Millionaires and more: Shale boom upside

Amy Rutledge, a Carroll County native and director of the Carroll County Chamber of Commerce and Convention and Visitor's Bureau, and Keith Burgett, a veterinarian whose Burgett Angus Farm is the site of one of the first Marcellus wells in the county, were among those meeting with us to discuss the drilling boom's impact on the community. This posts deals with the pros they identified. We'll get to their cons in the next post.

One of the the most shocking statistics was cited by Rutledge, who said that a survey of local banks indicated that the boom had produced as many as 600 millionaires in a county of 30,000 people.

She also said:

• The number of hotel rooms in the county will double by the end of this year with the opening of new facilities.
• Unemployment has decreased from nearly 15 percent in 2009 before the boom to near 6 percent now. Local people who are not working now "probably don't want to work," she said.
• Drilling on the grounds of a county-owned resort and golf course has saved the facility, which has been renovated and now is consistently booked up due to gas drilling-related business.
• Rental landlords have experienced a windfall as prices that had been between $300 and $600 per month have increased dramatically. It is now difficult to find anything for less than $600 a month.
• The Chamber of Commerce has grown from 175 to 220 members.

Burgett also pointed out:

• He was pleased with his dealings with the drilling company that put in the wells on his property
• Restaurants and gas stations that were struggling to survive are now consistently busy
• The developments laid out in these points represent incredible improvement for a county where residents' average income had been about $10,000 below the statewide Ohio average.

How does a fracking boom change a community?

A good part of our trip was spent in Carroll County, Ohio, which lies in the heart of the eastern Ohio Marcellus Shale drilling boom. There we met with a number of officials, residents and community activists who have experienced the fracking boom and the related changes in this rural county of about 30,000 from differing perspectives.

One of the officials we met was Amy Rutledge, a Carroll County native and director of the Carroll County Chamber of Commerce and Convention and Visitor's Bureau. While it is her job to promote the county, in her talk with us, she did acknowledge that the boom has had some negative impact. Here she is in two videos, one from energynation.org, a industry group, and a one from the Columbus Dispatch, which offers a more even-handed examination of community impact that also includes a story and slideshow.

Other reports: Slideshow explains shale drilling

In this slideshow, InsideClimate News reporter and fellow Shale Institute participant Lisa Song walks you through the process of shale gas drilling.

Other reports: Quakes and liquid waste connect communities east and west

Here's a broader perspective on the Cuyahoga River and Ohio from Colorado reporter and fellow Shale Institute participant Stephanie Ogburn.

Earthquakes? Why are you surprised?

The connection between injection wells and earthquakes has been known since the 1980s, according to Jeff Dick, professor and chair of the Department of Geological and Environmental Sciences at Youngstown State University.

Put simply, an earthquake can occur if the well injects liquid into a fault line or the liquid escapes through a fracture in the surrounding rock and finds its way to a fault line.

Dick said these incidents have been well documented in academic and industry journals over the years. He believes the Youngstown and other recent injection well-related earthquakes have received wider notice for several reasons. First, the amount of injection well activity has increased dramatically in recent years and is tied to a hot topic, fracking waste. Second, he points out that social media and the internet allows word to spread much faster today than back in the 1980s when the earthquakes were a current topic among academics and industry insiders.

Youngstown earthquake - what did we learn?

So what happened in 2011 to cause the earthquake near Youngstown, Ohio, that captured national attention and raised more concerns for many about disposal of frack waste?

Video: Cuyahoga River from flames to healthy fishery

This short World Fishing Network documentary explores the recovery of the Cuyahoga River, which was once so polluted with oil and other debris that it burned several times.

Ohio activists rally to protect land and water

This stretch of the Cuyahoga River is upstream from the dramatic fires of the 1950s and 1960s, but those fires left a legacy of environmental vigilance in nearby communties, including here in Portage County. The current concern is injection wells, where chemicals and radation-bearing fluid from fracking wells is pumped deep underground in what the federal government describes as the best practice for disposing of the material.

Earthquakes near Youngstown in 2011 and 2012 that experts believe were lkely caused by an injection well focused attention on these wells and fracking in general. Although regulators reacted with a suite of new requirements aimed at stopping the quakes, activists rallied to examine industry practices and make recommendations for study and additional regulation. You can see the agenda on the Ohio Environmental Council website.

Video: Great day for canoeing injection well country

We're about to get underway on the Cuyahoga River in Portage County, Ohio, which has a high concentration of injection wells. These wells are used to dispose of fracking liquid, which includes chemicals and is polluted with naturally ocurring radiation from the Marcellus shale.

Video: Canoeing the river of fire

Part of today's trip includes canoeing the Cuyahoga River, which actually burned numerous times due to oil and other pollution. This Cleveland State documentary shows just how bad this pollution was on the Cuyahoga in the years leading up to the fire of '69, which prompted cleanup efforts.

Environmental issues you should worry about

Advice on this topic has been pretty consistent so far on this journey. One is spills and accidents involving the surface transport, storage and use of fracking chemicals and waste. The second is disposal of fracking drill cuttings, water and fluid once it returns to the surface.

Regarding the water and fracking fluid, about 10 to 20 percent of the liquid that is pumped down the well comes back, and when it comes back it is different than when it was put down. In the Marcellus shale, it comes into contact with water in the shale formation that is radioactive and some of that radioactivity is brought back to the surface as part of preparing the well to produce.

You can add Bill Kappel, hydrologist emeritus with the U.S. Geological Survey New York Water Science Center, as endorsing these as the top two risks related to fracking.

Fracking sand makes the difference

This is a bottle of fracking sand. It is very fine in order to do its job correctly. The high pressure of the hydraulic fracturing process creates hair-thin cracks in the shale to release natural gas. This sand helps to keep those cracks open, allowing the gas to keep flowing. Thanks to Bill Kappel, hydrologist emeritus of the U.S. Geological Survey and participant in the New York Water Science Center, for access to this sample.

Shale 101: The darker the better

Generally speaking, the darker the shale is, the more gas and oil it is likely to contain, so says Bill Kappel, hydrologist emeritus with the U.S. Geological Survey.

Testimony details concern about radioactive waste

Here is the testimony of attorney Gary Abraham related to the radation pollution he and community activists believe is coming from the disposal of Marcellus Shale fracking waste in western New York landfills. As a result of their advocacy, the state of New York regulators have been asked to investigate and legislation has been proposed that all waste from gas and oil drilling be tested for radiation before being allowed in a landfill. In Pennsylvania this is already required and limits have been set.

Mineral rights - did you know?

Unlike the United States, where mineral rights can be privately held and even separated from surface rights, in most other countries the government owns mineral and subsurface rights, according to Jim Ladlee, associate director of the Penn State University Marcellus Center for Outreach and Research.

So what are the probems?

There is a general agreement among the experts and activists we've met with that the greatest risks/issues lie in two areas. One is from accidents and spills on the surface involving fracking chemicals and waste. The second is disposal of fracking and drilling waste, which brings some naturally occurring radioactive material with it when it is brought back to the surface.

 Generally, proper well construction will keep this material from polluting groundwater, but some of it must be brought back to the surface as part of the process. What to do with it then is a matter of heated debate. Today we met with Gary Abraham, who represents a citizens watchdog group that believes radioactive materials from fracked wells are leaking out of western New York landfills near the Pennsylvania border. You can learn more about him and the effort here.

Living at the drill site

This is part of the employee trailer home camp at the Seneca Resources Marcellus well drill rig near Smethport, Pa. We were told there are about 60 workers on site with 30 on a 12-hour shift while the others are off. They work for two or three weeks straight and then have the same amount off.

The "company man" at the site, Seneca's top manager there, is from Oklahoma, has been drilling since the 1970s and has worked around the world. Many well services are outsourced to specialist companies. I did not check all the license plates of the vehicles there, but I didn't see any from Pennsylvania; just west and midwest states with significant recent histories in the gas boom.

Video: Meet the rig

This Seneca Resources drill near Smethport, Pa., was running when we visited. It will drill six Marcellus wells from this pad site.

A look at the stuff that gets it done - part 2

Here's the piece that does the cutting - the drill bit. Outfitted with industrial cutting diamonds, a piece like this, about the size of a cantaloupe, can sell for as much as $35,000. Rather than buying these pieces, Seneca Resources leases them for use at sites like this well near Smethport, Pa.

A look at the stuff that gets it done - part one

The long metal pipes hanging from this Seneca Resources Marcellus shale drill rig are what carry the drill bit down to the end of the well to do the cutting.

Up close to the action - well site visit

Seneca Resources' plan for this site near Smethport is to go from spud, or the start of drilling, to sale, having the first natural gas to the market, in 200 days. Here the rig remains drilling the wells. A total of six wells will go in at this pad. Fracking is a separate process that takes place after the wells are drilled. It seems like the main reason that well sites must include 5 or more acres of cleared land is to provide space for the the massive amount of equipment and supplies necessary for the fracking process.

Video: Marcellus drill rig in action

This drilling rig near Smethport, Pa., is putting in six wells at this pad site being developed by Seneca Resources, an affiliate on National Fuel Gas. Here it has finished drilling down about 6,000 feet and has moved into the horizontal phase of boring. It will cost about $7 million to drill this well - a total that does not include costs such as land and mineral rights acquisition, site prep and fracking.

Follow our tour and learn on Storify

You can learn alongside those of us participating in the Shale Country Institute by following Storify posts by Institute for Journalism and Natural Resources staff.storify.com/IJNR/shale-country-institute-gets-underway

They say the f word isn't a bad word

We've heard from an environmentalist and numerous regulators that the act of hydraulic fracturing is not something to be worried about; that surface spills and accidents are where the risks lie.

Jim Ladlee, associate director of the Penn State University Marcellus Center for Outreach and Research, discussed this a bit more today. He said he is not aware of Marcellus material migrating upward in a fracked well and causing pollution or other problems. The problems he has seen have come due to mistakes or issues in the drilling process - the making of the hole into which fracking materials are eventually injected. Due to what he sees as drilling mistakes or issues, he believes some methane has migrated through subsurface layers much shallower than

Map: Watch the growth of Marcellus wells

This map shows the growth of Marcellus wells across West Virginia, Ohio and Pennsylvania.

How long will a Marcellus well produce?

The generally accepted expectation for the useful production life of one of these wells is 20 to 30 years, according to Jim Ladlee, associate director of the Penn State University Marcellus Center for Outreach and Research. However, he is quick to point out that a few oil wells in the Marcellus region are still producing 100 years later!

Fracking isn't new

Fracking, as in using force to break open, or fracture, shale formations to release oil and gas, goes back to about 1865, when oil drillers in the region around Titusville found their wells plugging up with wax due to the high wax content of the oil there. E.A.L. Roberts developed "torpedo shells," like the one above shown at Drake Well Museum, to lower black powder or nitroglycerline into the well to blow the wax clear. The process was also find to stimulate oil and gas production. Of course, explosives have given way to today's hydraulic fracturing, where a high pressure mix of water, sand and chemicals are used.

Meet Marcellus part 2

Marcellus is from somewhere 2,000 to 9,000 feet underground, as the map above from the Penn State Marcellus Center for Outreach and Research shows. The Center is a great source of comprehensive information about this shale formation. As the display at Drake Well notes, some pieces of Marcellus hold so much gas they will ignite when exposed to flame.

Meet Marcellus part 1

This is an actual piece of Marcellus shale on display at Drake Well Museum. Some pieces of Marcellus contain so much gas you can light them on fire!

Video: Learn more about Drake Well Museum and why it is important to today's shale boom

This six-minute public television documentary shows you some of the highlights of Drake Well Museum and explains why and how the history preserved there is relevant to today's shale boom.

Here's where it all started

Replica of Col. Edwin Drake's oil well at the site where he drilled the first large scale commercial well in 1859 near Titusville, Pa., ushering in the oil era. The site is now part of Drake Well Museum. The motivation was to replace whale oil for lighting.

Environmentalist says the actual act of fracking not the biggest risk

While many remain concerned about the act of fracking itself, the greater worry should be about the accidents that can take place afterward, says Nels Johnson, deputy director of the Nature Conservancy's Pennsylvania chapter. In his view, spills and accidents involving trucks carrying waste and fracking water pose a greater risk than the actual drilling of a well.

Regulator says Pennsylvania's experiences providing lessons for the world

Pennsylvania is a "proving ground" for shale extraction regulation and "the world will benefit" from the ongoing development of regulations here, says Scott Perry, deputy secretary of the state's Office of Oil and Gas Management. He says it would be easier to keep a list of the countries that haven't sent representatives to Pennsylvania to learn about regulation than keeping a list of those that have. He has recently been asked by the federal government to consult with Lithuania, for example.

Nature Conservancy developing modeling tool to help drillers

A new modeling tool will allow drillers to examine the cost both in dollars and environmental impact of multiple scenarios for developing a drilling site. The tool is being developed by the Nature Conservancy, according to the organization's deputy Pennsylvania director, Nels Johnson. Importantly for the Conservancy, the tool will show the environmental impact beyond the site itself, putting it in the context of the surrounding ecosystem. You can learn more about the Conservancy's take on energy issues here.

Where we're going and what we're doing

Here's a tentative schedule for our study tour. Things may change as we go along, but for now here is what we expect:

DAY ONE
Problems and the Rebirth of the American Energy Industry
Advancements in oil and gas drilling, specifically hydraulic fracturing, have rejuvenated old American wells and brought vast reserves of fuel, once locked in shale, into play. Some say the boom will be our bridge to improved emissions and renewable fuels. Others contend environmental concerns may call for putting the brakes on the boom.
Scott Perry – deputy secretary, office of oil and gas management, Pennsylvania Department of Environmental Protection
Nels Johnson – deputy state director, The Nature Conservancy, Pennsylvania chapter

DAY TWO
A Brief History of a World-Changing Fuel
In 1859, Edwin L. Drake drilled a hole just over 69 feet into the ground beside Oil

Welcome!

You are invited to join me as we go on a multi-day study tour organized by the Institute for Journalism and Natural Resources that will take us through the Marcellus and Utica shale regions of Pennsylvania, Ohio and New York. During this trip we will hear from and talk with government officials involved in regulating and planning for the shale boom, executives with companies involved in resource extraction and community activists. We'll visit sites ranging from fracking wells to communities struggling to adjust to both the benefits and challenges of this relatively new and growing energy resource.

IJNR's mission is to advance public understanding and civic engagement about issues of environment protection, resource conservation and responsible economic development through better journalism. As part of its mission, IJNR conducts expedition-style programs of training and professional development for journalists at all career stages and from all sorts and sizes of news outlets — ranging from newspapers and magazines to radio, television and online operations.

I applied to join this trip as part of a competitive selection process. My name is Pat Bywater and I am executive editor of The Meadville (Pa.) Tribune. I have about 25 years of experience as a reporter and editor.

My aim with this blog is to give  you a window into this study tour so that you can join us in learning more about the promise and peril of the shale boom.