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Washington Observer-Reporter - 2007-10-20

Pa. could allow new drilling in state forests

Associated Press

HARRISBURG - The state is considering lifting a ban on drilling new shallow gas wells in state forests, just five years after the restrictions were imposed in response to concerns that roads and pipelines were destroying wildlife habitat.

The idea is contained in an updated five-year forest management plan. The plan is open for public comment before a final one is published, perhaps next spring.

"I hope they're serious about it," said Stephen Rhoads, president of the Pennsylvania Oil and Gas Association, which lobbies on behalf of the industry. "I think they're foolish if they're not. There's a great deal of interest in trying to find new natural gas opportunities in Pennsylvania."

 

Environmental advocates, however, have supported the ban, saying people want to protect what few wild places there are left. Exploration companies are already drilling on many public lands and are rapidly expanding onto private lands that are outside Pennsylvania's traditional drilling grounds, they say.

"What is off limits to the oil and gas industry in Pennsylvania?" said David Masur, the executive director of PennEnvironment. "We'd argue that some of the public lands should be off limits."

The gas-exploration industry has strongly criticized the ban on extending new leases for shallow drilling, particularly since gas prices have tripled in the last five years and there is a rush to drill, even in Appalachia.

Exploration companies have submitted numerous requests for new drilling leases in state forests. In many cases, two or three separate companies from Pennsylvania and beyond are seeking permission to drill on the same parcels.

Rhoads said the state could realize hundreds of millions of dollars from companies that want the right to drill into shale, thought to hold substantial gas reserves, that may be 5,000 feet to 9,000 feet below the surface.

To guard against damage to sensitive environmental conditions or recreational uses, state forestry officials said any new drilling lease would depend on a review that is more in-depth than under the previous leasing program.

Dan Devlin, the director of the state Bureau of Forestry, said no decision has been made on the leases, but officials felt it was prudent to consider the idea in public.

The state manages 2.1 million acres of public forests, much of that land in north-central Pennsylvania, where there are gas reservoirs at various depths. It receives payments on leases and royalties from gas flows and uses the money to buy new forest land and improve facilities and programs in state forests.

Besides the industry, some legislators are also pressing for more exploration in state forests. One bill, introduced by Rep. Scott E. Hutchinson, R-Venango, would require the state to auction the rights for a parcel of land that is the subject of two separate lease requests.

If passed, the measure would "subvert our ability to manage the forests sustainably," said Chris Novak, spokeswoman for the state Department of Conservation and Natural Resources.

Leases for deep-well drilling are still allowed on state forest land to allow exploration of the Trenton-Black River, a deep underground formation of natural gas that some people in the industry think could produce Pennsylvania's most lucrative gas harvest ever. In addition, the state does not control mineral rights on a small portion of state forest land.

Drilling on state forest land has gone on since 1947. About 260,000 acres are under lease currently, with 600 wells producing and another 200 used to store gas below ground. About 600 other wells have been plugged.