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Plans are still pending for sale of Kane sewer water |
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Written by Reporter1
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Tuesday, 20 July 2010 |
By Ted Lutz
Republican Staff
The Kane Borough Sewer Authority still has plans to sell the outflow water from its sewage treatment plants for the drilling of area Marcellus Shale gas wells.
However, drilling companies currently aren't beating on the door to buy the effluent.
"Nobody's called us," Authority Chairman Jim Salvamoser said Monday.
Drilling companies approached the authority earlier this year to try to work out a deal to buy the treated sewer water. But the authority has yet to approve an agreement.
Salvamoser said the authority most likely would need to re-tool its Kinzua sewage treatment plant on Route 321 to provide the effluent to trucks that would haul the wastewater to the drilling sites. He said the authority would need to seek bids for the project which he estimated would cost between $30,000 and $35,000.
The authority would first convert the Kinzua plant to handle the sale of outflow before considering similar work at the Pine Street plant, Salvamoser said.
Drilling companies require huge volumes of water for the drilling of Marcellus Shale gas wells. Part of the layout at a well site includes a large containment area for water used in the drilling process. A convoy of trucks would haul the sewer water from the Kinzua plant to the well sites.
Salvamoser said the authority has been asked to sell the outflow water at three cents a gallon. But he said this price could escalate as the demand increases. He said drillers are paying nine cents a gallon for water for wells in other nearby counties where drilling is rampant.
Speaking at Monday's meeting of the authority, local attorney Erik Ross said the "potential sale of effluent is not unprecedented" in the state. Ross, who serves as the solicitor for the authority, said "something seems to be happening in other places."
The authority reportedly has the permission from the state Department of Environmental Protection (DEP) to consider the sale of its outflow sewer water.
The Kane sewage treatment plants already have 130,000-gallon storage tanks on the sites. The cost for making the effluent available to drillers includes the installation of new piping.
In other business at the 75-minute meeting at the borough building, the authority:
•Discussed the annual independent audit conducted by Haines & Co., certified public accountants (CPAs) from Warren.
The audit covers the fiscal year that ended March 31.
In a report with the audit, Haines said the authority's financial statements and documents are "in conformity with accounting principles generally accepted in the U.S."
Ed Sleeman, a CPA in Kane and the treasurer for the authority, said Haines "did a nice job" on the annual audit.
•Voted 4-0 to give Knox Energy permission to install a proposed new natural gas line in the authority's right-of-way.
Salvamoser voted in favor of the motion along with board members Kane Mayor Doug Caldwell, Dave Peterson of Wetmore Township and Frank Wojcik of Kane.
Mike Holtz, a Kane resident and fifth member of the board, abstained from voting because he serves on the board for Knox Energy, a cooperative organization that provides natural gas service in the Kane area.
Knox still must obtain permission from property owners along the right-of-way before installing the line.
The site for the proposed line is on the east side of Kane and in Wetmore Township.
Kane Borough
Sewer Authority
When: Monday, Sept. 20
Time: 7 p.m.
Where: Borough Building, Bayard Street
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Last Updated ( Wednesday, 21 July 2010 )
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