MUB and energy company settle most of their disputes

From an Article by David Beard, Morgantown Dominion Post, TheDPost.com, May12, 2015

Morgantown, WV -- Morgantown Utility Board (MUB) and Northeast Natural Energy (NNE) have largely resolved their differences over water safety issues related to three planned horizontal gas wells at the Morgantown Industrial Park.

MUB General Manager Tim Ball said in an email Monday, May 11, “MUB and NNE have discussed the planned drilling at MIP, and have resolved all the technical details.”

Two matters remain unresolved. MUB had wanted Northeast to provide a $1 million bond payable to MUB to cover potential disruptions of the water supply, and wanted Northeast to list MUB as an additional insured on its insurance coverages.

Those issues were unresolved and have been left at an “agree to disagree” status, Ball said. Northeast President Mike John and Northeast’s Vice President for Regulatory Affairs Brett Loflin echoed that.

“We’re confident we have everything in place” to protect the water and the environment, John said.

Because the well pad is immediately upstream of MUB’s Monongahela River water intake, MUB began discussions with Northeast back in October over several safety concerns, primarily well casings, berms and liners, water testing and the composition of the drilling fluid.

“Subsequent discussions,” Ball said, “have clarified that secondary containment and impervious liners will be provided to the same standard as was used in 2011. Those discussions also persuaded us that the details proposed by NNE regarding casing pipes and grouting thereof were appropriate.”

On Monday, John said, “We feel pretty good about the project. There will be a lot of opportunities for folks to get a good look” at the operations.

Ball had been concerned that synthetic drilling fluid might pose more harm than water-based, in case of a spill. But email exchanges with WVU’s professor Tim Carr, Marshall Miller professor of energy, assured him that the synthetic fluids are biodegradable and eco-friendly.