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Done Deal: Chesapeake Drops Leases on 13K Acres in NY
Last week MDN told you that Chesapeake was set to release 12,000 acres of leases in the Southern Tier of New York, abandoning a legal fight to extend those leases (some of which they paid $2-3 per acre for) by using a legal concept called force majeure (see Chesapeake to Release 12K Acres of NY Leases Next Week). Major media outlets from AP to Reuters are reporting Chesapeake, as of Monday, has officially dropped those leases.
One slight update: it was actually 13,000 acres, not 12,000 acres as originally reported…
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A good news/bad news story. The good news is that Chesapeake Energy is giving up the legal fight with landowners in New York to extend their leases beyond the original lease term. MDN has long chronicled the fight on the part of landowners to stop Chesapeake from claiming force majeure to extend leases signed for (in some cases) just a few dollars per acre–leases signed long before horizontal drilling and fracking were contemplated (see 
A very important legal decision in New York potentially affects all New York landowners with and without drilling leases who have seen a sharp jump in their property assessments. A Broome County, NY Supreme Court judge has just ruled in favor of four Tioga County, NY landowners who sued to have their property assessments reduced, believing their assessments were unfairly raised because of the perceived increase in land value from the possibility (i.e. “speculation”) that the land may one day see Marcellus Shale drilling.
An important court case has ruled in favor of landowners against energy companies in New York State. Last Thursday, U.S. District Court Judge David Hurd ruled against Chesapeake Energy and Inflection Energy (and in favor of landowners) in a case where the companies had tried to extend leases beyond the original term by invoking “force majeure,” a legal phrase that means the terms of the lease could not be carried out due to extenuating circumstances.
Last night the Village of Owego (Tioga County, NY) became the second municipality in the Marcellus gas-rich Southern Tier area of New York state to vote for a temporary ban on fracking. The village board voted to ban fracking for one year to give the village a “time out to look at the documentation,” referring to the village’s master plan for not only drilling but flooding.
The anti-drillers are hot and bothered. A fringe anti-drilling group called Toxics Targeting (from where else, Ithaca, NY) held a small rally in Binghamton yesterday. They enlisted the support of the Binghamton Mayor Matt Ryan to their cause. And this week’s cause? Send a letter to Gov. Andrew Cuomo asking him to ban fracking, but especially to drop any plans to allow the drilling of “demonstration wells” in Broome, Tioga and Chemung counties.
It looks like it’s time to put away the champagne bottle and glasses that New Yorkers had brought out to toast a deal in Tioga County, NY that would use LPG (waterless) fracking and perhaps herald an early end to more than four years of a horizontal drilling moratorium.
eCORP International and the Tioga County (NY) Landowners Group, also known as Southern Tier Energy Partners (STEP), released details of their new deal to lease 135,000 acres in Tioga County, NY with an eye to using LPG waterless fracking (press release below). It is an interesting deal—not at all typical of the usual leases between drillers and landowners. Perhaps it’s the way of the future in a low commodity gas price environment?