Marcellus just start of rich Pa. reserves | Philadelphia Inquirer | 04/10/2011

Marcellus just start of rich Pa. reserves | Philadelphia Inquirer | 04/10/2011.

Marcellus just start of rich Pa. reserves

New discoveries could hold even more natural gas.

By Andrew Maykuth

Inquirer Staff Writer

Natural gas drillers are accelerating exploration of several Appalachian rock formations that sandwich the Marcellus Shale beneath Pennsylvania, and some experts say the new discoveries may be as prolific as the Marcellus itself.

“What we’ve got is Marcellus times two,” said Terry Engelder, the Pennsylvania State University geosciences professor whose Marcellus Shale estimates in 2008 first drew public attention to the region’s shale gas potential.

Since The Inquirer reported in May that drillers had found recoverable gas in the Utica and Upper Devonian Shales, several operators have become more openly optimistic about a potential natural gas triple play in the region. The new discoveries add momentum to an industry that is rapidly reshaping the economy and the environment of large swaths of rural Pennsylvania.

“A year ago, I didn’t have a feeling the tests were going to be as large as I’ve seen,” Engelder said. “The implications of this are just amazing.”

Range Resources Corp., the Texas company that drilled the first Marcellus well in 2004, is bullish about multiplying output from its acreage, mostly in southwestern Pennsylvania.

“The Utica and Upper Devonian could combine to equal the Marcellus,” Range spokesman Matt Pitzarella said, though he cautioned that the estimates were preliminary.

At least four gas drillers, including Range, told investors this year they were exploring the formations, which lie above and below the Marcellus in a geological layer cake.

The expanding outlook of shale gas reserves goes far beyond Pennsylvania.

Worldwide estimates of gas reserves are growing because of revolutionary advances that couple horizontal-drilling techniques with hydraulic fracturing to unlock gas in long reaches of tight rocks.

The U.S. Energy Information Administration on Tuesday said technically recoverable shale gas worldwide could add 40 percent to global gas supply. China, South Africa, Argentina, and Australia have big reserves. So do Mexico and Canada.

According to the administration, American natural gas reserves are now at the highest level in 40 years. By 2035, shale gas will account for 46 percent of U.S. natural gas production.

Though gas burns cleaner than coal or oil, the escalation of an industrial extraction process that produces large volumes of toxic wastewater has raised fears about the trade-offs of shale gas. President Obama has championed natural gas development, but only if it can be done without endangering water supplies.

“It’s a little disheartening the industry is wringing its hands in excitement when they clearly haven’t figured out how to drill in the current shale without creating problems,” said David Masur, executive director of PennEnvironment, a lobbying organization.

Pennsylvania regulators on Wednesday pressed Western Pennsylvania water suppliers to expand the scope of tests to screen for radioactive pollutants and other contaminants from the natural gas drilling industry.

So far, 2,748 Marcellus wells have been drilled in Pennsylvania – 399 in the first three months of 2011. Experts say 50,000 wells could be drilled in the coming decades, not counting wells in other formations.

“We’re still in the early stages of this,” Masur said.

Awareness of the presence of gas in other Appalachian formations – even deep ones – is hardly new. Some operators, such as Anadarko Petroleum Corp., were attracted to Pennsylvania to explore other deep formations and then switched to the Marcellus. Range’s first Marcellus well had targeted a deeper formation called the Lockport Dolomite.

The potential of the Marcellus has eclipsed all other formations. In the last 150 years, operators have produced 47 trillion cubic feet of gas from Appalachian wells, Pitzarella said. By comparison, the Marcellus Shale is believed to contain 500 trillion cubic feet, though the amount eventually recovered will be less.

In recent months, operators have begun to focus capital on some of the other formations.

Atlas Energy Inc. executives, before their company was sold to Chevron Corp., told analysts they were exploring the Utica formation and the Upper Devonian Shale.

“Both of these shale packages are prevalent throughout Western Pennsylvania and New York, where we have over 630,000 net acres,” Atlas president Richard D. Weber said in August.

Consol Energy Inc., a Pennsylvania coal producer that last year moved aggressively into natural gas, said it had a promising Utica well last year in eastern Ohio.

Brandon Elliott, Consol’s vice president for investor relations, told investors on Feb. 28 that a vertical well produced 1.5 million cubic feet of gas from a 200-foot-thick Utica layer 8,450 feet below the surface.

That production, which required no hydraulic fracturing, “actually would be greater than any of our other vertical wells that we drilled in the Marcellus,” Elliot said.

Consol has budgeted $35 million to drill six more Utica wells later this year, he said.

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A year after Gulf oil spill, Congress is sitting on its hands | NOLA.com

A year after Gulf oil spill, Congress is sitting on its hands | NOLA.com.

ENVIRONMENT: Public agencies took contaminated soil to reservation facility | Inland News | PE.com | Southern California News | News for Inland Southern California

ENVIRONMENT: Public agencies took contaminated soil to reservation facility | Inland News | PE.com | Southern California News | News for Inland Southern California.

Chesapeake CEO: No ‘lasting environmental damage’ from fracking – News – Daily Review

Chesapeake CEO: No ‘lasting environmental damage’ from fracking – News – Daily Review.

Chesapeake CEO: No ‘lasting environmental damage’ from fracking


DALLAS, TEXAS – Issues of water contamination in Northeast Pennsylvania are due to the region’s geology, and they have not – and likely will not – be seen elsewhere, the CEO of Chesapeake Energy Corp. told reporters and editors at a business journalism conference Friday.

Aubrey McClendon, CEO of the Oklahoma City, Okla.-based company, said the drilling issue with Northeast Pennsylvania’s “very unusual surface geology” has been solved and should hopefully mean there are no future incidents of water contamination, but did not elaborate on what contamination incidents he was referring to.

There has been no “lasting environmental damage” from hydraulic fracturing drilling, he added.

Pennsylvania recently established stronger well casing and cementing standards meant to help prevent methane from migrating into water supplies.

In his keynote address, the CEO told business media that while there are stories worth writing on truck traffic, noise and even drilling company transparency, “fracking is not the story.”

McClendon also said an agency would on Monday announce a major step forward for gas drilling companies releasing chemicals used in drilling.

The Groundwater Protection Council and the Interstate Oil and Gas Compact Commission will debut the new online registry of chemical additives used in hydraulic fracturing jobs at fracfocus.org. The well-by-well information is being supplied voluntarily by major natural gas operators. The data is culled from materials safety sheets, which critics have argued are vague and incomplete.

McClendon went on to say “there is no such thing as clean coal” and blasted efforts to produce clean coal as a “waste of money.”

The CEO said fracking has “fundamentally changed the price of gas.” The price ranges around $4 per 1,000 cubic feet now, compared to $8 per 1,000 cubic feet several years ago. But he said the national conversion from using oil as a fuel to natural gas is likely still two decades away.

In a separate panel discussion at the conference, David P. Poole, senior vice president and general counsel for Fort Worth, Texas-based Range Resources Corp., said “it is physically impossible for you to frack a Marcellus well … and have any impact on groundwater.”

Asked what the cause of groundwater contamination is if it is not fracking, he acknowledged that’s something the industry has to address.

“Unless we can prove we are innocent, we are not,” he said, adding that doing baseline testing of water wells before companies do drilling would show what the water quality is beforehand and would also show if there was already contamination.

Contact the writer: cschillinger@timesshamrock.com.

TIME Magazine video: Bradford County

Gmail – TIME Magazine video: Bradford County –

In northeastern Pennsylvania, natural gas from shale rock promises clean, abundant energy for the U.S. and the world. But locals worry about the environmental and social costs.


Nuclear Woes Could Propel Quest For Natural Gas : NPR

Nuclear Woes Could Propel Quest For Natural Gas : NPR.

Landowners’ Coalition Opposes Local Protective Ordinances Apr. 9, 2011

Reminder – Central New York Landowner Coalition to Meet April 9th, Topic: Anti-Gas Activism Targeted at Town Boards

For landowners who belong to the Central New York Landowner’s Coalition (a very large coalition in Upstate NY), there will be an all-coalition meeting on Saturday, April 9th to discuss recent developments by those opposed to drilling. The coalition believes drilling permits are likely to start being issued soon, and those who oppose drilling are now “taking the fight” to local town boards in an attempt to regulate and prevent drilling. The coalition wants to address that issue.


MDN will be on hand to cover the proceedings of this event.

From the announcement:
CNY LANDOWNER’S COALITION ALL-COALITION MEETING
Saturday, April 9th, 2011
The Unadilla Valley Central School
4238 State Highway 8, New Berlin, NY 13411

The SGEIS is due out in 2 months, negotiations are heating up and the anti-gas activists are trying to sway your town boards to ban drilling.  It’s time to hear the latest info on our chats with the industry and to unite on a strategy to protect your landowner rights at the town level.  Our coalition maps will be posted and committee members will be available for your questions.  Plus we’ll equip you with everything you need to be sure your town doesn’t strip you of your landowner rights and privileges.

9:30-11:30 Meeting – Last Names beginning with A-K
1:30-3:30 Meeting – Last Names beginning with L-Z

This is an important meeting to attend.  If the state continues on the path to complete the SGEIS and allow permitting, and if we win the battle on the town level, our next meeting after this one very well could be the one meeting that we have been waiting for.  However, if we don’t come to this meeting to be equipped to win at the town level, we may be waiting for a long time to see any drilling take place in our region.  We look forward to seeing you on the 9th.

Pa. to expand post-drilling water testing | Press & Sun-Bulletin | pressconnects.com

Pa. to expand post-drilling water testing | Press & Sun-Bulletin | pressconnects.com.

Pa. to expand post-drilling water testing

7 Comments

HARRISBURG — Prodded by the federal Environmental Protection Agency, Pennsylvania said it is expanding the scope of water tests to screen for radioactive pollutants and other contaminants from the state’s natural gas drilling industry.

The state Department of Environmental Protection’s acting secretary, Michael Krancer, wrote Wednesday to the EPA to say he has requested additional testing from some public water suppliers and wastewater treatment facilities.

Those steps, he said, were in the works before the EPA’s regional administrator, Shawn Garvin, sent a March 7 letter asking Pennsylvania to begin more water testing to make sure drinking water isn’t being contaminated by drillers. The state’s requests for additional testing, however, were made later in March, Krancer said.

The tests should check for radium, uranium and the salty dissolved solids that could potentially make drilling wastewater environmentally damaging, according to the letter.

In his letter, Garvin pointed out that most treatment facilities are unable to remove many of the pollutants in the drilling water.

Garvin also asked Pennsylvania to re-examine permits issued to the treatment plants handling the waste, saying they lacked “critical provisions.”

Krancer responded that requirements to monitor for substances of concern will be added to permits upon renewal and where warranted.

An EPA spokeswoman, Donna Heron, said Thursday that her agency is reviewing Pennsylvania’s letter.

“We will continue to work closely with the state of Pennsylvania on all the issues involving Marcellus Shale,” she said.

Shale drilling requires injecting huge volumes of water underground to help shatter the rock — a process called hydraulic fracturing. Some of that water then returns to the surface.

Pennsylvania allows partially treated drilling wastewater to be discharged into rivers from which communities draw drinking water.

Some Pennsylvania drilling wastewater is reused or trucked out-of-state for disposal underground. Of the wastewater that was taken to treatment plants in recent months, the great majority went to seven plants that discharge into rivers, including the Susquehanna.

Oil Spills May Leave More Emotional Than Physical Scars, Study Finds – NYTimes.com

Oil Spills May Leave More Emotional Than Physical Scars, Study Finds – NYTimes.com.

Proposed Bill Allows PA Universities to Keep Marcellus Drilling Revenues for Building Projects | Marcellus Drilling News

Proposed Bill Allows PA Universities to Keep Marcellus Drilling Revenues for Building Projects | Marcellus Drilling News.