Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Consol Outlines Drilling Plans at Pittsburgh Airport
PITTSBURGH -- Consol Energy Inc. could drill as many as 47 Marcellus shale wells on six well pads on property at the Pittsburgh International Airport, and then drill into the Upper Devonian shale formation from the same well pads, the company announced this morning.
Consol has entered into a 20-year, $46.3 million lease with the Allegheny County Port Authority that enables the company to drill on airport land. Should the wells prove profitable, the port authority ultimately could receive $500 million in royalties, officials estimate.
During a news conference, Consol and the port authority shared the proposed drilling plan, which includes six well pad locations and three centralized water impoundments. The plan proposes a total of 47 Marcellus wells, with the future potential to drill Upper Devonian wells.
"Consol Energy and ACAA have been working diligently over the past several months to develop a drilling plan that we are confident will allow us to safely and compliantly access the natural gas located at the airport property while minimizing our environmental and operational impacts," said Nicholas J. DeIuliis, president of Consol Energy. "This project represents a once-in-a-lifetime opportunity to generate significant economic benefits for the residents of Allegheny County and we take our responsibility to get it right very seriously. We intend to make it a flagship for the region that everyone can be proud of."
Construction of the well sites, centralized impoundments and pipelines will begin in second quarter of 2014. Drilling activity is expected to begin in July 2014 with two vertical rigs. Upon the start of horizontal rig operations, the vertical rig count will be reduced to one and both units will run for the duration of the project through 2018, the company said. Approximately 17 miles of gas line (11 on port authority property) and 12 miles of water line will be utilized to deliver gas to market and provide water for well completions.
Consol said it will not have clarity on its potential until it begins drilling and can conduct analysis of core testing, which is estimated to in the third quarter of 2014. Any development of the Upper Devonian formation would occur on the existing pad locations and utilize the same infrastructure to maintain operational efficiency, minimize environmental impacts, and maximize production potential, the company said.
"The economic opportunity that this project brings to our region is unparalleled,” said Rich Fitzgerald, Allegheny County chief executive. This is a huge public works project, totaling nearly $500 million, and will be putting many of our people to work. The expected revenues will allow us to lower costs at the airport and attract additional flights. It ensures that our taxpayers do not have to pick up additional costs at the airport."
Consol and the port authority are conducting the environmental assessment that will be reviewed by the Federal Aviation Administration. The document is scheduled to be submitted to the FAA for approval in December.
"We are at an important point in the planning process where we encourage residents to learn more about oil and gas development plans at Pittsburgh International Airport. As part of the environmental assessment process, public comments and questions are being accepted at FlyPittsburgh.com and will be included in the FAA proposal," said David Minnotte, Chairman, Allegheny County Airport Authority.
Seismic testing at Pittsburgh International Airport is scheduled to begin in late October. Survey and recording crews will gather data over a 1one- to two-week period that will parallel approximately 33 miles of surrounding roadways. Consol also engaged a consultant to conduct a sound study, which entailed recording sound levels at a range of lengths from several of its current Marcellus locations during various stages of development. This process has been completed and early results indicate that drilling activities will meet the township ordinance and will not result in a significant impact, officials said.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.