Apr. 30--A recent update to Hazleton's construction code that requires a building permit for construction of an oil derrick does not necessarily mean the city is on the verge of a new "black gold" rush.

But the presence of natural gas in the rocks deep beneath northeastern Pennsylvania's coal fields is fueling interest by national oil and gas companies.

The rock is Marcellus Shale -- a fine-grained sedimentary stone that underlies much of Pennsylvania, New York, Ohio and West Virginia.

Geologists have long known that Marcellus Shale contains natural gas, but the depth and density of the shale made extraction of the gas an unprofitable venture.

However, advances in drilling and gas extraction technology have been tested in Pennsylvania's shale region, resulting in some of the most productive gas wells in the eastern United States, which has sparked an explosion of drilling and leasing activity in the Northeast.

According to Hazleton City Engineer Robert Dougherty, the city's recent code updates were done on the recommendation of consulting engineer, Barry Isett & Associates, as a local strengthening of Pennsylvania's Universal Construction Code (UCC) -- not because natural gas exploration companies are knocking on Hazleton's door.

While no exploration is going on under the city, Dougherty said a geophysical mapping company recently conducted preliminary exploration work along the state Route 309 corridor in Luzerne County.

Karen Dussinger, public information officer with the state department of transportation (PennDOT), said Dawson Geophysical Inc. of Midland, Texas, obtained a PennDOT permit to conduct seismic data collection on PennDOT's Route 309 right-of-way.

"They are doing it now in our right-of-way," Dussinger said. "They obtained a permit from us and they're doing the work in our right-of-way so they don't have to go on anyone else's property," Dussinger said.

Matthew Leist, regional manager at Dawson Geophysical's Michigan office, confirmed the company has conducted seismic mapping in Luzerne County.

But the greatest exploration interest is in Susquehanna County, he said.

"A lot," Leist said, describing the natural gas exploration underway in Susquehanna County.

The geophysical data collection in Luzerne County has been limited, he said.

"We have gone into there a little bit, but not much," Leist said of exploration in the Hazleton area of Luzerne County.

According to a map of Marcellus Shale occurrence in Pennsylvania published by the state Department of Environmental Protection (DEP), the gas-laden rock exists under all of Luzerne County. But Leist said not every shale bed is a "sweet spot" of natural gas abundance.

"There are sweet spots and not-so-sweet spots in Pennsylvania. There will be areas on the map that are non-productive," Leist said.

The Dawson company conducts its geophysical exploration on behalf of major oil and gas companies. The data is used to create two-dimensional and three-dimensional underground maps to a depth of up to 30,000 feet. The maps chart the likelihood of natural gas in a given area.

"It's not an exact science, but geophysical mapping cuts down on the odds of drilling a dry hole," Leist said.

According to DEP, the geology of the Marcellus formation suggests that areas in northcentral and northeastern Pennsylvania may hold trillions of cubic feet of natural gas. Areas in Pennsylvania that have not traditionally seen much gas well drilling might be especially productive.

By the end of 2008, DEP's Bureau of Oil and Gas Management, which regulates the exploration, development, and recovery of natural shale gas in the state, had issued 328 drilling permits for the Marcellus Shale and was reviewing 137 more.

mlight@standardspeaker.com

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