Marcellus Shale Coalition Releases the Facts on Flowback
Water Treatment

CANONSBURG, Pa (Feb. 4) - The Marcellus Shale Coalition today issued the following statement to provide the facts regarding water use and flowback water management in the development of natural gas from the Marcellus formation:

"Pennsylvanians deserve to get the facts about water management for Marcellus Shale development. We need to put an end to the suppositions that could threaten our state's ability to create jobs and investment here at home.

"Regulations governing the use and management of water needed to drill a Marcellus Shale well in Pennsylvania are among the most stringent in the nation, and ensure the protection of the Commonwealth's water resources. Water withdrawals from streams and rivers must be approved, including the withdrawal location and amount of water required for each well, as well as detailed storage and treatment plans.

"The industry currently treats or recycles all of its flowback water. Recycling accounts for approximately 60 percent of the water used to complete Marcellus Shale wells, with greater percentages predicted for the future. There are more than a dozen approved water treatment facilities available to treat flowback water, with plans for additional capacity in the future.

"Companies are working with international water quality experts and are funding research and development projects to develop mobile and permanent treatment technologies such as evaporation and crystallization. These efforts will enhance the Commonwealth's overall water treatment capabilities, while bringing more commerce into Pennsylvania. We're also researching and developing deep underground injection well technology, which is a proven, safe disposal method in other regions of the country.

"Claims about elevated levels of Total Dissolved Solids (TDS) in the Monongahela River from natural gas development have been refuted by studies that attribute a minimal amount of the total TDS levels to Marcellus Shale drilling activity. In fact, historical monitoring shows the variability of TDS levels in the Monongahela and other rivers to be a cyclical phenomenon over the past 30 years.

"The industry is committed to the use of Best Management Practices in all aspects of its operations, including significant investment in advanced flowback water treatment capabilities and recycling technologies."

Marcellus Shale Coalition Applauds DEP Staff Increases,
Supports Clear and Workable Regulations

CANONSBURG, Pa. (Jan. 28) – The Marcellus Shale Coalition today expressed its support for Pennsylvania’s plan to hire inspectors under the Department of Environmental Protection’s oil and gas program, and urged the Commonwealth to continue developing a predictable structure for its Marcellus Shale regulations.

“The Marcellus Shale Coalition has consistently supported the hiring of additional DEP staff to monitor natural gas wells in the commonwealth, as reflected in its proactive endorsement of permit fee increases in 2009 to add and train new inspectors,” said President and Executive Director Kathryn Klaber. “Our support continues with today’s announcement of an additional 68 DEP staff dedicated to the oil and gas program. This sustainable approach is working and will help to ensure the continued responsible development of the Marcellus Shale in Pennsylvania.”

Klaber noted that the members of the MSC are committed to applying the industry’s best management practices to all aspects of their operations to protect the environment and manage the state’s water resources wisely. “The Governor has suggested new regulations that are currently existing, or supported and recommended by the MSC as part of the industry’s best management practices approach,” she said. Pennsylvania has one of the most rigorous oil and gas regulatory programs in the country, and the industry has worked with DEP to ensure the provisions of the Oil and Gas Act remain up to date and protective of the environment.

The MSC noted that the characterization of some recent industry issues required clarification, including the following:

Gas Migration: The incidence of gas migration does not present a significant risk with the drilling of Marcellus Shale wells. Subsurface methane gas exists naturally in many parts of Pennsylvania, and the industry has been working with DEP to better understand how Marcellus Shale wells can be drilled and completed without creating a potential concern with this natural geological condition.
2010 Permits: A reference to the potential filing of 5,200 permit applications in 2010 does not accurately reflect expected drilling activity. The industry projects that only one of every three wells permitted are drilled.
Inspections: A total of 14,000 field inspections, including shallow well locations, were made by DEP in 2009, with enforcement action resulting from Marcellus Shale drilling activity accounting for only 1.1 percent of the state’s total actions. Often times, those findings were easily and quickly corrected.

Marcellus Shale Coalition Announces Kathryn Klaber as new President and Executive Director

Click to view
Kathryn Klaber's bio

(State College, PA - January 11, 2010) The Marcellus Shale Coalition (MSC) today proudly announced Kathryn Klaber as the new organization's first President and Executive Director.

The announcement was made before about 700 people at the Second Annual Marcellus Shale and Pennsylvania Department of Environmental Protection (DEP) Best Management Practices Workshop and Training Seminar in State College.

Klaber has worked closely with elected leaders, regulators and the environmental community in her previous role as Executive Vice President for Competitiveness at the Allegheny Conference on Community Development. A lifelong Pennsylvanian, Klaber earned her undergraduate degree from Bucknell University and her Masters in Business Administration from Carnegie Mellon University.

Commenting on her new role, Klaber said, "The economic opportunities from the Marcellus Shale are real, growing, and already making a positive difference in the lives of Pennsylvanians. This is an exciting and impactful time for the natural gas industry. I am committed to facilitating the development of best practices that will benefit our economy, our environment and our communities."

Experts believe the Marcellus Shale to be among the largest known natural gas fields. The United States now has a growing 100-year supply of clean, abundant, affordable, and domestic natural gas thanks to the pioneering efforts to develop natural gas from shale.

Ray N. Walker Jr., Chairman of the Marcellus Shale Coalition and Vice President of Range Resources Marcellus Shale Division said, "The Marcellus Shale will provide decades of clean-burning and affordable natural gas to residents of this Commonwealth and the Nation. The Marcellus Shale Coalition is dedicated to the environmentally responsible development of this domestic resource that will assist our nation in reducing our reliance on foreign energy supplies, while strengthening our economy and environment."

"The Marcellus Shale Coalition has made an excellent choice in Katie Klaber as its president and executive director," said Dennis Yablonsky, Allegheny Conference CEO. "Katie played a significant role in the gains the Allegheny Conference has made in tax competitiveness and business climate improvement in Pennsylvania. Katie also advanced initiatives around air and water quality, always working proactively on behalf of a growing economy and an improving environment."

FOR IMMEDIATE RELEASE

Contact: Ben McCue
(214) 519-3626
bmccue@pamarcellus.com

Annual Meeting of Marcellus Shale Committee Affirms Creation of Independent Organization, Appointment of New Officers and New Identity

CANONSBURG, Pa., Nov. 30 – The newly named Marcellus Shale Coalition (MSC) today announced plans to establish itself as an independent non-profit organization to represent the Marcellus natural gas industry in Pennsylvania and elected new officers to the group’s executive committee. During its annual meeting held Nov. 19, the MSC also discussed plans to hire a president and enhance its ongoing communication with regulators, government officials, news media and Pennsylvania residents. The MSC anticipates hiring a full-time president and support staff by the end of January 2010.

“Over the last year, this organization has made significant strides to provide people throughout the Commonwealth with the facts about developing clean-burning natural gas from the Marcellus Shale formation,” said Ray Walker, chairman of the executive committee. “The MSC has added significantly to its membership and now represents over 90% of the companies that have applied for permits to drill Marcellus Shale wells. The MSC has established itself as the leading voice for the companies exploring the Marcellus Shale, and continues to improve our stakeholders’ understanding of how we safely extract natural gas and provide a needed boost to the economy of the commonwealth. The coming year will present new challenges and opportunities to tell the story of Pennsylvania’s most important energy and economic development initiative in the past several decades, and the MSC is positioned to tell that story.

“The Marcellus Shale Coalition will work cooperatively with the other organizations working to advance the development of oil and gas resources in the Commonwealth,” added Walker. “The Independent Oil and Gas Association of Pennsylvania, the Pennsylvania Oil and Gas Association and the Associated Petroleum Industries of Pennsylvania will be members of the newly formed Coalition.”

Walker noted that the Pennsylvania Oil and Gas Association and the Independent Oil and Gas Association of Pennsylvania played a critical role in launching the Marcellus Shale Coalition and establishing the organization’s presence in the Commonwealth.

The annual meeting included a vote to change the organization’s name to the Marcellus Shale Coalition to reflect the broad base of companies that have joined ranks to support the industry’s efforts. The following MSC members were elected to serve on the executive committee:

Ray Walker, Jr, chairman (Range Resources)
David Spigelmyer, first vice chair (Chesapeake Energy Corporation)
Rich Weber, second vice chair (Atlas Energy, Inc.)
William Fustos, secretary (East Resources)
Kristi Gittins, treasurer (Chief Oil & Gas)

About the Marcellus Shale Coalition: The Marcellus Shale Coalition is committed to the responsible development of natural gas from the Marcellus Shale geological formation in Pennsylvania and the enhancement of the Commonwealth's economy that can be realized by this clean-burning energy source.

Marcellus Shale Committee Issues Statement on Proposed Severance Tax

WEXFORD, Pa., Oct. 6, 2009 – The Marcellus Shale industry today issued the following statement regarding misleading and incorrect information featured in the Oct. 4 Pittsburgh Post-Gazette article, “Toxins tied to fish kill may have hitchhiked.”

It is irresponsible and premature to speculate on the source or sources contributing to the aquatic condition of Dunkard Creek. The situation with the Dunkard Creek is unfortunate and deserves a thorough and proper investigation of possible causes. Why the Marcellus Shale industry is even mentioned in this article when there has not been Marcellus drilling activity anywhere near the upper reaches of Dunkard Creek where the algae was found is unwarranted and completely mischaracterizes the situation.

The entire natural gas industry is committed to environmental stewardship. As residents of the Commonwealth, we are also eager to learn more about this incident. We are working with the appropriate regulatory agencies to help determine the cause and source, including active participation in collecting and analyzing water samples from the creek.

The West Virginia Department of Environmental Protection (DEP) has stated that there are numerous theories and thousands of possible sources of golden algae, including migrating birds, animals, non-gas industry vehicles or equipment, and sportsmen — all of which are completely unrelated to natural gas drilling, equipment or transportation processes.

Natural gas producers follow stringent regulations on the management of water resources. Water withdrawals from streams and rivers are permitted by the DEP, and flowback water generated from hydraulic fracturing must be managed and treated according to state regulations. Many natural gas producers are recycling all or large portions of this flowback water, eliminating the need for treatment and eventual discharge into waterways.

The Marcellus Shale industry will continue to work with appropriate state and federal agencies to investigate the situation.

Penn State Study: Marcellus Shale Development Expected to
Create 98,000 Pennsylvania Jobs by 2010, $14.17 Billion Impact

Proposed Severance Tax Would Hurt Jobs, Investment, and Result in $1.4 Billion in Less State
and Local Tax Revenue

Audio of Marcellus Shale Press Conference (Run Time 34:13)

HARRISBURG, Pa (July 27) – Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues, according to an economic study completed by the Pennsylvania State University for the Marcellus Shale Committee and the Pennsylvania House Natural Gas Caucus.

The study notes a consistent increase in annual drilling and projects a $25 billion contribution to the Commonwealth’s economy in the year 2020. This level of activity would generate almost $1.4 billion in state and local tax revenue and create more than 176,000 new jobs.

The curtailment of drilling activity that would result from the imposition of the newly proposed severance tax would generate $1.4 billion less state and local total tax revenue between now and 2020 than if the industry is allowed to grow without the new proposed tax. It would also result in less job creation and overall economic benefits in Pennsylvania. No other mineral in Pennsylvania is subject to such tax. Other states competing for limited investment dollars reduce taxes on high cost shale development.

The House Natural Gas Caucus, a bi-partisan group of 56 legislators from across Pennsylvania, announced the findings of a study that was compiled with economic data provided by the member companies of the Marcellus Shale Committee.

“This study validates what is being experienced in my district and in other communities around the state where drilling in the Marcellus Shale has taken a foothold, focusing on real economic growth and good jobs for people in a number of fields,” said State Rep. Tim Solobay (D-Washington). “Pennsylvania has the hardest-working job force in America and the Marcellus represents an opportunity to prove that we’re up for the challenge of developing the largest, natural gas field in the United States.”

“During difficult economic times such as this, the findings from Penn State bring exciting news that will positively impact nearly every facet of Pennsylvania’s economy,” said State Rep. Brian Ellis (R-Butler). “We have a once-in-a-generation opportunity to improve Pennsylvania’s economy and our nation’s energy future by embracing and supporting the development of clean-burning natural gas.”

Using conservative assumptions for production, commodity prices and related factors, the study found the industry making the following current and future economic contributions to Pennsylvania:

Natural gas production had a $2.3 billion direct impact on Pennsylvania’s economy in 2008, adding more than 29,000 new jobs and $240 million in state and local tax revenue. More than thirty-percent of all tax revenues remain at the level local.
The industry will contribute a cumulative economic impact to the state of $265 billion by 2020, along with nearly $15 billion in state and local revenue. The study includes direct, indirect and induced jobs, and economic activity from Marcellus Shale development in Pennsylvania.
Pennsylvania currently imports approximately 75% of its natural gas consumption. If Marcellus activity continues as expected, Pennsylvania could reverse its position as a natural gas importer to a net natural gas exporter by 2014.

The leading researchers on the study are Dr. Timothy Considine, School of Energy Resources Professor of Energy Economics with the Department of Economics and Finance at the University of Wyoming; Dr. Robert Watson, Emeritus Associate Professor of Petroleum and Natural Gas Engineering and of Environmental Systems Engineering at the Pennsylvania State University, and Chairman of the Technical Advisory Board for the Bureau of Oil and Gas Management of the Pennsylvania Department of Environmental Protection.

The study estimates that the Marcellus Shale may contain 2,445 trillion cubic feet of natural gas reserves in place with recoverable reserves amounting to 489 trillion cubic feet – or enough natural gas to last the entire United States for more than 20 years. Taking into account the other vast reserves of domestic natural gas, the Marcellus Shale will more than likely support Pennsylvania’s economy for 100 years or longer.

According to the Energy Information Association (EIA), natural gas usage is expected to increase more than 20% through the 2020 in the United States and 40% worldwide. The EIA also indicates that 57% of all new electric generation will come from natural gas, which is more than all other sources combined.

Sunday Forum: The bottom line on Marcellus Shale

Robert W. Watson authored this opinion-editorial that appeared in the July 19 edition of the Pittsburgh Post-Gazette regarding the development of natural gas. He is an emeritus associate professor of petroleum and natural-gas engineering and of environmental systems engineering at Penn State University (rww1@psu.edu, and chairs the technical advisory board for the Bureau of Oil and Gas Management of the Pennsylvania Department of Environmental Protection.

Pa’s Oil and Gas Industry Opposes Fracture Stimulation Reporting Bill in Congress

Proposed federal legislation would duplicate existing Pennsylvania regulation on gas well fracture stimulation

Pittsburgh (July 10) – Representatives of Pennsylvania’s oil and gas industry expressed their opposition today to the proposed FRAC Act in Congress that would create duplicative regulation of the hydraulic fracture stimulation process used to drill natural gas wells.

“Hydraulic fracture stimulation has been used in Pennsylvania since 1949,” said Stephen Rhoads, president of the Pennsylvania Oil and Gas Association. “Unnecessary regulation of this practice would hurt our nation’s energy security and threaten our economy, and it would destroy Pennsylvania’s shallow gas industry.

In 2008, the Pennsylvania Department of Environmental Protection issued 7,883 well permits that regulate how wells are drilled, cased and cemented to protect groundwater supplies from downhole operations like hydraulic fracturing. This legislation would require operators to get new federal Underground Injection Control permits from EPA Region 3 in Philadelphia for the exact procedure regulated by every well permit issued by DEP.

“Pennsylvania's operators can't afford the expense and delays created by two layers of permitting for the same activities," Rhoads notes. "The marginal economics of Pennsylvania's shallow gas wells could not sustain the excessive regulatory costs that the new federal permit would impose, and operators would simply be forced to stop drilling."

If Congress were to place additional federal regulations on top of the state and local regulations that govern the oil and gas industry practice of hydraulic fracturing, the number of new gas wells drilled in the U.S. would plummet 20.5 percent over a five-year period, according to an IHS Global Insight’s study, “Measuring the Economics and Energy Impacts of Proposals to Regulate Hydraulic Fracturing,”

The study found eliminating the use of hydraulic fracturing would be catastrophic to the development of American natural gas and oil, with a 79 percent drop in total well completions. This would reduce natural gas production by 45 and reduce oil production by 17 percent by 2014. With the country’s increasing reliance on unconventional resources, where more than 95 percent of wells are routinely treated using fracturing, the impact of eliminating hydraulic fracturing on production would be “permanent and severe,” the report noted.

“Pennsylvania’s current oil and gas regulations place great emphasis on protecting water resources,” said Lou D’Amico, executive director of the Independent Oil and Gas Association of Pennsylvania. “State regulatory agencies have been very effective in protecting drinking water aquifers from potential concerns due to hydraulic fracturing.”

Current gas well construction requirements consist of installing multiple layers of protective steel casing, surrounded by cement, specifically designed and installed to protect freshwater aquifers. According to information obtained from state oil and gas agencies, there is no documented case of drinking water contamination related to the hydraulic fracturing of a deep shale gas well. Furthermore, the Ground water Protection Council issued a report in April 2009 stating that the potential for hydraulic fracturing in deep shale gas wells to impact groundwater is extremely remote: as low as 1 in 200,000,000.

“The natural gas industry has provided a report of all the chemicals used in hydraulic fracture stimulation to the Pennsylvania Department of Environmental Protection and these chemicals are not secret,” said D’Amico. “In fact, the chemicals are used in incredibly diluted forms, making up approximately less than 0.05% of the sand/water mix injected into the well.”

These same chemicals can be found in grocery stores and pharmacies and have been safely used for generations, mostly in products that are applied directly to the skin or consumed. A complete list of all of the chemicals used in drilling and their concentrations are on the DEP’s website. In the Marcellus region, most companies use only four to five chemicals that are among the simplest of additives:

Friction Reducer – (polyacrylamide) reduces friction between fluid and pipe, commonly used in contact lenses, children’s toys, paper making, and water management operations
Biocide – (glutaraldehyde) eliminates bacteria in water that create corrosive byproducts, a disinfectant commonly used in swimming pools, farming, and in soaps and hand sanitation
Scale Inhibitor – (ethylene glycol) prevents scale deposit in the pipe that could inhibit gas flow, commonly used in water well and municipal water system maintenance, automotive antifreeze, household cleaners, and other de-icing agents
Oxygen Scavenger – (ammonium bisulfite) removes oxygen from water to prevent pipe corrosion, commonly used in cosmetics, food and beverage processing, food packaging, and pharmaceutical products
Diluted Acids – (hydrochloric acid) cleans pipe and helps dissolve cement and minerals to create initiation point for fractures to develop, commonly used in swimming pools and dozens of other household applications

The fracing process is supported in a comprehensive, unbiased report completed by the U.S. Department of Energy and the Groundwater Protection Council in 2009, entitled “Modern Shale Gas Development in the United States: A Primer.” According to the publication, fracing is a proven, safe and environmentally responsible way to extract clean-burning natural gas to meet our nation’s growing energy needs.

The Pennsylvania Oil & Gas Association
The Pennsylvania Oil & Gas Association is the non-profit trade association of the Commonwealth's independent oil and gas producers. The association promotes the general welfare of Pennsylvania's crude oil and natural gas exploration and production industry.

The Independent Oil & Gas Association of PA:
The Independent Oil and Gas Association of PA is a non-profit trade association that promotes professionalism in exploration, development and production of natural gas and crude oil. It provides a forum for its members to exchange views and expand their knowledge to achieve higher degrees of success.

Pennsylvania Marcellus Shale Committee
Formed in 2008, the Marcellus Shale Committee represents the oil and gas industry in Pennsylvania on matters pertaining to the acquisition, exploration, drilling, and development of the Marcellus Shale natural gas resource and provides a unified voice before all state, county, and local government or regulatory bodies. The committee, sponsored jointly by the Pennsylvania Oil and Gas Association and the Independent Oil and Gas Association of Pennsylvania, includes independent producers with historical expertise in the Pennsylvania oil and gas fields and national companies dedicated to bringing their industry experience and resources to achieve common goals.

Business, Government Leaders from Across Pennsylvania Cite Opportunities through the Marcellus Shale

Natural Gas Caucus, Marcellus Shale Committee Host

HARRISBURG, Pa (June 9) – Members of the Natural Gas Caucus, with the support of the Marcellus Shale Committee, brought a sampling of people to the Capitol today to discuss the economic success being realized in communities across the Commonwealth through the extraction of natural gas from the Marcellus Shale formation. Business executives, government officials and industry employees presented diverse perspectives on their experiences with this important economic and energy development opportunity.

Members of the Marcellus Shale Committee also brought a drill rig and a computerized van used in the fracture stimulation process for the public to view and tour.

“The Marcellus Shale story is being told in many counties, but it also needs to be told here in Harrisburg. It’s a story of new jobs, economic investment, energy development and environmental stewardship,” said State Rep. Tim Solobay (D-Canonsburg), co-chair of the House Natural Gas Caucus. “Washington County was the home to the first Marcellus Shale well almost five years ago. It has improved all aspects of the county’s economy, and has great promise for decades to come.”

“This is a great opportunity for Pennsylvania to become a leader in developing the clean-burning energy our nation needs, and it is being realized without government subsidies, tax-increment financing or other incentives that are too often required for economic development initiatives,” said State Rep. Brian Ellis (R-Butler), co-chair of the caucus. “We need to support this industry by working with them on challenges such as water treatment technology and infrastructure investment, and not work against them by imposing a severance tax just as drilling activity is getting a foothold here.”

Marcellus Shale Committee Co-Chair Ray Walker, Vice President, Range Resources, emphasized the industry’s commitment to develop the Marcellus Shale and work with government officials, communities and other organizations with an equal interest in a productive dialogue. “Pennsylvania is in the position to become a huge contributor to the future of the nation’s energy equation with the natural gas contained in the Marcellus Shale,” said Walker.

“At the same time, it is essential to recognize the impact of market forces on our industry, the competition from other states for drill rigs, technology, investment and manpower, and the need to allow the industry to grow in the Commonwealth.”

Natural Gas Caucus members and industry representatives heard from the following speakers:

• Doug McLinko, County Commissioner, Bradford County: Bradford County, an area new to mineral extraction, has seen an increase in economic growth with the introduction of drilling in the county.

• Jack Sordoni, Homeland Energy Ventures, Wilkes-Barre. Mr. Sordoni, whose company drills conventional oil and gas wells in the Commonwealth, expressed concern that the proposed severance tax on natural gas would decimate Pennsylvania's traditional mineral industry, which generates more than 25,000 direct and indirect jobs and will continue to produce energy and economic benefits as the Marcellus is developed.

• Greg Carder is the Corporate Operations Manager for Universal Well Services, Inc. which serves both the traditional and Marcellus industry. Universal is Headquartered in Meadville, PA and has operations throughout the Eastern US producing states and the Rockies. Universal has invested over 50 million dollars in new equipment and facilities to service the developing Marcellus Shale activity including outfitting a comprehensive state-of-the-art training facility. They currently employ over 800 people, with approximately 500 in Pennsylvania.

• Shawn Clark, Eastern Reservoir Services, Union City, Erie County: Mr. Clark found significant opportunity in the industry when he took a break from college after his first semester. He started at Eastern Reservoir Services, a frac flowback and testing company based in Pennsylvania that provides service in the Appalachian Basin and in Colorado, in January 2008. He is currently a Senior Well Test Supervisor.

Marcellus Shale Committee Plans Community
Information Session in Bradford County

Industry group will offer one-on-one conversations with industry representatives and a formal presentation

Pittsburgh (May 21) --- The Marcellus Shale Committee (MSC) will hold a community information session at Troy Memorial Auditorium, located at corner of King and High Streets in Troy, PA, from 6:30 p.m. to 8:30 p.m. on Wednesday, June 3, to discuss the development of natural gas from the Marcellus Shale in Bradford County.

The natural gas Industry will host an open house from 6:30 p.m. to 7:00 p.m. with representatives available to talk one-on-one with residents about exploration and development before a formal presentation at 7:00 p.m. The meeting will conclude with a question and answer session.

“The MSC encourages residents to learn more about the natural gas industry by attending this community meeting and obtaining information directly from the industry representatives,” said Rich Weber, MSC Co-Chair and President of Atlas Energy Resources.

“Drilling for natural gas in the Marcellus Shale formation has the potential to positively impact Pennsylvania in a number of ways,” said Ray Walker, Co-Chair of the Marcellus Shale Committee and Vice President of Appalachia Shale for Range Resources.

The event is open to the public and free of charge. No reservations are needed.

Marcellus Shale Committee Plans Community
Information Session in Tioga County

Industry group will offer one-on-one conversations with industry representatives and a formal presentation

Pittsburgh (May 21) --- The Marcellus Shale Committee (MSC) will hold a community information session at Wellsboro High School Auditorium, located at in the administration building at 227 Nichols Street, from 6:30 p.m. to 8:30 p.m. on Thursday, June 4, to discuss the development of natural gas from the Marcellus Shale in Tioga County.

The event is open to the public and free of charge. No reservations are needed.

Environmental Firm Finds Marcellus Shale Drilling Activity Had Minimal Impact On Total Dissolved Solids Found In Monongahela River Last Fall

Tetra Tech Study

Click to Download

May 20, 2009

Pittsburgh - A study completed by international environmental engineering and consulting firm Tetra Tech, Inc., revealed that natural gas development was only a minor contributor to elevated levels of Total Dissolved Solids (TDS) in the Monongahela River last fall.

Tetra Tech found that the primary TDS load in the Monongahela River came from abandoned mine discharge, which was realized in high sulfate concentrations. Drilling activity accounted for approximately seven percent of the total TDS concentrations detected in the Monongahela River in October 2008 and decreased to less than one percent by December 2008. Increases in river flow rates and reductions in discharges from abandoned mines appear to be the most significant factors that contributed to the reductions in TDS concentrations between October and December 2008. Changes in TDS levels associated with restricting the discharges of drilling wastewater at municipal wastewater treatment plants along the Monongahela River were negligible compared to these other factors.

“The results of the Tetra Tech study clearly indicate that natural gas drilling activity contributed only minimally to the total TDS concentrations in the Monongahela River,” said Lou D’Amico, Executive Director of the Independent Oil and Gas Association of Pennsylvania and member of the Marcellus Shale Committee Executive Committee. “Natural gas development does create some wastewater in the form of salt water and the industry has a long-term plan to address treatment and disposal approaches in conjunction with the Pennsylvania Department of Environmental Protection.”

According to the U.S. Environmental Protection Agency, TDS in drinking water can be traced to a number of potential sources, including naturally occurring minerals in water, sewage, urban run-off, industrial wastewater, and chemicals used in the water treatment process, as well as the piping used to convey the water. TDS minerals are actually added to distilled drinking water in some commercial water operations for quality assurance and to enhance the taste.

In late summer/early fall 2008, PADEP began to detect unusually high levels of TDS at points along approximately 70 river miles of the Monongahela River, beginning at the West Virginia border to the confluence with the Youghiogheny River. During its investigation, PADEP suggested a number of possible sources, including the natural gas industry. In October 2008, PADEP directed municipal sewage treatment plants to reduce the amount of natural gas flowback and produced water received for treatment.

Tetra Tech reviewed a variety of flow and water quality data, including the U.S. Geological Survey Monongahela River gauges and PADEP’s comprehensive water quality data set, as part of its study. Tetra Tech found the daily and monthly average flow rates in October 2008 were much lower than historic flow rates. The DEP issued a drought watch in November 2008 and the U.S. Army Corps of Engineers minimized releases of water from reservoirs in the watershed per their drought release schedules in the same time period. PADEP’s water quality data showed that TDS concentrations were as high as 900 parts per million (ppm) in October 2008 and decreased to approximately 200 ppm in December 2008.

“The report concluded controlled drilling discharges to the river could occur without exceeding water quality limits during most of the year when low-flow conditions do not occur,” said Steve Rhoads, President of the Pennsylvania Oil and Gas Association and Marcellus Shale Committee Executive Committee member. “This is supports the belief that Pennsylvania has ample drilling wastewater capacity for many years, while the industry develops and perfects other long-term solutions.”

The TDS found in the Monongahela posed no threats to health or safety, but did cause some inconveniences for residential and industrial water customers. A long-term statistical trend analysis indicated that there has been no statistically significant difference in the mass loadings of TDS in the Monongahela River over the past seven years.

Marcellus Shale Committee Continues Advertising Campaign

Print Advertising

Radio Spots

May 6, 2009

Pittsburgh - The Marcellus Shale Committee, an organization dedicated to the responsible development of Pennsylvania’s natural gas resources contained in the Marcellus Shale formation, is continuing its comprehensive advertising campaign that focuses on print, online banner, radio, and billboard advertising with a new ad highlighting jobs created by the natural gas industry.

“Pennsylvania’s natural gas producers continue to provide opportunities across the Commonwealth by harvesting a clean-burning energy source that is making the state a leader in developing home-grown energy,” said Rich Weber, Co-Chair of the MSC and President of Atlas Energy Resources.

“More than 26,000 men and women are currently employed by the natural gas industry in Pennsylvania,” said Ray Walker, MSC co-chair and Vice President of Appalachia Shale for Range Resources. “This industry can also generate tens of thousands of good jobs in the Commonwealth as we grow and expand our businesses.”

The advertising campaign, which began in February with a message about energy independence, will target 21 Pennsylvania counties where the presence of natural gas drilling is strongest. Advertising will be focused in Allegheny, Armstrong, Bradford, Butler, Centre, Clearfield, Clinton, Elk, Fayette, Dauphin, Greene, Indiana, Lackawanna, Luzerne, Lycoming, Sullivan, Somerset, Susquehanna, Tioga and Washington and Westmoreland Counties.

All advertisements will spotlight the Marcellus Shale Committee’s three primary messages: “Energy Independence,” “Jobs and Economic Prosperity,” and “Environmental Stewardship.” The advertisements will also focus on directing the public to the Committee’s website, pamarcellus.com.

Pa’s Oil And Gas Industry Focuses On Potential Of Natural Gas Development In Opposition To Severance Tax

March 16, 2009

HARRISBURG, Pa (March 16) – Representatives of Pennsylvania’s oil and gas industry expressed concern today about continuing calls for the imposition of a severance tax on natural gas extraction in Pennsylvania at this time, citing a number of factors that could combine to slow the development of the industry and the economic benefits it will provide across the Commonwealth.

Pennsylvania Oil and Gas Association President Stephen Rhoads urged caution in approaching any tax proposal that can influence investment decisions being made by exploration and production companies.

“In this economic environment, companies actively involved in the development of Marcellus Shale must carefully determine where their manpower, equipment and resources should be committed and operated for an extended period of time,” said Rhoads. “Pennsylvania is competing against states around the country for that investment, and a severance tax, imposed just as the industry is getting a foothold on this important shale development, will have a considerable negative impact on the state’s ability to compete with those states.”

“We must also be careful because a tax like this also could undermine the economic viability of the Commonwealth’s indigenous shallow gas industry,” Rhoads said. “All of Pennsylvania’s current production comes from economically marginal shallow wells. Producers operating these wells make a significant economic contribution to many rural Pennsylvania communities.”

Rhoads also emphasized the need to consider the efforts by the natural gas companies to work with communities and individual property owners regarding issues rather than attempt to mandate tax revenue be allocated to local governing bodies.

“Our industry works cooperatively with property owners and the communities in which we do business to provide compensation for equipment such as pipelines and support structure, doing so on a site-specific basis to understand and resolve concerns.,” he said. “Further, we have a strong track record and continuing commitment to repair and restore local roads that might be affected during the drilling process, building a relationship with local officials that typically results in improved road conditions and related facilities.

“More taxes are not the answer,” added Rhoads. “The number of onshore drill rigs in operation has decreased in the last year, and the price of gas, the availability of credit and the business environment faced by the drilling companies all will be factors in determining which states see drilling activity and the economic benefits it provides.”

The committee also presented information regarding comparisons being made by some organizations between Pennsylvania and West Virginia, which imposes a severance tax on natural gas extraction:

In the decade leading up to the year 2000, the number of wells drilled each year in Pennsylvania and West Virginia was nearly identical. Since that time, as natural gas prices trended higher, the number of wells drilled in West Virginia each year has been approximately half of the amount drilled in Pennsylvania.
The number of wells influences the number of workers employed. According to recent published reports, West Virginia supports 10,000 fewer jobs in the oil and gas industry than Pennsylvania, an employment rate that will continue to be influenced heavily by Marcellus Shale drilling activity.
Pennsylvania's shallow wells historically have produced smaller volumes of crude oil and natural gas, making them only marginally profitable. An additional tax on those shallow conventional wells, which are being drilled in many counties across the state, will have an extremely negative impact on that portion of the oil and gas industry.

The Pennsylvania Oil & Gas Association and the Independent Oil & Gas Association of PA:
The Pennsylvania Oil & Gas Association (POGAM) and the Independent Oil & Gas Association (IOGA) are the two principal non-profit trade associations of the Commonwealth's independent oil and gas producers. POGAM and IOGA promote the general welfare of Pennsylvania's crude oil and natural gas exploration and production industry. These two associations are committed to the economical and environmentally responsible development, production and use of the Commonwealth's crude oil and natural gas resources.

Marcellus Shale Committee Issues Statement on Severance Tax

February 4, 2009

The Marcellus Shale Committee (MSC) today released the following statement in response to a proposal to impose an oil and gas severance tax, as outlined in the Commonwealth of Pennsylvania’s fiscal year 2009-2010 budget address. A more thorough evaluation of this proposal will be conducted in the coming days, along with a more detailed response from the Committee.

“Pennsylvania is blessed with rich natural resources, including a potentially large natural gas field in the Marcellus Shale. Although the MSC strongly opposes a broad-based severance tax, especially while the development of the Marcellus Shale is in its infancy, the industry remains willing to work through the Commonwealth’s current financial challenges with the Governor and the legislature.

“The committee believes some of these challenges would be better addressed through an expansion of developing natural gas resources on state-owned land that would yield substantial immediate bonus payments and long-term royalty income for decades. This option would not only help create new jobs, it would also provide an immediate economic benefit that does not hinder growth and development, especially in these difficult macroeconomic times.

“While West Virginia may have a similar severance tax, West Virginia does not have the same regulatory challenges that exist in Pennsylvania. We strongly believe the Governor and the legislature want Pennsylvania to be a leader in the development of this important energy source. As such, it is essential to point to development models in Texas and Arkansas, two of the largest shale gas producing states. Both states have far more favorable tax approaches, and Pennsylvania is competing against these states for investment in equipment, technology and other aspects of natural gas development. The Marcellus Shale could provide an economic boost for the Commonwealth for many generations, but not if it is prohibited from developing through a hastily imposed severance tax.”

Marcellus Shale Committee Begins Advertising Campaign

Print Advertising

Radio Spots

The Marcellus Shale Committee, an organization dedicated to the responsible development of Pennsylvania’s natural gas resources contained in the Marcellus Shale formation, has launched a comprehensive advertising campaign. The campaign, which will focus on print, online banner, radio, and billboard advertising, will continue through August 2009.

“The natural gas industry is an integral part of the Commonwealth and will continue to provide economic opportunity and energy independence for many decades,” said Rich Weber, Co-Chair of the MSC and President of Atlas Energy Resources.

“By initiating a targeted advertising venture across the state, we intend to generate an awareness of the MSC and the overall importance of Pennsylvania’s natural gas industry,” said Ray Walker, MSC co-chair and Vice President of Appalachia Shale for Range Resources.

The advertising campaign will target 21 Pennsylvania counties where the presence of natural gas drilling is strongest. Advertising will be focused in Allegheny, Armstrong, Bradford, Butler, Centre, Clearfield, Clinton, Elk, Fayette, Dauphin, Greene, Indiana, Lackawanna, Luzerne, Lycoming, Sullivan, Somerset, Susquehanna, Tioga and Washington and Westmoreland Counties.

All advertisements will spotlight the Marcellus Shale Committee’s three main messages: “Energy Independence,” “Economic Prosperity,” and “Environmental Stewardship.” The advertisements will also focus on directing the public to the Committee’s project website, pamarcellus.com.

PA Marcellus Well Development Featured
on PCN Tours, Sunday, December 21

The Marcellus Shale drilling and production process was featured on Pennsylvania Cable Network’s “PCN Tours” on Sunday, December 21, 2008, at 8:00 p.m. The one-hour program highlights Marcellus Shale Committee member Range Resources of Washington, PA. Click here for a listing of cable systems in your area carrying PCN.

Please visit PCN Tour’s program Web site for updates on the specific dates and times this Marcellus Shale natural gas development segment will be re-broadcast in the future.

Pennsylvania’s Oil and Gas Industry Generates $7.1 billion in Statewide Economic Impact Annually, New Report Finds

Download a copy of the Economic Impact Study

Marcellus Shale Committee Formed to Address
PA Development of the Marcellus Shale

Committee will represent industry to regulators and government officials and implement public outreach

WEXFORD –The Pennsylvania Oil & Gas Association (POGAM) and the Independent Oil & Gas Association of Pennsylvania (IOGA) today announced the formation of a joint Marcellus Shale Committee (MSC). The committee will represent the oil and gas industry in Pennsylvania on matters pertaining to the acquisition, exploration, drilling, and development of the Marcellus Shale natural gas resource and present a unified voice before all state, county, and local government or regulatory bodies.

"Pennsylvania stands to gain significant economic benefits from the development of the clean natural gas present in the Marcellus Shale," said Rich Weber, Co-Chair of the MSC and President of Atlas Energy Resources. "With the potential for tremendous growth in this industry comes an immediate need for public information, policy review, and cooperative efforts among producers, state and basin regulatory agencies, landowners and citizens."

The committee's membership includes small independent producers with historical expertise in the Pennsylvania oil and gas fields and larger national companies dedicated to bringing their industry experience and resources to achieve common goals.

"We are working together to provide answers to Pennsylvania residents about the relatively new gas production operations," said Ray Walker MSC Co-Chair and Vice President of Appalachia Shale for Range Resources. "We are confident that the natural gas from the Marcellus shale formation can be produced in a safe manner that provides a reliable source of clean energy and protects Pennsylvania’s environment."

The MSC has an established Charter and receives its operational support from companies that make up the committee, as well as IOGA of Pennsylvania and POGAM.

The Marcellus Shale formation is an emerging source for natural gas in the country with potential reserves estimated to be as high as 50 – 200 trillion cubic feet (Tcf) and stretches from New York to West Virginia.

The Pennsylvania Oil & Gas Association and the Independent Oil & Gas Association of PA:

The Pennsylvania Oil & Gas Association (POGAM) and the Independent Oil & Gas Association (IOGA) are the two principal non-profit trade associations of the Commonwealth's independent oil and gas producers. POGAM and IOGA promote the general welfare of Pennsylvania's crude oil and natural gas exploration and production industry. These two associations are committed to the economical and environmentally responsible development, production and use of the Commonwealth's crude oil and natural gas resources.

Marcellus Shale Coalition Releases the Facts on Flowback Water Treatment

Marcellus Shale Coalition Applauds DEP Staff Increases, Supports Clear and Workable Regulations