CNX Resources to pay nearly $13K for each 1.5 million gallons drawn from Beaver Run for fracking

Rich Cholodofsky, Tribune-Review, Greensburg, Pa.
·2 min read

Mar. 20—A week after water use restrictions were lifted for customers served by Beaver Run Reservoir, a Canonsburg company was given a contract that allows it to buy 51 million gallons of water to use in fracking at nearby gas wells, Municipal Authority of Westmoreland County officials said Wednesday.

The authority halted the sale of water to energy companies in November amid a drought that left the reservoir far below seasonal averages and triggered mandatory water conservation.

Increased precipitation since January restored the reservoir's capacity, officials said, and the authority lifted mandatory conservation in late January and voluntary restrictions on March 12.

MAWC Manager Michael Kukura said the authority reached agreement last week with CNX Resources Corp. that allows the company resume purchasing water for gas drilling at wells near the reservoir, which straddles Bell and Washington townships.

Between March 15 and 31, CNX can purchase up to 3 million gallons of water each day under terms of a new contract, Kukura said. The company will pay $12,855 a day for 1.5 million gallons of water purchased. The authority will earn more than $25,000 day if CNX purchases its full allotment of water.

"It really won't have a significant impact on the reservoir," Kukura said of the deal with CNX.

CNX is using raw, untreated water. It agreed to pay $8.57 for every 1,000 gallons of water it uses, the highest rate MAWC charges customers, according to Kukura.

CNX withdrew 53,000 gallons from the reservoir last Friday, more than 1.36 million gallons on Monday and 1.17 million gallons on Tuesday, according to the authority.

More than 20 million gallons is used each day to serve about 56,000 customers with drinking water. Beaver Run Reservoir is the primary source of drinking water for the northern half of the authority's nearly 123,000 customers. The authority provides water to residents in Westmoreland, Allegheny, Armstrong, Fayette and Indiana counties.

At capacity, the reservoir can hold more than 11 billion gallons. On Jan. 9, the authority reported the reservoir held just 5.5 billion gallons.

Officials said the area near the reservoir recorded 3.2 inches of precipitation since March 1, enough to raise the water levels in Beaver Run by more than 4 feet.

As of Wednesday, the reservoir held 8.4 billion gallons, Kukura said.

Rich Cholodofsky is a TribLive reporter covering Westmoreland County government, politics and courts. He can be reached at rcholodofsky@triblive.com.