Waiting for Jobs in Wayne County
Mark Green
Posted June 8, 2012
Bloomberg BusinessWeek has a great read that illustrates what it’s like to be on the outside looking in at the shale energy revolution’s considerable job and economic benefits.
While most of the counties in Pennsylvania’s share of the Marcellus Shale play are enjoying dynamic growth, some aren’t. Wayne County, in the northeast corner of the state, is part of the second group – and many of its residents have been left wondering what might have been if not for a moratorium on hydraulic fracturing, imposed by the Delaware River Basin Commission (DRBC). Bloomberg:
"Today there is no drilling in Wayne County...The Delaware River Basin Commission, a regional regulatory agency, has declared a moratorium while it studies the environmental impact. Gas companies have invoked force majeure clauses to put their contracts with property owners on hold. Investors who bought farmland are stuck, and farmers who expected to retire on gas royalties are back to eking out a living from agriculture."
The short story is that Wayne County expected to see benefits from shale development similar to those accruing in the central and western parts of the state: lease payments, royalties, improved land values, jobs and overall economic growth. But in 2010 the DRBC declared a moratorium on drilling so it could study hydraulic fracturing.
Wayne County’s shale boom went pffft. The drillers went elsewhere, most deals were put on hold. Two years later there’s lingering frustration for those left behind. Some of them talked to Bloomberg:
“We expected better roads. We have no fire hydrants – the gas companies were going to put them in.” – Myron Uretsky, retired college professor
“We went on that premise (oil and gas lease payments and royalties). Then, the moratorium comes out of left field and the leases stop. Now we’re just sitting on it.” – Jim Stracka, contractor
“It’s the biggest thing ever happened around here, in my lifetime at least. People here struggle. The economy here sucks when it’s good. The farms are dying. … The DRBC isn’t writing me a check. They’re just basically saying ‘screw you.’” – Bob Rutledge, dairy and beef farmer
Meanwhile, Bloomberg notes, the DRBC continues its deliberations:
"A statement on the commission’s website says that as of May the commissioners are 'convening meetings with their respective technical staff' as they consider rules for drilling."
Some of the underlying currents in this story:
- Hydraulic fracturing is the engine driving the shale energy revolution. Stop fracking, stop the revolution – and with it the growth potential of energy.
- Wayne County is a clear example of snatching defeat from the jaws of victory. With examples of shale-driven economic growth over much of the rest of the state, regulatory obstacles and uncertainty stopped energy development in its tracks.
- Real people get hurt: Lost income, lost jobs, lost opportunity.
About The Author
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Previously, Mark was a reporter, copy editor and sports editor at an assortment of newspapers. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela have two grown children and six grandchildren.