PA Marcellus News Digest 2/22/13

PA Marcellus News Digest

February 22, 2013

Releases

Mundy seeks protection from drilling-related mishaps; industry transparency
Wallaby
Feb 21
HARRISBURG – State Rep. Phyllis Mundy, D-Kingston, has introduced a package of legislation to protect Pennsylvania from Marcellus Shale drilling accidents and to make the industry more open and accountable.
Link: http://wallaby.telicon.com/PA/library/2013/2013022189.HTM

State of Key Pa. Rivers Growing Stronger Alongside Safe Natural Gas Production
Wallaby
Feb 19
Pittsburgh, Pa. – While there continues to be a great deal of public focus on the safe, effective and tightly-regulated development of clean-burning American natural gas, especially as it relates to protecting our water resources, the health of several key Pennsylvania rivers are strong -- further demonstrating that natural gas development can, and must, be balanced with enhancing our environment.
Link: http://wallaby.telicon.com/PA/library/2013/2013021940.HTM

County Conservation Districts Receive Marcellus Shale Impact Fee Revenue
Wallaby
Feb 20
State Senator Joe Scarnati (R-Jefferson) announced the distribution of $361,165 in Marcellus Shale impact fee revenue to county conservation districts in the 25th Senatorial District.
Link: http://wallaby.telicon.com/PA/library/2013/2013022091.HTM

HDPC looks at DEP reporting procedures for environmental testing results
Wallaby
Feb 19
WASHINGTON, Pa., Feb. 19 – The House Democratic Policy Committee heard from local residents and environmental advocates at a public hearing in Washington County on Tuesday to examine the guidelines for the state Department of Environmental Protection’s reporting of results of environmental tests following natural gas drilling, said Chairman Mike Sturla, D-Lancaster.
Link: http://wallaby.telicon.com/PA/library/2013/2013021935.HTM

Articles

DEP secretary: Gas industry remains strong and safe
Sun-Gazette
Editorial
Feb 22
Rumors of the demise of the natural gas industry have apparently been greatly exaggerated.
Link: http://www.sungazette.com/page/content.detail/id/589511/DEP-secretary--Gas-industry-remains-strong-and-safe.html?nav=5004

DEP Secretary Krancer hit on Marcellus shale, smallmouth bass
Herald-Standard
Mark Shade, Calkins Media
Feb 22
HARRISBURG -- State lawmakers didn’t seem to be interested in his global warming beliefs, but Pennsylvania’s top environmental officer faced some frustrated, if not angry, questioning during the third day of budget hearings on Thursday.
Link: http://www.heraldstandard.com/news/local_news/dep-secretary-krancer-hit-on-marcellus-shale-smallmouth-bass/article_2b55a594-ad80-5b65-99f5-606f76b24515.html

DEP Secretary Krancer hit on Marcellus Shale, smallmouth bass
Philly Burbs
Mark Shade
Feb 22
HARRISBURG — State lawmakers hit Pennsylvania’s top environmental officer hard with questions about issues from Marcellus Shale to smallmouth bass.
Link: http://www.phillyburbs.com/news/local/courier_times_news/dep-secretary-krancer-hit-on-marcellus-shale-smallmouth-bass/article_446821c4-2d21-55d3-a497-d995674c994a.html

DEP chief says impact fee will help cover services
CDT
AP
Feb 21
HARRISBURG, PA. — Pennsylvania's Environmental Protection Secretary Michael Krancer is telling lawmakers that money from the new gas-drilling impact fee will take the place of general tax revenue to finance some state programs.
Link: http://www.centredaily.com/2013/02/21/3510664/dep-chief-says-impact-fee-will.html

Report: Flaws in EPA drilling pollution data
Philly Burbs
AP
Feb 21
Limited data and unreliable estimates on air pollution from oil and natural gas production is hindering the Environmental Protection Agency's efforts to police the drilling boom, the agency's internal watchdog said in a report released Thursday.
Link: http://www.phillyburbs.com/news/national/report-flaws-in-epa-drilling-pollution-data/article_3ad5e8dc-7162-53cf-8eb5-b934bd625c59.html

Study: Gas firms’ impact on environment light so far
Regs, greater use of natural gas leading to improvements. Critics say more data needed.
Times Leader
Matt Hughes
Feb 22
State environmental regulators on Thursday outlined some of Pennsylvania’s first comprehensive data on air emissions from the Marcellus Shale natural gas industry.
Link: http://www.timesleader.com/stories/Study-Gas-firms-impact-on-environment-light-so-far,266707

Marcellus production rises again, see for yourself
PBT
Anya Litvak
Feb 20
It must be hard not to drill, judging by the latest production data out from the Department of Environmental Protection.
Link: http://www.bizjournals.com/pittsburgh/blog/energy/2013/02/marcellus-production-rises-again-see.html

Gas pipeline project that would go through Berks quiet; critics not so
Union Township has not taken official stance
Reading Eagle
Stephanie Weaver
Feb 21
After a flurry of work in November, there has been almost no activity from a company proposing to build a large natural gas pipeline through Berks County.
Link: http://readingeagle.com/article.aspx?id=454159

Range Resources Corp. accused of bullying fracking foes
Daily Item
Mark Draje
Feb 20
WASHINGTON — When a Texas landowner took his fear that a gas driller had poisoned his well to federal regulators, the company, Range Resources Corp., turned around and sued him for conspiring “to harm Range.”
Link: http://dailyitem.com/0100_news/x503857374/Range-Resources-Corp-accused-of-bullying-fracking-foes

DEP owes complete disclosure to citizens
Observer-Reporter
Opinion
Feb 20
The folks at the Pennsylvania Department of Environmental Protection don’t like state Rep. Jesse White. We get it. White has been a frequent critic of the agency, particularly as it pertains to the DEP’s regulation, or lack thereof, of the Marcellus Shale gas-drilling industry.
Link: http://www.observer-reporter.com/article/20130220/OPINION01/130229907#.USftfB1weSp

Resource agencies leasing Pa. land
CNHI Harrisburg Bureau
John Finnerty
Feb 20
HARRISBURG — The Pennsylvania Department of Conservation and Natural Resources has made the biggest splash in leasing public lands to gas drillers, but the two other agencies involved in protecting wildlife habitat in Pennsylvania have been quietly using gas leases to generate millions of dollars in revenue as well.
Link: http://tribune-democrat.com/local/x2056621452/Resource-agencies-leasing-Pa-land

Airport drilling raises concern in Findlay
Post-Gazette
Andrea Iglar
Feb 21
While the plan to drill for natural gas at Pittsburgh International Airport has regional impact, it also raises issues for residents of Findlay, home of the airport.
Link: http://www.post-gazette.com/stories/local/neighborhoods-west/airport-drilling-raises-concern-in-findlay-676305/

Waste Injection Begins
Wells near Columbus begin accepting drilling fluids
Times Observer
Ben Klein
Feb 21
[...]Waste Treatment Corp. of Warren began hauling water from Marcellus shale production sites to the disposal facility near the New York State border last week, according to Bear Lake Properties President Karl Kimmich.
Link: http://www.timesobserver.com/page/content.detail/id/562846/Waste-Injection-Begins.html?nav=5006

Lawmaker: DEP Chief Michael Krancer Denies Climate Change
NPR State Impact
Susan Phillips
Feb 21
Link: http://stateimpact.npr.org/pennsylvania/2013/02/21/lawmaker-dep-chief-michael-krancer-denies-climate-change/

UGI gets conditional approval for compressor station in Washington Twp.
Times-Tribune
Robert L. Baker
Feb 20
The Washington Twp. Zoning Hearing Board granted conditional approval Monday night for a UGI compressor station on Meshoopany Ridge Road in Wyoming County.
Link: http://thetimes-tribune.com/news/ugi-gets-conditional-approval-for-compressor-station-in-washington-twp-1.1447347

Marcellus fees will pay salaries
Pitt Trib
Liz Zemba
Feb 20
Fayette County commissioners on Tuesday passed resolutions detailing where some of its $1.4 million in Marcellus shale impact-fee revenues will be spent, but they could not decide how to set aside a portion of the money for two dozen townships.
Link: http://triblive.com/news/fayette/3512271-74/county-money-commissioners#axzz2LTbQLLLl

Energy-in-Depth/IPAA, What about the Children?
Shale Shock Media
Feb 20
Betty Sutliff of the Wayne County Landowner and Member of Northern Wayne Property Owners Alliance (NWPOA) is described by EID/IPAA as a retired schoolteacher and mother comments on the increasing tendency of the natural gas opposition to exploit children in their campaigns, while also pursuing the indoctrination of these young minds.  As a “guest blogger” she cries out “Message to Natural Gas Opposition: Stop Exploiting Children!”
Link: http://blog.shaleshockmedia.org/2013/02/20/energy-in-depthipaa-what-about-the-children/

Pa. DEP chided at hearing on drilling
Witness after witness criticized the state agency, which chose not to present its side of the story
Post-Gazette
Don Hopey
Feb 20
Anger and frustration and jugs of orange-brown tap water were on display at a state House committee hearing in Washington County on Tuesday, where rural property owners and environmental advocates said the state Department of Environmental Protection is failing to enforce Marcellus Shale gas regulations and seriously damaging the environment and their health.
Link: http://www.post-gazette.com/stories/local/state/dep-chided-at-hearing-on-drilling-676087/

Health study a welcome mo
Times Leader
Feb 20
[...] News of a large-scale regional study on the medical impact of Marcellus Shale gas drilling may seem a tad past due, considering how robust drilling has been in parts of Northeastern Pennsylvania, but any third-party scrutiny is welcome. And to have that review conducted by medical professionals is doubly appreciated.
Link: http://www.timesleader.com/stories/Health-study-a-welcome-move,265852

Free ‘Got Gas?’ natural gas fair set for Saturday, March 2
Express
Feb 20
LOCK HAVEN - State Rep. Mike Hanna will sponsor a natural gas fair called "Got Gas?" at the Clinton County Community Center on Saturday, March 2.
Link: http://www.lockhaven.com/page/content.detail/id/543797/Free--Got-Gas---natural-gas-fair-set-for-Saturday--March-2.html?nav=5009

Residents testify to lack of DEP oversight at policy hearing
Observer-Reporter
Christie Campbell
Feb 19
Five Pennsylvania residents, including two from Mt. Pleasant Township in Washington County, testified before a House Democratic Policy Committee hearing Tuesday that the state Department of Environmental Protection has failed to provide the necessary oversight on natural gas drilling.
Link: http://www.observer-reporter.com/article/20130219/NEWS01/130219195#.USfqAR1weSp

Residents take DEP to task in hearing about fracking
Times Online
Rachel Morgan
Feb 19
By Rachel Morgan shalereporter.com | 3 comments
The Pennsylvania Department of Environmental Protection was in the hot seat at a public hearing Tuesday in Washington County.
Link: http://www.timesonline.com/news/local_news/residents-take-dep-to-task-in-hearing-about-fracking/article_8b5367a9-748d-5c12-b469-5a3cbd222aae.html

Resolve key gas question
Republican Herald
Opinion
Feb 20
Pennsylvania plunged blindly into the deep-well natural gas industry about six years ago. State officials anticipated economic rewards but had little but the industry's assurances that the technology and materials used in the industrial processes would not harm the state's environment and public health.
Link: http://republicanherald.com/opinion/resolve-key-gas-question-1.1446906

Allegheny County Council approves airport gas drilling plan
Amanda King
Feb 19
[...]Council voted 9-4 to approve an ordinance allowing the leasing of minerals underlying the Pittsburgh International Airport for natural gas drilling. Councilwoman Heather S. Heidelbaugh abstained from the vote because her law firm works with Consol Energy Inc., which wants to do the drilling.
Link: http://www.timesonline.com/news/transportation/allegheny-county-council-approves-airport-gas-drilling-plan/article_933e7a2d-b256-56e8-84fa-c56b39bf02a7.html

Range accused of bullying opponents
E&E News
Energy Wire
Feb 20
(full text below)
Gas producer Range Resources Corp. has been accused of employing bully tactics to crack down on its critics.

The Fort Worth, Texas-based company sued a Pennsylvania township for delaying approval of new drilling, issued a cease-and-desist letter to an anti-fracking blogger and even countersued a Texas landowner after he sought legal action over contaminated water on his property.

In the last case, Texas native Steven Lipsky alleged that Range's drilling practices had infused his well with toxic methane. Range employs the unconventional technique of hydraulic fracturing, which involves sending high volumes of pressurized water, sand and chemicals down well bores to reach previously inaccessible pockets of shale gas. In December 2010, U.S. EPA ruled that Range's gas drilling near Lipsky's property had contaminated his water with "extremely high levels" of explosive methane as well as with the carcinogen benzene.

EPA dropped the matter 15 months later, after Range said it would test 30 local wells for signs of contamination and provide EPA with the data. Then, in July 2011, Range countersued Lipsky, arguing in its suit that he was part of a "conspiracy" to "make false and damaging accusations that Range's operations had contaminated Lipsky's water well."

Lipsky maintains that Range caused his water woes and called the company "ruthless."

Range has argued that it has great relationships with most members of the 250 municipalities in which the company operates.

"Range wants nothing more than to have positive working relationships in the places we work," said company spokesman Matt Pitzarella. "It's fair to say that we may take a different approach from others from time to time, but no different than a lot of individuals or businesses."

Still, activists have called out the company for its strong-arm methods, which have included dubbing Pennsylvania lawmaker Jesse White "completely unhinged" after he starting speaking out against Range. White, once a legislative ally of the company, had his private emails seeking campaign contributions from Range executives leaked to the media soon after he changed his mind about Range's practices.

"Range Resources is different from its peers in that it chooses to severely punish its critics," said Calvin Tillman, former mayor of Dish, Texas, and an activist who has been subpoenaed and issued legal warnings by Range. "Most companies avoid the perception of the big-bad-bully oil company, while Range Resources embraces it."

Range's clashes with locals in Pennsylvania's productive Marcellus Shale typify a broader struggle within the gas industry. Many small-town residents have hesitated to allow big drillers into their communities, citing concerns about pollution, noise and traffic. But drilling companies need the land and resources to continue their business and caution that too much oversight or regulation could hamper growth.

Oil and gas producers often face bigger hurdles than consumer companies in winning public confidence, according to John Patterson of the Reputation Institute in New York.

That makes Range's aggressive behavior all the more baffling, especially considering that the company must seek local official support for regulatory approvals.

"Public relations is about relationship building and relationship management," said Brenda Wrigley, a professor of public relations at Syracuse University. "It doesn't seem that [Range Resources is] using reputation management approaches that are advisable" (Mark Drajem, Bloomberg, Feb. 19). -- BS
###

Former Pa. counsel to handle Range's legislative, regulatory affairs
E&E News
Pamela King
Feb 21
(full text below)
Range Resources Corp. has selected Terry Bossert as vice president of legislative and regulatory affairs for its Appalachia division, the company announced yesterday.
Bossert is the former senior vice president of regulatory and government affairs for Chief Oil & Gas LLC and ex-counsel to the Pennsylvania Department of Environmental Protection. He will report to Scott Roy, former deputy chief of staff to Pennsylvania Gov. Ed Rendell (D), who left office in 2009.

"Legislative and regulatory affairs are becoming an increasingly critical part of our success in other states, and the addition of Terry will afford us more opportunity to expand our work in Pennsylvania and in other divisions," said Roy, who is now Range's vice president of government affairs and communications.

Roy will continue to oversee the company's regulatory and legislative matters but will be focusing more on Range's growth and activity in other states, including Texas, where the Fort Worth-based company was recently accused of failing to properly seal two wells that allegedly leaked methane into a landowner's water well. U.S. EPA and the Justice Department dropped the case last year (EnergyWire, Feb. 20).

Bossert will work out of Range's Harrisburg, Pa., office with Michael Sherman, director of regulatory affairs; Michelle Leslie, director of government affairs; and Angela Kruse, regulatory affairs specialist.

"These additions are critical to Range's strategy. ... Range has the potential to achieve some historic accomplishments in this industry, but only if we have the right people, with the right attitude, doing the right things," said company Chief Operating Officer Ray Walker.
###

Data show more Marcellus wastewater, more injections
E&E News
Ellen M. Gilmer
Feb 22
(full text below)
Increasing amounts of wastewater are flowing from the Marcellus Shale. And though drillers continue patterns of heavy reuse and recycling, new data show more waste is heading to disposal wells.

Numbers released this week by the Pennsylvania Department of Environmental Protection show that the state's unconventional wells spat up 17 million barrels of fluid that had been used for drilling and hydraulic fracturing between July and December 2012.

That is almost a 50 percent increase over the January-June total of 11 million barrels, despite the fact that fewer wells were fracked later in the year. In the second half of 2011, wastewater was even lower at 9.5 million barrels.

Most wastewater from Pennsylvania oil and gas wells was reused or recycled during the most recent reporting period, continuing previous patterns. But a larger percentage was sent to injection wells for disposal. A small percentage, not pictured, was held in storage or sent in solid form to landfills. Data courtesy of the Pennsylvania Department of Environmental Protection.

The waste is a byproduct of every well. When companies blast millions of gallons of water and chemicals underground to access oil and gas, up to a third of that cocktail eventually oozes up to the well's surface, bringing with it compounds such as chloride, arsenic and radioactive material. Much of it comes up right after a well has been stimulated, and more comes up throughout production.

How that waste is managed has been the subject of much scrutiny in recent years. Though companies are now recycling more of it -- both to save money and to ease public concern about wastewater winding up in the public supply -- many worry whether the volume will eventually prove too much to handle (EnergyWire, Sept. 6, 2012).

Industry sources said a few factors contributed to the recent rise in wastewater. For one, the total number of wells in Pennsylvania continues to grow. The pace of new spuds may be slowing, but each additional producing well still yields an ongoing stream of produced water.

Second, many wells that were stimulated in early 2012 or before were shut in immediately after the process. The fluids were left to percolate in the wellbore for months before the driller opted to bring the well into production and unleash its initial rush of flowback water. That delay does not happen for all wells but is not uncommon as drillers wait for infrastructure to be in place before wells produce.

Managing the increased wastewater during the six-month period, drillers continued previous patterns of reuse and recycling, leaving 17 percent of it for disposal by other means -- a statistic industry representatives tout as an example of growing efficiency.

"These figures reflect our industry's commitment to effectively managing water resources," said Marcellus Shale Coalition CEO Kathryn Klaber in a statement, "especially as it relates to leveraging technologies that enable increased recycling and reuse across our operations, which are all carried out within a tightly-regulated framework."

But Kate Sinding, an attorney with the Natural Resources Defense Council, said she is worried about the point when wastewater can no longer be useful for drillers -- when it is beyond the point of reuse.

Indeed, reuse and recycle rates took a dip in the most recent period: The 83 percent that drillers reused or recycled in the last half of the year was down from 89 percent in the first half.

Between July and December, more wastewater was sent to underground injection wells -- 15 percent of total wastewater, compared to 9 percent in the first half of the year. In real terms, that means 1.5 million more barrels of wastewater were sent to injection wells later in the year, a reality that has critics on edge.

"Class II" wastewater injection wells -- which hold fluids from oil and gas production -- are sparse in Pennsylvania, which defers to the federal government to regulate them. Instead, neighboring states are the dumping ground for extra wastewater, especially Ohio.

But some residents there have grown wary of injection wells, which were linked to earthquakes around Youngstown a year ago and have been the subject of environmental concerns over whether the wells are constructed adequately to prevent any contamination of groundwater. Radical activists have even taken to temporarily shutting down operations at disposal sites by blocking vehicles and equipment.

Accidents and mishandling can happen, too; earlier this month, an oil and gas company was caught dumping wastewater into a sewer that leads to the Mahoning River, a public water supply (EnergyWire, Feb. 8).

A recent study published in Water Resources Research found that the massive increase in Marcellus wastewater threatens to overwhelm disposal infrastructure's capacity EnergyWire, Jan. 24).

"Advances in unconventional methods for wastewater management, comparable to the advances that facilitated the development of the unconventional gas resource, are now needed," wrote the authors, from Kent State University and Duke University.

Klaber, of the Marcellus Shale Coalition, said those technological improvements are in progress.

"Several years ago, these technologies were largely conceptual. Today, they are standard practice," she said. "We do, however, recognize the importance for a variety of water management options, including recycling, underground injection wells and other efficient means, which provide the needed operational flexibility to ensure the continued and sustained development of this world-class shale gas."

The new wastewater data accompany six months of reporting of oil and gas production in Pennsylvania, which was up to 1.1 trillion cubic feet of natural gas in the last half of the year after logging 900 billion cubic feet in the first half.
###

Public blasts state enviro agency for lack of oversight
E&E News
Energy Wire
Feb 22
(full text below)
Pennsylvania residents voiced their frustration with the state's Department of Environmental Protection on Tuesday at a state House committee hearing, accusing the agency of damaging the environment and endangering public health.

Rural property owners and environmentalists claimed the DEP dropped the ball on enforcing drilling activity in the state's resource-rich Marcellus Shale by issuing misleading test results and dismissing homeowners' grievances.

"The DEP should not be the gas industry's friend and protector," said Christopher Lauff, an analytical chemist and biologist who testified before the House Democratic Policy Committee at the meeting in Washington County. "DEP needs to be accountable for its actions and inactions."

Lauff and his family had tested positive for several volatile organic compounds he says came from drilling-related air pollution. The DEP also told him his water was safe to drink, but later measurements by U.S. EPA demonstrated that it contained contaminants linked to nearby well activity.

The DEP was invited to appear at the hearing, but no one from the department attended.

"DEP's attention is focused on our core mission of protecting the environment, not wasting time on political theater," the agency said in a statement issued during the hearing. "When our staff and the Secretary are invited to legislative hearings and other meetings that are productive and professional, and are arranged to further the discussion on critical issues, we are willing to attend."

State Rep. Jesse White (D), who requested the hearing, called the DEP statement insulting and noted that DEP Secretary Michael Krancer had not answered White's questions. White recently introduced a bill that would require the DEP to release complete water testing results to landowners who request it, rather than disclosing only certain information as some DEP lab workers have accused.

"Clearly, the DEP hasn't answered the questions of all the people who testified here today," he said. "What was shown is a real lack of respect for the people of Pennsylvania" (Don Hopey, Pittsburgh Post-Gazette, Feb. 20). -- BS
###