Central Penn Business Journal Marcellus Shale Summit

Central Penn Business Journal Marcellus Shale Summit

This past Jan. 25th I was fortunate enough to attend the CPBJ's Marcellus Shale Summit. Those who do not live in the area may not be familiar with the Marcellus Shale. The Marcellus Shale is the second largest natural gas deposits in the world.It stretches from north eastern Pa and swings around  and follows into south western Pa. It also stretched into southern NY, eastern OH, northern WV, and western MD, although on a much smaller scale in those surrounding states. The Marcellus Shale has had it's share of controversy regarding the adverse effects that the drilling may have had on local water supplies, as well as the Chesapeake Watershed. How valid those concerns were or are is still under debate, however what is a certainty, the Marcellus Shaleis here to stay, and it's potential is endless, and most importantly, it is here to stay.

The Marcellus Shaleaffects the people who are leasing ground to the energy companies harvest, the local economies, the local populations job growth, the Pa state legislature and so much more. Throughout the summit there were a number a speakers addressing many different area's of the project. A wonderful presentation from Scott Perry,director of Oil & Gas management with the Dept. of Environmental Protection. The DEP has strict monitors on drilling operations and it's effects on the environment. At the center of the water controversy is the practice of hydraulic fracturingto extract the gas from the shale. It should be noted here that practice of hydraulic fracturing has been safetly used in this country for over 60 years to complete over 1 million wells with no confirmed cases of drinking water sources being impacted. Recently a number of agencies including Ground Water Protection Council, the US and Pa EPA have completed studies shown that the tight regulations imposed on drilling operations are continuing to keep things safe.

The keynote speaker for Marcellus Shale Summit was Ray Walker, senior VP, Marcellus Shale, Range Resources. Mr. Walker gave a great presentation and has about as much background in the naturalgas drilling world as anyone in the country. Listening to Mr. Walker it is clear the he is not originally from the Pa area, his Texas accent comes through loud and clear. As well it should, Mr. Walker originally from Ft.Worth, Tx began his drilling technology career on the Barnett Shale in Ft. Worth in 1982. His experience and expertise are apparent in his presentation.

 This much is true, the Marcellus Shaleis going to have a huge impact on the Pa economy, while it is giving the area's involved a great number of economic growth opportunities in a large number of area's, how the operations are going to affect state coffers is still unclear. Pa state lawmakers were unable to come together on a natural gas tax bill, in July of 2010 a agreement which read "It is the intent of the House majority leadership and Senate majority leadership to pass legislation that raises revenue from the extraction of  Marcellus Shalenatural gas by Oct 1, 2010, with an effective date for implementation no later than Jan 1,2011."  While there was plenty of talk as why the bill did not passed, Pa Senate leaders pointing to a Pa constitutional requirement that the House start any taxation measure etc, in the end it came down to the House and Senate of the Pa legislature being unable to work together effectively that ultimately led to the bills demise.

The Pa legislature is the largest legislative body in the United States and one of the most expensive to operate,it is also one of only 9 full time legislative bodies in the U.S. It makes one wonder how the Pa taxpayer is being served by bloated, overly expensive legislative body when they cannot come together on arguably one of the most important economic issues facing the state of Pa, and affecting it's already overburdened tax payers. Maybe it is time for Pa taxpayers to look to a smaller, part time legislature that can better perform it's obligations to the Pa taxpayer. However that is fodder for another story.

Let's be clear, the Marcellus Shale is here, it's big, it's important, it's impact on all Pa residents will be enormous, and most importantly, it is here to stay so be better all, Pennsylvanians, state Senators and Representatives better our collective hands around all aspects of it.

Looking for more information on the Marcellus Shale, check any of these sites:

My RangeResources
Statoil
Geology.com
Marclelluscoalition
Marcellus Shale Protest
Marcellus Shale Watch