(The following story by Steve McConnell appeared on the Times-Tribune website on May 25, 2010.)
CARBONDALE, Pa. — A railroad terminal under construction near the city limits that would service the region’s burgeoning natural gas industry may be expanded to also ship in and mix drilling fluids on-site for use at gas wells, according to city and Carbondale Industrial Development Authority officials.
Developed by Honesdale-based Linde Corp., the Carbondale Yards Bulk Rail Terminal will eventually allow the region’s natural gas companies to ship materials needed for well construction along the rail line passing through the city, then by truck to well sites, said Carbondale Mayor Justin Taylor.
But the other aspect of the plan, allowing the mixing of drilling fluids at a facility near the terminal at the Enterprise Drive business park straddling Carbondale and Fell Twp., has not received the waivers necessary for this type of facility to be built at the park, said outgoing authority Chairman Bill Boyle.
Mr. Boyle said uncertainty about the proposed facility and whether it would create jobs on the scale of an industrial park operation caused the board not to take action on the waiver so far.
“I’m not sure what will exactly be placed on this site,” said Mr. Boyle, who – along with two other authority board members – was not reappointed to the five-member board this year. “Our focus has always been on job creation, and unfortunately there was limited job creation.”
According to authority board minutes and city officials, the fluids would be shipped in, via rail or truck, mixed on-site, loaded into tankers and then reshipped to prospective well sites.
Mr. Taylor said the fluid is a water-based, lubricant material used by natural gas drilling companies.
The rail terminal is being constructed on land leased by Linde Corp. from the Lackawanna County Railroad Authority. The parcel where Linde Corp., a utility and heavy construction contractor, would like to expand the project for the proposed drilling-fluid operation and a storage area is owned by the city development authority.
The authority has the right to lease or offer the 2-acre parcel for sale to the company pending a vote on the waiver, according to the business park’s restrictive covenants, said Mr. Boyle.
Linde Corp. is also seeking approval from the Susquehanna River Basin Commission to withdraw water from the nearby Lackawanna River for use in these operations, according to authority board minutes.
A spokeswoman with the commission, which regulates water withdrawals, could not be reached for comment to verify the plan.
Mr. Taylor, who nominated three new authority board members approved by city council on May 17, said the entire project will create jobs and perhaps lure natural gas companies to lease office space in the city because a railroad hub for the industry will be located here.
“Regardless of what side of the issue you are standing on relative to (natural gas operations in the region), we’re happy to be on their radar,” he said.
Mr. Taylor said he decided to nominate three new authority board members due to inaction by the board on this project and others. Linde Corp. representatives have been discussing the proposed expansion since at least the development authority’s October meeting, according to meeting minutes.
He added that he could not reappoint Mr. Boyle and one other authority board member because they are not now city residents.
“I want movement in the direction of making the (board) more business-friendly,” he said. “It’s very clear that both the administration and city council feels there needs to be more timely movement.”
Mr. Boyle said he was “surprised” he did not receive “official notification” that his name was not up for reappointment to the board. “After 16 years of being the chairman, I thought I would have gotten the professional courtesy,” he said.