Posts Tagged ‘Countryside Conservancy’

by Laura Legere (staff writer)
Published: June 20, 2010

One natural gas well has been drilled into the Marcellus Shale in Lackawanna County, but much more development is on the county’s doorstep.

Already more than an eighth of the county’s land has been leased to companies planning to drill in the Marcellus Shale, according to deeds recorded with the county.

The total land leased – about 38,000 acres – amounts to an area roughly twice the size of Scranton.

Those leases carry a soft deadline for drilling: Many of them have a primary term of five or seven years, which means the companies have to make some progress to develop the gas within that time or renegotiate to extend the agreement and risk losing the lease to a competitor.

Because the vast majority of the leases in the county – 816 of them – were recorded in 2008, the incentive for developing the gas is approaching.

The land rush has touched a vast area of the county. Land in 20 of Lackawanna’s 40 municipalities has been leased, with the largest concentration of leases in northern municipalities, including Scott, Benton and Greenfield townships, as well as areas of the Abingtons.

Many of the county’s most prominent farmers, including the Manning, Eckel, Roba and Pallman families, have signed leases.

Although much of the land has been leased outside of the population centers along the Lackawanna Valley, leased parcels are not strictly on farms or in rural areas.

Baptist Bible College leased 114 acres on its South Abington Twp. campus.

The Abington Hill Cemetery Association leased 120 acres in South Abington along the Morgan Highway.

Leases have also been agreed to on land near residential areas. For example, 38 acres have been leased along the 900 and 1000 blocks of Fairview Road in South Abington.

Property owners with leases include private individuals, but also churches, golf courses, businesses and community associations. The Greenfield Township Sewer Authority leased 7.3 acres; the Fleetville Volunteer Fire Company leased 65 acres in Benton.

The Newton Lake Association and the Associates at Chapman Lake, two community associations that own their namesake lakes and the area around them, both signed leases.

Religious organizations have also signed leases, including the Harmony Heart church camp in Scott, a 59-acre parcel in Scott owned by Parker Hill Community Church, the Evangelical Free Bible Church in North Abington Twp., and Community Bible Church in Greenfield.

Three national energy companies, Oklahoma-based Chesapeake Appalachia, Texas-based Exco Resources, and Texas-based Southwestern Energy, hold nearly all of the leases.

The amount of Lackawanna County land leased for gas development surprised even people who have followed the subject closely for years.

Lee Jamison, a leader of the multi-municipal Abington Council of Governments, which has hosted educational events and speakers regarding Marcellus Shale drilling since 2008, did not know the extent of the leasing or its reach to areas outside of the rural northwest of the county.

He said despite educational events and active gas drilling in nearby communities, Lackawanna County municipalities have to do more to follow changing legislation and precedent-setting court cases to prepare for the coming development.

“I still think there’s quite a lack of preparedness on the part of the local municipal officials,” he said. “Often times you get conflicting reports and confusing stories.”

Mr. Jamison, who recently lost in the Republican primary race for state representative in the 114th House District, made Marcellus Shale a central part of his platform.

“Over 90 percent of the people I’ve spoken to are in favor of developing the Marcellus resource,” he said, “but they want it done correctly. With that caveat.”

Mary Felley, the open space coordinator for the Countryside Conservancy and a representative of Dalton in the Scranton-Abingtons Planning Association, said residents and municipal officials are “aware that it’s coming but not quite here.”

“I come to my local borough meetings, and people ask what can we do as a borough to regulate this, and we don’t know,” she said.

Because of unsettled case law regarding what role municipalities can take in regulated drilling, “we’re not getting a whole lot of clear guidance on what we can and cannot do here,” she said. “That’s kind of scary.”

There has also been a dearth of local training specifically targeting municipal officials on preparing for gas development. Even if there were such meetings, “my concern is people may not attend those until there’s a lot more activity in the county,” she said.

“This is the way we’ve evolved apparently: you respond to urgent threats you can see. You don’t respond to slow, impending threats that are over the hill somewhere.”

Contact the writer: llegere@timesshamrock.com

View article here.

Copyright: The Scranton Times

Chesapeake Energy explains protections it practices during drilling for natural gas.

By Rory Sweeneyrsweeney@timesleader.com
Staff Writer

PLAINS TWP. – As negative issues arise related to natural-gas drilling in the Marcellus Shale, at least one company is being careful to keep residents informed about the industry’s benefits and distance itself from concerns.

Speaking on Thursday at the “Executive Management Breakfast Series” put on by Penn State Wilkes-Barre, a spokesman for Chesapeake Energy detailed the environmental protections his company uses when drilling and outlined the positive economic effect the industry has had in Pennsylvania.

Chesapeake has paid out $700 million to landowners since 2008, along with $100 million to contractors in the state and $500,000 to community projects in 2009, according to Brian Grove, the director of corporate development for the company’s eastern division.

But the growth – a plan for 200 more wells in 2010 – isn’t at the expense of precautions, he said. Wells receive five layers of protection from ground water, he said, and “all of the chemicals (used in the hydraulic fracturing process) are stuff you will find in your home.”

The statement comes weeks after driller Cabot Oil and Gas was fined by the state Department of Environmental Protection for spilling fluids that contaminated a nearby wetland and a day after the department announced another fine against Cabot and ordered that alternative water supplies be provided to Susquehanna County residents whose water wells have been contaminated with methane.

“Certainly, when an operation isn’t meeting the regulations laid out by the state, it doesn’t reflect well on the industry,” Grove acknowledged, adding that Chesapeake is striving to remain free of such image-tarnishing incidents.

At least one of Chesapeake’s operating practices impressed Mary Felley, the executive director at Countryside Conservancy in La Plume, for its environmental protection beyond state regulations. Drillers must collect water contaminated by drilling activities, but they’re only required to store it in open-air pits. When Grove noted that Chesapeake stores all of it in closed containers, Felley complimented the company on its additional protections.

Grove also assured members of the Wyoming County Landowners Group whose land rights are confirmed will be receiving the full up-front payments the group negotiated, which was a particular concern for Marisa Litwinsky, a financial advisor with Merrill Lynch. Group members and others who have recently signed with Chesapeake have worried that the driller might back out on paying the balance of those deals.

“We’re committed to” the land group, Grove assured. “Anyone who’s got a good title, they’re going to have a lease.”

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

Copyright: Times Leader

Gas leasing! When I first wrote about this in May last year, lease prices were “up to several hundred dollars an acre.” When I did an update in December, prices “as high as $800” were said to be offered. Now $2,500 an acre is thought to be a reasonable price. Who knows how high it may go? Statewide, speculation about the most promising part of the Marcellus Shale is being directed solidly toward northeastern Pennsylvania.

The issues I mentioned in my first article are still valid concerns: clearing of trees and vegetation at the drilling site and for access roads; noise, lights, and vehicle and human traffic during the drilling process; and the risk of water supply interruption or contamination. Several water-related issues have come into higher prominence since then: the source and disposal of the water used in drilling and hydraulic fracturing (“fracking”) a gas well, and the removal and disposal of solid and liquid wastes from the well site.

Representatives of land trusts from around the state, including Countryside Conservancy, met in Harrisburg in mid-June to learn more about the Marcellus Shale gas resource, how it will be developed, and how gas extraction can coexist with conservation. The conference organizer, the Pennsylvania Land Trust Association ( www.conserveland.org), has indicated that they will soon post information from this meeting on their website.

As a land trust, the Countryside Conservancy is dedicated to land and water conservation. We are not opposed to exploration and extraction of natural gas, but we want to ensure that the process does not damage natural resources of conservation value. To that end, we are working hard to educate ourselves about the pros and cons of gas development, and we urge landowners to do the same.

At the moment, one of the more accessible information resources for landowners is the Penn State Cooperative Extension website (naturalgaslease.pbwiki.com). It contains information, publications, links to lawyers, CPAs, energy companies and more. The Extension does not recommend the services of anyone referred to on their website, but it is a place to start.

If you are a landowner considering leasing your gas rights, you will NOT want to sign any lease you are given by a gas or leasing company. There are many provisions that may need to be added to a lease to protect you, your land and your finances. A small sampling of things that you may want your lease to dictate, beyond leasing rates and royalties: removal of waste materials from the site; bearing the costs of Clean and Green or other tax penalties; lease extension clauses; permitting gas storage and transmission in addition to extraction; “shut-in” or “holding by production” clauses; defining the primary vs. secondary term of the lease; controlling the number of wells permitted on a property; timber payment for any trees removed; use of ponds as a water source; testing and protection of drinking water supply; the “Pugh Clause”; the landowner’s right to audit the operator’s production data; and landowner indemnification. This is not a comprehensive list, just an illustration that leases are complex legal documents.

Our #1 advice remains: talk to a lawyer who has experience in this field. You do not want to sign any important legal document that may change your land forever without having a lawyer on your side.

Also, get your well water tested. In fact, even if you are not leasing but your neighbors are, it is an excellent idea to test your water supply so that you will have pre-drilling baseline data. The testing needs to be done by a DEP-certified lab in order to be admissible for legal purposes. You can visit the Department of Environmental Protection website ( www.dep.state.pa.us) for a list of approved labs and other information (search under “Energy,” then “oil and gas wells”).

We at the Conservancy are not geologists or gas-rights lawyers, but we are dedicated to helping landowners make the best decisions for their land. We will do our best to put landowners in touch with people who can provide sound advice.

I can’t do better than quote the disclaimer on the Penn State Cooperative Extension web site: This information is for educational purposes only. The information posted here is NOT to be considered as legal advice. Consult a qualified attorney before signing anything!

Last call for the Countryside Conservancy’s 9th Annual Auction! The Auction takes place Saturday, July 12 on the green at Keystone College and tickets are still available. The party starts at 6 pm. Call 945-6995 now to reserve your place!

Mary Felley is the Executive Director of the Countryside Conservancy. Contact her at 945-6995 or cconserv@epix.net

Copyright: Times Leader