The Commonwealth of Pennsylvania oversees shale gas development
responsibly under its effective oversight and comprehensive set of
laws and regulations and is the recognized global leader when it
comes to responsible and objective regulation of this
Through ACT 13, which went into effect in 2012, Pennsylvania has
enhanced environmental protection standards, which we meet and
Where will the access roads to the well pads be located
and which public roads will be the most heavily
CONSOL Energy has no plans to construct new public roads on
airport property and will be able to rely on existing roads without
any disruption to daily airport traffic. The drilling plan does
call for construction of several access roads located adjacent to
Will airport access and parking be
Where is CONSOL Energy getting the water it needs to
support its drilling activity?
CONSOL Energy will utilize several water sources to support the
PIT drilling project. The company is currently in discussions with
local municipalities to serve as sources of fresh water in support
of our drilling operations at Pittsburgh International Airport.
This will result in significant additional income for the townships
and is consistent with our commitment to partner with and reinvest
in the communities where we operate.
CONSOL Energy is currently reusing 100 percent of the fracturing
fluids and water produced with the natural gas and will do so
during the airport project. This reduces our freshwater consumption
as well as our need for water trucking, transfer and disposal. We
also use water pipelines to lessen the need for tanker trucks often
used for water transport.
How will the ACAA use the money CONSOL paid or the lease
at the airport? When can we expect to see improvements at the
The initial payment of $50M, which was paid by CONSOL Energy to
Allegheny County upon the signing of the lease in March 2013, will
be used by the ACAA to lower bond rates that will enable the
airport to reduce gate fees in an effort to attract more flights to
Pittsburgh International Airport. We are already seeing a positive
impact. On July 1, 2013, as a direct result of CONSOL Energy's
initial payment under the ACAA lease agreement, the average cost
per enplaned passenger was reduced by 3.8 percent, landing fees
were reduced by 12.2 percent, terminal fees were trimmed by 0.3
percent, and ramp fees were slashed by 5.2 percent. Reducing
operating costs for airlines serving Pittsburgh International
Airport, will position PIT to become more competitive and
marketable to major airlines and can contribute to improving air
service in Pittsburgh.
These funds will also be used to fund capital projects that area
residents will see right away, including road paving at the airport
and a major renovation of the central rotunda in the airside
terminal, which is underway.
How much money will be generated by oil & gas
development at PIT?
CONSOL Energy cannot accurately estimate how much gas and
related royalty revenue will be generated by the PIT lease until we
begin the completions and production phases of development, which
we anticipate will be in 2015. Generally, the total deal could be
worth $1 billion.
What we do know is that Act 13 has generated more than $202
million through an impact fee assessed on unconventional wells
drilled in 2012. The state also collected more than $204 million
last fall, bringing the total to more than $406 million in less
than eight months, with the majority of the money going to local
Nearly 240,000 Pennsylvanians are employed directly and
indirectly within the oil and gas industry. The $204.2 million in
impact fee revenue is also in addition to the over $1.8 billion in
corporate, sales and personal income taxes generated by the
industry since 2006, including $303 million last year.
CONSOL Energy paid over $15 million dollars in impact fees for
its combined 2011 and 2012 drilling activity. That number will grow
as development continues and we are confident that the PIT project
will be a significant contributor.
Additionally, the abundance of low-cost natural gas has driven
electric and natural gas prices down nearly 40 percent since 2008,
saving Pennsylvania businesses and consumers over $2 billion
annually. After importing 75 percent of its natural gas just five
years ago, Pennsylvania has become a net exporter of gas for the
first time in more than 100 year.
How many jobs will the airport drilling project create?
How can I apply?
CONSOL Energy is adding to its workforce to support the
significant projected growth of its Marcellus drilling program,
which includes the airport project. The company anticipates hiring
50-75 people in its Gas Division over the next six quarters, with
openings primarily for drilling and completions engineers.
The multiplier for each of those hires is 4-6 contractor or
support jobs for each full time job, so the total number and
variety of job openings increases dramatically.
Qualified candidates interested in applying for CONSOL Energy
positions should visit the careers page of the company's Web site
at www.consolenergy.com/careers or CONSOL
Energy's Careers Facebook page.
Where will CONSOL dispose of its
CONSOL Energy is committed to safely and responsibly managing
hydraulic fracturing fluids, wastewater and produced water.
After the hydraulic fracturing process is complete and the well
begins to produce natural gas, a portion of the water used during
the fracturing process also flows back to the surface impoundment.
In our Marcellus operations, this water is stored temporarily in
lined pits until it is reused in future fracturing jobs.
CONSOL Energy is currently reusing 100 percent of the fracturing
fluids and water produced with the natural gas. This reduces our
freshwater consumption as well as our need for water trucking,
transfer and disposal. We also use water pipelines to lessen the
need for tanker trucks often used for water transport. Some
wastewater will be transported off site and disposed of in UIC
Well sites are designed to protect the land surface, and we take
great pride to restore the land to its original contours after
Will there be UIC wells built on airport
How long will it take to drill each pad?
It depends on lateral count on each pad, but typically 4 weeks
per well (2 weeks per vertical and 2 weeks per horizontal).
How long will the entire drilling project
4 to 4.4 years.
What is the schedule for the drilling pads?
The tentative schedule calls for Pad 2 to be drilled first,
followed by pads 1, 4, 6, 3, and 5, in that sequence. We anticipate
that drilling will begin on Pad 2 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.
How many personnel will work on each pad?
This is determined by the phase of the operation, but typically
15 to 20 people are on-site during the drilling and completion
What is the status of Pad #2 near Imperial Point? Was
that location changed to make sure there would be no noise
CONSOL Energy has 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 from the current pad locations
will meet the township ordinance and will not result in a
What about noise impacts from Pad #6?
Again, based on the early results of the sound study we just
completed and the fact that Route 376 lies between Pad #6 and the
nearest housing development, we do not believe there will be any
significant impact to residents of that development.
Will there be any traffic issues associated with Pad
We do not anticipate that Pad #3's location in the vicinity of
Hookstown Grade Road will create any traffic issues. However, if
that potential arises, we will conduct a traffic study at that
location and if the results recommend mitigation, those plans will
How will the PIT drilling activity impact property
There are no patterns or trends to suggest that natural gas
development is impacting, or reducing, property values in and
around where these activities occur. Broadly speaking, shale
development is providing a huge boost to landowners and
A recent study done by Penn State University provides in-depth
analysis of changes in market value at the county level and show no
real pattern associated with Marcellus Shale drilling activity.
There is no clear pattern to average changes in market value or
assessed value, relative to the level of drilling activity.
What are plans for processing the natural
CONSOL Energy is still in the process of confirming a midstream
partner to build and manage a gas processing facility. We
anticipate that we will have this finalized during Q3 of this year
as it will be incorporated in the final Environmental
What about the Upper Devonian wells?
There is future potential to drill Upper Devonian wells and
CONSOL Energy is hopeful that this horizon can be built into its
operational objectives for the airport project. However, the
company will not have clarity on its potential until it begins
drilling and can conduct analysis of core testing, which is
estimated to occur in Q3 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
What is your approach to road repair and
Consistent with our core values of safety, compliance and
continuous improvement, CONSOL Energy enters into Excess
Maintenance agreements with every municipality where we operate.
Upon approval/agreement between municipalities and CONSOL, these
contracts are signed and bind us to the terms of the agreement,
which typically require that we, as the operator, repair roads
during and upon completion of our operations if they are damaged
and become unsafe to residents and motorists. We are proactive and
do not wait for unsafe or damaged conditions to occur. When dealing
with the townships (in CPA) we do one of two things: if we use the
road as is, we bond it, but more likely than not we draft a one
page document requesting permission at our cost to upgrade the road
ahead of our operations so we can avoid any downtime.
Why did CONSOL make the decision to not build more roads
as part of the project?
CONSOL Energy will be able to rely on existing roads without any
disruption to daily airport traffic to operate on the airport
property. These existing private airport roads will be upgraded at
CONSOL Energy's sole expense. The drilling plan does call for
construction of several access roads located adjacent to airport
Which entity is monitoring air emissions at the well
The Allegheny County Health Department. CONSOL will periodically
provide to them reports on air emissions and computer models upon
request. Air emissions will be quite low at the wellhead after
construction due to the fact that are few pieces of equipment there
- only the wellhead and tank for water, all of the gas and natural
gas liquids will be pumped offsite.