ENERGY & RESOURCES AD HOC COMMITTEE
 February 22, 2010

** NOT APPROVED **

Committee Members Present
K. LaForge, F. Sinclair, G. Benson

Others Present

C. Crandall, M. Alger, D. Fanton, T. Hopkins, J. Foels, S. Grugel

 

Energy & Resources Ad Hoc Committee Chairman Kevin LaForge called the meeting to order at 11:00 a.m.

 

Mission Statement

The Mission Statement was presented as below.  Chairman LaForge asked for any comments or modifications to statement. 

 

Mission Statement

 

To facilitate development of the energy related natural resources of Allegany County in a manner that maximizes the benefit to our County’s residents, while maintaining the integrity of our environment for future generations.

 

Currently the primary focus of this committee will be the Marcellus Play as a generational bridge to renewable energy.  We shall also pay due diligence to renewable technologies such as wind and wood bio-mass to encourage further gains in economic viability. 

 

This Committee will be continuously vigilant to identify emerging technologies that, the encouragement of, would be beneficial to our county residents.

 

In summary, we will work with stakeholders to identify issues, good and bad.  We will attempt solutions to mitigate the bad and maximize the good.

 

Legislator Sinclair questioned the word “Play” in reference to the Marcellus project and wondered if the general public would understand the term.  S. Grugel commented that most Mission Statements are considered long term and maybe the name of a project, such as Marcellus, should be removed.  Chairman LaForge commented that the Marcellus Play is currently the primary goal of this committee and felt it should remain.  Legislator Sinclair motioned to accept the Mission Statement with a single change to remove “Play” and insert “Gas Field.”  Chairman LaForge commented he prefers Marcellus remain in the statement, since other surrounding counties have ongoing efforts specifically targeting the Marcellus exploration.  The motion was seconded by G. Benson and carried 3-0.

 

Chairman LaForge referred to the following points regarding the Marcellus project and opened up discussion and comments to the committee.

 

Marcellus Play – Points of Discussion

1.       Environmental 

a.       Hydrofrac Disposal

b.       Water Supply

c.       Surface Intrusion

2.       Landowner – Lease/Seller Education

a.       Split Estate Issues

3.       Workforce Education

4.       Local Vendor Opportunities

5.       Government Revenue Potential

6.       Generational (Long Term Concerns)

 

Environmental (a-c)

 

Legislator Sinclair gave background information with regards to Hydrofracing and noted history shows hydrofracing does not have a history of polluting.  The main concerns seem to be the possibility of broken pipes and fluids leaking onto the soil.  If done correctly and contained, there is a history of successful treatment.  Some black shale deposits may contain radioactive components that can be drawn to the surface when the water is drawn out of the well.  We are not sure if the black shale in Allegany County contains these components and that is one issue.  Secondly, is the amount of water required for hydrofracing and third, radium associated with radon dissipates quickly, however, there are other potential isotopes with longer half lives.  Chairman LaForge commented that if these problems existed then the DEP would be involved with Pennsylvania, but these problems can vary well to well.  It was suggested that some of the committee members do some fact finding trips to PA, check things out and talk to DEP.  It was asked what if we explored Marcellus and didn’t hydrofrac.  You could acquire permit now and it would be a multi-million dollar profit versus hundreds of millions.  Legislator Benson commented that explosive fracing does not have as big a dollar return, but the cost ratio is less. 

 

There is concern where the water supply for hydrofracing will come from and surface intrusion is a concern but can be prevented by running a tight operation.

 

Landowner/Lease-Seller/Split Estate

 

Some landowners are already forming and setting up as a group.  A split estate realizes you are giving up surface rights for them to come on and drill and there needs to be education on the process for the general public.  Also, financial responsibility and investment advice for landowners will be part of the process.

 

It is very important that landowners know their rights and whether or not they even own the mineral rights under their property and many don’t.    Landowners should be wary of leasing unscrupulously, hold out and evaluate, because companies can put wells and sheds anywhere on your property.  NYS has established some information, but possibly get local news to help educate the landowners.  Potter County has done extensive educating through media.  Sherry Grugel commented that the Independent Oil & Gas Association (IOGA) has brochures and their website has information.  She has brochures in her office if anyone is interested. 

 

Workforce Education

 

No one in Allegany County is being educated for future jobs here with the Marcellus project (i.e. gas skilled workers).  These are high paying jobs and we want to offer to our locals, as it will be at least 10 years worth of work.  Williamsport Community College, now known as Penn Tech, is currently offering a curriculum.

Local Vendor Opportunities 

 

Chairman LaForge informed the committee there will be a “Natural Gas Expo” seminar in Potter County on March 17th-18th at the Gospel Tabernacle Church, Coudersport, PA.  This is a chance to meet with local stakeholders and service providers.  If we can use as many locals as possible, the sales tax revenue will come back to the county. It is a great opportunity for our local schools if we can get an education program at the higher education centers.  S. Grugel commented she attended a similar seminar two years ago in Chautauqua County and maybe they are still offering it and it would be beneficial to look into.  Legislator Benson commented that if we can get the DEC to open it up, there will be no problem getting people on board.

 

Government Revenue Potential

 

The local town and county get a separate tax.  Legislator Benson commented they will tax by whatever is most, barrel or well.  They will tax so much per well and if product is higher, it will be taxed higher.  It was asked if the towns already have laws in place.  Legislator Benson recalled that some of the towns owned their wells than passed onto the county.  Legislator Sinclair noted that he read where we can’t impose fees or regulate wells over what New York State does. 

 

Generational – Long Term Concerns

 

Legislator Hopkins suggested the committee should get in front of concerns with towns regarding bridges, roads and post roads for tonnage, as there is concern truck traffic will be too much wear and tear on roads and bridges.  Legislator Fanton remarked that most towns have already posted roads and bridges with permits.  There needs to be some sort of law in place before any project is proposed that will affect our roadways.   S. Grugel commented that during her tenure with Noble Energy, on wind projects in Bliss and Centerville, she dealt with landowners and any conflicts regarding property damage.   If anything, the projects were beneficial to the towns, because if there was any damage to roadways or landowners property, they were repaired by the project with no cost to towns.  Chairman LaForge stated there needs to be a point of contact for the Marcellus Project.  There are no resources now, but make it easier for the project to come here once the environmental concerns are addressed at the state level.  S. Grugel suggested putting together a reference page with U.S., State and local information.  It would be an easy fix and maybe a good project for an intern in environmental studies to do an informational packet.  There is a governmental site you can access via Internet for more information on gas drilling:

http://www.ein.doe.gov/oil_gas/natural_gas/info_glance/natural_gas.html.

 

Next Meeting

The next meeting will be Monday, March 22nd at 11:00.  Chairman LaForge asked all members to try and attend the Natural Gas Expo in Coudersport to bring back information, as it will be the focus of our next meeting.

 

Adjournment

There being no further business to come before the committee, a motion was made by Legislator Sinclair, seconded by Legislator Benson and carried to adjourn the meeting at 12:05 p.m.

 

 

Respectfully submitted,

 

 

Cathleen L. Whitfield, Recording Secretary

Confidential Secretary to the Director of Development