Water Quality Likely to Decline in Appalachian Basin

Water quality is likely to decline throughout New York, Pennsylvania, Ohio, and West Virgina as hydrocarbon resource companies develop the Marcellus Shale formation in the Appalachian Basin.

Fort Worth's Range Resources (RRC) was the first company to highlight the potential of the Marcellus Shale with three horizontal pilot wells RRC drilled in Pennsylvania.

Developing Marcellus Shale wells, which are drilled to a depth of about 8,000 feet, involves the use of hydrofracturing. Millions of gallons of water (e.g., between 3 to 9 million) are required for each well. The water from the drilling process becomes contaminated with brine, metals, hydrocarbons, and radioactivity. Although the water from the drilling process is required to be contained and treated, currently there are no treatment facilities located in the Appalachian basin.

RRC is currently producing 30 Mm cf/d, but plans to increase that to 300 Mm cf/d as it develops its 850,000 acres of Marcellus Shale leases throughout New York, Pennsylvania, and West Virginia. Other companies currently exploiting the formation include Chesapeake Energy (CHK), Atlas Energy Resources (ATN), Cabot Oil & Gas (COG), Linn Energy (LINE), Exco Resources (XCO), and Rex Energy (REXX).

Source:
http://www.fwbusinesspress.com/display.php?id=8361
http://www.aapg.org/explorer/2008/03mar/marcellus.cfm
http://www.srbc.net/whatsnew/docs/MarcellusShaleandGasWellDrillingPowerpoint061208.pdf
http://seekingalpha.com/article/68716-investing-in-the-marcellus-shale
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