Gas companies eye Cameron

N a t u r a l g a s companies are looking to tap into Cameron County's v a s t reserves. T h r e e f a c t o r s have fallen into place, much like a slot machine, to send gas producers into the field in search of

financial return: higher prices, increased demand and improved extraction technology.

Steven Rhoads, executive director of the Pa. Oil and Gas Assn., said drillers are interested in shallow natural gas caches that were originally explored a quarter-century ago.

He added that these pockets of gas, located in remote areas of Cameron County, were not economical to tap in prior years.

"With the increased demand for domestic energy production, we will probably be seeing more gas-producing activity in our area in the immediate future," according to the Pa. Bureau of Forestry regional office in Emporium.

Much of the natural gas that producers would like to tap is located underneath state forest land. Dominion Transmission Corp. recently drilled a well on one of its tracts leased from the state on Steam Hill Road, near the Cameron/Potter County border.

In some cases, the coal, oil and gas rights under state forest land are owned by private interests. Seneca Resources has been active in Elk County, drilling 19 wells to access natural gas it owns in the East Branch Dam, Briggs Hollow and Naval Hollow areas. Seneca also plans to drill in Byrnes Run, Fox Township.

Another private owner, Homeland Energy Ventures, will soon sink 14 wells at the lower end of the Trout Run drainage in Elk County's Benezette Township.

When private companies remove trees for drilling sites and access road construction, the state receives reimbursement at fair market value. Drilling activities and road-building are monitored by local conservation districts and the Pa. Dept. of Environmental Protection.

DEP has issued a modernday record number of permits for drilling in the Cameron, Potter and Elk counties.

In 2006, about 120 permits were issued for Potter County and 16 for Cameron. For gas drilling only, 45 permits were issued for Potter and 13 for Cameron.