Shale Gas
Roundup
A publication of the Natural Gas Resource Center
Potter County, Pa.
March/April 2013
Public Meeting On Wastewater Treatment Options
Potter County Natural Gas Resource Center has announced
plans for its next public meeting, with a focus on a hot topic
in the shale gas industry. “Wastewater Treatment Options:
Today and Tomorrow” is the theme of the program to be
presented at 7 pm Tuesday, March 19, at the Gunzburger
Building auditorium in Coudersport.
Organizers have lined up two knowledgeable speakers from
state and federal regulatory agencies to share their insights
and answer questions. The topics are timely due to plans for
a wastewater treatment plant near Ulysses and injection
wells for water disposal in other parts of Pennsylvania.
Speakers will also address related gas drilling topics. Those attending the public meeting
should use the Water Street entrance. The program will also be shown through
videoconferencing at the 9-1-1 Center in Ridgway. Featured speakers will be:

Scott Perry (shown), deputy secretary of
the Pa. Dept. of Environmental Protection
and head of DEP’s oil and gas operations
division. Perry oversees policy
development and regulatory aspects of oil
and gas activities in Pennsylvania.

Karen Johnson, a long-time
administrator with the U.S. Environmental
Protection Agency and chief of the
groundwater and enforcement branch of
the EPA’s Region 3. Johnson will discuss
underground injection for disposal of gas
wastewater.
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Maps, Response Plans On Triple Divide Coalition Agenda
New maps that chart each sourcewater protection
zone in Potter County were reviewed by members
of the Triple Divide Watershed Coalition during the
organization’s February meeting. Chairman John
McLaughlin (shown) displayed samples and
reported that copies of the large, detailed maps will
be distributed to townships, boroughs, emergency
responders, public agencies and others. The
documents depict all of the drainage areas which
flow into the delineated recharge areas, along with
municipal boundaries, geographic features,
emergency response contacts and other
information. Goal of the project is to increase awareness of water sources and equip
emergency responders and others with immediate access to critical information on their
locations.
John Erich, DEP emergency response team coordinator, emphasized the importance of
having reliable, accessible information about the location of critical water sources. Erich
said the most common problems his team has seen are erosion and sedimentation
during construction of well pads and access roads. Second highest number of
emergency responses have involved truck crashes or other spills related to the
transportation of hydrofracturing fluid or wastewater.
In a follow-up to discussions at the previous coalition meeting about abandoned and
orphaned gas and oil wells, Shawn Metcalf from the Shinglehouse Borough Water
Department presented a local case study. He and Mark Stephens, a DEP geologist,
investigated an abandoned well discovered in the Shinglehouse system’s recharge area.
DEP was unable to establish any legal liability by private owners, so the agency agreed
to pay for plugging of the polluting well. Stephens pointed out that the project received a
high priority due to its location within a recharge area, which is a policy the Triple Divide
group has been advocating. He added that the incident reinforces the importance of
water system operators conducting routine inspections of their recharge areas. Next
coalition meeting is scheduled for Wednesday, May 8, in Austin and will include a tour of
the borough’s water filtration plant. (Photo courtesy of Potter Leader-Enterprise)
Minimizing Gas Drilling’s Impacts On Habitat
An organization that is studying the effects of shale
gas development on habitat and wildlife has issued
some initial findings while continuing work on a series
of “best management practices” (BMPs) to minimize
impacts. The Nature Conservancy, in a peerreviewed journal article published in December,
emphasizes, “For BMPs to be credible and effective,
they need to be strongly supported by science.” With
that premise, the organization is compiling
recommendations for public policy makers that will
include avoidance of sensitive areas, aquatic habitats, and core forest areas; regulations
on road design, location, and maintenance; increased communication and data sharing;
appropriate vegetation cover options for pipeline routes and other cleared areas, and
drainage and erosion control measures.
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Natural Gas Resource Center Hits Its Stride
A Natural Gas Resource Center headquartered in
Potter County is beginning to fulfill its mission as a
one-stop shop for all kinds of information about the
region’s gas industry and related topics. Bob Veilleux
(left), who oversees the center, discussed its progress
during a recent meeting of the Coudersport Rotary
Club. He’s shown with Judge Stephen Minor, who
introduced him. Veilleux said about 560 businesses
and agencies have signed on to be listed on the
center’s website, naturalgasresourcecenter.com. Later,
in a presentation to the Potter County Commissioners, he further summarized the
center’s first year of growth, under the guidance of a 12-member advisory board. Public
education is a high priority, as is the development of business liaisons. The website
includes timely articles and postings from other agencies; links to local, regional, state
and national resources; and maps of well sites and production data throughout
Pennsylvania. The center hosts quarterly public meetings about gas drilling issues and
concerns. Later this year, the Resource Center will hold a public meeting on compressed
natural gas and other alternative uses of gas. Commissioners Doug Morley, Paul Heimel
and Susan Kefover commended Veilleux for his leadership in developing the Resource
Center, which is being looked at as a model by other counties.
Business Opportunities Coming; Help Available
As shale gas production increases in rural stretches of
Pennsylvania, new business opportunities will develop for
those providing goods and services. Operating or
expanding a business in a rural area is a challenging and
risky proposition. Local agencies are combining their
efforts to sponsor the Potter County Business and
Entrepreneurship Resource Fair from 3-6 pm on
Wednesday, March 20, at the Gunzburger Building in
Coudersport. Upwards of 20 local, regional, and state
agencies will be participating, offering advice and services.
Admission is free.
Several workshops will be featured, starting at 3 pm with a
session on Business Plan Basics, presented by the Small Business Development Center
of Clarion University; and a separate workshop titled LEAN Manufacturing Overview,
sponsored by the Northwest Industrial Resource Center. A Business Finance Workshop
is planned for 3:30, presented by Northcentral Enterprise Development. Export
Marketing will be featured in a workshop at 4, followed by Government Contracting at
4:30. U.S. Small Business Administration will sponsor a Small Business Financing
Workshop at 5. Rounding out the workshop schedule is a session on Linking Your
Business with Local and Regional Tourism at 5:30, presented by the Pennsylvania Wilds
and Pennsylvania Route 6 Tourism organizations. For more information, call (814) 5451333.
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Drilling Down Into Methane/Water Pollution Issue
A webinar on the complex topic of methane
migration into groundwater is being presented
by Penn State Extension at 1 pm on Thursday,
March 21. Those who cannot participate in the
hourlong public session can view an archived
version of the program later on the Extension
website (see below). It’s titled "A Geochemical
Context for Stray Gas Investigations in the
Northern Appalachian Basin," and is part of a
monthly series of one-hour webinars. Speaker
Fred Baldassare, senior geoscientist with Echelon Applied Geoscience, stresses the
need to review each case of methane migration individually to determine its origin. He
emphasizes that he is not diminishing the risk of drinking water contamination from gas
drilling:
“Key geochemical parameters reveal the stray gas that occurs in the aquifer and
manifests in private water supplies can be the result of gas-well-drilling activity. That
happens where pressure combined with ineffective casing cement bonds create
pathways.”
However, Baldassare says there can be other sources:
"The occurrence of methane in aquifer systems represents a natural condition in many
areas of the Appalachian Basin. The origin can be the result of microbial and
thermogenic processes that convert organic matter in the aquifer strata to methane, and
lower concentrations of ethane and heavier hydrocarbons in some areas of the basin. Or
it can result from the progressive migration of hydrocarbon gas over geologic time from
the source and/or reservoir to the aquifer.”
Incidents of stray gas migration must be investigated at the site-specific level and must
include isotope geochemistry to determine gas origin and diagnostic evidence to
determine a mechanism of migration, Baldassare points out.
Other webinars scheduled by the Penn State Extension's Marcellus Education Team
are:
 April 24 (2:30 pm): Utica Shale Reservoirs -- Mike Arthur, professor of
geosciences and co-chair of the Penn State Marcellus Center for Outreach and
Research.
 May 16 (1 pm): Shale Energy Development's Effect on the Posting, Bonding
and Maintenance of Roads in Rural Pennsylvania -- Mark Gaines, PennDOT,
and Tim Ziegler, Center for Dirt and Gravel Road Studies.
 June 20 (1 pm): Royalty Calculations for Natural Gas from Shale -- Jim
Ladlee, Penn State Marcellus Center for Outreach and Research.
Previous webinars, publications and information also are available on the website,
extension.psu.edu/naturalgas, covering topics such as Act 13; seismic testing; air
pollution from gas development; water use and quality; zoning; gas-leasing
considerations for landowners; gas pipelines and right-of-way issues; legal issues
surrounding gas development; and the impact of gas development on forestland.
Those planning to participate in a webinar are advised to sign on early, as the process
can take several minutes. Website is meeting.psu.edu/pscems. For more information,
contact Carol Loveland at 570-320-4429 or cal24@psu.edu .
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Major Pipeline Projects Involve Potter County
U.S. Federal Energy Regulatory Commission
has authorized Dominion Transmission to
build a pair of pipeline projects to transport
natural gas produced in Pennsylvania. The
$67.2 million “Tioga Area Expansion” will
move 270,000 dekatherms per day (Dt/d) – a
dekatherm is 1 million British thermal units -of gas from Potter and Tioga counties to an
existing interconnection with Transcontinental
Gas Pipe Line and a new interconnection with
Texas Eastern Transmission in Greene County. It will include 15 miles of 24-inchdiameter pipe and other facilities in Pennsylvania and New York.
Shell Energy North America has signed up for 250,000 Dt/d of firm capacity on the Tioga
project and Penn Virginia Oil & Gas has signed up for the remaining 20,000. The $16.7
million project from Sabinsville near the Potter/Tioga County border to Morrisville, N.Y.,
includes 3.56 miles of new 24-inch-diameter pipeline. It will allow Tennessee Gas
Pipeline to move 92,000 Dt/d of its receipt rights from North Sheldon, N.Y., to an
interconnection between Dominion and Tennessee near Sabinsville. The gas will
continue to be delivered to a point near Morrisville.
In another recent development, UGI Corp. has struck a deal with Tenaska to build and
operate approximately 20 miles of new gathering pipelines and related gas processing
and compression facilities for wells that Tenaska will drill in Potter County. Initial
construction is targeted for the fourth quarter of this year. Total investment in gathering
for full development of Tenaska’s Potter County acreage is about $65 million over 10
years. Projects are close to UGI’s midstream and distribution assets, including 14.7
billion cubic feet of gas storage. UGI President John L. Walsh
said, “We look forward to our expanded relationship with Tenaska
in the development of natural gas resources within the Marcellus
Shale, and our midstream team remains active and focused on
identifying and executing additional midstream investment
opportunities.”
New Air Quality Standards Proposed By DEP
Revisions have been drafted to
Pennsylvania’s permit requirements for
natural gas-fired engines and equipment at
compressor stations, which help move gas
from well sites into transmission pipelines.
The new regulations would more strictly limit
emissions, according to the DEP. “These
steps mean far lower emissions at well sites
and more efficient compressor stations,
resulting in cleaner air as development,
production and transmission take place,” DEP said. The department is accepting
comments on the proposed changes. More information is available on the website,
dep.state.pa.us (click on Air, the Bureau of Air Quality), or by phone at 717-787-4325.
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Water Quality Group Hears Of Allegheny Study, BioBlitz
Members of the Potter County Water Quality Work Group met
to continue coordinating efforts geared toward protection of
the county’s water resources. They heard that Upper
Allegheny Watershed Assn. has qualified for a grant to
develop a conservation plan through the Coldwater Heritage
Program. About 80 miles of Mill Creek and the headwaters of
the Allegheny River will be included. Partners include Trout
Unlimited, Pa. Dept. of Conservation and Natural Resources
and Pa. Fish and Boat Commission. In other business, Arthur
Metzger reported on plans for a “BioBlitz” at Sinnemahoning
State Park May 20-21. Local high students will be involved,
under the guidance of professors/scientists from several universities.
Mary Anne Heston provided a summary of issues involved in application of brine for dust
suppression on municipal roads. Heston specified that wastewater from conventional
gas wells may be used, but water from unconventional wells (shale gas deep wells) may
not be applied. Townships are required to report activities to DEP.
Next Water Quality Work Group meeting is tentatively scheduled for April 9.
Organizations represented at the February meeting were Potter Co. Conservation
District, Potter Co. Commissioners, Upper Allegheny Watershed Assn., Potter Co. Water
Dogs, PSU Extension, Planning Commission and Triple Divide Watershed Coalition.
Rig Counts Fall As Drillers ‘Get It Right’
The gas rig count in the US has dropped to 407 as of March 8, down from 1,600 in 2008.
One reason is greater drilling efficiency. It takes less time to drill a well now, thanks to
improvements in horizontal drilling techniques, and each well is producing more gas, due
to improvements in hydraulic fracturing. One company's average drilling time per well
plunged from 17 days in 2007 to only 8 days in 2011. Over the same period, the length
of its wells grew by 82 percent, and initial production more than doubled to an average of
3.3 million cubic feet per day. Analysts estimate that drilling and completion times will
continue falling as companies become more familiar with new technology and new
geology.
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News And Notes Of Interest
Injection well approved; more coming. Wastewater from oil and
gas operations is headed to Warren County to be stored through
underground injection. With all of the necessary permits in place, Bear
Lake Properties has begun operations at the wastewater disposal well
site in Columbus Township. Waste Treatment Corp. of Warren began
hauling water from shale gas production sites to the disposal well near
the New York State border in early March. A company spokesman said
the site will accept waste from six to eight tankers trucked to the site daily. U.S.
Environmental Protection Agency issued a permit for two disposal sites on the Bear
Lake parcel, despite local protests. Each injection well is about 4,500 feet deep. Similar
permits are pending from the EPA for injection wells in Elk and Clearfield counties.
Documentary Draws Capacity Crowd. More than 200
people filled the Coudersport Theater for the premier of a
documentary that raises questions about the rush to
produce shale gas. Producers Joshua Pribanic and Melissa
Troutman from an investigative reporting service, Public
Herald, said their film, titled “Triple Divide,” is designed to
raise public awareness and expose shortcomings of
environmental protection laws and their enforcement. Triple
Divide was the result of an 18-month probe. Interviews with
property owners and other sources were interspersed with
the producers’ own experiences in tracking down stories.
Two Bradford County residents featured in the film
attended the premier and cautioned property owners to
carefully review leases and insist on certain protections. Among familiar faces in the film
was Judy Bear (shown), a certified water well consultant who operated Coudersport Well
Drilling for many years and served on the Potter County Natural Gas Task Force.
Pribanic and Troutman are promoting Triple Divide as exposing “the failure of state
regulations to protect the public and the environment, and the failure of natural gas
companies to prevent real and immediate dangers, whether or not they’re in compliance
with regulations.” (Photo courtesy of Endeavor News)
Shale Gas: Critical Mass By ’40. Industry analysts have
called shale gas development a historic game-changer in the
U.S. energy portfolio. It will hit a “critical mass” of providing 50%
of the nation’s gas supply by 2040, they say. A chart on the
cover page of this edition of Shale Gas Roundup was developed
by the U. S. Energy Information Administration. It forecasts
shale gas, which was at 23% of total output in 2010, to be at
49% by 2035. A separate study by Rice University follows a
similar track, predicting that the 50% milestone will arrive by
2040. Researchers used independent scientific and economic literature on costs and
resources, including assessments by organizations such as the U.S. Geological Survey,
the Potential Gas Committee and scholarly peer-reviewed papers of the American
Association of Petroleum Geologists.
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EPA Studying Air/Water Issues. The U.S.
Environmental Protection Agency (EPA) needs to do a
better job of tracking air emissions from natural gas
production, according to an internal review from EPA
Inspector General Arthur Elkins. He cites gaps that exist in
the data the agency use to estimate pollutants which can
impact human health and the environment. The report
points out that variations can occur due to different
geological formations, changes in production over time, as
well as seasonal and temperature differences. More direct
measurements are needed, Elkins said, and EPA should
work collaboratively with state agencies to identify and address gaps. At the same time,
an ongoing EPA study on gas drilling’s potential for groundwater contamination won’t be
completed until late 2014. Congress ordered the agency to study the potential effects of
hydraulic fracturing. Sophisticated computer models are being used to analyze the
possibility of contamination when water is drawn from reservoirs or underground sources
and used for fracking; when chemicals are added and injected into the ground to break
up rock; when wastewater is disposed of, and when contaminated water is stored.
Gas Job Training Available. Not everyone is cut
out for a job in the gas industry. But opportunity
abounds for those who have the skills and flexibility
companies are looking for. They’re seeking drivers,
roughnecks, derrick hands, soil scientists, equipment
operators, sales representatives, cement mixers, land agents and more. A job-seeker
who is trained and is willing to travel stands an excellent chance of being hired. Seneca
Highlands Career & Technical Center in Port Allegany, in partnership with the Potter
County Education Council (PCEC), is a federal ShaleNET training partner. That allows
PCEC to offer free training for those who are interested in landing a job as a floor hand.
Topics include employability skills; basics of natural gas; rig components and electrical
systems; hydraulics, pressures and forces; well control; spill prevention; safety; driving;
aerial work platform basics and rough-terrain forklift. There is no tuition, but participants
are responsible for pre-admission clearances, physical examinations, and drug testing.
No date has been set for the next round of training. Anyone interested in learning more
should call (814) 545-1333.
This publication is produced by the Natural Gas Resource Center in
Coudersport, Pennsylvania. Previous editions are available in the
website, pottercountypa.net. Anyone with story ideas or comments
should contact Paul Heimel (pheimel@pottercountypa.net).
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