Unconventional natural gas AUTHORS Kristin M. Carter Pennsylvania Geological resources in Pennsylvania: Survey, 400 Waterfront Drive, Pittsburgh, Penn- sylvania 15222; [email protected] The backstory of the modern Kristin Carter has been a geologist with the Pennsylvania Geological Survey since 2001 and Marcellus Shale play currently serves as chief of the Petroleum and Subsurface Geology Section in Pittsburgh, Penn- sylvania. Kristin researches oil, gas, and subsurface Kristin M. Carter, John A. Harper, Katherine W. Schmid, geology for the Commonwealth and also enjoys and Jaime Kostelnik petroleum history. Before her employment with the Survey, Kristin worked for nearly a decade in the environmental consulting field, where she investigated matters of groundwater flow and ABSTRACT quality, contaminant fate and transport, and mine Pennsylvania is not only the birthplace of the modern petroleum in- reclamation. Kristin received her M.S. degree in dustry but also the focus of the modern Marcellus Shale gas play. For geological sciences from Lehigh University in 1993 and her B.S. degree in geology and environ- more than 150 yr, Pennsylvania has experienced a rich history of oil mental science (double major) from Allegheny and gas exploration and production, witnessed the advent of modern College in 1991. petroleum regulations, and now sits deep in the heart of the largest domestic shale gas play the United States has ever seen. Although a John A. Harper Pennsylvania Geological known source rock for decades, the Marcellus Shale was not consid- Survey, 400 Waterfront Drive, Pittsburgh, Penn- ered a viable gas reservoir until Range Resources Corporation sylvania 15222; [email protected] (Range) discovered the play with its completion of the Renz No. 1 John Harper has been a geologist with the Penn- well in Washington County in October 2004. Using horizontal dril- sylvania Geological Survey for more than 34 yr ling and hydraulic fracturing techniques used by operators working and currently serves as chief of the Geologic Re- the Barnett Shale gas play, Range has gone on to complete hundreds sources Division. His duties include overseeing the work of the Survey’s Mineral Resource Anal- of horizontal shale gas wells in Washington County alone. Other op- ysis and the Petroleum and Subsurface Geology erators have followed suit in counties from one corner of the state to sections, which have been studying various geo- the other, and as of June 2011, the Commonwealth has issued nearly logic resources in Pennsylvania, including pe- 6500 Marcellus Shale gas well permits. Based on publicly reported troleum geology and engineering, coal resources, well completion and production data, an average Marcellus Shale industrial minerals, and both organic and inor- gas well requires 2.9 million gal of water during the hydraulic frac- ganic geochemistry. During his tenure with the turing process and produces 1.3 mmcf gas/day. Furthermore, the U.S. Survey, John has worked on numerous projects ’ Energy Information Administration has estimated that as of mid- dealing with the Commonwealth s oil, gas, and subsurface geology, including Department of 2011, daily Marcellus Shale gas production in Pennsylvania exceeds Energy–sponsored studies such as the Eastern 2.8 bcf. Because of the level of drilling activity and production asso- Gas Shales Project, the atlas of major Appalachian ciated with the Marcellus play, Pennsylvania has become the nexus gas plays, A Geologic Playbook for Trenton– of shale gas production and water management issues. Black River Basin Exploration, and the Midwest Regional Carbon Sequestration Partnership. He holds a 1968 B.A. degree in geography and earth INTRODUCTION AND PURPOSE science from Indiana University of Pennsylvania, a 1972 M.S. degree in geology from the University Like any notable subject, Pennsylvania’smodernMarcellusShale of Florida, and a 1977 Ph.D. in paleontology gas play has an interesting and complex backstory. The birthplace and paleoecology from the University of Pittsburgh. of the modern petroleum industry, Pennsylvania has experienced Katherine W. Schmid Pennsylvania Geo- logical Survey, 400 Waterfront Drive, Pittsburgh, Pennsylvania 15222; [email protected] Copyright ©2011. The American Association of Petroleum Geologists/Division of Environmental Katherine Schmid joined the Pennsylvania Geosciences. All rights reserved. Geological Survey’s Petroleum and Subsurface DOI:10.1306/eg.09281111008 Environmental Geosciences, v. 18, no. 4 (December 2011), pp. 217–257 217 Geology Section in 2010 as a geologic scientist a long history of oil and gas exploration and production, much of and conducts oil, gas, and subsurface geology which predates modern regulation. To be sure, Pennsylvania has research for the Commonwealth. Before coming been the place of many firsts and important industry developments to the Survey, Katherine was employed in the with respect to both oil and gas. For the purpose of this article, how- oil and gas industry for 5 yr, where her work fo- ever, we have chosen to focus on discoveries and advancements be- cused on both organic-rich shale and siliciclastic reservoirs across the state. Katherine received her cause they mainly relate to gas drilling and primary production, with M.S. degree in geological sciences from the Uni- the intent of demystifying the Marcellus Shale gas play. versity of Pittsburgh in 2005 and her B.S. degree in The backstory of the modern Marcellus Shale gas play inter- geology from the Ohio State University in 1999. twines science and perception, law and regulation, and begs to be told. Accordingly, this article highlights critical issues regarding Jaime Kostelnik Weatherford Laboratories, the history, geology, water issues, and regulation of Pennsylvania’s 16161 Table Mountain Parkway, Golden, Colorado 80403; [email protected] oil and gas industry, in general, and the Marcellus Shale play, in par- ticular. The intent of this approach is to give readers a better appre- Jaime Kostelnik joined the Pennsylvania Geo- ciation for improvements in technology, evolution of geologic logical Survey in 2002 and, until July 2011, served — as a senior geologist for the Survey’sPetroleum understanding, and changes in regulatory oversight all with a view and Subsurface Geology Section. During her ten- toward how these are being applied today to shale gas resources in ure with the Commonwealth, her research ac- the Commonwealth. tivities included Appalachian Basin petrology and petrography, sedimentary geology, and organic geochemistry. Jaime recently accepted a position HISTORY OF PETROLEUM DRILLING IN PENNSYLVANIA with Weatherford Laboratories in Golden, Colo- rado, as a senior geologist. She holds an M.S. degree in geology from Wright State University Pennsylvania is no stranger to oil and gas. Centuries ago, Seneca In- (2001) and a B.S. degree in geology from Juniata dians gathered oil emanating from seeps along Oil Creek in Venango College (1999). County by installing crude dams along the stream bank using blan- kets, bark, or cloths to skim oil from the top of the water column (Carll, 1887; Giddens, 1947; Carter and Flaherty, 2011). The early ACKNOWLEDGEMENTS settlers of northwestern Pennsylvania saw how the Seneca made We thank each of our technical reviewers, whose good use of the oil—as a medicine, an illuminant, and more—and experience and insightful reviews greatly im- found value in this resource as well. It was not until 1768, however, proved the content of this article. In addition, we that the first written account of petroleum in Pennsylvania was pre- extend our gratitude to John E. Egers, Jr., who pared by David Zeisberger, a Moravian missionary, who observed oil provided critical input to the legal issues discussed at the confluence of Tionesta Creek and the Allegheny River in For- herein; to Stuart O. Reese, who contributed valu- est County (Giddens, 1947; Carter and Sager, 2010). In fact, it was able information, statistics, and maps regarding private water supplies in Pennsylvania; and to the oil seeps found throughout the Oil Creek Valley that attracted Austin Mitchell, Ph.D. candidate at Carnegie Mellon many investors to investigate this potential resource. University’s Department of Engineering & Public Policy, who assisted greatly with our analysis of Early Oil reported hydraulic fracturing water usage for completed Marcellus wells. Last but not the least, Perhaps the most noteworthy investment in the Oil Creek Valley we thank the Pennsylvania Department of Con- during the 1850s was made by the Seneca Rock Oil Company, a servation and Natural Resources executive staff, including our state geologist, George E. W. Love, group of Connecticut-based investors that included Dr. Francis H. for supporting our research endeavors in the field Brewer, George H. Bissell, Benjamin Silliman, Jr., and James M. of petroleum geology. Townsend. The company leased land called the Hibbard farm in Ti- tusville and subsequently retained “Colonel” Edwin Laurentine Drake to visit the site in April 1858 (Carter, 2009; Harper, 2009). No doubt EDITOR’SNOTE Drake observed the natural oil seeps along Oil Creek and saw the This manuscript was reviewed by six reviewers shallow pits dug by Indians to gather the product, but his particular and accepted for publication by James A. charge, as conceived by Bissell, was to drill a well to extract oil from Drahovzal. the ground (Carll, 1887; Giddens, 1947; Brice, 2009). In subsequent months, Drake investigated the drilling techniques