Wednesday, September 29, 2010

Cabot Advert in the PSB

This full-page advert appeared in the Binghamton Press and Sun Bulletin and other newspapers recently:
http://www.scribd.com/doc/38335983/CabotBingSunFP0928

September 28, 2010

To the Citizens of Pennsylvania:

As Chairman of the Board, President and Chief Executive Officer of Cabot Oil & Gas Corporation, I am writing to you on behalf of our employees, stockholders, oil and gas lessors, service providers and to the taxpayers of your Commonwealth.

Recently there have been several media reports regarding the ongoing water situation for a small group of residents in Dimock, Pa. to which I would like to respond.

First, let me emphasize that in all our operations we strive for best practices as it relates to safety and the environment. Our activities in Susquehanna County have been no different.

What have been different are the underlying principles for doing business from the regulators. Specifically, a tendency to communicate through the media instead of with the Company, which is concerning.

The Secretary of the Pennsylvania Department of Environmental Protection (PaDEP) has publicly stated his intent to compel Cabot to construct and pay for a $10.5 million water line from Montrose, Pa. to 14 (or less) private residences located seven miles away in Dimock, Pa. The individuals in these residences
are the same people suing Cabot with claims that our operations in the vicinity have introduced natural gas and other unspecified substances into their well water. They have asked for money to compensate them for their water complaints.

Cabot does not believe it caused these conditions and intends to fight these allegations through its scientific findings.

However, during the last year Cabot has attempted to work toward a long-term solution in the form of individual water treatment systems. This has historically been the solution of choice. All the while, Cabot has been providing potable water to these and other people.

Compelling Cabot, or anyone (including taxpayers), to construct a public water supply system in light of the cost, distance and limited application seems unreasonable, unprecedented and is unfair. No private business model would support such an investment (in excess of $10 million) for so few users. In addition, this mandate is being asserted without fundamental components of such a decision-making process, including a feasibility study setting out the economic viability of the overall project, physical impact along the planned pipeline route and the time lapse before which the system would be fully functional.

In the end, would users even want the municipal system?

We want you to understand that these issues identified need to be answered before the PaDEP takes further action as it has said it will do. Additionally, Cabot has asked the PaDEP to fully review the compelling scientific data, expert testimony and historic facts relating to the plaintiffs’ water wells before deciding its final course of action.

Cabot wants to continue as a good corporate citizen of Susquehanna County and of Pennsylvania.

We want to continue to provide jobs, opportunity and royalty revenue to our fellow citizens for many years to come. That is why I am writing to you now, in hopes that you will view Cabot’s concerns fairly and seek the facts. I invite you to visit Cabot’s website to learn more.

For additional information about our efforts in Susquehanna County access: www.cabotog.com

Sincerely,

(signed)

Dan O. Dinges
President and Chief Executive Officer
Cabot Oil & Gas Corporation

No comments: