OnJuly14th,aGermandelegationvisitedSusquehannaCountyforatourwithCabotOilandGasfora“factfinding”tourregardinghydrofracturing. The group represented one of Germany’s largestwaterandpowercompanies,GelsenwasserAG,a$1Billioncompany.Gelsenwasser AG supplies water to nearly 3million people in thestate of North Rhine-Westphalia. The company draws water fromrivers, dams and impoundments and converts the water resourcesintopotablewaterthroughenvironmentally-friendlyprocesses.Activewater resource management is central to the company’s operatingphilosophytoensuresustainablewaterresourcesthatcanbepurifiedefficientlyandeffectivelyfordrinkingpurposes.Duringthedelegation’sstay,thegroupalsovisitedWashingtonD.C.andNewYorkCity.

The Pennsylvania Department of Community and EconomicDevelopmentcontacted theProgressAuthority inearlyJuly tohelpfacilitate a tour with a major operator in the natural gas industryfor the delegation at the timeof their stay.TheProgressAuthoritywasabletocoordinatewithJaniceLobdellof CabotOilandGastoaccommodate the German delegation. The delegation was sent totheUnitedStatestofindoutmoreinformationonhydrofracturingaspressurefordrillinginEuropeancountriesisontherise.

WhilethedelegationspenttheirtimeinSusquehannaCountytheywereabletotourafracsite,awellinproduction,andobservethenaturalgasindustryinthefield.ThegroupwasabletointeractwithtourguidesJaniceLobdellandLarryFulmerthroughGermantranslators.Whileonthetour,thegroupremainedveryengagedin learningabout thehydrofracturingprocess.While thedelegationspent their timeintheUnitedStatestofurthereducatethemselvesabouthydrofracturing,itwasinDimock,PAwherethegroupwasgiventheopportunitytogetupcloseandpersonalwiththeindustry.Thedelegationwasveryappreciativeof theeffortsof JaniceLobdellandCabotOilandGasfortheirtimeinDimock.

Gelsenwassar AG Tours Dimock with Cabot Oil and Gas

GermanDelegationToursFracSite

PROGRESSA Newsletter Dedicated to Economic Opportunities in Susquehanna County

The Progress Authority: Resources for Development, Progress for People Summer 2011

JaniceLobdellspeakingtoaGermanDelegate

CommissionerMaryAnnWarrenpresentstoGermanDelegatation

This past year has been as intense as any.The volume of business activity in SusquehannaCountyisincreasingdaily.Thisisunliketherestof ourUnitedStates,asreportscontinueto identifyaverysloweconomicrecovery.Obviously,thenaturalgasdevelopmentinourcommunitieshasshoredupourlocaleconomiesasexistingandnewbusinessesarebenefittingfromitsefforts.Manybusinesseshaveembraced the new opportunity andmodified theirservice or products to better serve the natural gasdevelopment in the county. However, the demandforsitesservicedbyadequateinfrastructureisever-growing.Ibelieveitisourjobtofocusonbuildinginfrastructuretosupporttaxbaseexpansion.

TheComprehensiveEconomicDevelopmentStrategy forSusquehannaCountyclearly identifiesprojects of greatest impact to its residents. Thehighestpriorityisbeingaccomplishedthisyear.TheEndless Mountains Health Systems new hospitalwillbreakgroundthisyear.CongratulationstoRayWilmarth,RexCatlinandallthoseinvolvedintheirtirelesseffortstoperseverethismuch-neededfacility.

The demand for infrastructure throughoutSusquehanna County is the next highest priority

to the hospital. With very tight federal and statebudgets, wemust also persevere and intensify ourefforts to attract new investment through creativeprojectdevelopment.

On August 8, 2011, Senator Pat Toomeyrequestedasmallvenueof localbusinesspeopletohearconcernsregardingthefederalgovernment’sroletohelporissuesthathamperbusinessdevelopment.SenatorToomeyprovidedamuchneededoverviewof what is happening in Washington, but spentthe bulk of his time listening to concerns of localbusinesses. Our voice is important and continuedunified promotion of our local business needs isimperative.

Finally, I must thank the SusquehannaCounty Commissioners, the Susquehanna CountyEconomicDevelopment Advisory Board and arealegislatorsfortheirsupportandexpertiseinfosteringeconomicdevelopmentintheCounty.IalsowanttothankCabotOil&GasCorporationforsponsoringtheAnnualEconomicDevelopmentBreakfast.

Pleaseconsidermeavailableatyourconveniencetoassisteconomicdevelopmentprojectsupport.

SenatorPatToomeyMeetswithBusinessOwner’sinSusquehannaCounty

Senator Pat Toomey John Kameen, Sen. Toomey, Tony Ventello, and Joe Andre

LetterfromtheExecutiveDirector

2

OnSaturday,June25th,thousandsgatheredatAlparonParkinTroyforthesecondannualNorthernTierMarcellusShaleBusinesstoBusinessExpo.Over300exhibitorsdisplayedproducts,equipment,andinformationattheevent.TheExpoisanopportunityforalltypesof businessestonetworkandexpandbusinessrelationshipswithinthenaturalgasindustry.Theeventwasopentothepublictoobservethedynamicsof thebusinessesthatsupportthenaturalgasindustryinourregion.Fridaynight’sfestivitiesincludedabarbecueforvendorstomingleandtwoguestspeakersattheTroyHighSchoolAuditorium.DanStoner,of CenterRockInc.,aPennsylvaniadrillingcompany,presentedtheChileanMinerRescueoperationconductedbyateamfromCenterRockthatsaved33trappedminersinOctoberof 2010.Thesecondspeaker,JohnFelmy,Chief Economistof theAmericanPetroleumInstitute,presented“TheMarcellusShaleNaturalGasResource-ARealGameChangerforPA.”Mr.Felmyhighlightedtheimportantrolenaturalgasplaysasamajorenergy

sourceforournationandhowvitaltheMarcellusShaleisforthenation’sdomesticsupply. Inadditiontothe300+exhibitorstosee,Saturday’seventsincludedbreak-outsessionsandaneducationalcomponentforvisitorstocheckout.PlatinumSponsor,TalismanEnergy,Inc.heldtwoseminarson,“DoingBusinesswithTalisman:LocalEconomicEngagementStrategy.”ThesesessionsinformedlocalbusinessesandcontractorshowtheycouldprovideservicestoTalisman.The“MobileEnergyEducationTrainingUnit”or“Meet-U,”servedasanaturalgasmuseumonwheelstoview“Drilling101”films,productsmadefromnaturalgas,andseeanactualpieceof theMarcellusShale.Overall,the2011NorthernTierMarcellusShaleBusinesstoBusinessExpowasahugesuccess.Thegreatresponseandoutcomeof theeventundoubtedlycamefromthecountlesshoursof planningandpreparationthecommitteemembersinvested.Followingthepositivefeedback,plansfora2012NorthernTierMarcellusShaleBusinesstoBusinessExpoareintheworks.

NorthernTierMarcellusShaleBusinesstoBusinessExpo

Randy Williams and Tony Ventello Center Rock Booth with Guest Speaker, Dan Stoner

2

Susquehanna County Awarded PA Conservation Works Funding

Susquehanna County was selected for $100,000 in funding from thePA Conservation Works program. This funding is from the AmericanRecovery & Reinvestment Act of 2009 and is administered by thePennsylvania DEP. Counties were eligible to apply for grant funding toprovide energy efficiency upgrades at public facilities.

As part of the grant project, the Commissioners are hoping to improveenergy efficiency at the Susquehanna County Courthouse by convertingthe heating system from steam to hot water. By increasing efficiency, theproject will conserve fossil fuels and improve comfort for employees andvisitors of the Courthouse. The Progress Authority assisted SusquehannaCounty with the preparation of the successful funding application.

Lackawanna College Opens NewMilford Campus

Lackawanna College established a presence inSusquehanna County by opening an office in New Milford in 2007.Since that time, classes have been temporarily held at Blue RidgeHigh School until a permanent campus could be established.

The college has recently opened its New Milford Center atthe Gibson interchange of Interstate 81. The new facility includesseveral classrooms, office area, and a computer lab. TheLackawanna College New Milford Center supports classes in avariety of educational subjects, but it is also home to LackawannaCollege’s Natural Gas Technology Program. This program wasstarted in 2009 to respond to the need for trained employees towork in fields related to Marcellus Shale natural gas development.

Natural gas companies have been very supportive inproviding donated equipment for the program, and the Natural GasTechnology Program is operating at its full student capacity. Thecollege’s new location will allow for growth of this program and allof the college’s offerings. Lackawanna College will be a greatlong-term asset for the educational enhancement of SusquehannaCounty.

The natural gas lab building at theLackawanna College New MilfordCenter’s new campus.

The Susquehanna CountyCourthouse in Montrose.

3

AneducationaleventwasheldonApril1and2, 2011 that provided resources to thecommunity,includinghighschoolstudents,on how to pursue career opportunitiesin the natural gas industry. The two-dayexpowasheldat theSusquehannaCountyCareer and Technology Center in ElkLake, Susquehanna County. The first daywas geared to local high school studentsinforming them of potential careers in theoilandgasindustryandhowbesttoprepare.The presenter for the program was JaniceLobdell,consultantandexpositionplanner.Following this presentation, a networkingfunction,sponsoredbyCabotOilandGas,was organized for the exhibitors, sponsorsand planning committee. The event was

made possible by the Bradford ProgressAuthorityandtheNorthernTierRegionalPlanningandDevelopmentCommission. TheeventsheldonApril2,werefreetothepublicandallwereencouragedtoattend.Includedintheday’seventswerespeakersfromeducationalinstitutions,25-plusexhibitorsandakeynoteluncheonspeaker.Theexhibithallopenedat9:00a.m.Theexpositionwasbothinformativeandeducationalforindividualsconsideringacareerwithinthenaturalgasindustryorinterestedinpursuinganentrepreneurialinitiative. Theeducational lectures included informationonhowtoget started in thepetroleumworkforce,establishingrelationshipsandrefittingskills for the industry.Speakers includedLarryMilliken,Directorof EnergyProgramsatLackawannaCollege;JoeBarone,PAGasDirectory,JimLadlee,MarcellusShaleEducationandTrainingCenterandDeloresBrownof CuddEnergyServices.ThekeynotespeakerwasKathryn Klaber, President and Executive Director of the Marcellus Shale Coalition, an organizationfoundedin2008whichcoordinatestheeffortsof electedofficials,regulatorsandcommunitiestoensuretheresponsibledevelopmentof naturalgasfromtheMarcellusshaleplay.Theworkforceexpofunctionedasaneducationalresourceasopposedtoahiringevent.Theexpoprovidedgeneralandpracticalinformationforthoseinterestedinpursuingoilandgas-relatedcareers.Participantswhoarelookingtoenterthemarketforthefirsttime,contemplatingacareerchangeorlookingtolaunchanentrepreneurialventurebenefittedgreatlyfromtheinformationtoassisttheminachievingtheirgoals.Exhibitorswereonhandtoanswerquestionspertainingtojobdescriptionsandrequirements.Someof theindustryrepresentatives: PlatinumSponsor- CabotOil&Gas GoldSponsors- Chief Oil&Gas,ChesapeakeEnergy,Williams,theDiazCompanies SilverSponsors– OneMarcellus.com,PIOGA,PeoplesNeighborhoodBankandCuddEnergy Services Theexpowasthefirstinwhathopestobeanannualeventinthespringinvariouslocationsthroughoutthefivecountiesof theNorthernTier.OrganizationsassistingwiththeplanningeffortincludetheCentralBradfordProgressAuthority,NTRPDC,SusquehannaCountyCareerandTechnologyCenter,CabotOil&Gas,PaGasDirectory,LackawannaCollege,PennStateCooperativeExtension,Chief Oil&GasandthePAIndependentOil&GasAssociation(PIOGA).

SusquehannaCountyNaturalGasWorkforceExpo

4

JaniceLobdellandTonyVentello

• MeetMonthlywiththeEconomicDevelopmentBoardinOrdertoPrioritizeProjectsof SignificancetoSusquehannaCounty

• MeetPeriodicallywiththeSusquehannaCountyCommissioners,StateandFederalLegislatorstoProvideEconomicDevelopmentUpdatesandProjectOpportunities

• ContinuetoAdministertheSusquehannaCountyEnterpriseZoneandGrowLocalFinancingResources

• AssistForestCityBoroughandGreaterForestCityIndustriesintheManagementof theForestCityRevolvingLoanFund

• ExploreAdditionalBondFinancingOpportunitiestoSupportEconomicDevelopmentProjects

• MaintainProgressAuthority’sDCEDCertificationandActivelyPromoteRelevantFinancingPrograms

• ActasaConduitforStateandFederalFundingSourcesthatcanBenefitPrivateBusinessProjects

• SolidifyRelationshipswithallMajorEmployersinSusquehannaCountytoCreateAwarenessof ProgressAuthorityCapabilitiesandFundingOpportunities

• SupportKeyInfrastructureProjectsandEnhancementsInvolvingPublicWater,Sewer,Electric,NaturalGasDistributionandTransmissionPipelines,TelecommunicationsandDataInfrastructure,PrimaryandSecondaryRoads,andRail

• MaintainanInventoryof PotentialBusinessDevelopmentSitesinSusquehannaCountyasProspectiveProjectDestinations

• ContinuetoMarketKeyBusinessDevelopmentSitesandSeekOccupancyforAvailableVacantIndustrial/CommercialFacilities

• WorkwiththePennsylvaniaBluestoneAssociationtoPromotetheStoneIndustryandAddressRelevantIssues

• ActivelyRecruitEnergyCompaniesandTheirSubcontractorstoLocateFieldOfficesinSusquehannaCounty

• EncourageEnergyCompaniestoDevelopBusinessOpportunitieswithExistingLocalFirmsthroughLocalEconomicEngagementStrategiesandOtherInitiatives

• ExploreValue-AddedOpportunitiestoAttract

ManufacturersthatcanCapitalizeonLocalMarcellusShaleNaturalGasResources

• ContinuetoParticipateinAdvisoryRolessuchastheSusquehannaCountyNaturalGasCommitteeandtheLackawannaCollegeNewMilfordCenterAdvisoryCommittee

• ImplementSpecificCriticalProjects,Including:• AssistEndlessMountainsHealthSystemswith

theConstructionof itsNewHospitalandtheManagementof PublicFundingAllocatedtotheProject

• HelpFacilitateChesapeakeBay-MandatedUpgradesatImpactedSewerTreatmentFacilitiessuchasMontrose’sPlant

• ContinuetoSupportEffortstoExtendPublicWatertotheSusquehannaCountyCorrectionalFacilityandRecyclingCenter

• WorkwithGreaterForestCityIndustriestoContinuetoSeekOccupancyfortheVision2000IndustrialPark

• HelpFacilitateReconstructionProjectsonRoute706inSusquehannaCounty

• PromoteRedevelopmentof theHallsteadFoundrySite

• AssistLackawannaCollegewithitsFacilityNeedsandPromoteGrowthof theNewMilfordCenter

• PromoteUpgradesattheGibsonInterchangeof Interstate81toAllowFutureDevelopmentAlongRoute848andOliverRoad

• ContinuetoWorkwiththeElPasoCorp.toallowtheimplementationof theTennesseeGasPipeline300LineExpansion

• CompleteanEconomicImpactStudyMeasuringActualandAnticipatedImpactsof MarcellusShaleDevelopmentinSusquehannaCountyandtheSurroundingRegion

• OrganizeaSecondMarcellusShaleBusiness-to-BusinessExpotoPromoteLocalBusinessContractingOpportunities

• OrganizeaMarcellusShaleWorkforceExpoinSusquehannaCountytoMaximizetheInvolvementof LocalLaborinNaturalGasDevelopment

• ReactQuicklyandResponsivelyasFutureBusinessDevelopmentProjectsareIdentifiedDuring2010

TheProgressAuthoritySusquehannaCounty2011WorkProgram

5

A keymilestone for the ProgressAuthoritythat was achieved this year was the ProgressAuthority’s certification by DCED to administerdirect loan programs, including Small BusinessFirst,FirstIndustriesFund,CommunityEconomicDevelopment, andPollutionPreventionAssistanceAccount financing. These resources have alwaysbeen available to the Progress Authority throughotherAreaLoanOrganizations,butthecertificationwillenabletheProgressAuthoritytomoreactivelyassistbusinesseswithfundingneeds. Thisyearwasaspositiveascouldreasonablybe expected, given the economic downturn facingthe rest of the Commonwealth and the entireUnited States. Continuing growth in the naturalgasindustryprovidedaninsulatingfactortothejoblossesanddisinvestmentthatoccurredinmostotherareas.FromMay2009toMay2010,PennsylvaniaDepartmentof Labor&Industryseasonally-adjusteddata showed that Susquehanna County’s totalemployment roseby600. Job losses still occurredlocally,particularlyinthemanufacturingsector,butthenaturalgasindustrycreatedasafetynetthatmostregionsdidnothavetheluxuryof experiencing. Along with the positive dynamics of employment growth and investment, however, thenaturalgasindustryhasbroughtsubstantialdemandsfor new and upgraded infrastructure. Projects inthe hospitality and housingmarkets have requiredpublicwaterandsewer,whilethebulkcommoditiesneededinthenaturalgasindustryhavenecessitatedtransportationupgradestopublicroadsandrailroadinfrastructure. The Progress Authority has beenable to leverage public funding for a variety of infrastructureprojectsover thepastyear, includingprojects funded through the federal AmericanRecovery&ReinvestmentAct. Becauseof thelargevolumeof trucktrafficthathassurfacedintheCounty,thereisstronginterestinincreasingrailutilizationasawaytoreduceon-roadtrucktrips.Tomakerailaviableoption,transloadfacilitiesmustbeavailabletoshippers.TheProgressAuthoritysponsoredafeasibilitystudytoexploretheneedfortransloadfacilitiesinSusquehannaCounty,as strong infrastructure exists with the CanadianPacific Railway and New York, Susquehanna &WesternRailroad. The study documented private

activity in and around the county, and it appearsthat theprivatesector ispreparedtohelpmeetrailtransloadingneeds. Naturalgasdevelopmenthasledtotheneedforadditionalpipelineinfrastructure,includingmajorinterstatetransmissionlines.TheProgressAuthorityhasbeenassisting thedevelopersof twosuch lineswithvariousissues.TheElPasoCorporationplansto add capacity to its TennesseeGas Pipeline thatruns throughBradford and SusquehannaCountiestobetteraccommodatenaturalgasproducedintheMarcellusShaleandotherformationsintheMidwest.TheotherprojectiscalledtheMARCIpipeline.ItwillbeconstructedbyInergyMidstreamLLCandwill provide a North-South linkage between theMillennium Pipeline, the Tennessee Gas Pipeline,andtheWilliamsTranscoPipeline.ThiswillallowforanEasternUnitedStateshubtowheelgasandprovide better availability and price flexibility forNortheasternconsumers. The ProgressAuthority has also contractedwith theMarcellus Shale Education and TrainingCenter, a joint initiative of Penn State and thePennsylvaniaCollege of Technology, to perform aregionaleconomicimpactstudymeasuringtheeffectsof Marcellus Shale development. The ProgressAuthority hopes to use the data acquired in ordertobetterunderstandthe impactsbeingexperiencedandtomoreeffectivelyplanforfuturedevelopmentneeds. Another energy-related development is thepending removal of Penelec’s electric rate caps.Withmostof thebusinesscommunitybeingservedby Penelec and facing substantial rate increasesonce thecapsare removed, theProgressAuthorityhastakenaleadershiproleindevelopingalternativeoptions to stabilize electric pricing. A feasibilitystudy was conducted to determine if locally-produced Marcellus Shale natural gas could beutilizedforalocalgenerationfacility,butthisprovedto be economically infeasible. With that optionexhausted, the Progress Authority has workedwith the Manufacturer & Business Associationof Pennsylvania to provide a nonprofit model forpurchasingelectricityfromthegridandtransferringitatcosttoareabusinessesthatchoosetoparticipate.Wearehopefulthatenergycostsavingswillresult.

YearEndReport

8

Inadditiontoenergyinitiatives,highlightedprojectsduringthepastprogramyearareasfollows:• Endless Mountains Health Systems,Montrose,SusquehannaCountyTheCBPAsecuredfederalfundingtoassistEndlessMountainsHealthSystems,acritical-accesshospitallocated inMontrose. The fundingwill be used toreplace an obsolete radiology/fluoroscopy suite toprovide better healthcare services in SusquehannaCounty.Thehospitalisoneof thelargestemployersintheCounty.• SusquehannaCountyCourthouseUpgrades,Montrose,SusquehannaCountyThe Progress Authority secured funding throughthe PA ConservationWorks program to completeenergy efficiency upgrades at the SusquehannaCountyCourthouse.Thefundingsupportsasteam/hotwaterconversionprojectandwindowupgrades.• SouthMontroseWaterExtension,Montrose/Dimock,SusquehannaCountyPennVESTapprovalhasbeensecuredforfundingforapublicwaterlineextensiontoDimockTownship.Thisprojectisprimarilyinresponsetoprivatewaterwell contaminationdue tonatural gasdrilling,buttheProgressAuthorityhasbeenworkingforseveralyears to extend water along the same corridor tosupport industrial and commercial developmentalongRoute29inSouthMontrose.• ForestCitySewerReplacement,ForestCity,SusquehannaCountyAsewer replacementproject isnecessary inForestCity Borough due to severely aging infrastructure.The project will benefit commercial, industrial,and residential needs. Funding has been securedthrough theH2OPAprogram,and theCBPAhasbeen pursuing Appalachian Regional Commissionfundingaswell.• Lackawanna College, New Milford,SusquehannaCountyDue to growth in the Marcellus Shale naturalgas exploration in Northeastern Pennsylvania,Lackawanna College embraced an opportunity toimplementanaturalgastechnologyassociatedegreeprogram. The Progress Authority worked closelywithLackawannaCollegeinthedevelopmentof thisprogram, andanewcampushas been constructedandrecentlyopenedinNewMilfordTownship.• DonaldDean&Sons,Montrose,Susquehanna

CountyDonaldDean&SonsisahardwoodsmanufacturerbasedinMontroseandoneof SusquehannaCounty’slargestindustrialemployers.TheProgressAuthoritysupported the company’s needs for equipmentupgrades with financing through the EnterpriseZoneRevolvingLoanFund.• Holiday Inn Expansion, New Milford,SusquehannaCountyBecause of the heightened need for hospitalityservices due to natural gas-related workers, theHolidayInnExpressinNewMilfordTownshiphasadded24rooms.TheProgressAuthoritysupportedthis project with financing through RecoveryZone Bonds as part of theAmerican Recovery&ReinvestmentAct.• Tractor Supply Company, Montrose,SusquehannaCountyThe Progress Authority assisted a commercialdeveloper seeking property for the construction of aTractorSupplyCompanyretailstoreinMontrose.Theprojecthasbeencompleted,andapproximately10jobswerecreated.In a very positive note, we are starting to seeevidence of our traditional industrial sectors suchas manufacturing and resource-based productsbeginning to bounce back. As the natural gasindustry continues to evolve and other businessdevelopment projects generate reinvestment, theProgressAuthority appears to have a busy year instore.

YearEndReportContinued

9

SusquehannaCounty’sEnterpriseZoneProgramhasdevelopedthroughtheEZcompetitivegrantprogram,a loanprogram to beused for businesses located in thedesignatedEnterpriseZone.Theoriginalprogramstartedwithagrantof $200,000tobeusedasa loan,primarilyequipmentpurchasesforRockRidgeStone.Theinitialloanrepaymentisthenusedforre-lendingtosmallbusinesses.Theprogramwillmostlikelynotbeexpanded,sincestatebudgetcutswillfullycutorreducenewRLFcapitalizationopportunities.

The Progress Authority has been initiallynotified as a key awardwinner for the state SmallBusinessCreditInitiative.TheAuthorityispotentiallyone of 17 organizations statewide to participatein the program. The program is augmented withfederalfundsfromtheUSDepartmentof Treasury.It isadministeredbythePennsylvaniaDepartmentof Community and Economic Development anddirectlygranted to theProgressAuthority forbothSusquehannaandBradfordCounties.

The program is targeted for small businessdevelopment and a specific focus for augmentingexistingandnewsmallbusinessdevelopmentinthenaturalgasindustry.Thefirstinstallmentof fundsisanticipatedinthelatefall.Finalapprovalhasnotyetbeengranted.Theprogramhasspecificregulationsregardingtotalprojectparticipationandleverageof privatecapital.ContactProgressAuthoritystaff formoreinformation.

ProgressAuthorityAwarded$1millioninRevolvingLoanFundsforStateSmallBusinessCreditInitiative

SusquehannaCountyEnterpriseZoneRevolvingLoanFund

4

Natural Gas Industry Update

Over 100 drilling permits were issued inSusquehanna County between January and Juneof 2010, as natural gas development remains veryactive. Companies that have successfully securedpermits so far this year are: Alta Resources, CabotOil & Gas, Carizzo Oil & Gas, Chesapeake Energy,Chief Oil & Gas, and Stone Energy.

The Progress Authority continues to act as aliaison between energy companies, the publicsector, and the local business community. PennState Cooperative Extension has been a terrificresource for educational programs to allow thegeneral public to understand the natural gas industry,and the Susquehanna County Office of EmergencyManagement has provided training venues for localemergency responders.

Recently, two of the energy companies hostedtours of their local operations. Chief Oil & Gasprovided members of the Susquehanna CountyEconomic Development Board, Susquehanna

County Planning Commission, and Susquehanna County Natural Gas Committee with a tour of its drillingrig, which was operating in Springville Township. Cabot Oil & Gas organized a tour of its operations in theDimock area for local workforce development professionals so that they could better understand the needsof energy companies for local labor and training programs.

Many new companies have established operations in Susquehanna County and the surroundingareas to support natural gas development needs. Several existing local companies have also embracedopportunities associated with the energy industry and have been able to expand their businesses. It isdifficult to measure the exact number of local jobs that are directly attributed to Marcellus Shale development,but Pennsylvania Department of Labor & Industry seasonally-adjusted data shows that SusquehannaCounty’s employment rose from 20,100 to 20,700 from May 2009 to May 2010.

The Progress Authority has initiated an economic impact study for the Northern Tier region with PennState and the Marcellus Shale Education & Training Center in order to better understand the amount of jobsand investment that has been generated by natural gas development. The study will also provide estimatesfor future impacts so that there is strong data available for planning decisions.

The Progress Authority was heavily involved with the Northern Tier Marcellus Shale Business toBusiness Expo and is already preparing for a second event in June 2011. Opportunities for future career fairevents are also being explored. The Progress Authority is committed to trying to maximize the local economicimpact of Marcellus Shale development in Susquehanna County.

See For Yourself Why We Are

The Best Bank Under The Sun

The Best Bank Under The Sun

1.800.820.4642 www.combk.com

Natural Gas Committee, Planning Commission, andEconomic Development Board members at the tourof Chief’s drilling rig.

10

ThePennsylvaniaDepartmentof CommunityandEconomicDevelopment has completely re-designed theireconomic development programs and service deliverysystem.Bothbudgetcutsandaccountabilityhaveplayedamajorroleinthisneweffort.

The Partnerships for Regional EconomicPerformance (PREP) is designed to encourage regionalcoordinationineconomicdevelopmentefforts.Itisintendedtoyieldsuperiorcustomerservicetothebusinesscommunityandacomprehensive,efficientstatewideeconomicdeliverystrategy.

The Progress Authority will form a consortiumwith numerous economic development service providersand formalize partnership agreements and develop aperformancebasedservicedeliverysystemthatinsureseachinquiryorleadfromabusinessorpotentialentrepreneurisreferredtoandacteduponexpeditiouslybytheappropriateserviceprovidersinourservicearea.Thisnowformalizesthecollaboration thatalreadyexistsbetween theProgressAuthority, Pennsylvania, NTRPDC and SBDC’s. Thecritical element is the focusondoingmorewith less andaddressingtheintenselevelof businessdevelopmentinourregion.Criticalcomponents forstate fundingare leveragefundsandourorganizationsabilitytoutilizelocalandfederalfunds into our delivery system. TheDCEDwill developimpactmeasurestoevaluateworkplansandunderstandtheperformanceeffectivenessof programpartners.Currently,therehavebeenpartnershipmeetingswhichhavedevelopedmemorandumof understandings.ThepartnersaretargetedforaSeptemberPREPapplicationsubmission.

PartnershipforRegionalEconomicPerformance

3

570-278-52381 - 8 0 0 - 9 8 2 - 4 0 4 5

P.O. Box 316New Milford, PA

18834570-465-2726

fax:570-465-2726

Progress Authority Seeks Fundingfor South Montrose Water Extension

A priority project for the Progress Authority is theextension of public water south of Montrose to serve theSusquehanna County Correctional Facility and SusquehannaCounty Recycling Center. The Progress Authority has beenworking to assist the Susquehanna County Commissionersin securing funding for this project.

The extension involves 8,445 linear feet of newwaterline in Bridgewater Township. The Correctional Facilityand Recycling Center are currently serviced by wells that areinadequate in volume. Public water would eliminate ongoingconcerns about water quantity and quality. In addition to thecounty’s facilities, existing businesses along Route 29 could benefit from the project. Public water wouldalso be within reach of substantial developable acreage near the former Bendix facility.

The Progress Authority has initiated several requests for public funding on behalf of SusquehannaCounty. It is hoped that funding commitments for this project can be secured soon so that construction canbe scheduled.

Forest City Borough Approved forARC Funding

Forest City Borough is under a federal court mandateto complete a sewer replacement project by 2012. Agingpublic infrastructure is creating environmental challenges dueto issues with infiltration and combined sewer overflows.56,000 linear feet of sewer line will be replaced. The project’stotal cost is approximately $10 million.

The Borough was awarded $2,808,000 in H2O PAgrant funds in 2009 to assist with this project, and good newswas recently received on additional funding that has becomeavailable. Forest City has been approved for $200,000 inAppalachian Regional Commission grant funding for theproject.

This funding was the result of project prioritization bythe Susquehanna County Economic Development Board andthe Progress Authority in the 2009 Comprehensive Economic Development Strategy of Northern TierRegional Planning & Development Commission.

USDA-supported loan funding will be used to finance remaining project costs. Grant funding willhelp to reduce the local cost burden of the sewer replacement. About 2,000 residents and all businesses inthe Forest City community will be impacted by the project.

The Susquehanna County CorrectionalFacility and Recycling Center Complex.

The Lackawanna River Basin SewerAuthority’s wastewater treatment facility inForest City.

4

Natural Gas Industry Update

Over 100 drilling permits were issued inSusquehanna County between January and Juneof 2010, as natural gas development remains veryactive. Companies that have successfully securedpermits so far this year are: Alta Resources, CabotOil & Gas, Carizzo Oil & Gas, Chesapeake Energy,Chief Oil & Gas, and Stone Energy.

The Progress Authority continues to act as aliaison between energy companies, the publicsector, and the local business community. PennState Cooperative Extension has been a terrificresource for educational programs to allow thegeneral public to understand the natural gas industry,and the Susquehanna County Office of EmergencyManagement has provided training venues for localemergency responders.

Recently, two of the energy companies hostedtours of their local operations. Chief Oil & Gasprovided members of the Susquehanna CountyEconomic Development Board, Susquehanna

County Planning Commission, and Susquehanna County Natural Gas Committee with a tour of its drillingrig, which was operating in Springville Township. Cabot Oil & Gas organized a tour of its operations in theDimock area for local workforce development professionals so that they could better understand the needsof energy companies for local labor and training programs.

Many new companies have established operations in Susquehanna County and the surroundingareas to support natural gas development needs. Several existing local companies have also embracedopportunities associated with the energy industry and have been able to expand their businesses. It isdifficult to measure the exact number of local jobs that are directly attributed to Marcellus Shale development,but Pennsylvania Department of Labor & Industry seasonally-adjusted data shows that SusquehannaCounty’s employment rose from 20,100 to 20,700 from May 2009 to May 2010.

The Progress Authority has initiated an economic impact study for the Northern Tier region with PennState and the Marcellus Shale Education & Training Center in order to better understand the amount of jobsand investment that has been generated by natural gas development. The study will also provide estimatesfor future impacts so that there is strong data available for planning decisions.

The Progress Authority was heavily involved with the Northern Tier Marcellus Shale Business toBusiness Expo and is already preparing for a second event in June 2011. Opportunities for future career fairevents are also being explored. The Progress Authority is committed to trying to maximize the local economicimpact of Marcellus Shale development in Susquehanna County.

See For Yourself Why We Are

The Best Bank Under The Sun

The Best Bank Under The Sun

1.800.820.4642 www.combk.com

Natural Gas Committee, Planning Commission, andEconomic Development Board members at the tourof Chief’s drilling rig.

3

570-278-52381 - 8 0 0 - 9 8 2 - 4 0 4 5

P.O. Box 316New Milford, PA

18834570-465-2726

fax:570-465-2726

Progress Authority Seeks Fundingfor South Montrose Water Extension

A priority project for the Progress Authority is theextension of public water south of Montrose to serve theSusquehanna County Correctional Facility and SusquehannaCounty Recycling Center. The Progress Authority has beenworking to assist the Susquehanna County Commissionersin securing funding for this project.

The extension involves 8,445 linear feet of newwaterline in Bridgewater Township. The Correctional Facilityand Recycling Center are currently serviced by wells that areinadequate in volume. Public water would eliminate ongoingconcerns about water quantity and quality. In addition to thecounty’s facilities, existing businesses along Route 29 could benefit from the project. Public water wouldalso be within reach of substantial developable acreage near the former Bendix facility.

The Progress Authority has initiated several requests for public funding on behalf of SusquehannaCounty. It is hoped that funding commitments for this project can be secured soon so that construction canbe scheduled.

Forest City Borough Approved forARC Funding

Forest City Borough is under a federal court mandateto complete a sewer replacement project by 2012. Agingpublic infrastructure is creating environmental challenges dueto issues with infiltration and combined sewer overflows.56,000 linear feet of sewer line will be replaced. The project’stotal cost is approximately $10 million.

The Borough was awarded $2,808,000 in H2O PAgrant funds in 2009 to assist with this project, and good newswas recently received on additional funding that has becomeavailable. Forest City has been approved for $200,000 inAppalachian Regional Commission grant funding for theproject.

This funding was the result of project prioritization bythe Susquehanna County Economic Development Board andthe Progress Authority in the 2009 Comprehensive Economic Development Strategy of Northern TierRegional Planning & Development Commission.

USDA-supported loan funding will be used to finance remaining project costs. Grant funding willhelp to reduce the local cost burden of the sewer replacement. About 2,000 residents and all businesses inthe Forest City community will be impacted by the project.

The Susquehanna County CorrectionalFacility and Recycling Center Complex.

The Lackawanna River Basin SewerAuthority’s wastewater treatment facility inForest City.

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TheEndlessMountainsHealthSystemswillbeconstructinganewreplacementfacilityonRoute706inBridgewaterTownshipjusteastof MontroseBorough. The groundbreaking is scheduled forOctober2nd,2011.Theproject is toconstructandequip a replacement facility for a Critical AccessHospital located in Susquehanna County. Thereplacementfacilitywillincludeavarietyof medical/surgicalservicesandanattachedprofessionalofficebuilding for health practitioners. The proposedfacility is approximately 100,000 square feet andwillexpandthecapabilitiesatEMHStoincreasethepatientcapacity.Includedintheprojectareexpandedemergencyservicesincludingdisasterpreparedness,expanded imaging services, surgical services andimprovedlocationandparking.Thisisneededforan

increasing elderly andmedically underserved area.AtitscurrentlocationinMontrose,thehospitalhasno expansion opportunities, an antiquated facility,inadequate parking and poor access. EMHS isworkingwithanarchitecttocompleteplansforthefacility,andsitedevelopmentworkhasbegun.Thefull construction phase is planned for 2011 if theprojectbudgetcanbefullyfunded.Federal,stateandlocalresourceshavebeenincludedintheproject,buta funding gap still exists on the $35,000,000 totalinvestment.TheprojectwillallowEMHStoexpandfrom21to25bedsandfrom175employeesto200.ThisprojectiscriticaltothehealthcareinfrastructureinSusquehannaCounty.

EndlessMountainHealthSystemstoBreakGroundinFall2011

Susquehanna County Economic Development Board MembersMembers:Chairman, John KameenVice Chairman, Joe AndreJim BrallaGeorge ConnerSusan DeanAdam DiazBill Owens

Progress Authority Staff:Executive Director, Tony VentelloEconomic Development Manager: Lauren HotalingAdministrative Assistant: Kim Kulick

Susquehanna County Commissioners:MaryAnn WarrenLeon AllenMichael Giangrieco

Belowisanarchitecturalrenderingof theEMHSfacilitydesignedbyStratton&BrookAssociates