New York

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    Sierra Club National Organization Supports Gas Drilling, Local Chapters Do Not – Tension Brewing

    NPR Morning Edition (Feb 23)
    Natural Gas As A Climate Fix Sparks Friction

    In a surprisingly balanced report by NPR, we learn of the infighting that is taking place in the Sierra Club, between the national organization and the state and local chapters. It seems the national organization believes natural gas and gas drilling are a good and acceptable alternative to coal. But local chapters are concerned about drilling’s effect on the the landscape and on water supplies.

    Click through on the link above to read the transcript or listen to the four minute segment, which includes the Sierra Club attending a ribbon cutting ceremony at a plant at Cornell University to celebrate their conversion from coal to natural gas.

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    Vestal, NY Landowner Coalition Still Shopping for a Deal, Comes Down on Their Price

    Binghamton Press & Sun-Bulletin (Feb 20)
    Vestal Coalition gives broker an extension to get deal on Marcellus Shale drilling sites

    A Vestal, NY landowner coalition with some 550 people has given their designated broker another few months to try and negotiate a lease on behalf of the group. According to the article:

    Members of the group, called the Vestal Coalition, have agreed to settle for a minimum of $5,750 an acre, plus 20 percent royalties, for a five-year lease of mineral rights, and a three-year extension.

    The opening offer was $7,500 an acre and 25 percent royalties. There were a few counter offers, but no deals for those terms.

    Drilling companies, for now, are in a holding pattern for New York deals until the New York State Department of Environmental Conservation issues drilling guidelines. Once that happens, and once permits start to be issued, the Vestal Coalition expects to get a deal done.

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    Chesapeake Withdraws Application to Store Millions of Gallons of Wastewater near Keuka Lake

    Syracuse Post-Standard (Feb 21)
    Plan to truck hydrofracking wastewater to Finger Lakes shelved, for now

    Readers of Marcellus Drilling News know that we advocate for landowners, and that we support safe drilling. But, drilling companies sometimes do themselves no favors and deservedly receive suspicion and condemnation. Case in point: Chesapeake Energy, one of the largest drillers in the U.S., is looking for a place to store millions of gallons of wastewater from their drilling operations in Pennsylvania. They thought they may have found a spot in the Steuben County (New York) town of Pulteney, in an old gas well no longer in use. They wanted to store up to 663 million gallons of wastewater—called “flowback” in the drilling business—in the old gas well, and they filed an application to do so.

    Flowback, which is water combined with sand and unspecified chemicals, is what’s leftover after it’s been pumped into the ground and brought back out again. The problem is, the chemicals used by drilling companies are a closely guarded trade secret—something that gives them an edge over competitors when drilling. So no one knows what, exactly, is in the flowback, nor in what proportions. This makes people uneasy when you want to store millions of gallons of it close to homes with water wells, and close to their vineyards. The old gas well sits next door to an active vineyard.

    It’s also bone-headed of Chesapeake to want to store it in this particular abandoned gas well, as the location is just one mile away from Keuka Lake, one of the Finger Lakes in Central New York. The proposed underground storage by Chesapeake “would not be lined or contained.” If, by some unfortunate event, the stored flowback were to leak into Keuka Lake, the resulting contamination could be catastrophic. It appears to be a risk just not worth taking. Much better for Chesapeake to look for a facility that will treat the flowback and return it to them to be reused for more drilling.

    Chesapeake has withdrawn its application for now. Although not a popular subject with drillers, if drilling companies were to disclose the chemicals used in the drilling process, it would go a long way to silencing the critics that there is no safe way to drill.

    The article from the Syracuse Post-Standard is fair and balanced (more or less) with a video interview of a local landowner who lives across from the abandoned gas well. It’s worth your time to read the article and watch the video interview.

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    DISH, Texas Mayor Calvin Tillman Visits Binghamton – Marcellus Drilling News was There

    This will necessarily be a long article. As a regular reader of Marcellus Drilling News, you have come to expect brief articles highlighting information useful for landowners and other interested parties in the Marcellus Drilling debate. Last night, your faithful scribe attended a local meeting in Binghamton, NY at Binghamton’s East Middle School, to hear DISH, Texas Mayor Calvin Tillman and his views on natural gas drilling. I went with an open mind to evaluate whether Mr. Tillman and the other speaker of the evening—lawyer Helen Slottje from Ithaca—would present information that would challenge my views that drilling can be done safely when it’s done right.

    I would say it’s a fair statement that if you went to the meeting as a supporter of drilling, or as an opponent, your view was not changed by the presentations. I attended on behalf of the average landowner, even though I do not have land for lease in the Marcellus myself. I tried to be your eyes and ears at the meeting. Disclaimer: I am in no way affiliated with, nor compensated by, anyone in the drilling debate on either side of the debate. I’m just an interested blogger and advocate for landowners and the rights of private property owners.

    This is an account of what happened last night…

    Read More “DISH, Texas Mayor Calvin Tillman Visits Binghamton – Marcellus Drilling News was There”

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    Patriot Water Treatment Plant in Owego Gets a Yellow Light

    Binghamton Press & Sun-Bulletin (Feb 17)
    Owego wastewater plan hits snag

    Patriot Water Treatment wants to build a wastewater treatment plant in Owego, NY. The plant would take in fracking water from drilling operations in the region, treat it, and return the water back to drillers to be used again. According to Andrew Blocksom, of Patriot, the resulting treated water is “cleaner than my tap water.” This new plant will bring 20 fulltime jobs and tax revenues to the community, and is needed for area drillers. But, it also will bring traffic, which is a concern:

    Approximately four trucks per hour for 24 hours a day would enter the facility with fracking water. The facility would treat the water, distilling it in a vacuum, and provide distilled water back to trucks to return it to natural gas drilling sites.

    Neighbors of the facility and those that live along proposed truck routes voiced concerns about spills and the toxicity of the incoming fracking water.

    And this:

    “I don’t think 24 hours, seven days a week is reasonable,” Village of Owego Mayor Ed Arrington said. “If there was another way, I wouldn’t oppose it.”

    The Tioga County Planning Board was due to make a recommendation on whether or not the Village of Owego Planning Board should accept the plan. Unfortunately, five of the Tioga County Planning Board members were AWOL from the meeting, so the final vote was 5 to 2 to recommend, but not the required 6 affirmative vote minimum that would be needed for an official recommendation. Marcellus Drilling News wants to know why five members were missing from such an important meeting? For or against the facility is not the issue—Planning Board members are supposed to be present and represent the people. This is dereliction of duty in our humble opinion.

    No word on who was absent, and no word on what the next step is for Patriot now that it appears the process is stalled.

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    Susquehanna River Basin Commission Monitors Waterways for Contamination

    WETM-18 TV (Feb 15)
    Gas Drilling Prompts More Water Quality Monitoring

    Due to concerns over drilling in the Marcellus and discharge of wastewater from drilling operations into area waterways that ultimately find their way to Susquehanna River, the Susquehanna River Basin Commission has placed monitoring devices in the Twin Tiers area of New York (Binghamton and Elmira). So far 10 monitoring devices have been installed, with another 20 to be installed by June.

    Marcellus Drilling News applauds the efforts of the SRBC to ensure local waterways remain contamination-free from drilling activities. Everyone wins when there is vigilance and monitoring.

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    Cornell University Owns 4% of Tompkins County Land, May Allow Drilling

    The Cornell Daily Sun (Feb 16)
    University Denies Conflict of Interest

    In an article about a potential conflict of interest for the Chairman of the Cornell Board of Trustees, Peter Meinig, we learn that Cornell is a major landowner in Tompkins County, NY, with some 11,000 acres—which is 4% of the land in the county. They also control the mineral rights to some 420,000 acres across the country, no doubt donated to the university by wealthy benefactors.

    The question is, will Cornell decide to lease it’s land? No one knows. The Board of Trustees and the President have decided to wait on making any decisions about leasing until the New York State Department of Environmental Conservation finalizes the Supplemental Generic Environmental Impact Statement—the set of rules that will be used for all Marcellus drilling operations in the state.

    The controversy is this: Mr. Meinig is the previous chairman of Williams Companies, a huge natural gas company that transports 12% of all natural gas in the U.S. Detractors say there is a built-in conflict of interest with Mr. Meinig voting or advising on the issue, even though he has no shares in Williams now. It will be interesting to see how this plays out.

    Seems to Marcellus Drilling News that having an expert on the board advising the board, as long as there truly is no conflict of interest, would be a good thing.

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    Sustainable Tompkins Takes Aim at Drilling in the Marcellus Shale

    Ithaca Journal (Nov 18):
    Sustainable Tompkins awards mini-grants

    People in the Ithaca, NY area should know that a local organization calling itself Sustainable Tompkins (www.sustainabletompkins.org) is helping to fund anti-drilling causes. They recently made a small grant of $370 to Shaleshock Citizens Action Alliance (www.shaleshock.org) to “produce newsletters reporting on industrial gas drilling in the Marcellus Shale and its effects on the Finger Lakes region.” That is, to fund the false and misleading propaganda that Shaleshock excretes. Unfortunately, New York State taxpayer money is one of the funding sources for Sustainable Tompkins. As a taxpayer in New York, I OBJECT. When will our politicians wise up and quit wasting money on these leftist organizations? Shame on Assemblywoman Lifton for securing funding for Sustainable Tompkins as a “member item” in the (soon to be bankrupt) New York State budget.

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    NY DEC Extends Comment Period on New Regulations by 30 Days

    Binghamton Press & Sun-Bulletin (Nov 4):
    Debate on drilling rules extended by DEC

    The New York Department of Environmental Conservation has caved to the anti-drillers who are screaming for more time to read the 800-page draft Supplemental Generic Environmental Impact Statement (dSGEIS)–the proposed new drilling regulations all drillers in New York would have to follow when drilling in the Marcellus Shale. So the DEC has added another 30 days to the “comment period” which is really nothing more than an extra 30 days for the anti-drillers to try and prevent drilling in New York. No worries, drilling is coming and they can’t stop it.

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    Millionaire Landowners – In New York State?!

    Crain’s New York Business (Nov 1):
    The new gold rush

    With heavy dollops of anti-drilling sentiment (so the reporter keeps his job), this article is worth a read because of the fountain of good information about economics for landowners in the Marcellus Shale. The theme that runs through it is the story of a truck driver with 120 acres outside of Binghamton, NY who stands to become a millionaire many times over if and when drilling starts to take place in New York. The truck driver, Jeff Decker, is not allowed to divulge the terms of his upcoming lease, but it’s thought to be in the neighborhood of $700,000–and that’s just the signing bonus for his 120 acres. If they drill on his property and he gets, oh say a 20% royalty, he’s easily into millions of dollars.

    This nugget of useful detail from the article:

    An 80-acre swath of the Marcellus can eventually produce $42 million worth of natural gas, says Dean Lowry, president of Fort Worth, Texas-based Llama Horizontal Drilling Technologies. With drilling leases now giving landowners 20% royalties on productive wells, Mr. Decker could become a millionaire several times over.

    Drillers, whose cost to develop an 80-acre parcel is about $4 million, would also prosper. “Fifty percent of the gas could be extracted in the first three or four years,” Mr. Lowry says. “You get your investment back in the first year to 18 months. Then you get seven to nine times your money over the next 20 to 25 years.”

    I would also caution about what’s coming in the way of taxes when drilling finally does start in New York. This rather sobering paragraph from the article:

    In New York the Paterson administration, heeding the cries of landowners and local officials in economically depressed upstate communities, has issued draft regulations to allow it here. Landowners are keen to lease their property. Cash-strapped municipalities are eager to tax the extracted gas. Business groups say drilling would bring jobs and jolt local economies. The state would collect more income tax and, if it imposes one, a tax on gas production.

    You can expect local municipalities to not be able to resist putting their hands into landowners’ pockets to relieve them of some of their new found money. And New York State will undoubtedly not be able to resist either. Politicians are like drug addicts who need an economic “fix”. Just a warning so you’re not surprised when it happens.

    We also have the obligatory couple of paragraphs on “don’t you dare drill in the Catskill watershed” for fears of contaminating New York City’s water supply. The stated reason is this:

    New York is one of five big cities not required by the federal government to filter its water, and revocation of that waiver would necessitate a filtration plant costing $10 billion to $20 billion.

    It seems Crain’s New York Business is a bit behind the eight ball. Chesapeake Energy, the only leaseholder with land in the Catskill watershed, has already said they won’t drill there. Makes no difference, this particular political issue is just too juicy to not use–even if it’s no longer an issue.

    We learn from this article that Hess is New York’s largest energy company, and that Chesapeake Energy and Fortuna Energy are the most active leasing companies (so far) in the Marcellus Shale in New York.

    Overall, some good info in this article, but as always with mainstream media, be sure to read between the lines.

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    Vestal Landowner Group Shops for a Drilling Contract

    Binghamton Press & Sun-Bulletin (Oct 28):
    Vestal landowners offer lease plan for gas drillers

    The Vestal Coaltion, a group of landowners in Broome County, NY, has created a draft lease agreement on behalf of its members and is now shopping it, looking for an energy company to sign the lease. According to the Press & Sun-Bulletin:

    A coalition of Vestal landowners has a deal for you: Roughly $46 million and 20 percent royalties for mineral rights to about 8,000 acres.

    A group of about 400 property owners signed a lease that would make it attractive for energy companies to do business with them, said Marty Leab, a coalition organizer. They have commissioned Dean Lowry and Llama Horizontal Drilling to find a taker in 90 days or less.

    Specifically, the lease would pay landowners a minimum of $5,750 an acre, plus 20 percent royalties, for a five-year lease of mineral rights, and a three-year extension, according to a copy of the lease obtained by the Press & Sun-Bulletin.

    According to the website for the Vestal Coalition, they’re still accepting new landowner members. Visit their site: www.coalitionconnection.com.

    Also, this tidbit of older news from the article, but still valuable to know:

    The market heated up as natural gas prices rose in spring 2007, and XTO bought mineral rights to land in the Deposit area for about $2,500 an acre. Since then, offers in the region have shot up to between $3,000 and $6,000 an acre and 20 percent royalties

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    Drilling Waste Water Treatment Plant Proposed for Owego

    Binghamton Press & Sun-Bulletin (Oct 28):
    Drilling processor targets Owego site

    From the Oct. 28th Press & Sun-Bulletin:

    A plant to treat waste from the Marcellus Shale is on the drawing board in the Town of Owego.

    Patriot Water Treatment pitched its plans to convert a former car dealership at 936 Taylor Road to a waste water treatment plant for Marcellus drillers at a planning board meeting Tuesday night. The proposal calls for installing holding and processing tanks in the existing building to treat round-the-clock shipments of drilling waste water, according to information from the planning board.

    And this:

    The plan, recommended for approval by the Tioga County Planning Board, estimates traffic from industrial waste haulers would average 96 trucks per day (four per hour), seven days a week. Haulers would use Day Hollow Road, Bodle Hill Road and Taylor Road to access the facility.

    Of course, anything to do with drilling is subtly (and sometimes not so subtly) opposed by the Press & Sun-Bulletin. The thought they want to leave you with is trucks lumbering down your street in the middle of the night hauling nasty chemicals ready to spill out on your front lawn.

    I know I would not want trucks round the clock going by my house–but–actually, they do! I live not a quarter mile from State Route 17 (the future I-86) and the traffic noise, especially from large trucks downshifting on a nearby hill, is 24×7. Traffic, especially if it’s mostly in the daytime, is a fact of commerce.

    Let’s let the good citizens of the Owego Town Board perform their due dilligence and render a decision that is fair to all the citizens of Tioga County. If the proposed location is too close to homes and traffic will be an ongoing disturbance, they should deny the permit. If not, grant it and reap the benfits of more jobs and more tax revenue from a new business in the area.

    I have confidence in our locally elected representatives to make the correct decision in this case.

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    First NY DEC Meeting on Proposed Drilling Regulations Held in Sullivan County

    Middletown Times Herald-Record (Oct 29):
    300 folks pack Sullivan fracking forum

    The first scheduled meeting for public comments on the draft Supplemental Generic Environmental Impact Statement (SGEIS) held by the New York DEC happened yesterday in Sullivan County, NY. According to the Middletown Times Herald-Record:

    Most of the speakers in the standing-room-only, mostly anti-drilling crowd of more than 300 at Sullivan County Community College said the proposed Department of Environmental Conservation rules for drilling of the Marcellus shale fall short.

    The anti-drilling standard tactic is to delay drilling in hopes of building support to get it banned altogether. This was evidenced at the meeting. With regard to extending the DEC’s public comment period (which would further delay the start of drilling):

    Paul Rush, deputy commissioner of the New York City Department of Environmental Protection, called for 45 extra days.

    Joe DiPane of Callicoon called for six months, since the shale “has been formed underground for eons,” he said.

    There are two more scheduled meetings, Nov. 10 in New York City and Nov. 12 in the Binghamton area. A third meeting is yet to be arranged in the Elmira area. (See Public Hearings on the New York Draft SGEIS for Marcellus Shale Drilling for details.) Landowners need to attend and make their voices heard!

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    Chesapeake Energy Decides to Not Drill in Catskill Region of New York

    Albany Times Union (Oct 29):
    Gas company backs off drilling

    There is an important lesson to be learned today: Anti-drilling groups will not be satisfied until there is zero drilling anywhere. This truth is now on full display for all to see. An article in today’s Albany Times Union trumpets the announcement that Chesapeake Energy, sole leaseholder of rights to drill in the Catskill Mountain region of upstate New York (with 5,000 acres), has decided not to drill in that area.

    The Catskill region feeds and contains water resevoirs for New York City. The City is dependent on the water from that region of upstate. This fact is being used as a weapon by anti-drillers to stoke fears that the water supply for nine million people would be poluted if there’s any drilling in or near that area. So Chesapeake decided to remove that objection from the table by announcing they would voluntarily commit to not drilling in the watershed area.

    So what do the anti-drillers do? Rejoice…dancing in the streets…express gratitude to Chesapeake? Not on your life. Here’s their response:

    “One company’s voluntary moratorium on drilling at this point is no substitute for a thorough analysis by the Department of Environmental Conservation and Department of Health to determine the catastrophic potential of drilling into the watershed and in adjacent communities,” said Michael Saucier, a spokesman for the city Department of Environmental Protection.

    And this:

    “We’re calling on Chesapeake Energy to back up this promise by transferring its leases to the city of New York for the price of $1. After the transfer, the state should ban drilling in the New York City watershed,” said Deborah Goldberg, a managing attorney with EarthJustice, an environmental lobbying group.

    And finally, this precious piece of logic:

    “When the gas drilling industry says it won’t drill within the source of drinking water for nine million people, it sends a strong message to state regulators that this activity is inappropriate,” said James L. Simpson, Staff Attorney with Riverkeeper.

    So, don’t do what the anti-drillers want and your Satan himself. Do what they want, and you’re still Satan himself. Let this be a lesson to all drilling companies and landowners: No compromise with the anti-drillers. Their objective is to shut you down permanently. Stick up for your rights. We still (for now) live in a free country with private property rights. Thank God for the Constitution! Exercise your rights before they’re gone.

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    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.

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    Make Your Voice Heard on the Proposed NY Drilling Regulations

    In addition to attending the hearings previously mentioned (see Public Hearings on the New York Draft SGEIS for Marcellus Shale Drilling), if you’re a landowner in New York, you can also make your voice heard about the new regulations in the following ways:

    (1) Leave a comment on the specially created form on the DEC website: www.dec.ny.gov/cfmx/extapps/SGEISComments/

    (2) Send an e-mail to: dmnsgeis@gw.dec.state.ny.us

    (3) Write a letter to:
    Attn: dSGEIS Comments
    Bureau of Oil & Gas Regulation
    NYSDEC Division of Mineral Resources
    625 Broadway, Third Floor
    Albany, NY 12233-6500