Posts Tagged ‘Harveys Lake’

Company files documents to drill in Luzerne County, has leased 17,500 acres.

By Jennifer Learn-Andesjandes@timesleader.com
Luzerne County Reporter

Natural gas drilling may be about to boom in Luzerne County.

Denver-based WhitMar Exploration Co. recently submitted 200 lease documents to ensure that they have the correct property identification numbers, or PINS. Pin certification is required before the leases are officially recorded in the county recorder of deeds office.

The documents show the company has acquired drilling rights on 5,440 acres in Harveys Lake and the following townships: Ross, Lake, Lehman, Fairmount, Union, Huntington and Jackson.

WhitMar representative Brad Shepard said the company has leased 17,500 acres in Luzerne County to date, with more planned. Shepard said he was too busy with planning meetings Tuesday to explain how the drilling will be executed.

Beth Chocallo, a Lake Township property owner who agreed to lease her 3.29 acres to WhitMar, said she and her husband, Richard, were connected to WhitMar through a seminar.

The couple did not receive any upfront payment, she said. Instead, WhitMar will pay a lease rental after the first year or two and a percentage of the profits if natural gas is extracted, Chocallo said.

Chocallo she is optimistic that gas will be found because she doesn’t believe WhitMar would invest in the time and expense of preparing leases without a strong likelihood.

“Who knows where the gas pockets will be found? It’s not a definite,” she said.

WhitMar plans to grid out territories, paying a profit percentage to the owners of all leased property within that grid if gas is extracted, Chocallo said.

She does not believe a drilling rig will be installed on her property because the parcel is on the smaller side compared to others being leased, but she can’t rule out the possibility. Her main concern was that drilling would cut off or diminish her water supply, but she said WhitMar assured her that the company would replace the well and furnish water if that happens.

The lease documents filed in the county do not contain any details about what will be paid to the property owners.

Property owners are leasing WhitMar the exclusive right to explore for and develop oil and gas, the documents say.

That right includes use of the property for the drilling of oil and gas wells and installation of roads, pipes, pumps, compressors, separators, tanks, power stations and any other necessary equipment, the documents say.

Most, if not all, of the leases are for one year, with the option to extend for an additional 11 years or longer.

Of the 200 leases, Fairmount Township had the most property signed with WhitMar – 2,512 acres – followed by Ross Township with 1,205 acres.

Here’s a breakdown of the other leased acreages: Harveys Lake, 58; Jackson Township, 99; Union Township, 102; Huntington Township, 361; Lake Township, 463; and Lehman Township, 640.

Founded in 1979, WhitMar is a private energy operation actively engaged in drilling and developing natural gas and oil prospects in the United States, according to the company’s Web site.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

Copyright: Times Leader

Harveys Lake officials cite environmental concerns in opposing the water use.

EILEEN GODIN Times Leader Correspondent

HARVEYS LAKE – Council members on Tuesday night voiced concerns over a gas company’s interest in using lake water for the drilling of the Marcellus Shale.

Environmental scientists from Gannett Fleming Engineering are interested in drilling in the Marcellus Shale region, which runs through Northeastern Pennsylvania. The shale contains pockets of natural gas.

The gas company wants to use 20 million gallons of water from Harveys Lake for a process called hydrofracing. Hydrofracing is the use of high pressure water to create cracks in the rock surrounding the shale so that the gas can be recovered.

Council Chairman Lawrence Lucarino said the shale is located a mile or more below the earth’s surface.

Council members say they oppose the practice because they are trying to protect the state’s largest natural lake.

But even though the council can deny it the use of the water, “the federal government can override the council’s decision,” Councilwoman Diane Dwyer said.

The council has asked attorney Charles D. McCormick to draft a letter stating the borough’s position and reasons against using the lake water.

“Who knows how well they will filter out the contaminants before letting the water back into the lake,” Dwyer said.

She asked residents to “please be watchdogs and keep an eye on your backyard.”

The Marcellus Shale fields are located in the Appalachian Basin, running through Pennsylvania, New York, Ohio and West Virginia. According to the Web site oilshalegas.com, the Appalachian Basin could provide 50 trillion cubic feet of natural gas for the United States. The United States now produces 30 trillion cubic feet of natural gas.

In other news, emergency 911 street maps have been returned to the borough. Council members Carole Samson and Charles Musial will review the maps to make sure all the street names are correct.

This process should take about one to two weeks, Samson said. Once approved by the borough, the maps will be sent to the County 911 office for final approval.

Copyright: Times Leader

Gas drillers’ access to Harveys Lake water doesn’t seem likely.

HARVEYS LAKE – The borough is girding itself against potential plans to use lake water for natural-gas drilling, but the state Department of Environmental Protection thinks attempting to gain access to the water might be more trouble than it’s worth.

At its recent monthly meeting, borough council had solicitor Charles McCormick write to the Susquehanna River Basin Commission noting in the letter that the council “strongly opposes &hellip any consumptive use of water from the tributary system of Harveys Lake.”

Council became concerned after receiving a phone call and a notice. The notice was of Chesapeake Energy’s request to increase its one-day water-removal limit from the basin to 20 million gallons, and the phone call was from an engineering firm representing a gas company.

Brent Ramsey, an environmental scientist with Harrisburg-based international engineering consulting firm Gannett Fleming, had asked who owned the water rights at the lake and if the water could be procured for a well-drilling client, borough secretary Susan Sutton said.

He also called the borough’s Environmental Advisory Council asking similar questions, EAC secretary Denise Sult said.

Ramsey said the client directed that the operation be kept confidential, but acknowledged that his company’s involvement is in securing water-use permitting and that approval for a source of water hasn’t yet been secured. He refused to comment on whether the lake was still a target or if other sources were being sought.

Tapping the lake’s resources might prove difficult, however, said DEP spokesman Mark Carmon. “There’s been a long-standing question mark about who owns the bottom of the lake,” he said. “It’s probably a lot more complicated that it’s worth, in a legal sense, for anybody.”

He said the borough doesn’t own the water and individual lakefront landowners would have to be contacted. Deeds would have to be checked for exact descriptions of how far out into the water each property border protrudes. Any user-landowner agreement would still need to get SRBC approval “and face the wrath of the neighbors on each side of them,” he said.

“We think that’s the way it would play out,” he said.

He said that he wasn’t aware of any proposals or approvals of water usage in Luzerne County for gas drilling.

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

Copyright: Times Leader

Gas-drilling leases negotiated in Wyoming County, not coming as quickly here.

TUNKHANNOCK – While Wyoming County landowners are heavily involved in the regional natural-gas boom, almost all Luzerne County landowners are out of luck, at least for now.

“It’s not always fun. There’s going to be some angst, there’s going to be some anxiety,” said Jack Sordoni, who heads Wilkes-Barre-based Homeland Energy Ventures LLC.

Energy companies and geologists have estimated for decades that billions of dollars of natural gas is locked in a layer of rock called Marcellus Shale that runs about a mile underground from upstate New York down to Virginia, including the northern tier of Pennsylvania. Only recently have technological advances and higher energy prices made extracting the gas financially feasible.

Speaking during a meeting Wednesday evening at the Tunkhannock Area High School, the Harveys Lake native said oil companies aren’t yet interested in crossing the county border. He said his family’s land in Wyoming County has been leased, but companies have refused to consider contiguous land across the county line.

However, Chris Robinson, who is brokering leases in Wyoming County for nearly $3,000 per acre and 17 percent royalties, said he’s already leased the western edge of Fairmount Township in northwestern Luzerne County.

Sordoni added that Dallas, Lake and Franklin townships are areas “Chris and I are hearing (about) repeatedly” and are “still very much prospective and in play.”

Luzerne County landowners anxiously awaiting a lease offer probably won’t have to wait long for an answer. Robinson, who’s from Allegheny County, said he planned to continue negotiating leases in the area until the gas companies are no longer interested.

“I don’t think it’s going to take that long. It’s measured in months at most,” he said.

The wait might, however, offer local landowners examples to consider. Unlike other land groups, the Wyoming landowners rolled all their concerns into the lease instead of adding addendums.

“The difference is this is our lease. This is about us,” said Chip Lions, a member of the group who’s now doing lease work.

The meeting was sponsored by Stone House Wealth Management LLC, a Montrose-based financial planning firm that’s advising landowners and selling them investment portfolios. The company, which started the www.nepagas.com Web site, got involved a while ago “because we saw where this was going to go,” said John Burke, an investment adviser with the company.

The good news, Robinson said, is that he can get leases for any property within the companies’ interested regions, no matter the size.

“I can’t tell you how many I’ve signed for 1 acre or less,” he said.

Additionally, he said that while some gas companies might honestly stop leasing, other companies new to the area desperately want in on the drilling rights. And, he said, they can check for clear land titles within five days, contrary to the three months they tell most land groups.

For landowners concerned about environmental problems, he said state agencies are good at watching drillers, noting his own enforcement experiences.

He warned, however, to not go it alone.

“The mass of ground gets people the best deal, period,” he said. “People who break away, you may be penalized and you may be penalizing your neighbors.”

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

Copyright: Times Leader