Booming natural gas industry is silver lining in Northern Tier

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(EDITOR'S NOTE: As we close out the year, the Sun-Gazette takes a closer look at how the economic crisis of 2009 affected and continues to affect this region. Our year-end series continues today and runs through Thursday.)

WELLSBORO - In a rural area where every dollar counts, cutbacks in state funding made 2009 difficult for organizations and consequently, taxpayers alike. But the booming natural gas industry added a ray of hope to the region.

With the influx of drilling, many struggling dairy farmers have found a way to stay afloat in the midst of declining milk prices.

The Marcellus Shale is the silver lining to an otherwise difficult year, according to Tom Freeman, Betterment Organization of Mansfield vice president.

"We have a phenomenon, and that is the natural gas. We are sitting on a financial bubble," he said.

But Freeman also said he agrees that the state budget this year created one of the year's "biggest challenges."

David Cummings, chairman of the board of directors of the Tioga County Development Corp., which gets a good portion of its operating budget from state grants, said state cutbacks did affect the organization's budget process in it's operation.

"We are getting less support from the state, and some programs have been reduced or eliminated. This is the first time in our history that the budget is relying more on local dollars than state," he added.

Cummings said the need for support from local businesses to continue TCDC's mission of improving the economy is even greater.

"We have expanded our lending to industrial and commercial and are still providing the other services such as the leadership programs. We are grateful for support we get for those," he said.

At the same time, Cummings said TCDC reduced staff, froze salaries and is "pretty much operating with everyone taking on more responsibilities.

"We mail less, email more, and are basically doing more with less."

The four paid staff at the Wellsboro office have been putting in a lot more hours and not getting compensated for it, and everyone kicks in, Cummings added.

Despite the struggles, because of the natural gas industry, the future looks bright for Tioga County, Freeman said.

"You ride downtown and look at the number of white pickups in the area, and talk to someone who wants to get a motel room, and they can't. Those people eat and shop here," he said.

The need for housing for gas industry workers is so great that one company, East Resources, actually bought a motel near Mansfield, he said.

"If you talk to officials from the gas industries, they will say that housing is a problem for them. They also would tell us they are bringing in a lot of single men in here who are workers, but that they will also be here for awhile. There will be drilling going on for six to 10 years. There will be young men who will marry here and have families. I think we will see incoming people and we will see growth from those people who are here," he added, just not in the immediate future.

Tioga County Commissioner Erick Coolidge said the times have been "unprecedented" in terms of the challenges facing local governments.

"While we have sought to find measures that we hoped would ease those challenges going into the new year, 2010 may turn out to be as challenging as this year was," he said.

As for the natural gas industry, Coolidge said though it seems "pretty aggressive" it really hasn't even started yet.

"This is just an introduction to what it will be several times over," he said.

What is happening is a matter of perspective, he said.

"Is the glass half empty or half full? There are a lot of states that would seek to enjoy what is being afforded us. The challenge is what do we do with the choices available to us with this exploration?" he added.

Hotels, motels, restaurants, rentals, laundromats: all are having their use increased, Coolidge said.

"That is a plus. Excavation business revenues have been tremendous for them," he added.

But there are areas of concern with the environment, Coolidge said. "All of us are conscious of that and are seeking ways to protect our waters and aesthetics," he added.

"We've made concerted efforts to keep ourselves informed and watch over the growth and development of this emerging industry," he said.

Unlike other areas of the country, the tax base in Tioga County has grown, he said.

"This year to have any growth whatsoever in the tax base, when across the country there was no construction, is a positive and will reflect what the gas industry will prove to be," he said.

Water is a concern anytime, Coolidge said, "not just with the gas industry."

"Water is a precious thing and from the very first meeting we have had to now, the board has not lost sight of its intention to stay focused on the fact that water is primary," he said.

The gas industry also knows water quality is a primary concern.

One measure that has been introduced is to reinstitute the county conservation districts, Coolidge said.

"The governor has been invited to come north and we will discuss it and an impact fee will be suggested," he said.

"We also will discuss ways of holding dollars in the community to take care of the roads, bridges, etc. that are impacted with the increase in truck traffic to the area," Coolidge added.

Coolidge said he has received support from the surrounding counties in the Northern Tier and points south to pressure the state for revenue to take care of infrastructure.

"They recognize local government cannot absorb all of these costs alone. The natural gas industry is looking at trying to find a way to hold money here as well," he said.

Coolidge said that keeping a healthy, civil discussion going about the issues is vital to how the future pans out for the county and its residents.

"This activity in our region will clearly be a result of how we communicate and keep a discussion that is civil, productive and beneficial to the communities. We all care and will protect our home," he added.

One way Coolidge said the county could protect itself from undesirable results is through countywide zoning.

"Without zoning we lend ourselves to change that we have no control over," he said. "That is not a healthy position in which we should find ourselves," he added.