Not all work is on drilling rigs

By Evamarie Socha The Daily Item

There’s no Marcellus Shale drilling here, but there are local businesses that provide ancillary services, or support to drilling companies.

MILTON — When Minuteman Environmental Services found a place in the Milton Industrial Park, it brought along about 150 jobs and delighted Milton borough manager Chuck Beck.

He was sorely disappointed when Minuteman’s first try to get into the industrial park, on the West Chillisquaque Township side, fell through.

“I couldn’t understand the logic behind why (the company) didn’t fit,” Beck said. “These trucks are basically hauling water,” the residual waste that comes from drilling operations, he said. “It’s about the same as that from a trash truck.”

Minuteman scrapped those plans following strong opposition from township citizens, who feared that its operations with Marcellus Shale drilling posed an environmental hazard. But with that, it also scrapped jobs.

In November, Minuteman got in the park on the Milton borough side, using as a trucking terminal the 23 acres that had served the former Integrity Building Systems.

“Personally, as a borough manager, I’m very happy where it is,” Beck said.

Not only did the company add to local employment, but the tax rolls get a local service tax of $52 a year per employee, he said.

The Minuteman story has played out all over the Valley. There’s no Marcellus Shale drilling here, but there are local businesses that provide ancillary services, or support to drilling companies.

These companies, which also include Moran Industries in Watsontown and Zartman Construction Inc. in Point Township, have added jobs that otherwise wouldn’t exist here.

Tracking the market

In the Central Workforce Investment Area, which includes the Valley counties, ancillary employment grew 14.5 percent, going from 9,723 jobs in the second quarter of 2008 to 11,131 jobs in the second quarter of 2011.

Ancillary industries, those that support drilling operations, include water supply and irrigations systems; specialized long-distance freight trucking; construction, mining and forestry machinery and equipment rental and leasing, among many others. The shale industry also fuels a seemingly never-ending need for commercially licensed drivers.

There’s some explanation needed to understand this. The Pennsylvania Department of Labor and Industry doesn’t break down the number of ancillary industry jobs created in each county.

What it does track are these jobs by workforce investment area, a labor market of contiguous counties where employment, training and educational services are provided.

The Valley is part of the Central workforce investment area, which also includes Centre, Clinton, Columbia, Lycoming and Mifflin counties.

50 more jobs coming

“We anticipate hiring and creating at least 50 additional jobs in the near future,” said Brian Bolus, Minuteman’s owner and president. “Our new location in Milton has enabled us to expand our services and continue to create jobs.”

Located just off Route 147, Minuteman’s trucks have fast access to major roads heading to drilling operations north of here.

The same is true of Zartman Construction Inc., of Point Township, just off Route 11.

Dean Paul, vice president of operations, said the company added six employees — operators, riggers and truck drivers — when it bought a large mobile crane that it leases to drilling companies. The crane travels to drill sites and helps put up and take down rigs as needed, Paul said.

“Construction activity also has picked up there,” he said, “so we’ve had several construction jobs related to the business,” such as warehouses. “The construction has been a bright spot.”

Moran Industries declined a Daily Item request for an interview for this story.

Enforcement concerns

What concerned West Chillisquaque Township and other Valley residents who have organized against gas-drilling-related businesses in their communities are the hazards posed by the industry.

“There is certainly a benefit from the job creation,” said Jan Jarrett, president and chief executive officer of Citizens for Pennsylvania’s Future, an environmental advocacy group that monitors Marcellus Shale issues. “We’ve got no concerns about the jobs being created by the boon, that’s a definite upside of gas drilling.”

It’s the near-lightning speed of drilling, which has outpaced environmental regulations, that has her worried.

“We want to be sure the drilling is adequately regulated, and the rules and regulations are vigorously enforced,” Jarrett said, adding that this industry poses “monumental challenges” to the state Department of Environmental Protection.

“This is an intensely industrial activity,” she said. “It has its hazards. It leaves a significant environmental footprint. We must be sure the industry is overseen in a manner that minimizes the environmental impact of it.”

Minuteman and Milton haven’t been spared the environmental controversy.

“I do know there have been anonymous phone calls to DEP and EPA about supposed violations, hazmat on the property, spilled substances,” Beck said. “Every complaint is investigated, and nothing has been found.”

Bolus said he’s excited to be a part of the community and be able to help the local economy. “The West Chillisquaque industrial park location was a loss” for the township and the Milton Area Industrial Development Association, Bolus said. “It is unfortunate that we were denied our approval. Fortunately, the Milton borough and community saw our potential and gave us this great opportunity to be where we are now.”

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