The Marcellus Shales are a rock formation that lies about a mile underneath central and northern Appalachia. These rocks contain a significant supply of natural gas that previously was uneconomical to mine but due to the combination of better bits and horizontal drilling, the price to drill for the gas has gone down significantly.
The Shales are important politically because Pennsylvania is depending on new revenue to balance the budget. The new revenue will come from a combination of extraction taxes and the lease of state land for drilling and exploration. Other local government entities, including the Allegheny County Airport Authority, have attempted to make money off of the Marcellus Shales through leasing and extraction agreements as well.
Not a bad idea, although with the current collapse in natural gas prices, projections that were developped in 2007 and 2008 are probably a bit optimistic. Not a surprise, but not a fatal flaw. However, Pro-publica is raising some questions about the long term profitability of the shales as waste products are coming up and out much nastier than anticipated in New York State.
As New York gears up for a massive expansion of gas drilling in the Marcellus Shale, state officials have made a potentially troubling discovery about the wastewater created by the process: It's radioactive. And they have yet to say how they'll deal with it.
The information comes from New York's Department of Environmental Conservation, which analyzed 13 samples of wastewater brought thousands of feet to the surface from drilling and found that they contain levels of radium-226, a derivative of uranium, as high as 267 times the limit safe for discharge into the environment and thousands of times the limit safe for people to drink.
The radium and radon levels discussed in the article are mainly found in the waste water that is generated from fracking (fracturing) the rocks to release the natural gas. If the waste water is treated or reinjected, the danger is minimized . However Pennsylvania has had problems with fracking water in Marcellus Shales exploration and exploitation. Forbes has more from earlier ths fall:
Last week the Pennsylvania Department of Environmental Protection shut down some operations of natural gas driller Cabot Oil & Gas after 8,000 gallons of toxic chemicals were spilled on the ground and into a creek in Susquehanna County....
And in the Marcellus basin, a shale rock formation that stretches across Pennsylvania, Ohio, New York and West Virginia, usage is more like 100%. Without the high flow rates created by the frack, the gas wouldn't be economical to go after. With the fracks, geologists figure the Marcellus has more than 50 trillion cubic feet of gas, enough to meet all of U.S. needs for two years.
But can hydraulic fracturing be trusted? This wasn't Cabot's first fracking fracas. Pennsylvania's DEP cited the company last February for contaminating wells used for drinking near drill sites....
Wastewater treatment and releases have become a problem in the Mon Valley and Greene County portions of SW Pennsylvania. Will the Marcellus Shales natural gas produce a short term cash flow bump for the state but long term revenue drains as remediation for waste water and radiation gets shifted onto the state instead of the companies that potentially could externalize their pollutants.
This might be a good time to revisit this post on the dangers of "fracking"
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