environmental Resources and Energy Committee urged the DEP and industry to work together.

In one example, state Rep. Bryan Barbin indicated that if the DEP worked with the industry to use AMD and other industrial uses water, then maybe tax credits could be earned.

“Companies would like to see disposal options continue to develop,” added Spigelmyer.

Carroll noted that he did not hear much in their testimony against HB 2213.

“Are we getting a quiet endorsement,” he asked.

Klaber said no, and that elements of the bill were already on the books.

Spigelmyer went on to state that the industry is building toward future endeavors, and indicated that additional taxation would only harm them.

George took umbrage with some of the SMC representatives’ statements. He questioned them on groundwater pollution and equipment cleaning.

“We welcome you, the industry,” said George. “But this belongs to the people.”

George thanked those gathered and said that more public hearings will be held in the future.

Two Oil-Field Companies Acknowledge Fracking With Diesel

February 19, 2010

Two of the world's largest oil-field services companies have acknowledged to Congress that they used diesel in hydraulic fracturing after telling federal regulators they would stop injecting the fuel near underground water supplies.

Halliburton and BJ Services acknowledged to the House Oversight and Government Reform Committee in January 2008 that they had used diesel in the controversial process that has expanded access to vast natural gas plays.

BJ Services acknowledged it had violated a December 2003 "memorandum of agreement" that it and other companies signed with U.S. EPA agreeing to limit the amount of diesel they use in fracturing.

The chairman of the oversight panel at the time, Democrat Henry Waxman (Calif.) is now chairman of the Energy and Commerce Committee, which launched an investigation yesterday into fracturing practices.

The companies' acknowledgement was included in a memo from Waxman to committee members that was released to the public yesterday with the announcement of the probe. Waxman said that after sending questions to major fracturing companies, a BJ Services attorney reported that the company used 1,706 gallons of diesel-based slurry in two dozen coalbed methane fracturing jobs in Arkansas and Oklahoma from 2005 to 2007.

"In a letter to the Oversight Committee, counsel for BJ Services acknowledged that these events 'were in violation of the MOA' and expressed a commitment to uncovering how they occurred," Waxman's memo states. The letter also says, "BJ Services subsequently sent a reminder to 'all employees who design or perform fracturing operations about the requirements of the MOA.'"

As part of the same oversight committee investigation, Halliburton reported using fluids containing diesel fuel from 2005 to 2007 to fracture oil and gas wells in 15 states. Specifically, Halliburton reported using more than 807,000 gallons of seven diesel-based fluids over the three-year period.

Waxman's memo says the companies didn't specify whether the fluids were injected into wells located in or near underground sources of drinking water, which could create contamination risks. In addition, the memo says, it could be a violation of the Safe Drinking Water Act if the fluids contain diesel fuel.

Hydraulic fracturing blasts sand, water and chemicals deep into a wellbore to break compact rock. Though the industry has used the process for decades, questions about drinking have mounted in the past few years as the process has opened up vast reserves in new areas, such as Texas and New York.

Halliburton officials said the suggestions that its use of diesel may have violated the agreement are "completely inaccurate."

"The terms of the MOA specifically cover coalbed methane gas development activities occurring in association with Underground Sources of Drinking Water, and not [fracturing] projects in other unconventional gas development activities or conventional formations," company spokeswoman Diana Gabriel said in a written statement to E&E. "Halliburton is firmly committed to full compliance with the MOA and has, in fact, voluntarily gone further to cease the use of diesel in its liquid gel concentrates regardless of the type of [fracturing] job in which they are used."

But BJ Services' admission that it may have violated the agreement raises the question of whether it injected diesel into drinking water. The agreement covers only fracturing in coalbed methane wells in underground sources of drinking water.

BJ Services didn't respond by press time to E&E's request for comment, but told the Houston Chronicle it had reported the incidents to the EPA on its own.

Jeff Smith, chief financial officer of BJ Services, told the newspaper some of the company's units "inadvertently performed a few jobs" with diesel, with the last one occurring in 2007.

"The company self-reported the incidents to the EPA and took measures to stop it from happening in the future. The company's technology center in Tomball also figured out a way to replace diesel in frac jobs with mineral oil-based products instead, to improve the ecological footprint of the fracking fluids," Smith told the Chronicle, which published his statement in a blog.

Agreement key to regulatory exemption

The agreement not to use diesel was aimed at calming fears about groundwater contamination when Congress decided to exempt fracturing from federal drinking water laws in the 2005 energy bill. The agreement was signed by Halliburton, BJ Services and Schlumberger, which then did nearly all the fracturing work in the United States. It included no enforcement penalties.

Congressional Republicans were responding to industry requests to head off potential federal regulation and leave it to the states. But Democrats consistently complained that their efforts would allow oil companies to inject diesel into drinking water. So in the final version of the bill, fracturing was exempted from the Safe Drinking Water Act unless diesel was used.

At the time, industry representatives said use of diesel was rare in any type of fracturing and specifically not used near drinking water sources.

"Diesel itself had been used so rarely and so specifically in formations that are not classified as drinking water sources, and there has been no evidence of any contamination of water because of diesel or its use in fracturing fluids," Bill Whitsitt of the Domestic Petroleum Council said in 2004.

Rep. Diana DeGette (D-Denver), vice chairwoman of Waxman's committee, has introduced legislation (H.R. 2766 (pdf)) that would require drilling companies to disclose the chemicals used in their fracturing fluids under the Safe Drinking Water Act. She has said she is not trying to ban the practice, but her proposal has run into staunch opposition from the industry, which maintains that the drilling practice is safe and fairly regulated by the states. Sen. Bob Casey (D-Pa.) has introduced companion legislation in the Senate.

Last year, Congress ordered EPA to study the impact of fracturing on drinking water, which would follow on a 2004 EPA study that found no risk of contamination of drinking water from fracturing in coalbed methane wells. The report, though, did cite the use of diesel in fracturing as a concern.

Yesterday, Waxman and Rep. Ed Markey (D-Mass.) announced their investigation by sending letters to eight oil-field services firms seeking data and documents on the types and quantities of chemicals used in hydraulic fracturing fluids, the proximity of injections to underground drinking water sources, questions about the technique's environmental and health impacts, and the chemical contents of wastewater produced by fracturing operations.

"Hydraulic fracturing could help us unlock vast domestic natural gas reserves once thought unattainable, strengthening America's energy independence and reducing carbon emissions," Waxman said in a statement. "As we use this technology in more parts of the country on a much larger scale, we must ensure that we are not creating new environmental and public health problems."

But some in the industry see political maneuvering behind Waxman's investigation and its timing, since the EPA is already doing a study.

"While an inquisition targeting chemicals is a hell of a lot sexier than a fact-based dialogue on pathways of exposure, it unfortunately misses the point," said Chris Tucker of the industry group Energy in Depth.

Copyright 2010 E&E Publishing. All Rights Reserved.

For more news on energy and the environment, visit www.greenwire.com

 

Drillers admit dumping water in national forest

Tuesday, February 16, 2010
The Associated Press

Two men from a Kansas oil-drilling firm pleaded guilty today to illegally dumping 200,000 gallons of brine water down an abandoned well in Pennsylvania's only national forest.

The pollution by Swamp Angel LLC in the Allegheny National Forest could contaminate groundwater and streams, but authorities have not linked any water damage conclusively to the pollution, acting U.S. Attorney Robert Cessar said.

The pleas before a federal judge in Erie should send a signal to oil and gas drillers to properly dispose of brine, a saltwater byproduct of the drilling process that sometimes also contains metals, Mr. Cessar said.

"These guys were drilling oil wells, produced this brine water and decided they weren't going to pay for its disposal," Mr. Cessar said. "This is the result of them getting caught. That's the case in a nutshell."

The Wichita-based company's part-owner, 66-year-old Michael Evans, of La Quinta, Calif., and the company's site supervisor, 54-year-old John Morgan, of Warren County each pleaded guilty to felony violations of the federal Safe Drinking Water Act.

Under the law, brine must either be hauled away and treated at a sewage treatment plant or dumped into an abandoned well, provided permits are obtained. Permits weren't obtained in this case, but are required to ensure measures are taken so the water won't leach into the ground and pollute groundwater and nearby streams, Mr. Cessar said.

Cessar said he didn't know how much it would have cost Swamp Angel to have disposed of the water properly.

As part of today's plea agreements, the company is also paying about $20,000 to reimburse the U.S. Forest Service for the unrelated clean up of some metal drums and other materials left behind by drilling, Mr. Cessar said.

The company also will hire an independent contractor to audit its work, come up with a waste-disposal plan and develop an orientation for employees on environmental matters, Cessar said.

Defense attorney Matthew Wolford, who represents Mr. Morgan, declined to comment. Philip Friedman, who represents Mr. Evans, did not immediately return a call for comment.

Mr. Cessar said the brine was dumped in a section of the forest in McKean County from April 2007 through January 2008.

The two men each face up to three years in prison and $250,000 in fines when they're sentenced June 24.
  

259 Abandoned Pennsylvania Oil and Gas Wells Plugged in 2009

COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection
Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg PA., 17120

FOR IMMEDIATE RELEASE - 2/4/2010

CONTACT: Tom Rathbun, DEP 717-787-1323

DEP: 259 Abandoned Oil and Gas Wells Plugged in 2009
Protects Public Health and Safety Repairs Damage from Past Unregulated Drilling

HARRISBURG -- Environmental Protection Secretary John Hanger today reported the department last year managed 14 project sites in nine counties that successfully plugged 259 abandoned oil and gas wells.

That work, he said, is important not only to protect the environment, but the public’s safety, as well.

“Abandoned wells create passageways for pollution to enter and contaminate drinking water. They also can allow natural gas to enter water supplies or build up in a home, which can create a dangerous enclosed space,” Hanger said. “Modern regulations require that wells be cased properly during use and sealed once they are taken out of service, but unfortunately, there are thousands of wells that were simply abandoned before people understood the dangers.”

The 259 wells addressed in 2009 are located in the western and north-central regions of the state, and were discovered by department inspectors and local citizens who work collaboratively to locate and map wells in the region.

Many of the wells were leaking oil, acid mine drainage or natural gas.

Abandoned wells can be found in many settings from residential backyards to remote hillsides. Well-plugging costs can vary depending on terrain and the age and depth of the well. In most cases, once DEP receives landowner permission, work crews will clear a site and clean or remove the old well. After any old well casings are removed and the well bore is clear, the well is filled with grout or cement and other fill materials.

Pennsylvania has the highest number of abandoned wells in the Appalachian region and is one of the top five states nationally. The department has documented more than 8,600 wells throughout the state that were abandoned prior to passage of modern oil and gas drilling regulations.

Since the first commercial oil well was drilled in Pennsylvania in 1859, DEP estimates as many as 350,000 oil and gas wells have been drilled in the state, with many of those wells having been abandoned without proper plugging.

Funding for Pennsylvania’s Abandoned and Orphan Well Plugging Program comes from surcharges on well-drilling permits issued in Pennsylvania and from the Growing Greener program.

Media contact: Tom Rathbun, 717-787-1323

Editor’s Note: Below is a list, by county, of the 14 abandoned well plugging contracts awarded in 2009:

Allegheny County
Tarentum Borough: Stray Gas Migration Project -- $9,546. Contractor: Carlucci Construction Co. Inc., Cheswick, Allegheny County.

Erie County
Erie, Girard Borough, Millcreek and Northeast townships: 10 wells -- $93,564.81. Contractor: S&T Service and Supply Inc., Pleasantville, Venango County.

Fayette and Washington counties
Fallowfield Township and Belle Vernon: 3 wells -- $161,512.50. Contractor: Hydrocarbon Well Services Inc., Buckhannon, W.Va.
 
Forest County
Howe Township: 4 wells -- $37,892. Contractor: S&T Service and Supply Inc., Pleasantville, Venango County.

McKean County
Bradford Township: 23 wells -- $103,678. Contractor: Phillips and Dart Oil Field Services Inc., Gifford, McKean County.

Eldred Township: 39 wells -- $351,970. Contractor: James W. Day Contracting, Bolivar, N.Y.

Kane: 7 wells -- $49,220. Contractor: Phillips and Dart Oil Field Services Inc., Gifford, McKean County.

Keating and Otto townships: 46 wells -- $243,692. Contractor: James W. Day Contracting, Bolivar, N.Y.

Otto Township: 28 wells -- $228,216.40. Contractor: ALCO Well Services Inc., Bradford, McKean County.

Tioga County
Delmar Township: 1 well -- $117,000. Contractor: Hydrocarbon Well Services Inc., Buckhannon, W.Va.

Venango County
Cherry Tree and Oil Creek townships: 29 wells -- $256,504. Contractor: S&T Service and Supply Inc., Pleasantville, Venango County.

Cornplanter Township: 64 wells -- $554,776.26. Contractor: S&T Service and Supply Inc., Pleasantville, Venango County.

Warren County
Warren: 4 wells -- $19,760. Contractor: Hemlock Oil and Gas Co. Inc., Bradford, McKean County

Westmoreland County
Upper Burrell Township: 1 well -- $91,439. Contractor: Hydrocarbon Well Services Inc., Buckhannon
  

COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection

Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg PA., 17120

FOR IMMEDIATE RELEASE 01/28/2010

CONTACT: Tom Rathbun, DEP 717-787-1323

 
Governor Rendell: PA Taking Aggressive Action to Protect Public, Environment as Marcellus Shale Drilling Operations Expands
 
Directs DEP to Hire 68 Additional Staff to Bolster Inspections, Environmental Compliance New Regulations Planned to Improve Well Safety Standards
 
HARRISBURG -- In order to protect Pennsylvania’s residents and environment from the impact of increased natural gas exploration across the state, Governor Edward G. Rendell announced today that the commonwealth is strengthening its enforcement capabilities.

At the Governor’s direction, the Department of Environmental Protection will begin hiring 68 new personnel who will make sure that drilling companies obey state laws and act responsibly to protect water supplies. DEP also will strengthen oil and gas regulations to improve well construction standards. These critical upgrades are designed to prevent gas leaks that can pose risks to the public and water quality.

“Interest in Pennsylvania’s Marcellus Shale formation is greater than ever before and as natural gas prices continue to rise, that interest will only increase,” said Governor Rendell. “In fact, the industry has told us that they expect to apply for 5,200 permits to drill in the Marcellus Shale this year -- nearly three times the number of permits we issued in all of 2009. Given these conditions, an extraction tax is gaining widespread support across our state and I will again ask the General Assembly to enact such a levy. It is fair and affordable to drillers. They know it, and so do members of the House of Representatives who voted for it last year.

“The actions I am announcing today, however, are about decisive, progressive protections for the people of Pennsylvania. We were able to hire 37 additional inspectors and permitting staff in 2009, but the industry’s projected growth in 2010 means that we need additional inspectors to ensure oil and gas companies follow environmental laws and regulations. As I’ve said all along, we want to encourage the development of this resource because it’s a tremendous economic opportunity for the state, but we will not allow that to happen at the expense of our environment.”

DEP performed 14,544 drilling site inspections in 2009 and took 678 enforcement actions against drillers for violations.

The 68 additional personnel will be funded entirely from money generated by new, higher permitting fees that were instituted in 2009—the first such increase since 1984. The new fees were put in place with bipartisan support from the General Assembly, industry and environmental organizations.

The Governor noted that given the need for these additional health and safety personnel and the dedicated funding source that is independent of the state’s General Fund, these new hires are exemptions to the general hiring freeze he instituted last year.

DEP’s work to amend Pennsylvania’s oil and gas regulations will strengthen well construction standards and define a drilling company’s responsibility for responding to gas migration issues, such as when gas escapes a well or rock formation and seeps into homes or water wells. Specifically, he said the new regulations will:

• Require the casings of Marcellus Shale and other high-pressure wells to be tested and constructed with specific, oilfield-grade cement;
• Clarify the drilling industry’s responsibility to restore or replace water supplies affected by drilling;
• Establish procedures for operators to identify and correct gas migration problems without waiting for direction from DEP;
• Require drilling operators to notify DEP and local emergency responders immediately of gas migration problems;
• Require well operators to inspect every existing well quarterly to ensure each well is structurally sound, and report the results of those inspections to DEP annually; and
• Require well operators to notify DEP immediately if problems such as over-pressurized wells and defective casings are found during inspections.

“These new draft regulations, which were developed through open meetings with experts in the industry, are designed to give Pennsylvanians peace of mind by bringing our state’s requirements up to par with other major gas producing states or, as in the case of the well casing requirements, to a level that is even more rigorous,” said Governor Rendell.

The new regulations will be offered for public comment on Jan. 29 before going through DEP’s formal rulemaking process.

Interest in Pennsylvania’s Marcellus Shale formation has been increasing. One third of the more than 6,200 oil and natural gas drilling permits DEP issued in 2009 were for drilling in the Marcellus Shale. By comparison, only four of the more than 6,000 permits issued in 2005 were for the Marcellus formation.
  

Fight against state tax on gas extraction gets expensive

Sunday, January 17, 2010
By Bill Toland, Pittsburgh Post-Gazette

In the last two years, energy companies with a stake in Pennsylvania's Marcellus shale have spent hundreds of thousands of dollars lobbying and making campaign contributions to legislators, congressmen and the governor, partly in hopes of postponing a tax on the extraction of natural gas.

They also are laying the groundwork for future political battles. Range Resources Energy Independence PAC, for example, donated $5,000 each to Republican Attorney General Tom Corbett and to Democratic Allegheny County Executive Dan Onorato, both gubernatorial candidates, in the waning months of 2009.

Range Resources, with drilling rights to more than 1.4 million acres, is one of the biggest natural gas players in Pennsylvania, and is one of the most frequent campaign contributors as well. The company's political arm gave to state Rep. Mike Turzai, R-Bradford Woods; Sen. John Rafferty, R-Montgomery; Sen. Joe Scarnati, R-Jefferson; Sen. Jake Corman, R-Centre; and Auditor General Jack Wagner, among others, in 2009. In turn, the biggest donors to the Range PAC are its top executives, such as Charles Blackburn (board of directors), John Pinkerton (CEO), Rodney Waller (chief of compliance) and Roger Manny (executive vice president).

Why all the cash? Energy companies view the Marcellus shale field, much of which is in Pennsylvania, as the next big natural gas bonanza, and have spent the past two years positioning themselves for the day when natural gas prices increase, making it a more profitable enterprise.

And the enterprise will remain more profitable so long as the Legislature and the governor are unable, or unwilling, to impose a tax on the extraction of gas.

The so-called "severance tax" was in the news again last week, as Gov. Ed Rendell announced the leasing of 32,000 acres of state forest land for drilling purposes, netting the state's general fund $128 million. Five companies -- Chesapeake Energy Corp. of Oklahoma City, Exco Resources of Dallas, Seneca Resources Corp. of Houston, Anadarko Petroleum Corp. of Houston, and Penn Virginia Corp. of Radnor, Pa. -- submitted the highest bids.

After announcing the lease agreement, Mr. Rendell said he'd try again, in his 2010-11 budget proposal, to impose a severance tax, something in place in 28 other states. "It's hard for the industry to cry poor mouth. Exxon just paid a high price to buy a [natural] gas company," he said.

He said on Friday that an extraction tax could raise $100 million a year for the state.

Energy companies want to postpone or fight off the tax, citing a glut of natural gas in storage (which depresses prices), and the fact that companies already must pay an up-front lease price, as well as continued royalties, to landowners.

But the companies' concerns go beyond the extraction tax.

"It's all about education," said Matt Pitzarella, spokesman for Range Resources. "While the industry has been in Pennsylvania for 150 years, modern natural gas development is very new. ... At the end of the day, we have to do all that we can to ensure that [we] maximize this opportunity for the entire commonwealth, [and] take the steps to support the responsible growth of this industry."

The PAC for Chesapeake Energy Corp. -- which is the largest gas lessee in Pennsylvania -- also appears frequently in the Department of State's campaign finances records. It has contributed to Rep. Marc Gergely, D-White Oak; Rep. Dave Reed, R-Indiana; Mr. Scarnati, Mr. Corman, Mr. Onorato and Mr. Corbett, among others.

Other players:

• Anadarko, one of last week's winning bidders, made several contributions in 2008, including a $500 contribution to Sen. John Wozniak, D-Johnstown.

• UGI PAC is the political arm of UGI Corp., an oil and gas firm out of Reading, Pa. The PAC has contributed to House Speaker Keith McCall, D-Carbon; Rep. Jeff Pyle, R-Armstrong; Rep. Joe Preston, D-East Liberty; Mr. Turzai and many more.

• Exco Resources (another of last week's winning bidders) committed $500 to Sen. Don White, R-Indiana; $500 to Mr. Corman, and $500 to Mr. Scarnati, among several others.

• Cabot Oil & Gas is the third-largest drilling lease-holder in the state, behind Range and Chesapeake. Cabot and its executives have given to Mr. Scarnati.

• Spectra Energy, a Houston company with a presence in Washington County, has given $1,500 each to the Democratic state senate campaign committee and its Republican counterpart, and the same amount to the House Democrats' and House Republicans' campaigns.

• Cecil Township's CNX Gas, a division of Consol Energy, leases about 40,000 acres. Its political action group -- which is combined with Consol's, called the Consol Energy Inc. & CNX Gas Corp. PAC -- has given $2,500 to Mr. White, $1,000 to Mr. Corbett, $1,000 to Mr. Rendell, $1,000 to Sen. John Pippy, R-Moon, and thousands more since 2008.

Direct campaign contributions are separate from lobbying expenses, which the state also tracks. Range, for example, reported spending $70,600 in "direct communications" with lawmakers in the third quarter of 2009, $65,000 in the second quarter, and $90,000 in the January through March quarter. (Fourth-quarter lobbying expenditures haven't been filed yet.)

Chesapeake Appalachia spent $76,000 in the third quarter of 2009, $79,000 in the second quarter and $48,000 in the first.

Lobbying and umbrella trade groups -- such as the Independent Oil & Gas Association, the National Fuel and Gas Association -- also make direct campaign contributions.

Individually, none of the energy and gas companies give enough to rank among the top contributors in the state, and collectively, they are still well short of the largest donors, such as PACE, the Pennsylvania State Education Association's political arm.
  

COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection

Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg PA., 17120

FOR IMMEDIATE RELEASE
1/7/2010

CONTACT: Helen Humphreys 412-442-4183  

DEP Fines Atlas $85,000 for Violations at 13 Well Sites

PITTSBURGH -- The Department of Environmental Protection today announced that it has fined Atlas Resources, LLC $85,000 for violations of the Oil and Gas Act, the Clean Streams Law; and the Solid Waste Management Act at 13 well sites in Fayette, Washington, and Greene counties. 

“Development of Pennsylvania’s natural gas resource is important to the state’s economy. However, that development need not -- and will not -- come at the expense of our environment,” said Southwest Regional Director George Jugovic Jr.  “DEP will ensure that Pennsylvania’s gas resources are developed in an environmentally sound manner, consistent with the law.”

The violations, which occurred between Dec. 8, 2008, and July 31, 2009, fall into three categories:

• Atlas failed to implement and maintain erosion and sedimentation control measures to prevent off-site discharges of silt-laden runoff onto the ground at six well sites; 
• Atlas failed to restore two well sites by establishing the appropriate perennial vegetative cover within nine months of completion of drilling; and 
 Atlas discharged residual and industrial waste, including diesel fuel and production fluids, onto the ground at seven of the 13 well sites.

For more information, visit www.depweb.state.pa.us or call 412.442.4000.

Editor’s Note:  Following are the names, permit numbers and host municipalities of the wells at which the violations occurred. 

• Burchianti 30, Permit No. 37-059-24476-00, Monongahela Township, Greene County
• Burchianti 41, Permit No. 37-059-24616-00, Monongahela Township, Greene County
• Groves 8, Permit No. 37-059-25160, Cumberland Township, Greene County
• Willis 18, Permit No. 37-059-24708, Cumberland Township, Greene County
• Carter 2, Permit No. 37-059-24111-00, Cumberland Township, Greene County
• Penarnik 8, Permit No. 37-059-24555-00, Cumberland Township, Greene County
• Eckerd 1, Permit No. 37-125-23779-00, Deemston Borough, Washington County
• Henderson 7, Permit No. 37-051-24077-00, Jefferson Township, Fayette County
• Redman 30, Permit No. 37-051-24231-00, Washington Township, Fayette County
• Thompson 32, Permit No. 37-051-23746, Nicholson Township, Fayette County
• Thompson 33, Permit No. 37-051-23747, Nicholson Township, Fayette County
• Dancho-Brown 4, Permit No. 37-051-24152, Redstone Township, Fayette County,
• Kovach 34, Permit No. 37-051-24225, German Township, Fayette County.
 

Want more pollution added to the Monongahela and Youghiogheny Rivers near Pittsburgh?  If not, send a letter to the Pennsylvania DEP before February 2, 2010 and object to these two permit requests.

Address letters to:
Southwest Regional Office
Regional Manager, Water Management
400 Waterfront Drive
Pittsburgh, PA 15222-4745

Pennsylvania Bulletin Announcements

APPLICATIONS FOR NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITS AND WATER QUALITY MANAGEMENT (WQM) PERMITS

THE CLEAN STREAMS LAW AND THE FEDERAL CLEAN WATER ACT

[40 Pa.B. 33]
[Saturday, January 2, 2010]

Southwest Regional Office: Regional Manager, Water Management, 400 Waterfront Drive, Pittsburgh, PA 15222-4745; 412-442-4000.

PA0253723-A1, Industrial Waste, SIC 4953, Shallenberger Construction, Inc., 2611 Memorial Boulevard, Connellsville, PA 15425. This application is for amendment of an NPDES permit to discharge treated process water from the Ronco Treatment Facility in Masontown Borough, Fayette County.

The following effluent limitations are proposed for discharge to the receiving waters, the Monongahela River, classified as a warm water fishery with existing and/or potential uses for aquatic life, water supply, and recreation. The first existing/proposed downstream potable water supply is Carmichaels Municipal Water Authority, located at Carmichaels, 4.5 miles below the discharge point.

Outfall 001: new discharge, design flow of 0.5 mgd.

  Mass (lbs/day) Concentration (mg/l)
  Average Maximum Average Maximum Instantaneous
Parameter Monthly Daily Monthly Daily Maximum
Flow (MGD)       0.5
Iron     3.5   7.0
Oil and Grease     15   30
Total Suspended Solids     30   60
Acidity     Monitor Only
Alkalinity     Greater than Acidity
Barium     14.4 28.0
Chlorides     Monitor and Report
Total Dissolved Solids     500 750
Osmotic Pressure (mOs/kg)     1,632 2,546
Sulfates       250
BOD5     53   163
Copper     0.757 0.865
Zinc     0.420 0.497
Acetone     7.97 30.2
Acetophenone     0.0562 0.114
2-Butanone     1.85 4.81
o-Cresol     0.561 1.92
p-Cresol     0.205 0.698
Phenol     1.08 3.65
Pyridine     0.182 0.370
2,4,6-Trichlorophenol     0.106 0.155
Strontium     Monitor and Report
pH not less than 6.0 nor greater than 9.0 S.U.

Other Conditions: Special conditions concerning priority pollutant sampling, residual/hazardous waste disposal, storm water, oil-bearing wastewaters, chemical additives, and residual waste receipt monitoring.

 The EPA waiver is not in effect.

PA0254185, Industrial Waste, SIC 1389, Reserved Environmental Services, LLC, 424 Ironwood Drive, Canonsburg, PA 15317. This application is for issuance of an NPDES permit to discharge treated process water and storm water from the Reserved Environmental Services Industrial Wastewater Treatment Plant in Hempfield Township, Westmoreland County.

The following effluent limitations are proposed for discharge to the receiving waters, Sewickley Creek and Belson Run, classified as a warm water fisheries with existing and/or potential uses for aquatic life, water supply, and recreation. The first existing/proposed downstream potable water supply (PWS) is the Municipal Authority of Westmoreland County - McKeesport Plant, located at McKeesport, 33 miles below the discharge point.

Outfall 001: new discharge, design flow of 1.0 mgd.

  Mass (lbs/day) Concentration (mg/l)
  Average Maximum Average Maximum Instantaneous
Parameter Monthly Daily Monthly Daily Maximum
Flow (MGD) Monitor and Report
BOD5 442 1360 53.0 163
Total Suspended Solids 250 500 30 60
Oil and Grease 125 250 15 30
Aluminum 6.26 12.52 0.75 1.50
Antimony 0.15 0.30 0.018 0.036
Barium 66.2 132 7.93 15.86
Boron 44.1 88.3 5.29 10.58
Copper 0.242 0.484 0.029 0.058
Iron, Total 12.5 25.0 1.5 3.0
Iron, Dissolved 8.35 16.7 1.00 2.00
Manganese 8.35 16.7 1.00 2.00
Strontium 83.5 167 10 20
Zinc 2.11 4.22 0.253 0.506
Benzene 0.008 0.017 0.001 0.002
Ethylbenzene Monitor and Report Monitor and Report
Toluene Monitor and Report Monitor and Report
Xylenes Monitor and Report Monitor and Report
Total BTEX 0.835 1.67 0.1 0.2
Phenols Not Detectable Not Detectable
Acetone 66.5 252 7.97 30.2
Acetophenone 0.469 0.951 0.0562 0.114
2-Butanone 15.4 40.1 1.85 4.81
o-Cresol 4.68 16.0 0.561 1.92
p-Cresol 1.71 5.83 0.205 0.698
Phenanthrene 0.025 0.050 0.003 0.006
Pyridine 1.52 3.09 0.182 0.370
2, 4, 6-Trichlorphenol 0.885 1.29 0.106 0.155
Osmotic Pressure (mOs/kg)     165 330
Total Dissolved Solids 4173 6259 500 750
Sulfate   2086   250
Chloride   2086   250
Bromide Monitor and Report Monitor and Report
Acidity Monitor and Report Less than Alkalinity
Alkalinity Monitor and Report Monitor and Report
Gross Alpha (pCi/L)     Monitor and Report
Radium 226/228 (pCi/L) Monitor and Report Monitor and Report
pH not less than 6.0 nor greater than 9.0 S.U.
 

Other Conditions: Special conditions concerning priority pollutant sampling, residual/hazardous waste disposal, storm water, oil-bearing wastewaters, chemical additives, and residual waste receipt reporting.

The EPA waiver is not in effect.

Outfall 002: new discharge of storm water.

  Mass (lbs/day) Concentration (mg/l)
  Average Maximum Average Maximum Instantaneous
Parameter Monthly Daily Monthly Daily Maximum
   Discharge from this outfall shall consist solely of uncontaminated storm water runoff.
 

Outfall 003: new discharge of storm water.

  Mass (lbs/day) Concentration (mg/l)
  Average Maximum Average Maximum Instantaneous
Parameter Monthly Daily Monthly Daily Maximum
   Discharge from this outfall shall consist solely of uncontaminated storm water runoff.
 

Source: http://www.pabulletin.com/secure/data/vol40/40-1/18.html
  

Department of Environmental Protection Calls for Prohibition on Drilling in the New York City Watershed

Report finds gas drilling poses unacceptable risks to the unfiltered drinking water supply for nine million New Yorkers

Dec. 23, 2009 - Natural gas drilling and exploration are incompatible with the operation of New York City’s unfiltered water supply system and pose unacceptable risks for more than nine million New Yorkers in the City and State. Drilling in the watershed requires invasive industrialization and creates a substantial risk of chemical contamination, and infrastructure damage, according to the Final Impact Assessment Report prepared for the New York City Department of Environmental Protection (DEP).  After reviewing the report, DEP has called for a prohibition on any drilling in the New York City watershed, located upstate. 

 “Based on the latest science and available technology, as well as the data and limited analysis presented by the New York State Department of Environmental Conservation (DEC), high-volume hydrofracking and horizontal drilling pose unacceptable threats to the unfiltered fresh water supply of nine million New Yorkers,” said Acting DEP Commissioner Steven W. Lawitts.  “New York City has invested $1.5 billion to protect the watershed and prevent degradation of the water supply, and to maintain its Filtration Avoidance Determination (FAD).  The known and unknown impacts associated with drilling simply cannot be justified.”

 Since 1997, the City has been granted a Filtration Avoidance Determination by the U.S. Environmental Protection Agency (EPA). This designation recognizes the high quality of New York City’s West of Hudson water supply.  Since that time, the City has spent or committed approximately $1.5 billion to protect these pristine waters.  Gas drilling in its current form, is inconsistent with ensuring both the protection of these source waters and the continuation of the FAD.  The inherent environmental impacts and risks of gas drilling could result in the need to construct a filtration plant at a minimum cost of $10 billion, which would translate into a 30 percent increase in water rates.

 In addition, in comments submitted yesterday, the City called on DEC to rescind the draft Supplemental Generic Environmental Impact Statement (dSGEIS) that was released on September 30, 2009 because it does not adequately address the risks of drilling in the New York City watershed, which supplies drinking water for nine million New Yorkers.
 
 DEP Deputy Commissioner Paul Rush today briefed the New York City Water Board on the Report, which the City initiated in fall 2008 when DEC commenced its dSGEIS addressing horizontal drilling and high-volume hydraulic fracturing in the Marcellus Shale formation.  The Marcellus Shale formation runs through parts of  Virginia, West Virginia, Ohio, Pennsylvania, and New York.  In New York State alone it extends for approximately 18,700 square miles, including under the City’s entire 1,585 mile West of Hudson watershed. 

 As part of their review, DEP’s consulting team, Hazen and Sawyer/Leggette, Brashears and Graham, studied the unique hydrological and geological conditions of the watershed, the technology and chemicals necessary to conduct hydrofracking, the experience of other jurisdictions that currently allow hydrofracking, and the scientific literature, and found the following risks:

Industrialization: Gas drilling brings with it an industrial infrastructure with inherent environmental risks: as many as 3,000 to 6,000 wells would result in millions of truck trips, thousands of acres of site clearing and grading, millions of tons of fracking chemicals, and millions of tons of waste from produced water, all of which can contaminate water.

Chemical Contamination: The chemicals used as part of the process are injected into subsurface rock formations and can travel along underground fissures to ground water and ultimately streams that feed reservoirs; extensive subsurface fracture systems and known “brittle” geological structures exist that commonly extend over a mile in length, and as far as seven miles in the vicinity of NYC infrastructure. In addition, the resulting wastewater – potentially one billion gallons per year – can also contaminate water supplies.    Currently, there is no way to locally treat this wastewater.

Infrastructure Damage: High-volume hydraulic fracking could damage the City’s water supply infrastructure; of greatest concern are our tunnels which are located both inside and outside the New York City watershed. Naturally occurring fracture systems have been demonstrated to transmit fluid and pressure, as evidenced by saline water and methane seeps encountered at grade and in shallow formations near the City’s infrastructure during and since its construction.

In addition to explaining the impacts and risks identified in the Report, the City states in its comments that the dSGEIS does not meet the requirements of the New York State Environmental Conservation Law because it does not include critical and necessary analyses, including:  cumulative impacts of the industrialization necessary for drilling, waste disposal, air quality, pipeline construction, and ancillary infrastructure.   The document does not sufficiently address public health concerns. Also, a separate impact assessment on public health is needed given the hazardous chemicals that are proposed for use, the potential radioactivity of the waste products, and the rate and scale of the drilling and related activities.  The City has previously requested that the New York State Department of Health undertake such a study.

Following are the City’s comments on the dSGEIS, the cover  letter, and Final Impact Assessment Report.  In addition, the following presentation was made by Deputy Commissioner Paul Rush at a Water Board meeting on December 23.

NYCDEP's comments on the dSGEIS (PDF)
Cover letter for comments on the dSGEIS (PDF)
Final Impact Assessment Report (PDF)
NYC Water Board Presentation 12/23/2009 (PDF)

[Story link]

The Endocrine Disruption Prevention Act of 2009

On December 3, 2009, Representative Jim Moran and Senator John Kerry introduced The Endocrine Disruption Prevention Act of 2009 to authorize an ambitious research program at the National Institute of Environmental Health Sciences (NIEHS).  But keep in mind that the bill is not passed yet and they need many more cosponsors in order to get the bill passed.

According to Senator Kerry, “We need facts driven by science, not politics, ideology, or powerful interests, when it comes to understanding the risks associated with chemicals - especially where there's real concern about harmful developmental disorders in children.  The better we understand these chemicals, the better equipped we’ll be to protect kids and the public.”

This research program will build upon the results of pioneering extra-mural and intramural research that NIEHS has already been carrying out for decades about endocrine disrupting chemicals (EDCs) on campuses across the country.   

The goal of the program is to develop reliable and reproducible methods to identify chemicals that can disrupt the human endocrine system. This bill will facilitate the development of comprehensive multi-system assays to identify EDCs. It will take a disease based perspective, for example, and look at the relationship between EDCs and diabetes, obesity, behavioral and reproductive disorders, and some cancers, to mention a few.

This program will draw on the breadth and depth of scientific expertise at NIEHS to:

· enhance the EPA’s Endocrine Disruptor Screening Program,

· contribute to efforts to reform and strengthen the Toxic Substances Control Act, and

· provide the evidence needed for regulatory agencies to accomplish their mission of protecting public health.

You can help Representative Moran and Senator Kerry get the bill passed by going to www.endocrinedisruption.com/endocrine.edlaw.php for a copy of the bill and a fact sheet.  Tell your members of Congress to cosponsor the bill, or add your organization’s name to the growing list of NGOs, scientists, and medical and public health professionals who support this effort (just click on ‘How you can help’ on the website). 

Please help us spread the word by forwarding this email to everyone you communicate with (listserves, facebook, twitter, myspace, friends and family, etc.).

Thank you,
TEDX, The Endocrine Disruption Exchange
Theo Colborn, President
Carol Kwiatkowski, Executive Director

Dish Texas results released

Independent analysis finds ties between air quality, health issues

Thursday, December 17, 2009
By Peggy Heinkel-Wolfe / Staff Writer

DISH TEXAS — Sixty-one percent of the health problems reported by residents in a survey are associated with the toxic air emissions detected here, according to an independent analysis released Thursday. Wilma Subra, a chemist and recipient of a 1999 MacArthur Fellows Program “genius” grant, compiled and analyzed the information gathered in the survey from 31 Dish-area residents who reported some type of health problem in October and who thought those problems might be related to the air quality. Subra tallied up the reported frequency of odor events — which ranged from one to two times per day to 24 days per month — and the types of symptoms.

The 15-page report, prepared by the nationwide nonprofit group Earthworks Oil and Gas Accountability Project and its Texas chapter, includes a breakdown of the eight participants who were smokers and the four who had a risk of occupational exposure. Although only one resident reported not having access to a doctor and nearly all reported their general health as good, 39 percent reported frequent illnesses. The report found that the most prevalent illnesses could be connected to those toxic emissions that were found above the state’s screening levels — from nasal irritation and nausea caused by benzene and xylene to vision impairment, muscle pain and weakness caused by sulfides.

Subra did not consider many of the dozens of chemicals found or their cumulative effects. Instead, she focused solely on the 16 chemicals detected at levels beyond the state’s screening limits. “They aren’t just a little over the limits,” Subra said. “They’re a lot over the limits.”

Celina Romero, an environmental attorney speaking on behalf of the Texas Pipeline Association, said the industry, too, is concerned about the high levels of emissions detected. “We don’t want that pollutant [benzene] to be generated by our activities,” Romero said.

The association recently wrote a letter to Gov. Rick Perry and legislative leaders, pledging to fund a study of the area with all stakeholders involved. Dish Mayor Calvin Tillman said he would not participate in a study funded by the association, citing the community’s distrust of the industry. In May, an industry-funded air quality study in Dish used a mobile monitoring unit to detect leaks and reported none. After reviewing Subra’s study, Tillman said he was surprised at the frequency residents reported smelling gas odors. “I don’t get that many complaints,” Tillman said. “They only call me when it gets really bad.” He repeated his call for immediate action. “If we keep waiting, we’ll see the tangible evidence; we’ll see the leukemia,” Tillman said. “That’s not gonna happen with me, not as long as I’m breathing.”

Megan’s story

Former Dish resident Megan Collins completed the survey. Collins moved to Dish in 2005. She said her health began to deteriorate in 2006, particularly after giving birth. She had respiratory problems, including terrible sinus infections, she said. Soon her balance was affected. Her doctor, an ear-nose-and-throat specialist, was baffled by the polyps that grew in her nose, she said. “In an instant, they would swell and I couldn’t breathe through my nose,” Collins said. For a time, she was treated with nasal sprays, but eventually she had surgery to have the polyps removed.

The problems continued, she said, and she was told to see a neurologist, but she wouldn’t go at first. After she woke in the night, sweaty and nauseous, and blacked out in the bathroom, she made an appointment. She went through a full battery of tests that ruled out all sorts of things, including multiple sclerosis. She went through another battery of tests after suffering a small stroke at work. Her doctors began to tell her there was nothing they could do for her, and ordered physical therapy to stem some of the balance loss and deal with the rigidity developing in her legs.

Meanwhile, her body never recovered from her second pregnancy, Collins said. She bled heavily for a year after her baby was born. At first, she and her doctor tried hormones and endometrial ablation, but the bleeding continued. At age 30, she had a hysterectomy. Collins moved back to Fort Worth to be closer to friends and family. She had begun to improve after the move, racking up a month of good balance scores at the physical therapist.

After Dish’s air quality study was reported in the news, Collins said she began to realize her problems could be connected to carbon disulfide. Then a new gas well was drilled near her home in Fort Worth. After fracking began, she relapsed. “I woke up the day before Thanksgiving staggering around the house,” Collins said. “My balance was gone again.”

Bigger than Dish

Don Young, a member of the Texas Oil and Gas Accountability Project and a Fort Worth activist, said that people outside of Dish are reporting the same kinds of health concerns to him. “We probably already have a lot of Megans out there,” Young said. “We all have gas wells and pipelines and production facilities nearby.” Too many public officials and civic groups haven’t grasped the depth of the problem, he said. “I told them five years ago and they are still saying ‘wait,’” said Young, who launched a Web site, Fort Worth Citizens Against Neighborhood Drilling Ordinance, in 2005, saying urban drilling would affect the environment, human health and safety.

Recommendations

The report includes a set of recommendations for state and local officials to address the problems. Subra recommended that when state health officials conduct tests of Dish residents early next year, the comprehensive battery include blood and urine tests that can measure the specific chemicals detected in the air.

She also recommended that the Texas Commission on Environmental Quality and the Railroad Commission of Texas increase their tracking of “operational upsets,” including spills, releases and permit violations. TCEQ should also set up a network that takes continuous measurements of the chemicals, air pollutants, sulfur compounds and weather conditions in Dish, Subra said.

Young said he’s worried that one of the recommendations, a process that allows a community to document odors and symptoms, while sorely needed, will completely overwhelm public health officials. “This year, a lot of people have been telling me, complaining, about respiratory problems they’ve never had before, or their asthma’s back after 20 years,” Young said. “There are lots of anecdotal reports like that.”

PEGGY HEINKEL-WOLFE can be reached at 940-566-6881. Her e-mail address is pheinkel-wolfe@dentonrc.com.

BY THE NUMBERS
* Number of Dish residents: 125
* Number who completed a survey: 31
* Number of households represented: 14
* Percent reporting respiratory ailments: 71
* Percent reporting frequent illnesses: 39
* Percent of health problems connected to the toxins: 61

SOURCE: Subra Co. survey  --

ON THE WEB
Learn more about the work of the Texas Oil and Gas Accountability Project, and read Wilma Subra’s full report online at
www.earthworksaction.org/Texas_OGAP.cfm

12/7/09 - PA DEP PRESS RELEASE

DEP Fines Chesapeake Appalachia LLC, Schlumberger Technology Corp. for Hydrochloric Acid Spill in Bradford County

Williamsport – The Department of Environmental Protection has fined Chesapeake Appalachia LLC and Schlumberger Technology Corp. $15,557 each for a 295-gallon hydrochloric acid spill at Chesapeake’s Chancellor well site in Asylum Township, Bradford County.

"Fortunately, this hazardous waste spill was promptly reported, which proved critical in limiting the environmental damage,” said DEP Northcentral Regional Director Robert Yowell.

Chesapeake staff notified DEP on Feb. 9 that a 21,000-gallon tank containing 36 percent hydrochloric acid was leaking. The acid was used for hydraulic fracturing.

When a DEP inspector arrived at the site, it was determined that the tank had two leaks and was losing about 7.5 gallons per hour of hydrochloric acid.

Chesapeake’s emergency contractor arrived that evening and removed free-standing acid from the ground with absorbent pads; excavated trenches to contain the acid; neutralized acid-contaminated soil with soda ash and hydrated lime; and transferred about 11,000 gallons of acid from the leaking tank to two temporary tanks.

About 126 tons of contaminated soil had to be excavated, and more than 13,800 gallons of a hydrochloric acid and water mixture were removed from the well site.

The fines were paid to the Commonwealth of Pennsylvania.

Chesapeake Appalachia LLC is a natural gas exploration company located in Charleston, W. Va., and Schlumberger Technology Corp. is a natural gas service company based in Sugar Land, Texas.
  


Released December 2, 2009
EPA Update on Dunkard Creek Fish Kill


JOSH FOX’s FIRST DOCUMENTARY FEATURE

GASLANDTHEMOVIE.COM

FOR IMMEDIATE RELEASE: DEC 2nd 2009
Press Contact: Josh Fox
917-913-9610  orifox (at) aol.com

An INTERNATIONAL WOW COMPANY PRODUCTION

GASLAND

=  SELECTED FOR SUNDANCE  =
Film will Premiere in U.S. Documentary Competition Category of 2010 Sundance Film Festival

Jan 21-31, 2010
Exact Showtimes/days TBA

MOVIE CHRONICLES LARGEST US DRILLING BOOM IN HISTORY

The largest domestic natural gas drilling boom in history has swept across the United States. A new method of drilling known as “Hydraulic Fracturing”, has opened up new territory in 34 states to extensive drilling, including the Marcellus Shale a vast formation that underlies most of Pennsylvania and New York, including the New York watershed and the Catskills/Poconos.

A CROSS COUNTRY JOURNEY- Water on Fire from Pennsylvania to Colorado…

When filmmaker Josh Fox discovers that Natural Gas drilling is coming to his area—the Catskills/Poconos region of Upstate New York and Pennsylvania, he sets off on a 24 state journey to uncover the deep consequences of the United States’ natural gas drilling boom. What he uncovers is truly shocking—water that can be lit on fire right out of the sink, chronically ill residents of drilling areas from disparate locations in the US all with the same mysterious symptoms, huge pools of toxic waste that kill cattle and vegetation well blowouts and huge gas explosions consistently covered up by state and federal regulatory agencies.

Part verite travelogue, part expose, part mystery, part bluegrass banjo meltdown, part showdown, Josh and his banjo encounter EPA whistleblowers, congressmen, world recognized scientists, and some of the most incredibly inspiring and heart-wrenching stories of ordinary Americans fighting against fossil fuel giants for environmental justice.

BACKGROUND

A major upswing in production took place in 2005 when the Congress and the Bush Administration exempted the industry and its new process of drilling, “Hydraulic Fracturing” from the Safe Drinking Water Act and many of our primary environmental protection laws. While the PR campaign for the Natural Gas industry promotes its product as “clean burning” it hides the fact that the new form of drilling, pioneered by Halliburton, is incredibly harmful to our environment and threatens to permanently contaminate a huge amount of the country’s water supply, create drastic air pollution conditions, and despoil huge areas. Despite overwhelming evidence of contamination, mismanagement and corruption, the general public remains unaware of the extreme effect the drilling may have on their lives.

FEATURING:

Josh Fox, Dr. Theo Colborn, EPA Whistleblower Weston Wilson, Congressman Maurice Hinchey (D-NY), Congresswoman Diana DeGette (D-CO), Congressman Louie Gohmert (R-TX), Al Appleton, (Former NYC DEP Commissioner), Scott Stringer, Manhattan Borough President, Lisa Bracken, Colorado Resident, Dr. Al Armendariz, EPA Administrator for Region 6, Wilma Subra, MacArthur Genius Award recipient in the field of Water/Soil contamination, John Fenton, Wyoming Rancher, Shirley McNall, New Mexico Resident, Rick Roles, Colorado Resident, James Gennaro, NYC Council Environmental Board Chair, and Residents from Dimock, PA, Booneville, AR, Dallas/Ft. Worth and more..
  

For immediate release 2009-12-1
Source: PennEnvironment

New Report Presents Policy Blueprint to Tackle Environmental and Health Threats of Marcellus Shale Gas Drilling

In the face of ongoing environmental damage and public health threats posed by Marcellus Shale drilling, a statewide environmental advocacy group released a new policy blueprint today that will tackle these challenges as drilling continues across the Commonwealth.

“Drilling for gas in the Marcellus Shale reserve began here just over three years ago, and already too many local drinking water supplies and waterways have been contaminated because of this drilling,” said Erika Staaf, Clean Water Advocate with PennEnvironment. “The faster Pennsylvania’s leaders work to pass comprehensive policies and regulations on this type of gas drilling, the less likely we’ll be to see yet another gas leak or wastewater spill, and the safer we’ll all be.”

The report, entitled Preserving Forests, Protecting Waterways outlines the most urgent and widespread environmental and public health concerns associated with Marcellus Shale gas drilling in Pennsylvania. The report also proposes a set of policy and regulatory solutions to address these problems.

Preserving Forests, Protecting Waterways outlines several concerns about the deep-well drilling process, also known as hydraulic fracturing. These concerns range from the large volume of water used for drilling; to the toxic makeup of the resulting waste fluid from deep well drilling that has created treatment and disposal challenges across the Commonwealth; to the contamination of drinking water supplies and rivers and streams that has already occurred across Pennsylvania due to improper drilling and wastewater handling practices.

In the report, PennEnvironment unveiled a blueprint showing simple and commonsense policies that could be put in place to protect the public’s health, drinking water sources and the environment as gas drilling continues in Pennsylvania.

The report calls on Pennsylvania’s elected officials to pass drilling protections that:

• Improve the public’s right to know and access to information about drilling;
• Put areas that supply drinking water, critical habitats, and public lands off limits to drilling;
• Pass mandatory minimum penalties for polluters who violate laws or destroy the environment, and implement severe penalties using existing clean water laws;
• Increase funding to the Department of Environmental Protection to allow for expanded enforcement, permit review and on-site review of drilling; and
• Strengthen existing clean water laws to deal with the rapid expansion of drilling.

“Our elected officials are going to have to make a decision: are they going to protect the public’s health, or are they going to put polluter profits ahead of the health of the Commonwealth’s citizens and environment?” said Staaf.

The Marcellus Shale gas reserve runs underneath portions of a handful of states from New York all the way down to Maryland. However, the largest stretch of the formation is found under Pennsylvania, across nearly two-thirds of the state. In total, the Marcellus shale gas reserve covers about 54,000 square miles, equal in size to the state of Florida, and runs 5,000-8,000 feet below the surface. The gas is found in the pores and pockets created by the Marcellus Shale.

As part of the hydraulic fracturing process, drilling companies use a cocktail of chemicals and sand to help break up the shale and access the gas. Companies in Pennsylvania have been shown to use between 85 and 150 different chemicals in this process, including arsenic, benzene, xylene, pesticides, among others. Many of these chemicals are suspected or known carcinogens, endocrine disruptors, or causes of respiratory, neurological other serious health problems.

PennEnvironment pointed to examples of river, stream, and groundwater pollution in several Pennsylvania locations. In Dimock, located in Susquehanna County, Cabot Oil and Gas Corporation was ordered in September to cease all drilling activities after it spilled roughly 8,000 gallons of dangerous drilling fluids killing fish and wildlife in the area. This cease and desist order was later lifted. Near Pittsburgh, improperly treated Marcellus drilling wastewater was discharged into the Monongahela River, causing a drinking water advisory for 325,000 citizens.

PennEnvironment asserted that the gas drilling industry’s lobbying efforts will make it challenging to implement some of these solutions. Gas drilling industries spent over $1 million in lobbying money this year.

“PennEnvironment’s policies ideas should serve as a blueprint for Pennsylvania’s leaders. If the legislature implements the policies, the state will be on its way toward allowing safe drilling while protecting public health and preserving our natural heritage for future generations of Pennsylvanians,” concluded Staaf.
  

For More Information:
Contact Erika Staaf
(412) 521-0943

ATTORNEY GENERAL CUOMO ANNOUNCES AGREEMENT WITH FORTUNA ENERGY ALLOWING N.Y. LANDOWNERS TO NEGOTIATE NEW NATURAL GAS LEASES

Natural gas drilling company agrees to stop misleading tactics to unilaterally extend leases on New Yorkers’ properties

Fortuna Energy, Inc. will allow hundreds of landowners out of the improperly extended leases and will pay $192,500 in settlement

ALBANY, N.Y. (November 24, 2009) - Attorney General Andrew M. Cuomo today announced that his office has reached an agreement with Fortuna Energy, Inc. (Fortuna) that will allow customers who were misled and ended up extending their natural gas leases with the company to renegotiate their terms. The settlement also stops Fortuna from employing industry-prevalent misleading and deceptive tactics to secure leases from New York landowners.

The company also agreed to pay $192,500 to the state in connection with the settlement.

“Drilling companies will not be permitted to use misleading letters and dubious legal claims to bully landowners,” said Attorney General Andrew Cuomo. “Many of these companies use their size and extensive resources to manipulate individual property owners who often cannot afford to hire a private attorney. This land-grab practice must stop. Today’s settlement is a good first step, as Fortuna is the first company to agree to stop these practices. My office will continue to investigate the activities of other drilling companies to ensure that New Yorkers who were wrongly pressured into lease extensions will have a chance to renegotiate their leases.”

Fortuna is one of the largest natural gas exploration companies in New York and engages in a natural gas drilling technique called horizontal, high-volume hydraulic fracturing (“horizontal drilling”). To do so, these companies obtain leases from landowners which authorize them to conduct operations on the landowners’ properties, with a lease typically expiring after five years if no operations are ongoing on the property.

Beginning in April 2009, Fortuna sent letters to hundreds of landowners whose natural gas leases with the company were about to expire. These letters falsely stated that Fortuna had the right to extend these leases without the permission of the landowners. Specifically, Fortuna falsely claimed that the leases contained provisions that allowed Fortuna to put the lease on hold until the company could obtain the required horizontal drilling permits from the New York State Department of Environmental Conservation. In fact, most landowners’ leases contained no such provisions.

After setting forth these false claims, Fortuna’s letters then instructed landowners that if they did not agree to a three-year extension of the lease with a small percentage increase in royalty payments, the company would file a notice with the appropriate county clerk of records declaring that the term of the lease was halted and obtain a lien against the property. These liens prevented landowners from freely negotiating drilling rights with other companies.

As a result of the Attorney General’s settlement, Fortuna has agreed to rescind the letters it sent to landowners. In addition, Fortuna will remove any liens placed on the land of New York property owner whose leases have expired and whose leases did not clearly disclose that they could be extended. Landowners who agreed to a lease extension as a result of Fortuna’s letter will be given the opportunity to cancel that extension. Fortuna will contact all affected landowners.

The Attorney General commended Fortuna for its cooperation in the investigation and willingness to take corrective action.

Dean Norton, President of New York Farm Bureau, said, “Farmers actively preserve as working agricultural landscapes over seven million acres of land in New York, including increasingly valuable mineral rights in areas such as the Marcellus Shale. New York Farm Bureau applauds the agreement between the Attorney General and Fortuna as an excellent example of cooperation that will greatly benefit farmers and landowners who signed contracts many years ago with little knowledge, and allow both parties to negotiate with better information.”

Nick Schoonover, Chairman of the Tioga Landowners Coalition, which represents 1,400 families and more than 102,000 acres in the Southern Tier, said, “Attorney General Cuomo’s involvement in this issue is a welcome addition that has produced positive results. He has been a vital partner to help protect landowners and to keep drilling companies honest. His office’s understanding of landowners’ rights and tenacity to protect residents is a great asset and I look forward to continuing to work with his office to further protect New York’s property-owning families.”

The case was handled by Assistant Attorney General Michael J. Danaher, Jr. under the supervision of Assistant Attorney General-in-Charge of the Binghamton Regional Office Dennis C. McCabe and Deputy Attorney General for Regional Affairs J. David Sampson.
  

Coalition Letter Requesting NY Governor Paterson to withdraw the DEC's Draft Supplemental Generic Environmental Impact Statement (dSGEIS) for Oil and Gas Mining

Pennsylvania Residents Sue Gas Driller for Contamination, Health Concerns

By Abrahm Lustgarten, ProPublica
November 20, 2009

Dimock resident Julie Sautner flushed her toilet one day to find a rush of earth-brown water. Tests showed her drinking water was high in aluminum, iron and methane. She is now part of a lawsuit against driller Cabot Oil and Gas.

Pennsylvania residents whose streams and fields have been damaged by toxic spills and whose drinking water has allegedly been contaminated by drilling for natural gas are suing the Houston-based energy company that drilled the wells. A worker at the company is among the 15 families bringing suit.

The civil case, filed Thursday in U.S District Court in Scranton, Pa., seeks to stop future drilling in the Marcellus Shale by Cabot Oil and Gas near the town of Dimock. It also seeks to set up a trust fund to cover medical treatment for residents who say they have been sickened by pollutants. Health problems listed in the complaint include neurological and gastrointestinal illnesses; the complaint also alleges that at least one person's blood tests show toxic levels of the same metals found in the contaminated water.

The suit alleges that Cabot allowed methane and metals to seep into drinking water wells, failed to uphold terms of its contracts with landowners, and acted fraudulently when it said that the drilling process, including the chemicals used in the underground manipulation process called hydraulic fracturing, could not contaminate groundwater and posed no harm to the people who live there.

"We've been lied to, we've been pushed around, and enough is enough," said Julie Sautner, whose drinking water began showing high levels of methane, iron and aluminum in February and who is receiving fresh water deliveries from Cabot. "We need to push back."

A Cabot spokesman, Ken Komoroski, did not return calls for comment.

Among the 15 families bringing the case to court is Nolan Scott Ely, a Cabot employee who could lend an inside perspective to the case on how the company operates and how it has approached the myriad problems the company has had in Dimock. Nolan Ely did not return calls for comment.

Ely's relatives, who have lived in Dimock for generations, own several properties where Cabot has wells. In January a well at the home of Michael Ely, one of Nolan Ely's relatives who is also part of the lawsuit, caught fire after methane leaked underground into the water supply. At the top of the hill near Michael Ely's home is Cabot's Ely 6H well, which is among the most productive horizontal wells drilled in the Marcellus Shale. Cabot has touted Ely 6H as being one of the company's most profitable.

Cabot's problems in Dimock go back to January, when a drinking water well belonging to Norma Fiorentino -- who is a plaintiff in the lawsuit -- exploded after a methane buildup. Since then methane and metals have been found in numerous drinking water wells in the region. In the last year Pennsylvania's Department of Environmental Protection has determined that Cabot was responsible for several spills of diesel fuel and drilling mud and for an 8,000-gallon leak of hydraulic fracturing fluids being prepared by a contractor, Halliburton, that seeped into a fresh water stream in September.

The DEP concluded early on that faulty well construction allowed contaminants to leak from Cabot's wells into water supplies. In September, following the fracturing fluid spill, the state temporarily banned Cabot from hydraulically fracturing any more wells near Dimock, but that prohibition was lifted several weeks later.

On Nov. 4 the DEP issued a document listing more than a dozen infractions, including fracturing fluid spills, diesel spills and well-construction problems that allowed methane gas to seep underground into private drinking water wells. The document lists 13 families whose drinking water is affected by the contamination, many of whom are being supplied fresh drinking water by Cabot.

The lawsuit, filed by the New York City-based law firm Jacob D. Fuchsberg and two other firms based in Philadelphia, Pa., and Buffalo, N.Y., did not specify what monetary damages would be sought from Cabot. Dimock residents tell ProPublica that they would be entitled to two thirds of the net judgment after expenses if they win.

Lawyers handling the case did not respond to requests for comment.

In addition to the cost of health care and health monitoring, the suit seeks compensation for the loss of property values in the rural area -- something that would allow affected residents there, if nothing else, to leave.

"I don't think we've asked for the moon here," said Victoria Switzer, a Dimock resident who is party to the suit. "I mean, Norma just wanted water, for goodness' sake. The compensation, if it were enough to know that we could go away, that's all I want."


The Percolating Pennsylvania Stream
New on YouTube


"DON'T DRINK THIS WATER"
In the Red Zone
Video by Josh Fox
TEDX is proud to announce the release of two of Theo Colborn's most popular lectures!

Learn how males are susceptible to endocrine disrupting effects in: 
“The Male Predicament” 

http://www.endocrinedisruption.com/endocrine.male.php

See the possible health effects of chemicals used and released during natural gas operations in:
What You Need to Know About Natural Gas Production”

http://www.endocrinedisruption.com/chemicals.video.php

 Click on the links above to view the videos
on our website or request a DVD

 TEDX - The Endocrine Disruption Exchange
P.O. Box 1407
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Penna. Proposed Rulemaking
Wastewater Treatment Requirements

25 PA. CODE CH. 95

PDF Document (57KB)

2009 Public Comment Sessions
(Must register in advance to speak)

December 14
5 p.m.
 
Cranberry Township Municipal Building
2525 Rochester Road
Cranberry Township, PA 16066-6499
December 15
5 p.m.
Department of Environmental Protection
Cambria District Office
286 Industrial Park Road
Ebensburg, PA 15931
December 16
5 p.m.
Department of Environmental Protection
Northcentral Regional Office
Goddard Conference Room
208 West Third Street,
Suite 101
Williamsport, PA 17701-6448
December 17
5 p.m.
Lehigh County Government Center
17 S. 7th Street
Allentown, PA 18101

Other Public Comments

Written Comments—Interested persons are invited to submit comments, suggestions or objections regarding the proposed regulation to the Environmental Quality Board, P. O. Box 8477, Harrisburg, PA 17105-8477 (express mail: Rachel Carson State Office Building, 16th Floor, 400 Market Street, Harrisburg, PA 17105-2301). Comments submitted by facsimile will not be accepted. Comments, suggestions or objections must be received by the Board by February 5, 2010. Interested persons may also submit a summary of their comments to the Board. The summary may not exceed one page in length and must also be received by the Board by February 5, 2010. The one-page summary will be provided to each member of the Board in the agenda packet distributed prior to the meeting at which the final-form regulation will be considered.

Electronic Comments—Comments may be submitted electronically to the Board at RegComments@dep.state. pa.us and must also be received by the Board by February 5, 2010. A subject heading of the proposal and a return name and address must be included in each transmission. If an acknowledgement of electronic comments is not received by the sender within 2 working days, the comments should be retransmitted to ensure receipt.

Lobbyists open wallets to
influence Pa. budget

By Mario F. Cattabiani
Philadelphia Inquirer Staff Writer
November 8, 2009

HARRISBURG - When it became clear that the state budget was in crisis mode, three industries with much at stake in Harrisburg opened their wallets.

Gambling interests, natural-gas drillers, and tobacco companies have since January spent more than $4.5 million combined on lobbying efforts, according to expense reports filed last week with the state.

Those industries were among the few winners in a budget ravaged by the recession.

Casinos are poised to introduce poker and other newly legalized table games. Natural-gas drillers and tobacco companies fought off new taxes.

Six-figure lobbying campaigns are not new in Pennsylvania's capital. And it's hard to know the extent to which such activity changes legislators' minds. Even so, critics say the dollar amounts speak for themselves.

Industries "wouldn't spend money like that if it didn't work," said Barry Kauffman, executive director of Common Cause of Pennsylvania, a watchdog group.

Lobbying expenditures are, in Kauffman's view, "a key indicator of how Harrisburg really works: Invest a lot of money, and you are going to have a lot more clout at the bargaining table."

Comparing recent expenditures with past lobbying efforts is difficult. Pennsylvania didn't enact its disclosure law until late 2006, long after most states. And unless they provide gifts or lodging, those who try to influence state decision makers must report little detail other than the totals spent.

Arthur Zaretsky, for one, isn't shy about describing the details: He hosted receptions and made his case to legislators over food and cigars - the latter being his business.

Zaretsky never thought he would need a lobbyist until it became clear to him this year that Gov. Rendell and Democratic legislators had set their sights on his livelihood. They wanted to help close the budget gap by taxing cigars.

Zaretsky, owner of Famous Smoke Shop, an Easton Internet and mail-order retailer of premium cigars, hired Eckert Seamans Cherin & Mellott L.L.C., a Pittsburgh law firm with a Harrisburg office.

"I needed to educate the politicians about exactly what it is we do and how many people we employ and that putting on a tax would not be a good idea," he said.

Eventually, Republican legislative leaders defeated the proposed cigar tax, along with one proposed for smokeless products such as chewing tobacco and snuff. Left standing was a new tax on little cigars - cigarillos.

In all, tobacco interests large and small spent nearly $1.5 million on lobbying from January through Sept. 30, records show.

Reynolds American Inc., whose subsidiary Conwood Co. is the nation's second-largest producer of smokeless tobacco products, devoted the most - $670,658.

Lobbying in the capital takes many forms - meetings with legislators, letter-writing, and "blast" e-mail campaigns orchestrated by lobbyists. There are studies and polls and white papers commissioned by lobbyists.

"There is nothing wrong with lobbying per se. It is just delivering information. It's valuable," said Rep. Greg Vitali (D., Delaware). "The problem comes when lobbyists try to do more than inform, try to ingratiate themselves to you. And that happens a lot in Harrisburg."

To natural-gas drillers, too, the writing was on the wall as early as February. That was when Rendell announced in his budget address that he was pushing for a new tax on the odorless, colorless gas found deep below Pennsylvania's soil.

Rendell said the tax would bring in about $100 million this year, thanks to what he called the "gold rush" of new drilling for natural gas in the vast underground formation known as the Marcellus Shale.

But in late August, the governor - to the surprise of some of his aides - said drilling executives had convinced him that imposing the tax this year would stunt the growth of the industry. Rendell said he would abandon his push until next year. The companies won another major victory in the prolonged budget battle, persuading lawmakers to open up thousands of additional acres of state forest land to drillers despite the concerns of environmentalists. The industry's argument: The state could bring in more revenue by leasing the land to drillers than by taxing the gas extracted.

As a whole, the natural-gas industry reported spending about $1.6 million on lobbying thus far this year.

Range Resources Appalachia L.L.C., a Texas company that has invested heavily in drilling in the Marcellus Shale, led the way, spending $605,817 this year - nearly triple the expenditure of the next-closest natural-gas company, Chesapeake Appalachia L.L.C. By comparison, Range Resources reported spending less than $200,000 on lobbying here last year.

"Natural gas has a big story to tell and a good story to tell," said Matthew M. Pitzarella, spokesman and registered lobbyist for Range Resources. "It is critically important that our elected leaders and regulators have a healthy understanding of modern natural-gas development and the potential for Pennsylvania."

As the economy sank, the odds of adding table games to slots parlors, once just a dream for the casino industry, improved greatly. Expanding gambling options created a "full-time employment opportunity" for the lobbying community, said Kauffman, of Common Cause.

The millions in revenue that roulette, poker, and blackjack could raise was too great a lure for lawmakers and Rendell to ignore, and the industry was ready to trumpet the pros.

The Sands Casino Resort Bethlehem, which opened in May, reported spending about $307,000 so far this year lobbying - more than any other gaming company in the state.

Such an amount came as no surprise in Harrisburg. Since the state approved slots parlors in 2004, the casino lobby has become an "influential force in the halls of government," said Rep. Paul Clymer (R., Bucks), the legislature's leading gambling foe.

The industry's pitch was simple: Table games meant new jobs and new revenue for a state in dire need of both.

"They have deep pockets and have made the right connections and, as a result, have been successful in getting their agenda passed," Clymer said. "One-and-a-half million dollars might seem like a lot of money, but when you compare it to what they will make on table games, well, it's a great investment."

The lobbyists' work isn't complete. Legislative leaders in the House and Senate have yet to come to terms on the details of the table-games legislation. Sticking points include how much the state would charge the casinos in taxes and licensing fees.
    

October 2009
EWG Testifies Before NYC Council

EWG Warns of Drilling Threat to NYC Drinking Water

Statement of Dusty Horwitt, JD
Senior Counsel, Environmental Working Group

Oversight Hearing on the Draft Supplemental Generic Environmental Impact Statement Relating to Drilling for Natural Gas in New York State Using Horizontal Drilling and Hydraulic Fracturing Before the New York City Council Committee on Environmental Protection Friday, October 23, 2009 at 10:00 a.m.

Submitted for the Record

Mr. Chairman, distinguished members of the committee: My name is Dusty Horwitt, and I am Senior Counsel at Environmental Working Group (EWG), a nonprofit research and advocacy organization based in Washington, DC, Oakland, California and Ames, Iowa. I thank the members of the Committee for this opportunity to testify.

For the last several years, Environmental Working Group has used government and industry records to track a virtually unprecedented increase in oil and gas drilling in the Western United States. We have found that much of this drilling has been completed with exemptions under most major federal environmental laws. As part of our work, we have investigated the practice pioneered by Halliburton known as hydraulic fracturing that is the subject of today’s hearing.

Last year, we worked with Theo Colborn, a distinguished scientist in Colorado who has identified dozens of chemicals used by the natural gas industry. We found that at least 65 chemicals used by the natural gas industry in Colorado – many of them used in hydraulic fracturing – were listed or regulated as hazardous substances under six federal statutes including the Clean Air Act, Clean Water Act and Superfund but are largely exempt from these laws when used in oil and gas drilling. We have continued to investigate hydraulic fracturing this year and have uncovered some troubling information about chemicals used in this process.

I’d like to add to the testimony I presented to the committee last year by making a few comments about New York State’s Department of Environmental Conservation’s Draft Supplemental Generic Environmental Impact Statement on the Oil, Gas and Solution Mining Regulatory Program, Well Permit Issuance for Horizontal Drilling and High-Volume Hydraulic Fracturing to Develop the Marcellus Shale and other Low-Permeability Gas Reservoirs.

We have reviewed much of the document and believe that the state is still not taking seriously the threat that hydraulic fracturing and natural gas drilling poses to New York City’s drinking water. Nor is the state taking seriously the risk of water contamination in other parts of New York. Our analysis confirms our belief that New York State should not allow drilling in the watershed for New York City’s drinking water supply nor should it allow drilling in other areas where drinking water supplies might be compromised. Given the seriousness of this issue and the 800-page length of the draft EIS, the state should give citizens more than 60 days to comment.

Petroleum Distillates are a Major Concern

Perhaps the leading reason to prevent natural gas drilling and hydraulic fracturing near drinking water supplies is the use of petroleum distillates. The DEC notes that “diesel-based fracturing fluid is not proposed or reviewed by this Supplement….” However, Environmental Working Group has recently conducted an analysis which found that diesel – like any substance distilled from crude oil – is a petroleum distillate. And the DEC has identified at least 14 different petroleum distillates that are used or proposed for use in the Marcellus Shale formation in New York. The DEC has also identified as chemicals that are used or are likely to be used in New York’s Marcellus Shale formation aromatic hydrocarbons that are likely to be found in petroleum distillates.

Environmental Working Group will release its complete analysis of petroleum distillates within the next few weeks, but I will share a few of our findings today. Our research shows that petroleum distillates are likely to contain benzene, one of the aromatic hydrocarbons identified by the state. The EPA has found benzene to be a known human carcinogen that is toxic in water at levels greater than five parts per billion. Petroleum distillates are also likely to contain all of the so-called BTEX chemicals – benzene, toluene, ethylbenzene and xylene. The EPA has concluded that all of these substances are toxic in water at very low levels.

Diesel has received much of the attention when it comes to dangerous fracturing fluids. But when companies say that they will not use diesel and then use petroleum distillates, the data shows that it’s a bit like promising not to smoke Marlboros and then smoking Camels, Kools, Virginia Slims and every other type of cigarette. As far as the toxic components, the products are roughly the same.

A major concern with petroleum distillates is benzene. To put the toxicity of benzene in perspective, and to demonstrate the risks to water supplies for New York City and other towns, consider these facts from the DEC’s draft EIS. The DEC estimates that the amount of water used to hydraulically fracture a single well in the Marcellus Shale will range from about one million gallons to eight million gallons. The DEC estimates that the amount of friction reducer mixed with the water will comprise about 0.08 percent of the total fracturing solution.

Petroleum distillates are commonly used as friction reducers and are also used in other components of fracturing solutions. Therefore, the amount of petroleum distillate used for fracturing a well in New York is likely to range from 800 gallons to 6,400 gallons (0.08 percent of between one and eight million gallons of water). Published levels of benzene in petroleum distillates with names similar to those used or likely to be used in New York range from 700 parts per million for 140˚ flash aliphatic solvent, to 1,000 parts per million for Stoddard Solvent to 4,000 parts per million for kerosene to 93,000 parts per million in naphtha solvents.

In other words, these levels of benzene range from 140,000 times the EPA’s safe level to 18.6 million times the EPA’s safe level. These figures mean that if 800 gallons of petroleum distillate were to contaminate a water supply, depending on the benzene concentration, it would likely take somewhere between 112 million gallons (800 X 140,000) and 14.9 billion gallons (800 X 18.6 million) of water to dilute the benzene to EPA’s safe level. If 6,400 gallons of petroleum distillate were to contaminate a water supply, it would likely take somewhere between 896 million and 119 billion gallons of water to dilute the benzene to EPA’s safe levels.

For comparison, the total amount of water used daily by New York City according to the DEC is 650 million gallons, or less than the amount of water that would be needed to dilute the benzene in a spill of petroleum distillates in many scenarios. In some cases, even the total amount of water used each day by the entire state of New York (9-10 billion gallons per day) would not be enough.

To be sure, it is possible that all or part of the petroleum distillate used to fracture a well would not contaminate water supplies. Some or all could be trapped underground. Petroleum distillate that is spilled prior to fracturing or after fracturing in drilling wastewater might be absorbed by soil or otherwise contained before it reaches water supplies.

But the amounts of petroleum distillate likely to be used are significant and petroleum distillate in the form of diesel will be used to power drilling equipment even if diesel is not used in hydraulic fracturing. The DEC reports that an average of 29,000 gallons of diesel fuel was required to complete fracturing jobs in the Marcellus Shale in West Virginia and Pennsylvania. This diesel used to run equipment will likely add to the total amount of petroleum distillate used for the fracturing fluid. The result is an increased likelihood that, somewhere in the process, some quantity of petroleum distillate will spill or leak, threatening water supplies with benzene contamination. It is also important to note that there may be thousands of wells drilled in New York, each of which could cause benzene contamination. And, as we have seen, a little bit of benzene goes a long way.

Recent Cases of Contamination Linked to Fracturing, Drilling

Contamination from benzene or related chemicals associated with drilling is not just a hypothetical scenario. In the summer of 2008, in one of the few government tests ever conducted on water contamination near natural gas fields, the Bureau of Land Management found benzene in drinking water wells in Sublette County, Wyoming. Although researchers did not identify the source of the contamination, the only likely source in the otherwise rural area is intensive natural gas drilling involving hydraulic fracturing.

In May 2008, Colorado outfitter Ned Prather drank water from the tap in his rural cabin. The water was contaminated with all of the BTEX chemicals (benzene, toluene, ethylbenzene and xylene), including 100 parts per billion benzene. Natural gas companies have drilled 18 wells within 3,000 feet of the spring that supplies his water, there is a pit of production water on a hill overlooking his cabin, a second pit was reclaimed shortly after Prather took his toxic drink, and in the winter of 2007, a company spilled nearly 8,000 gallons of diesel fuel on a nearby hill when a spigot was accidentally left open. The Denver Post reported that “bad water has decimated his outfitting business. Hunters don't want to stay in a cabin with suspect water or to harvest deer and elk they fear could be drinking contaminated water.” Thus far, medical tests have found no damage to Prather, but he has suffered unexplained health problems that predate his toxic drink. His hands and head shake and the tremors have grown worse recently. “Not that many people have turned up a glass and drank that much benzene at one time,” he said.

In March and April 2004, the natural gas company EnCana fractured an improperly cemented well in Garfield County, Colorado. Gas escaped from about 7,000 feet underground, entered a natural fracture about 3,000 feet below the surface, and traveled laterally about 3,500 feet from the well where it contaminated Divide Creek, forcing local residents to drink bottled water. Inspectors found high levels of benzene in the water (99 parts per billion) the day after residents noticed unusual bubbles in the creek. One nearby resident, Lisa Bracken, described the creek as having so many bubbles that it looked like a “popped can of soda.” Another nearby resident, Steve Thompson, said that "I came down with a funnel and scooped some of the biggest bubbles with it….I lit the bubbles with a match, and they burned like gas. It even melted my funnel."

A report prepared for Garfield County found that the contamination also included methane gas and toluene, ethylbenzene and xyleneithin. In August 2004, the COGCC fined EnCana a record $371,200 and imposed a moratorium on drilling within a two-mile radius of the seep. EnCana has operated an air sparge system for the past four years to reduce benzene levels in the creek. This system involves the injection of air into the creek to dissipate benzene into the atmosphere.

In the spring of this year, Pennsylvania officials fined Cabot Oil and Gas for an 800-gallon diesel spill from a truck that overturned. It is unclear whether benzene contamination resulted from the spill, but diesel typically contains benzene. Recently, state officials ordered Cabot Oil and Gas to stop hydraulic fracturing operations in Susquehanna County, Pennsylvania after the company was involved in three spills in nine days.

The DEC has noted that many states have reported no contamination from hydraulic fracturing, but we are not aware that any states have even looked for contamination from fracturing, including New York. Late last year, we sent a Freedom of Information Law request to the DEC asking for any tests that the agency had conducted on water contamination from hydraulic fracturing. The DEC said that it had conducted none, nor did it have tests conducted by others.

In addition to the recent discovery of benzene in water wells in Sublette County, Wyoming by the Bureau of Land Management, the EPA this spring found that 11 of 39 water wells near Pavillion, Wyoming were contaminated with substances that may be linked to nearby gas drilling. More tests are planned.

And Garfield County, Colorado officials released a study last year that linked methane contamination in water wells to methane in the same rock layer a mile and a half underground where gas companies are drilling. The scientists who conducted the study did not determine how the gas reached the water, but their results provide evidence that gas or other contaminants from drilling could work their way to the surface from deep underground. "It challenges the view that natural gas, and the suite of hydrocarbons that exist around it, is isolated from water supplies by its extreme depth," Judith Jordan, the oil and gas liaison for Garfield County told ProPublica.

Disclosure Needed: Nurse’s Near-Death Experience Could be Repeated

The DEC has proposed that companies be required to disclose their fracturing chemicals before fracturing begins. While this requirement is a step in the right direction, it is unclear whether this disclosure would be to the DEC or to the general public. It is critical that the public know what chemicals companies are injecting into each well including Chemical Abstract Services (CAS) numbers so that the public and first responders can easily know what chemicals are being used. The DEC deserves credit for including CAS numbers in the DSGEIS.

Public disclosure is especially important because one of the companies that supplied information to the DEC about chemicals proposed for use in fracturing shale formations in New York is perhaps the most infamous fracturing company in terms of public disclosure. In Durango, Colorado, in 2008, a valve broke on a tank carrying 300 gallons of a fracturing fluid called ZetaFlow manufactured by Weatherford, the Houston-based company that supplied chemical information to DEC. About half of the ZetaFlow spilled out. According to Clinton Marshall, who was one of the workers transporting the chemical, most of the spill was captured by a spill container, implying that some of the spill escaped. Cathy Behr, a nurse who later treated Marshall came in contact with the ZetaFlow that had spilled on him. As a result, Behr became gravely ill, suffering respiratory failure, heart failure and liver failure. As Behr’s doctor worked to save her life, Weatherford refused to disclose the chemical’s contents, citing trade secrets. Behr later recovered (Slowthower 2008, Hanel 2008a, Hanel 2008b).

ZetaFlow is still advertised on Weatherford’s website. “This ZetaFlow system can be used on all types of formations, including a variety of sandstones, carbonates, coals and shales,” the company says. ZetaFlow is not mentioned in the DSGEIS, but the DEC must ensure that before ZetaFlow or other chemicals are used in the state, their names and constituents are made publicly available. And the state should prohibit the use of any chemicals, such as ZetaFlow, that are not proven safe.

Recommendations

The DEC deserves credit for proposing tougher standards for high-volume hydraulic fracturing such as water well testing before drilling and limits on the volume of wastewater that can be stored in pits and the duration that such water can remain in pits.

However, the risks from drilling, particularly with benzene, are so great that Environmental Working Group continues to recommend that the DEC prohibit drilling in the watershed for New York City’s drinking water supply and in all other areas where drinking water supplies might be compromised. These risks are compounded by the fact the DEC likely lacks adequate staff to enforce proposed or existing standards as Speaker Quinn demonstrated in her questioning of the DEC last September. Our upcoming investigation of petroleum distillates indicates that staffing shortages also exist for state and federal agencies charged with enforcing the Safe Drinking Water Act.

EWG also urges the DEC to adopt our recommendations made at previous city council hearings. These recommendations include:

1) Requiring public disclosure of chemicals used to drill each well prior to drilling including chemicals used in hydraulic fracturing and
2) Prohibiting the use of chemicals that could compromise the quality of water supplies and that are not demonstrated to be safe for humans and the environment.

The state should apply our recommended standards to all oil and natural gas drilling even if such drilling does not include “high-volume hydraulic fracturing” or horizontal drilling. Drilling for oil and natural gas involves extremely toxic chemicals that are harmful at microscopic levels. Just because drilling uses a lower volume of fracturing fluid or is strictly vertical does not mean that it is safer.

Thank you for this opportunity to testify. I look forward to your questions.

[Source URL]
  

This summer, two Penn State University professors, Timothy Considine and Robert Watson, both from the College of Earth and Mineral Sciences, passed off a paid advertisement of gas industry talking points as a research paper. 
   
While Considine and Watson have good academic credentials, those credentials are not within the discipline of community economics. Watson is a physical scientist and Considine has done most of his economic work on fuel markets.
  
Watson admits that the Marcellus Shale Committee, a group of 50 industry companies, paid Penn State $100,000 for the paper. At least one version, circulated in Harrisburg, during the tax debate, didn’t include that fact.
  
Considine and Watson wildly over reached. They claimed the economic impact here in 2008 was 28% of that achieved in the Barnett Shale in Texas and had already created 32.5% of the Barnett’s jobs. That from only 431 wells at the time, or 6% of the then current 7170 Barnett wells.
   
“An Emerging Giant”, was met with heavy criticism and outright contempt by a number of organizations and scholars. The Pennsylvania Budget and Policy Center, a nonpartisan, policy study concluded  “The “An Emerging Giant” report serves the narrow financial interests of its funder, the natural gas industry.”  At a Marcellus Shale seminar in August, the acting secretary of conservation and natural resources, John Quigley, introduced Watson by saying that Watson's study was “unsubstantiated by facts”.  Nevertheless, the well funded gas industry PR machine has trumpeted “Emerging Giant” nationally so it has become the dominant word.
  
The gas industry is using this inflated and hyped study to stampede our political and business leader into overlooking the enormous damage unregulated drilling will do to our environment, way of life, and ultimately to our economy.
  

DEP Fines Cabot Oil and Gas Corp. $56,650 for Susquehanna County Spills

Company Had Three Spills Totaling 8,000 Gallons in Less Than One Week

Williamsport – (10/22/09) – The Department of Environmental Protection has fined Cabot Oil and Gas Corp. $56,650 for three spills of a water/liquid gel mixture at its Heitsman natural gas well in Dimock Township, Susquehanna County, last month.
 
“This penalty was assessed for Cabot’s violations of the Clean Streams Law, Solid Waste Management Act and Oil and Gas Act,” said DEP Northcentral Regional Director Robert Yowell. “We expect that Cabot will do a better job in the future of overseeing its contractors now that the company has an improved preparedness, prevention and contingency plan in place.”
 
Cabot had two spills at its Heitsman well on Sept. 16 and a third spill on Sept. 22. The spills totaled about 8,000 gallons and caused pollution in Stevens Creek and a nearby wetland. All three spills involved a water/liquid gel mixture used in the hydro fracturing process.
 
On Sept. 24, DEP ordered Cabot to cease all hydro fracturing in Susquehanna County and submit an updated plan and an engineering study. Cabot submitted those documents on Oct. 6.
  
DEP reviewed and approved the documents on Oct. 16, and gave Cabot the approval to resume hydro fracturing in the county.

  


Photos of the gas purge and flare at the MarkWest Houston Gas Plant on Election Day 11/3/09

Note: They flared again the following night, under the cover of darkness. What were people downwind in Houston and Canonsburg Pa breathing?

   Smoke filled the valley with stench for miles
Flare could be easily seen 5 miles away

Texas lawmaker calls for action after toxin found at gas operations

By CHRIS HAWES / WFAA-TV
Tuesday, November 3, 2009

 

FORT WORTH — State Sen. Wendy Davis is expressing surprise and concern this week about preliminary results of air testing in the Barnett Shale. As a result, she's asking Lt. Governor David Dewhurst to convene a Senate investigation prior to the next session.

"It seems as though there are some very serious health concerns that should cause us alarm," Davis said. Davis is referring to the Texas Commission on Environmental Quality's discovery of a cancer-causing toxin in the air near some natural gas operations in the Barnett Shale.

The benzene levels were discovered as part of a larger study on emissions being conducted with the help of an infrared camera that identifies heat. Long-term exposure to benzene can lead to leukemia.

On Monday, Davis sent a letter to Lt. Gov. David Dewhurst, calling for a Senate investigation into the environmental impacts of gas production processes, and expressing concern over the benzene levels discovered both by TCEQ and a private study in DISH, a small Denton County community. In both cases, TCEQ says additional testing is needed.

Davis had previously requested an examination of the environmental impacts of the Barnett Shale prior to the next legislative session as part of a larger list of proposed issues to be considered.

However, in Monday's letter, Davis summarized the concerns about benzene levels found in Barnett Shale air. "Given all of the above, I respectfully re-urge your appointment of an interim study to review current data, to determine whether further testing is necessary, and to recommend pollution control methods to assure protection of the health of the community that we represent," Davis wrote/

Thus far, Dewhurst's office has issued no response to Davis' request.



How Marcellus Shale gas came to be tax-exempt in Pa.

Desperate for revenue, Gov. Rendell chose not to tax the “gold rush.”

By Mario F. Cattabiani and Amy Worden
Inquirer Staff Writers

HARRISBURG - All through Pennsylvania's 101-day budget impasse, Gov. Rendell spoke of pain.

A recession-weary state had to tighten its belt. Revenues had to rise - income tax, sales tax, new taxes on whole industries. "We can't get this budget resolved," Rendell said, "without everyone feeling some pain."

But when the budget was finally signed Oct. 9, one industry came away pain-free.

The natural-gas industry's leaders and lobbyists beat back Rendell's proposal to tax gas as it is pulled to the surface from the rich black-rock reservoir known as the Marcellus Shale.

So, as drilling rigs are sprouting in the state's northern tier and southwestern corner, the gas those rigs are extracting still isn't taxed. That makes Pennsylvania unique among the 15 states that produce the most natural gas.

What's more, the industry persuaded Harrisburg to lease more public land to gas drillers - even as the state's budget for environmental protection was being sharply cut.

What happened to Rendell's gas-tax proposal?

He says the industry made good arguments for staving it off. He did not want to slow the "gold rush," as he called it, of jobs and commerce the drillers would bring.

One legislator came away with a more cynical view.

"The same old influential interest groups getting their way," said State Rep. Greg Vitali (D., Delaware). "It was just another day in Harrisburg."

What follows is a closer look at some key moments in the short life of Rendell's proposal to help balance the budget by taxing natural gas.

Tapping "the gold rush." As Rendell prepared his Feb. 4 budget address, a boom was under way. Natural-gas industry representatives were fanning out across the state, securing leases and drilling wells at twice last year's pace.

Rendell, a policy wonk, did his homework. He spoke with Gov. Joe Manchin III of West Virginia, a state that also sits atop the Marcellus Shale and has taxed natural gas for years.

In his budget address, Rendell proposed to tax gas extracted in Pennsylvania.

Rendell said Manchin, a fellow Democrat, had assured him that West Virginia's tax did not "inhibit gas extraction and that it is continuing at a record pace, and it's reaping critically needed revenues so the state can provide services to its citizens."

Rendell's plan matched West Virginia's - a 5 percent tax on the value of natural gas at the wellhead, plus 4.7 cents per 1,000 cubic feet of natural gas extracted.

By Rendell's estimates, such a tax could raise $107 million for Pennsylvania in its first year, helping fill a billion-dollar budget gap.

In a recent interview, Manchin described what he said to Rendell months ago.

"The Marcellus Shale is a tremendous producer. A severance tax will not deter" the drillers, Manchin said. "Believe me, if we didn't have the gas, they wouldn't be here."

Manchin said he had faced industry complaints in 2005 when he proposed to expand the tax, with some companies threatening to leave.

He offered to have the state buy up their leases "so you don't lose one penny." No one took him up on his offer.

Skin in the game. By spring, Rendell's tax proposal was the talk of the industry. In a June 1 panel discussion held by a New York investment firm, four executives spoke of what might happen next in Pennsylvania.

They talked of the Marcellus "play" - industry parlance for a focused drilling campaign. Rich Weber, president and chief operating officer of Atlas Energy Resources of Pittsburgh, pooh-poohed Rendell's tax proposal.

"I think the shot over the bow from the governor was just that. He wanted to spark discussion," Weber said, according to a published transcript. "I think the legislature is going to kill it for this year. It may be inevitable down the road but who knows."

Jim Fraser, senior vice president of Talisman Energy Inc. in Calgary, Alberta, did some math. "We have encouraged the state to lease some more of that land," he said, adding that his "back of an envelope" figures showed the state could raise more money by leasing land to drillers than by taxing the gas.

Chad Stephens, senior vice president of Range Resources Corp. of Texas, weighed the pros and cons.

"Maybe at some point in the far-out future if they introduce a severance tax, once the play gets some legs, that's a different story," he said. "But if they do implement the tax, at least the government will have some skin in the game." State officials might become "more cooperative and try to help the play along."

Murry S. Gerber, chairman and chief executive officer of EQT Corp., spoke next.

"Chad said it right. Skin in the game," Gerber said. "The local governments need to get some of this money back. I mean, we are on their roads."

But the state had to be flexible, he said. "If it's all take and no give . . . we should just say no as long as we can."

The meeting. Four days later, Gerber sat with his aides and state officials in his company's sixth-floor conference room in Pittsburgh. His guests included Rendell.

Gerber knew the governor well. He'd donated $30,000 to Rendell's 2006 reelection fund, records show. Last October, Rendell went to Pittsburgh with a check of his own - $2.8 million in state grants and tax credits to help Gerber's company expand operations and add 354 jobs.

Gerber requested the June 5 meeting. He hoped to convince Rendell that the state should consider all the various natural-gas issues - wastewater treatment, leasing royalties - and not just a tax, said Kevin West, managing director of external affairs and one of four EQT executives at the meeting.

Gerber did most of the talking. Rendell asked questions. "You could see the governor turning a little bit" to Gerber's pitch, West said last week.

Rendell did not say he would abandon the tax. At the meeting's end, he said he would create a task force of stakeholders - legislators, environmental officials, industry executives - to examine Marcellus Shale issues.

"We were very pleased with that," said West. "We felt he adopted our position."

The study. As the summer rolled on and the budget impasse deepened, the industry made its case in Harrisburg, spending more than $1 million to lobby legislators in the first half of the year alone, state reports showed.

Foes of the gas tax began citing a Pennsylvania State University study, "An Emerging Giant: Prospects and Economic Impacts of Developing the Marcellus Shale Natural Gas Play."

The study said the tax would backfire.

Marcellus Shale drilling in Pennsylvania was in "the takeoff phase," the study said. It concluded that a severance tax would decrease revenue by reducing drilling and slowing job growth.

Without the tax, the study said, the Marcellus reserve could become a bonanza for the state "if pro-growth policies are pursued that unleash the entrepreneurial spirit."

The study's primary author, Robert Watson, said Friday that the shale contains enough gas to make Pennsylvania "an OPEC nation."

Watson, an emeritus professor of petroleum and natural-gas engineering, also acknowledged that the industry had funded the study.

The Marcellus Shale Committee, a group of more than 50 natural-gas and drilling companies, commissioned the study and paid Penn State about $100,000 for it, he said.

But one version of the study that circulated in Harrisburg did not mention the funding source. Subsequent copies did. Watson said the omission had been simply a mistake made in his rush to publish.

Pennsylvania's environmental community lashed out at the study as a tool of a deep-pocketed industry. Even the state's top conservation official questioned its findings.

At a Marcellus Shale seminar in August, the acting secretary of conservation and natural resources, John Quigley, rose to introduce Watson. Quigley also told the audience - a citizens' advisory panel on environmental policy - that Watson's study was unsubstantiated by facts.

That prompted Watson to stand up and yell, twice, "That's bull-."

Quigley remembers the meeting. "I pointed out that the study was paid for by the industry, and that any suggestion that a severance tax would strangle the infant industry in its crib strains credulity," he said Friday.

Watson stands by his findings. "The procedure we used was scientific," he said. "We would have come up with the same answers regardless of who paid for it."

The surprise. Until August, there was no change in Rendell's public stance. He wanted the tax.

But in a briefing for reporters Aug. 31, the governor said, "It won't be in the mix this year."

Rendell said industry executives had convinced him that imposing a tax now would stunt drilling. Also, he said a drop in the price of natural gas made the tax impractical. And Senate Republicans were so opposed to the tax that it would not pass.

It would have to wait until next year, Rendell said.

"We felt we should let the industry get off to a good start," he said, "and that surpasses our need for money."

His change of position was news to many - including Steve Crawford, Rendell's chief of staff. "The governor's press conferences are always newsworthy," Crawford said last week, "and sometimes they are even newsworthy to those of us closest to him."

His switch also surprised his party's lea   ders in the legislature, who made a last-ditch effort to revive the tax before the budget was signed.

Rendell declined requests for an interview for this article, but he authorized aides to describe several meetings he had with industry officials.

Gary Tuma, Rendell's press secretary, said the governor had changed his mind on the tax in July, but had not told aides at that time.

As for the Marcellus Shale task force that Rendell told Gerber he'd create: The governor abandoned the idea because he'd decided to nix the tax for this year, Tuma said.

The tax fight is over for now. But the industry is still stockpiling resources for future contact with Pennsylvania officeholders.

Range Resources, the Texas driller, recently hired away a top Rendell aide to be its vice president for government relations and regulatory affairs. K. Scott Roy had been Rendell's executive deputy chief of staff and his liaison to the natural-gas industry and environmental groups.

Range Resources also hosted a luncheon this month near Pittsburgh for legislators from both parties. After sandwiches, the dozen legislators toured a drilling site.

Among those at the lunch was State Rep. Timothy J. Solobay (D., Washington), an unabashed natural-gas cheerleader. He's seen drillers transform his district. Steamfitters and welders are getting work. Job-training and truck-driving classes are full.

Natural gas "is the new steel," said Solobay. "They all told me is that severance [tax] is coming," he said of industry executives. "They are only asking for a couple of years to get the infrastructure in place."

State Sen. Jake Corman (R., Centre) has seen drill rigs rising in his district, too. Eventually, Corman said, a tax could help towns defray the related costs. "I think a day will come when there's a severance tax," he said. "I just didn't think that day was today."

Others are less sanguine. "This was the best time to do it," State Rep. David K. Levdansky (D., Allegheny) said of the tax. Next year, he said, "the industry will just dig in their heels even harder in hopes that a Republican governor more sympathetic to their cause wins election."

In June, Range Resources launched a political action committee in Pennsylvania. Nine executives put in a total of $49,500. The PAC's first donation, for $5,000, went to a Republican campaign fund begun by state Attorney General Tom Corbett.

He's running for governor next year.


The investment bank RBC Capital Markets invited institutional investors and corporate executives to a conference on global energy in June. A transcript of the event shows several industry executives discussing, among other issues, Gov. Rendell's February proposal to tax natural-gas extraction. To read the transcript, go to http://go.philly.com/marcellus2


Contact staff writer Mario F. Cattabiani at 717-787-5990 or mcattabiani@phillynews.com.

Inquirer staff writers Larry King and Joseph Tanfani contributed to this article.


10-19-09 Press Release

Analysis Links Pollutants with Barnett Shale Gas and Oil Production

Environmental Defense Fund today released an analysis that compared trends in air pollution data collected by the state with public records of oil and gas activity in the Barnett Shale and found a correlation between the ambient levels of common hydrocarbons and the amount of condensate produced by natural gas wells in Denton County.

A related analysis released today of state air pollution monitoring data between 2002 and 2008 found that the air in Denton county contained more non-methane hydrocarbons (including some potentially hazardous pollutants) than any of the other counties in the Dallas-Fort Worth area where such monitoring was conducted.

Hydrocarbons include many chemicals found in natural gas and petroleum. Most are considered volatile organic compounds (VOCs), which contribute to the formation of ground-level ozone or smog. Environmentalists are also concerned because methane, a main component in natural gas, contributes to greenhouse gas emissions and climate change.

"EDF is not opposed to shale drilling for natural gas, a valuable national resource and cleaner transition fuel," said Ramón Alvarez, Ph.D., senior scientist who led the analyses. "We simply want to see production done in the most environmentally responsible way possible. The good news is that many emissions controls can actually increase profits for natural gas producers."

Results of these analyses come at a time when the oil and gas industry is drawing increased attention from the development of unconventional resources like the Barnett Shale, some of which are located near population centers. The New York Times reported last week about the challenge of persuading gas and oil producers to employ emission reduction measures that frequently pay for themselves. 

Numerous cost-effective ways exist to reduce emissions from oil and gas production. Most of these measures have paybacks of less than one year. "An environmental trifecta is within our reach," Alvarez said. "Oil and gas operators can use proven emissions controls to increase profits after short payback periods, while helping improve local air quality and minimizing climate change."

The oil and gas industry releases about 37 tons of VOC emissions per day in Denton County, which ranks second in the region behind Wise County's 42 tons per day. These emissions are substantial, nearly equal to a third of the 100 tons of VOC emissions produced daily from all of the cars and trucks in the nine-county DFW ozone nonattainment area.

Proposed recommendations by EDF include: expansion of VOC monitoring, especially in other Barnett Shale counties with significant condensate production (e.g., Wise, Hood, Parker); adoption of cost-effective oil and gas emissions controls, beginning with condensate tanks; and analyzing the effects of emissions in the Barnett Shale area on health and regional ozone levels.

Analyses are available via downloadable PDFs on the EDF website. To access the self-guided presentation of EDF's analysis, visit here. To access the related analysis "Analysis of AutoGC and VOC Canister Data in the DFW Area" by Dr. Birnur Guven, visit here.


N E W S   R E L E A S E
COMMONWEALTH OF PENNSYLVANIA

COMMONWEALTH OF PENNSYLVANIA
Dept. of Environmental Protection
Commonwealth News Bureau
Room 308, Main Capitol Building
Harrisburg, PA 17120

FOR IMMEDIATE RELEASE
10/14/2009

CONTACT:
Helen Humphreys
Phone: (412) 442-4183

DEP Detects Total Dissolved Solids Over Standards in Monongahela River

PITTSBURGH (Oct. 14) -- The Department of Environmental Protection announced today that levels of total dissolved solids, or TDS, in the Monongahela River have again exceeded the water quality standard for taste and odor established by state and federal authorities.

“DEP is working closely with water suppliers to monitor TDS levels on the Monongahela,” said Environmental Protection Secretary John Hanger. “Already 12 monitors, funded in part by DEP, have been installed on the river and its tributaries. The resulting data will create an early warning system for water suppliers and industry and draw a sharper focus on the river’s water quality.”

Conductivity readings taken by the River Alert and Information Network, or RAIN, U.S. Geological Survey gages along the Monongahela and analytical data provided by Carnegie Mellon University, show that TDS levels began exceeding 500 parts per million (ppm) on Sept. 22 near Crucible, Greene County. Over the last two weeks, additional violations of the 500 ppm standard have been documented as far downstream as the borough of Elizabeth. The total river length currently affected is 46 miles. The highest TDS levels documented this fall were at Brownsville on Sept. 29 where a level of 577 ppm was found.

Conductivity levels, which are an indicator for TDS, peaked on Oct. 10 at 867 micro semens/centimeter, roughly equal to 600 ppm TDS, at Elizabeth. Confirmatory water samples have been sent for lab analysis. As was done last year, lab results will be posted to the DEP Web site. The results can be accessed by clicking on the southwest region to the left of the home page.

TDS is a measure of all elements dissolved in water and can include carbonates, chlorides, sulfates, nitrates, sodium, potassium, calcium and magnesium.

Sources of TDS can include sewage treatment plants, stormwater runoff, metal mining, mining, abandoned mine drainage, meat packing plants, vegetable processing plants, grain milling plants, bakeries, beverage processing facilities, agricultural chemical manufacturing, oil and gas drilling, petroleum refining, leather processing, primary metal industries, fabricated metal products, electric services, refuse systems, scrap and waste material industries.

The department, as well as the U.S. Environmental Protection Agency, have established secondary maximum contaminant levels of 500 ppm of TDS for the commonwealth’s drinking water and waterways.

Concerned residents may opt to use bottled water for drinking and preparing food until the levels of TDS decrease to normal levels.

Water treatment plants are not equipped to remove TDS from drinking water and therefore the increased levels may cause drinking water to taste salty.

Last fall, for the first time since data has been collected, TDS levels in more than 90 miles of the river exceeded 500 ppm with levels in excess of 900 ppm recorded.

With the assistance of DEP, the RAIN Network has installed water quality probes that will allow it to remotely monitor water quality, including conductivity, pH and the temperature of the water. The monitors have been installed and are logging data which is being downloaded by water suppliers and provided to DEP.

RAIN is working to connect the monitors electronically so that the data will be available real time. Once the connections are complete, RAIN plans to make the data available to the public online.

In April 2009 DEP released a proposed strategy for new discharges of high TDS wastewater to meet an effluent standard of 500 ppm by January 2011. These new standards were approved by the Environmental Quality Board on Aug. 18, and will be available for public comment later this year.

WildEarth Guardians' Petition Ruling Promises to Protect Clean Air in the West from Oil and Gas Drilling
EPA Reverses Bush-era Rollbacks:  Rules Pollution from Oil and Gas Operations Must be Aggregated and Assessed Cumulatively, Rejects State of Colorado-Issued Air Permit

For Immediate Release:
October 14, 2009

For More Information Contact:
Jeremy Nichols, Climate and Energy Program Director, WildEarth Guardians, (303) 573-4898 x 1303, cell (303) 437-7663.

Denver—In response to a petition filed by WildEarth Guardians challenging an air pollution permit issued by the State of Colorado, the U.S. Environmental Protection Agency issued a landmark ruling that oil and gas operations must be held to aggregation safeguards under the Clean Air Act, reversing a Bush-era rollback and promising greater protection of public health and the environment throughout the American West.

“This ruling is clear:  the oil and gas industry doesn’t get a free pass to pollute,” said Jeremy Nichols, Climate and Energy Program Director for WildEarth Guardians.  “This is a major victory for clean air and public health.”

Under the Clean Air Act, connected sources of air pollution must be aggregated together when determining what constitutes a single source for permitting purposes.  Aggregation is a standard requirement that ensures connected sources of air pollution are not arbitrarily broken down into smaller sources and ensures that polluters secure permits that meet stringent emission control requirements under the Clean Air Act.

Oil and gas operations consist of hundreds to thousands of polluting pieces of equipment including drill rigs, compressor engines, and leaking pipelines and tanks.  Collectively, this pollution adds up.  In the Denver metropolitan area for example, state inventories show that oil and gas operations in the Wattenberg gas field of Weld County release more smog forming compounds than all the cars and trucks in the region.

Colorado, as well as other Western states, have failed to aggregate oil and gas operations under the Clean Air Act.  This has led states to ignore the cumulative pollution from oil and gas wells when issuing permits.  This refusal to aggregate was upheld by a 2007 memo issued by a Bush Administration political appointee within the EPA, which exempted the oil and gas industry from aggregation safeguards.  The failure to aggregate has led to numerous air quality problems in West, including unhealthy ground-level ozone levels in oil and gas producing regions of Wyoming, Colorado, and New Mexico.

“The failure to aggregate is the root of many of the West’s air pollution problems,” said Nichols.  “By ignoring the pollution impacts of individual oil and gas wells, states have turned their backs on the cumulative impacts of oil and gas drilling.  Sadly, this was not only condoned, but encouraged by the Bush Administration.”

In 2008, WildEarth Guardians challenged the failure of Colorado to aggregate oil and gas operations under the Clean Air Act and challenged the 2007 Bush Administration memo.  In a petition filed with the Administrator of the EPA, WildEarth Guardians attacked the failure of Colorado to aggregate connected oil and gas wells with the Frederick natural gas compressor station, a massive compressor station owned by Kerr-McGee, a subsidiary of Anadarko Petroleum in Weld County north of Denver, before issuing an operating permit under the Clean Air Act.

The EPA agreed on both counts.  On September 22, 2009, the agency reversed the 2007 Bush Administration memo, holding that oil and gas operations must be subject to aggregation safeguards under the Clean Air Act like any other industry.  And on October 8, 2009, the EPA Administrator upheld WildEarth Guardians’ petition, overturning the permit issued by Colorado for the operation of the Frederick natural gas compressor station.  The EPA ruled, “I grant the Petitioner’s request for an objection to the permit on the issue of CDPHE’s failure to provide an adequate basis in the permit record for its determination of the source” under the Clean Air Act.

The EPA further recommended that Colorado undertake a never-before done assessment of the oil and gas operations connected to the Frederick natural gas compressor station, including:

  • An evaluation of Kerr-McGee/Anadarko’s complete system, including all pollution emitting activities, in the Wattenberg gas field north of Denver;
  • A determination of whether the pollutant emitting activities that are a part of the system are contiguous or adjacent to, and under common control with the Frederick natural gas compressor station; and
  • An assessment of the flow of natural gas within the Wattenberg gas field to determine whether facilities are interrelated with the Frederick natural gas compressor station.

According to Kerr-McGee/Anadarko, the company owns and operates more than 3,600 gas wells north of Denver in the Wattenberg gas field, many of which are connected to the Frederick natural gas compressor station.  Data from Colorado indicates that each well annually may release 2.2 tons of volatile organic compounds individually and more than 7,000 tons of volatile organic compounds together.  The ruling promises to ensure that these sources and pollution are aggregated with the Frederick natural gas compressor station to determine whether Kerr-McGee/Anadarko should be held to more stringent emission limits. 

If aggregated, Kerr-McGee/Anadarko would likely be required to install the best available pollution controls at its oil and gas wells.  With available controls, emissions could be reduced by as much as 95% or more.

“This is great news.  Never before has the EPA set the bar this high,” said Nichols.  “This all but ensures that states throughout the U.S. will be finally forced to hold the oil and gas industry accountable to aggregation safeguards, ensuring lasting protection of clean air and public health.”

Under the Clean Air Act, the State of Colorado has 90 days to respond to the EPA's ruling.

The EPA's ruling can be downloaded here

WildEarth Guardians’ petition can be downloaded here

The EPA’s reversal of the Bush-era memo can be
downloaded here

Press Statement by FWCanDo, Founder Don Young

FWCanDo
Fort Worth Citizens Against Neighborhood Drilling Operations
P.O. Box 470041
Fort Worth, TX 76147
817-731-2787
For Release: October 13, 2009

FWCanDo calls on State of Texas to place emission controls on gas infrastructure throughout the Barnett Shale region Applauds DISH Mayor on leadership to protect community from toxic emissions

Fort Worth, TX -- “ Today, FWCanDo joins hands with Mayor Tillman of DISH, Texas, the Texas Oil and Gas Accountability Project and many others in demanding a solution to the toxic emissions from oil and gas infrastructure that are impacting the people of DISH and the Barnett Shale region.

FWCanDo (Fort Worth Citizens Against Neighborhood Drilling Operations) began urging Fort Worth Mayor Mike Moncrief and city council members to conduct environmental studies on the impacts of natural gas production in 2005. We were rebuffed with the explanation that, “the State of Texas does not require us to do so. ” With the completion of a Barnett Shale emissions study by Dr. Al Armendariz in January 2009, the release of damaging infrared videos by TCEQ in July and the recent DISH air study, it is now clear:1

Natural gas regulations in the State of Texas are inadequate. Public health and safety and the environment are directly harmed by toxic emissions from natural gas production. Our prayers go out to the people of DISH. We support your right to breathe clean air and raise your families, pets and livestock in a safe environment. FWCanDo will continue encouraging elected officials and regulatory agencies in Texas to halt all natural gas production activities until proper safeguards are in place and that timely and vigorous inspections are carried out.

We believe that the people of the DISH and all Texans deserve much better from the Texas Commission for Environmental Quality. We believe they have shown favoritism to the oil and gas industry and failed to protect the environment we call home.

It is now time for that to change.”

Don Young, 817-731-2787

1 http://www.edf.org/documents/9235_Barnett_Shale_Report.pdf

New York State
Department of Environmental Conservation

The draft Supplemental Generic Environmental Impact Statement (SGEIS) for potential natural gas drilling activities in the Marcellus Shale formation is now available for public review and comment. The draft SGEIS supplements the existing Generic Environmental Impact Statement (GEIS) and analyzes the range of potential impacts of shale gas development using horizontal drilling and high-volume hydraulic fracturing. The draft SGEIS outlines safety measures, protection standards and mitigation strategies that operators would have to follow to obtain permits.

The public comment period will be open until November 30, 2009. The Department is offering three ways in which to submit comments. We have created an on line submission system which will allow you to write comments and tag them to your areas of concern. Attachments can also be included. You may submit e-mail comments; please include your name, e-mail or return mail address to ensure notice of the Final SGEIS when it is available. Finally, written comments should be sent to: Attn: dSGEIS Comments, Bureau of Oil & Gas Regulation, NYSDEC Division of Mineral Resources, 625 Broadway, Third Floor, Albany, NY 12233-6500

NY State DEC website

PDF of draft  (23.7MB document)

Pennsylvania is part of their wastewater plan:

5.13.3.4 Out-of-State Treatment Plants

The only regulatory role DEC has over disposal of flowback water at out-of-state municipal or industrial treatment plants is that transport of these fluids, which are considered industrial waste, must be by a licensed Part 364 Transporter. For informational purposes, Table 5.14 lists out-of-state plants that have been proposed for disposition of flowback water recovered in New York.

Table 5-14
Out-of-state treatment plants proposed for disposition of NY flowback water

Treatment Facility   -   Location   -   County

Advanced Waste Services - New Castle, PA Lawrence

Eureka Resources - Williamsport, PA Lycoming

Lehigh County Authority Pretreatment Plant - Fogelsville, PA Lehigh

Liquid Assets Disposal - Wheeling, WV Ohio

Municipal Authority of the City of McKeesport - McKeesport, PA Allegheny

PA Brine Treatment, Inc. - Franklin, PA Venango

Sunbury Generation - Shamokin Dam, PA Snyder

Tri-County Waste Water Management - Waynesburg, PA Greene

Tunnelton Liquids Co. - Saltsburg, PA Indiana

Valley Joint Sewer Authority - Athens, PA Bradford

Waste Treatment Corporation - Washington, PA Washington

DRAFT SGEIS 9/30/2009, Page 5-123

Coalition Calls on EPA to Stop Fish Kill from Drilling Wastewater

Urges Immediate Action to End Dumping of Untreated Waste

Clean Water Action - Pennsylvania
September 21, 2009

(Pittsburgh) – A state coalition of environmental, watershed, and sporting organizations is calling on the U.S. Environmental Protection Agency to take immediate action following a large scale fish kill in Dunkard Creek.  Over the past two weeks, 10,000 fish in both West Virginia and Pennsylvania have been reported killed in Dunkard Creek as a result of the dumping of untreated wastewater from Marcellus Shale gas drilling operations.

The PA Campaign for Clean Water, which has 150 member organizations, wrote to Jon Capacasa, Director of Water Protection for EPA Region  III, urging immediate action to stop gas drilling discharges to Dunkard Creek, and to review existing drilling dischargers that Pennsylvania and West Virginia have issued permits to.

“It’s time for EPA to stop the discharges of untreated wastewater from Marcellus gas drilling.  Whether an agency has given a permit to someone to discharge wastewater, or if it’s happening in the middle of the night, the discharge of untreated drilling wastewater has got to stop,” stated Myron Arnowitt, PA State Director, Clean Water Action.

Scott Hoffman, President of Chestnut Ridge Trout Unlimited, stated, “DEP needs to stop issuing more drilling permits until we have regulations for proper disposal of drilling wastewater in place.  We are going to see more disasters like Dunkard Creek unless we act now.”

The PA Campaign for Clean Water is calling on EPA to:

1)      Take immediate action to shut down known discharges to Dunkard Creek with high levels of total dissolved solids and chlorides.  Chlorides (salts) are a clear indication of gas drilling wastewater.

2)     Require that Marcellus Shale drilling operations in Pennsylvania and West Virginia document where all wastewater is disposed of and that plants taking drilling wastewater can properly treat it.

3)     Reopen permits that Pennsylvania and West Virginia have issued to plants taking drilling wastewater, but without proper treatment facilities.

“Fish kills, mussels and salamanders wiped out, thirty miles of creek polluted – how can this go on and why hasn’t it been stopped? It is an outrage that such a deadly discharge can go unchecked in this day and age. Haven’t the agencies learned from the water quality emergency on the Monongahela River last year that our streams and rivers can’t tolerate being choked with TDS and other gas drilling pollutants?”, said Maya van Rossum, the Delaware Riverkeeper.

The PA Campaign for Clean Water is a coalition of 150 environmental, conservation, sporting, and religious groups from all corners of the state that speaks in one voice in support of federal and state policies to protect and restore Pennsylvania’s water resources.

THE REAL COST OF GAS EXPLORATION

Water Air Land Economy

By: The Responsible Drilling Alliance

Much has been made of the economic benefits of gas exploration for our region. Certainly, the development of gas resources will bring jobs and economic growth. But if the history of exploration in other parts of the country is any guide, these benefits could come at great costs to our area’s cherished natural resources – the water we drink, the air we breathe, the land we farm and hunt upon. Economic studies tend to discount these costs, or ignore them altogether. The risks of gas development are real, however. If we understand them, we can work to contain them – and so maximize the benefits that development may bring.

WATER:

The industry uses an enormous amount of fresh water which it uses, pollutes, treats in someway, and then returns to the environment. The manufacturers of chemical conditioners, used in the fracture of the shale formation, have successfully claimed proprietary secrecy for their formulas. This secrecy, makes it almost impossible to be confident the industry’s waste water is being treated successfully before returning it to the environment. It is also very difficult to prove that aquifer, stream, or well pollution has occurred. Medical and emergency personnel, exposed to fracking fluids or treating exposed persons, work without information they need to be safe.

POLLUTION OF SURFACE WATERS

AQUIFERS, LEAKS AND SPILLS
The industry has consistently claimed that the hydro fracturing mixture is only water, sand and so few chemicals, 1%, as to be innocuous. With the process happening thousands of feet below the surface, the industry also claims it couldn’t possibly effect aquifers near the surface.
Pavillion, Wy, August 14, 2009 - This week U.S. Environmental Protection Agency told a group of over 70 that initial investigations found 11 of 39 tested drinking water wells were contaminated. Among the contaminants are toxics used in oil and gas production. EPA confirmed the presence of 2-butoxyethanol (2-BE), a known constituent in hydraulic fracturing fluids, in three wells.

The Pittsburgh Post-Gazette 6/4/09 reported that a leaking pipe at a local Marcellus drilling site sent stored fracking liquid into a small stream that feeds a lake in a popular park; the contamination killed fish and other aquatic life for three-quarters of a mile downstream.

In April, production fluid or fracking fluid from a Chesapeake drilling operation in Spring Ridge, Louisiana., spilled into a pasture. Cows drank the fluid and 17 died. ShreveportTimes.com 8/6/09

Response: Pass the Fracturing Responsibility and Awareness of Chemicals Act, or FRAC Act, introduced by Sen. Robert Casey (DPA) and Rep. Diana DeGette (D-CO) to remove the oil and gas industry’s 2005 exemption for drilling activities from the Safe Drinking Water Act,. The oil and gas industry has recently begun a strong lobbying campaign to defend against this new legislation.

Support careful regulation of well casing procedures and use environmentally better well pad placement in relationship to streams, lakes, and wetlands. Assure industry waste water is returned to the environment free of toxic chemicals, dissolved salts, and low level radioactivity. Demand the industry use environmentally benign chemicals, as they are required to do in marine environments.

AIR:

Air pollution may actually be the most pervasive environmental threat from gas exploration. “In Boulder, Wyoming, (Sublette County), population 75, ozone levels surpassed the healthy level 11 times in the first three months of 2008. This may cost the industry and taxpayers millions to come into compliance with federal clean air laws.” (The Associated Press, “Pollution in town rivals that of cities”, May 8, 2008)

In Fort Worth-Dallas region the oil and gas sector, (7700 wells) produces greater emissions than all the motor vehicles in the 5-county metropolitan area ( 6.3 million people) according to Al Armendariz, Ph.D. Department of Environmental and Civil Engineering, Southern Methodist University The industry tried, unsuccessfully, to discredit Armendariz’s report and is stonewalling the needed changes.

“More than 50 pollutants are released during the oil and gas drilling processes. Sources of the pollution include “venting, dehydration, gas processing, compression, leaks from equipment (fugitive emissions), flaring wells, open-pit waste ponds, and land application of volatile wastes.” (“Drilling Down”, NRDC, 2007)

“Volatile organic compounds emitted include benzene, toluene, ethylbenzene, xylene, and fugitive natural gas (methane). These mixed with nitrogen oxides (from the exhaust of diesel-driven equipment), form ground level ozone. The ozone can spread up to 200 miles from the site of gas production.” (The Endocrine Disruption Exchange)

“Ozone causes a number of health problems, including shortness of breath, increased susceptibility to respiratory infections, increased risk of asthma attacks and possibly premature mortality.” (American Lung Association)

Response: A large portion of the gas industry’s air pollution is gratuitous damage. Much of the emissions of volatile organic chemicals could be inexpensively contained by better practices. Al Armendariz, Ph.D. Department of Environmental and Civil Engineering, Southern Methodist University.

DEP should institute a rigorous review of industry practices and require the best technology to be used.

LAND:

Industrialization of the rural landscape: The issues of land use include the economy, way of life, health and quality of life. Recent economic studies have treated gas drilling as an additive event on top of what already exists. In reality, the industrialization of the rural landscape, concentrated spacing of well pads and numerous compressor stations, will supplant already existing economic activities such as agriculture and tourism.

Concentrated well spacing: “...as of March, 2008, the company (Devon Energy) announced it had drilled 57 wells at 40-acre spacing (or, according to the company, 500 feet apart), and that it plans to drill pilot wells at 20-acre spacing this year (according to the company, that’s 250 feet apart).” “Focus on the Marcellus Shale” Lisa Sumi for the Oil & Gas Accountability Project/ Earthworks, May 2008

Loss of property value: “The property values not tied to minerals have continued to drop. I believe this is mostly due to the massive natural gas compressors, pipelines and metering stations. They have all but made the surface property here worthless; The average person will not purchase the property right next to a well site or compressor, providing they are made aware of it.” Calvin Tillman, Mayor, Dish, Texas

Road issues: “...this exploration destroys roads, which are very expensive to maintain and replace. None of the existing roads were designed to withstand the constant pounding from an 80,000 pound waste-water truck. To build roads to handle this traffic can cost millions of dollars.” Calvin Tillman, Mayor, Dish, Texas

Wildlife: “Drilling requires land to be cleared for well pads, and roads and pipes are needed to transport heavy equipment, rigs and gas. These cause forest fragmentation, accelerated spread of invasive plant species, disturbance of sensitive habitats and decreases in wildlife populations in species such as songbirds and amphibians.” Penn State Live: Wildlife Expert Warns of Ecological Risks of Natural Gas Drilling” January 23, 2009

Quality of life: “Until you experience it, you cannot fathom the noise of these operations, the explosions that rattle your home, the humming of the generators and the rumble of increased traffic. Sitting on our porch at night was like watching a scene from hell as the clouds reflected red from flaring gas.” Losing the Ranch to Gas Drilling”, By ROSEMARY BILCHAK, Writers on the Range

Response: Local municipalities and county governments can protect against many of the negative aspects of drilling practices by instituting good zoning and land use ordinances. DEP should require mile separations between well pads but allow multiple wells on each pad so the industry can harvest gas from the full area under on each square mile.

REGULATION FREE ZONE:
In the preamble to “Drilling Down” Natural Resources Defense Council, 2007 Amy Mall details the extent federal regulations have been removed from gas drilling. State governments are left to handle the problem. In Pennsylvania, the task has fallen primarily to the Department of Environmental Protection which has neither the personnel or the regulatory clout to do a credible job.

(Federal) “Decades of dealmaking by the industry, Congress, and regulatory offices have resulted in exemptions for the oil and gas industry from protections in the Clean Air Act, the Clean Water Act, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, also known as the Superfund law), the Resource Conservation and Recovery Act, and the Safe Drinking Water Act. In addition, the oil and gas industry is not covered by public right-to-know provisions under the Emergency Planning and Community Right-to-Know Act, meaning that companies can withhold information needed to make informed decisions about protecting the environment and human health.”

(State) Pennsylvania Oil and Gas Act of 1984 predates the new intense drilling methods of hydro fracturing and its chemical attendants. The Act is essentially an industry document meant primarily to regulate relationships within the related industries of drilling and mining. Environmental concerns are almost absent, making it dangerously inadequate for protecting health, environment and quality of life. Gas Act example: you may not drill a gas well closer than 100 feet to a stream, lake, river or wetland or closer that 200 feet from a house or water well. Both of these inadequate restrictions can be appealed by the industry.

TAX FREE ZONE:
Gas drilling will impose a great deal of infrastructure cost on local governments in terms of fire and police protection, schools, hospitals, water and sewer, and road repair. Unlike in western states, Pennsylvania has no direct taxes that local municipalities can collect from the gas industry to offset these costs. Essentially, the industry will transfer its cost of doing business to the local taxpayer.

(Penn State Cooperative Extension “ Marcellus Shale: What Local Government Officials Need to Know”) “Pennsylvania is among the nation’s largest natural gas-producing states, but it does not impose any tax on methane extracted from underground.”

Buchanan Ingersoll and Rooney, Oil and Gas Industry Group, No. 1 on Central Penn Business Journal’s list of top lobbying firms. The industry is rigorously lobbying against a severance tax claiming it would be unfair because Pennsylvania has a high corporate tax. In fact, many drilling companies have set up limited liability companies, “more than 70% of the wells in the Marcellus Shale will only pay the state’s 3.07% Personal Income Tax rather than the 9.99% Corporate Net Income Tax.”

(Pennsylvania Budget and Policy Center) The gas industry has also been very successful in avoiding taxes on the federal level. Range Resources paid just 4/10’s of 1% of their income in federal taxes last year, $400 for every $100,000 earned. (Business Week 4/23/09)

HOW DO THEY DO IT?
How does the gas industry manage to avoid regulations and taxes? They put a lot of money and effort into lobbying. In the mid part of this decade they reportedly invested $70 million dollars to become exempt from the federal Clean Drinking Water Act and are presently spending heavily to fight off pending legislation to keep the exemption. In the first half of this year, companies working in Pennsylvania have reported spending over $1 million in lobbying expenses in Harrisburg
(Penn Future). It is an effective strategy because it focuses a large amount of money on relatively few representatives, senators, and regulators working on relatively obscure issues deep in the regulatory and legislative weeds. The pay off, for the gas industry, has been enormous.


Check the facts:
70% of Marcellus Shale Wells Don't Pay
Corporate Net Income Tax
 
Pennsylvania Budget & Policy Center
(PDF version)

August 6, 2009
Carnegie Mellon's Jean VanBriesen leads research team on Monongahela River

Water quality tested

PITTSBURGH—-Carnegie Mellon University's Jeanne M. VanBriesen and Kelvin Gregory will use a $100,000 grant from the Pittsburgh-based Colcom Foundation to study water quality in the Monongahela River.

The focus will be on the presence and effect of bromide associated with Marcellus Shale gas produced water, and sulfate from acid mine drainage, according to VanBriesen, a professor of civil and environmental engineering and faculty director of the Center for Water Quality in Urban Environmental Systems (WaterQUEST).

"The public has expressed increased concern about the produced water that may result from ongoing development of the southwestern Pennsylvania Marcellus Shale formation, which is reported to contain more than 300 trillion cubic feet of natural gas," VanBriesen said.

Developers using hydraulic fracturing, which involves injecting water and sand into major shale formations to help natural gas flow up a well, will need millions of gallons of water to complete the process at well sites. Water that returns to the surface, called flowback or produced water, is collected for reuse or disposal. Disposal at wastewater treatment plants along the Monongahela in 2008 is suspected as a contributing factor in high levels of total dissolved solids (TDS) observed in the river.

Carnegie Mellon researchers will work with the River Alert Information Network (RAIN), a regional association of drinking water suppliers that has been selected by the state to monitor the river quality.

"We will essentially collect data from sensors that RAIN deploys at various sites along the Monongahela River," said Gregory, an assistant professor in Carnegie Mellon's Civil and Environmental Engineering Department. The sensors will monitor for some aspects of water quality, and the Carnegie Mellon team will take additional samples for bromide and sulfate.

Besides the fieldwork, Carnegie Mellon researchers will add data to RAIN's Web-based public information system to promote additional education and discussion among environmental groups about river water quality. WaterQUEST will host a "State of the Monongahela River" event to share data and research about the river.

"Carnegie Mellon's work to understand the water quality impacts from shale gas production in Pennsylvania represents a thoughtful, farsighted effort to avert a problem before it arises. Carnegie Mellon's research resonates with the mission of the Colcom Foundation, which has a long history of assessing and addressing the cause before it's necessary to respond to the symptom. It's a privilege to support Carnegie Mellon's preventative strategy," said Carol Zagrocki, program director of the Colcom Foundation, established in 1996 by the late Cordelia S. May, a dedicated conservationist who served as chairman until her death in 2005.

The FRAC Act
June 9, 2009 - U.S. Senator Bob Casey (D-PA) joined U.S. Reps. Diana DeGette (D-CO), Maurice Hinchey (D-NY) and Jared Polis (D-CO) today to introduce companion Senate and House bills, the FRAC Act -- Fracturing Responsibility and Awareness of Chemicals Act, amending the Safe Drinking Water Act.

Email your representatives today and encourage them to support these Bills

For Immediate Release
June 19, 2009

House Appropriations Committee Advances Hinchey Provision Urging EPA to Conduct New Study on Risks that Hydraulic Fracturing for Natural Gas Poses to Drinking Water Supplies

Washington, DC - In an important step forward, the House Appropriations Committee last night approved a provision authored by Congressman Maurice Hinchey (D-NY) that would formally urge the U.S. Environmental Protection Agency (EPA) to conduct a new study on the risks that hydraulic fracturing for natural gas exploration and drilling pose to drinking water supplies.  The House Appropriations Subcommittee on Interior, Environment, and Related Agencies, of which Hinchey is a member, approved the congressman's language last week as part of the report accompanying the Interior Appropriations bill for fiscal year 2010.  Now that the full House Appropriations Committee passed the bill and report, the measure now moves to the floor where it will be voted on by the full House as early as next week.
  
"We're now one important step closer toward securing a new, unbiased EPA study on the risks that hydraulic fracturing pose to our nation's drinking water supplies," Hinchey said. "As we enter a period in time when we may very well see a dramatic increase in natural gas drilling, it's important that we have policies in place that will safeguard our drinking water supplies so that we don't destroy one natural resource while pursuing another.  Natural gas drilling should be allowed, but it must be done in a way that is environmentally sound."
  
Hinchey's provision comes one month after the congressman asked EPA Administrator Lisa Jackson at an Interior subcommittee hearing about the need for such a study.  Jackson told Hinchey that she believed her agency should review the risk that fracturing poses to drinking water in light of various cases across the country that raise questions about the safety of the natural gas drilling practice.  Hinchey's measure would simply formalize that congressional request for an EPA study on the risks that toxic chemicals used in hydraulic fracturing pose to drinking water supplies in New York and across the nation.  The EPA did conduct a study on the matter in 2004 under the Bush administration, but that study is widely considered to be flawed for a variety of reasons, including the way data was selectively collected from sources that had a vested interest in the oil and gas industry while other relevant information was ignored.
  
The language that Hinchey had inserted into the report reads, "The Committee is concerned about the risks posed to drinking water from hydraulic fracturing. The Committee questions whether past reviews by the Agency relied on independent sources of information and the best available science. The Committee urges EPA to review the risks that hydraulic fracturing poses to drinking water using the best available science, as well as independent sources of information." 
  
In the now infamous 2005 Energy Policy Act, which Hinchey strongly opposed and voted against, the then Republican-controlled Congress exempted hydraulic fracturing from the Safe Drinking Water Act, which was designed to protect people's water supply from contamination from toxic materials. This loophole, which some have called the Halliburton Loophole, created an extremely dangerous set of circumstances.
  
Last week, Hinchey, Congresswoman Diana DeGette (D-CO), and several of his colleagues introduced the FRAC ACT -- Fracking Responsibility and Awareness of Chemicals Act, which would close the loophole that exempted hydraulic fracturing from the Safe Drinking Water Act.  The FRAC Act would also require the oil and gas industry to disclose the chemicals they use in their hydraulic fracturing processes.  Currently, the oil and gas industry is the only industry granted an exemption from complying with the Safe Drinking Water Act.
  
Hydraulic fracturing, also known as “fracking,” is used in almost all natural gas wells. It is a process whereby fluids are injected at high pressure into underground rock formations to blast them open and increase the flow of fossil fuels. This injection of unknown and potentially toxic chemicals often occurs near drinking water wells.  Troubling incidents have occurred around the country where people became ill after fracking operations began in their communities. Some chemicals that are known to have been used in fracking include diesel fuel, benzene, industrial solvents, and other carcinogens and endocrine disrupters.

  
BLIP TV VIDEO - 6/15/09
Dr. Theo Colborn discusses frac fluids used in hydraulic fracturing

  

Heavy drilling helps Range top least-taxes list

By JACK Z. SMITH
April 29, 2009
Ft Worth Star-Telegram

Uncle Sam has drilled what is essentially a dry hole in attempting to extract tax revenue from Fort Worth-based Range Resources, an independent natural gas producer.

A survey by Business Week magazine, done with the help of data tracker Capital IQ, examined companies in the S&P 500 index to determine the businesses that paid the most federal corporate income tax and those that paid the least between 2005 and 2008.

Range ranked No. 1 on the list of those paying the least, paying taxes at an average annual rate of only 0.4 percent (that’s two-fifths of 1 percent) of its income over the past four years, according to the calculations published in the magazine’s May 4 edition.

Under a graphic called "Tiny Tax Bills," Business Week said Range’s tax tab had been especially low because of "heavy drilling for oil and gas, plus losses from the late 1990s and early 2000s."

Rodney Wallace, senior vice president and chief compliance officer for Range, explained the small tax bill this way: "Essentially, if you’re drilling, and adding [oil and gas] reserves in the U.S., you’re incurring a lot of intangible drilling costs, and that’s currently deductible."

Intangible drilling costs include multiple items, "like the cost of the [drilling] rig that makes the hole," Wallace said. The tax treatment is generally available to petroleum producers.

In the hot Barnett Shale gas field in North Texas, "about 75 . are intangible drilling costs," he said...percent of your drilling costs  That includes the cost of fracturing wells, Wallace said, which is needed to release the gas and which can cost as much or more than drilling the well in the first place.

Range and other energy companies doing extensive drilling actually are deferring taxes, rather than avoiding them altogether, Wallace said.

That helps U.S. producers increase domestic production and reduce America’s reliance on foreign petroleum supplies, he said. He also noted that the Obama administration, which is proposing to reduce tax breaks available to oil and gas producers, supports tax incentives for "green" alternative energy sources such as wind and solar power.

Business Week quoted Range Chief Financial Officer Roger Manny as saying that ending deferments could hurt the cash flow of the Fort Worth company, discourage oil and gas exploration across the industry and result in higher energy prices.

On Tuesday, Range reported net income of $32.6 million for the first quarter of 2009 on record-high production.

Millions of gallons of water use approved

New York City Council meets on impact to city’s drinking water

By TOM KANE and FRITZ MAYER
The River Reporter
September 18, 2008

HARRISBURG, PA — The Susquehanna River Basin Commission (SRBC) has granted approval for the withdrawal of more than 30 million gallons of water a day from the river basin in response to 40 applications from drilling companies seeking to drill for natural gas in the area. Six applications were tabled. The move increases the amount of water that drillers can take from the watershed to 41 million gallons per day.

This amount does not include what is called “approval by rule,” or withdrawals that occur when a drilling company gets its water from a public water source. The commission met on September 11.

“Our technology staff, which is very strict about these things, feels that that number of gallons a day could be drawn from the streams, ponds and the Susquehanna River with no threat to water resources,” said Susan Obleski, SRBC spokesperson.

There are a number of power plants in the river basin that withdraw from nine to 40 million gallons a day without causing a problem, she said.

According to the U.S. Geological Survey, one million gallons could be held in a tank about 267 feet long (almost as long as a football field), 50 feet wide and 10 feet deep.

The SRBC also settled fines with several companies that had violated water withdrawal limits. Among them, Cabot Oil and Gas agreed to pay $375,000, Chief Oil and Gas will pay $475,000, EOG Resources will pay $450,000 and Range Resources will pay $475,000.

New York City Council weighs in

In other gas drilling news, the New York City Council held an emergency public hearing on September 10 to address concerns that plans for natural gas drilling in the city’s upstate watersheds could contaminate local drinking water.

Council member James Gennaro, who organized the hearing, said that drilling also threatens to cost taxpayers billions of dollars if the city loses a waiver from the federal government that exempts it from filtering its drinking water. The city’s water supply is allowed to go unfiltered as long as periodic federal testing finds it to be clean. According to Gennaro, if the water supply were to be contaminated as a result of the drilling and the exemptions taken away, the city would be forced to pay billions of dollars to construct and maintain a new filtration plant.

“This is an industrial activity that is completely inconsistent with a drinking water supply,” Gennaro said. Drilling in the watershed has become something of a campaign issue in the state senate race between Gennaro and incumbent senator Frank Padavan. Padavan has said he will reintroduce legislation in next year’s session that would prevent drilling in the watershed that serves New York City.

At the hearing, several environmental groups, including Delaware Riverkeeper, the Natural Resource Defense Fund, Catskill Mountainkeeper and the Sierra Club ,warned about the possible dangers of gas drilling.

Not everyone agreed. The American Petroleum Institute and the Independent Petroleum Association of America issued a statement that read, “The associations believe that development of natural gas resources in the Marcellus Shale will not pose any significant risk to the drinking water supplies of New York City.”

 
By Susan Evans
The Tribune-Democrat
February 23, 2008

The geologist offering his paid services as an agent to area landowners to help them get the best gas lease also is an executive with the Pennsylvania Game Commission who is in charge of, among other things, gas leases on state gamelands.

Some question whether this moonlighting poses a conflict of interest.

In his day job in Harrisburg, William Capouillez is director of the Bureau of Wildlife Habitat and oversees oil and gas and mining leases on 1.4 million acres of gamelands.

After working hours, and described only as a geologist and not as a state employee, he conducts seminars for landowners who have been approached by natural gas companies wanting a lease.

If they sign with him as their agent, he will get them higher lease income and better terms, he says. In return, he and his private company, Geological Assessment and Leasing of McVeytown, would get 25 cents of every dollar Capouillez negotiated for the landowner above the rate first offered by the gas company, plus 50 percent of royalties above the set rate.

For the Game Commission manager, it’s an extra income above the approximate $70,000 annually he earns from the state. For the landowner, it’s a better lease than expected.

But for some gas companies, a state official wearing these two hats poses, in the words of one, “a sensitive situation.”

They must please a state official who controls gas leasing on state gamelands, and who at the same time is a private consultant to landowners negotiating their own gas leases – often with the same gas company.

Capouillez says his outside activities are on record and sanctioned by the Game Commission and that he has no conflict of interest or dubious ethics area.

In fact, the only reason he does not disclose his state employment when conducting seminars is to avoid a conflict of interest.

“If you print in the paper that a Pennsylvania Game Commission director is working for private landowners, and a person called me to act as their agent, I could not represent them,” he said.

“I could have a conflict of interest because they would expect favors,” he said.

But Capouillez said he is aware of the gas companies’ concern.

“I have had at least three gas companies complain to the governor’s office because they felt that my presence there (at private negotiations) influenced how much the companies had to pay, but they couldn’t prove that I advertised,” he said.

The dual role of state gamelands leasing overseer, coupled with private lease negotiator, is raising the eyebrows of natural gas company representatives who have heard his seminar presentations.

Capouillez is aware of that.

“I guarantee that if you print anything about my affiliation with the Game Commission, it will cause me grief. There would be repercussions. Anybody there would think that my presence would influence higher prices,” he said.

“So if, let’s say, there’s Western Land Services and they’re leasing for $20 an acre, and anyone comes and does what I do, the landowners are going to reap the benefit, at the cost of the industry,” he said.

“But I do not advertise my affiliation with the Game Commission,” he said.

Officials at Western Land Services, a Michigan firm that is soliciting area landowners for natural gas leases, declined to comment.

Capouillez said that he has approval for his outside employment through the governor’s office, so that his activities do not pose a conflict of interest.

But Chuck Ardo of the governor’s press office said that the governor’s office does not approve supplemental employment for Game Commission workers.

“I can tell you, though, that the governor does not look with favor on employees who seek personal gain based on their work experience,” he said.

Game Commission officials say that Capouillez’s activities are approved by the commission itself, not the governor.

“As a bureau director, he is required to file annual reports with the state Ethics Commission, as well as having received approval for supplemental employment,” said spokesman Jerry Feaser.

“If all those boxes have been checked off, all that is perfectly legal,” he said.

A 2001 complaint from a company alleging that Capouillez had a conflict of interest was investigated by the Game Commission and dismissed as unfounded, officials said.

Pennsylvania’s Ethics Act defines a conflict of interest as “use by a public official or public employee of the authority of his office or employment of any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family, or a business with which he is a member.”

Capouillez repeatedly said during an interview that his private gas leasing services are not connected to the Game Commission or its gas leasing.

He said he was concerned that publicity about his state job would harm him.

Commenting on the Ethics Act, he said, “My concern here is that I am a public employee and my employment affiliation when noted in your article may cause pecuniary benefit to me through my business,” he said.

Feaser said the issue of Capouillez’s outside job is a dead one.

“It’s not new, it’s something that’s been there. I know it’s been brought up as an issue of concern, but it’s been reviewed by the Game Commission so I would have nothing to add.”

Cambria County Farm Bureau President Robert Davis, who has organized the seminars for landowners being offered a gas lease, said he was aware of Capouillez’s role with the Game Commission and had been assured that it is “approved and legal.”
 

  
Ask your Senator to vote for The FRAC Act
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