Linde to Supply LNG to Utica, Marcellus Operations

Linde North America announced Monday that CONSOL Energy has contracted with Linde to supply LNG and related equipment and services for all of its operations in the Marcellus and Utica basins. This new agreement follows successful completion of a trial conducted by the two companies using Linde’s LNG to replace some of the diesel fuel used to power the diesel engines (gensets) that drive drilling rigs. Under the new agreement, Linde’s LNG solution will be used to power gas drilling for CONSOL and may also be expanded to applications such as hydraulic fracturing, mining and marine operations. The LNG-diesel dual-fuel solution lowers the cost of producing on-site power at gas and oil operations and burns more cleanly than diesel fuel alone.

Linde North America is a member of The Linde Group, a gases and engineering company. CONSOL Energy is a publicly owned Pittsburgh-based producer of coal and natural gas with active exploration and production operations in the Marcellus and Utica shales. It is the leading diversified energy producer in the Appalachian basin.

Jeff Boggs, vice president of drilling for CONSOL Energy, said, "The success of our initial collaboration with Linde to power our drilling operations with a hybrid fuel incorporating LNG gave us the confidence to expand our use of this economical, cleaner-burning fuel. Linde has been a great partner, working with CONSOL to safely and reliably implement the use of LNG in our drilling operations. We look forward to working with Linde as we expand our use of LNG to achieve the operational and environmental benefits of natural gas fueling throughout our operations."

"The successful test of our dual LNG-diesel fuel solution in partnership with CONSOL Energy is another demonstration of the safety, feasibility, and efficiency of making the transition to LNG as a primary power source,” said Earl Lawson, head of Energy Solutions for Linde North America. "We are very pleased that innovator CONSOL Energy has chosen Linde to supply LNG and related equipment and services for all of its operations."

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Agency to make Marcellus housing aid decisions

By Robert Swift (Harrisburg Bureau Chief) Published: November 27, 2012
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HARRISBURG - An initial outlay of revenue from gas drilling impact fees to address affordable housing needs in the Marcellus Shale region will be made next month by the Pennsylvania Housing Finance Agency.

The agency's governing board is scheduled to meet Dec. 13 to vote on proposals made by county and municipal officials to tap part of the $2.5 million collected for 2011 gas production, said spokesman Scott Elliott.

Under the 2012 impact fee law, affordable housing is identified as an impact of drilling because an influx of workers in small towns and rural areas has led to a scarcity of housing and increase in housing rents and prices. The issue was examined recently at a hearing of the Senate Urban Affairs and Housing Committee chaired by Sen. Gene Yaw, R-Williamsport.

The recent fluctuation in natural gas prices has an impact on available housing, said a Wyoming County housing official at the hearing.

"Our past few years have been challenging with regards to providing safe, affordable housing to many of the residents affected throughout the region," said Danielle Powell, a program manager for the Wyoming County Housing Authority. "Fortunately, in recent months we have experienced a stabilization in the number of families being affected by the rental housing crisis.

"We feel this is directly related to the plunge in natural gas prices and the industry workers moving on to more lucrative gas sites. However, we are concerned that as the price of natural gas increases in the market place, we will feel an increase in rental shortages once again."

Wyoming County is seeking impact fee revenue to underwrite a program to help landlords renovate existing buildings in return for commitments to rent to low-income residents.

Such a use would be in line with a "fix it first" strategy advocated by the Housing Alliance of Pennsylvania, an advocacy group.

Impact fee revenue can be used to rehabilitate vacant properties and provide low-interest loans to landlords who agree to fix up properties and rent them to low-income tenants, said HAP executive director Elizabeth Hersh at the Senate hearing.

Another approach is giving rental vouchers to help people bridge the gap between high rents and low wages or being on fixed income, she said.

The impact fee law specifies that revenue should go to make affordable housing more available to low- and moderate-income individuals and families, people with disabilities and the elderly. At least 15 of any funds awarded to a project must go to low-income individuals or families.

The $2.5 million in impact fee revenue will be distributed among 36 counties with at least half the sum going to lesser populated rural counties. The housing earmark will increase to $5 million for 2012 production.

rswift@timesshamrock.com

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