Showing posts with label natural gas. Show all posts
Showing posts with label natural gas. Show all posts

Thursday, June 9, 2011

Warrendale Gas Co. Bought by Exxon

ExxonMobil has bought regional natural gas drillers Philips Resources and TWP in a $1.7 billion deal.

Dr. Kent Moors of Duquesne University’s Institute for Energy and the Environment says he’s not surprised by the acquisition, because big energy companies have already bought several small, local drillers.

Moors says purchases like this prove a couple of things.

“First, there is a movement from oil to natural gas. Natural gas will comprise a greater percentage of what it is these major companies actually drill, and a greater percentage of their bottom line,” says Moors. “And secondly, it makes more sense, especially for these large companies, to acquire somebody that already has experience doing it.”

The Duquesne professor says large companies want to avoid lawsuits, so they may put more resources into avoiding environmental mishaps than a smaller company might.

President Kathryn Klaber of the Marcellus Shale Coalition says the purchase shows the natural gas formation’s “transformative power” for Pennsylvania. She says investment from international companies can mean only good things for the region.

Tuesday, May 3, 2011

Corbett Admin Says Drillers Are Paying Taxes

The Pennsylvania Department of Revenue released an analysis showing natural gas companies have paid more than 1.1 billion dollars in state taxes since 2006. According to the Department, 857 of the companies have already paid 238.4 million dollars in taxes, exceeding last year's collection. This report comes after a group of Democratic Senators claimed the Commonwealth is losing money to the "Delaware Loophole".

The "Delaware Loophole" is when subsidiaries of companies register in Delaware so they do not have to pay corporate income tax in Pennsylvania. According to Senator Tina Tartaglione of Philadelphia, 70% of the companies doing business in Pennsylvania do not pay the corporate net income tax, while businesses in Delaware have grown to 115,000.

Elizabeth Brassell, spokeswoman for the Department of Revenue, says the statistic of 70% of companies not paying taxes is misunderstood. "The majority of those aren't paying because they shouldn't. Companies that don't make money in a particular year or are inactive for a particular year, and we're finding that that's about 65% of the corporate net income taxpayers, they don't have profits to pay taxes on."

Brassell says the "Delaware Loophole" has become a political buzzword and some studies have shown that eliminating it would decrease the amount of revenue for the state. She says the state will continue to see revenue from gas companies because it is a growing industry.
Brassell says there will be monthly reports on the tax payments by drilling companies at the urging of Governor Corbett.

Wednesday, January 26, 2011

Group Educates Public on Drilling from Industry's Perspective

The Associated Petroleum Industries of Pennsylvania (API) and the Pennsylvania Independent Oil and Gas Association (PIOGA) have created the Keystone Energy Forum (KES) to educate residents and organizations about natural gas drilling in the Marcellus Shale. The Forum will serve as an educational arm of the drilling industry, and Bill Stewart, director of the Forum says KES represents the interests of 95% of the drilling companies working in the Marcellus Shale. Stewart and API Executive Director Rolf Hanson are quick to point out that this is not an advocacy group, Rolf says it's purely educational "there's such a thirst for information out there from these groups that haven't had an industry source to turn to in the past." He says they'll also help demystify controversial areas like hydraulic fracturing and water quality and highlight the regulations that come with drilling in Pennsylvania. More information can be found at keystoneenergyforum.com.

Tuesday, January 18, 2011

Groups Call for Maintaining Drilling Moratorium

Late last year Governor Ed Rendell signed a moratorium halting the awarding of new leases for natural gas drilling in state forests. Governor-elect Tom Corbett has expressed that he plans to repeal the moratorium once he's in office. Now a group of environmental and civic organizations is calling on Corbett to keep the moratorium in place until the impact of natural gas drilling in forests can be further studied. Heather Sage, vice president of PennFuture says the industry has the potential to harm the state's natural assets and the industries that depend on them, including tourism and logging. Sage says another 1,500 well pads containing 5,000-6,000 wells could be drilled in the next ten years on forest land, "and within those forest lands we've got more than 2,500 miles of trails and opportunities for people to hunt, fish, hike, ski...it's really a major industry for Pennsylvania." PennFuture was joined by the Sierra Club, the League of Women Voters, the Pennsylvania Council of Churches and Preservation Pennsylvania in urging Corbett to maintain the moratorium. Sage says if the governor-elect doesn't heed their call "it's not only an environmental issue, it's an economic issue and there's a lot of jobs at stake here. And I think there are a lot of potential ways that citizens and industries can push back on this, but we're hoping that we don't have to do that."

Thursday, December 9, 2010

Peaceful Protest to Protect Powdermill To Be Held at the Carnegie

The Carnegie Museums of Art and Natural History will be the site of protest this evening. A group of opponents to Marcellus Shale gas drilling will protest outside the museums' holiday event. The Carnegie is considering a proposal to allow gas pipelines from nearby gas wells to run through its Powdermill Nature Reserve.

According to Mel Packer, an organizer of today’s protest, Powdermill Nature Preserve, kept in near untouched condition for 60 years by the Carnegie Museum, would be at risk of pollution...

“Powdermill is a pristine nature preserve which, in the words of the Carnegie scientists, has one of the only unpolluted streams that they can do aquatic research in. To allow drilling around that site will inevitably poison that stream and absolutely spoil Powdermill.”

Pittsburgh City Council Tuesday unanimously approved a resolution urging the Carnegie not to cooperate with any natural gas extraction in or around the Powdermill Nature Reserve.

Museum spokeswoman Betsy Momich earlier said that the board of trustees is studying proposals.....and environmental impact "is at the top of the list of concerns" but revenue from drilling is a factor. The museum uses the nature reserve in Cook Township as a research field station where scientists study changes in the environment and wildlife populations.

Thursday, November 18, 2010

Natural Gas Health Impact Conference to Convene at Pitt

Experts on the natural gas industry and its impact on the environment and the public's health are coming to Pittsburgh tomorrow. They plan to discuss the direction of the industry, issues that need to be addressed and how research can positively impact policy and regulatory decision making. Dr. Conrad Volz, director of the Center for Healthy Environments and Communities at the University of Pittsburgh says they'll talk about potential, projected and actual impacts of the natural gas industry. He says many of those effects are already being felt through degraded air quality and the impacts on drinking water. The conference will present the scientific challenges and issues that are being explored by government and academic investigators, as well new methodologies being employed to assess the health impacts and reduce the hazards produced by gas extraction, refining, and delivery operations. Volz says they also plan to create a document identifying gaps in research and unknown impacts of the industry and how to fill in those holes. The conference takes place tomorrow at Pitt and registration is closed.

Wednesday, October 13, 2010

New Drilling Rules Passed by Environmental Board

Pennsylvania's Environmental Quality Board passed updated regulations for natural gas drilling yesterday, requiring drillers to build higher-quality wells and report more information to the public.

The new rules would mandate better casing and piping in wells to prevent natural gas from escaping in the extraction process. Energy companies would also need to report the chemicals used to hydraulically fracture shale formations, in addition to publicizing the volume of waste they produce. Finally, the rules would reduce the maximum pressure for gas wells and require drillers to restore any water supplies they pollute.

Department of Environmental Protection Secretary John Hanger says the new environmental regulations will be the toughest in the country.

Hanger says enforcement of the new rules will be crucial to their success. Hanger says since he took office, he has doubled the amount of inspection staff for Marcellus Shale gas wells.

The Marcellus Shale Coalition, a group of energy companies, supports the new regulations. Coalition President Kathryn Klaber says the group wants to change the mindset that drillers don't care about the environment.

The proposed regulations will now move to the Independent Regulatory Review Commission and legislative committees before they can be made law.

Monday, October 4, 2010

Marcellus Works Proposal

House Republican Policy Committee Chairman Stan Saylor from York County has introduced a program called Marcellus Works. The proposal has 4 main components, to transition state vehicles to "natural gas" or the type of gas found underground, provide tax credits for "natural gas" vehicles and infrastructure, providing conversion grants to local governments to convert their fleets to "natural gas" and installing natural gas stations at every stop on the Pennsylvania Turnpike a natural gas corridor.

Saylor says he does not believe there are detrimental environmental effects to hydraulic fracturing.

He said his proposal will keep gas drilling industry in the state and thousands of jobs in the natural gas industry and in the infrastructure, manufacturing and the service sectors.

Tuesday, September 14, 2010

Pittsburghers Decry Possible Urban Gas Wells

Last night, community members and environmental activists voiced their support for Councilman Doug Shields’ bill to ban Marcellus Shale natural gas drilling in Pittsburgh.

Council Chambers were packed with people toting signs and wearing T-shirts protesting the Shale drilling, while a single supporter of city drilling couldn’t be found.

Former Green Party Senate candidate and environmental activist Mel Packer says Council should pass the bill, despite the fact that it goes against a state regulation that says municipalities can’t outlaw gas wells.

“You need to ignore the lawyers that will tell you it will likely be declared unconstitutional by the state courts, because it’s in conflict with Pennsylvania state laws. You need to welcome that controversy. You need to challenge the law that says the citizens of the city don’t have the right to defend, to protect our environment. You need to stick up for the civil rights of our community. You need to stick with the citizens, not corporate powers.”

Kate St. John of Greenfield says drilling in the city would lower property values and quality of life in the neighborhoods containing gas wells.

Many echoed pollution concerns surrounding the fluid drillers use to fracture the rock layers surrounding deep pockets of gas, saying that such “fracing” water contains carcinogens and contaminates water supplies.

Wednesday, August 25, 2010

Carnegie Museum Property Eyed for Drilling

Natural gas companies are interested in drilling on land that belongs to the Carnegie Museum of Natural History in Westmoreland County. Carnegie Spokeswoman Betsy Momich says they've received inquiries from several companies about drilling at the 2,200-acre Powdermill Nature Reserve. She says the museum's trustees are studying the proposals but are a long way from making a final decision. Momich says environmental impact is at the top list of concerns and the revenue from drilling is also a factor. The museum uses the nature reserve in Cook Township as a research field station where scientists study changes in the environment and wildlife populations.

Tuesday, August 17, 2010

Ridge Speaks for Marcellus Shale Coalition

Former Pennsylvania Governor Tom Ridge spoke to a convention of energy company representatives today, stressing the need for environmentally safe Marcellus Shale gas extraction while hailing the industry’s economic benefits.

Ridge says state government should be the regulating authority on gas drilling, not individual municipalities. The former governor says the drilling ban proposed by Pittsburgh Councilman Doug Shields should be just the “first chapter” in a longer discussion.

Ridge says there should be public information sessions on the drilling process to assuage people’s fears for the environment.

“It was explained to me how they are able to drill through the water table, how you layer in layers of steel and cement through the water table so you don’t pollute it. There’s a tremendous amount of engineering and science that goes into this, and I think part of our challenge is to better understand it,” says Ridge.

Ridge says drilling presents three revenue opportunities for the state: corporate income tax, employee income tax, and a possible extraction tax. He says natural gas prices would drop, and Pennsylvania could become a major global exporter of the resource.

Ridge is being paid by the Marcellus Shale Coalition for a year of consulting.

Wednesday, August 11, 2010

Regulations Would Tighten Gas Drilling Standards

A proposal to update Pennsylvania’s natural gas drilling regulations has moved from the public comment phase to an Independent Regulatory Review Commission.

Clean Water Advocate Erika Staaf of PennEnvironment says the regulations would require three things: safer wells, a list of the toxic chemicals used in the drilling process and quarterly well inspections.

Staaf says while the new “Chapter 78” rules would be an important step forward, she says the proposal should be stricter in regulating the return of hydraulic fracturing fluid to waterways once it’s been treated.

“The quality of the restored or the replaced water supply will be considered adequate if it’s comparable to the unaffected water supply, even if that original water supply didn’t meet drinking water standards. We believe that it is unconscionable that a gas driller could supply someone with drinking water that does not meet drinking water standards.”

Staaf says more than 2,000 people commented on the proposed regulations.

Standing legislative committees and the Independent Regulatory Review Commission will comment on the proposal before sending it to the Department of Environmental Protection. From there, a final version will have to pass through those regulatory bodies again before being okayed by the state Attorney General.

Saturday, July 24, 2010

Texas Crew Helps Put Out Gas Well Fire

About 10 and a half hours after an explosion at a natural gas well in Indiana Township, Allegheny County, firefighters extinguished the intense blaze. A team of oil and gas well firefighting experts were flown in from Texas to help put out the fire which was being fueled by natural gas. The explosion killed two workers but a third member of the crew was not injured.
Allegheny County Emergency Management Chief Bob Full says firefighters first tried using foam on the fire but then brought in water tanker trucks.
3 firefighters were taken to the hospital for treatment of heat-related problems due to temperatures in the low 90's compounded by the intensity of the fire.

A spokeswoman for the Pennsylvania Department of Environmental Protection says the workers had been welding equipment at the site of the gas well.
DEP spokeswoman Helen Humphreys told DUQ News that the gas well was 2 years old, a shallow well of about 3,500 feet in depth and was operated by Huntley and Huntley of Monroeville. The well is on property owned by the Rosedale Sportsmen's Association. That company operates about 350 gas wells in the Pittsburgh area. Humphreys says fortunately this well was located in a rural area with few nearby residents.

County officials continue to investigate the explosion and fire.

Friday, July 23, 2010

Gas Well Explosion Update

After two men were killed in a gas well explosion this morning, Allegheny County emergency crews continue to fight the resulting fire at the Indiana Township well.

The blast occurred at a Huntley & Huntley natural gas well at about 9:50 this morning. The two workers killed in the accident are believed to have been welding at the time of the explosion.

Pennsylvania Department of Environmental Protection spokesperson Helen Humphreys says DEP is on-site, trying to determine the best way to "shut the well in." Humphreys says the lines connected to the well have now been shut down in order to isolate the rig.

Humphreys says while the blast fortunately happened in a wooded area with few structures nearby, it's still a dangerous situation. She says the greatest concern at this point is the fire. Crews can't tell yet if gas is leaking from the site as well as burning.

Humphreys says the 3,500-foot-deep well was completed two years ago, so whatever work the crews were doing was unrelated to drilling. She says DEP has not found any safety violations from Huntley & Huntley, who Humphreys says own several wells in the area.

Thursday, July 22, 2010

Gas Representatives, Environmentalists Spar at Hearing

Allegheny County Council held a public hearing on Marcellus Shale natural gas drilling in the county last night.

Environmental groups like Clean Water Action and PennFuture spoke about the environmental downsides of drilling in Allegheny County while county energy companies such as Atlas Energy and Consol Energy touted the industry’s job-making capabilities.

County Council members addressed concern over three main areas: frack water pollution, jobs, and the health of county roads.

Carl Carlson of Range Resources says PennDOT has regulations requiring the industry to cover the costs of road damage inflicted by their vehicles.

Atlas Energy President Richard Weber says the industry would also bring jobs to the county, by both hiring Pennsylvania workers and bringing in experts from other states.

Clean Water Action Western Pennsylvania Director Tom Hoffman says he supports a statewide moratorium on Shale drilling so that the state has some “breathing room” to investigate safety and health issues. Hoffman pointed to a recent gas well blowout in Clearfield County that allowed thousands of gallons of chemically-treated frack water to leak into the surrounding environment. Hoffman also mentioned air pollution caused by the drilling, which he says is underestimated.

But Weber says a statewide moratorium on drilling would mean thousands of layoffs and a large loss of revenue for Pennsylvania.

Greg Vogt of the International Brotherhood of Electrical Workers Local 5 says 500 of his union’s 7000 members are working on Marcellus Shale pipelines, but that number is declining due to increasing competition from out-of-state contractors. Vogt described the Marcellus Shale job outlook as a “mixed bag” for Pennsylvanians.

Gas company representatives faced a tough crowd, as they were booed, heckled, and even ridiculed over the course of the meeting.

Monday, July 19, 2010

Anti-Drilling Rally in Bloomfield Tonight

Pittsburgh's Student Environmental Coalition will hold a rally in Bloomfield tonight protesting Marcellus Shale drilling.

SEC member and organizer Seth Bush says he thinks it's time to take action against natural gas drilling, especially now that Pittsburgh leaders are discussing the possibility of gas wells in the city. Bush says the rally will help people get active about the issue.

"We're going to have a letter-writing campaign there, sponsored by Clean Water Action," says Bush. "We really want people to network with each other, get involved, and if they're not already involved, find a way to do that. So we're actually even going to be having a roll call of some of the present organizations, so people know what's out there so they can get connected."

Bush says some of the speakers at the 45-minute event include State Senator Jim Ferlo (D - Allegheny), Green Party U.S. Senate candidate Mel Packer, and Erika Staaf of PennEnvironment.

Bush says he thinks the economic benefits of natural gas drilling are outweighed by the environmental downsides -- he says that's evidenced by the recent gas well blowout in Clearfield County that leaked thousands of gallons of chemically-treated water into the surrounding area.

Bush says he's especially opposed to gas drilling in densely-populated Pittsburgh, where he says such an incident would have even worse consequences.

The rally will be held at 7:00 tonight at Friendship Park in Bloomfield.

Friday, July 2, 2010

Gas Drill Wastewater Thought to Contaminate Cows

Pennsylvania’s Department of Agriculture has quarantined several cows in Tioga County after they were exposed to natural gas drilling wastewater.

Dept. of Agriculture spokesman Justin Fleming says after making contact with the contaminated ‘fracking’ water, the 28 cattle will be withheld from the market from six months to two years, depending on each cow’s age.

The drilling wastewater is thought to have leaked from a nearby holding pond that serves an East Resources, Inc. gas well.

Fleming says it’s uncertain if the beef cows actually drank the wastewater, but its high salinity is likely to have attracted them.

While the Dept. of Agriculture can’t test the cows without killing them, Fleming says toxic chemicals were found in the water itself.

“Tests on the wastewater found that it contained chloride, iron, sulphate, barium, magnesium, sodium, strontium, and other elements,” says Fleming. “While I’m not positively sure about what those effects could be on animals, we don’t want chemicals like that in any supply of meat that could be purchased in a store here in Pennsylvania or elsewhere.”

The 28 cows quarantined are all but two of the farmer’s stock.

Fleming says while he can’t speculate on whether events like this will become more common soon, most natural gas drilling is done in rural areas.

Pennsylvania's Department of Environmental Protection has issued a notice of violation to Eastern Resources. DEP spokesman Tom Rathbun says the company will be fined within the next month or so; he says the severity of that fine depends on the company's behavior regarding the situation. Rathbun says the DEP has finished cleaning up the wastewater.

Monday, June 21, 2010

Energy Co. Wants to Develop in Southwest Pa.

A new power plant slated for Westmoreland County is in the works.

Tenaska Energy of Nebraska is pursuing clearance to build a natural gas-powered facility that would provide electricity for about 900,000 homes along the East Coast.

Tenaska Project Manager Dan Culver says the construction process of the South Huntington Township plant will take about five years. He says the plant would create 300 construction jobs and 25 to 30 permanent positions.

Culver says the facility would be “clean, modern, and quiet.” He says Tenaska has a reputation as an environmentally responsible company.

“The Natural Resources Defense Council, in 2008 in their benchmark studies, listed Tenaska as having the best record for controlling emissions of carbon dioxide and as one of the top performing companies for controlling nitrogen oxide and sulfur dioxide.”

Though the complex would only take up a space of about 50 acres, Tenaska has bought 400 acres of land just south of I-70 near West Newton. Culver says that would create a buffer to keep the plant out of sight of its neighbors.

Culver says the natural gas capacity of the Marcellus Shale bodes well for the Westmoreland plant.

More information on the plant can be found here.

Friday, June 11, 2010

Wastewater Treatment Facilities Touted by DEP Chief

Pennsylvania Department of Environmental Protection Secretary John Hanger toured the new Reserved Environmental Services wastewater treatment plant in Westmoreland County today, saying such facilities are needed as more Marcellus Shale gas wells are drilled.

Secretary Hanger says wastewater treatment facilities help fight waterway pollution by making contaminated water fit for reuse at natural gas drill sites.

Hanger says its important that the state finalize its regulations on gas well wastewater soon, so investments in more plants will come forth. He says that will create jobs.

The DEP chief says right now, gas companies have two other options for the disposal of this water.

“They can move the water to an Environmental Protection Agency deep cavern thousands and thousands of feet underground, well away from any groundwater,” says Hanger. “Or, we’re in Pennsylvania allowing them to return it to our rivers and streams if, and only if, they treat it so that all of the pollution, including the total dissolved solids, is taken out.”

Hanger says to make wastewater pure again, gas companies must put it through a second type of treatment plant. He says Reserved Environmental Services hopes to build such a plant soon.

DEP Gives EOG Green Light to Drill 2 Wells

Last week at the Punxsutawney Hunt Club something went awry with a natural gas well operated by EOG Resources. Gas and fracking fluids shot into the air for 16 hours, polluting the area, including a tributary to Little Laurel Run. Pennsylvania's Department of Environmental Protection ordered EOG to cease drilling until they could investigate the cause of blowout. According to DEP spokesperson Neil Weaver, EOG operates 70 wells around the state and four, including the problem well at the Hunt Club site. The DEP has hired independent expert John Vittitow of Bedrock Engineering in Fort Worth Texas to assess the wells. Vittitow’s specialty is petroleum drilling and post-fracking operations, which is the stage when the blowout occurred June 3. The DEP has said it collected 35,000 gallons of fluid after the incident. Weaver says after examining two of the wells on the Hunt Club site, they've given EOG the go-ahead to drill, while the other two wells continue to be investigated. Weaver says they based their decision on how far along each well is in the drilling process. The two given the green light are at the beginning stages while the third and fourth are in the fracking and extraction phases. He says the investigation will help them determine what caused the blowout—whether it was a problem with the machinery, human error or operational failure—and how to make sure it doesn’t happen going forward.