Interest soars across state in Marcellus Shale drilling

In Centre County, permits up; number of wells stays same

Ford Turner

Susquehanna County is "inundated."

That was the word chosen by MaryAnn Warren, a county commissioner, to describe Marcellus Shale natural gas exploration in the county, situated in one of the busiest drilling areas in the state.

“Susquehanna County is inundated with drilling, fracking, water trucks, residual waste trucks and more companies coming in,” Warren said. “People are going to get rich, but I am worried about our natural resources.”

State Department of Environmental Protection figures show the number of Marcellus Shale gas drilling permits issued statewide has more than tripled this year. About one-third of the permits have been issued for sites in the Northern Tier counties of Susquehanna, Bradford and Tioga.

Centre County also saw a dramatic increase in the number of permits issued, although little change in the amount of drilling going on. In 2008, eight gas-drilling permits were issued for sites in Centre County, with five wells actually drilled.

In 2009, the number of wells drilled remained at five, but 71 permits have so far been issued for sites in Centre County.

Stephen Rhoads, president of the Pennsylvania Oil and Gas Association, said Wednesday that the Marcellus “play” in Pennsylvania is still in its infancy. He said the limited permitting and drilling statistics compiled to date are not

sufficient to show a trend, although he expected to see an increase in the number of permits and the number of wells drilled.

DEP-issued drilling permits are valid for one year, and can be renewed.

“You are permitting more than you are going to drill,” Rhoads said of gas companies. “You look at what you anticipate to do in the next year or two.”

The gas-rich Marcellus Shale layer runs under much of Pennsylvania. Recent improvements in technology, such as horizontal drilling and water-intensive hydraulic fracturing or fracking, have led to a boom in natural-gas drilling.

The Northern Tier has been at the center of the action this year.

Through September, 575 of the 1,340 permits issued statewide were for sites in Susquehanna, Bradford and Tioga counties.

Warren said her county lacked the infrastructure to handle the influx of out-of-state manpower and equipment.

“We don’t have the hotels to put all these people up,” she said. “Everywhere you go, you see more water trucks.”

Three chemical spills occurred at one Susquehanna County well site in September. The DEP ordered Cabot Oil and Gas to stop its use of hydraulic fracturing at certain sites. The agency lifted the order when the company submitted new prevention plans and an engineering study, and the DEP imposed more than $50,000 in fines on the company.

Meanwhile, job opportunities have mushroomed around the wells, Warren said.

Gas companies have brought in their own engineers and well experts but are training local “apprentices” to work under them, she said. County machinists, welders, gravel haulers and truck drivers are getting work.

Some residents, she said, have purchased water-hauling tanker trucks and subcontracted themselves to companies. Others have started “chuck wagons,” using trucks to drive from well site to well site, selling food, hot sandwiches, hats, earmuffs and chewing tobacco.

“The entrepreneurs are coming out of the woodwork,” she said.

Kim Barnes, deputy director of the Northern Tier Regional Planning & Development Commission, said the agency has fielded questions from small businesses looking to get in on the action.

“Some people are looking for things to fall out of the sky,” she said. “It is not going to happen unless you do your homework.”

Some residents have the perception that the gas companies are sticking with their own out-of-state workers, Barnes said, but that perception is likely to change.

“As we train our people to their needs,” she said, “then you will see the transition over to a local work force.”