DEP Chief on Marcellus Shale:

HARRISBURG – Environmental Protection Acting Secretary John Hanger told a state House panel today that the department is working to maximize the opportunities citizens, communities and companies can realize through the development of the natural gas contained in the Marcellus Shale formation, while also protecting Pennsylvania’s natural resources.

“There is no question that the Marcellus Shale holds tremendous economic potential for Pennsylvania’s families and its communities,” Hanger told the House Environmental Resources and Energy Committee as he explained how DEP is responding to increased drilling activity in the 5,000- to 8,000-foot-deep geologic formation. “This exciting potential also brings with it the need to act responsibly and ensure that Pennsylvania’s valuable natural resources are not sacrificed in the process.”

The Marcellus Shale formation is estimated to hold as much as 50 trillion cubic feet of recoverable natural gas under Pennsylvania, New York and West Virginia.

Penn State University estimates the economic value of the formation at $1 trillion and that, for every $1 billion in royalties paid to Pennsylvania residents, nearly 8,000 new jobs will be created each year over the next three years.

Extracting natural gas from the Marcellus Shale requires a process known as horizontal drilling, which uses far greater amounts of water than traditional natural gas exploration. The water can come from various sources, including municipal suppliers or streams.

Concerns about the effects of large water withdrawals on streams and aquifers have prompted the need to regulate planned withdrawals at drilling operations.

“Each drilling operation in the Marcellus Shale will require substantial volumes of water, much more than conventional drilling operations,” said Hanger. “Ensuring that water withdrawals do not threaten Pennsylvania’s environment or ecosystems is one of the department’s primary concerns.”

In May, DEP inspectors found environmental violations at drilling sites in Lycoming County. The department quickly responded and has worked with the Susquehanna and Delaware river basin commissions, as well as with the oil and gas industry, to create a consistent statewide application process for Marcellus Shale drilling permits that requires gas well operators to protect Pennsylvania’s water resources.

Under the enhanced process, drilling operators must provide additional information, including the sources and locations of water to be used in the drilling process, anticipated impacts of drilling on water resources, and locations of facilities where drilling fluids will be taken for treatment and disposal.

Since Aug. 15, DEP has issued 83 permits containing the enhanced water management requirements to companies seeking to drill for natural gas in the Marcellus Shale formation

DEP has created a Web page specific to the Marcellus Shale that features resources for industry and information on drilling questions for landowners and the public. The page is available at www.depweb.state.pa.us, keyword: Oil and Gas, then click on “Marcellus Page.”

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