Numbers in House Republican Budget Proposal on Gas Leasing on State
Forestlands Don't Add Up, Acting PA DCNR Secretary Says
HARRISBURG, Pa., July 10 /PRNewswire-USNewswire/ -- The House Republican
budget proposal outlined today misses the mark on the amount of state forest
land available for natural gas development, and the amount of revenues that
could be generated through a lease sale, Pennsylvania Department of
Conservation and Natural Resources Acting Secretary John Quigley said.
"The first error is that there are 2.1 million acres of state forest land
available for lease," Quigley said. "While that is the total number of acres
of state forest land that we Pennsylvanians own, only 1.5 million acres are in
the Marcellus Shale geologic formation that contains deep natural gas
reservoirs, and 660,000 of those acres are already under lease."
"It is simply disingenuous for the House Republicans to suggest that leasing
an additional 390,000 acres of forest lands for gas development leaves 80
percent of the land intact," Quigley said. "House Republicans completely and
intentionally ignore the environmental, economic, recreational and cultural
uses of the state forest."
Quigley noted:
-- One hundred eighty thousand acres of state forest land in the
Marcellus
play are wild and natural areas.
-- Two hundred thousand acres of are old growth forests or areas
identified
to protect the diversity of our plants and animals.
-- An additional 87,500 acres are located in the Poconos and 20,000 acres
are in the Laurel Highlands ecotourism region - drilling there would
be
devastating to the local economy.
-- Lastly, 127,500 acres of state forest land in the Marcellus play are
areas of significant environmental/recreational value (including lease
camps, riparian areas, wetlands, view sheds, vistas, steep slopes,
threatened and endangered species, unique habitats, and special
recreation zones.
"We believe a maximum of 225,000 acres of state forest land could conceptually
be leased, well short of the 390,000 acres proposed," Quigley said. "However,
leasing all of that acreage will irrevocably change the character of state
forest land with the necessary roads, wells and other infrastructure. We also
know that lessees will consider accessibility to roads and gas line
infrastructure before they lease. Not all remaining land has sufficient
access."
"We also question why we would put out a lease sale when the market is so
depressed," Quigley said. He noted that House Republicans revenue assumptions
are not supported by current market rates.
"Market price for Marcellus Shale acreage in Pennsylvania has fallen
dramatically since DCNR's sale of leasing rights last fall. At that time, gas
was $14 per thousand cubic feet; now it's $3.50 per thousand cubic feet.
Today, land is leasing for $200 to $500 per acre, not the $1,500 minimum
assumed by the revenue projections in question.
"We also should not forget the other landowners in the Marcellus play are
competing in this marketplace - state forest lands comprise only about 22
percent of the land in the Marcellus play," Quigley said.
DCNR strives to maintain its certified, sustainable management of the
Pennsylvania state forest system.
"Rampant, unplanned leasing of forest lands would severely jeopardize DCNR's
ability to retain its third-party certification and, perhaps more importantly,
maintain ecologically sound forest management, jeopardizing the future health
of our forests."
CONTACT: Christina Novak
(717) 772-9101
SOURCE Pennsylvania Department of Conservation and Natural Resources
Christina Novak of the Pennsylvania Department of Conservation and Natural
Resources, +1-717-772-9101
