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Investigative Post: Pegula back fracking and violating regulations

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Terry Pegula is a popular figure in Buffalo, but the activities of his hydrofracking company operating near Coudersport, PA are drawing criticism. As Investigative Post reports, the company has disrupted the lives of residents and run afoul of state regulators.

Terry Pegula made his fortune by drilling for natural gas in Pennsylvania. He stepped back after he sold the lion’s share of his company eight years ago for more than $4 billion. He used part of his fortune to buy the Buffalo Sabres and Bills and built HarborCenter adjacent to the downtown hockey arena.

Pegula, when he bought the Sabres in 2011, made it clear his purchase of the team was for fun, not profit.

“If I want to make money, I’ll drill another well," Pegula said in a 2011 press conference.

Pegula is back drilling. He started a new company that began drilling wells in 2015 around Coudersport Pennsylvania, located about 2 ½ hours southeast of Buffalo. The small borough is home to John Regis and was headquarters to his now bankrupt Adelphia Cable.

Natural gas is considered a cleaner fossil fuel than oil and coal. But it’s lodged deep underground in shale rock. Extracting it can create serious environmental problems, including air pollution and underground water contamination.

Click here to read the full story from Investigative Post.


WBFO broadcast a story on May 8 produced by Investigative Post about JKLM Energy, owned by Terry Pegula. The story included an error that was the result of Investigative Post's misinterpretation of documents obtained from the Pennsylvania Department of Environmental Protection. The audio version of the story posted on WBFO.org has since been corrected.

The original story incorrectly reported that Pennsylvania authorities cited JKLM Energy for violations during all 20 inspections it has conducted since 2015. While the company was cited for violations during 20 inspections and fined $508,317, the state actually conducted more than 20 inspections. Investigative Post has thus far been unable to determine the precise number of relevant inspections.