Bradford County, PA, Commissioner Smith Writes To Governor Re: Gas Drilling Problems



Looking down French Azilum Road in Asylum Township, Bradford County, PA, near our summer home established in 1930.
Photo credit: Carol Manuel

 Bradford County, PA

http://www.bradfordcountypa.org/
Bradford County, PA, 301 Main Street, Towanda, PA 18848

Mark W. Smith, Chairman
Gayle Kershner, Chief Clerk
Jonathan Foster, Solicitor

smithm@bradfordco.org

570-867-1757
Bradford County Commissioners
April 20, 2011

Governor Tom Corbett
225 Main Capitol Building
Harrisburg, Pennsylvania 17120

Dear Governor Corbett,

Issue after issue has arisen in Bradford County in relation to the development of natural gas in Bradford County. Most recently there was a major incident involving a well blowout in Leroy Township, Bradford County. This major incident is just one more issue our county is dealing with in regards to the development of the Marcellus Shale.

I have a number of concerns I would like to address in relation to these important issues that are unfolding in the county I was elected to represent. DEP officials are quoted in the media as saying they spend as little as 35 minutes to approve each gas well permit. This is an appalling statistic considering the significant operations and impact of a natural gas drilling site and even more appalling considering that there have been nearly 2,000 gas wells permitted in Bradford County.

In recent weeks it has been reported that DEP is now requiring Marcellus Shale violations to be approved by top DEP officials before being levied on gas companies. This practice strikes at the heart of the integrity of that organization. It does irreparable damage to the local areas in the Marcellus Shale with the environmental damage that has become an everyday reality in Bradford County.

Well water contamination in Bradford County is a real and serious issue that is affecting residents’ quality of life, livelihoods, families, and property values. Water buffalos, temporary water storage tanks, now lay claim to peoples’ front yards as a stark reminder of the extreme negative impact that natural gas development is having on our local communities.

Last year I put much effort working for a severance tax that would include an equitable share for local communities. It was a failed attempt but a sincere effort to ensure our county is taken care of through this development. I continue to see our county, townships, and boroughs struggle with complex issues of development with no financial or logistical support from the Commonwealth. Emergency responders, volunteers, state and local police and dispatchers are working at a break neck pace to respond to immense traffic accident increases, well site accidents, and other related issues.

I have heard politicians in complete favor of the gas industry use the phrase, “We don’twant to kill the golden goose”. I would like to state, for the record, that the “Golden Goose” does not exist. It is no more part of reality than the Tooth Fairy, Santa Clause, or the Easter Bunny.

Lastly, I would like to address the outstanding issue regarding Bradford County’s lack of representation on your appointed Marcellus Shale Commission. Bradford County has had the unique experience of being the most drilled in county in the Commonwealth of Pennsylvania. Yet, despite that fact, no one from our county was appointed to your commission. The fact our county was not taken into consideration is a direct insult to our county.

I have been working to, at least, find a way for some of our agencies to be heard by the commission or one of its work groups. To date I have not been successful. I have called and e-mailed the Lt. Governor’s Office and tried working through one of our state representatives to no avail. What a shame that a county with the most experience dealing with the impact of natural gas development seems to have been blackballed from comment to what will be your basis for setting Marcellus Shale policy.

I ask you to take our county and others like it seriously as you move forward setting policy in regards to Marcellus Shale development. The economic benefit of this development is unquestionable. However, it is also unquestionable that when left unattended, the negatives outweigh the positives quickly and heavily.

Best Regards,

Mark W. Smith
Chairman, Bradford County Commissioners

Cc: Secretary Michael Krancer
Representative Tina Pickett
Representative Matt Baker
Senator Gene Yaw

The Tale of the Golden Goose

THANK YOU, COMMISSIONER SMITH, FOR WRITING THIS LETTER

A Must See: Listen to James Northrup of Sustainable Otsego (NY)

James Northrup worked in the gas industry for thirty years. He's from Texas, but summers in Cooperstown, NY.  He's concerned about hydrofracking in NY State.  He says the gas industry could use non-toxic fracking chemicals, or at least non-carcinogenic chemicals, but they don't because they don't have to.  He talks here about four things which need changing in NY State:

1) Require a severance (production) tax like almost every drilling state does.
2) Separate the agency that issues drilling permits from the agency that serves as a watchdog for the environment.  The NY DEC currently does both.
3) Get rid of compulsory integration which he says is just wrong.
4) Do something about the vulnerability caused by the ownership of NY State surface water.  The state owns almost all lakes in NY State.  Municipalities have absolutely no control over water use.

Northrup says that NY State law is antiquated and completely inadequate for today's technology and the geology of New York State.

DEMAND ACCOUNTABILITY!

Pennsylvania Taxes the Little People, Gives Big Oil a Free Pass

In Pennsylvania, if you are a gas drilling corporation, you get a free pass on taxes (no severence tax for them). But if you are a small non-profit service, fraternal or arts organization, a hunting or angling club, a veterans organization, a museum, zoo or aquarium, you will be taxed.
Here is an excerpt from today's issue of Session Daze from PennFuture:

Survival of the fittest
The proposed budget agreement between Governor Rendell and the leaders of the Senate Republican, Senate Democratic and House Democratic caucuses does not include a severance tax. Senate Republican opposition to the tax ultimately prevailed in the negotiations--if the agreement holds. In this Darwinian outcome, the well-heeled, huge multinational drilling firms, which spent more than $1 million lobbying state government between January and June, get a free pass on a tax they pay in every other major gas producing state. So, to cobble together enough revenue to balance the budget absent a severance tax, budget negotiators decided to tax small non-profit service, fraternal and arts organizations. These groups didn't spend a dime lobbying to avoid new taxes because they had no idea that they looked to budget-makers like easy-to-pick-off prey.

Exxon-Mobil strikes gold, firefighters get the shaft
Since multinational drilling companies get a pass on taxes, volunteer organizations- vital to public and personal safety in our communities- and other local groups have to pick up the tab. Volunteer firefighter and ambulance companies in Pennsylvania often struggle mightily to raise funds to operate, train and buy new equipment. Small games of chance are a significant source of funds for many companies. But now the proposed 20 percent tax on small games of chance could cripple the ability of many of these volunteer companies to raise funds. The same goes for hunting and angling clubs and fraternal and veterans' organizations.

Conoco-Phillips strikes gold, the arts get the shaft
While multinational drilling companies get a pass on the severance tax, non-profit community arts and cultural organizations across Pennsylvania woke up last Saturday to discover that they were being hit with a sales tax on their tickets. Many of these organizations have been struggling in the recession. The proposed tax also applies to museums, zoos and aquariums.

Read this issue of PennFuture's Session Daze here.

DEMAND ACCOUNTABILITY!
MAKE BIG OIL AND GAS PAY ITS FAIR SHARE!

The New Snake Oil Salesmen: Natural Gas Lobbyists

PennFuture has published an article about natural gas lobbyists who have spent more than one million dollars lobbying the PA legislature so far this year.

The natural gas lobbyists - who have spent more than $1 million lobbying the Pennsylvania legislature so far this year to avoid a severance tax on Marcellus Shale gas drilling - have a lot in common with the snake oil sales reps of old. They are making spectacular claims about the benefits of gas drilling even as they poor-mouth about economic fragility of their industry. A look at the facts makes it clear that virtually none of the lobbyists' claims are true. Our message to state legislators - Buyer beware.

The gas industry is taking the approach that they are in a delicate position right now, being as they are in their infancy. A comment in the Philadelphia Inquirer reads:

If the natural gas industry is an infant, it was born with a silver spoon in its mouth.

The annual bonuses that the CEOs are getting really belies this argument. Cheasapeake Energy's CEO Aubrey K. McClendon got a compensation package last year of $112.5 million. Range Resources' CEO received $5 million. Atlas America's PA subsidiary paid Richard Weber nearly $2.5 million.

Claim: PA consumers will be hit with higher costs for natural gas. PennFuture says NO.
Claim: We (gas companies) already pay too much in taxes. PennFuture says NOT EXACTLY.
Claim: We're (gas companies) bringing jobs to PA. PennFuture says NO.

However, the drillers may successfully dodge the severance tax which is required in most gas producing states, and will also make "sweetheart" deals with the state to buy leases in PA state forests and parks. They will buy low now and make a killing later.

PennFuture says,

We weren't born yesterday. All of us should let the legislature and the governor (Rendell) know that this is a very bad deal all around.

Read PennFuture Facts Vol.11, No.19, here.

DEMAND ACCOUNTABILITY!
NO MORE HUGE BONUSES FOR GAS CEOS!

Wrong Thinking Every Which Way: Ye Gods!

Where does one start with an article like this from PennFuture? Entitled "A Machete Instead of a Scalpel," the article describes what will happen to many good programs which stimulate the economy and enrich the lives of the people who live in or visit the state of Pennsylvania. The PA State Senate decided to slash funding from tourism funding to state forest rangers and the black fly spraying program. Here is a sampling of the cuts:

Closing at least 35 state parks and 1,000 miles of state forest roads
$1.7 million from the black fly spraying program
$1.9 million from the West Nile virus program
*$50 million from the DEP budget (affecting flood protection, repair of sewer and water systems, clean up of air pollution)

Absent from the plan is a severance tax on natural gas drilling which would bring revenue to the state- something that most other states have.

But wait!

The state wants gas drilling revenues. However, gas wells will pollute the water, soil, and air. It will make Pennsylvania a dangerous place to live or visit. It will pollute the rivers and streams and aquifers, making clean drinking water less available. The animals will suffer from all aspects of the gas industry, including noise pollution, bright lights, toxic water, habitat destruction, deforestation, to name a few. The roads will be torn up by the huge trucks needed for fracking. The trucks will make driving on country roads much more hazardous. State parks will be closed or be forced to run on skeleton staff. Roads in the parks will be closed (except the roads needed for gas companies). Being outdoors will be less pleasant with black flies and West Nile virus to worry about, not to mention bad air to breathe. Just when we need more money for the DEP, a huge cut will necessarily adversely affect its work. We need more watch dogs everywhere to observe the goings on of the gas companies and make them accountable. I guess this means less public protection and more leeway for gas companies to operate with little overseeing.

For PennFuture to say that it cares about tourism and quality of life for its citizens and still support rampant gas drilling all over the state is disingenuous at best. When will we realize that we really can't have it both ways? Severance tax or not, we are headed for trouble. There won't be anything left to protect after all the wells are drilled and the pipelines laid. It's really not about the budget. It is about hydrofracking gas wells. Read the article here.

DEMAND ACCOUNTABILITY!