Gas at a Glance

Wayne schools consider Hess Corporation lease offer

Wayne Highlands school directors are evaluating a natural gas lease agreement submitted by Hess Corp. for the Damascus Area and Preston Area school properties serving elementary and middle school students in northern Wayne County, according to the Times Tribune. Hess is expected to make a presentation at an upcoming board meeting. District superintendent Thomas Jenkins said district officials are open to the idea for its possible revenue benefits, but that they need to review whether drilling is appropriate for school properties and investigate any environmental and safety issues.

Legislation, taxation and regulation explored at March 5 session

The Susquehanna County League of Women Voters is presenting an educational seminar on the Marcellus Shale at Elk Lake School in Dimock, PA. The March 5 session will focus on legislation, taxation and regulation. Representative Sandra Major will address HB977 and the pending gas severance tax. Representative Tina Pickett will speak on HB1205 and the severance tax. Lester Greevy, Esq., Oil and Gas law expert, as well as a PA Department of Environmental Protection (DEP) spokesperson and gas industry spokesperson, will be present. Reports on HB 2213 (Land and Water Protection Act), HB 2214 (Lessor’s Royalty Protection Act), HB 1489 (The Natural Resource Severance Tax Act), SB297 and HB 1205 will be given. Senator Gene Yaw and Senator Lisa Baker have been invited to participate. The session will run from 7:00 to 9:00 p.m. Contact LWVSC@frontier.com for more information.

PA state agencies cite Marcellus concerns

The PA Game Commission (PGC) and the PA Fish and Boat Commission (PFBC) recently raised red flags related to budgetary impacts on their ability to address Marcellus Shale concerns, as reported in the PA Environment Digest. Last week, the PGC presented its annual report to the House Game and Fisheries Committee highlighting the need for additional financial resources to accomplish its mission, and also reported environmental problems with the first two Marcellus Shale natural gas wells drilled on state game lands.

According to executive director Carl Roe, the PGC last saw an increase to its budget 11 years ago. “In addition to no increase in revenues, we were also hampered to perform our mission by the hiring freeze and other actions,” said Roe.

Roe also reported that the first two Marcellus Shale natural gas wells drilled on state game lands in Centre and Clearfield counties resulted in incidents of “environmental degradation.” He said, in one case, fracking the well caused the contamination of a water supply for a fish hatchery. In the other, a collection pipe was laid across a stream that resulted in a leak to the stream. He stressed the inability to hire additional staff inhibits the ability of the commission to prevent problems in the field.

Brian Barner, acting executive director of the PA PFBC, also presented that agency’s annual report to the House Game and Fisheries Committee. Barner highlighted Marcellus Shale natural gas drilling as a major challenge for the agency in protecting aquatic resources. He noted dual threats of water pollution from drilling, as well as the potential introduction of invasive species of plants and animals into more areas of Pennsylvania. “With the rapid increase in well drilling activity and without additional funding, the commission is severely limited in its ability to work with DEP and the natural gas developers,” said Barner. “As a result, we will miss opportunities to proactively work to minimize and avoid impacts to aquatic resources. The commission supports the enactment of a severance tax on natural gas production that allocates funding for natural resource conservation. We think dedicating a portion of a severance tax to enhance conservation will be a wise investment for the Commonwealth as we meet energy demands while conserving aquatic resources.”

‘Landman Report Card’ on oil and natural gas agents

Massachusetts Institute of Technology’s Center for Future Civic Media hosts a service for information about individual landmen, who negotiate leases on the best terms for their employer at the lowest price. The “Landman Report Card” ( www.landmanreportcard.com ) is a resource supporting citizens approached by landmen. The site encourages citizens to fill out a “report card” on their experience and offers a short citizen’s guide, “Help! There’s a Landman at My Door!” as well as an edited version of the code of ethics for the American Association of Professional Landmen.

Japanese firm to invest $1.4 billion in Marcellus operation

Mitsui & Co., Ltd announced this week it was investing $1.4 billion in the development and production of Marcellus Shale natural gas projects in Pennsylvania through Anadarko Petroleum Corporation, the Houston, TX global energy firm that has interests in seven PA counties and is the largest leaseholder in PA state forests. The Wall Street Journal reported the Tokyo company is expected to spend between $3 billion and $4 billion over the next decade to develop its portion of the Marcellus Shale. Anadarko has leased 715,000 acres with Marcellus Shale reserves concentrated in Centre, Clinton, Lycoming, Sullivan, Bradford, Tioga, and Potter counties. Anadarko chief executive Jim Hackett said the company anticipates drilling more than 4,500 wells.