Sen. Bob Casey wants fracking disclosure exemptions repealed for oil, gas industry.

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer

SCRANTON – U.S. Sen. Robert Casey returned to his hometown Thursday to extol the economic benefits of a present-day “gas rush” and, recalling the devastating effects of coal mining on the environment, called for more safeguards and federal oversight of natural gas drilling to prevent a “repeat of the mistakes of the past.”

The Democrat from Scranton joined five other panelists at a forum convened at Marywood University to discuss the opportunities and challenges presented by development of the Marcellus Shale.

Noting that nearly 600,000 Pennsylvanians are unemployed and 70 percent of the workers employed at Marcellus Shale drilling sites are not state residents, Casey said his Marcellus Shale On-the-Job Training Act would fund training programs to help ensure gas drilling jobs go to Pennsylvanians instead of out-of-state workers.

Recalling a well blowout in Clearfield County in June, Casey said a proper emergency response plan was not in place. His Faster Action Safety Team Emergency Response Act would authorize additional regulations to enhance response procedures as gas and oil wells, he said.

His Fracturing Responsibility and Awareness of Chemicals Act, Casey said, would repeal some exemptions for the oil and gas industry and require disclosure of all chemicals used in hydraulic fracturing – the process of injecting millions of gallons of water with sand and chemicals added into a well bore to stimulate the release of natural gas.

“Pennsylvanians have a right to know what is being injected in the ground. … The intent is not to stop hydraulic fracturing. This is about disclosure,” Casey said, noting that the ingredients of Coke and Pepsi are listed on cans and bottles without revealing “their secret formula.”

“If the chemicals … used in the hydraulic fracturing process are not harmful and cannot compromise health and safety or contaminate drinking water, … why can’t we shine the light of disclosure on that process?” Casey said to applause from the audience.

Boosting Pa. economy

Forum panelist Kathryn Klaber, president and executive director of the Marcellus Shale Coalition, detailed how the gas drilling industry is creating jobs and boosting local economies, making special note of the steel and rail industries in the state.

She also addressed how the industry is working to safeguard public health and the environment and noted that the industry supported the state Department of Environmental Protection significant increase of permit fees to fund the hire of more oil and gas inspectors.

Klaber said the industry is increasing well wastewater recycling; already more than 60 percent is being recycled.

And, she said, the sharing of information between energy companies about best practices is increasing and hydraulic fracturing companies already have a listing of all chemicals used in material safety data sheets at drilling sites.

Timothy Kelsey, a professor of agricultural economics at Penn State University, spoke about the potential economic benefits of Marcellus Shale exploration.

He said a natural gas well can produce royalty income of $2.25 million to $2.8 million over the life of a well but noted that local investment decreases over time as well production declines.

“The lion’s share of the royalty income from each well will occur in the first seven years,” Kelsey said. “So when the drilling is going on, it’s critical that the community think about future.”

Kelsey said research shows that communities with a lack of trust in leadership are no better off following an energy boom than they were before, but those that have strong local leadership and “entrepreneurial support systems” in place fare better.

“Community focus needs to be on the future after the boom, not just the present. Use the Marcellus as a means to improve the economy, social organization … infrastructure. It is not an end in itself,” he said.

State park drilling

John Quigley, secretary of the state Department of Conservation and Natural Resources, said more than half of the commonwealth’s state parks are potential natural gas drill sites.

Of the 28 million acres in the state, Quigley said at least 7 million acres are leased for land drilling. The state House passed a resolution putting a moratorium on new large-scale leasing, but the bill has not come up in the Senate.

“We need to draw the line and say enough is enough,” Quigley said.

Quigley said there are currently 10 gas-producing wells on state forestland. Over the next 10 years, that number likely will increase to 6,000. “Add to that 1,000 miles of roadway, pipeline, gathering line … it’s very clear that the environmental impacts will be enormous,” he said.

Quigley also promoted a severance tax on natural gas extraction proposed by Gov. Ed Rendell.

“This is low-cost, high-profit gas any way you slice it. … And facing the imposition of a severance tax, this industry’s not going anywhere. It’s the most productive play in the world. This industry is not going to be taxed out of the state by the very, very reasonable proposal the governor has put in place,” Quigley said.

Jennifer Hoffman, manager of the Susquehanna River Basin Commission’s Monitoring and Assessment Program, explained how the commission is regulating water use by the drilling industry, assuring the audience that commission regulations ensure waterways will not be negatively impacted by industry water withdrawals.

She also detailed a water-monitoring network in place in drilling areas throughout the basin.

Jeanne VanBriessen, director of the Center for Water Quality in Urban Environmental Systems at Carnegie Mellon University, said the technology is available for officials and regulators to manage the water consumption and wastewater treatment needs of the gas drilling industry while protecting the environment.

“The question I have for you, for our government and our regulators is: Will we?” VanBriessen said.

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