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Municipal officials discuss gas drilling

Session at BC3 draws 60-plus

BUTLER TWP — With natural gas drilling becoming more prevalent in Butler County each year, a meeting Tuesday night gave municipal officials a chance to learn more about the industry and how it can benefit residents.

Governmental officials were invited to the dinner at Butler County Community College’s Founders Hall to discuss gas drilling issues such as water purity, economic impact and emergency response.

Economic impact was a key point for many of the more than 60 attendees, since 2012 marked the first time that drilling impact fees were paid by drillers and distributed by the state to benefit communities that host oil wells.

Walt Walowen, a Mercer Township supervisor, said 11 wells are being drilled in the township.

Although Mercer Township received only about $1,000 in drilling impact fees in 2012, Walowen said that when the 11 wells — all on the same drilling pad — are operational over the next two years “I expect that will change.”

“That’s why I’m here tonight, to see how we can spend that impact money,” he said.

Walowen said he supports lowering township residents’ taxes and offsetting the revenue lost with impact drilling fees, a provision permitted by the state.

Dan Hay, a Summit Township supervisor, said one well was operating in the township last year, resulting in about $16,000 in impact fees. Eventually, that money is destined for infrastructure repairs, such as road and drainage reconstruction, or the sewage installation project in Herman.

“You have to add up those fees for a few years to be able to do anything,” Hay said.

“We’re on our fourth well, so far, this year and we have another one or two being constructed.”

The meeting marked the third year for the event, sponsored by Northwest Savings Bank and XTO Energy in cooperation with BC3, Penn State Extension, the Butler County Tourism and Convention Bureau and Butler County Council of Governments.

Each year, it draws people trying to get a grip on an industry still in its infancy in Western Pennsylvania.

Bob Jesteadt, a first-year supervisor in Muddy Creek Township, said he attended the meeting to educate himself on industry standards and the interaction between drillers and municipalities.

He added that the township has not determined a specific purpose for any impact fees it might gain from drilling, but has ongoing talks on the topic.

Municipal officials also used Tuesday’s meeting to weigh in on their relationships with drillers in the county, which include Shell, Rex Energy and XTO Energy. More than 100 wells have been drilled in Butler County in the past two years, according to the Penn State Extension.

“We have been dealing with Shell Oil in (Mercer Township) for about a year. They’ve already reconstructed several of our roads and seem to work very hard working to do what they say they will do,” Walowen said.

Jesteadt said driller Rex Energy has had “no complaints” from Muddy Creek Township residents.

Hay said XTO, which operates in Summit Township, has “treated us very well.”

“Luckily, we have not had any problems, and they have helped us out with a few of our projects,” he said.

While Hay admitted that those projects, like reinforcing roads to handle the weight of gas industry vehicles, may be mutually beneficial, that does not detract from their worth to the municipality or its residents.

Ron Flatt, supervisor chairman in Center Township, said the supervisors there have not pinpointed where impact fees will be allocated. No gas wells are operational in the township.

“We want to use it for affects specific to Marcellus Shale drilling,” he said.

Flatt also said drillers have been “very good, very willing to talk” regarding the supervisors’ concerns.

Both the energy companies and the municipalities benefit from drillers taking a proactive approach to information dissemination, each said.

XTO Energy spokesman Lorie Jackson said the company sends a weekly e-mail to each municipality in which it operates, detailing well pad activity, construction, maintenance and any other drilling-related activities “so there are no surprises.”

The company also works with a community advisory panel, a group of about 28 government leaders, and as of last week, three high school students, dedicated to keeping themselves and their peers updated on the latest natural gas drilling industry developments.

Linda Zerfoss, Penn Township manager, is on that panel.

“We do a lot of question-and-answer. If I have a problem, it may be something another municipality has experienced and can shed some light on,” she said.

“We talk openly with other municipalities about what each is experiencing.”

This session was the second in a three-part series that ends today when businesses, suppliers, training entities, contractors, and industry representatives. were to meet from 10 a.m. to 2 p.m. at the college.

The first session on Monday night was for the public.

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