2/20/2013: Allegheny County Council approves drilling on Pittsburgh International Airport land; Japan seeks shale exports from U.S.
Pittsburgh International Airport drilling contract OK'd - "County council voted in favor of accepting a contract from Consol Energy to drill for natural gas in the 9,000 acres surrounding the airport, a deal that proponents say could bring nearly $1 billion to the area.But that came over the objections of four council members, some of whom voiced concerns about the deal's high velocity through council. And it certainly was not favored by the dozen-odd residents who showed up in masks and with placards to protest shale drilling, saying the county hasn't given thought to long-term risks. "I'm not completely convinced that we've done what we've needed to do in the short amount of time we've been given," said council member James Burn Jr., D-Millvale. He joined Barbara Daly Danko, D-Regent Square; Amanda Green Hawkins, D-Stanton Heights; and William Robinson, D-Hill District, in voting against the contract. Victory went to members such as Robert Macey, D-West Mifflin, who held aloft the banner of jobs. His constituents in former steel towns are tired of losing their careers, he said. He is not going to deny them the chance to work again. "There are so many jobs that are related to this in my neck of the woods, and I haven't heard of one person who has told me to vote against this," he said. "I'm voting for this because it means a heck of a lot to our communities." County officials point to the $450 million in royalties Consol is expected to pay over the next 20 years, as well as the extra $500 million the company plans to invest in drilling-related infrastructure. By Federal Aviation Administration regulation, any proceeds must go toward the airport, so county officials hope to use revenues to fuel economic development within the 9,000 acres and to pay off airport debt." (Post-Gazette)
Pa. DEP chided at hearing on drilling - "Anger and frustration and jugs of orange-brown tap water were on display at a state House committee hearing in Washington County on Tuesday, where rural property owners and environmental advocates said the state Department of Environmental Protection is failing to enforce Marcellus Shale gas regulations and seriously damaging the environment and their health...Mr. Lauff, an analytical chemist and biologist, testified that DEP told him his water was OK to drink, and air pollution complaints went unaddressed. But testing by the U.S. Environmental Protection Agency found several water contaminants linked to nearby well drilling, and independent air tests found a variety of volatile organic compounds and carcinogens, including benzene, toluene and ethylbenzene."The DEP should not be the gas industry's friend and protector," said Mr. Lauff, who, along with his family, has tested positive for several of the chemical compounds. "DEP needs to be accountable for its actions and inactions."...state Rep. Jesse White, D-Cecil, requested the hearing and recently introduced legislation that would require the DEP to fully discloes water testing results requested by landowners who suspected that their drinking water wells have been contaminated by Marcellus Shale gas drilling operations... The department did issue a written statement during the hearing that said: "DEP's attention is focused on our core mission of protecting the environment, not wasting time on political theater. When our staff and the Secretary are invited to legislative hearings and other meetings that are productive and professional, and are arranged to further the discussion on critical issues, we are willing to attend. As Rep. White is aware, we have communicated with him at length on this issue, including through two letters in November." (Post-Gazette)
Japan seeking shale exports from U.S. - "Japanese Prime Minister Shinzo Abe will ask U.S. President Barack Obama to allow shale gas exports as the world’s third-largest economy grapples with soaring energy costs after 2011’s nuclear disaster closed reactors.The request will be made at a Feb. 22 meeting between Abe and Obama in Washington, said three Japanese officials, who declined to be identified because the information isn’t public. The bill for importing liquefied natural gas, combined with a weaker yen, prompted Japan to post a record trade deficit in January of 1.63 trillion yen ($17.4 billion), the Finance Ministry said today.The switch from nuclear to gas-fired generation after the accident at Fukushima forced Japan to increase LNG imports 11 percent last year. Abe wants Obama to share the benefit of surging output from shale fields, which has depressed the cost of U.S. gas to about 20 percent of Asian prices, by approving export terminals. Some U.S. politicians oppose shipments overseas because the lower energy costs are making manufacturers more competitive, helping to create factory jobs.Japan is the world’s largest importer of LNG, gas cooled to to a liquid for shipment by tankers, and Cargoes from North America would allow it to diversify from suppliers in Asia and the Middle East. Tokyo Electric Power Co., Japan’s largest utility, Chubu Electric Power Co. and trading company Sumitomo Corp. all have agreements to buy LNG from proposed export plants that have yet to win government approval....The U.S. has only approved one export plant for shipments to countries to without a free-trade agreement. Cheniere Energy Inc.’s plant at Sabine Pass is due to begin exports in 2015. The U.S. may ship about 50 million tons of LNG by the end of the decade, Royal Dutch Shell Plc Chief Executive Officer Peter Voser said last month. That compares with 77 million tons a year from Qatar, currently the world’s top exporter." (Bloomberg)
Lithuania backs Chevron's shale exploration - "Lithuania’s energy minister publicly restated support for Chevron Corp’s plans to explore for shale gas in the country following criticism of the project from a parliamentary committee earlier this month.Energy Minister Jaroslav Neverovic backed the project after meeting today with the head of Chevron’s Lithuanian representative office, the ministry in Vilnius said on its website. A parliamentary committee on Feb. 6 called for a moratorium on the project and an investigation into the local company that is 50 percent-owned by Chevron.Chevron, a U.S. energy company, last year bought 50 percent of LL Investicijos and in January submitted the only bid in a tender for shale-gas exploration rights in Lithuania....“The government has committed itself to undertake shale- gas exploration and, in the future, after suitable preparations, to consider the issue of production,” Neverovic said. “We have to support new innovative opportunities to reduce the cost of the energy resources we consume.” (Bloomberg)



