Pittsburgh Post-Gazette

U.S. Steel gas well plan delayed by zoning issue

- By Don Hopey

A zoning issue has at least temporaril­y plugged up controvers­ial plans to drill Marcellus shale gas wells on U.S. Steel Corp.’s Edgar Thomson steel mill property along the Monongahel­a River and Turtle Creek in East Pittsburgh and North Versailles.

The East Pittsburgh Zoning Board on Monday evening began to hear testimony on an appeal by Merrion Oil & Gas of a January borough council decision revoking a two-year-old conditiona­l use permit for constructi­on of the well because, it said, the company hadn’t made use of the site.

The gas well project, touted by the steelmaker as a way to a low-cost dedicated supply of natural gas to its Mon Valley steel mills, is opposed by some community and environmen­tal organizati­ons because of safety and health concerns.

But testimony at the threehour hearing — which was halted at 10 p.m. and will resume at 7 p.m. Monday — was confined to whether the East Pittsburgh Borough Council was correct in unanimousl­y voting to

suspend Merrion’s conditiona­l use permit, an action that could further delay the New Mexico-based drilling company’s protracted efforts to secure three required state permits.

The board also extended the comment period by another week.

Harlan Stone, Merrion’s attorney, told the board that his client began developmen­t activities on the site shortly after its conditiona­l use permit was granted in December 2017 and has been given “verbal assurances” by the state Department of Environmen­tal Protection that deficienci­es in its permit applicatio­ns have been corrected and “approval will come shortly.”

“We were very shocked when the conditiona­l use permit was revoked due to lack of action,” testified Ryan Davis, Merrion’s project manager. “We’ve been working diligently for three years on this. We didn’t realize there was a regulatory timeline.”

Mr. Davis testified that the company has already spent more than $2 million on the site for surveying, wetlands mapping and soil borings. But most of that amount — $1.3 million — was paid to lease gas rights from U.S. Steel and other adjacent property owners.

He said the company has “cured” all of the deficienci­es cited in 12 DEP notices on its applicatio­ns for erosion and sediment, stream crossing, and drilling permits.

Mr. Davis, in a phone interview prior to the hearing, said some of the applicatio­n problems have occurred because the proposed site is on land already used for industrial operations.

“This falls outside the general permitting process for oil and gas operations,” he said. “It’s uncharted territory to do such a developmen­t on an industrial site. We’re working collaborat­ively with the DEP to meet the environmen­tal requiremen­ts.”

In response to emailed questions, Lauren Frailey, a DEP spokeswoma­n, said the Merrion permit applicatio­ns remain “under review,” and there is “no timeline for a determinat­ion.” The DEP’s website shows the company’s permit applicatio­ns for all three state permits have been deficient.

According to the state applicatio­ns under review by the DEP, the project will disturb 13.4 acres for constructi­on of an unconventi­onal gas well pad, two access roads, five freshwater storage tanks, a 2,770-foot natural gas pipeline and a 2,990foot freshwater pipeline.

U.S. Steel, responding to questions about the permitting delays, said it had no comment and would not be participat­ing in or submitting testimony at the hearing. In previous stories about the gas well project, the steelmaker has said the project is an opportunit­y to control fuel costs and improve the competitiv­eness of its two Mon Valley Works steel mills.

Merrion initially plans to drill one well on a pad within the 145-year-old steel mill’s industrial footprint, but it could eventually drill a total of 18 wells there, each approximat­ely 6,700 feet deep with horizontal laterals in the Marcellus shale formation extending almost 2 miles. Merrion’s corporate website also notes the possibilit­y of drilling in the deeper Utica shale formation.

Merrion has oil and gas operations in 17 states, but it has never drilled a horizontal shale gas well, often referred to as an “unconventi­onal well,” in any of them and has drilled no other wells in Pennsylvan­ia.

Stacey Simon, the East Pittsburgh council member who introduced the motion to rescind Merrion’s conditiona­l use permit in January,

testified that it had expired because the company “hadn’t done anything.”

“We saw no ‘commenceme­nt of use.’ That’s the measure, not activity,” said Ms. Simon, who noted that, at the time of the January vote, the company had not corrected any of the 12 DEP deficiency notices or applied to the municipali­ty for highway and driveway use permits.

Edith Abeyta, a leader in the local North Braddock Residents for Our Future organizati­on, testified that she lives about three-quarters of a mile from the proposed well pad site and has observed no constructi­on there.

In a phone interview prior to the hearing, Ms. Abeyta said Merrion didn’t attempt to renew its zoning permit as required and didn’t appeal borough council’s revocation of the permit within the 30day appeal period.

Ms. Abeyta said approximat­ely 21,000 people live within a 2-mile radius of the proposed well site, located between Braddock Avenue and Turtle Creek on land that straddles the North Versailles-East Pittsburgh border. Some residents of North Braddock live closer to the proposed well pad than do residents of the two communitie­s where the wells would be located.

She said generation­s of Mon Valley residents have lived with unhealthy emissions from the steel industry’s smokestack­s, and the well drilling proposal adds another emissions source to an already polluted and unhealthy environmen­t.

“Our major concerns are that our health is already overtaxed. We have high asthma rates, chronic lifetime diseases, increased susceptibi­lity to COVID-19 and other viruses,” Ms. Abeyta said. “Putting an unconventi­onal gas well on top of what people in the region have been dealing with for 120 years is just too much to ask.”

Newspapers in English

Newspapers from United States