Posts Tagged ‘EnCana Oil and Gas USA’

Bill would have rollback taxes assessed only on land impacted by wellhead permanently.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

Luzerne County Assessor’s Office Director Tony Alu still doesn’t know how Marcellus Shale development on land with “Clean and Green” designation will affect the land’s tax status.

“We don’t have a clear-cut plan yet. … I’m turning over every stone to get as much information as possible. We won’t be doing anything until I’m sure what our options are,” Alu said Monday.

Clean and Green is a program authorized by state law that allows land devoted to agricultural or forest use to be assessed at a value for that use rather than at fair market value.

The intent of the program, which is administered through county government, is to encourage property owners to retain their land in agricultural, open-space or forest-land use by providing real estate tax relief.

Property owners benefit through lower taxes as long as their land isn’t used for housing developments or other uses inconsistent with agricultural production, open-space or forest-land use.

If a property owner decided to use the land for a purpose inconsistent with the program, the landowner would have to pay “rollback taxes” – the difference between fair market value and use value of the land – for as many years as the property had been designated Clean and Green, up to a maximum of seven years.

Although it’s a state-authorized program, with maximum use values set annually for each county by the Department of Agriculture’s Bureau of Farmland Preservation, the bureau offers no guidance on how drilling for natural gas on a Clean and Green parcel would affect the tax status.

“The (state Farmland and Forest Land Assessment) Act is silent in that regard, so it’s left up to each individual county how to address it,” said bureau director Doug Wolfgang.

However, Wolfgang said, in March 2009, state Sen. Gene Yaw, R-Loyalsock Township, introduced a bill that would amend the act, allowing for natural gas drilling on Clean and Green land, with rollback taxes being assessed only on the portion of land that would be permanently impacted by a wellhead. State Sen. Lisa Baker, R-Lehman Township, was a co-sponsor of that bill.

Yaw represents Union and Sullivan counties and parts of Susquehanna, Bradford and Lycoming counties, which together boasted a total of about 200 natural gas wells by the end of last year.

The bill won Senate approval in February and is before the House for consideration.

Yaw has said the bill would provide counties across the state with “a consistent interpretation” to follow and would “help to prevent differing opinions on how many acres of roll-back taxes should be levied on landowners who have leased for natural gas development.”

He has said farmers and landowners need the bill to become law “so that there isn’t any confusion on how the Clean and Green Program operates.”

The bill also would exempt land with underground transmission or gathering lines from roll-back taxes and would allow for one lease for temporary pipe storage facilities for two years. Each property would have to be restored to its original use.

Regardless of whether the bill becomes law, Lake Township Supervisor Amy Salansky said neither she nor her husband, Paul, will have to pay rollback taxes on their Clean and Green land, on which EnCana Oil and Gas USA intends to drill a natural gas well in August. If county officials decide to assess rollback taxes, the lease with EnCana makes the energy company responsible for paying them.

Salansky noted neither she nor her husband own the mineral or gas rights to the land.

The couple bought the land after the owner died so they could farm it, but the owner had willed the mineral and gas rights to his nephew, who retained them in the sale.

The Salanskys are crop farmers, growing oats, corn and hay. They own and work more farmland nearby, Amy Salansky said.

Even if the entire 50-acre parcel is kicked out of the Clean and Green program, Salansky said she would reapply to have the parcel accepted back into the program, minus the 6 acres that would be used for the gas-drilling operations.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Before Marcellus Shale work, queries made over well water tests, roads and procedures.

EILEEN GODIN Times Leader Correspondent

LAKE TWP. — A gas company coming into the township in July caused residents to question procedures, well-water testing and road maintenance during Wednesday night’s supervisors meeting.

In July, Lake Township will begin a Marcellus Shale gas drilling operation by EnCana Oil and Gas USA of Denver, Colo. The site is owned by Supervisor Amy Salansky.

Salansky said the farm was previously owned by an older neighbor, who willed the gas and mineral rights to a nephew and gave Salansky and her husband the “first right to buy” the land.

“The agreement was already made when we purchased the farm,” Salansky said.

Residents within a mile radius of the site have recently received letters from EnCana stating a voluntary assessment of well water will be scheduled immediately. Salansky said the letter states a third-party environmental firm, Rettew, of Lancaster, will collect water samples.

Samples will then be sent to a state certified lab, at no cost to residents.

The letter stated that if residents wanted to use a lab of their choosing to test water, the sample will be split by Rettew and sent to a second lab. This would be at the residents’ cost.

With 75 percent of the township’s roads dirt, residents questioned supervisors on routes EnCana may use and who would be responsible for maintenance and repairing damages.

Chairman Lonnie Piatt said the township roads are not bonded yet, but the township does have an agreement with EnCana. He said it is a possibility that EnCana will hire a contractor for road maintenance. What routes will be used is still undecided.

Salansky said that officials have not sat down with EnCana to determine which routes will be used.

Barney Dobinick, the township’s emergency management coordinator, said it is possible that the gas driller’s trucks will run on a different schedule than school buses, so the two are not navigating roads at the same time.

Dobinick said EnCana has provided him with a list of chemicals to be used on site and a list of the firm’s safety guidelines. He also has the state Department of Environmental Protection’s regulations for gas drilling.

In other business, the annual spring cleanup will be 9 a.m. to 2 p.m. May 8, at the municipal building.

Residents must have proof of residency and pay $15 per pickup-truck load, $20 for large pickups and $6 per car load. An additional $6 fee will be applied for the following items: washers, dryers, carpets, overstuffed chairs, couches, dressers, TV sets, hot water heaters, boilers, furnaces, stoves and large appliances.

The following items will not be accepted: tires, hazardous wastes, chemicals, brush, tree stumps, cinder blocks, animal waste, shingles, sheet rock or other building materials, garbage, freezers, refrigerators containing Freon, and air conditioners.

For questions, call 629-2828.

Copyright: Times Leader

Some residents oppose, but solicitor says only state can halt drilling operations in municipalities.

RALPH NARDONE Times Leader Correspondent

LEHMAN TWP. – Township residents will be getting a new neighbor when EnCana Oil and Gas USA begins drilling for natural gas in late summer.

Township officials voted unanimously Tuesday night to approve an ordinance allowing the company to start Marcellus Shale gas drilling operations near Peaceful Valley Road.

Board of Supervisors Vice Chairman Ray Iwanowski made the motion to enact the ordinance and Chairman David Sutton and Supervisor Douglas Ide voted yes.

Township Zoning Board Solicitor Jack Haley addressed a well-mannered crowd of about 70 people before the vote, essentially telling them the township was in no position to halt the company’s plans.

Some residents who expressed opposition wanted the supervisors to “send a message” by not enacting the ordinance, Haley said. That would have amounted to “civil disobedience,” he said.

According to Haley, all authority to halt drilling operations in any municipality in Pennsylvania lies in the hands of state agencies, not local governments. The township’s rules are “superseded” by the state Oil and Gas Act, he said.

The state Supreme Court already reviewed two similar cases, he added, and decided the only authority Lehman Township has applies to what roads EnCana can use.

Haley also addressed concerns raised that two of the supervisors, Ide and Sutton, have personal ties to gas drilling. Ide leased some of his own land for gas drilling, and Sutton consults property owners concerning drilling, Haley said.

Both members could only second the motion or vote yes but could not participate in any questions about the vote or make the original motion. The only supervisor who could make the motion was Iwanowski.

The state Ethics Commission checked into the potential conflict of interest involving the two supervisors.

Iwanowski outlined six conditions to the motion: that EnCana put up $13,540 to maintain Firehouse Road through the total time it is used; EnCana put up $32,192 to maintain Peaceful Valley Road similarly; all traffic related to the drilling traverse on Firehouse Road toward state Route 118; no traffic will go on Old Route 115 in the township (near the school); EnCana provide adequate insurance coverage for the township, and that a legally binding agreement be signed by EnCana holding it to its commitment.

No representatives from EnCana attended the meeting.

About 25 peaceful protesters were there greeting meeting attendees at the door with anti-drilling literature. Leanne Mazurick, 30, of Dallas Township, stressed the industry is essentially “unregulated.” She said residents in other communities of Northeastern Pennsylvania are having trouble with water contamination where there is drilling.

“We want safeguards put in place,” she said.

Karen Belli, of Dallas Township, and member of Gas Drilling Awareness Coalition, emphasized a long list of ills that arise from local gas drilling. She pointed to homeowners in one local community have to use “water buffaloes” for their water supply because of the contamination.

Belli also questioned how Supervisors Ide and Sutton could be involved in the vote knowing their connections to the industry.

Not all in attendance were opposed. Barry Edwards, of Lehman Township, said the concerns about water are just a “harangue.” He added that in Susquehanna County the drilling companies have made the roads “better than the ever.”

Iwanowski said fixed-income elderly residents and farmers facing large debt are finding the gas drilling a financial “godsend.”

He said the ordinance allows EnCana to drill only vertically. If it wishes to expand horizontally underground that will require another vote from the township.

Copyright: Times Leader