Posts Tagged ‘Josh Longmore’

Chief to offer “substantial” cash, says solicitor, who wants to see land involved, right-of-way agreement.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

and Rebecca Briarbria@timesleader.com
Staff Writer

DALLAS TWP. – An oil and natural gas company has asked township officials if it can lay pipeline underneath township property in return for money.

Two officials from Chief Oil and Gas attended the supervisors meeting Tuesday evening in search of an answer as to whether they can lay pipeline under a parcel of township-owned land.

Supervisor Glenn Howell said the land is along a gravel road off the Old Tunkhannock Highway. The gravel road leads to a Little League field and some other things, he said.

Township solicitor Thomas Brennan confirmed the company is offering “a substantial amount” of money to the township to lay the pipeline, though Brennan would not disclose the amount.

Brennan said there is no question about the legality of allowing the company to lay the pipe underneath township land. However, he said he first wants to take a look at the land to know what is involved.

The officials from the company also are wondering what they would have to do if they wanted to lay pipe under or along the township’s right-of-way. They said more than 20 miles of pipeline is planned coming from the north and terminating east of Dallas High School.

Brennan asked if the officials could provide a copy of the agreement they have with the Pennsylvania Department of Transportation regarding their right-of-way usage. Brennan told the officials that he would have more information for them at the next supervisors meeting on July 6.

Earlier on Tuesday, township Zoning Officer Len Kozick said he’s heard from property owners in the township that they are being offered right-of-way agreements as well. And at least one agreement has already been signed.

According to Luzerne County property records, Leonard DeLeur, who owns Back to Basics – a fireplace and stove shop in Dallas – leased a 50-foot right-of-way along the edge of his 24-acre property in the township.

DeLeur said Chief offered him $20 per foot of pipeline laid on his property.

Kristi Gittins, vice president, Chief Oil & Gas, said a definite path has not been chosen for a pipeline, and one won’t be chosen until wells are drilled. She said no imminent drilling is planned for Luzerne County; the company’s next two wells will be drilled in Sullivan and Wyoming counties.

Josh Longmore, director of the Luzerne Conservation District, confirmed that drilling is slated to begin on his father’s land in Monroe Township, Wyoming County, in mid-July. His father, Robert Longmore, has a lease allowing Chief to drill on his 97-acre farm near Noxen Township.

Chief, which has 75 wells drilled in 10 counties, has wells in Lycoming, Bradford and Susquehanna counties that are producing gas, but there’s currently no way to get it to market. Gittins said gas is going to market from only about half of Chief’s wells in the Northeast because it takes a while to build a pipeline infrastructure where none previously existed.

Gittins said it costs about $1 million a mile to lay pipeline. And lease holders don’t see any royalty money until the gas gets to market.

Gittins said that Chief is selectively seeking leases in Luzerne County, but only in the area of currently leased land, she said. The company has leased a few properties in Fairmount Township. The Dallas, Texas-based company has 650,000 acres leased in Pennsylvania and West Virginia, she said.

In other business, supervisors awarded a bid for a paving and drainage project on Main and Campground roads to Popple Construction, the lowest bidder, at $147,530 for Main Road and $56,642.33 for Campground Road.

Supervisors Vice Chairman Frank Wagner previously said the project will consist of paving Main Road from the Kingston Township line to Route 309, as well as all of Campground Road.

Also, George Stolarick, who said he has lived on Ridge Street for the past 45 years, asked the supervisors to consider paving his road. Stolarick said that although there are only three houses on his road, eight families use the road to access their homes.

But, Supervisors Chairman Phil Walter said “it’s not in the cards right now.”

Rebecca Bria, a Times Leader staff writer, may be reached at 970-7436. Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

By Patrick Sweet (Staff Writer)
Published: June 15, 2010

NOXEN – Chief Oil and Gas may begin construction on a natural gas well just a few miles north of the border between Luzerne and Wyoming counties as soon as the second week of July.

Off Route 29 in Noxen, short stakes mark the future location of the drilling pad on Robert Longmore’s 97-acre farm. The state Department of Environmental Protection is currently reviewing the Texas-based gas company’s permit to place and operate a well it filed May 11.

The farm is near properties that are part of the Noxen Area Gas Group, a body of roughly 150 families with a combined 8,500 acres which is in the midst of negotiating a lease with Houston, Texas-based Carrizo Oil and Gas.

Just down the road from Longmore, Noxen group organizer Joel Field verified that the group is in the final stages of negotiation with Carrizo. Field and co-organizer Harry Traver declined further comment due to the sensitivity of the negotiations.

“Until things are settled down, they’d rather not give any statements,” Harry Traver’s wife, Dawn Traver, said Monday.

Longmore, 56, has owned the farm since 1998 and signed a lease with Chief roughly four and a half years ago. The landmen who approached Longmore about the deal, he said, made the three-page lease giving his family $25 per acre with the minimum 12.5 percent royalty sound like a good deal.

“We were kind of taken advantage of four and a half years ago,” Longmore said. “I know people getting $6,000 an acre.”

The lease had almost no provisions protecting Longmore’s farm. At the time, the landmen made it seem unlikely that drilling would ever commence during the terms of his lease, which ends May 15, 2011.

Chief Oil and Gas media contact Ben McCue attempted to reach operations employees for comment Monday afternoon but they were unavailable by press time.

Since Longmore signed, though, he said his experience with the company has been much more positive.

Earlier this year, the Longmores were given the opportunity to amend the lease.

“They proposed some amendments to the lease,” Longmore said, “so we countered with some amendments with some environmental stuff.”

Chief offered to reopen the terms of the lease in order to add protections for the company in anticipation of a Pennsylvania Supreme Court decision that could have invalidated thousands of gas leases where gas companies were deducting production costs from the state minimum royalty.

The opinion on the case was an interpretation of the Pennsylvania’s Minimum Royalty Act which establishes the 12.5 percent royalty requirement for all oil or natural gas recovered from a well but doesn’t stipulate when to calculate the royalty.

The court ultimately decided in favor of the gas companies roughly a week after the Longmores and Chief finalized the revised lease.

The Longmores added amendments that protected ground and surface water, along with the 0.25-mile stretch of Bowmans Creek that runs through the property.

Longmore’s son, Josh Longmore, manages the Luzerne County Conservation District and helped his father amend the lease.

“Unfortunately, they signed a very basic lease that didn’t have some of the protections that the newer leases have,” Josh Longmore said. “Our biggest goal, our biggest hope is that the property maintains its natural beauty, its agricultural purpose.”

The younger Longmore doesn’t have any stake in his parents’ farm, but felt that it was necessary to help. He and his father combed through leases that they found online and pulled out the clauses that fit their needs.

“There was like three or four different categories of amendments,” Longmore said.

Chief accepted 90 percent of their roughly 20 amendments, Longmore said.

The company did draw the line on an amendment that would have prohibited the company from disposing cuttings – the rock equivalent to sawdust – on the pad. The company argued it would be cost-prohibitive to haul it off-site, Longmore said.

“I really got the impression that they weren’t hiding anything from us,” Longmore said. “They were willing to answer every question we had.”

psweet@citizensvoice.com 570-821-2112

Copyright: The Citizens Voice