Cabot Agrees with Pa. on $4.1 Million Payment to Dimock Residents

HARRISBURG, Pa. - Cabot Oil & Gas Corp. has agreed to pay $4.1 million to residents of a small Pennsylvania town whose drinking water has been affected by natural gas drilling, but the deal with state officials also means the state is dropping plans for a $12 million water pipeline to the area.

The agreement between Cabot and the Pennsylvania Department of Environmental Protection was announced on Dec. 21.

The agreement does not address ongoing litigation between residents and Cabot in federal court (Fiorentino, et al. v. Cabot Oil and Gas Corp., et al., No. 3:09-cv-02284-JEJ, M.D. Pa.).

Under the …