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Oil & Gas Development at PIT

Natural Gas Drilling Takes Off at Pittsburgh International Airport

Well Pad 2 Rig Aug 2014CONSOL Energy Inc., along with Pennsylvania Governor Tom Corbett and Allegheny County Chief Executive Rich Fitzgerald, hosted a ceremony on Aug. 25 to mark commencement of natural gas development at Pittsburgh International Airport (PIT).

The event kicked off a sweeping exploration and production program expected to continue through 2018 and bring hundreds of millions of dollars in economic development activity to the region.

“Today marks the culmination of what was an exhaustive process, one that was thorough at all levels, and, ultimately, drove significant collaboration and constructive, open dialogue with all parties,” said CONSOL Energy President and CEO Nick DeIuliis. “When you talk about public-private partnerships and the benefits such partnerships can generate, I believe this venture is and will be the gold standard. We intend to honor our 150-year legacy in this region by ensuring that this project is a model for safe and responsible shale gas development here in Southwestern Pennsylvania and beyond.”Fitzgerald and Corbett

 “We are reinvigorating local communities all over the commonwealth by responsibly harvesting our energy resources,” commented Governor Tom Corbett. “Thanks to our ‘all of the above-and below’ energy strategy that is leading the way toward American energy independence, companies like CONSOL are investing in Pennsylvania and are creating family-sustaining jobs."

The ceremony took place on Pad 2, the first of six pads to be constructed on PIT property. CONSOL Energy plans to drill 45 Marcellus wells and will also explore the possibility of tapping other horizons from this location including the Devonian and Utica shales. 

Drilling Operations to Begin in August 2014
Well Pads 1, 2 Being Prepared
Officials Performing Regular Safety Inspections

Well Pad Access RoadIn April 2014, CONSOL Energy received final approval for Natural Gas development at Pittsburgh International Airport (PIT) when the Findlay Township Board of Supervisors authorized a conditional use permit.

“The vote represents the final step in what was a collaborative and comprehensive process with substantial, open dialogue among all stakeholders,” said CONSOL Energy CEO and President Nick DeIuliis. “That open dialogue produced many innovative concepts that highlight the value of public-private partnerships, and will make this project a model for the entire nation in safely and responsibly developing our natural gas resources to drive economic growth.”

Following the approval of the permit, construction and site preparation began immediately. “This is an exciting moment for CONSOL Energy and for the entire region,” said DeIuliis.

Including up-front bonus payments made to Allegheny County Airport Authority, anticipated royalties and intended capital spend by CONSOL Energy of approximately $500 million, the plan is expected to provide investment of over $1 billion dollars to the greater Pittsburgh region over the life of the project. The development plan calls for up to 6 pads with up to 45 Marcellus wells to be established on PIT property.

Contractors have prepared six-acre areas around well pads 1 and 2 south of I-376 and north of Route 30, and have constructed three centralized water impoundments to hold 42 million gallons, 10 miles of gas pipeline and 11 miles of water line. Drilling activity commenced in August with two vertical rigs. Wells pads will be drilled in the following order: 2, 1, 4, 6, 3, 5.

Click here to view the map of well pad sites.

Security guards have been stationed at work zone gates. Air quality, noise levels and other factors will be monitored throughout the project to ensure compliance with permits and the highest safety standards.

Well Pad 2Airport firefighters, along with local first responders, have received specialized training to respond to gas well emergencies, and all contractors have received safety, hazard and site-specific training for the areas where they will be working.

In addition to local, federal and state environmental officials, airport environmental and fire officials will perform regular inspections throughout the entire process from site preparation to production.

Oil & Natural Gas Development at Pittsburgh International Airport

This project is made possible through a public-private partnership between CONSOL Energy, Allegheny County, and the Allegheny County Airport Authority (ACAA). Here, you will find up-to-date information on key project milestones and progress.

This strong partnership has the potential to be a $1 billion opportunity that will further distinguish southwestern Pennsylvania and the surrounding Appalachian Basin as the new global Energy Capital. The region’s energy renaissance continues to drive increased energy independence, jobs, economic development and investment in our infrastructure.

CONSOL Energy takes its license to operate very seriously and has an unwavering focus on core values of safety, compliance and continuous improvement. That focus will allow us to fully and responsibly leverage the once-in-a generation opportunity associated with this project. With ACAA as a trusted partner, CONSOL Energy intends to make it a flagship endeavor that everyone can be proud of.

Economic Impact

On July 1, 2013, as a direct result of CONSOL Energy’s initial payment under the ACAA lease agreement, the average cost per enplaned passenger was reduced by 3.8 percent, landing fees were reduced by 12.2 percent, terminal fees were trimmed by 0.3 percent, and ramp fees were slashed by 5.2 percent.

Effective January 2014, the cost per enplaned passenger at PIT dropped from $14.11 to $13.92, which is in addition to the $.55 reduction made in July 2013. This is the lowest rate for airlines flying into PIT since 2008.

Reducing operating costs for airlines serving Pittsburgh International Airport, will position PIT to become more competitive and marketable to major airlines and can contribute to improving air service in Pittsburgh.

In 2013, ACAA announced that Southwest Airlines launched new daily nonstop service to Nashville, American Airlines added Los Angeles and Delta Air Lines added Punta Cana. JetBlue will add Ft. Lauderdale beginning Oct. 29, 2014.

CONSOL Energy is adding to its workforce to support the significant projected growth of its Marcellus drilling program, which includes the airport project. The company anticipates hiring 50-75, with openings primarily for drilling and completions engineers. The multiplier for each of those hires is 4-6 contractor or support jobs for each full time job, so the total number and variety of job openings increases dramatically.

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