JKLM Energy LLC, the main customer and financial backer of a controversial facility that would treat shale gas drilling wastewater near the headwaters of the Allegheny River, says it is abandoning the project.
The decision to end its involvement in what had been described as an “experimental” treatment plant by Lawrenceville-based Epiphany Water Solutions at Coudersport, Potter County, was announced by JKLM Friday afternoon.
“JKLM will no longer pursue water treatment at the proposed facility,” the shale gas drilling and fracking company said in a brief post. “A number of factors impacted this decision.”
The company did not detail those factors.
Scott Blauvelt, director of regulatory affairs for JKLM Energy LLC, the only shale gas company actively drilling in Potter County, did not return calls requesting comment.
The natural gas development company has leases for more than 120,000 acres in Potter County, where it is drilling in the Utica Shale formation and was seeking an economical way to treat, recycle or dispose of wastewater.
Opponents of the Epiphany proposal, concerned about the risk of pollution near the source of the river 325 miles northeast of Pittsburgh, celebrated the news Friday night. But they weren’t sure whether JKLM’s decision means Epiphany won’t build the project anyway. The Allegheny is the source of drinking water for millions of people in dozens of municipalities downstream, including Pittsburgh.
“JKLM posted in the blog that it is pulling the plug on its involvement, but we don’t know yet what that means,” said Laurie Barr, a leader of the Save the Allegheny group that opposed the proposed facility. “We know JKLM was the financial backer and primary customer.”
“JKLM’s decision to abandon its interest in utilizing the proposed Epiphany project is encouraging,” said Seneca Nation president Todd Gates, who has voiced strong objections to the facility. “As I’ve said before, protecting the river and its abundant resources is a critical issue for the Seneca Nation and for thousands who live along the river.”
The proposal, which the state Department of Environmental Protection is considering permitting, would allow Epiphany to accept and store truckloads of wastewater and discharge up to 42,000 treated gallons a day through the municipal sewage treatment plant, then into the Allegheny River.
If approved by the DEP, it would be Epiphany's first desalination and distillation site in the state. Mike Broeker, the company’s president, said in an email response to questions that the company had no comment but would release a statement by the close of business Monday.
Don Hopey: dhopey@post-gazette.com, 412-263-1983, or on Twitter @donhopey
First Published: April 7, 2018, 4:00 a.m.