Wyoming County Landowners Group

The Wyoming County Landowners Group has rescheduled its natural gas lease signing session for only Thursday, Sept. 18 and Friday, Sept. 19. Residents in these municipalities are represented: Braintrim Township, northwest corner of Eaton Township, Forkston Township, Mehoopany Township, Meshoppen Borough, Meshoppen Township, Monroe Township, Noxen Township, Washington Township and Windham Township.

The signings are scheduled to be held at Shadowbrook Inn & Resort. The signing session scheduled for today, Sept. 17, has been canceled.

Also, here's a link to a Wyoming County Press Examiner article that details water withdrawals in Wyoming and Susquehanna counties approved by the SRBC last week:

http://www.newage-examiner.com/site/index.cfm?newsid=20123541&BRD=2310&PAG=461&dept_id=480505&rfi=8

Energy Information Administration report

Below is information from a Sept. 11 Energy Information Administration report. The report covers Sept. 3 to 10.


The report can be found at, http://www.eia.doe.gov/oil_gas/natural_gas/info_glance/natural_gas.html

Natural gas spot prices increased at most market locations in the Lower 48 States this report week (Wednesday–Wednesday, September 3-10) when Hurricane Ike moved closer to the U.S.

Mandatory evacuation orders in some areas were issued. In Louisiana, mandatory evacuation orders led to the shutdown of at least two processing plants, with a total of 700 million cubic feet (MMcf) per day of processing capacity.

According to the report, prices decreased in the Northeast with mild temperatures. The administration says in the report that the availability of natural gas in storage in the eastern part of the United States stands at 6.3 percent, above the 5-year average. The administrations says that the storage capacity indicates strong supply conditions.


On a separate note, the Wyoming County Landowners Group is holding a signing Wednesday through Friday at Shadowbrook Inn & Resort. Apparently, the signing will be for people who live in the western part of the county.

Another side note: www.pagaslease.com reports leases have been signed at as much as, $4,000. This is the link: http://www.pagaslease.com/lease_tracking_2.php

Chesapeake Energy

Chesapeake Energy publishes a newsletter quarterly for its divisions.

On Monday, I received a newsletter for the eastern division.

Titled 'Community Ties,' the newsletter is a, 'quarterly publication from Chesapeake Energy Corporation for the benefit of community leaders.'

Though I'm not a community leader (just a reporter by anyone's account so was surprised to get the newsletter!), I was glad to receive the newsletter, which highlights the company's contributions to communities located in its eastern division, including NEPA and the Southern Tier.

The newsletter is an example of how Chesapeake attempts to put out its story, unfiltered and from its point of view. It's pr.

For instance, the company says that it will be the sponsor of the "D&H Distance Run" this fall in Susquehanna County.

(Expect sponsoring of more community events by Chesapeake and other companies)

Chesapeake has also, "partnered with the Pennsylvania State University Extension Service to address questions and concerns," according to the newsletter. "Many parts of Pennsylvania and New York have experienced natural gas exploration, and Chesapeake wants to be a leader in providing accurate, balanced information to landowners and
community leaders," the newsletter states.


Chesapeake has set up a hotline for royalty owners. The call center number is, 1-877-CHK-1GAS. It is open Monday through Friday from 8 a.m. to 5 p.m.

Articles and more

Here's an article that recently appeared in the International Herald Tribune about the natural gas industry potential to provide home brewed energy---- http://iht.nytimes.com/articles/2008/08/25/business/gas.php.


The other day, Stacey Solie reported in the Scranton Times Tribune that Chesapeake Energy has asked Abington Township to treat wastewater. The treatment of wastewater has been discussed elsewhere in the region. In Tunkhannock, the Tunkhannock Borough Municipal Authority was also approached about treating wastewater. The TBMA, however, does not process wastewater.

In Susquehanna County, commissioners have discussed the issue, as well.

Stacey's article is at, http://www.scrantontimes.com/articles/2008/09/09/news/sc_times_trib.20080909.a.pg5.tt09abington_s1.1932950_loc.txt


Article on another natural gas in Susquehanna County Independent/Weekender (Times Shamrock) at this link:
http://www.independentweekender.com/site/index.cfm?newsid=20114002&BRD=2279&PAG=461&dept_id=467076&rfi=8

Court hearing, gas linke

The Times Tribune natural gas blog is listed as a resource at http://conserveland.org/pp/naturalgas. The site belongs to the Pennsylvania Land Trust Association.

Also, a hearing is scheduled for Sept. 16 in Scranton in federal court. The hearing stems from a lawsuit filed by Susquehanna County landowners against Cabot Oil and Gas
Corp. The landowners hope to nullify their contracts with Cabot.

According to court documents, the landowners claim in part that Cabot land men told them that they would never get more than what was being offered at the time. The landowners signed leases for, $25, $50 or $100 an acre.

The landowners are also claiming their contracts are void because the agreements with Cabot violate a state law that stipulates landowners are supposed to receive at least a 1/8 royalty.

--By Josh Mrozinski

SRBC meeting agenda

Susquehanna River Basin Commission
Notice of Commission Meeting and Public Hearing
DATE: September 11, 2008
LOCATION: Bucknell University, Elaine Langone Center, Center Room
Lewisburg, Pennsylvania
TIME: 1:00 p.m.

Agenda includes:

---- Consideration of a proposed rulemaking action regarding consumptive use by gas well development projects
---- A report on the present hydrologic conditions of the basin


Public Hearing – Natural gas well water withdrawal projects scheduled:

1. Project Sponsor and Facility: Chesapeake Appalachia, LLC (for operations in Chemung and Tioga Counties, N.Y., and Bradford, Susquehanna, and Wyoming Counties, Pa.). Application for consumptive water use of up to 2.075 mgd from various surface water sources and the following public water suppliers: Towanda Municipal Authority, Aqua Pennsylvania, Inc. – Susquehanna Division, Canton Borough Authority, Borough of Troy, and Village of Horseheads, N.Y.

2. Project Sponsor and Facility: Chesapeake Appalachia, LLC (Susquehanna River), Town of Owego, Tioga County, N.Y. Application for surface water withdrawal of up to 0.999 mgd.

3. Project Sponsor and Facility: Cabot Oil & Gas Corporation (for operations in Susquehanna and Wyoming Counties, Pa.). Application for consumptive water use of up to 3.039 mgd from various surface water sources and the following public water suppliers: Tunkhannock Borough Municipal Authority, Pennsylvania American Water Company – Montrose System, and Meshoppen Borough Council.

4. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Susquehanna River), Great Bend Borough, Susquehanna County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

5. Project Sponsor and Facility: Chesapeake Appalachia, LLC (Susquehanna River), Athens Township, Bradford County, Pa. Application for surface water withdrawal of up to 0.999 mgd.

6. Project Sponsor and Facility: Chesapeake Appalachia, LLC (Susquehanna River), Oakland Township, Susquehanna County, Pa. Application for surface water withdrawal of up to 0.999 mgd.

7. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Susquehanna River),
Susquehanna Depot Borough, Susquehanna County, Pa. Application for surface water
withdrawal of up to 0.980 mgd.

8. Project Sponsor and Facility: Fortuna Energy Inc. (Susquehanna River), Sheshequin
Township, Bradford County, Pa. Application for surface water withdrawal of up to
0.250 mgd.

9. Project Sponsor and Facility: East Resources, Inc. (Crooked Creek), Middlebury Township,Tioga County, Pa. Application for surface water withdrawal of up to 0.036 mgd.

10. Project Sponsor and Facility: Chief Oil & Gas, LLC (for operations in Bradford County, Pa.). Application for consumptive use of water of up to 5.000 mgd.

11. Project Sponsor and Facility: Chief Oil & Gas, LLC (Sugar Creek), West Burlington Township, Bradford County, Pa. Application for surface water withdrawal of up to 0.053 mgd.

12. Project Sponsor and Facility: Fortuna Energy Inc. (Sugar Creek), West Burlington
Township, Bradford County, Pa. Application for surface water withdrawal of up to
0.250 mgd.

13. Project Sponsor and Facility: Chesapeake Appalachia, LLC (Susquehanna River), Wysox Township, Bradford County, Pa. Application for surface water withdrawal of up to 0.999 mgd.

14. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Unnamed Tributary to Meshoppen Creek), Dimock Township, Susquehanna County, Pa. Application for surface
water withdrawal of up to 0.980 mgd.

15. Project Sponsor and Facility: Fortuna Energy Inc. (Towanda Creek), Franklin Township,Bradford County, Pa. Application for surface water withdrawal of up to 0.250 mg

16. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Martins Creek), Lathrop Township, Susquehanna County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

17. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Tunkhannock Creek), Lennox Township, Susquehanna County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

18. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Meshoppen Creek-2), Lemon Township, Wyoming County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

19. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Meshoppen Creek-1), Lemon Township, Wyoming County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

20. Project Sponsor and Facility: Chesapeake Appalachia, LLC (Susquehanna River),
Mehoopany Township, Wyoming County, Pa. Application for surface water withdrawal of
up to 0.999 mgd.

21. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Susquehanna River), Tunkhannock Township, Wyoming County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

22. Project Sponsor and Facility: Cabot Oil & Gas Corporation (Bowmans Creek), Eaton Township, Wyoming County, Pa. Application for surface water withdrawal of up to 0.980 mgd.

23. Project Sponsor and Facility: Range Resources – Appalachia, LLC (for operations in Bradford, Centre, Clinton, Lycoming, Sullivan, and Tioga Counties, Pa.). Application for consumptive water use of up to 5.000 mgd from various surface water sources and the following public water suppliers: Jersey Shore Joint Water Authority – Pine Creek and Anthony Facilities, Williamsport Municipal Water Authority, City of Lock Haven Water Department, Borough of Bellefonte, Borough of Montoursville, Milesburg Water System, and Towanda Municipal Authority.



Public Hearing – Projects Scheduled for Enforcement Action:
1. Project Sponsor and Facility: Cabot Oil & Gas Corporation; Teel, Greenwood, Ely, Lewis and Black Wells; Dimock and Springfield Townships, Susquehanna County, Pa.

2. Project Sponsor and Facility: Chief Oil & Gas, LLC; Kensinger, Spotts, and Poor Shot Wells; Mifflin, Penn and Anthony Townships, Lycoming County, Pa.

3. Project Sponsor and Facility: EOG Resources, Inc.; Houseknecht, Olsyn and Pierce Wells; Springfield Township, Bradford County, Pa.; PHC Well, Lawrence Township, Clearfield County, Pa.; Leasgang and Pichler Wells, Jay Township, Elk County, Pa.

4. Project Sponsor and Facility: North Coast Energy, Inc.; Litke Wells, Burnside Township, Centre County, Pa.

5. Project Sponsor and Facility: Range Resources – Appalachia LLC; McWilliams, Bobst
Mountain, Ogontz, and Ulmer Wells; Cogan House, Cummings and Lycoming Townships,
Lycoming County, Pa.; Gulf USA Well, Snow Shoe Township, Centre County, Pa.; Duffey
Well, Ridgebury Township, Bradford County, Pa.

6. Project Sponsor and Facility: Turm Oil, Inc., LaRue Well, Rush Township, Susquehanna County, Pa.



FOR FURTHER INFORMATION CONTACT: Richard A. Cairo, General Counsel, telephone:
717-238-0423; Ext. 306; fax: 717-238-2436; e-mail: rcairo@srbc.net; or Stephanie L.
Richardson, Executive Assistant, telephone: 717-238-0423, Ext. 304; fax: 717-238-2436; e-mail: srichardson@srbc.net.

-- By Josh Mrozinski

Chesapeake Energy Corp. Arkansas Shale Play

Article on portion of a Chesapeake Shale play in Arkansas ---


http://biz.yahoo.com/ap/080902/chesapeake_energy_bp.html


-- By Josh Mrozinski

Cabot Oil & Gas Corp. tour

Last week, Cabot Oil & Gas Corp. gave a tour of its natural gas well operations in Susquehanna County. State regulators from New York and Pennsylvania attended, including Pennsylvania Agriculture Secretary Dennis Wolff. It was the first time Cabot opened its drilling operations in the county to the public. About 20 people attended, including Susquehanna County Commissioner MaryAnn Warren.

Featured during the tour were separate locations where pipe will be laid, a drill in operation, a compressor station and a gas producing well. Cabot expects to lay about 10 miles of pipe.


After the tour ended, Wolff said that he found adequate safeguards for the environment. He also said revenue created by natural gas drilling could help struggling farmers keep their farms.


-- By Josh Mrozinski

New rules for water withdrawals from the SRBC

Beginning on Oct. 15, the Susquehanna River Basin Commission will require that every natural gas operator that seeks to draw water from the basin to develop wells in the Marcellus Shale will need to get prior approval from the commission.

In the past, only operators that consumed an average of 20,000 gallons per day or more during any consecutive 30-day period or withdrew 100,000 gallons per day or more during any consecutive 30-day period, were required to get prior approval.

The rule change marks the first time in the commission's history that such prior approval has been imposed on a class of projects, according to commission executive director Paul Swartz. "After careful consultation with the commissioners and my technical and legal staff, I decided it would be prudent to impose the more stringent provision on the natural gas industry to give us the ability to review and regulate the industry's individual and cumulative impacts on water resources," he said in a news release on Aug. 15.

According to Paula Ballaron, the commission's regulatory program director, gas companies were taking up a lot of the commission's time asking questions about how to "just skim under the radar" of the commission's regulations. "A lot of the effort, at least initially, was being spent on avoiding the whole thing," she said. Now, the commissions' exchanges with gas companies can be directed toward ensuring proper compliance with the regulations that apply to everyone.

Because the additional applications will probably strain the commission and slow down the gas companies, the commission is proposing new rules that would provide a "more streamlined administrative procedure for reviewing consumptive water uses by the natural gas industry." Specifically, the proposed rule change calls for expanding the "approval by rule" procedure, so that it is available regardless of the water source a gas company wants to draw from. Approval by rule currently only allows companies to buy water from public water supplies while waiting for approval to draw surface water from the basin's rivers and streams.

The proposed rules will be released for public comment at the commission's quarterly public meeting on Sept. 11 at Bucknell University.

Potential economic impact study

Penn State Professor Timothy Kelsey has written a paper, 'Potential Economic Impacts of Marcellus Shale in Pennsylvania: Reflections on the Perryman Group Analysis from Texas.'

Kelsey's report refers to a study of the Barnett Shale in Texas by Texas-based economic consultants Perryman Group. The Perryman Group completed its study this year.


In his report, Kelsey writes that many sectors in the state's economy will benefit from natural gas exploration and drilling, with opportunities for a number of industries, including construction, retail and trade.

He says the two-fold economic challenge is:
1- Finding ways to help local businesses and workers compete for the new business opportunities arising from natural gas
2- Finding ways to encourage businesses, workers, and royalty owners to spend locally


Kelsey also states that local jurisdictions will face "higher service costs due to natural gas exploration."

He adds, "In other words, local jurisdictions with natural gas wells very likely will face higher demands for services and thus higher costs, and yet receive little new revenues to pay for those services."