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 (Hey jerk stick - I'm a taxpayer and you certainly are not writing on my behalf).
Recently (Where has this cretan been for the last 21 months? Try since January 1st 2009) 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 (You better strive a little harder. 8,000 gallons of frack fluid spilled into a creek, multiple diesel spills, faulty cement jobs, etc. etc. etc. ) for best practices as it relates to safety and the environment. Our activities in Susquehanna County have been no different. (Wow, you perform this poorly everywhere you go!)
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. (We understand DanO. Why should the people of the Commonwealth of Pennsylvania be privy to Cabot's true colors.)
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 (not claims DanO, facts. The facts are in the water tests. Too bad you can't disprove the facts.) that our operations in the vicinity have introduced natural gas and other unspecified substances (Let me see..... Three independent laboratories confirm the presence of industrial solvents such as toluene and ethylbenzene in "virtually every sample" taken from water wells in Dimock Township) into their well water. They have asked for money to compensate them for their water complaints.
Cabot does not believe (Cabot does not want the truth to be revealed) 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. (Well there's a revelation. Let's see..... we've contaminated before and what we've done in the past is installed an individual water treatment system in the affected homes. A system that you the homeowner need to operate and maintain because we, Cabot, polluted the water in your well. This makes perfect sense to me.) All the while, Cabot has been providing potable water to these and other people. (What did Victoria say? "We line up like on a reservation and thank them for bringing the water.")
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 Dingus, poisoning someones drinking water, assuming no responsibility or liability, and forcing the residents of Dimock to prove Cabot is responsible for the contamination is unreasonable, unprecendented and is unfair. Only a Dingus would think otherwise.) 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 impactalong 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. (Don't cry Dingus, it's not very flattering.)
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
Thank You,
Dan O. Dinges
President and Chief Executive Officer
Cabot Oil & Gas Corporation
Hey Cabot shareholders, what's the deal with your CEO? DanO is completely out to lunch. With leadership like this, the only direction for Cabot stock to go is down.
This one's for you Karen.
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