Oglebay Drilling Plan Opposed

Commission now wants to avoid wells in park

Wheeling Intelligencer
14 July 2011
By Casey Junkins, Staff Writer

WHEELING - If members of the Wheeling Park Commission have anything to say about it, Chesapeake Energy will not be drilling natural gas wells in Oglebay Park.

The contract park commissioners signed with Chesapeake in late 2009 allows the Oklahoma City-based driller to place gas wells on Oglebay property. Original plans called for the closure of the Oglebay Stables, with the Chesapeake drilling pad to be established nearby at a point between W.Va. 88 and GC&P Road.

However, commission attorney James Gardill now believes drilling on Oglebay property can be avoided.

"With the topography of the park, there would have been a significant disturbance if they would have drilled there," he said, noting the commission is still in negotiations with Chesapeake regarding the drilling plans.

"We are continuing in our dialogue with Chesapeake. Our plan would be to have no drilling on the property," Gardill noted.

Gardill said commissioners' hope is for Chesapeake to access the gas underlying Oglebay via the horizontal shafts of off-site gas wells. The Oglebay property is now surrounded by Chesapeake's drilling operations.

Jacque Bland, Chesapeake spokeswoman, had no comment.

The matter of Chesapeake drilling for gas in Oglebay Park began late 2009 when Wheeling City Council voted 6-1, with Councilman Robert "Herk" Henry in opposition, to allow drilling in the park.

The park commission and city of Wheeling are set to evenly split the production royalties for any gas produced from the property. In early 2010, the commission and city each gained $386,629 in lease payments from Chesapeake as part of the drilling contract.

Chesapeake also paid the park commission $100,133 to lease property at Wheeling Park. Any of the drilling royalties for action at this park would go toward facility improvements.

"If we can responsibly harvest the gas from under the park, we would be in favor of that because it would allow us to supplement the parks' budgets. But we want to have no drilling in the park," Gardill said.

The Oklahoma City-based driller sought permission to drill in Oglebay in May 2010 from the West Virginia Department of Environmental Protection's Office of Oil and Gas. However, park commissioners quickly objected to the drilling plans by questioning Chesapeake in the following areas:

§     Incomplete reports on: water use and transportation; gas distribution; coal seam depth; and the source of water for fracking; how the company will deal with accidental spills or runoff; and how the firm will protect nearby streams from pollution.

§     Questions on the size of the drill pad; regarding the disposal of fracking fluid; and regarding the construction of an impoundment pond.

§     An additional comment regarding potential spills.

§     An inadequate safety plan.

Once the environmental department considered the park commissioners' objections, the West Virginia DEP sent Chesapeake's permit applications back to the driller late last year. This is stage in which the matter remains for state regulators, as there have been no new applications filed.

"We have not received any new applications from Chesapeake for that site. And, because we don't have any applications, we do not know whether the company has addressed the city's concerns," DEP spokeswoman Kathy Cosco said.

Though he emphasizes the negotiations are ongoing, Gardill believes the park will not see a gas well drilled on its land.

"I would like to think we would have this resolved soon," he said, noting the five-year lease contract park commissioners signed with Chesapeake expires in late 2014 if no action is taken

Even without drilling on park property, one aspect that may impact the landscape is the possibility of a pipeline being constructed to transport gas from Oglebay and nearby land. Gardill said it is probably too soon to consider this matter because Chesapeake has not revealed its drilling or pipeline plans for the area.