081310 mundy gas bill

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WB_VOICE - CVDAILY - 5 - 08/13/10 WB_VOICE/PAGES [T05] 08/12/10 22:14 SUPERIMPWB Marcellus Shale Northeastern Pennsylvania’s New Frontier By Patrick Sweet Staff Writer Future natural gas wells may be pushed outside of floodpl ains if new legisla- t i o n i s approved. State Rep. Phyllis Mun- dy, D-Kings- ton, plans to introduce a b i l l t h at wouldrestrict drillers from constructing well pads or drilling within floodplains. Non e of theplannedwell s in Luz erneCount y arewith- in floodplains, according to the state Department of  Environmental Protection. A southern Wyoming Coun- ty well located on Robert Longmore’s Monroe Town- ship farm is also not within a floo dpla in. The legislation will amend the Oil and Gas Act of 1984 and, Mundy announced Thursday in a news release, strengthen drilling regulations. Mundy out lin ed thebill as: Strengtheningwell loca- tion requirements, Changing erosion and sediment control permit requirements, including requiring the state Depart- mentof Env ironmentalPro- tection to visit sites before issui ng permit s, Requiring the state Departmentof Envir onmen- tal Protection to evaluate andtrackwellwaste , and Req uirin g a stud y of th e impact of “all anticipat ed oil and gas activities throughout the common- wealth.” “The laws we have on the books in Pennsy lvania to monito r drilling are lax in termsof prot ecti ng theenvi- ronment,” Mundy said in the release. “More needs to be done and my legislation would provide necessary guide linesand prot ectio ns.” The bill will also prevent drillers from discharging wastewater into surface waters for threeyears. During that moratoriu m, Mundy said, the DEP will take up the task of evaluat- ing alternative wastewater disposal methods. “The department would then be required to enforce those alternatives,” the release states, “provided they are environmentally sound.” Within the first six months of the moratorium, the release states, the DEP wil l ha ve to cre atean onl ine tracking system for oil and gas was te as we ll. [email protected], 570-821-2117 Mundy No state forest lands are left for gas leasing By Laura Legere Staff Writer There are no unleased acres left in Pennsylvania’s stat e forest s whereMarcellus Shale natural gas drilling sites, pipelines and access roa ds could be bui lt wit hou t damaging environmentally sens iti ve areas , accor ding to a newanaly sisby theDepart - ment of Conserv ation and Natural Resources. Nearly 139,000 acres of stat e fores t hav e been leas ed forgas dri lli ng sin ce 200 8 and money from those lucrative leases — a total of $354 mil- li on has beenused tohel p balance the last two state budgets. But DCNRSecreta ry John Quigley said the era of leas- inglargeparc el s of st at e fo r- est s forgas dri lli ng is ov er. “We may do some little stuff hereand there ,” he said, “but in terms of large-scale leasi ng, we’redone.” The depart ment’ s findin gs, demons trated in a series of overlain maps on DCNR’s website, show the forests in north-central Pennsylvania abo ve the gas-r ich Mar cell us Shale crowded by leased land , parc els wher e the stat e does not own the mineral rights and places where dev elop mentmust be rest rict- ed. Of the 1.5mill ionacresof state forest underlain by the shale, 700,000 acres have already been leased or the mineral rights under them are controlled by an owner oth er tha n thestate . An addit ional702,500 acres are in ecologically sensitive areas — places with protect- ed species, forested buffers, old growth or steep slopes. Ano ther 27,5 00 acre s are des - ignated as primitive and remote lands, 49,600 acres wer e ide nti fie d thr ougha for - est conservation analysis as priority conservation lands, and the last 20,400 acres are so entwined with the other sen sit iv e are as tha t the y can- not be developed without damagi ng them. The department began to stud y the limits of the state fo res t la nd that cansafe ly be leased to gas drillers as it deve lop ed a ser ies of Mar cel - lus gas leases in 2008 and Jan uar y andMay 201 0. Gas drilling has taken pla ce on sta te for estland for more than six decades, and mineral extraction is one of the forest’s designated uses, along with sustaina ble tim- ber harvest ing, recreat ion and conservation. But Quig- ley said “there are limits to how much you can develop the resource and maintain balance. And I think we’re there.” Ther e are curren tly abou t 10 prod ucingMarcellu s Shal e gas wells in the state forest. The department expects the re wil l be ab out6,000well s on 1,000 separate drilling pads when the resource is fully developed in 15 or 20 years. The secretary said the prime consideration for any fut ur e lea sin g, “if we do any atall, wi llbe thatdril li ng or associated activities not dis- turb the forest’s surface — a possibility with horizontal drilling technology that enab les dril lersto access the mile-d eep shale from adja- cent prope rties. The imp act of t he DCNR’s finding s is unclea r . Gov . Ed Ren dell said ear li- erthis ye ar tha t noaddit ion al fo res t la nd wil l be off er ed fo r lease during his tenure, which ends in January , but the department’s findings ha veno legalbeari ng on the next administ ration’ s ability to change its forestpolicy. A bip arti san groupof law- makers in the House passed a three-year moratorium on new leasing of state fore st land for gas drilling in May, butthe mea sure hasnot bee n taken up by the Republican- led Senat e. Patrick Henderson, a spoke sman for Senat or Mary Jo White, R-Franklin, the chai r of the Sena te En viro n- mental Resources and Ener- gy Committee, said he does not sen se “atall” an ups wel l of supp ort among the mem- ber s of theSenat e to pas s it. Hende rsonsaidthe depart- ment ’s find ings “carry some wei ght ,”but hesaidthe cla im that there is no forest land left for surface gas develop- ment is subje ctiv e. “I think differe nt people can con clu de if the re ma y be so metrac tsof la ndout of 1.5 million that lie within the fair wa y to lea se, he sai d. A $120 million lease deal DCNRreache d with Ana dar - ko Petroleum Corp. in May tha t is exp ect ed to ha vemini- mal impact on the state for- est’s surface could not hav e been possible if the House’s moratorium bill had been law , he said. “There’s something to be sa idfor ha vi ng a fr es h se t of eye s und er the new adminis - tration take a look at it and draw their own conclu- sions.” Quigley was optimistic that if futuredecisions about forest leasing are left to DCNR,his depart ment ’s find- ingswill sta nd. “The science tells us that we’ve reached the limit,” he said. He added, “The question becomes whether we will face another occasion when economics loomslarger .” [email protected] UGI Corp. plans to invest more than $300 million over the nexttwo yea rs to dev elo p natu ral gas infr ast ruct ure in theMarcel lusShaleregion,a p r o j ec t that includes a “maj or pip elin e proj ect, the utility company announced Thursday. UGI officials outlined the mov e in a one- and- a-hal f-pa ge news release sent out after norma l bus ine ss hou rs with - out pro vid ing det ailsof exac t- ly whe re the comp any migh t locate such a pipeline. The projectwould bringMarcell us Shale producers in the state “improv ed accessto high-v al- ue mar ke ts ,” acc ord ingto the release. TheFeder al EnergyRegula- tory Commission must approve the project, which UGI said would be available forservicelatein 201 2. UGI als o announce d pla ns to improve delivery options from storage fields in north- centralPennsyl vaniaby build - ingmore sto ragewell s,among other project s. UGI officials could not be reache d for further comme nt Thursda y even ing. The Marcellus Shale rock formati on ext end s fro m New York, through Pennsylvania andinto WestVirg ini a andis believed to hold hundreds of tri lli onsof cub ic fee t in nat u- ral gas. The vast reserve has prov idedan econo micboon for gas compan ies and res ide nts will ing to lea se the ir lan d for drill ing,but hasbrought safet y concerns as well as fears of environmentalissues associat- ed with breaking apart the sha leto acc essthegas. — Andrew Staub Mundy proposes keeping gas wells away from floodplains BOB DONALDSON / PITTSBURGH POST-GAZETTE Separ ator tanks are seen in Mauri ce K. Goddar d State Park in Sandy Lake as contractors land-  scape around the Cochran No. 1 gas well head. Searc h for natural gas leases , permits and more in our online databases at citizensvoice.com/ drilling. citizensvoice UGI to spend $300M on drilling project Eileen Miner Travel, Inc. Call Eileen Direct at (570) 466-1743 Includes Two Nights at the Chateau Frontenac Canada • Montreal • Quebec City • Saratoga • Thousand Islands Oct. 20 - 25 — $ 895 pp 5 breakfasts, 3 dinners, all tours and admissions for itinerary inclusions T  H E   C I    T  I    Z  E  N  S     V   O I     C E  F  R I    D A  Y    , A   U  G  U  S T  1  3   , 2  0 1  0  5  

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Page 1: 081310 Mundy Gas Bill

8/7/2019 081310 Mundy Gas Bill

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WB_VOICE - CVDAILY - 5 - 08/13/10 WB_VOICE/PAGES [T05] 08/12/10 22:14 SUPERIMPWB

Marcellus Shale Northeastern Pennsylvania’s New Frontier

By Patrick SweetStaff Writer 

Future natural gas wellsmay be pushed outside of floodplains if new legisla-

t i o n i sapproved.State Rep.

Phyllis Mun-dy, D-Kings-ton, plans tointroduce ab i l l t h a twouldrestrictdrillers fromconstructing

well pads or drilling withinfloodplains.

None of theplannedwells

in LuzerneCounty arewith-in floodplains, according tothe state Department of Environmental Protection.A southern Wyoming Coun-ty well located on Robert

Longmore’s Monroe Town-ship farm is also not withina floodplain.

T h e l e g i s l a t i o n w i l lamend the Oil and Gas Acto f 1 9 84 a n d, M u nd yannounced Thursday in anews release, strengthendrilling regulations. Mundyoutlined thebill as:■Strengtheningwell loca-

tion requirements,■ Changing erosion and

sediment control permit

requirements, includingrequiring the state Depart-mentof EnvironmentalPro-tection to visit sites beforeissuing permits,■ Requiring the state

Departmentof Environmen-tal Protection to evaluateandtrackwellwaste, and■Requiring a study of the

impact of “all anticipatedo i l a n d g a s a c t iv i t ie sthroughout the common-wealth.”

“The laws we have on thebooks in Pennsylvania tomonitor drilling are lax intermsof protecting theenvi-ronment,” Mundy said inthe release. “More needs to

be done and my legislationwould provide necessaryguidelinesand protections.”

The bill will also preventdrillers from dischargingwastewater into surface

waters for threeyears.During that moratorium,Mundy said, the DEP willtake up the task of evaluat-ing alternative wastewaterdisposal methods.

“The department wouldthen be required to enforcethose alternatives,” therelease states, “providedthey are environmentallysound.”

W it h i n t h e f i r st s i xmonths of the moratorium,

the release states, the DEPwill have to createan onlinetracking system for oil andgas waste as well.

[email protected], 570-821-2117

Mundy

No state forest lands are left for gas leasingBy Laura LegereStaff Writer 

There are no unleasedacres left in Pennsylvania’sstate forests whereMarcellusShale natural gas drillingsites, pipelines and accessroads could be built withoutdamaging environmentallysensitive areas, according toa newanalysisby theDepart-ment of Conservation andNatural Resources.

Nearly 139,000 acres of state forest have been leasedforgas drilling since 2008 and

money from those lucrativeleases — a total of $354 mil-lion — has beenused tohelpbalance the last two statebudgets.

But DCNRSecretary JohnQuigley said the era of leas-inglargeparcels of state for-ests forgas drilling is over.

“We may do some littlestuff hereand there,” he said,“but in terms of large-scaleleasing, we’redone.”

The department’s findings,demonstrated in a series of overlain maps on DCNR’swebsite, show the forests innorth-central Pennsylvaniaabove the gas-rich MarcellusShale crowded by leasedland, parcels where the statedoes not own the mineralrights and places wheredevelopmentmust be restrict-ed.

Of the 1.5millionacresof 

state forest underlain by theshale, 700,000 acres have

already been leased or themineral rights under themare controlled by an ownerother than thestate.

An additional702,500 acresare in ecologically sensitiveareas — places with protect-ed species, forested buffers,old growth or steep slopes.Another 27,500 acres are des-

ignated as primitive andremote lands, 49,600 acreswere identified througha for-est conservation analysis aspriority conservation lands,and the last 20,400 acres areso entwined with the othersensitive areas that they can-not be developed withoutdamaging them.

The department began tostudy the limits of the stateforest land that cansafely be

leased to gas drillers as itdeveloped a series of Marcel-

lus gas leases in 2008 andJanuary andMay 2010.

Gas drilling has takenplace on state forestland formore than six decades, andmineral extraction is one of the forest’s designated uses,along with sustainable tim-ber harvesting, recreationand conservation. But Quig-

ley said “there are limits tohow much you can developthe resource and maintainbalance. And I think we’rethere.”

There are currently about10 producingMarcellus Shalegas wells in the state forest.The department expectsthere will be about6,000wellson 1,000 separate drillingpads when the resource isfully developed in 15 or 20

years.The secretary said the

prime consideration for anyfuture leasing, “if we do anyatall,” willbe thatdrilling orassociated activities not dis-

turb the forest’s surface — apossibility with horizontaldrilling technology thatenables drillersto access themile-deep shale from adja-cent properties.

The impact of the DCNR’sfindings is unclear.

Gov. Ed Rendell said earli-erthis year that noadditionalforest land will be offered forlease during his tenure,which ends in January, butthe department’s findingshaveno legalbearing on thenext administration’s abilityto change its forestpolicy.

A bipartisan groupof law-makers in the House passeda three-year moratorium onnew leasing of state forestland for gas drilling in May,butthe measure hasnot beentaken up by the Republican-led Senate.

Patrick Henderson, aspokesman for Senator MaryJo White, R-Franklin, thechair of the Senate Environ-

mental Resources and Ener-gy Committee, said he doesnot sense “atall” an upswellof support among the mem-bers of theSenate to pass it.

Henderson saidthe depart-ment’s findings “carry someweight,”but hesaidthe claimthat there is no forest landleft for surface gas develop-ment is subjective.

“I think different peoplecan conclude if there may besometractsof landout of 1.5million that lie within thefairway to lease,” he said.

A $120 million lease dealDCNRreached with Anadar-ko Petroleum Corp. in Maythat is expected to havemini-mal impact on the state for-est’s surface could not havebeen possible if the House’smoratorium bill had beenlaw, he said.

“There’s something to besaidfor having a fresh set of eyes under the new adminis-tration take a look at it anddraw their own conclu-

sions.”Quigley was optimistic

that if futuredecisions aboutforest leasing are left toDCNR,his department’s find-ingswill stand.

“The science tells us thatwe’ve reached the limit,” hesaid.

He added, “The questionbecomes whether we willface another occasion wheneconomics loomslarger.”

[email protected]

UGI Corp. plans to investmore than $300 million overthe nexttwo years to developnatural gas infrastructure intheMarcellusShaleregion,ap ro j ect t h a t in cl u d es a“major pipeline project,” theutility company announcedThursday.

UGI officials outlined themove in a one-and-a-half-pagenews release sent out afternormal business hours with-out providing detailsof exact-ly where the company mightlocate such a pipeline. Theprojectwould bringMarcellusShale producers in the state“improved accessto high-val-ue markets,” accordingto therelease.

TheFederal EnergyRegula-t o ry C o m mis s ion m u s tapprove the project, whichUGI said would be availableforservicelatein 2012.

UGI also announced plansto improve delivery optionsfrom storage fields in north-centralPennsylvaniaby build-ingmore storagewells,amongotherprojects.

UGI officials could not bereached for furthercommentThursday evening.

The Marcellus Shale rockformation extends from NewYork, through Pennsylvaniaandinto WestVirginia andisbelieved to hold hundreds of trillionsof cubic feet in natu-ral gas. The vast reserve hasprovidedan economicboon forgas companies and residentswilling to lease their land fordrilling,but hasbroughtsafetyconcerns as well as fears of environmentalissues associat-ed with breaking apart theshaleto accessthegas.

— Andrew Staub

Mundy proposes keeping gas wells away from floodplains

BOB DONALDSON / PITTSBURGH POST-GAZETTE

Separator tanks are seen in Maurice K. GoddardState Park in Sandy Lake as contractors land-

 scape around the Cochran No. 1 gas well head.

Search for natural gasleases, permits and morein our online databasesat citizensvoice.com/

drilling.

citizensvoice

UGI to spend$300M ondrilling project

Eileen Miner Travel, Inc.

Call Eileen Direct at (570) 466-1743

Includes TwoNights at the

ChateauFrontenac

Canada• Montreal • Quebec City

• Saratoga • Thousand IslandsOct. 20 - 25 —  $895 pp

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 C I    T  I    Z  E  N  S ’    V   O I     C E  

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