Published in the Times Leader, by Governor Tom Corbett

February 18, 2014

In 1859, Colonel Edwin Drake struck gold — black gold — when he drilled the first successful commercial oil well in Titusville, Crawford County. We soon became the energy capital of the nation. Pennsylvania was off and running, powering an industrial revolution that created a new middle class, raised the quality of life for tens of millions of people, and changed the world forever.

Today, thanks to abundant natural resources right here in Pennsylvania, we stand on the verge of a new energy revolution. Pennsylvania is home to vast quantities of natural gas nestled deep underground, in formations like the Marcellus Shale. Experts estimate there are nearly 500 trillion cubic feet of natural gas beneath our feet — enough to power our homes, factories and vehicles for more than a hundred years. More than 240,000 Pennsylvanians work in our oil and gas industries and in jobs made more secure by its activity, in family sustaining jobs that pay as much as $30,000 more than the average state wage. We’re marching toward energy independence, becoming a net exporter of natural gas for the first time in one hundred years. We’re making the air cleaner in our towns and cities. And we’re saving Pennsylvanians — all Pennsylvanians — nearly $1,200 a year or more in lower natural gas and electricity prices thanks to lower-cost natural gas. We didn’t create this opportunity — but we are poised to seize it.

That wasn’t the case in 1859. Towns sprang up almost overnight, including helter-skelter arrangements such as Pithole City in Venango County. It had 54 hotels, its own daily newspaper and the third-busiest post office in the state. Today, it’s a tumble of brick foundations and overgrown streets — a testament to an earlier generation’s failure to ask a simple question: “What next?”

Things are a bit different this time around. We have learned some valuable lessons over the past 150 years. It’s not enough to simply pull the resource from the ground. We need to build industries around it — right here in Pennsylvania. Just as natural gas is a fuel, we need to make that industry a fuel for the engine of a wider manufacturing economy.

We’re also going to ensure that protection of our environment and respect for our local communities are our highest priorities. Abundant gas means nothing if we do not have clean water, clean air, and safe communities. After all, these are our local communities, and it’s our air and water.

That’s why I partnered with Democratic and Republican members of the General Assembly, along with environmental, conservation, local government organizations and others in passing Act 13 of 2012, the most comprehensive enhancement of our environmental law in nearly three decades.

Our goals were clear: seize this opportunity, in a manner that protects the environment and public health; grows jobs; reduces our dependency on foreign energy; and prepares our young people for the jobs of today and tomorrow.

Act 13 contains significant new environmental safeguards, including drilling distance setbacks from streams, water wells, and buildings; increased well bonding to make sure wells are properly closed down in the future; increased notice of permit applications; and increased transparency of inspections, violations and penalties. We also adopted the most advanced hydraulic fracturing disclosure law in the nation.

And we worked in partnership to craft a fair impact fee, generating money for county and municipal governments to help address the unmet needs identified through the deliberations of my Marcellus Shale Advisory Commission. I was adamant that these dollars go back to the communities where they were needed. County and municipal officials told us what they needed, and we listened. Over $10 million to date has flowed directly to northeastern Pennsylvania counties. Other competitive grants are providing opportunities for vehicle fleets to convert to home-grown natural gas, like recycling trucks in Luzerne County, or funding baseline water quality tests in places like Wayne County.

From Susquehanna, Bradford and Wyoming counties, to Washington, Greene and Fayette counties, more than 7,000 wells have been drilled in nearly 40 counties, covering nearly two thirds of our state’s geography. But the benefits of this shale revolution are being felt across the entire state.

Beyond the drilling activity, we’ve seen tremendous opportunities for supply chain and service operators, including engineering and architecture firms like Borton-Lawson, or wire rope manufacturers like Bridon. Still others are benefitting from access to significantly lower energy prices, — firms like Procter and Gamble and Sanofi Pasteur. And delivering locally-produced Marcellus natural gas from Northeastern Pennsylvania to Northeastern Pennsylvania markets — such as the recent UGI distribution expansions that will bring Marcellus Shale gas to Wilkes-Barre and Scranton consumers — will save tens of millions of dollars in lower-cost gas and avoided long-distance transportation costs. Everyone uses energy — and everyone can benefit from this abundant resource.

I’ve said many times: Energy equals jobs. And we’re seeing that equation come true across our great Commonwealth thanks to our shale gas resources.

We’re growing our economy, providing opportunities for thousands of businesses while lowering energy costs for millions of consumers. Lower cost energy equals more money to invest; to hire more employees; to grow our economy. Record natural-gas production equals energy security and independence, keeping our dollars here at home and reducing our dependence on nations that too often don’t like us that much.

The Marcellus and other shale gas resources of our Commonwealth present a great opportunity, but with great opportunity comes an even greater responsibility. It carries with it an obligation to make sure we get it right. We are committed to protecting and restoring our environment and precious natural resources, respecting the communities where shale development is occurring, and providing the financial resources to make sure that county and municipal governments have the tools they need to do their job.

We can have a cleaner, healthier environment, while enhancing the quality of life for our children and families. We’re seeing the results, with the promise of more to come. Working in partnership with all stakeholders, I’m committed to making sure that we do this right, for the betterment of all Pennsylvanians.

(Governor Tom Corbett, "Protecting our environment Growing our economy," 2/18/14)