4: 2007-2008: Early History: When did Cabot begin drilling in Dimock?

This post is intended to fix the date of when wells were drilled in the impacted area along Carter Road in Dimock. Cabot is claiming on their blog that prior to Sept 25, 2008 is "Before Drilling Began".

Is this true?

Figure 1: Cabot clams on their blog in at least three places [1] - [2] - [3] that the complaints by the Ely and Hubert families between June 2008-Aug 2008 were reported "before drilling began", and that "Drilling Began" Sept 25, 2008. Document author: Brittany N. Thomas , Coordinator of External Affairs for Cabot Oil & Gas Corporation, and by George Stark Director, External Affairs at Cabot Oil & Gas Corporation published on the Well Said Cabot blog. The reference to support this claim is a Guest Blog written by FrackNation producer Phelim McAleer, published on the industry-funded Marcellus Drilling News , published by Jim Willis.

As you read this, please refer to this graphic (Figure 2), a screenshot of the PA DEP Spud Database, which shows when the Cabot wells in Dimock were first drilled (spudded).

Figure 2: Refer to this graphic, screen shot of PA DEP Spud Database.

This report also relies upon information from the PA DEP O+G Compliance Database.

Early Dimock Timeline:

• 9-27-2007: Greenwood 1 SPUD  (NOTE: Here "Greenwood 1" is the name of the well. Spud means they began to drill the well)
• 11-1-2007: Greenwood 1 VIOLATION 527463 
  
• 1-17-2008: Teel 2 VIOLATION 530944
  
  
• 2-26-2008: Teel 2 SPUD
• 3-27-2008: Ely 4H SPUD
• 4-7-2008: Teel 2 VIOLATION 536692
  
• 4-7-2008: Ely 4H VIOLATION 555027
• 4-11-2008: Craig and Julie Sautner purchase 1101 Carter Road in Dimock from Andrew and Jacqueline Nunez.
  
  
• 4-18-2008: Ely 6H  SPUD
  
  
• 4-23-2008: Ely 6H VIOLATION 538185
  

5-1-2008: Dan Dinges, CEO of Cabot, report to investors Cabot has "drilled four vertical wells and are currently drilling our first horizontal test. This well spud in mid April and should reach total depth by approximately a week. The third vertical well has been frac'd.... The fourth vertical well was drilled on the same pad as horizontal well we have currently drilling. It will be completed after the rig is moved off. "

These statements are confirmed in the PA DEP Spud Database. (See analysis below)

5-6-2008: Teel 2 VIOLATION 538625 CIVIL PENALTY: $4,700

5-6-2008: Hubbard 1 VIOLATION 538704

5-28-2008: Gesford 3 SPUD
(Note: Gesford 3/9 implicated in Ely & Hubert contamination)

5-28-2008: Lewis 2 SPUD

6-3-2008: Ely 2 VIOLATION 541430

6-3-2008: Gesford 3 VIOLATION 541432 (Note: Gesford 3/9 implicated in Scott Ely & Hubert contamination)

6-3-2008: Heitsman 2 VIOLATION 541433

6-3-2008: Ely 1 VIOLATION 541438

6-3-2008: Lewis 2 VIOLATION 541442

6-3-2008: Gesford 2 VIOLATION 541445

6-3-2008: Ely 4H VIOLATION 555026

6-3-2008: Lewis 1 VIOLATION  541448

6-3-2008: Costello 1 VIOLATION 541449

6-3-2008: Gesford 1 VIOLATION 541457

6-3-2008: Ely 6H VIOLATION 541458

6-16-2008: Lewis 1 SPUD

6-??-2008: Hubert family first reports water quality changes. (Note: Gesford 3/9 implicated)

7-8-2008: Lewis 1 VIOLATION 543967

7-16-2008: Costello 1 SPUD

7-8-2008: Lewis 1 VIOLATION 543533

7-24-2007: Ely 2 SPUD

7-25-2008: Dan Dinges, CEO of Cabot Oil and Gas, reports this to investors: "To-date, we have drilled eight wells and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. " These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine.  (he may not have been aware the Ely 2 had just been spudded the day prior)

7-30-2008: Heitsman 2 VIOLATION 545573

7-30-2008: Costello 2 VIOLATION 545574

8-11-2008: Baker 1 SPUD
(Note: Baker 1 implicated in Sautner Contamination)

8-16-2008: Costello 2 SPUD

8-??-2008: Ely's first report water quality changes. (Note: Gesford 3/9 implicated)

8-20-2008: Baker 1 VIOLATION 545935 (Note: Baker 1 implicated in Sautner Contamination)

8-20-2008: Lewis 1 VIOLATION 545932

9-3-2008:   Heitsman 2 VIOLATION 546826

9-3-2008:   Ely 1 VIOLATION 548326

9-3-2008:   Ely 4H VIOLATION 555023

9-3-2008:   Ely 6H VIOLATION  548348

9-3-2008:   Ely 1H VIOLATION 548991

9-10-2008:  Teel 2 VIOLATION 549004

9-10-2008:  Gesford 1 VIOLATION 549008

9-11-2008: Sautner's first report water quality changes.
(Baker 1 implicated)

9-23-2008: Gesford 2 SPUD

9-25-2008: Gesford 9  SPUD

9-25-2008: Cabot blog post made after the Ely trial (Mar 10, 2016), which refutes verdict, makes claim this is when drilling began!

Cabot claims that prior to Sept 25, 2008
is "Before Drilling Began"!

Figure 3: Actual graphic from Well Said Cabot blog.

http://wellsaidcabot.com/get-the-facts/legal/

... lots more drilling and violations and water contamination problems reported ...

Just a few more noteworthy events:

4-15-2010: in the 2nd Consent Agreement, PA DEP orders Baker-1, Gesford 3, and Gesford 9 to be Plugged and Abandoned

8-30-2012: Cabot uses a shell company ("Susquehanna Real Estate 1 Corp.") to purchase Sautner Home.

9-4-2013: Cabot demolishes former Sautner home.

4-2014: Cabot uses shell company to purchase Mike Ely property.

Figure 4: Graphic from the First Consent Agreement which maps the contaminated water wells to the gas wells with recent activity within 1,000 ft.

Here is what Cabot says in their blog:

It’s all about the timing : The timeline of concerns does not match up with Cabot’s operations. Mr. Ely’s claims of contaminated water began in August 2008 (the exact time varies depending on when he was asked) while Cabot began drilling the gas wells in question until late September 25, 2008.[4] Other plaintiffs claimed their water problems began even earlier in July 2008. Effectively, they are alleging an effect before there was a cause.  

[4] Guest Post: Dimock Plaintiff Exposed Under Cross Examination, Phelim McAleer
http://marcellusdrilling.com/2016/02/guest-post-dimock-plaintiff-exposed-under-cross-examination/

Source 1 : http://wellsaidcabot.com/get-the-facts/legal/
Source 2: http://wellsaidcabot.com/wp-content/uploads/2016/04/WEBSITE-Dimock-Trial-Facts.pdf

ANALYSIS of statements made 5-1-2008: Dan Dinges, Dan Dinges, CEO of Cabot Oil and Gas, report to investors: The Susquehanna area has the thickest and richest Marcellus we are aware of, and we believe our initial wells bear this out. To-date, we have drilled eight wells(+) and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. We are also utilizing smaller rigs to drill the up-hole portion of future horizontal wells, which afterwards we will move in larger rigs to complete the horizontal section. -- Dan Dinges 2Q2008 Earnings Call, 25 July 2008 http://seekingalpha.com/article/87129-cabot-oil-and-gas-corp-q2-2008-earnings-call-transcript?part=single NOTES: These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine. (Ely 2 had just been spudded the day prior) + Greenwood 1, Teel 2, Ely 4H, Ely 6H,  Gesford 3, Lewis 2, Lewis 1, Costello 1, Ely 2  ++ Ely 6H (source: PA DEP Spud Database) ANALYSIS of statements made 7-25-2008: Dan Dinges, CEO of Cabot Oil and Gas, report to investors: The Susquehanna area has the thickest and richest Marcellus we are aware of, and we believe our initial wells bear this out. To-date, we have drilled eight wells(+) and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. We are also utilizing smaller rigs to drill the up-hole portion of future horizontal wells, which afterwards we will move in larger rigs to complete the horizontal section. -- Dan Dinges 2Q2008 Earnings Call, 25 July 2008 http://seekingalpha.com/article/87129-cabot-oil-and-gas-corp-q2-2008-earnings-call-transcript?part=single NOTES: These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine. (Ely 2 had just been spudded the day prior) + Greenwood 1, Teel 2, Ely 4H, Ely 6H,  Gesford 3, Lewis 2, Lewis 1, Costello 1, Ely 2  ++ Ely 6H (source: PA DEP Spud Database)

POP QUIZ!

Refer to the PA DEP Spud database
Refer to the PA DEP Compliance Database
Refer to the 1Q2008 and 2Q2008 Earnings Calls Transcripts

1. How many wells were drilled by Cabot in Dimock prior to Sept 25, 2008?
2. When was Gesford 3 spudded? 
3. What did CEO of Cabot Dan Dinges tell investors after 1Q of 2008 about their drilling activity at that time?
4. Is it true that Cabot's drilling began Sept 25, 2008?

3: Three Cabot Consent Agreements

On THREE occasions, Cabot's top executives signed Consent Agreements with PA DEP admitting to polluting several private water wells. 

• 11/4/2009 http://s3.amazonaws.com/propublica/assets/natural_gas/final_cabot_co-a.pdf
  
  EXCERPT: Ten of the Affected Water Supplies are less than 1,000 feet from one or more of the Cabot Wells. These 10 Affected Water Supplies have elevated levels of dissolved methane, and/or the presence of combustible gas in the drinking water wells.
  
  The presence of dissolved methane and/or combustible gas in the 10 Affected
  Water Supplies occurred within six months of completion of drilling of one or more of the Cabot Wells. As such, Cabot is presumed to be responsible for the pollution to these 10 Affected Water Supplies, pursuant to Section 208(c) ofthe Oil and Gas Act, 58 P.S. §601.208(c).
  
  Three of the Affected Water Supplies are within 1,300 feet of one or more of
  the Cabot Wells. Based upon the presence of elevated methane in the water supplies; the presence of combustible gas in water well headspaces, the close proximity of these three Affected Water Supplies to the Cabot Wells, the close proximity of these three Affected Water Supplies to the other  10 Affected Water Supplies, and other factors, the Department has determined that Cabot is also responsible for the pollution to these three Affected Water Supplies. A chart identifying the distances of all of the Affected Water Supplies from the Cabot Wells is attached as Exhibit D and incorporated herein.
  
•  4/15/2010 http://s3.documentcloud.org/documents/1688/pennsylvanias-dep-orders-cabot-to-plug-three-gas-wells.pdf
  
  
  EXCERPT: Cabot did not comply with all of its obligations under the 2009 Agreement. As discussed further below, Cabot did not comply with the requirements of Paragraph 4.i.2) of the 2009 Agreement, as it failed to identify in its "Integrity Report" all of the Cabot Wells that had insufficient/improper casing and/or cementing, and it failed to identify the specific corrective actions needed to address the Gesford 3 and Gesford 9 Wells which the Department had already determined to have insufficient/improper casing and/or cementing as documented in Paragraph I in the 2009 Agreement.
  
  As also discussed further below, Cabot did not comply with the requirements of Paragraph 4.1. of the 2009 Agreement, as it failed, by March 31, 2010, to complete any and all actions to prevent the unpermitted discharge of natural gas from the Cabot Wells or any other well owned and/or operated by Cabot within the Affected Area and into the waters of the Commonwealth.
  ...
  On January 10, 2009, the Department collected samples from a well that provides
  drinking water to the residence owned by Ray Kemble and located within the Affected Area
  ("Kemble Water Supply"). The samples taken on January 10,2009, contained dissolved methane gas at a concentration of .015 mg/I.
  
  On January 28,2010, the Department again collected samples from the Kemble Water
  Supply, and those samples contained dissolved methane gas at a concentration of23.6 mg/I.
  
  On March 8, 2010, the Department notified Cabot about the elevated concentration of
  dissolved methane gas in the Kemble Water Supply.
  
  The Department has determined that, based on the elevated concentration of dissolved methane gas in the Kemble Water Supply, the close proximity of the Kemble Water Supply to the Cabot Wells, the close proximity of the Kemble Water Supply to the Affected Water Supplies as identified in the 2009 Agreement, and other factors, Cabot is also responsible for the pollution to the Kemble Water Supply.
  
  The Kemble Water Supply is hereby added to the Affected Water Supplies identified in the 2009 Agreement.
  
  
• 12/15/2010 https://archive.org/details/CabotPADEPagreement
  
  EXCERPT:  The Department has determined that eighteen (18) drinking water supplies that serve nineteen (19) homes within the Dimock/Carter Road Area have been affected from the drilling activities at the Dimock/Carter Road Gas Wells (collectively the "Water Supplies"). The owners of the nineteen (19) homes that are served by the Water Supplies are identified on Exhibit C and incorporated herein (collectively the "Property Owners").
  
  As of the date of this Consent Order and Settlement Agreement, Cabot has undertaken, among other things, the following actions:
  
  1 . Plugged and abandoned three of the Dimock/Carter Road Gas Wells ~ Baker 1, Gesford 3, and Gesford 9. To date, Cabot has not yet completed the restoration of the Gesford 3 and Gesford 9 Gas Well Sites;
  
  2. Reconditioned the Ely 4 Gas Well by squeezing the annular space, thereby eliminating the pressure that was present in a portion of the annular space between the 41/2 and 7 inch casings on the Gas Well, and conducted similar remedial actions at the Ratzel 2H Gas Well after September 14, 2010;
  
  3. Prepared and implemented a plan to check the integrity of the Dimock/Carter Road Gas Wells;
  
  4. Provided temporary, whole house water supplies to owners of residences within the Dimock/Carter Road Area, including to the Property Owners;
  
  5. Provided new vent stacks or extended existing vent stacks on Water Supplies; and
  
  6. Paid $570,000 to the Department in settlement of civil and monthly stipulated penalties.
  
  The Department has determined that Cabot has not: (1) permanently restored and/or replaced all of the Water Supplies by September 17, 2010; (2) completely eliminated the unpermitted discharge of natural gas into the waters of the Commonwealth from the Dimock/Carter Road Gas Wells by November 1, 2010; and (3) plugged or taken other remedial actions at certain of the Dimock/Carter Road Gas Wells by November 13, 2010.  

There is lots of interesting information in these consent agreements.

Download them and read them!

2: Jan 1, 2009: Norma Fiorentino's Water Well Explodes

 On Jan 1, 2009, Norma Fiorentino's water well exploded. The past 15 months had been described as a "Drilling Frenzy" in Dimock Township, where Cabot Oil and Gas had just drilled 19 gas wells.

One well, the BAKER-1 was within 1,000 ft. of Norma's water well. PA DEP had found this well (along with 7 others) had problems. In this case, excessive pressure. It was ordered plugged and abandoned.

PA DEP Consent Agreement, dated 4 Nov 2009, showing that the BAKER-1 wells had "excessive pressure". It was ordered plugged and abandoned,.

DRILLING FRENZY!
Cabot had drilled 19 gas wells near Norma's home
in the 15 months prior to the explosion,
all within 9 square miles in Dimock Township
(Red Dots: Gas Wells. Yellow Star: Exploding Water Well)

Cumulative wells drilled in Dimock Township prior to Norma's water well exploding.
(Yellow Star: Date Norma's well exploded.)

Cabot commissioned GSI Environmental, Inc, to perform a pre-drilling methane survey of Susquehanna county  Only trace levels of nethane were found. In the vininty of Norma's home, 100 to 1,000 parts per BILLION, or 0.0001% to 0.001%. The Lower Explosive Limit (LEL) for methane in water is 5%, which is between 5,000x to 50,000x times greater than was measured prior to drilling.

Pre-drilling methane survey commissioned by Cabot were between 1/5,000sth to 1/50,000sth the explosive limit for methane in water, a 3-4 orders of magnitude difference!

PA DEP Spud Database showing location and dates when Cabot drilled the first wells in Dimock. In the first Consent Agreement, DEP identified the BAKER-1 well as being within 1,000'ft of Norma's well, and presumed to be the well which caused the problem. Baker-1 was shut in.

QUESTION: Since Norma's well was fine prior to drilling, might the Drilling Frenzy in Dimock between Sept 25 2007 and Jan 1, 2009, and the numerous Cabot wells with problems, including the BAKER-1, which was within 1,000 feet of her water well (and was ordered plugged and abandoned due to excessive pressure) be connected to the explosive levels of methane in Norma's well?

1: No Fooling: "Your water has been affected by drilling activities"

On Sept. 11, 2008, Craig and Julie Sautner, of 1101 Carter Road in Dimock, Susquehanna County PA, noticed something strange had happened to their drinking water. It had a funny odor, the color was a murky orange, and it was loaded with bubbles. All of this was brand new.(Source: http://citizensvoice.com/news/dimock-resident-relates-horror-story-1.1049626)

So was gas drilling in the area. Cabot Oil and Gas had just drilled 11 new wells in their township, including some which were permitted has horizontal wells into the Marcellus Shale.  (Source: PA DEP Spud Database: http://www.dep.pa.gov/DataandTools/Reports/Pages/Oil-and-Gas.aspx )

They made a formal complaint to the DEP five days later.
      
Here we have an excerpt from the actual determination letter to the Sautners, issued in 2009. It says,

Actual Sautner Determination Letter

 "On September 18, 2008, I collected a water sample from your well at your residence.... After reviewing the sample results and other information gathered during our investigation, the Department has determined that your water supply had been affected by drilling activities conducted by Cabot Oil and Gas, Inc. 
The Department is aware that Cabot Oil and Gas has installed treatment equipment in order to restore your water to pre-drill conditions". 

Why does the determination discussion restoring the water supply to pre-drill conditions? Because this language is in both Pennsylvania Commonwealth Law, and also in an addendum to the lease used by Cabot Oil and Gas.

The Pennsylvania Code (2009) CHAPTER 78. OIL AND GAS WELLS § 78.51. Protection of water supplies.  (a)  A well operator who affects a public or private water supply by pollution or diminution shall restore or replace the affected supply with an alternate source of water adequate in quantity and quality for the purposes served by the supply.  (d)  The operator shall affirmatively demonstrate to the Department’s satisfaction that the quality of the restored or replaced water supply to be used for human consumption is at least equal to the quality of the water supply before it was affected by the operator.

The Gas Industry shills repeat:

 "There has never been ONE EXAMPLE of a case was fracking has contaminated a water well".

Question:

Has the PA DEP ever determined that Cabot Oil and Gas was responsible for contaminating an underground source of drinking water from gas drilling activities?