It is hard to pick up a Pennsylvania newspaper without seeing something about the Marcellus Shale natural gas wells being drilled in our beautiful state. I travel our state extensively, and it seems most articles are negative.

As an avid outdoorsman, I understand the concern that many people have about our environment and the balance between nature and people. Pennsylvania residents also should look for the good side of this drilling boom.

I am fortunate to be a lifelong resident of Pennsylvania, and also to have been able to work for 30 years in our state’s oil and natural gas industry. I am a petroleum engineer, a professional geologist and a certified petroleum geologist. I am proud of our industry, proud of the people who work to provide American energy to Americans, and proud of the historically positive working relationship between our industry and the Pennsylvania Department of Conservation and Natural Resources.

Don’t get me wrong; our industry, like any other industry, isn’t perfect. But many oil and natural gas professionals also are avid outdoorsmen who work hard to extract oil and gas while minimizing the environmental impact.

There was an article recently about a field tour to a Marcellus well location in southwestern Butler County that was reclaimed so well that the tour group did not even notice the well site at first.

The first well was drilled in Pennsylvania in 1859, and since then it is estimated that close to 100,000 wells have been drilled in our state. But yet most state residents have never seen a well.

While it is true that Marcellus wells have a bigger footprint (two to five acres), it is common for five, 10 or even 20 wells to be drilled horizontally from one well pad.

A single Marcellus well can produce as much natural gas as 50 to 100 traditional wells. So, a well pad with 10 wells might produce as much natural gas as 500 to 1,000 traditional wells, with a much smaller net footprint.

Many people are concerned about the possible degradation of water supplies from drilling operations. As Americans, we are innocent until proven guilty. An exception (possibly the only exception) presumes guilt of the well driller if a water supply within 1,000 feet of an oil or gas well is degraded after that well is drilled.

As a precaution, oil and gas operators sample all water supplies within 1,000 feet of a well before drilling to establish a base line. If water degradation is claimed, a new sample is analyzed and the state Department of Environmental Protection investigates. If the claim is valid, DEP issues a water replacement order to the well operator, requiring the operator to restore water of equal quality and quantity.

Let’s consider the financial impact to the state. The Marcellus drilling boom in only the last three years has created an estimated 50,000 to 60,000 new jobs in Pennsylvania. Most of the jobs average $50,000 a year.

While some technical jobs have been filled by non-residents, more than 90 percent of the jobs have been filled by Keystone State residents. And the non-residents working in our state rent hotel rooms, eat at restaurants, and buy gasoline and clothing here.

Assuming the 2010 Pennsylvania state income tax rate of 3.07 percent, 50,000 jobs at $50,000 a year equate to $76.7 million in state income tax. Most industry managers expect the number of workers to triple within five years. That would be $230 million in new income tax from oil and gas workers by 2014.

The state recently received several hundred million dollars from lease sales, just for the right to drill. The state will also receive a royalty averaging 15 percent. The projects I have seen on state land in northern Pennsylvania might be producing 500,000 mcf (thousand cubic feet) per day of natural gas by 2012. At $5/mcf and 15 percent royalty, the state would receive $375,000 per day from just the projects that I know of. That is $136 million per year from just a few projects.

There probably are 10 similar projects on state land throughout the commonwealth, if not more, which could mean more than $1 billion per year to the state.

This doesn’t even consider the economic benefit to the thousands of farmers who have leased their land. Some leases were signed years ago, but many are being signed today with bonuses (“delay rentals”) of up to $5,000 per acre.

So, a farmer with 100 acres can receive up to $500,000 just for the right to drill, plus a 12.5 percent (or more) royalty. Over 20 years, a farmer could receive over $3 million in royalty payments, which would mean $115,125 in state income tax from just one well.

At least 1,172 Marcellus wells were permitted in 2010, and 768 were drilled in 2009.

Assuming that 1,000 Marcellus wells were drilled in 2010, the state income taxes paid by the landowners on their royalties alone might end up being $115 million over the life of the well.

Most industry experts agree that Pennsylvania could become the country’s largest producer of natural gas within five years. The economic benefits to our state could be like nothing we’ve ever seen.

Our industry is heavily regulated and controlled, and DEP has added many inspectors to ensure that drilling operations comply with all state and federal laws.

While I support our industry, I also support the need to minimize environmental impact.

Matthew E. Vavro of Butler Township is president of VAVCO LLC, which provides engineering and project management to the natural gas industry.