Apr. 17--WYSOX TOWNSHIP -- The abundance of natural gas in the Marcellus shale, the expected long-term demand for natural gas, and a recent infusion of capital into Chesapeake Energy's drilling operations bode well for Bradford County, a Chesapeake Energy official said in a speech on Thursday in Wysox Township.

"I don't think we could be in a better place than Bradford County," Scott Rotruck, vice-president for corporate development for Chesapeake Energy, told the more than 130 people gathered at the Central Bradford Progress Authority's 16th Annual Dinner, held at the Towanda Country Club in Wysox Township. "The geology is friendly (to gas development), the work force is excellent. I think this place will rock-n-roll."

Chesapeake Energy has secured more gas leases in Bradford County in recent years than any other company.

"Natural gas has a huge potential," Rotruck said.

In the late 1970s, the United States went forward with the development of coal plants to produce electricity "because we didn't think there was there was any of it (natural gas)," he said.

"But it's so different this time," he said.

"There are oceans of natural gas" in the Marcellus Shale and other shale plays, he said.

Studies have shown that the natural gas reservoirs in the United States will yield gas for over 100 years, he said.

Currently, the price of natural gas is low, due to the economic downturn, he said.

While the price of gas will rise when the economy improves, it will still remain affordable, he said.

"Basically, because of the abundance of natural gas, it will remain affordable," he said.

Gas also has environmental advantages, he said.

"It is unbelievably clean", its combustion gives off half the carbon dioxide as coal, and it actually takes far less water to produce energy from natural gas than from coal or ethanol, he said.

The demand for energy in developing nations such as China and India will help keep the price of natural gas at a higher level after it goes up, he said.

"The price of natural gas will go back up," he said. "The price of natural gas will be good for a good long time. That's bullish for Bradford County."

And last fall, Chesapeake entered into a partnership with StatOilHydro, which has provided Chesapeake with an infusion of capital to drill in the Marcellus Shale, Rotruck said.

"They're paying 75 percent of our operating costs," Rotruck said. "We have capital. We want to and intend to drill. That is really bullish for Bradford County."

Rotruck also said that the Chesapeake plans to work with local contractors and use local labor when possible.

Rotruck also took several questions from those at the meeting, who wanted to know, for example, how much Chesapeake is drilling and whether injection wells would harm the environment.

He said that Chesapeake has four rigs in Bradford County and surrounding counties, and will have six to nine in that area by July, "and I think 14 by the end of the year," he said.

"We'll drill a lot of wells locally," he said.

On the issue of injection wells, Rotruck said that the Environmental Protection Agency, which issues permits for injection wells, is "very rigorous" in its regulation of those wells.

"I think they (injection wells) are safe," he said.

James Loewenstein can be reached at (570) 265-1633; or e-mail: jloewenstein@thedailyreview.com.

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