The Tribune Democrat, Johnstown, PA

Editorials

November 14, 2010

Marcellus Shale: A boom at what cost?

Put severance tax, oversight on gas-well drillers

— There is no bigger issue in Pennsylvania – economically and environmentally – than the drilling for and extraction of Marcellus Shale natural gas.

Some have called this an opportunity for an industry boom not seen since the heydays of coal and steel.

Others warn that Marcellus Shale could leave as deadly a legacy as those industries in the form of tainted water and scars on the land.

One of the reasons we did not endorse Tom Corbett for governor is his stance against a severance tax for companies that are coming into Pennsylvania for the Marcellus gas.

A severance tax on the gas would set aside funding for infrastructure repairs that surely will come, and would provide a financial cushion should the unthinkable occur.

Now we call upon the governor-elect and other leaders of both parties in Harrisburg to convene a summit to publicly discuss the potential positives and negatives of this exploding industry, and take steps toward sound policy decisions rather than campaign rhetoric.

The gas companies are anticipating a friendlier environment for drilling with Republicans taking over the governor’s office and controlling the state House and Senate.

That could be a mix of good news and terrible news for the state’s residents.

While we applaud every effort to create jobs in the commonwealth, especially during a time of recession, we have seen here in our region the tragedy of uncontrolled industry. We need look no further than the orange streams and rivers that roll through the Cambria-Somerset region for a reminder of what happens when the system is out of balance.

Pennsylvania must consider both the economic and environmental aspects equally and simultaneously.

Here’s just a sampling of why:

* The Environmental Protection Agency has subpoenaed energy giant Halliburton, seeking a description of the chemical components used in the drilling technique known as hydraulic fracturing. Halliburton has refused to voluntarily disclose the chemicals used in “fracking.” That refusal should terrify us all. The EPA is studying whether fracking negatively affects drinking water and the public health. The agency should look closely at ...

* ... the town of Dimrock, Pa., where residents say their water has been ruined by methane leaked by a drilling operation run by Cabot Oil & Gas Corp. Folks in Dimrock say the water causes a painful rash. A $12 million project will extend municipal water from a neighboring town to Dimrock. Cabot has denied responsibility for the polluted water wells.

* The state police last week reported that three out of every four trucks hauling gas-drilling wastewater were cited for violations. Citations were issued for 1,066 of the more than 1,400 trucks inspected by the Department of Environmental Protection from Oct. 25 to 27. More than 200 trucks and 50 drivers were taken out of service. “These inspections are crucial because they ensure that wastewater haulers are working to comply with the commonwealth’s environmental regulations and are keeping our roadways safe for other drivers,” DEP Secretary John Hanger told The Associated Press. “Taking the time to do so now will go a long way toward making a positive difference as drilling continues.”

And continue it will.

Marcellus Shale is a huge mineral deposit that lies beneath Pennsylvania and our neighboring states that has been called the Saudi Arabia of natural gas.

Now that technology has been developed to allow companies to reach the gas deposits – some five miles below the surface – companies are flocking here from Texas, Oklahoma and elsewhere to get at the hidden wealth.

Indeed, Chief Oil & Gas of Texas said it now extracts 100 million cubic feet each day in the Marcellus region. Chief – one of many such companies – has some 93 wells on 600,000 leased acres in Pennsylvania, West Virginia and Maryland – and is still expanding.

On Wednesday, fuel giant Chevron announced plans to purchase Atlas Energy Inc. for $4.3 billion. Atlas, based in Moon Township, is a major player in our state’s Marcellus drilling industry.

We must attempt to get our arms around this situation now – hoping that it’s not already too late.

The voices of the environmentalists must be heard, not simply discarded as radical and anti-business.

Yes, Marcellus Shale is already creating jobs in our region and across the state. The potential is there for huge economic benefits.

But we must also protect the environment, and build our defenses against what could happen.

Thanks to Marcellus Shale, Pennsylvania’s future could be very bright – or dismal.

Our state leaders can shape that future through reasonable regulations and a severance tax – and perhaps other measures.

Those leaders must come together now to make these important decisions for the people of Pennsylvania.

Either way, the results will be on their heads.

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