Washington (Platts)--30May2008

Pennsylvania regulators for the first time ever ordered two gas drillers
to suspend part of their drilling operations and stop taking water from nearby
streams in northeastern Pennsylvania on Friday.

The Susquehanna River Basin Commission and the Pennsylvania Department of
Environmental Protection ordered Range Resources and Chief Oil & Gas to stop
taking water from two creeks in Lycoming County until they get approved water
management plans in place.

The two orders were the first ever issued by the Susquehanna River Basin
Commission against gas drillers, a SRBC spokeswoman said.

After taking 4 million gallons of water from Mud Run, Chief was ordered
to stop taking any more water used in drilling its Spots Well 1 in Mifflin
Township, the Susquehanna River Basin Commission said.

The SRBC also ordered Range to stop taking water from Big Run Sandy Creek
for its McWilliams 1 gas well in Cogan House Township. Range has already taken
3 million gallons from the creek.

According to the regulators, the two companies took the water into
impoundment areas adjacent to the wells to be used to operate the drilling
rigs and hydraulically fracture the well.

DEP ordered the companies to partially suspend their operations at the
two Lycoming county wells for being in violation of the state's Clean Streams
Law, based on the river commission's complaint.

Fort Worth, Texas-based Range's Senior Vice President Rodney Waller said
the company had quit taking water, as ordered, but is still drilling the well.
"We will get our water from another source while we file our paperwork," he
added.

Waller said that unlike the southwestern part of the state, northeastern
Pennsylvania has little experience with gas exploration and "everyone's
feeling their way" through the rules and regulations. "This is a difference of
opinion," Waller said. "It's not a problem on a long-term basis."

--Bill Holland, bill_holland@platts.com