Luzerne County Government

February 2, 2010

County eyes Moon Lake Park water for gas drilling

Also, officials still interested in permitting drilling at the Plymouth Township park.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Luzerne County officials are exploring the possibility of allowing a company to tap lake water from Moon Lake Park for natural gas drilling, but no agreement has been reached, county Chief Clerk/Manager Doug Pape said Monday.

The county is also still interested in permitting drilling at the Plymouth Township park, but there is no agreement, Pape said.

“Even if an agreement is reached, we are still looking for a park manager, whether the park is chosen as a drill site or not,” Pape said.

The drilling and water agreements would have to be separate, he said.

The park officially closed Thursday because commissioners stripped funding for staff and other expenses from the 2010 budget, saying that they could not justify non-essential expenses with a property tax increase.

Commissioners sought proposals from entities interested in operating the park at no expense to the county, but there were no takers.

The park might reopen someday when county finances improve, but there was no timetable, commissioners said.

Commissioner Chairwoman Maryanne Petrilla said she is willing to consider any offer to generate revenue, as long as the park’s recreational atmosphere is not compromised.

The park’s 48-acre, spring-fed lake holds millions of gallons of water and is 13.5 feet in its deepest spot, county officials have said. All park water drainage pipes also feed into the lake.

Drillers need water to help fracture rock to release gas.

Petrilla said she would not support any offers that would drain or pollute the lake.

She said she has not given up hope that some park services will be restored because several outside entities are still interested, even though they did not respond to the county’s proposal. These entities are currently reviewing financial records on park costs, she said.

Petrilla said an entity, if found, could restore camping and allow biking, hiking and access by other community groups.

The county had sought bids to drill at the 650-acre park early last year but received no responses.

The request for proposals was structured to give the county several revenue sources and control over where drill pads would be located in the park.

The county would have received income from: the rental of the drilled acreage; the sale of the timber felled when preparing the drilling sites; other marketable fluids, such as methane or oil, that are extracted from the drilling; and storage fees for gas that is stored when an exploratory well is drilled, but capped until it can be hooked up to a pipeline, he said.

All bidders would have had to offer at least 16 percent royalties on the price at the well head for marketable fluids it produced.

The winning bidder would have offered the highest initial-year rental for the acreage, which was set at a minimum of $500 per acre. The chosen bidder would have had to agree to start drilling within a year and ensure the site was restored when drilling concluded.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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