Area officials raise concerns about drilling at Senate hearing

Government leaders and gas industry experts seem to agree that the Marcellus Shale poses both environmental challenges and economic opportunities for the region.

For some on the government side, the effects drilling for natural gas will mean for municipalities as well as their water supplies and roads were the biggest concerns.

Lycoming County Commissioner Rebecca Burke was among those testifying Thursday before the Senate Policy Committee hearing at Pennsylvania College of Technology.

Burke, chairwoman of the state's first county Community Gas Exploration Task Force, made it clear at the outset of her remarks that she welcomes the gas companies and is confident they want to be good business partners and neighbors.

She said responsible operators already have demonstrated willingness to repair damage to roads caused by heavy equipment.

"However, local governments and our constituents have no guarantees under the existing system. If irresponsible operators do not address the damages created, our roads deteriorate more rapidly and our local property taxpayers have the responsibility for the financial consequences, without any contributions from those benefiting from the oil and gas industry."

Burke noted that drilling the wells requires high volumes of water, which must be transported by heavy vehicles across municipal lines.

Penn Township Supervisor Chairman David Reese noted Beaver Lake Road, which is maintained by the state Department of Transportation, has been severely impacted by gas company vehicles transporting water.

He also said several paved roads maintained by the township have been broken in spots as the result of Chief Oil and Gas vehicles. However, he added that the company has repaired all the main damage to the roads at their expense.

He also said landowners are happy to have drilling done on their properties and recognize the financial gain it will mean for them.

"They have stated that the only thing that Chief Oil and Gas could do is communicate with them more about what is happening on their land," he added.

Reese said he is concerned about what happens to the large volumes of water needed for drilling the wells, including how long water remains on the site and if retaining ponds will be large enough for storing it.

Ray N. Walker, vice president of Range Resources, which he described as the largest gas producer in the state, said despite a 70 percent decline in natural gas prices from last summer, he expects a small increase in drilling in the Marcellus Shale this year.

He decried the additional requirements for obtaining drilling permits, resulting in delays and confusion.

However, Walker said there has been little disagreement between the industry and the state Department of Environmental Protection concerning measures needed to protect the environment. He said he supported changes to the permitting process.

Water usage, he said, will not be a significant issue as drilling increases. In fact, the water needed for drilling over the years will represent well below 1 percent of all water used in the state.

He also addressed the issue of wastewater disposal, noting that possible methods include reuse of water or injection of the water into deep rock layers.

Walker indicated that being responsible stewards of the environment is crucial.

"Public perception is important to us," he said. "If we can't go back in there and drill, we've lost money for our shareholders."

David J. Spigelmyer, vice president of government relations at Chesapeake Energy, said in order for the gas industry to grow, a change is needed in public perception of the Marcellus Shale.

Within six years, he said, the state can produce as much gas as it consumes and become natural gas independent.

"If we are to become a natural gas net exporter, we would have a clear, strategic advantage to develop manufacturing and industrial job growth throughout the commonwealth," he said. "Most importantly, we will be producing and supporting a clean-burning domestic energy product with enough natural gas right here in Pennsylvania's Marcellus Shale to fuel our nation's demand for natural gas for at least 10 years."

Burke later raised concerns about DEP assuming control over soil and erosion matters formerly relegated to local conservation districts.

"Our guys get it right," she said. "I think taking it out of local hands leaves counties out of it."

J. Scott Roberts, deputy secretary of DEP's Office of Mineral Resources, said the same environmental standards apply.

"We have consolidated soil and erosion regulations. It has been replaced by DEP review staff," he said.

He said conservation districts never were tasked with inspecting oil and gas sites, but that doesn't mean they will not be expected to keep "their eyes and ears open."