Has New York Already Missed the Marcellus Shale Drilling Boom?
To answer the question posed in the headline with brutal honesty: Maybe.
Disturbing Observation #1: Yesterday the New York State Senate unanimously confirmed Joe Martens to lead the state’s Department of Environmental Conservation (DEC). The DEC, for those who don’t live in New York, is the agency charged with overseeing drilling in the Marcellus Shale—in fact oversight for all oil and gas drilling in the state. New York has been caught in a holding pattern on Marcellus Shale drilling for over two years, and New York’s landowners are growing weary of the delays in adopting new regulations for drilling in the Marcellus, meaning no permits for drilling in the Marcellus have been issued.
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If you live anywhere near the Binghamton, NY area, Marcellus Drilling News editor Jim Willis invites you to attend a local meeting on drilling in the Marcellus tonight, Friday, March 4. Be sure to hello! I’ll wear a big MDN badge so you can recognize me.
Many landowners in the Broome County, NY area who signed gas leases years ago are now receiving letters from the energy companies holding those leases that the landowner is “locked in” to the terms of the lease even though the original term has now expired. Why? The legal term is “force majeure,” which roughly means “due to circumstances beyond our control—the fact that New York State continues to prevent drilling—you have to stick with us for a while longer.” Because this involves contracts and interpretation of the terms of those contracts, it’s now in the hands of lawyers, or heading in that direction.
Tuesday, August 4, was a sad day for New Yorkers who, after more than two years of waiting, found out they will have to wait longer to begin drilling for natural gas in the Marcellus Shale. On Tuesday, the New York Senate voted 48-9 to prevent hydraulic fracturing (drilling) of gas wells in the Marcellus and Utica Shale formations in New York State. The moratorium, sponsored by State Senator Antoine Thompson (Democrat-Buffalo), prevents gas drilling for another nine months, until May 15, 2011.