Region may cash in on gas drilling boom

By Jamie North
The Daily Item

September 14, 2008 03:53 am

— Property owners are cashing in on lucrative natural gas leases, some receiving up to $2,500 per acre and 18 percent royalties from big Texas companies invading Lycoming County.
But property owners won’t be the only ones to benefit from the natural gas drilling boom in northern Pennsylvania, a Lycoming County official says.
Commissioner Rebecca Burke, whose county has seen 70,000 acres already leased by one Texas company, says there will be plenty of job opportunities for truck drivers, water haulers and general laborers as natural gas drilling sites pop up in the Valley.
In addition, Burke said gas company families moving from Texas should provide a boost to the economy through home purchases and hotel stays.
And it’s not all going to be limited to the Williamsport area, Burke said.
“You can see the little pink flags along the roads (marking potential drilling areas) and white trucks with Texas license plates in all of the hotel parking lots,” Burke said Tuesday while speaking to the Keystone Wood Production Association in Lewisburg about the current gas exploration initiative occurring in the region. “They’re here, and they’re busy. Time is money for these folks. It’s going to be a big win for all our communities, not just Lycoming County, because we can’t accommodate all of it.”
Natural gas companies have moved north to tap into the marcellus shale that covers the western and north-central regions of the state, according to Burke, adding that the East Coast siting is among the biggest draws.
“Installing pipelines and transportation are major costs to these companies,” Burke said. “The shorter the trip, the better it is for them.”
Central Pennsylvania may not reap as much benefit as has the barnett shale region in Texas, where horizontal natural gas drilling has created 83,000 jobs — including 3,200 construction jobs — in the past three years, Burke said.
But even conservative estimates are promising.
“Keep in mind, this is all still perspective,” Burke said. “We first learned of this initiative last year when our register and recorder was swamped with people researching deeds. We had lines 14 people deep wanting to just get into the office. People started signing leases then, and it really ramped up this past spring. It’s still going on.”
In response, Burke said, Lycoming County formed the Community Gas Exploration Task Force to help educate the public on the gas drilling initiative, work with the gas companies in their transition to the region and assist employers with the effect of the drilling boom.
Among the key issues, Burke said, is helping job-seekers identify and train for potential employment opportunities resulting from the drilling initiative.
“There are going to be employment opportunities everywhere,” said Burke, a member of the multifaceted task force. “Someone has to haul the water away (from the drilling sites). Those sites will be checked every day by somebody, and someone needs to build those homes for the employees relocating here. Petroleum engineers are also going to be in high demand.”
Burke said there is a concern about losing current employees to the gas companies, which expect to offer attractive wages and opportunities for overtime. Managing the current work force, while helping to identify jobs the gas companies will need, is among the task force’s main priorities, she said.
“Are they going to be compensated (with higher wages)?” Burke asked. “You have to think they might, and you have to be prepared to handle it. As an employer, I would very much want to be on top of that.
“We are not going to abandon our employers. That’s part of the reason we created the task force. We’re trying to make it a win-win for everybody. We shouldn’t be making losers out of this initiative.”
n E-mail comments to jnorth@dailyitem.com.

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