DEP moves against gas driller

$240,000 in fines, orders wells plugged, suspends new permit reviews HARRISBURG — The Department of Environmental Protection last week issued a sweeping order requiring Cabot Oil & Gas Corp. to take extensive actions and help the residents of Dimock Township, Susquehanna County, who have been affected by the company’s drilling activities. Under the consent order and agreement, Cabot must plug three wells within 40 days that are believed to be the source of migrating gas that has contaminated groundwater and the drinking water supplies of 14 homes in the region. It must also install permanent treatment systems in those homes within 30 days. Additionally, DEP Secretary John Hanger said his agency is immediately suspending its review of Cabot’s pending permit applications for new drilling activities statewide until it fulfills its obligations under the order issued today. Cabot also is barred from drilling any new wells for at least one year in the Dimock Township area. The action follows Cabot’s failure to abide by the terms of a November 2009 consent order and agreement with DEP. “Cabot had every opportunity to correct these violations, but failed to do so. Instead, it chose to ignore its responsibility to safeguard the citizens of this community and to protect the natural resources there,” said Hanger. “I have ordered that all of Cabot’s permit applications for further drilling in any region of the state be put on-hold, indefinitely, until the region’s homeowners receive their new water treatment systems, the fines are paid, and the wells are plugged. During recent inspections, DEP identified five additional defective Cabot gas wells and another home water supply that has been affected by gas migration, bringing to 14 the number of impacted water supplies in the Dimock area. Hanger said DEP also will continue to investigate another 10 Cabot gas wells in the Dimock area over the next 85 days that could be sources of migrating gas and determine whether Cabot should be ordered to plug some or all of those wells. As part of the order, Cabot has also paid a $240,000 fine to the commonwealth, which has been deposited into the state’s well-plugging account. It also must pay $30,000 per month beginning in May until DEP has determined that the company has met its obligations under the 2009 order. Cabot Oil & Gas Corp. is headquartered in Houston, Texas with a mailing address in Pittsburgh. Dimock resident, Congressman Chris Carney (PA-10) commented. “I applaud the Department of Environmental Protection’s ongoing investigation into Cabot’s gas drilling in Susquehanna County. The natural gas boom in northeastern Pennsylvania has provided our region with a tremendous economic opportunity, but one that requires strong oversight by the Pennsylvania DEP. I have long said that we must err on the side of caution when it comes to how gas drilling affects our drinking water. The DEP’s findings of defective gas wells and impacted water supplies in Dimock Township show that Cabot and its subcontractors have much more work to do to improve their drilling operations in our region and instill confidence among residents that their operations don’t come at a cost to clean water supply.” For more, visit www.depweb.state.pa.us .

The Department of Environmental Protection has a constitutional and statutory obligation to protect Pennsylvania’s environment. That right is not for sale and is not subject to compromise.” DEP Secretary John Hanger