Penn State Cooperative Extension

Timothy W. Kelsey, Ph.D.State Program Leader,

Economic & Community Development

Why Cooperative Extension is Working on Marcellus

Location of Marcellus Shale

Why Marcellus Shale?Scale of this may be BIG

- $1.2 trillion recoverable gas in PA (PA economy is $355 billion)

~$2.25 million ‘landowner’ share per well (80 acre spacing)

Is currently significantly affecting many extension stakeholders, with deeper and broader future implications

May fundamentally transform Pennsylvania communities

Resource-based economic development; when its gone, its gone

Extension’s Educational Role

We’re not talking BTUs or how to drill – rather we address what Marcellus is influencing

Marcellus affects most of the other issues Extension addresses – and we have strong expertise on these issues

Need for honest broker & neutral info source

Some of the Significant IssuesLandowner decisions - leasing, finance, LR use of

their landFarm decision-makingWater & water quality – supply, disposalLR implications for timber supplies & forestry Forest fragmentation & wildlife – composition,

invasive species, restoration BMPsWorkforce developmentEconomic & business developmentPopulation change - social services, Housing & local infrastructureLocal government services & revenuesBrain drain & loss of youth from communities

Evolution of Extension’s Marcellus Program2001 Initial focus on landowners & individual leasing

decisions

2007+

‘Heads Up’ trainings for key groups to make them aware of what was occurring, and why they should pay attention – Marcellus wasn’t on many peoples’ radar screens!

2008+

Transforming to specific content-focused programs•Natural gas wells & drinking water•Workforce development•Economic & community implications•Local government & planning•Business development•Financial management•Fund-raising implications for Non-Profits•Legal issues for landowners•Youth SET•Forest & wildlife implications & BMPs

Current Extension Response Self directed working program teams

Leasing; Environment & Natural Resources; Youth education; Economic & Community Development; Business Development; Financial Management

Educators & faculty have shifted to this area based on local need

Using wide variety of delivery methods – face-to-face, web, webinars, TV and radio, conference calls, twitter, YouTube, written publications

Very low resource commitment – 4th lowest staffing ‘draw’ of any broad program area within extension (only 1.6% of total days expended on extension activities)

Growing Partnerships, Opening Doors

Becoming University-wide effortCooperative ExtensionCollege of Agricultural SciencesAg Law CenterCollege of Earth & Mineral SciencesPenn State Public Broadcasting

Partnering with OthersThe IndustryState legislatorsPennsylvania Farm BureauCounty Conservation DistrictsPennsylvania Planning AssociationCounty Commissioners Association of PennsylvaniaPA State Association of Township SupervisorsPA Department of Environmental ProtectionPA Department of AgriculturePA Department of Community & Economic DevelopmentSmall Business Dev Centers & Chambers of CommerceOthers

Impact of Our Programming – Extension at its very best

Conservatively $250 million in higher lease values to landowners ; + other economic benefits

Significant public and private dollars saved by helping reduce negative impacts or mis-investments

Placed Marcellus Shale on agenda of critical state and local decision-makers, so they can respond appropriately

Significant difference in peoples’ lives, and in communities

Creating interest in our other programmingAnticipating and responding to (driven by!)

changing local needs

Benefits to College & Extension

Large new audiences not previously exposed to Extension

Many new partners who hadn’t worked with us previously

Very high visibility for Extension among key stakeholders - looked to by state for leadership on this issue

Wonderful range of new research & educational issues and challenges

Building Toolkit of ResourcesWebsite – www.naturalgas.psu.edu

Primers (in-depth)Landowners GuideLocal Government Guide Financial Management GuideNatural Resource Guide (in development)

Fact Sheet series

Upcoming Statewide Events:PA Natural Gas Summit Nov 16-18

State CollegeMarcellus Shale Workforce Forum Dec 7-8

Altoona