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EPA agrees to settle violations at water treatment plants in Venango, Indiana counties

Written by Don Hopey / Pittsburgh Post-Gazette on . Posted in Archives

The U.S. Environmental Protection Agency has agreed to settle water pollution violations at three treatment plants in Indiana and Venango counties that discharge wastewater from Marcellus Shale gas drilling into the Allegheny River watershed.

 

The EPA assessed a total of $83,000 in penalties against the wastewater treatment plants, owned by Hart Resources Technology Inc. and Pennsylvania Brine Treatment Inc., which recently merged into a new company, Fluid Recovery Services LLC.

 

According to an EPA news release issued Wednesday, the new company must also spend as much as $30 million to upgrade its three treatment facilities to comply with more stringent wastewater discharge standards that will be contained in new Clean Water Act discharge permits that must be issued by the state Department of Environmental Protection.

 

The illegal wastewater discharges occurred prior to September 2011 in streams flowing into the Allegheny River, which is a public drinking water source for numerous communities including the city of Pittsburgh.

 

The settlement is open to public review and comment for 40 days. It can be found at: http://www.epa.gov/reg3wapd/public_notices.htm#hartpabrine

 

Don Hopey:  This email address is being protected from spambots. You need JavaScript enabled to view it.  or 412-263-1983.

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Science panel to scrutinize shale gas drilling

Written by Don Hopey / Pittsburgh Post-Gazette on . Posted in Archives

A National Academy of Sciences committee will review a host of risks and public concerns associated with shale gas drilling operations nationwide -- what's known and much that isn't -- during a two-day workshop starting next Thursday and Friday in Washington, D.C.

 

Presentations at the gathering will focus on air and water pollution -- and the health, economic, social and climate change impacts of shale gas development -- but will stop short of making recommendations about how best to manage and mitigate them.

 

"This review will be successful if the current state of knowledge about shale gas drilling is clarified and the uncertainties identified so we have better understanding and insights to help manage the risks," said Mitchell Small, the NAS committee chair and Carnegie Mellon University professor in the Department of Civil and Environmental Engineering. He will moderate a discussion this morning on a survey of concerns about lesser-studied drilling issues including impacts on rural quality of life, domestic animals, industry transparency and social justice.

 

Paul Stern, director of the review and senior scholar with the academy's Board on Environmental Change and Society, said the review's goal is to pull together the best available information for use by national and state policymakers.

 

"This is a big picture look at what's next," Mr. Stern said. "It would be great if we were asked to take the next step, to study and make recommendations about how to proceed, but this will provide a stronger knowledge base for upcoming public policy debates."

 

The academy was established in 1863 to investigate, report and make recommendations on scientific issues that are part of public policy debates. But neither the Obama administration nor Congress has asked for, or funded, a full-blown study with recommendations on how best to regulate the risks of so-called "unconventional" shale gas development using hydraulic fracturing, or "fracking," which injects millions of gallons of water, chemicals and sand thousands of feet underground to break up shale formations and release the gas and oil they hold.

 

In Canada, such a full investigative study is underway by the Council of Canadian Academies, with policy recommendations expected in December.

 

Mr. Stern said a limited set of risks is getting attention in the U.S. -- the Environmental Protection Agency has been actively monitoring water issues, for example.

 

But other issues -- such as air quality, public health, climate change, and the "safety culture" of the drilling industry -- have not been adequately studied.

 

Bernard Goldstein, emeritus professor and dean at the University of Pittsburgh's Graduate School of Public Health, said there's a lot that's unknown about the impact of shale gas development activities on public health, and Pennsylvania's failure to allocate any funding to study health impacts from the $180 million a year in impact fees it collected from gas drillers doesn't help.

 

"Seventeen state agencies, departments and commissions got impact fee funds but not a penny went to the state Department of Health," said Dr. Goldstein, who is scheduled to moderate a NAS committee panel Friday morning on community health risks. "That's part of the industry's transparency issue."

 

"I may not have proof that shale gas development is causing health problems, but there's a lot of people out there who have gotten unhealthy and are absolutely sure drilling is the cause. We need to find out what is really happening," he said.

 

A second NAS workshop on "risk governance" -- the capacity and inclination of federal and state governments, local municipalities and the industry itself to identify, address and control risks -- is scheduled for August.

 

"Right now we have a patchwork governance system," Mr. Stern said. "And the question is, what can we expect from that?"


Correction, posted May 23, 2013: The dates on which the workshop will have held have been corrected.

 

Don Hopey:  This email address is being protected from spambots. You need JavaScript enabled to view it.  or 412-263-1983.

 

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Times-Tribune: DEP records show drilling damaged 161 water supplies

Written by Andrew Gretchko on . Posted in Archives

According to a cache of nearly 1,000 letters and enforcement orders written by the Department of Environmental Protection, which were uncovered by the Scranton Times-Tribune’s Sunday Times, the water supplies for at least 161 Pennsylvania homes, farms, churches and businesses were damaged by oil and gas development between 2008 and the fall of 2012.

From the paper's Laura Legere: “Inspectors declared the vast majority of complaints -- 77 percent of 969 records -- unfounded, lacking enough evidence to tie them definitively to drilling or caused by a different source than oil and gas exploration, like legacy pollution, natural conditions or mining." The story comes after months of recent reports on water contamination fears.

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Chesapeake Energy selects Robert Douglas Lawler as CEO

Written by Erich Schwartzel on . Posted in Archives

Chesapeake Energy has tapped an executive with experience in the Marcellus Shale region as its new chief executive officer.

Robert Douglas Lawler, a petroleum engineer who was most recently an executive at Texas-based Anadarko Petroleum, will lead the Oklahoma City company starting June 17.

Mr. Lawler, 46, inherits a company with significant holdings in Pennsylvania and surrounding states, but one that has been troubled by shareholder disapproval over how it has handled those assets.

Mr. Lawler most recently served as the senior vice president in charge of Anadarko's international and deepwater operations, and before that headed up the firm's work in Appalachia.

As the vice president of operations for Anadarko's southern and Appalachian region from March 2009 to July 2012, he led the development of company holdings in the Marcellus Shale and three other domestic fields.

Anadarko was one of the earliest drillers in the Marcellus formation, concentrating its activity since 2006 in Pennsylvania's gas-rich northeast corner.

Chesapeake leases significant acreage in the southwestern section of the state. It remains the top driller in Ohio's Utica Shale, though it put more than 94,000 acres there up for sale in April. The company has been divesting of hundreds of thousands of acres in recent months as it tries to raise cash following a shareholder revolt in 2012.

Stock prices fell after a controversial loan program involving Chesapeake co-founder and former CEO Aubrey McClendon raised questions about how the firm was raising money. Mr. McClendon stepped down as CEO and left the board in April after an internal review of his conduct found nothing improper.

Mr. Lawler also will take a place on Chesapeake's board, but he will not be chairman like Mr. McClendon was for much of his tenure.

Chesapeake shares closed at $20.80 on Tuesday, up 53 cents.

Erich Schwartzel:  This email address is being protected from spambots. You need JavaScript enabled to view it.  or 412-263-1455.

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Foreign companies join in U.S. project to export natural gas

Written by Stanley Reed / The New York Times on . Posted in Archives

LONDON -- In a sign that the United States shale gas boom is making global waves, two Japanese conglomerates and a big French energy player signed agreements Friday to invest as much as $7 billion in a liquefied natural gas project in Louisiana.

The companies -- Mitsui and Mitsubishi of Japan and GDF Suez of France -- each plan to take a 16.6 percent stake in the gas export plant being developed at Hackberry, La. The complex is being built by Sempra Energy, a San Diego-based company with annual revenue of about $10 billion. The companies agreed last year to help develop the project.

GDF Suez predicts that the plant will begin operations in 2017. It said the companies' final decision to make their investment will depend on the project's receiving necessary permits.

International companies -- responding to a ravenous global appetite for natural gas, particularly in Japan and Europe --want access to shale gas from the United States, which has emerged as an important new source over the past few years. But because the United States has only recently shifted from being a gas importer to being self-sufficient in the fuel, the government has not yet agreed to allow exports, except in a few cases and to the 20 nations with which it has free-trade agreements, including Panama and Costa Rica.

Export approval, under Energy Department consideration for several projects, will be necessary before the potential of shale gas can be realized fully. On Friday, the department approved a Texas project called Freeport LNG. It has also signed off on a facility being built by Cheniere Energy at Sabine Pass in Louisiana that is expected to start exporting in 2015.

But international companies are investing all the same, betting that U.S. shale gas will eventually be able to go onto the global market.

In a statement, Sempra Energy estimated that the foreign partners would be putting up $6 billion to $7 billion, in return for just under half the equity in the project, which is forecast to yield 12 million metric tons of liquefied natural gas annually for 20 years. In return, they will receive all the gas. Sempra will retain a stake of just more than 50 percent.

"These agreements represent a major step forward in the development of our LNG export project," Sempra's president, Mark A. Snell, said in a statement.

For international players, the attractions of U.S. shale gas are the large potential volumes and the relatively low cost of extracting it. Other foreign companies that have lined up U.S. supplies include the Korean company Kogas, Sumitomo of Japan and BG Group, the British-based company that is a big player in the liquefied natural gas business.

Natural gas prices in the United States are now about $4 per million British thermal units, the industry's standard measure. European-traded prices are in the $10 per million BTUs range, with Asian prices about $15 per million per BTUs. Long-term contract prices are often higher, and liquefication adds to the cost over plain gas.

Japan's liquefied natural gas imports have surged after the nuclear power shutdown in the wake of the Fukushima disaster and were up by 11 percent last year. Japanese imports account for about one-third of the world's total liquid gas market, according to a recent study by Bernstein research. Japanese utility executives have said they want to reduce the prices they are paying by tying them to U.S. supplies.

"It is a win-win situation," said Fadel Gheit, an analyst at Oppenheimer in New York. Such deals will help stabilize global fuel prices over the long term and benefit the U.S. economy, he said.

A big worry in the industry is whether U.S. exports could contribute to lower prices around the world, eroding profits. "It will give buyers a choice, something they have never had before," said Jonathan Stern, gas program chairman at the Oxford Institute for Energy Studies.

But industry executives think that surging demand, especially from Asia, will easily absorb the exports the U.S. government might eventually permit. U.S. gas "won't have a material effect on long-term pricing," Martin Houston, BG's chief operating officer, said in a recent presentation on the company's website.