NORWICH – Representatives from five New York counties met last week in an effort to build a skilled workforce for the natural gas industry and to explore regional business opportunities that might take advantage of the abundant energy source.
The event, held in the Chenango County Office Building boardroom, attracted elected officials, educators, economic developers, and landowners from Chenango, Madison, Otsego, Delaware and Broome counties. Also present were representatives from three natural gas industry companies: Norse Energy, Inc. of Norway, GasTem USA of Canada, and Lenape Resources, Inc. of Alexander, NY.
“We made significant progress to bring the needs of the natural gas industry to the attention of government officials, economic developers and educators. All groups represented portrayed a commitment to collaborate as a region and make this a promising boon to the economy, a ‘win win’ for everybody,” said Chenango County Natural Gas Consultant Steven Palmatier, who moderated the summit on behalf of the Chenango County Department of Planning and Development.
The planners present committed to creating an inter-county directory of natural gas-related services and suppliers. The group of educators, led by DCMO BOCES Adult Education Programming Director Pauline Stamp, agreed to create an education matrix for potential workers.
According to the industry representatives, course offerings in demand would be in hydraulics, welding, mechanics, excavating, mapping, cementing, drafting, surveying, title and abstract legal work, environment and conservation, geology, and civil, chemical and petroleum engineering.
Morrisville College is currently in discussion with the Independent Oil and Gas Association to create programs that the industry will need, such as industry specific welding program, according to Palmatier.
“From laborers to technical people will have to come here,” said David Kaiser, a geologist with Lenape said. Lenape, as does Norse and GasTem, already contracts for services from companies that hail from Pennsylvania, West Virginia and other southern states where drilling has been more prolific.
“There are not a lot of services capability in the area, but we did find a very good welder locally. We are here today to help expand on that,” said Orville Cole, president of GasTem USA.
GasTem drilled two wells into the Utica Shale in Otsego County last fall. The wells were permitted before the state’s environmental regulations for hydrofraking went under review. The company hopes to “push exploration further into local development,” Cole said.
Steve Keyes, vice president of Norse’s Regulatory Compliance and Operations/Drilling department, said his company had hired many local welders and excavators who have been “more than willing to work.”
Norse currently has 104 drilled in Chenango and Madison counties – mostly into sandstone formations like the Herkimer – with many in production. It plans to drill 30 more this year.
Palmatier asked the gas company executives whether there were ancillary services businesses that the counties’ Industrial Development Authorities could reach out to and invite to relocate in the region. He also asked planners to be mindful of attracting to manufacturers that already use natural gas.
Norwich City Schools Board of Education member Perry Owen suggested that converting school buses to natural gas would be “an ideal place to start.”
Palmatier said the IDAs might consider researching grants that would help build a pipeline east and west along an existing propane pipeline right-of-way, or attract another company that would share Norse’s planned pipeline. Norse plans to extend its transmission line south to the Millennium in Broome County.
Commerce Chenango Economic Development Specialist Jennifer Tavares said if Chenango County explored the development of a co-generation power plant, one that would convert natural gas into electricity, the IDA would focus on Greene/Bainbridge area where an existing power plant sits idle and where NYSG&E services don’t exist currently.
Norse initiated and completed with the IDA in Chautauqua County two industrial parks, where a co-generation power facility provides portions of the City of Jamestown with electricity and heat, Keyes said.
As for sharing the company’s pipeline, Keyes said the company “would be “open for discussion.”
“I think it would quell a lot of discontent if we could offer (the region) a reasonable price for natural gas,” said Marie Lusins-McLachlan, a former member of the Town Council Oneonta and the New York State Association of Towns. She pointed out that 95 percent of the state’s gas is currently imported.
“The oil and gas companies are going to establish the economics of this area and put that pipeline to New York City. The opportunity for locals is to tap that gas before its gets (there). That’s where you want to access the federal funding,” GasTem’s Cole said.
The natural gas companies were in accordance with their hopes to expand development in Central New York. All agreed hydrofraking regulations held up at the DEC were taking a “surprisingly” long period of time.
Companies are reluctant to set up large companies until the regulations are complete and activity happens, they said, and potential employees are hesitant to sign up for programs that don’t have job potential immediately.
Lenape’s Kaiser said he wasn’t surprised the see the Marcellus production statistics coming from Pennsylvania’s drilling activity. What is a “surprise,” he said, “is how long it’s taken for New York to get through this process in particular in light of the economic difficulties in the state. It’s a source of tremendous potential.”
Lenape has drilled 600 wells in the Rochester area.