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Marcellus
  Education
  Fact Sheet
                                         Marcellus Shale Gas Development: What
                                         Does It Mean for Pennsylvania Schools?
                                         Summary


                                         T
                                             his research brief discusses find-   of water contamination in cases in
                                             ings from a survey of 940 school     which district buildings relied on
                                             district superintendents, high       well water. Respondents from some
                                         school principals, high school di-       school districts, especially in areas
                                         rectors of curriculum and instruc-       with high drilling activity, are con-
                                         tion, and directors of Career and        cerned that Marcellus-related work-
                                         Technology Centers (CTCs) across         force demands may increase dropout
                                         the 17 intermediate units located        rates as students contemplate leaving
                                         within Pennsylvania’s Marcellus          school to take advantage of emerging
                                         shale region. The survey data are        employment opportunities.
                                         supplemented by data from inter-         	    Respondents in areas with high
                                         views and focus groups with 50           drilling activity have reported sig-
                                         educational and community leaders        nificantly tightened housing mar-
                                         across Pennsylvania’s northern tier      kets, dramatic increases in housing
                                         in areas of intensive gas drilling.      rental costs, and increased residen-
                                         The purpose of the research was to       tial insecurity and homelessness.
                                         better understand the challenges         Respondents report concerns about
                                         and opportunities associated with        how this might affect recruitment
                                         Marcellus shale gas development as       and retention of staff when district
                                         perceived by educational leaders.        salaries can neither keep pace with
                                         	    We found that about one quar-       rising local costs nor match gas-
                                         ter of school district respondents re-   industry-related salaries. School dis-
                                         port making curricular adjustments       trict respondents also report prob-
                                         in response to changing workforce        lems with road congestion, damage,
                                         needs, although many report hav-         and repair, issues that affect school
                                         ing insufficient information and         bus routes and schedules as well as
                                         lack of coordination regarding how       public safety. Respondents cite the
                                         best to meet the workforce develop-      need for more information, greater
                                         ment needs of students. CTCs have        resources, and increased commu-
                                         assumed a somewhat more robust           nication and coordination between
                                         role in this regard.                     school districts, CTCs, and the gas
                                         	    While school district respon-       industry to inform and enhance
                                         dents in areas with high drilling        Marcellus-related workforce devel-
                                         activity report significant local        opment.
                                         economic activity, they report that
                                         relatively little economic benefit       Introduction
                                         has accrued back to schools. Some        The Marcellus shale formation lies
In cooperation with the Pennsylvania
                                         districts have leased land to gas com-   beneath New York’s southern tier,
Association of Rural and Small Schools
                                         panies, although some respondents        about two-thirds of Pennsylvania,
(PARSS)
                                         expressed concern about the risks        and parts of Ohio and West Virginia
(Figure 1). Long known to contain                        Figure 2. Marcellus wells drilled from January 2007 through November 2011. Source: PA DEP spud data.
significant amounts of natural gas,
until recently large-scale natural gas                     4,500
extraction from the Marcellus shale
was not technologically or econom-                         4,000                                                                                     Wells Drilled
ically feasible.
	    In the early 2000s, however,                          3,500
advances in technology enabled
                                                           3,000
drilling rigs to bore into deep
shale layers and then drill laterally                      2,500
through the formation for as much
as a mile or more. Natural gas can                         2,000
then be recovered using a technique
                                                           1,500
called hydraulic fracturing in which
large quantities of water, sand, or                        1,000
ceramic proppants and chemicals
are injected into the well at high                          500
pressure, causing the shale layers
to break apart along fracture lines,                           0
while sand suspended in the fractur-                               	            2007	           2008	          2009	           2010	       2011
ing fluid holds the shale fractures
open. The gas previously trapped
within the shale then flows into the                    and limited drilling had begun a few                    Marcellus Gas Development,
well and to the surface, where it is                    years before that. As of November
moved through pipelines to con-                         2011, Pennsylvania Department
                                                                                                                Community Change, and
sumer markets.                                          of Environmental Protection data                        Implications for Schools
	    As a consequence of these new                      showed that nearly 4,000 gas wells                      The rapid development of gas
unconventional natural gas extrac-                      within the state had been drilled                       extraction from Pennsylvania’s
tion techniques, estimates of recov-                    in the Marcellus shale layer (Figure                    Marcellus shale has already had
erable natural gas from Marcellus                       2). As many as 60,000 or more may                       profound impacts in many com-
shale rose from less than 2 trillion                    be drilled in the coming decades in                     munities. A recent analysis suggests
cubic feet (TCF) to as much as 489                      Pennsylvania (see Johnson 2010).                        that in 2009 as Marcellus drilling
TCF (see Engelder 2009; Coleman                         Because of this, indications strongly                   activity was still in its early stages,
et al), setting off a gas rush within                   suggest that Pennsylvania is experi-                    between 23,000 and 24,00 jobs
Pennsylvania’s Marcellus region in                      encing only the beginning stages of                     were created, with over $3 billion
about 2008, although permitting                         unconventional gas development.                         added to Pennsylvania’s economy
                                                                                                                (see Kelsey et al. 2011). Especially
Figure 1. Extent and thickness of Marcellus shale. Source: Marcellus Center for Outreach and Research.          in places that have experienced
                                                                                                                long-term economic stagnation,
                                                                                                                gas industry-related job growth and
                                                                                                                unanticipated local revenues from
                                                                                                                leasing drilling rights have been
                                                                                                                welcomed by many residents and
                                                                                                                businesses.
                                                                                                                	    However, Marcellus shale gas
                                                                                                                development is accompanied by
                                                                                                                significant challenges as well. In
                                                                                                                this regard, while environmental
                                                                                                                concerns related to the impacts of
                                                                                                                unconventional gas extraction have
                                                                                                                arguably received the most media
                                                                                                                attention, natural resource “booms”
                                                                                                                also typically result in other types
                                                                                                                of community stress. These may
                                                                                                                include impacts on physical infra-
                                                                                                                structure such as roads and bridges,
                                                                                                                as well as social infrastructure,
                                                                                                                including human services, health
                                                                                                                care, housing, and schools.
                                                                                                                	    In this fact sheet we will look
                                                                                                                at local challenges specifically con-
                                                                                                                nected to how rapid unconventional
                                                                                                                gas development may directly affect
schools and how schools within                          	    Surveys were administered              and associated buffer area. We clas-
the Marcellus region of Pennsylva-                      in spring and summer 2011, from             sified districts in area with high
nia have responded to community                         which we received a 42 percent us-          drilling activity as those that fell
change associated with unconven-                        able response rate. We supplement-          into the top 20 percent with regard
tional gas extraction.                                  ed the survey administration with           Marcellus wells drilled. We then
	   What types of community                             interviews conducted with more              compared school districts in areas
changes associated with unconven-                       than 50 educators, educational ad-          with high drilling activity to all
tional gas development can educa-                       ministrators, and county human              other school districts within the
tors and educational administrators                     service staff within counties heav-         surveyed area of Pennsylvania’s
expect? What are the potential                          ily impacted by gas development in          Marcellus region.
school and district-level impacts?                      Pennsylvania’s northern tier. Unless        	    Districts in areas with high
What are the most appropriate ways                      otherwise noted, in this publica-           drilling activity area, including the
to prepare for and respond to com-                      tion we primarily discuss data from         10-mile buffer zone, were those in
munity change associated with                           school district respondents only.           which 69 or more Marcellus wells
unconventional gas development?                                                                     had been drilled. This included 61
Understanding and managing the                          Findings                                    school districts in the northern tier
opportunities and risks associated                      In this report we focus on four             and 35 school districts in south-
with the growing Marcellus gas                          broad areas in which schools may            western Pennsylvania.
industry will be critical to ensur-                     see direct effects as a consequence         	    During interviews in areas with
ing the long-term well-being of                         of Marcellus shale gas development:         high drilling activity, we asked
Pennsylvania residents and com-                         school demographics; student out-           school leaders what lessons they
munities, and schools will play im-                     comes and workforce development;            had learned and what advice they
portant roles in helping to manage                      effects on local roads and transpor-        might offer their counterparts in
these transitions.                                      tation; broader community services          other parts of the state regarding
                                                        and infrastructure. We examine              gas development and impacts on
Methods and Research Goals                              these impacts in part by comparing          schools and communities. We use
The data we draw from in this re-                       the perceptions of school district          these interview data, in combina-
port come from a survey sent to                         leaders in areas with high drilling         tion with the survey data, to sug-
superintendents, high school princi-                    activity to those in areas with lower       gest what the implications are for
pals, high school directors of curric-                  drilling activity. (Note: The CTC           school leader practice as drilling
ulum and instruction, and directors                     data we use were not subclassified          activity increases.
of Career and Technology Centers                        by drilling activity levels because
(CTCs). Our respondents were se-                        of the larger areas covered by CTCs         Effects on School Demographics
lected by identifying all Pennsylva-                    and the lower number of CTCs as             One of the most pressing questions
nia school districts and career and                     compared with school districts.)            Marcellus development poses for
technology centers located within                       	    To classify school districts we        schools is the extent to which gas
the 17 intermediate units (including                    used GIS techniques to calculate            industry jobs will be accompanied
1–11, 16–19, and 27–28) of the Mar-                     10-mile buffer areas around the geo-        by influxes of new populations. If
cellus Shale region (Figure 3). This                    graphic area of each school district        so, will this result in school enroll-
resulted in a total sample popula-                      and then calculated the number of           ment changes and/or increases?
tion of 940 from 309 school districts                   wells drilled as of July 2011 within        Based on our survey data, school
and 49 CTCs.                                            each Pennsylvania school district           personnel have reported relatively
                                                                                                    low impacts on enrollments. While
                                                                                                    about 25 percent of respondents
Figure 3. Map showing Pennsylvania school districts with Marcellus wells (surveyed area in gray).
                                                                                                    from areas with high drilling activ-
                                                                                                    ity reported major or substantial
                                                                                                    new in-migration to local areas,
                                                                                                    only about 4 percent of those same
                                                                                                    respondents reported school enroll-
                                                                                                    ment increases (Table 1). Pennsyl-
                                                                                                    vania Department of Education en-
                                                                                                    rollment data from academic years
                                                                                                    2007–08 and 2010–11 likewise do
                                                                                                    not suggest significant differences
                                                                                                    in changes in total enrollment with
                                                                                                    regard to local drilling activity (data
                                                                                                    not shown here).
                                                                                                    	    Similarly, a relatively small per-
                                                                                                    centage of respondents from areas
                                                                                                    with high drilling activity report
                                                                                                    significant increases in English lan-
                                                                                                    guage learner (ELL) populations: less
                                                                                                    than 6 percent as compared to less
Table 1. Perceptions of effects of Marcellus development on local schools and communities: local and school       Effects on Student Outcomes and
demographics.
                                                                                                                  Workforce Development
                                                                  School district        School district          Advocates of Marcellus develop-
                                                               respondents in areas      respondents in
                                                                                                                  ment note its job creation and
                                                                with lower drilling     areas with high
                                                                   activity (%)        drilling activity (%)
                                                                                                                  economic development potential,
Respondents reporting major or substantial local effect on:
                                                                                                                  especially in areas of the state that
                                                                                                                  have long experienced economic
New people moving into the area                                              2.4              25.4
                                                                                                                  decline and outmigration. How
School enrollment increases                                                  1.2               4.3
                                                                                                                  might schools and CTCs respond
Changes in school population                                                 1.2               4.2
                                                                                                                  in the areas of education, training,
Increases in English language learner (ELL) populations                      0.8               5.6
                                                                                                                  and workforce development? How
N=                                                                          294                78
                                                                                                                  might new economic opportunities
than 1 percent in districts located                      likely involve challenges in inte-                       affect student career and education-
in areas with lower drilling activ-                      grating new students into school                         al aspirations?
ity. This may be due to the influx of                    environments and accessing appro-                        	   Across all respondents, educa-
workers from out of state who are                        priate school records, especially if                     tional and workforce development
single or have left families behind.                     students are moving into local areas                     related to Marcellus development is
In some areas, minimal enrollment                        from out of state.                                       highly salient. Nearly half of school
change may also be partially ac-                                                                                  district respondents in areas with
                                                         Implications for School Leaders:                         lower drilling activity had reported
counted for by the lack of housing
opportunities. The likelihood of en-                     •	 New students are often home-                          seeing, hearing, or reading “a great
rollment increases are diminished if                        sick and may experience “culture                      deal” about Marcellus develop-
local housing opportunities are lim-                        shock” in their new environment,                      ment, while about 70 percent of
ited, as in the case in many of the                         especially if they arrive from out                    school district respondents in areas
smaller, more rural districts where                         of state. Because of this, educators                  with high drilling activity and CTC
Marcellus shale gas extraction is                           and administrators may consider                       directors responded similarly. Dif-
taking place.                                               special measures to introduce and                     ferences are more evident in imple-
	    This does not mean, however,                           integrate new students into the                       menting workforce development
that enrollment change will not                             school environment and establish                      and/or curricular change—while
occur as drilling activity increases                        relationships with parents who                        about 55 percent of CTC respon-
and spreads across Pennsylvania.                            are new to the area.                                  dents reported Marcellus-related
Relatively stable total enrollment                       •	 Transfer of student records is im-                    workforce development and/or
numbers can hide significant stu-                           portant for the smooth transition                     curricular change, that percentage
dent turnover occurring as a con-                           of services and student place-                        was far lower among school dis-
sequence of economic insecurity,                            ment. One strategy is for school                      trict respondents (Table 2). This is
housing shortages, and rising rental                        districts to communicate with                         despite a substantial majority of re-
prices. A northern tier school dis-                         gas companies that can then pass                      spondents overall predicting a large
trict administrator told us, “We’re                         information on to their workers                       effect of gas development on local
seeing a lot more of the local popu-                        with families about what kinds                        economies and workforce.
lation being more transient, [lo-                           of information schools need in                        	   Although one-third of school
cal residents] who may be in the                            order to ensure a smooth registra-                    district respondents in areas with
lower income bracket and can’t af-                          tion and transition for students.                     high drilling activity reported that
ford housing, bouncing within the                           These include immunization re-                        most students were very aware of
school district and also from school                        cords, academic records, individ-                     Marcellus-related job opportuni-
district to school district looking                         ualized educational plans (IEPs),                     ties, almost two-thirds reported that
for cheap rent.” In either instance,                        and other necessary records.                          they lacked sufficient information
enrollment change or increase may                                                                                 about workforce needs to make in-

Table 2. School district and CTC administrator awareness of Marcellus development, and institutional response.
                                                                                   School district respondents    School district respondents
                                                                                   in areas with lower drilling    in areas with high drilling   CTC respondents in
                                                                                           activity (%)                   activity (%)              all areas (%)
Respondents reporting that:
They have seen, heard or read a “great deal” about Marcellus development                          45.1                          71.8                    66.7
They have discussed curricular and/or workforce development change in                             40.6                          73.1                    95.8
response to Marcellus development
Curricular and/or workforce development change in response to Marcellus                           24.4                          22.8                    54.5
development has been discussed and implemented within their district school or
CTC

Respondents agreeing or strongly agreeing that:
Marcellus development will have a big effect on our local economy                                 51.9                          82.4                    77.8
Marcellus development will have a big effect on our local workforce needs                         59.3                          82.4                    91.3
N=                                                                                                294                            78                      24
Table 3. School district and CTC administrator perceptions of Marcellus development on local schools and communities: student outcomes and workforce development.
                                                                                  School district respondents    School district respondents
                                                                                  in areas with lower drilling    in areas with high drilling    CTC respondents
                                                                                          activity (%)                   activity (%)           from all areas (%)
Respondents agreeing or strongly agreeing that:
Students seem very aware of Marcellus-related workforce opportunities                            10.9                         33.2                  43.5
We lack sufficient information about workforce needs connected to Marcellus-                     76.8                         61.4                  41.6
related jobs to justify changes in curricula
Making investments of time and energy in workforce development and curricular                    47.5                         47.1                  30.4
change is risky because of how long Marcellus-related jobs will last
Balancing workforce development with core curricular requirements represents a                   70.0                         72.3                  75.0
significant challenge
Workforce development is a more appropriate role for CTCs than for high schools                  35.3                         47.2                  87.5
Financial constraints would make it difficult for my district/CTC to make                        68.6                         64.3                  65.2
curriculum changes in response to Marcellus shale natural gas development
Most jobs connected to Marcellus development will not require a four-year                        71.1                         72.1                  86.4
college degree or more
Local workforce demands connected to Marcellus-related jobs has increased the                    11.0                         17.4                   4.8
likelihood of students dropping out to enter the workforce
Students see postsecondary education as a way to acquire skills and                              22.8                         40.3                  35.0
qualifications necessary for Marcellus-related job opportunities
New Marcellus shale natural gas jobs are more likely to be filled by men than                    67.7                         83.6                  81.8
women
N=                                                                                               294                            78                   24

formed decisions about curricular                       future demand with little direction                      direct workforce needs will require
changes that might meaningfully                         from the Workforce Investment                            relatively little postsecondary educa-
address workforce needs (Table 3).                      Board or regional economic develop-                      tion or trade certifications (Marcel-
About half of all school district                       ment agencies. There doesn’t seem                        lus Shale Education and Training
respondents expressed doubt regard-                     to be a very well-coordinated effort                     Center 2009). This led some inter-
ing the longevity of Marcellus-relat-                   to ensure we prepare our students                        view and survey respondents to
ed jobs. Respondents also expressed                     for careers in the industry.”                            express concern about the possible
frustration over a relative lack of                     	   This uncertainty was less                            effects on student educational aspi-
communication between school dis-                       evident among respondents from                           rations and the transition to college.
tricts, CTCs, and the gas industry,                     CTCs, although even CTC directors                        	   In part because most of the
and disagreement over the appropri-                     expressed a need for more and better                     direct industry workforce needs
ate workforce development roles                         information to guide workforce de-                       require relatively limited training,
of school districts, CTCs, and the                      velopment efforts. In an open-ended                      about 17 percent of respondents
gas industry itself. While almost 90                    survey question about the most sig-                      in areas with high drilling activity
percent of CTC respondents agreed                       nificant challenges associated with                      believed that local opportunities
or strongly agreed that workforce                       Marcellus development, CTC direc-                        might actually increase dropout
development was a more appropri-                        tors wrote that significant challeng-                    rates as students leave school for
ate role for CTCs than high schools,                    es included the “lack of information                     industry jobs. This concern was
less than half of school district re-                   about the workforce needs and the                        reiterated in the interviews, with
spondents responded similarly.                          industry in general,” “identifying                       some respondents identifying a
	   One survey respondent re-                           the employers and what skills they                       “credibility gap” between the infor-
lated, “Schools lack workplace skill                    need employees to have so we can                         mation schools were able to provide
knowledge. What skills does the gas                     adapt our curriculum to meet those                       students about workforce require-
industry require? Are the skills tech-                  needs,” and “providing timely cur-                       ments, the workforce requirements
nical in nature, or are they looking                    riculum and training.” Across all                        stated by industry representatives,
for well-rounded general education                      respondents, financial constraints                       and “common knowledge” within
skills? Do the companies expect to                      and the need to address core cur-                        local communities about who
hire highly qualified individuals who                   ricular requirements were identified                     might be eligible for work. Simi-
know the tasks, or do they provide                      as impediments to devising and of-                       larly, most respondents did not be-
the technical training?”                                fering Marcellus-related workforce                       lieve students were looking toward
	   Another wrote, “In relation to                      development.                                             postsecondary education as a means
educational programming changes                         	   Further, while many educators                        of gaining skills and credentials for
specific to the needs of the Mar-                       see student preparation for postsec-                     Marcellus-related jobs.
cellus industry, little seems to be                     ondary education as part of their                        	   Despite uncertainty and a per-
coming our way (K–12) in terms of                       mission, almost three-quarters of re-                    ceived lack of information, inter-
specific information on modifying                       spondents overall believe that most                      views with educational leaders in
educational programming. STEM                           jobs connected to the Marcellus                          Pennsylvania’s northern tier sug-
initiatives are not specific simply                     industry will not require a four-year                    gest that not only have Marcellus-
to this industry….The county CTC                        college degree. This is consistent                       related workforce needs created
is exploring educational opportuni-                     with a recent report suggesting that                     new opportunities for young people
ties to modify programming to meet                      about three-quarters of the industry’s                   exiting secondary school, but that
these opportunities have made              students about industry-related        vastly increased travel time for lo-
CTC programming more attractive            workforce opportunities.               cal residents, and in other cases it
to students. A principal from a          •	 A common perception is that           has directly interfered with school
northern tier district explained that       Marcellus industry jobs heavily       bus routes and otherwise hindered
Marcellus-related job opportunities         favor men. Therefore, a need ex-      travel to and from school for staff
had largely removed the stigma pre-         ists for information about work       and students. There have also been
viously associated with vocational          opportunities for women within        public safety concerns associated
education. “(The students) know             the industry and industry-related     with road accidents and the pres-
that they’re only going to be held          employment.                           ence of heavy truck traffic while
back by how hard they’re willing to                                               school buses load and unload.
work.” A strong perception, how-         •	 Budgetary constraints may             	    Over 63 percent of respondents
ever, also exists that opportunities        significantly limit workforce         from areas with high drilling activ-
are strongly gendered and jobs are          development efforts by school         ity reported significantly increased
more likely to be filled by men than        districts and CTCs. Dovetailing       traffic congestion and the increases
women, raising questions about the          Marcellus-related workforce de-       in big truck traffic. This compares
equity of opportunity and how to            velopment with core curricular        with about 12 percent for respon-
best provide information and train-         requirements may represent an         dents from less affected areas. In in-
ing to women regarding Marcellus-           important opportunity to en-          terviews, respondents repeatedly de-
related employment.                         hance these workforce develop-        scribed challenges associated with
                                            ment efforts.                         roads, traffic, transportation, and
Implications for School Leaders                                                   public safety. Many school leaders
•	 Educators need accurate and up-       Effects on Local Roads and               told us that the initial experiences
   to-date information about indus-      Transportation                           the gas industry had with road dam-
   try workforce needs, both short       While shallow gas drilling has taken     age would likely lead to more proac-
   and long range, to effectively ad-    place in Pennsylvania for decades,       tive practices regarding road repairs
   vise students regarding workforce     unconventional gas extraction is         and improvements. Nonetheless,
   preparation and educational and       a far more industrially intensive        disruption to school bus routes and
   training requirements. Educators      activity because of its scale and the    public safety concerns were fre-
   and guidance staff also need infor-   materials used. Typically, a well        quently noted.
   mation regarding the longevity of     pad site covers approximately 3–5
   workforce needs. As much as 98        acres, with access roads built to the    Implications for School Leaders
   percent of direct workforce needs     site for heavy equipment. A stan-        •	 Before gas development begins,
   of the gas industry may be asso-      dard Marcellus well pad with seven          identify roads in the district that
   ciated with the initial build-out     well heads can require thousands            may be most heavily affected
   phase connected to drilling and       of tanker truck and heavy equip-            and/or damaged by heavy truck
   pipeline construction (Marcel-        ment trips for building, drilling, and      traffic. Advocate for the improve-
   lus Shale Education and Training      hydraulic fracturing. Much of the           ment of those roads by gas com-
   Center 2009). Educators and guid-     traffic is associated with the 3–5          panies prior to heavy use of those
   ance counselors need information      million gallons of water required           roads by heavy trucks associated
   regarding workforce demand and        per well, all of which needs to be          with the gas industry.
   how to communicate this effec-        transported onto the site, and much      •	 Make efforts to establish produc-
   tively to students to best inform     of which subsequently needs to be           tive working relationships early
   educational and career planning.      taken off site and treated as waste-        on with gas companies operating
   Educators should be aware of the      water (see National Park Service            within the local area and ensure
   potential impacts of Marcellus        2009).                                      that open lines of communica-
   development on post-secondary         	    This can result in significant         tion are established early. This is
   transitions and dropouts.             physical impacts on the roads them-         especially critical with regard to
•	 More effective communication          selves. In many areas of the state          school bus transportation routes
   between school districts, CTCs        where Marcellus drilling has rapidly        and bus route schedules so that,
   and the gas industry would help       expanded, local roads have not been         if possible, heavy truck traffic
   to streamline workforce devel-        able to withstand the heavy truck           can be scheduled to avoid roads
   opment efforts, clarify roles of      traffic and in some instances roads         and times of day when school
   school districts and CTCs in          (including those used by school bus         buses are picking up and drop-
   workforce development, and re-        routes) have become temporarily             ping off students.
   duce duplication of efforts.          impassable due to damage and re-
                                         pair. Repaired roads can also result
•	 Educators should take advan-          in new hazards when road beds are        Effects on Broader Community
   tage of opportunities to draw         built up to accommodate heavier          Services and Infrastructure
   upon former students (male            vehicles if road shoulders are not       Many communities within Pennsyl-
   and female) working with gas          also improved and built up to avoid      vania’s Marcellus region have seen
   companies in a variety of differ-     steep drop-offs at the road edge.        a dramatic increase in economic
   ent capacities to give presenta-      	    Congestion and road damage          activity, not only as a consequence
   tions and/or speak with current       and/or repair has, in some cases,        of direct drilling efforts, but also in
services and retail sectors (see Kelsey                     respondents in areas with high drill-             	    In interviews, respondents de-
et al., 2011; PA Dept. of Labor and                         ing activity reported major or sub-               scribed local rents increasing by as
Industry 2011; Ward and Kelsey                              stantial local problems with water                much as three- or fourfold. This has
2011). Key counties with heavy de-                          and/or environmental quality issues               led to short-term residential stopgap
velopment activity have experienced                         associated with the gas industry.                 solutions, including “couch surfing”
pronounced drops in unemployment                            This compared to about 7 percent                  or “doubling up” with local friends
rates. Survey data suggest the ways                         in areas with lower drilling activity             or family. New forms of homeless-
in which active gas industry devel-                         (Table 4).                                        ness have emerged in many districts
opment has affected local economies                         	    Other than road congestion                   where homelessness previously had
through job and wealth creation and                         and damage, the most significant                  not been experienced, including
business start-ups.                                         community impact reported by                      among students from gas worker
	    In most cases, however, local                          educators concerned housing costs                 families living in campers and mo-
economic development has fewer                              and availability, especially in rural             bile homes because of local hous-
direct and immediate effects on                             areas with limited housing stock,                 ing shortages. Housing shortages
schools. In Pennsylvania, subsur-                           and strains on local public services.             and increased costs also have raised
face property is not subject to prop-                       Housing impacts are likely to be                  questions for school districts regard-
erty tax, and there is no severance                         especially felt within smaller com-               ing the recruitment and retention
or extraction tax on the production                         munities with limited pre-existing                of teachers and other district staff,
of mineral resources. Recent pro-                           housing stock, and felt by renters                especially under circumstances in
posals for an impact fee do not in-                         and others at the economic margins,               which district budgets are not able
clude provisions that would funnel                          including the unemployed and/or                   to provide wages commensurate
resources directly back to schools                          disabled, those relying on govern-                with increased housing costs.
(see Costanzo and Kelsey 2011; Ja-                          ment assistance and the working
cobson 2010).                                               poor (Williamson and Kolb 2011).                  Implications for School Leaders
	    Respondents report that prop-                          As Table 4 shows, while respon-                   •	 Housing will likely play a very
erty taxes, from which schools re-                          dents in areas with high drilling ac-                significant role in the demo-
ceive local funding, have not been                          tivity describe pronounced econom-                   graphic effects of Marcellus de-
significantly affected. In a number                         ic activity, including job and wealth                velopment. This may affect not
of instances school districts have                          creation and economic growth, only                   only the families of students and
earned revenue from leasing land                            5 percent note any real increase in                  local resident more broadly but
to gas companies. In interviews,                            local tax revenues (despite noting                   also the ability of school districts
however, many educators expressed                           increased property values). How-                     to recruit and retain staff and
concern about the possibility of                            ever, nearly half of respondents                     teachers if affordable and ad-
contamination or methane migra-                             report increased rents, and over one-                equate housing is not available.
tion into well water in instances                           third report housing shortages. Over
in which school districts were not                          a fifth noted the displacement of                 •	 School district personnel should
dependent on municipal water and                            low- and fixed-income residents and                  keep close track of enrollment
sewer systems. Over 38 percent of                           strains on public services.                          and student demographic changes
                                                                                                                 as well as changes in student
                                                                                                                 needs. These changing conditions
Table 4. Perceptions of effects of Marcellus development on local schools and communities: community             should be communicated to leg-
services and infrastructure.                                                                                     islators and public policy mak-
                                                                  School district       School district          ers to ensure the well-being of
                                                               respondents in areas     respondents in           residents within Pennsylvania’s
                                                                with lower drilling     areas with high          Marcellus communities.
                                                                   activity (%)       drilling activity (%)
                                                                                                              •	 Schools dependent on well water
Respondents agreeing or strongly agreeing that:
                                                                                                                 should test water and get reliable
My school district may lose employees to the natural gas                 7.4                  20.9
industry or industry-related jobs                                                                                baseline data before the onset of
                                                                                                                 significant local drilling activ-
Reporting agreeing or strongly agreeing on the following:
                                                                                                                 ity. This should be completed by
Road congestion and/or wear and tear                                    11.6                  63.4
                                                                                                                 third-party chain-of-custody test-
                                                                                                                 ing by certified labs. If a district
Increases in rental costs                                                4.2                  45.4
                                                                                                                 leases property, water monitoring
Strains on local public services                                         3.0                  43.6
                                                                                                                 should be included as part of the
Water and/or environmental quality problems                              7.0                  38.3
                                                                                                                 lease agreement.
Housing shortages                                                        4.0                  35.9
Job creation                                                             6.0                  33.8            •	 School district personnel should
Increases in property values                                             5.7                  29.7               have accurate and up-to-date in-
Displacement of low and fixed income residents                           1.2                  22.6               formation regarding available so-
Business start-ups                                                       3.3                  21.6               cial services that may be utilized
Increases in local tax revenues                                          1.2                   4.9               by families and children within
                                                                                                                 the district, especially those who
N=                                                                      294                    78                are new or newly displaced.
Conclusions                                       Costanzo, C., and T. Kelsey. Marcellus Educa-      Put Our Experience to Work for Your
                                                  tion Fact Sheet: State Tax Implications of Mar-
School district administrators                    cellus Shale—What the Pennsylvania Data Say.       Community
within Pennsylvania’s Marcellus                   University Park: Penn State Extension, 2011.
                                                                                                     The Penn State Cooperative Extension Mar-
region, like the communities they                 pubs.cas.psu.edu/FreePubs/pdfs/ua468.pdf.
                                                                                                     cellus Education Team strives to bring you
serve, need to be aware of and plan               Engelder, T. “Marcellus.” Fort Worth Basin Oil     accurate, up-to-date information on natural
for the different phases of gas de-               & Gas Magazine (August, 18–22, 2009).
                                                                                                     gas exploration and drilling in Pennsylva-
velopment. There is a close inter-                Jacobson, M. Marcellus Education Fact Sheet:       nia. Learn about your rights and choices
relationship between community                    Tax Treatment of Natural Gas. University Park:
                                                                                                     as a landowner, a businessperson, a local
well-being and school well-being.                 Penn State Extension, 2011. pubs.cas.psu.edu/
                                                  FreePubs/PDFs/uh190.pdf.                           official, or a concerned citizen. Discover the
Because of this interrelationship,
                                                                                                     resources available to you.
schools are well placed to be active              Jacquet, J. “Energy Boomtowns and Natural
community partners with other                     Gas: Implications for Marcellus Shale Local        Visit naturalgas.psu.edu.
                                                  Governments and Rural Communities.” NER-
community stakeholders in engag-                  CRD Rural Development Paper 43 (January).
ing in discussion and debate about                University Park, Pa.: The Northeast Regional
                                                                                                       Penn State Cooperative Extension
how Marcellus development can be                  Center for Rural Development, 2009.
                                                                                                       Penn State Cooperative Extension has a special
strategically managed for long-term               Johnson, T. Report 1: Marcellus Shale Natural        mission—to enable individuals, families, commu-
and sustainable community devel-                  Gas and Wind—Pennsylvania Energy Impacts             nities, agriculture, businesses, industries, and or-
opment. While rapid expansion of                  Assessment. Arlington, Va.: The Nature Conser-       ganizations to make informed decisions. Through
                                                  vancy, 2010.                                         a system of county-based offices, we extend
economic activity can have many
                                                                                                       technical expertise and practical, how-to educa-
positive effects for schools and com-             Kay, D. “The Economic Impact of Marcellus
                                                                                                       tion based on land-grant university research to
                                                  Shale Gas Drilling: What Have We Learned?
munities, Pennsylvania’s natural                  What Are the Limitations?” Working Paper Se-         help Pennsylvanians address important issues,
gas is a finite resource. A press-                ries: A Comprehensive Economic Impact Analy-         solve problems, and create a better quality of life.
ing—and difficult—question is how                 sis of Natural Gas Extraction in the Marcellus       From improving agriculture and building stronger
the shorter term economic boom                    Shale. Ithaca: Department of City and Regional       communities, to developing skills with today’s
                                                  Planning, Cornell University, 2010.                  youth, we are dedicated to giving Pennsylvanians
of Marcellus development can be
                                                                                                       the means to grow, achieve, compete, go farther,
strategically managed so that Penn-               Kelsey, T. W., M. Shields, J. R. Ladlee, M.
                                                                                                       and do more. Learn what extension can do for
                                                  Ward. Economic Impacts of Marcellus Shale
sylvania schools and communities                  in Pennsylvania: Employment and Income in            you. Contact your county cooperative extension
can maximize their opportunities                  2009. University Park: Penn State Extension,         office or visit www.extension.psu.edu.
for long-term social, economic, and               2011. www.marcellus.psu.edu/resources/PDFs/
                                                  Economic%20Impact%20of%20Marcellus%20                The Agricultural Law Resource and Reference
environmental sustainability.
                                                  Shale%202009.pdf.                                    Center
                                                                                                       The Agricultural Law Resource and Reference
Acknowledgments                                   Marcellus Shale Education and Training Center.       Center is a collaboration between Penn State’s
                                                  Marcellus Shale Workforce Needs Assessment.
This work was funded through the                  Williamsport: Penn College of Technology,
                                                                                                       Dickinson School of Law and Penn State’s Col-
Penn State Marcellus Center for                                                                        lege of Agricultural Sciences. Located at both
                                                  Marcellus Shale Education and Training Center,
                                                                                                       the University Park and Carlisle facilities and
Outreach and Research with addi-                  2009.
                                                                                                       funded in part by the Pennsylvania Department of
tional support from the Penn State                National Park Service. Development of the            Agriculture, the center is designed to provide the
Children Youth and Families Con-                  Natural Gas Resources in the Marcellus Shale.        highest-quality educational programs, informa-
sortium. We gratefully acknowledge                Washington, D.C.: U.S. Department of the Inte-       tion, and materials to those involved or interested
                                                  rior, 2009. marcellus.psu.edu/resources/PDFs/        in agricultural law and policy.
the time and efforts that a variety               marcellusshalereport09.pdf.
of educators and community stake-
holders within Pennsylvania’s                     Pennsylvania Department of Labor and Indus-
                                                  try. Marcellus Shale Fast Facts. April 2011 edi-
northern tier northern tier com-                  tion. Harrisburg: Pennsylvania Department of
munities took to speak with us. We                Labor and Industry, 2011. marcellus.psu.edu/
further acknowledge the contribu-                 resources/PDFs/fastfacts_labor.pdf.
tions of Jim Ladlee of Penn State                 Ward, M., and T. Kelsey. Marcellus Education       Penn State College of Agricultural Sciences research and
Extension in Clinton County and                   Fact Sheet: Local Business Impacts of Marcellus    extension programs are funded in part by Pennsylvania
Jeanette Carter from the Pennsylva-               Shale Development—The Experience in Brad-          counties, the Commonwealth of Pennsylvania, and the
                                                  ford and Washington Counties, 2010. Univer-
nia College of Technology in survey                                                                  U.S. Department of Agriculture.
                                                  sity Park: Penn State Extension, 2011. pubs.cas.
design and implementation. We                     psu.edu/freepubs/pdfs/ee0005.pdf.                  Visit Penn State Extension on the web: extension.psu.edu
gratefully acknowledge the efforts                Williamson, J., and B. Kolb. Marcellus Natu-       This publication is available from the Publications
of the Pennsylvania Association of                ral Gas Development’s Effects on Housing in
                                                                                                     Distribution Center, The Pennsylvania State University,
Rural and Small Schools (PARSS) in                Pennsylvania. Williamsport, Pa.: Center for the
                                                                                                     112 Agricultural Administration Building, University Park,
support of this work.                             Study of Community and the Economy (CSCE),
                                                  Lycoming College, 2011.                            PA 16802. For information, telephone 814-865-6713.

                                                                                                     This publication is available in alternative media on
Selected Bibliography                                                                                request.
Coleman, J. L., R. C. Milici, T. A. Cook, R. R.
                                                  Prepared by Kai A. Schafft, associate
Charpentier, M. Kirshbaum, T. R. Klett, R. M.                                                        Penn State is committed to affirmative action, equal
Pollastro, and C.J. Shenk. “Assessment of Un-     professor of education and director                opportunity, and the diversity of its workforce.
discovered Oil and Gas Resources of the Devo-     of the Penn State Center on Rural
nian Marcellus Shale of the Appalachian Basin     Education and Communities, with                    Produced by Ag Communications and Marketing
Province, 2011.” Fact Sheet 2011-3092. Wash-
ington, D.C.: U.S. Geologic Survey, 2011. pubs.
                                                  Leland L. Glenna, associate profes-                © The Pennsylvania State University 2012
usgs.gov/fs/2011/3092/pdf/fs2011-3092.pdf.        sor of rural sociology, Yetkin Borlu,
                                                                                                     CODE# EE0019 2M01/12mpc             4937
                                                  and Brandn Green.

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Penn State Cooperative Extension Marcellus Education Fact Sheet

  • 1. Marcellus Education Fact Sheet Marcellus Shale Gas Development: What Does It Mean for Pennsylvania Schools? Summary T his research brief discusses find- of water contamination in cases in ings from a survey of 940 school which district buildings relied on district superintendents, high well water. Respondents from some school principals, high school di- school districts, especially in areas rectors of curriculum and instruc- with high drilling activity, are con- tion, and directors of Career and cerned that Marcellus-related work- Technology Centers (CTCs) across force demands may increase dropout the 17 intermediate units located rates as students contemplate leaving within Pennsylvania’s Marcellus school to take advantage of emerging shale region. The survey data are employment opportunities. supplemented by data from inter- Respondents in areas with high views and focus groups with 50 drilling activity have reported sig- educational and community leaders nificantly tightened housing mar- across Pennsylvania’s northern tier kets, dramatic increases in housing in areas of intensive gas drilling. rental costs, and increased residen- The purpose of the research was to tial insecurity and homelessness. better understand the challenges Respondents report concerns about and opportunities associated with how this might affect recruitment Marcellus shale gas development as and retention of staff when district perceived by educational leaders. salaries can neither keep pace with We found that about one quar- rising local costs nor match gas- ter of school district respondents re- industry-related salaries. School dis- port making curricular adjustments trict respondents also report prob- in response to changing workforce lems with road congestion, damage, needs, although many report hav- and repair, issues that affect school ing insufficient information and bus routes and schedules as well as lack of coordination regarding how public safety. Respondents cite the best to meet the workforce develop- need for more information, greater ment needs of students. CTCs have resources, and increased commu- assumed a somewhat more robust nication and coordination between role in this regard. school districts, CTCs, and the gas While school district respon- industry to inform and enhance dents in areas with high drilling Marcellus-related workforce devel- activity report significant local opment. economic activity, they report that relatively little economic benefit Introduction has accrued back to schools. Some The Marcellus shale formation lies In cooperation with the Pennsylvania districts have leased land to gas com- beneath New York’s southern tier, Association of Rural and Small Schools panies, although some respondents about two-thirds of Pennsylvania, (PARSS) expressed concern about the risks and parts of Ohio and West Virginia
  • 2. (Figure 1). Long known to contain Figure 2. Marcellus wells drilled from January 2007 through November 2011. Source: PA DEP spud data. significant amounts of natural gas, until recently large-scale natural gas 4,500 extraction from the Marcellus shale was not technologically or econom- 4,000 Wells Drilled ically feasible. In the early 2000s, however, 3,500 advances in technology enabled 3,000 drilling rigs to bore into deep shale layers and then drill laterally 2,500 through the formation for as much as a mile or more. Natural gas can 2,000 then be recovered using a technique 1,500 called hydraulic fracturing in which large quantities of water, sand, or 1,000 ceramic proppants and chemicals are injected into the well at high 500 pressure, causing the shale layers to break apart along fracture lines, 0 while sand suspended in the fractur- 2007 2008 2009 2010 2011 ing fluid holds the shale fractures open. The gas previously trapped within the shale then flows into the and limited drilling had begun a few Marcellus Gas Development, well and to the surface, where it is years before that. As of November moved through pipelines to con- 2011, Pennsylvania Department Community Change, and sumer markets. of Environmental Protection data Implications for Schools As a consequence of these new showed that nearly 4,000 gas wells The rapid development of gas unconventional natural gas extrac- within the state had been drilled extraction from Pennsylvania’s tion techniques, estimates of recov- in the Marcellus shale layer (Figure Marcellus shale has already had erable natural gas from Marcellus 2). As many as 60,000 or more may profound impacts in many com- shale rose from less than 2 trillion be drilled in the coming decades in munities. A recent analysis suggests cubic feet (TCF) to as much as 489 Pennsylvania (see Johnson 2010). that in 2009 as Marcellus drilling TCF (see Engelder 2009; Coleman Because of this, indications strongly activity was still in its early stages, et al), setting off a gas rush within suggest that Pennsylvania is experi- between 23,000 and 24,00 jobs Pennsylvania’s Marcellus region in encing only the beginning stages of were created, with over $3 billion about 2008, although permitting unconventional gas development. added to Pennsylvania’s economy (see Kelsey et al. 2011). Especially Figure 1. Extent and thickness of Marcellus shale. Source: Marcellus Center for Outreach and Research. in places that have experienced long-term economic stagnation, gas industry-related job growth and unanticipated local revenues from leasing drilling rights have been welcomed by many residents and businesses. However, Marcellus shale gas development is accompanied by significant challenges as well. In this regard, while environmental concerns related to the impacts of unconventional gas extraction have arguably received the most media attention, natural resource “booms” also typically result in other types of community stress. These may include impacts on physical infra- structure such as roads and bridges, as well as social infrastructure, including human services, health care, housing, and schools. In this fact sheet we will look at local challenges specifically con- nected to how rapid unconventional gas development may directly affect
  • 3. schools and how schools within Surveys were administered and associated buffer area. We clas- the Marcellus region of Pennsylva- in spring and summer 2011, from sified districts in area with high nia have responded to community which we received a 42 percent us- drilling activity as those that fell change associated with unconven- able response rate. We supplement- into the top 20 percent with regard tional gas extraction. ed the survey administration with Marcellus wells drilled. We then What types of community interviews conducted with more compared school districts in areas changes associated with unconven- than 50 educators, educational ad- with high drilling activity to all tional gas development can educa- ministrators, and county human other school districts within the tors and educational administrators service staff within counties heav- surveyed area of Pennsylvania’s expect? What are the potential ily impacted by gas development in Marcellus region. school and district-level impacts? Pennsylvania’s northern tier. Unless Districts in areas with high What are the most appropriate ways otherwise noted, in this publica- drilling activity area, including the to prepare for and respond to com- tion we primarily discuss data from 10-mile buffer zone, were those in munity change associated with school district respondents only. which 69 or more Marcellus wells unconventional gas development? had been drilled. This included 61 Understanding and managing the Findings school districts in the northern tier opportunities and risks associated In this report we focus on four and 35 school districts in south- with the growing Marcellus gas broad areas in which schools may western Pennsylvania. industry will be critical to ensur- see direct effects as a consequence During interviews in areas with ing the long-term well-being of of Marcellus shale gas development: high drilling activity, we asked Pennsylvania residents and com- school demographics; student out- school leaders what lessons they munities, and schools will play im- comes and workforce development; had learned and what advice they portant roles in helping to manage effects on local roads and transpor- might offer their counterparts in these transitions. tation; broader community services other parts of the state regarding and infrastructure. We examine gas development and impacts on Methods and Research Goals these impacts in part by comparing schools and communities. We use The data we draw from in this re- the perceptions of school district these interview data, in combina- port come from a survey sent to leaders in areas with high drilling tion with the survey data, to sug- superintendents, high school princi- activity to those in areas with lower gest what the implications are for pals, high school directors of curric- drilling activity. (Note: The CTC school leader practice as drilling ulum and instruction, and directors data we use were not subclassified activity increases. of Career and Technology Centers by drilling activity levels because (CTCs). Our respondents were se- of the larger areas covered by CTCs Effects on School Demographics lected by identifying all Pennsylva- and the lower number of CTCs as One of the most pressing questions nia school districts and career and compared with school districts.) Marcellus development poses for technology centers located within To classify school districts we schools is the extent to which gas the 17 intermediate units (including used GIS techniques to calculate industry jobs will be accompanied 1–11, 16–19, and 27–28) of the Mar- 10-mile buffer areas around the geo- by influxes of new populations. If cellus Shale region (Figure 3). This graphic area of each school district so, will this result in school enroll- resulted in a total sample popula- and then calculated the number of ment changes and/or increases? tion of 940 from 309 school districts wells drilled as of July 2011 within Based on our survey data, school and 49 CTCs. each Pennsylvania school district personnel have reported relatively low impacts on enrollments. While about 25 percent of respondents Figure 3. Map showing Pennsylvania school districts with Marcellus wells (surveyed area in gray). from areas with high drilling activ- ity reported major or substantial new in-migration to local areas, only about 4 percent of those same respondents reported school enroll- ment increases (Table 1). Pennsyl- vania Department of Education en- rollment data from academic years 2007–08 and 2010–11 likewise do not suggest significant differences in changes in total enrollment with regard to local drilling activity (data not shown here). Similarly, a relatively small per- centage of respondents from areas with high drilling activity report significant increases in English lan- guage learner (ELL) populations: less than 6 percent as compared to less
  • 4. Table 1. Perceptions of effects of Marcellus development on local schools and communities: local and school Effects on Student Outcomes and demographics. Workforce Development School district School district Advocates of Marcellus develop- respondents in areas respondents in ment note its job creation and with lower drilling areas with high activity (%) drilling activity (%) economic development potential, Respondents reporting major or substantial local effect on: especially in areas of the state that have long experienced economic New people moving into the area 2.4 25.4 decline and outmigration. How School enrollment increases 1.2 4.3 might schools and CTCs respond Changes in school population 1.2 4.2 in the areas of education, training, Increases in English language learner (ELL) populations 0.8 5.6 and workforce development? How N= 294 78 might new economic opportunities than 1 percent in districts located likely involve challenges in inte- affect student career and education- in areas with lower drilling activ- grating new students into school al aspirations? ity. This may be due to the influx of environments and accessing appro- Across all respondents, educa- workers from out of state who are priate school records, especially if tional and workforce development single or have left families behind. students are moving into local areas related to Marcellus development is In some areas, minimal enrollment from out of state. highly salient. Nearly half of school change may also be partially ac- district respondents in areas with Implications for School Leaders: lower drilling activity had reported counted for by the lack of housing opportunities. The likelihood of en- • New students are often home- seeing, hearing, or reading “a great rollment increases are diminished if sick and may experience “culture deal” about Marcellus develop- local housing opportunities are lim- shock” in their new environment, ment, while about 70 percent of ited, as in the case in many of the especially if they arrive from out school district respondents in areas smaller, more rural districts where of state. Because of this, educators with high drilling activity and CTC Marcellus shale gas extraction is and administrators may consider directors responded similarly. Dif- taking place. special measures to introduce and ferences are more evident in imple- This does not mean, however, integrate new students into the menting workforce development that enrollment change will not school environment and establish and/or curricular change—while occur as drilling activity increases relationships with parents who about 55 percent of CTC respon- and spreads across Pennsylvania. are new to the area. dents reported Marcellus-related Relatively stable total enrollment • Transfer of student records is im- workforce development and/or numbers can hide significant stu- portant for the smooth transition curricular change, that percentage dent turnover occurring as a con- of services and student place- was far lower among school dis- sequence of economic insecurity, ment. One strategy is for school trict respondents (Table 2). This is housing shortages, and rising rental districts to communicate with despite a substantial majority of re- prices. A northern tier school dis- gas companies that can then pass spondents overall predicting a large trict administrator told us, “We’re information on to their workers effect of gas development on local seeing a lot more of the local popu- with families about what kinds economies and workforce. lation being more transient, [lo- of information schools need in Although one-third of school cal residents] who may be in the order to ensure a smooth registra- district respondents in areas with lower income bracket and can’t af- tion and transition for students. high drilling activity reported that ford housing, bouncing within the These include immunization re- most students were very aware of school district and also from school cords, academic records, individ- Marcellus-related job opportuni- district to school district looking ualized educational plans (IEPs), ties, almost two-thirds reported that for cheap rent.” In either instance, and other necessary records. they lacked sufficient information enrollment change or increase may about workforce needs to make in- Table 2. School district and CTC administrator awareness of Marcellus development, and institutional response. School district respondents School district respondents in areas with lower drilling in areas with high drilling CTC respondents in activity (%) activity (%) all areas (%) Respondents reporting that: They have seen, heard or read a “great deal” about Marcellus development 45.1 71.8 66.7 They have discussed curricular and/or workforce development change in 40.6 73.1 95.8 response to Marcellus development Curricular and/or workforce development change in response to Marcellus 24.4 22.8 54.5 development has been discussed and implemented within their district school or CTC Respondents agreeing or strongly agreeing that: Marcellus development will have a big effect on our local economy 51.9 82.4 77.8 Marcellus development will have a big effect on our local workforce needs 59.3 82.4 91.3 N= 294 78 24
  • 5. Table 3. School district and CTC administrator perceptions of Marcellus development on local schools and communities: student outcomes and workforce development. School district respondents School district respondents in areas with lower drilling in areas with high drilling CTC respondents activity (%) activity (%) from all areas (%) Respondents agreeing or strongly agreeing that: Students seem very aware of Marcellus-related workforce opportunities 10.9 33.2 43.5 We lack sufficient information about workforce needs connected to Marcellus- 76.8 61.4 41.6 related jobs to justify changes in curricula Making investments of time and energy in workforce development and curricular 47.5 47.1 30.4 change is risky because of how long Marcellus-related jobs will last Balancing workforce development with core curricular requirements represents a 70.0 72.3 75.0 significant challenge Workforce development is a more appropriate role for CTCs than for high schools 35.3 47.2 87.5 Financial constraints would make it difficult for my district/CTC to make 68.6 64.3 65.2 curriculum changes in response to Marcellus shale natural gas development Most jobs connected to Marcellus development will not require a four-year 71.1 72.1 86.4 college degree or more Local workforce demands connected to Marcellus-related jobs has increased the 11.0 17.4 4.8 likelihood of students dropping out to enter the workforce Students see postsecondary education as a way to acquire skills and 22.8 40.3 35.0 qualifications necessary for Marcellus-related job opportunities New Marcellus shale natural gas jobs are more likely to be filled by men than 67.7 83.6 81.8 women N= 294 78 24 formed decisions about curricular future demand with little direction direct workforce needs will require changes that might meaningfully from the Workforce Investment relatively little postsecondary educa- address workforce needs (Table 3). Board or regional economic develop- tion or trade certifications (Marcel- About half of all school district ment agencies. There doesn’t seem lus Shale Education and Training respondents expressed doubt regard- to be a very well-coordinated effort Center 2009). This led some inter- ing the longevity of Marcellus-relat- to ensure we prepare our students view and survey respondents to ed jobs. Respondents also expressed for careers in the industry.” express concern about the possible frustration over a relative lack of This uncertainty was less effects on student educational aspi- communication between school dis- evident among respondents from rations and the transition to college. tricts, CTCs, and the gas industry, CTCs, although even CTC directors In part because most of the and disagreement over the appropri- expressed a need for more and better direct industry workforce needs ate workforce development roles information to guide workforce de- require relatively limited training, of school districts, CTCs, and the velopment efforts. In an open-ended about 17 percent of respondents gas industry itself. While almost 90 survey question about the most sig- in areas with high drilling activity percent of CTC respondents agreed nificant challenges associated with believed that local opportunities or strongly agreed that workforce Marcellus development, CTC direc- might actually increase dropout development was a more appropri- tors wrote that significant challeng- rates as students leave school for ate role for CTCs than high schools, es included the “lack of information industry jobs. This concern was less than half of school district re- about the workforce needs and the reiterated in the interviews, with spondents responded similarly. industry in general,” “identifying some respondents identifying a One survey respondent re- the employers and what skills they “credibility gap” between the infor- lated, “Schools lack workplace skill need employees to have so we can mation schools were able to provide knowledge. What skills does the gas adapt our curriculum to meet those students about workforce require- industry require? Are the skills tech- needs,” and “providing timely cur- ments, the workforce requirements nical in nature, or are they looking riculum and training.” Across all stated by industry representatives, for well-rounded general education respondents, financial constraints and “common knowledge” within skills? Do the companies expect to and the need to address core cur- local communities about who hire highly qualified individuals who ricular requirements were identified might be eligible for work. Simi- know the tasks, or do they provide as impediments to devising and of- larly, most respondents did not be- the technical training?” fering Marcellus-related workforce lieve students were looking toward Another wrote, “In relation to development. postsecondary education as a means educational programming changes Further, while many educators of gaining skills and credentials for specific to the needs of the Mar- see student preparation for postsec- Marcellus-related jobs. cellus industry, little seems to be ondary education as part of their Despite uncertainty and a per- coming our way (K–12) in terms of mission, almost three-quarters of re- ceived lack of information, inter- specific information on modifying spondents overall believe that most views with educational leaders in educational programming. STEM jobs connected to the Marcellus Pennsylvania’s northern tier sug- initiatives are not specific simply industry will not require a four-year gest that not only have Marcellus- to this industry….The county CTC college degree. This is consistent related workforce needs created is exploring educational opportuni- with a recent report suggesting that new opportunities for young people ties to modify programming to meet about three-quarters of the industry’s exiting secondary school, but that
  • 6. these opportunities have made students about industry-related vastly increased travel time for lo- CTC programming more attractive workforce opportunities. cal residents, and in other cases it to students. A principal from a • A common perception is that has directly interfered with school northern tier district explained that Marcellus industry jobs heavily bus routes and otherwise hindered Marcellus-related job opportunities favor men. Therefore, a need ex- travel to and from school for staff had largely removed the stigma pre- ists for information about work and students. There have also been viously associated with vocational opportunities for women within public safety concerns associated education. “(The students) know the industry and industry-related with road accidents and the pres- that they’re only going to be held employment. ence of heavy truck traffic while back by how hard they’re willing to school buses load and unload. work.” A strong perception, how- • Budgetary constraints may Over 63 percent of respondents ever, also exists that opportunities significantly limit workforce from areas with high drilling activ- are strongly gendered and jobs are development efforts by school ity reported significantly increased more likely to be filled by men than districts and CTCs. Dovetailing traffic congestion and the increases women, raising questions about the Marcellus-related workforce de- in big truck traffic. This compares equity of opportunity and how to velopment with core curricular with about 12 percent for respon- best provide information and train- requirements may represent an dents from less affected areas. In in- ing to women regarding Marcellus- important opportunity to en- terviews, respondents repeatedly de- related employment. hance these workforce develop- scribed challenges associated with ment efforts. roads, traffic, transportation, and Implications for School Leaders public safety. Many school leaders • Educators need accurate and up- Effects on Local Roads and told us that the initial experiences to-date information about indus- Transportation the gas industry had with road dam- try workforce needs, both short While shallow gas drilling has taken age would likely lead to more proac- and long range, to effectively ad- place in Pennsylvania for decades, tive practices regarding road repairs vise students regarding workforce unconventional gas extraction is and improvements. Nonetheless, preparation and educational and a far more industrially intensive disruption to school bus routes and training requirements. Educators activity because of its scale and the public safety concerns were fre- and guidance staff also need infor- materials used. Typically, a well quently noted. mation regarding the longevity of pad site covers approximately 3–5 workforce needs. As much as 98 acres, with access roads built to the Implications for School Leaders percent of direct workforce needs site for heavy equipment. A stan- • Before gas development begins, of the gas industry may be asso- dard Marcellus well pad with seven identify roads in the district that ciated with the initial build-out well heads can require thousands may be most heavily affected phase connected to drilling and of tanker truck and heavy equip- and/or damaged by heavy truck pipeline construction (Marcel- ment trips for building, drilling, and traffic. Advocate for the improve- lus Shale Education and Training hydraulic fracturing. Much of the ment of those roads by gas com- Center 2009). Educators and guid- traffic is associated with the 3–5 panies prior to heavy use of those ance counselors need information million gallons of water required roads by heavy trucks associated regarding workforce demand and per well, all of which needs to be with the gas industry. how to communicate this effec- transported onto the site, and much • Make efforts to establish produc- tively to students to best inform of which subsequently needs to be tive working relationships early educational and career planning. taken off site and treated as waste- on with gas companies operating Educators should be aware of the water (see National Park Service within the local area and ensure potential impacts of Marcellus 2009). that open lines of communica- development on post-secondary This can result in significant tion are established early. This is transitions and dropouts. physical impacts on the roads them- especially critical with regard to • More effective communication selves. In many areas of the state school bus transportation routes between school districts, CTCs where Marcellus drilling has rapidly and bus route schedules so that, and the gas industry would help expanded, local roads have not been if possible, heavy truck traffic to streamline workforce devel- able to withstand the heavy truck can be scheduled to avoid roads opment efforts, clarify roles of traffic and in some instances roads and times of day when school school districts and CTCs in (including those used by school bus buses are picking up and drop- workforce development, and re- routes) have become temporarily ping off students. duce duplication of efforts. impassable due to damage and re- pair. Repaired roads can also result • Educators should take advan- in new hazards when road beds are Effects on Broader Community tage of opportunities to draw built up to accommodate heavier Services and Infrastructure upon former students (male vehicles if road shoulders are not Many communities within Pennsyl- and female) working with gas also improved and built up to avoid vania’s Marcellus region have seen companies in a variety of differ- steep drop-offs at the road edge. a dramatic increase in economic ent capacities to give presenta- Congestion and road damage activity, not only as a consequence tions and/or speak with current and/or repair has, in some cases, of direct drilling efforts, but also in
  • 7. services and retail sectors (see Kelsey respondents in areas with high drill- In interviews, respondents de- et al., 2011; PA Dept. of Labor and ing activity reported major or sub- scribed local rents increasing by as Industry 2011; Ward and Kelsey stantial local problems with water much as three- or fourfold. This has 2011). Key counties with heavy de- and/or environmental quality issues led to short-term residential stopgap velopment activity have experienced associated with the gas industry. solutions, including “couch surfing” pronounced drops in unemployment This compared to about 7 percent or “doubling up” with local friends rates. Survey data suggest the ways in areas with lower drilling activity or family. New forms of homeless- in which active gas industry devel- (Table 4). ness have emerged in many districts opment has affected local economies Other than road congestion where homelessness previously had through job and wealth creation and and damage, the most significant not been experienced, including business start-ups. community impact reported by among students from gas worker In most cases, however, local educators concerned housing costs families living in campers and mo- economic development has fewer and availability, especially in rural bile homes because of local hous- direct and immediate effects on areas with limited housing stock, ing shortages. Housing shortages schools. In Pennsylvania, subsur- and strains on local public services. and increased costs also have raised face property is not subject to prop- Housing impacts are likely to be questions for school districts regard- erty tax, and there is no severance especially felt within smaller com- ing the recruitment and retention or extraction tax on the production munities with limited pre-existing of teachers and other district staff, of mineral resources. Recent pro- housing stock, and felt by renters especially under circumstances in posals for an impact fee do not in- and others at the economic margins, which district budgets are not able clude provisions that would funnel including the unemployed and/or to provide wages commensurate resources directly back to schools disabled, those relying on govern- with increased housing costs. (see Costanzo and Kelsey 2011; Ja- ment assistance and the working cobson 2010). poor (Williamson and Kolb 2011). Implications for School Leaders Respondents report that prop- As Table 4 shows, while respon- • Housing will likely play a very erty taxes, from which schools re- dents in areas with high drilling ac- significant role in the demo- ceive local funding, have not been tivity describe pronounced econom- graphic effects of Marcellus de- significantly affected. In a number ic activity, including job and wealth velopment. This may affect not of instances school districts have creation and economic growth, only only the families of students and earned revenue from leasing land 5 percent note any real increase in local resident more broadly but to gas companies. In interviews, local tax revenues (despite noting also the ability of school districts however, many educators expressed increased property values). How- to recruit and retain staff and concern about the possibility of ever, nearly half of respondents teachers if affordable and ad- contamination or methane migra- report increased rents, and over one- equate housing is not available. tion into well water in instances third report housing shortages. Over in which school districts were not a fifth noted the displacement of • School district personnel should dependent on municipal water and low- and fixed-income residents and keep close track of enrollment sewer systems. Over 38 percent of strains on public services. and student demographic changes as well as changes in student needs. These changing conditions Table 4. Perceptions of effects of Marcellus development on local schools and communities: community should be communicated to leg- services and infrastructure. islators and public policy mak- School district School district ers to ensure the well-being of respondents in areas respondents in residents within Pennsylvania’s with lower drilling areas with high Marcellus communities. activity (%) drilling activity (%) • Schools dependent on well water Respondents agreeing or strongly agreeing that: should test water and get reliable My school district may lose employees to the natural gas 7.4 20.9 industry or industry-related jobs baseline data before the onset of significant local drilling activ- Reporting agreeing or strongly agreeing on the following: ity. This should be completed by Road congestion and/or wear and tear 11.6 63.4 third-party chain-of-custody test- ing by certified labs. If a district Increases in rental costs 4.2 45.4 leases property, water monitoring Strains on local public services 3.0 43.6 should be included as part of the Water and/or environmental quality problems 7.0 38.3 lease agreement. Housing shortages 4.0 35.9 Job creation 6.0 33.8 • School district personnel should Increases in property values 5.7 29.7 have accurate and up-to-date in- Displacement of low and fixed income residents 1.2 22.6 formation regarding available so- Business start-ups 3.3 21.6 cial services that may be utilized Increases in local tax revenues 1.2 4.9 by families and children within the district, especially those who N= 294 78 are new or newly displaced.
  • 8. Conclusions Costanzo, C., and T. Kelsey. Marcellus Educa- Put Our Experience to Work for Your tion Fact Sheet: State Tax Implications of Mar- School district administrators cellus Shale—What the Pennsylvania Data Say. Community within Pennsylvania’s Marcellus University Park: Penn State Extension, 2011. The Penn State Cooperative Extension Mar- region, like the communities they pubs.cas.psu.edu/FreePubs/pdfs/ua468.pdf. cellus Education Team strives to bring you serve, need to be aware of and plan Engelder, T. “Marcellus.” Fort Worth Basin Oil accurate, up-to-date information on natural for the different phases of gas de- & Gas Magazine (August, 18–22, 2009). gas exploration and drilling in Pennsylva- velopment. There is a close inter- Jacobson, M. Marcellus Education Fact Sheet: nia. Learn about your rights and choices relationship between community Tax Treatment of Natural Gas. University Park: as a landowner, a businessperson, a local well-being and school well-being. Penn State Extension, 2011. pubs.cas.psu.edu/ FreePubs/PDFs/uh190.pdf. official, or a concerned citizen. Discover the Because of this interrelationship, resources available to you. schools are well placed to be active Jacquet, J. “Energy Boomtowns and Natural community partners with other Gas: Implications for Marcellus Shale Local Visit naturalgas.psu.edu. Governments and Rural Communities.” NER- community stakeholders in engag- CRD Rural Development Paper 43 (January). ing in discussion and debate about University Park, Pa.: The Northeast Regional Penn State Cooperative Extension how Marcellus development can be Center for Rural Development, 2009. Penn State Cooperative Extension has a special strategically managed for long-term Johnson, T. Report 1: Marcellus Shale Natural mission—to enable individuals, families, commu- and sustainable community devel- Gas and Wind—Pennsylvania Energy Impacts nities, agriculture, businesses, industries, and or- opment. While rapid expansion of Assessment. Arlington, Va.: The Nature Conser- ganizations to make informed decisions. Through vancy, 2010. a system of county-based offices, we extend economic activity can have many technical expertise and practical, how-to educa- positive effects for schools and com- Kay, D. “The Economic Impact of Marcellus tion based on land-grant university research to Shale Gas Drilling: What Have We Learned? munities, Pennsylvania’s natural What Are the Limitations?” Working Paper Se- help Pennsylvanians address important issues, gas is a finite resource. A press- ries: A Comprehensive Economic Impact Analy- solve problems, and create a better quality of life. ing—and difficult—question is how sis of Natural Gas Extraction in the Marcellus From improving agriculture and building stronger the shorter term economic boom Shale. Ithaca: Department of City and Regional communities, to developing skills with today’s Planning, Cornell University, 2010. youth, we are dedicated to giving Pennsylvanians of Marcellus development can be the means to grow, achieve, compete, go farther, strategically managed so that Penn- Kelsey, T. W., M. Shields, J. R. Ladlee, M. and do more. Learn what extension can do for Ward. Economic Impacts of Marcellus Shale sylvania schools and communities in Pennsylvania: Employment and Income in you. Contact your county cooperative extension can maximize their opportunities 2009. University Park: Penn State Extension, office or visit www.extension.psu.edu. for long-term social, economic, and 2011. www.marcellus.psu.edu/resources/PDFs/ Economic%20Impact%20of%20Marcellus%20 The Agricultural Law Resource and Reference environmental sustainability. Shale%202009.pdf. Center The Agricultural Law Resource and Reference Acknowledgments Marcellus Shale Education and Training Center. Center is a collaboration between Penn State’s Marcellus Shale Workforce Needs Assessment. This work was funded through the Williamsport: Penn College of Technology, Dickinson School of Law and Penn State’s Col- Penn State Marcellus Center for lege of Agricultural Sciences. Located at both Marcellus Shale Education and Training Center, the University Park and Carlisle facilities and Outreach and Research with addi- 2009. funded in part by the Pennsylvania Department of tional support from the Penn State National Park Service. Development of the Agriculture, the center is designed to provide the Children Youth and Families Con- Natural Gas Resources in the Marcellus Shale. highest-quality educational programs, informa- sortium. We gratefully acknowledge Washington, D.C.: U.S. Department of the Inte- tion, and materials to those involved or interested rior, 2009. marcellus.psu.edu/resources/PDFs/ in agricultural law and policy. the time and efforts that a variety marcellusshalereport09.pdf. of educators and community stake- holders within Pennsylvania’s Pennsylvania Department of Labor and Indus- try. Marcellus Shale Fast Facts. April 2011 edi- northern tier northern tier com- tion. Harrisburg: Pennsylvania Department of munities took to speak with us. We Labor and Industry, 2011. marcellus.psu.edu/ further acknowledge the contribu- resources/PDFs/fastfacts_labor.pdf. tions of Jim Ladlee of Penn State Ward, M., and T. Kelsey. Marcellus Education Penn State College of Agricultural Sciences research and Extension in Clinton County and Fact Sheet: Local Business Impacts of Marcellus extension programs are funded in part by Pennsylvania Jeanette Carter from the Pennsylva- Shale Development—The Experience in Brad- counties, the Commonwealth of Pennsylvania, and the ford and Washington Counties, 2010. Univer- nia College of Technology in survey U.S. Department of Agriculture. sity Park: Penn State Extension, 2011. pubs.cas. design and implementation. We psu.edu/freepubs/pdfs/ee0005.pdf. Visit Penn State Extension on the web: extension.psu.edu gratefully acknowledge the efforts Williamson, J., and B. Kolb. Marcellus Natu- This publication is available from the Publications of the Pennsylvania Association of ral Gas Development’s Effects on Housing in Distribution Center, The Pennsylvania State University, Rural and Small Schools (PARSS) in Pennsylvania. Williamsport, Pa.: Center for the 112 Agricultural Administration Building, University Park, support of this work. Study of Community and the Economy (CSCE), Lycoming College, 2011. PA 16802. For information, telephone 814-865-6713. This publication is available in alternative media on Selected Bibliography request. Coleman, J. L., R. C. Milici, T. A. Cook, R. R. Prepared by Kai A. Schafft, associate Charpentier, M. Kirshbaum, T. R. Klett, R. M. Penn State is committed to affirmative action, equal Pollastro, and C.J. Shenk. “Assessment of Un- professor of education and director opportunity, and the diversity of its workforce. discovered Oil and Gas Resources of the Devo- of the Penn State Center on Rural nian Marcellus Shale of the Appalachian Basin Education and Communities, with Produced by Ag Communications and Marketing Province, 2011.” Fact Sheet 2011-3092. Wash- ington, D.C.: U.S. Geologic Survey, 2011. pubs. Leland L. Glenna, associate profes- © The Pennsylvania State University 2012 usgs.gov/fs/2011/3092/pdf/fs2011-3092.pdf. sor of rural sociology, Yetkin Borlu, CODE# EE0019 2M01/12mpc 4937 and Brandn Green.