Saturday, December 18, 2010

Comment and Info on NY Marcellus Shale Drilling

My firm represents ANGA (America's Natural Gas Alliance).  I'm a conservationist, dedicated outdoorsman who hunts, fishes and camps a lot.  I'm also a very involved Boy Scout leader.   Before we took ANGA on as a client I did a lot of independent research including speaking to independent hydrogeologists, engineers and the President of SUNY ESF.  I've been on rig tours in PA and researched news accounts of alleged contamination extensively.  I'm comfortable in our choice to represent ANGA and have confidence in the technology.

First, hydrofracing has been in use in the U.S. for 60 years.  It's track record over time has been excellent.   In NY there are already over 13,000 straight line and/or low volume hydrofraced wells.  There has been one surface spill that was reclaimed since 1971.  DEC has done an excellent job in its regulatory oversight.

What is currently at stake in NY is an expansion of the volume of fracing fluid that is authorized for use, and permission to horizontally frac multiple drill lines from a single well head.   This reduces the surface footprint substantially.   The horizontal fraced veins of gas are between 5,000 and 8,000 below the surface.  The average NY well is less than 300 feet.  Their waters sources are separated by 1000's of feet of impermeable bedrock and the water sources do not mix.  The dSGEIS document currently being reviewed by DEC is not an "if" document - drilling in NY already exists.  It is a "how" and "how much" policy document

The Marcellus Shale area, primarily the Southern Tier into the Catskills, is the second largest natural gas field in the world.  It is a gold mine, and could on its own power the nation from the Mississippi River to the Atlantic coast for a minimum of 50 years.  Many landowners, farmers, hunting clubs, businesses and local governments would make a substantial amount of money if this moves forward.

With regards to the fracing fluid - it is proprietary to the drilling companies (they are business competitors, after all), but nearly all have voluntarily agreed to disclose their "recipe" to regulators, and we expect DEC to require that.  It is over 99% water and sand; the rest is common materials also found in cosmetics, food, and pharmaceuticals.  The fracing fluid is necessary to release and channel the natural gas for extraction through minimal invasive fractures in the shale.

With regards to contamination - there have been surface spills that can be and are cleaned-up.  There has not been a casing leak in a drill shaft, ever, in NY.  There are no cases that I am aware of a modern drill casing leaking.  Again, DEC will require the most stringent standards, and the industry expects them to. 

I'm a lifelong NY'er with three kids.  I don't want to see our water contaminated, and I don't believe for an instant that they will be.

With regards to methane, benzine, etc.  These are naturally occurring chemicals in nature.  I was at a landowners meeting in Norwich with about 600 people earlier this year.  Nearly 10% could light their well water on fire due to methane content.  There are NO hydrofraced drills on those properties.  The sensationalism without scientific proof of "Gasland" has pulled at heartstrings but its claims don't past objective muster. 

In fact, some companies have found that in pre-testing before drilling, as many as 40% of landowners in some areas of PA find methane in their drinking water.   Companies haven't always pre-tested, so the "conclusion" in the past is that drilling caused the methane.  Now the companies do pre-test.   They won't drill on property with methane present because the trial lawyers will line-up to sue.  This naturally occurring phenomenon is now denying landowners lucrative leases for fear of frivolous lawsuits. 

The same goes for claims of radiation.  Everything has some degree of radiation.  Many have screamed about radiation of rock material drawn up when a drill is tapped.  That may in fact occur and is tested and dealt with.  Rock drawn up in wells in NY historically have less radiation than a cheeseburger from McDonald's. 

Water - It is a water intensive process, but it is a literal drop in the bucket for NY's water sources.  Natural Gas drilling is being done in Texas and Wyoming where you drive for hundreds of miles without seeing water.  I've spoken to many hydrogeologists and this is an unfounded concern to those who know best.

Waste Water - It can and will be treated at waste water facilities just like other industrial waste, sewage, pharmaceutical waste water, etc.  The industry pays for it and it is yet another financial benefit to local governments.

With regards to "Gasland".   This is a Michale Moore-esqe hit job that makes for great theater and alarm, but it's very short on actual facts or science based proof.  I encourage you to extend your research past Hollywood sensationalism. 

Last, the process:  The actual drilling process takes 6-8 weeks during which many trucks and water tanks will be on site.  After that, a small single wellhead is left on about a 1/4 acre with a minimal industrial humming noise intrusion.  The land is reclaimed and replanted to original or better condition.   Roads are often completely rebuilt to company specifications for their occasional trucks - usually far exceeding local government standards. 

Will it interrupt hunting?  Generally no, and you may wish to address this in your lease if NY allows this to move forward.  After the drilling is done and the wellhead is established I would consider the interruption to be nil.

Bottom line, this is the only industry that is readty to go - right now - and doesn't want a tax break, Empire Zone, PILOT agreement or anything else.   The industry has asked DEC to dramatically increase the permit application fee to ensure proper funding for regulatory staffing.  State officials response so far: "We can't dedicate funds".  This, of course, is false.  The state legislature would love the revenue but wants first crack at it's use. 

This is an emotional issue for many.  I firmly believe that much of the emotion is due to false and misleading information by environmentalists that are not our friends on drilling any more than they are on hunting.  The opposition is extremely well funded out of NYC and have done their job well.  They are a tough foe.  Their alarm can be sounded in 10 seconds (Don't ruin our water!).  My explanation just took 20 minutes to type.  I have an obligation to be correct based on facts.  My opponents have no such limitation.

Finally, please visit this website that my company manages.   It can help shed some more light on information regarding natural gas drilling:  http://www.friendsofnaturalgasny.com/

I hoped this has helped.  There will be those that disagree.  If you want to continue the discussion all I ask is that you come armed with facts. 

---Ray Merlo
for America's Natural Gas Alliance

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