Tomblin Creates Task Force on Marcellus Ethane Development

Charleston Gazette
15 February 2010
By Alison Knezevich

CHARLESTON, W.Va. -- Senate President Earl Ray Tomblin says West Virginia could revive its manufacturing and chemical industries by developing technology related to natural gas byproducts.

Tomblin, acting as governor on Tuesday, signed an executive order creating a 12-person "Marcellus to Manufacturing Task Force." As the Marcellus Shale natural gas boom continues in West Virginia, the group will research ways to convert natural gas byproducts like ethane into ethylene, which is used by chemical manufacturers and a key ingredient in the plastics industry.

"This, in effect, gives West Virginia a double resource and a double supply," Tomblin said at a Capitol press conference.

Tomblin wants the taskforce to identify private companies that build and operate thermal or steam crackers - plants that convert natural gas byproducts - and develop strategies to attract those companies to the Mountain State.

He also has asked members to look for existing infrastructure in the state, such as pipelines and storage facilities, that could be upgraded for use in this technology.

The acting governor said West Virginia should work to bring Marcellus-related jobs to the state, while extracting gas in an "environmentally responsible manner."

"We need to act in the best interest of all those involved," he said.

Six taskforce members are executives or lobbyists for chemical or energy companies. They include Bayer Corp. CEO Greg Babe, Triana Energy CEO W. Henry Harmon, and Northeast Natural Energy CEO Michael John.

Bayer is interested in selling or leasing land at its Institute and New Martinsville sites for the construction of an ethane cracker. A Bayer spokesman did not return a request for comment Tuesday.

Others members include: Caiman Energy CEO Jack Lafield; EQT government affairs manager Steve Perdue; and Scott Rotruck, vice president of corporate development and state government relations at Chesapeake Energy.

Tomblin also appointed Kevin DiGregorio of the Chemical Alliance Zone West Virginia and Patrick Donovan of the Rahall Appalachian Transportation Institute. Steve White of the Affiliated Construction Trades Foundation will represent labor on the taskforce.

"Once this gas is harvested and separated, it could go anywhere," White said after the press conference. "If we find a way to process it here, then it becomes a huge jobs-creator."

Tomblin also appointed Don Garvin, lobbyist for the West Virginia Environmental Council.

Garvin said later Tuesday he does not yet know much about the taskforce. Tomblin's office asked him Monday if he would participate, he said.

Two members of Tomblin's administration will serve on the taskforce: Commerce Secretary Keith Burdette and general counsel Kurt Dettinger.

Each person on the task force is set to serve a three-year term, and the group is supposed to report its findings to the governor twice a year.