A New Mexico-based energy company wants to drill six natural gas wells at U.S. Steel Corp.’s Edgar Thomson steel mill near Pittsburgh, Kallanish Energy learns.
Merrion Oil & Gas said it will likely submit a drilling permit application to the Pennsylvania Department of Environmental Protection in the first quarter of 2018, the Pittsburgh Post-Gazette newspaper reported. The independent producer has had preliminary meetings with the state agency.
The company, with headquarters in Farmington, has leased a 10-acre tract from U.S. Steel and the Union Railroad. The site on the mill’s grounds is on the North Versailles-East Pittsburgh border, about four miles east of Pittsburgh on the Monongahela River, in Allegheny County.
The company has received conditional use permits from North Versailles and East Pittsburgh municipalities.
The company intends to provide the Marcellus Shale natural gas produced to U.S. Steel for its operations at Edgar Thomson, where 600 are employed. The gas will be used to heat the mill’s blast furnaces.
The results from the first well will determine when the additional wells are drilled, company spokesman Ryan Davis told the Post-Gazette.
The company might also drill from the pad to the deeper Utica Shale and the shallower Upper Devonian Shale, officials said.
The wells will be Merrion’s first shale wells and its first wells drilled in Pennsylvania. It previously has drilled conventional wells in New Mexico, Colorado, Wyoming and Montana.