Marcellus Shale

POSTED: Wednesday, April 7, 2010, 6:47 PM
Filed Under: BRT | FrackTrack | Marcellus Shale | News
Pittsburgh Post-Gazette

I'm a bit late on this one, but the Post-Gazette reported last week that a wastewater pond used in Marcellus Shale natural gas drilling caught fire. Two nearby residents of the site, which is operated by Atlas Energy Copr. (one of whom is already suing Atlas for "ruining his land with toxic chemicals") say that they had smelled a gas odor for days . . . and had reported it to the Department of Environmental protection without hearing back:

Mr. Lengauer said he contacted a hotline for the state Department of Environmental Resources on Sunday, but was unable to reach agency officials because their voicemail boxes were full.

"I tried to call them for three days straight," said Mr. Lengauer.

I've called DEP for updates or further response, since the P-G seems to have dropped the story for now.

One thing that's interesting about this story is that it was the wastewater pond that caught fire. I've had several officials indicate that these ponds (like the one pictured above) are mostly storing freshwater — yet I reported on a toxic mud spill resulting from a similar pond last week, and, before that, on an incident of pollution in Clearwater county that resulted from the lining of another waste pit being ruptured.

Posted by Isaiah Thompson @ 6:47 PM  Permalink | Post a comment
POSTED: Tuesday, March 30, 2010, 9:27 PM
Filed Under: Environment | Marcellus Shale | News
Constance Merriman, Citizens for Pennsylvania's Future (PennFuture)

Just a week ago, the Pennsylvania House of Representatives passed a budget which relies on more than a $100 million in revenue from new leasing of state forest for drilling in the Marcellus Shale (a third of the state forest has already been leased for drilling).

That decision, as I reported in February, ran contrary to the advice of former Department of Conservation and Natural Resources secretary Michael DiBerardinis, who warned shortly before resigning that further leasing would "scar the economic, scenic, ecological, and recreational values of the forest," as well as overburden the Department's limited staff.

Among the dangers associated with Marcellus Shale drilling is the potential for spills — a danger heightened by the rapid pace at which the industry has developed.

Yesterday, the Scranton Times-Tribune reported that 8,000 to 12,000 gallons of contaminated mud were spilled at Sproul state forest in Clinton County, Pa. — a site operated by Anadarko E&P Co. Inc. that was part of the governor's most recent lease of forest land for drilling, in January.

While about half of the mud spilled over the boundary of the well pad, it didn't spread far enough to contaminate any surface waters, ground water or wetlands in the area, said Mr. Spandoni. A contractor began cleanup work Friday night. DEP officials have taken mud samples to determine a proper disposal method.

The mud is used as a cooling agent in drilling operations. Since the mud that spilled is synthetic-based, it doesn't contain any diesel fluids as some other agents do, said Mr. Spandoni.

Comforted yet?

This certainly isn't the first case of "errors" resulting from hydraulic fracturing operations: There were 56 "illegal discharges" in 2008 and 2009.

Nor is this the first spill affecting state forest land: City Paper has learned of two more incidents (confirmed with the Department of Environmental Protection) at a site adjacent to state forest in Clearfield County. In August 2009, a drilling pit utilized by EOG Resources Inc. leaked drilling fluids into a nearby spring; in October, there was a spill of "a water/chemical mixture used for cleaning wells" at an adjacent well, also operated by EOG.

These spills resulted in impacts to Alex Branch and Little Laurel Run streams, which are wild trout fisheries, and a freshwater spring used by local hunters.

Representative Greg Vitali, working with a coalition of environmentally-minded House representatives, has sponsored a bill calling for a moratorium on the leasing of more state land for drilling.

Despite what he says was a deal made between House "green dog" Democrats, who opposed such leasing, House leadership, and Governor Ed Rendell, the governor came out in favor of leasing additional land for this year's budget.

But, according to the Times-Tribune, he was singing a different tune yesterday:

Mr. Rendell expressed optimism Monday the state can meet next year's revenue target without leasing additional acreage of state forest land. He said more details will be forthcoming. Mr. Rendell also said for the first time he supports a moratorium bill.

If this is true, it's big news. Maybe Rendell has decided he doesn't want his legacy to have been pillaging the state forest to plug budget holes, after all.


Marcellus Shale well site catches fire :: The Clog :: Blog Archive :: Staff Blog :: Philadelphia City Paper
Posted 2010-04-07 13:59:51
[...] that these ponds (like the one pictured above) are mostly storing freshwater - yet I reported on a toxic mud spill resulting from a similar pond last week, and, before that, on an incident of pollution in [...] 

sally
Posted 2010-03-31 21:45:20
167 MILLION ACRES of federal land open to - OFFSHORE DRILLING!!?!!! The Obama Legacy: Healthcare Reform & OFFSHORE DRILLING!!!! HaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHa!!!!! http://www.nytimes.com/2010/04/01/science/earth/01energy.html?hp

sally
Posted 2010-03-31 21:53:26
I need to write it again because the reality is still setting in.... The Obama Legacy: Healthcare Reform & OFFSHORE DRILLING!!!! HaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHa!!!!!
Posted by Isaiah Thompson @ 9:27 PM  Permalink | Post a comment
POSTED: Wednesday, February 24, 2010, 1:00 PM
Filed Under: Booze | FrackTrack | Marcellus Shale | News

In my cover story last week ("Drill Baby Drill"), I described, among other things, the potential for wastewater spills from hydraulic fracturing, the process used to drill for gas in the Marcellus Shale.

In the latest news of contamination linked to drilling for natural gas in the Marcellus Shale, a Pennsylvania driller has admitted to dumping some 200,000 gallons of drilling wastewater into an abandoned well just outside of Allegheny National Forest.

The story was reported today by Pro Publica, a non-profit dedicated to investigative journalism in the public interest:

As part of a plea agreement with the U.S. attorney for western Pennsylvania, part-owner Michael Evans, 66, of La Quinta, Calif., and John Morgan, 54, of Sheffield, Penn., admitted dumping 200,000 gallons of brine – salty wastewater that’s created in the drilling process – down an abandoned oil well. The maximum penalty for both Evans and Morgan is three years in prison, a fine of $250,000, or both. Sentencing will be June 24. Attorneys for both men declined to comment.

Swamp Angel Energy was drilling in the Allegheny National Forest, in McKean County in northwestern Pennsylvania, and the brine was dumped just outside the border of the federal land.

The company, Pro Publica reports, has 77 active, permitted wells in Pennsylvania, all in McKean county.

Read more CP coverage of drilling in the Marcellus Shale.


JonP
Posted 2010-02-24 10:21:09
"The story was reported today by Pro Publica, a non-profit dedicated to investigative journalism in the public interest."

... and eight days ago by the dreaded MSM.

http://www.post-gazette.com/pg/10047/1036263-100.stm

sally
Posted 2010-02-24 15:45:13
Oh the horror!  BRINE! 200,000 gallons!  Down an abandoned well!  Do you know that brine is saltwater?  Do you know that wells go down thousands of feet, far below wells for drinking water?  This is a bunch of ignorant alarmism with a hidden agenda - surprise, surprise.

Isaiah Thompson
Posted 2010-02-24 18:16:06
JonP: thanks for pointing that out. 

Sally: You're right: "brine" is mere saltwater – but such discharges are carefully monitored because of the damage mere saltwater can do to streams and tributaries. 

Moreover, fracking wastewater has been found to contain not just salt but toxic chemicals and metals, including, in some cases, radioactive materials which can naturally occur underground. 

Ignorant Alarmist with a Hidden Agenda that I may be, I'd also point out - as I did in my recent article - that 2009 alone saw more than fifty illegal discharges of hydraulic fracturing wastewater from Marcellus Shale drilling operations. 

I'd point out as well that it is *illegal* for drilling companies to dump any wastewater without getting it treated and without being permitted to do so - whether it's into a well or into a stream. In this case, Swamp Angel Energy employees (one a part-owner) pleaded guilty to felony counts of violating the Safe Water Drinking Act and may face prison time. 

Thanks for the comments! 

- Isaiah
Posted by Isaiah Thompson @ 1:00 PM  Permalink | Post a comment
POSTED: Friday, February 12, 2010, 2:30 PM
Filed Under: Beer | FrackTrack | Marcellus Shale | News
nag240, flickr
Former Secretary Michael DiBerardinis cautioned Rendell against leasing forest.

A few days ago, we reported (and the Inquirer re-reports today) [correction: the Inquirer first reported in October, 2009] that Governor Rendell is considering authorizing yet another lease of state forest land for drilling into the Marcellus Shale, a geologic structure containing billions (if not trillions) of dollars worth of natural gas.

If he does, it will be the third such sale in three years –before 2008, state land hadn't been leased for drilling since 2002.

There are a few reasons to ask whether this is a good move. For one thing, fully one-third of our state forest has already been leased for drilling. For another, while only four Marcellus wells are currently active on forest land right now, at least 40 wells are expected to be in production by the end of the year and DCNR officials say that we could see over a thousand in the next decade – all that on land already leased.

We have, in other words, barely begun to see what impact drilling will have on the state forests already leased – leasing even more of it now could be risky indeed.

But don't take my word for it: Rendell's own state forest officials have made their concerns very clear – albeit mostly in private.

Memos and emails obtained by City Paper show that both former DCNR Secretary Michael Diberardinis and Acting Secretary John Quigley have repeatedly cautioned Rendell against leasing additional state forest for Marcellus Shale drilling.

So, in a CP exclusive, we bring you excerpts from said documents in . . . The Marcellus Memos

Background: in 2008, Governor Rendell authorized the first leasing of state forest for gas drilling since 2002. He did so at the suggestion of then-Secretary Michael DiBerardinis, who suggested leasing the land as a way of preventing the state legislature, hungry for revenue, from usurping the authority to do so from DCNR.

Perhaps to Diberardinis' surprise (he has declined comment), Rendell shortly thereafter asked DCNR to perform yet another leasing of state forest for drilling. On March 11, 2009, Rendell's office announced Sec. DiBerardinis' resignation. The following memo (abridged) was written just a week before Mr. DiBerardinis' last day of work.

Memo – March 27, 2009, Sec. DiBerardinis to Gov. Rendell

"Wholesale leasing will damage our State Forest landscape. It would scar the economic, scenic, ecological, and recreational values of the forest – especially the most wild and remote areas of our state in the Pennsylvania Wilds. Your years of work and investments in rural economic revitalization through outdoor experiences in the Pennsylvania Wilds could be erased."

" . . . A rush to drill threatens the certification of our State Forests as sustainably managed. . . Our ability to sustainably manage our State Forests is threatened by unplanned, excessive leasing activity."

". . . Finally, and perhaps most important of all is the environmental legacy you want to leave. I'm deeply concerned that your tireless work [for the environment] will be in jeopardy with large scale leasing."

"One hundred years ago, the land that would become the state's forests was a denuded landscape that was scarred by rampant resource extraction. Our State Forest system – the largest swath of publicly owned land east of the Mississippi River – grew from a visionary effort to reclaim this landscape and restore to Pennsylvania's citizens their natural birthright . . . A rush to drill places the state forest and all its benefits at great risk. . . "

*

Background: In this email, Acting Sec. Quigley says that DCNR is comfortable leasing only 40,000 more acres for Marcellus Shale drilling. As you'll see int he next email, within 2 days, Rendell's staff would ask DCNR to double that acreage.

Email – May 4, 2009, Acting Sec. John Quigley to Gov. Rendell

"It is important to emphasize that we cannot lease 620,000 more acres. We are approaching questionable territory with future lease sales. We are comfortable with a maximum of 40K acres for an additional lease sale . . ."

*

Background: Pennsylvania is one of just a handful of forests in the United States certified by the Forest Stewardship Council as a sustainable forest. Here, Acting Secretary John Quigley warns Rendell that that certification could be in danger if more state forest is leased.

Memo – May 6, 2009, Acting Sec. John Quigley to Scott Roy, Mary Soderberg (Gov. Rendell's office)

"You have asked DCNR to be prepared to offer at least a total of 80,000 acres of state forest lands for Marcellus gas development in 2009. . ."

"I want to be very explicit about the situation that this will place us in. These would likely be the last gas lease sales on State Forest land that we could manage within the context of our sustainable certification for the foreseeable future."


Enviro Guy
Posted 2010-02-13 13:33:01
Great to see you getting on board the Marcellus coverage, Isaiah. Just to clear the record, the Inquirer reported on Oct. 2 about the existence of the $180 million budget deal, and AP and the Inquirer ran items on the deal in early January. Also, here's a press release Penn Environment issued on Oct. 14:

Budget Dramatically Shifts Resources From Environmental Protection, Natural Resource Conservation

LENGTH: 969 words

DATELINE: HARRISBURG, Pa., Oct. 14 

Pennsylvania Is Selling Off Natural Resources to Balance the Budget
HARRISBURG, Pa., Oct. 14 /PRNewswire-USNewswire/ -- Cuts and diversions in the budget just adopted by the state have dramatically reduced spending for environmental and natural resource programs in Pennsylvania by $347 million in just one year according to Donald S. Welsh, President & CEO of the Pennsylvania Environmental Council.
"The unprecedented 26 percent cut in the Department of Environmental Protection and 18 percent cut in Department of Conservation and Natural Resources budgets raise significant doubts about the capacity of both agencies to fulfill their missions," said Welsh. "Environmental programs for some reason seem to have been singled out for cuts that go way beyond the average 9 percent suffered by other agencies." 
The General Fund budget of DEP was cut $58 million, or 26.7 percent, with most of the cuts coming in line items used to fund staff positions. Over 300 positions are at risk of being eliminated as a result of these cuts.
DCNR's General Fund budget was cut $21 million, or 18.5 percent, with again many of the cuts coming in personnel line items. There are about 160 positions at risk of being eliminated at DCNR.
"Of great concern is the diversion of $234 million from the Oil and Gas Fund to the General Fund that was earmarked for improving recreation and access to our State Parks and Forests," said Welsh. "Taking the proceeds from mineral rights sales away from conservation programs erases 55 years of precedent in Pennsylvania."
$174 million was transferred from the Oil and Gas Fund to balance to 2008-09 budget, and $60 million is to be transferred to balance the 2009-10 budget. Another $180 million is set to be used from the Fund to balance the 2010-11 budget, as well.
"Adding to these diversions is the requirement in the budget to lease thousands of acres of State Forest land for Marcellus Shale natural gas drilling to raise the money needed for the diversions," said Welsh. "It is a sad day for the Commonwealth when we are selling off our natural resources to balance the budget."
A bill accompanying the budget requires the Department of Conservation and Natural Resources to lease as many acres as necessary to yield $60 million in revenue to balance the budget. There is no cap on the acres to be leased or a minimum bid price. This provision of the budget would have been even more destructive had it not been for the leadership of a bi-partisan coalition of House members who vigorously fought to protect state lands from unmitigated extraction.
"These cuts are bad enough on their own, however, they are only the latest in a series of cuts or diversions over the last several years," said Welsh. "Funds for watershed restoration, abandoned mine reclamation, wastewater plant operations, storage tank cleanup, diversions from the Keystone Recreation, Parks and Conservation Fund and more have all gone to balance the budget."
Here is the list of cuts and diversions over the last seven years:
$376 million in Act 339 grants intended to support wastewater plant operations were eliminated to balance the budget;$174 million diverted from the DCNR Oil and Gas Fund to balance the 2008-09 budget;$79 million cut from the DEP and DCNR General Fund budget during 2009-10 fiscal year;$60 million diverted from the DCNR Oil and Gas Fund to balance the 2009-10 budget;$100 million in 2002 from the Underground Storage Tank cleanup insurance fund to balance the budget (although this is slowly being repaid over 10 years);$52.7 million "one-time" diversion from the Keystone Recreation, Parks and Conservation Fund in 2006 to balance the budget;$50 million in 2007 and 2008 from the Environmental Stewardship Fund, which supports mine reclamation and watershed restoration, to fund the Hazardous Sites Cleanup Program because there was no agreement on how to fund that program;$50 million in 2007 and 2008 from the Environmental Stewardship Fund to pay debt service on the Growing Greener II bond issue and taking funding away from restoration projects each year for the next 25 years - reflecting a pattern of only environmental programs being required to address their own bond debt service;$15 million from the Recycling Fund in to balance the 2008-09 budget;$18.4 million put into budgetary reserve in 2008-09 from the Department of Environmental Protection and Department of Conservation and Natural Resources; $5and million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credit program in FY 2009-10.
"Before last week's budget was adopted, we were already below the point of providing sufficient funding for environmental and conservation programs; programs that protect public health, rebuild our communities, and sustain our state's quality of life," said Welsh. "It's time to stop ignoring the need for additional, long-term revenue sources like a natural gas severance tax. Without rebuilding adequate investment, we cannot hope to meet our legal obligations to cleanup our air and water or take care of the natural resources in our public trust."
The Pennsylvania Environmental Council promotes the protection and restoration of the natural and built environments through innovation, collaboration, education and advocacy with the private sector, government, individuals and communities as partners to improve the quality of life for all Pennsylvanians.
The Council was founded in 1970 and serves the entire state through offices in Meadville, Franklin, Wilkes-Barre, Pittsburgh, Harrisburg and Philadelphia. For more information visit www.pecpa.org or call 717-230-8044.
    Contact:
    Donald S. Welsh
    President & CEO, PEC
    717-230-8044 ext. 16
SOURCE Pennsylvania Environmental Council

James P.
Posted 2010-02-13 18:13:47
I've lived far, far away form Pennsylvania and people have always told me what a beautiful state it is.
That kind of good will will be lost, to our shame.

uberVU - social comments
Posted 2010-02-13 18:36:29
Social comments and analytics for this post...

This post was mentioned on Twitter by citypaper: Privately, Rendell's State Forest tsars expressed deep concern over leasing state forest for drilling: http://bit.ly/b8tEGd...

Brady russell
Posted 2010-02-15 11:34:15
This is a great piece. You should put this in print, tho, so lots of people will see it. You've broken something really important here.

Isaiah Thompson
Posted 2010-02-15 13:39:17
To clarify the record: Thanks, Enviro Guy: the Inquirer did indeed report the $180 in October and January. I guess my "re-report" reference (fixed above) came off in a way I didn't mean it to. 

The "new" news, just to be clear, is two-fold: that Rendell is considering authorizing the lease without waiting for legislative approval to transfer funds from the Oil and Gas Lease Fund; and that "Green Dog" House Democrats dispute the idea (as reported in the October Inky) that there was any such $180 deal in place when they voted in the 2009-2010 budget. 

Thanks to all for input and clarifications always.

Breaking: Rendell supposedly to sign moratorium on leasing more state forest for gas drilling :: The Clog :: Blog Archive :: Staff Blog :: Philadelphia City Paper
Posted 2010-10-25 13:57:17
[...] and an about-face by the governor, who – as CP reported in an online series entitled "The Marcellus Memos" and feature story, "Drill Baby Drill," – pointedly ignored the advice of former Department of [...] 
Posted by Isaiah Thompson @ 2:30 PM  Permalink | Post a comment
POSTED: Wednesday, February 10, 2010, 8:13 PM
Filed Under: Marcellus Shale | News

Yesterday, as you might have heard, Governor Ed Rendell announced that he would, after all, support a tax on gas drilling in Pennsyvlania.

What you didn't hear was that he's also considering authorizing the third leasing of state forest for drilling in three years.

Yesterday, the Gov's press office confirmed to CP a rumor circulating Harrisburg that Governor Rendell is considering unilaterally directing the Department of Conservation and Natural Resources (DCNR) to lease more state forest land for drilling in the Marcellus Shale, a rock formation covering much of PA and which contains billions of dollars worth of natural gas.

By law, the leasing of state forest for oil and/or gas activities has been at the sole discretion of the Secretary of DCNR. And, for more than fifty years, state law has required that the proceeds of any such leasing go directly to conservation – specifically to the Oil and Gas Lease Fund.

This year, for the first time in Pennsylvania history, the legislature and governor – hungry for a slice of the booming activity surrounding gas drilling in the Marcellus Shale – raided that pot and overrode the DCNR Secretary's authority to decide when, where, and how much to lease. They included in the 2009 budget that required DCNR to raise $60 million from leasing to drillers.

It was the first time DCNR been required to lease land to meet a set financial goal; and the first time forest lease proceeds been redirected wholesale to the state's general fund and away from conservation.

It also seemed to ignore warnings from former DCNR Secretary Michael DiBerardinis, who wrote in May that too much leasing would "scar the economic, scenic, ecological and recreational values of the forest," and that "a rush to drill threatens the certification of our state forests as sustainably managed."

This point – that further leasing could pose threats to the long-term stability and quality of our forests – will have to be explored further in later posts. But it's worth noting here that both former Secretary DiBerardinis and acting Secretary John Quigley have both voiced concerns over the possible impact of further leasing. In May, for example, Quigley wrote in a memo to the governor's office that

"This would likely be the last gas lease sales on State Forest land that we could manage within the context of our sustainable certification for the foreseeable future . . . DCNR remains very apprehensive about the leasing of additional forest land."

Fully one-third of state forest has already been leased for drilling – and while only four Marcellus Shale wells are currently active on that land, the state expects as many as a thousand or more over the next decade. We haven't, in other words, even begun to see how drilling on state forest may play out.

Today's news – that the Governor intends to do it again, and without bothering with the legislature – confirms environmentally-minded legislators recent fears.

For several weeks, rumor had been that legilsators were going to insert language into the coming 2010-2011 budget that would require the Department of Conservation and Natural Resources to lease, for the third time in three years, more forest land for drilling – this time $180 million worth.

Environmentally-minded legislators (so-called Green Dogs) planned to fight this clause.

On Monday, though, a new rumor was afloat: the Governor would simply require DCNR to lease the land himself, without the legislature, and he might do it soon.

"He could do it tomorrow," Rep Greg Vitali (D-Delaware), who is sponsoring a bill that would impose a moratorium on further leasing of state forest for drilling, told CP on Monday.

Indeed. Rendell spokesman Gary Tuma confirmed yesterday that the Governor was considering authorizing another lease himself:

As things now stand, he would have the authority to do so in the 2010-11 budget year, and yes he would consider doing it because it was part of the two-year agreement with the legislature.

That last bit, the idea that further leasing "was part of the two-year agreement with the legislature," is disputed.

In fact, Mr. Tuma originally told City Paper that the $180 million sale had been written into law already. When CP pointed out this wasn't the case, Mr. Tuma wrote back that:

There was a very clear and very public agreement in October that the Governor and the legislature had jointly agreed on a plan to balance the budget for two years, and that $180 million from leasing in 2010-11 was part of that.

Tuma did not respond to CP's question of where, exactly, this "clear and very public agreement" had been publicized.

Rep. Vitali directly disputes this claim. "The opposite is true," he told CP today. He and several other Green Dogs, he said, had been aware of the legislature's and governor's intention to include more leasing in the budget but opposed it.

"We negotiated and the negotiated agreement was that for 2009-2010, there would be $60 million in leasing. There was no agreement with regard to 2010-2011, simply no agreement."

Representative David Levdansky (D-Allegheny, Washington) agrees:

"We insisted that they take year two off the table, and they did," he told CP today. "If the governor's claiming otherwise, it's not accurate and it's just an effort to double-cross us."

"I supported Ed Rendell when he ran against the real Bob Casey in 1986. I supported him when he ran against young Bob Casey. I've been his legislative ally on every major policy. But the governor is dead wrong on this. He's a city slicker – he doesn't understand that a century-old state forest system is a treasure of the Commonwealth."

Stay tuned for updates on the Clog. Tips are always welcome.


Tioga County, PA Gas Watch
Posted 2010-02-11 15:02:03
"only four Marcellus Shale wells are currently active on that land"...

I'm not sure how current that info is - as we speak there are more than 4 active wells on state forest land here in Tioga County alone...

Beatrice Hastings
Posted 2010-02-12 08:21:50
This man continues to break the Social Contract to fuel his own ambition and cronyism.  He needs $137mn to give to his rich corporate friends in Philly for another twisted idea, The Barnes On The Parkway Project, which guts another iconic landmark in a public/private conspiracy (I mean partnership) with wealthy special interests that obviously have way too much money and should be taxed more severely.  Rendell should have stuck to scrubbing urinals in Philly because his conscience has apparently never left the gutter.  The Barnes Belongs in Merion. 322 days to January 1, 2011.

The Marcellus Memos: Privately, Rendell’s State Forest tsars expressed deep concern over leasing state forest for drilling :: The Clog :: Blog Archive :: Staff Blog :: Philadelphia City Paper
Posted 2010-02-12 11:20:13
[...] Secretary Michael DiBerardinis cautioned Rendell against leasing forest.   A few days ago, we reported (and the Inquirer re-reports today) that Governor Rendell is considering authorizing yet another [...] 

Enviro Guy
Posted 2010-02-13 13:34:26
Great to see you getting on board the Marcellus coverage, Isaiah. Just to clear the record, the Inquirer reported on Oct. 2 about the existence of the $180 million budget deal, and AP and the Inquirer ran items on the deal in early January. Also, here's a press release Penn Environment issued on Oct. 14:

Budget Dramatically Shifts Resources From Environmental Protection, Natural Resource Conservation

LENGTH: 969 words

DATELINE: HARRISBURG, Pa., Oct. 14 

Pennsylvania Is Selling Off Natural Resources to Balance the Budget
HARRISBURG, Pa., Oct. 14 /PRNewswire-USNewswire/ -- Cuts and diversions in the budget just adopted by the state have dramatically reduced spending for environmental and natural resource programs in Pennsylvania by $347 million in just one year according to Donald S. Welsh, President & CEO of the Pennsylvania Environmental Council.
"The unprecedented 26 percent cut in the Department of Environmental Protection and 18 percent cut in Department of Conservation and Natural Resources budgets raise significant doubts about the capacity of both agencies to fulfill their missions," said Welsh. "Environmental programs for some reason seem to have been singled out for cuts that go way beyond the average 9 percent suffered by other agencies." 
The General Fund budget of DEP was cut $58 million, or 26.7 percent, with most of the cuts coming in line items used to fund staff positions. Over 300 positions are at risk of being eliminated as a result of these cuts.
DCNR's General Fund budget was cut $21 million, or 18.5 percent, with again many of the cuts coming in personnel line items. There are about 160 positions at risk of being eliminated at DCNR.
"Of great concern is the diversion of $234 million from the Oil and Gas Fund to the General Fund that was earmarked for improving recreation and access to our State Parks and Forests," said Welsh. "Taking the proceeds from mineral rights sales away from conservation programs erases 55 years of precedent in Pennsylvania."
$174 million was transferred from the Oil and Gas Fund to balance to 2008-09 budget, and $60 million is to be transferred to balance the 2009-10 budget. Another $180 million is set to be used from the Fund to balance the 2010-11 budget, as well.
"Adding to these diversions is the requirement in the budget to lease thousands of acres of State Forest land for Marcellus Shale natural gas drilling to raise the money needed for the diversions," said Welsh. "It is a sad day for the Commonwealth when we are selling off our natural resources to balance the budget."
A bill accompanying the budget requires the Department of Conservation and Natural Resources to lease as many acres as necessary to yield $60 million in revenue to balance the budget. There is no cap on the acres to be leased or a minimum bid price. This provision of the budget would have been even more destructive had it not been for the leadership of a bi-partisan coalition of House members who vigorously fought to protect state lands from unmitigated extraction.
"These cuts are bad enough on their own, however, they are only the latest in a series of cuts or diversions over the last several years," said Welsh. "Funds for watershed restoration, abandoned mine reclamation, wastewater plant operations, storage tank cleanup, diversions from the Keystone Recreation, Parks and Conservation Fund and more have all gone to balance the budget."
Here is the list of cuts and diversions over the last seven years:
$376 million in Act 339 grants intended to support wastewater plant operations were eliminated to balance the budget;$174 million diverted from the DCNR Oil and Gas Fund to balance the 2008-09 budget;$79 million cut from the DEP and DCNR General Fund budget during 2009-10 fiscal year;$60 million diverted from the DCNR Oil and Gas Fund to balance the 2009-10 budget;$100 million in 2002 from the Underground Storage Tank cleanup insurance fund to balance the budget (although this is slowly being repaid over 10 years);$52.7 million "one-time" diversion from the Keystone Recreation, Parks and Conservation Fund in 2006 to balance the budget;$50 million in 2007 and 2008 from the Environmental Stewardship Fund, which supports mine reclamation and watershed restoration, to fund the Hazardous Sites Cleanup Program because there was no agreement on how to fund that program;$50 million in 2007 and 2008 from the Environmental Stewardship Fund to pay debt service on the Growing Greener II bond issue and taking funding away from restoration projects each year for the next 25 years - reflecting a pattern of only environmental programs being required to address their own bond debt service;$15 million from the Recycling Fund in to balance the 2008-09 budget;$18.4 million put into budgetary reserve in 2008-09 from the Department of Environmental Protection and Department of Conservation and Natural Resources; $5and million reduction in Resource Enhancement and Protection (REAP) farm conservation tax credit program in FY 2009-10.
"Before last week's budget was adopted, we were already below the point of providing sufficient funding for environmental and conservation programs; programs that protect public health, rebuild our communities, and sustain our state's quality of life," said Welsh. "It's time to stop ignoring the need for additional, long-term revenue sources like a natural gas severance tax. Without rebuilding adequate investment, we cannot hope to meet our legal obligations to cleanup our air and water or take care of the natural resources in our public trust."
The Pennsylvania Environmental Council promotes the protection and restoration of the natural and built environments through innovation, collaboration, education and advocacy with the private sector, government, individuals and communities as partners to improve the quality of life for all Pennsylvanians.
The Council was founded in 1970 and serves the entire state through offices in Meadville, Franklin, Wilkes-Barre, Pittsburgh, Harrisburg and Philadelphia. For more information visit www.pecpa.org or call 717-230-8044.
    Contact:
    Donald S. Welsh
    President & CEO, PEC
    717-230-8044 ext. 16
SOURCE Pennsylvania Environmental Council

Isaiah Thompson
Posted 2010-02-15 13:42:03
To clarify the record: Thanks, Enviro Guy: the Inquirer did indeed report the $180 in October and January. The "new" news is this: that Rendell is considering authorizing the lease without waiting for legislative approval to transfer funds from the Oil and Gas Lease Fund; and that "Green Dog" House Democrats dispute the idea (as reported in the October Inky) that there was any such $180 deal in place when they voted in the 2009-2010 budget. 

Tioga Gas Watch: Are you sure? Give me call. 

Thanks to all for input and clarifications always.

Oil and Gas Guy
Posted 2010-02-20 15:20:13
This is the best news that I have heard since the last time they sold mineral rights. Ed is a very smart man and has the best intrest for OUR state in mind. DRILL DRILL DRILL JOBS JOBS JOBS
Posted by Isaiah Thompson @ 8:13 PM  Permalink | Post a comment
POSTED: Monday, February 8, 2010, 9:23 PM
Filed Under: Marcellus Shale | News

Governor Rendell is rumored to be considering directing the Department of Conservation and Natural Resources (DCNR) to lease more land for Marcellus Shale gas drilling, even before the 2010-2011 budget, which he proposes tomorrow, passes.

"The fear is that governor will lease out more land in the spring," said State Representative Greg Vitali (D-Delaware). "The governor does not need legislative approval to lease out more land for drilling. He could do it tomorrow."

Vitali has sponsored a bill that would impose a moratorium on further leasing of state forest for drilling.

Some background:

For the past few weeks, rumor had it that the four main caucuses of the General Assembly had made a closed-door agreement to require DCNR to authorize the lease of even more forest land for Marcellus Shale gas drilling to the tune of $180 million.

As I reported in this week's column, Man Overboard ("Uh-oh" 2/3/2010), the legislature included a similar – and totally unprecedented – clause in last year's budget, requiring DCNR to lease $60 million worth of state forest, effectively usurping DCNR Secretary John Quigley's job of determining himself what and whether to lease:

For years, Gov. Ed Rendell and legislators have rubbed their hands in anticipation of this windfall. And during the 2009 budget wars, they did something completely unprecedented: Lawmakers ordered the Department of Conservation and Natural Resources (DCNR), which oversees state forests, to lease land to gas drillers to the tune of $60 million — which the state would keep.

That decision ignored the advice of former DCNR Secretary (and current Philly Parks and Rec czar) Michael DiBerardinis, who in a March 2009 memo warned that too much leasing would "scar the economic, scenic, ecological and recreational values of the forest," and that "a rush to drill threatens the certification of our state forests as sustainably managed."

They did it anyway.

Governor Spokesman Michael Smith confirmed in a phone call with CP last week that Rendell would indeed seek $180 million from "gas drilling revenues of some sort" - but whether that amount would include a possible proposed tax on drilling or include the leasing of state forest – he declined to specify.

That, he said, would be up to the legislature.

But maybe not. If the rumor's true (the governor's office has not yet responded to a call for comment), the Governor may decide to lease state forest for drilling all by himself – effectively letting legislators who might face opposition on such a vote off the hook.

Currently, one-third of all state forest land has already been leased for drilling. And while thousands of wells are expected on the land already leased, only three are operational.


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Posted 2010-02-08 17:48:37
[...] This post was mentioned on Twitter by Philly City Paper, chelle_mcde, PhillyFrScratch, Philly News Now, Pennsylvania Landman and others. Pennsylvania Landman said: MarcellusShale... Breaking: Rendell rumored to be considering unilateral leasing of .. http://bit.ly/9NjaEh PennShale [...] 

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Posted 2010-02-08 18:18:42
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Ted Borawski
Posted 2010-02-09 13:29:16
Clarification point.  It is true that only four Marcellus wells are currenlty under production on SF lands, but overall we have over 700 older shallow wells under production, which we manage on a daily basis.  next calendar year we expect just over 40 Marcellus wells to be on production.

Isaiah Thompson
Posted 2010-02-09 17:00:58
Mr. Borawski - thanks for the clarification, and please feel free to add any other relevant points. I take it you work for the state? - Isaiah
Posted by Isaiah Thompson @ 9:23 PM  Permalink | Post a comment
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