HOUSTON, Dec. 15, 2010 /PRNewswire/ -- Cabot Oil & Gas
Corporation (NYSE: COG) today announced that it has finalized a
settlement agreement and new Consent Order with the Pennsylvania
Department of Environmental Protection (PaDEP). This new
agreement supersedes all previous orders and modifications.
"This agreement provides a reasonable and pragmatic way forward
for all parties," said Dan O.
Dinges, Chairman, President and Chief Executive Officer.
"The common ground we found to settle provides the right balance of
regulations, financial payments, timely execution and operational
safeguards that in the end will protect the resources of
Pennsylvania, promote economic
development of clean-burning natural gas and continue to create
good paying jobs in the natural gas industry.
"We have been committed to responsible operations within
Susquehanna County, and we have
redoubled our efforts with the Pennsylvania Department of
Environmental Resources to resolve past issues. Today's
announcement signifies a tremendous effort on all sides to move
forward with resolution and closure."
The settlement agreement sets out specific obligations regarding
claims related to water quality for 19 Pennsylvania households in
the Dimock/Carter Road area.
The most notable obligation in the settlement agreement is
the establishment of escrow accounts for the 19 households and to
provide for those that agree to participate, the financial
resources to rectify this situation. The total of the escrow
funding is approximately $4.1
million. For an established time period, Cabot will offer the whole house water
treatment systems for those that accept this application.
Additionally, upon compliance with the terms of this settlement
agreement, Cabot is allowed to
resume well completion operations in the Dimock/Carter Road area. These operations are
expected to commence in the first quarter of 2011 with new drilling
in the Dimock/Carter Road area
commencing in the second quarter.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent
natural gas producer with its entire resource base located in the
continental United States.
For additional information, visit the Company's Internet
homepage at www.cabotog.com.
The statements regarding future financial performance and
results and the other statements which are not historical facts
contained in this release are forward-looking statements that
involve risks and uncertainties, including, but not limited to,
market factors, the market price (including regional basis
differentials) of natural gas and oil, results of future drilling
and marketing activity, future production and costs, and other
factors detailed in the Company's Securities and Exchange
Commission filings.
SOURCE Cabot Oil & Gas Corporation