August 12, 2010
Gas drillers: New road-repair rules too expensive
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MORGANTOWN, W.Va. -- West Virginia Transportation Secretary Paul Mattox wants natural gas drilling companies to anticipate and pay for the wear and tear they're causing West Virginia's country roads, many of which have "more or less evolved from a mere wagon trail."

At least one industry official, though, complains that the new rules -- issued in an Aug. 4 memo and reaching gas companies this week -- are vague, unreasonable and potentially too expensive for some to bear.

"These go well above and beyond what is necessary to safeguard roadways in the state, and we are assessing our response," said Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia.

Gas companies have no choice but to rely on rural roads as they rush to tap the rich Marcellus shale reserves, but residents are frustrated by the increased volume of traffic and damage, Mattox wrote, and so are county road crews, whose budgets are geared toward regular maintenance, not major repairs and construction.

His memo requires gas project planners to meet with local highway supervisors and agree on various obligations for widening, paving and drainage -- before, during and after a drilling job.

Companies would have to post road-repair bonds ranging from $50,000 to $100,000 per mile, depending on whether the road is topped with gravel, tar and chip, or pavement. Those amounts could increase if bridges are in the agreed-upon truck routes.

"Let's say you were 10 miles off the main highway to a well site. That's a million-dollar bond. The bond's more than three times as much as the well," Burd said. "This has the potential of being catastrophic in nature to conventional wells, and it could be very harmful to Marcellus wells."

Burd also complained that the rules are unclear about things such as who must purchase right of way, who's responsible for the physical completion of the work and whether that work must comply with state purchasing laws if it's done by the gas companies.

Marcellus shale underlies Ohio, West Virginia, Pennsylvania and New York, and drilling is in high gear in Pennsylvania and Northern West Virginia. The gas is locked in tightly compacted rock a mile underground, and freeing it requires unconventional horizontal drilling technologies and vast amounts of water.

That means traffic in the form of trucks carrying large equipment and water on roads not built to withstand the weight or damage.

The Pennsylvania Department of Transportation also is considering whether to increase bond limits for its roads.

The current requirements -- $6,000 per mile for an unpaved road, $12,500 per mile for a hard-surface road -- do not protect taxpayers, given the far-higher cost of repairing roads today, said Elam Herr, the assistant executive director of the Pennsylvania State Association of Township Supervisors.

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Gas drillers: New road-repair rules too expensive

MORGANTOWN, W.Va. -- West Virginia Transportation Secretary Paul Mattox wants natural gas drilling companies to anticipate and pay for the wear and tear they're causing West Virginia's country roads, many of which have "more or less evolved from a mere wagon trail."

At least one industry official, though, complains that the new rules -- issued in an Aug. 4 memo and reaching gas companies this week -- are vague, unreasonable and potentially too expensive for some to bear.

"These go well above and beyond what is necessary to safeguard roadways in the state, and we are assessing our response," said Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia.

Gas companies have no choice but to rely on rural roads as they rush to tap the rich Marcellus shale reserves, but residents are frustrated by the increased volume of traffic and damage, Mattox wrote, and so are county road crews, whose budgets are geared toward regular maintenance, not major repairs and construction.

His memo requires gas project planners to meet with local highway supervisors and agree on various obligations for widening, paving and drainage -- before, during and after a drilling job.

Companies would have to post road-repair bonds ranging from $50,000 to $100,000 per mile, depending on whether the road is topped with gravel, tar and chip, or pavement. Those amounts could increase if bridges are in the agreed-upon truck routes.

"Let's say you were 10 miles off the main highway to a well site. That's a million-dollar bond. The bond's more than three times as much as the well," Burd said. "This has the potential of being catastrophic in nature to conventional wells, and it could be very harmful to Marcellus wells."

Burd also complained that the rules are unclear about things such as who must purchase right of way, who's responsible for the physical completion of the work and whether that work must comply with state purchasing laws if it's done by the gas companies.

Marcellus shale underlies Ohio, West Virginia, Pennsylvania and New York, and drilling is in high gear in Pennsylvania and Northern West Virginia. The gas is locked in tightly compacted rock a mile underground, and freeing it requires unconventional horizontal drilling technologies and vast amounts of water.

That means traffic in the form of trucks carrying large equipment and water on roads not built to withstand the weight or damage.

The Pennsylvania Department of Transportation also is considering whether to increase bond limits for its roads.

The current requirements -- $6,000 per mile for an unpaved road, $12,500 per mile for a hard-surface road -- do not protect taxpayers, given the far-higher cost of repairing roads today, said Elam Herr, the assistant executive director of the Pennsylvania State Association of Township Supervisors.

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