Hess Offering 20% Royalties and Deal Worth $66.5M to Conklin Landowner Group
Binghamton Press & Sun-Bulletin (Oct 16):
DEC hearings to allow public comment on natural gas regulations
In an article about the upcoming hearings being held by the New York DEC about draft drilling regulations, we have this tidbit of interest to landowners negotiating with drilling companies:
Others are eager for the state to complete its review so Marcellus permits can be issued early in 2010. Among them is Dan Fitzsimmons, an industry supporter and owner of about 180 acres in Conklin, who said extending the comment period would create unnecessary delays.
“They have to stick with their timetable, or they are going to have a lot of angry residents,” said Fitzsimmons, who leads a coalition of landowners in the towns of Binghamton and Conklin. Hess Corp. has offered the group a deal worth about $66.5 million, plus 20 percent royalties on production.
We also have this obligatory anti-drilling paragraph from the P&SB anti-drilling writer Tom Wilbur:
Marcellus development has the potential to produce several thousand wells in Broome County and change the physical and economic landscape. Unlike traditional wells, which are vertical, companies use larger equipment, more water and more chemicals to drill horizontally through bedrock to release gas in the Marcellus.