Gas leasing companies invading Northeast PA

County extension urging and facilitating public education

By TOM KANE

DAMASCUS, PA — There’s a gas leasing frenzy going on in the Southern Tier of New York, and it’s spreading to northeast Pennsylvania.

Landmen—representatives of natural gas companies, brokers and speculators have been swarming over parts of western and central Pennsylvania since the early 1990s. Since that time, over 30 companies have been active in that region, asking landowners to give their company a lease on their property in order to explore for natural gas deposits.

In the New York counties of Steuben, Schuyler and Chemung, there has been record production of gas deposits in 2005 and 2006. During that time, 140 new wells have been dug.

One company—Trenton Black River—produced 42 million cubic feet a day in Steuben County with a yield worth $30 million. Recent wells in West Virginia produced 50 million cubic feet per day.

These facts were put before a group of about 80 Wayne County residents at a meeting on December 10 at the Damascus Township Community Center that was held by representatives of the Penn State Extension from counties west of the area that have been involved with gas leases in recent years.

“We want to help you in your response to these companies and speculators so you won’t get burned,” said Earl Robbins, Tioga County, PA, Penn State Extension, director of the Gas Leasing Process.

“Drilling is speculative,” Robbins said. “When a landman comes to your door, stop and proceed with caution. A gas lease is a legal document. Before you do anything, see your attorney.”

When Robbins asked how many of those present had been approached by a gas-leasing company, half of the attendees raised their hands.

Robbins said that the Millennium Pipeline project is very much involved, reaching all the way from Corning, NY to Ramapo, NJ, carrying over one half of a billion cubic feet a day.

Signing bonus rates that accrue to cooperating landowners have gone from zero dollars to over $500 an acre, he said. If substantial gas deposits are harvested, additional fees are negotiated later.

Robbins urged people to work with the companies in order to get the most from the resources on their properties. He urged them to consult a natural gas website www.naturalgaslease.pbwiki.com for more information.

Other presenters explained the ins and outs of gas leasing, and what happens to their land under a lease where trees are removed, roads cut, the site surveyed, cleared and leveled and pits dug.

Landowners were urged to talk to their neighbors and not go it alone. They warned that some landmen will pressure them into a premature agreement to which they must abide after signing. Landowners can enter into an agreement with their neighbors, even though they have an individual lease agreement.

Joe Umholtz, division chief of surface activities of the Pennsylvania Department of Environmental Protection’s Bureau of Oil and Gas Management, assured people that there are many safeguards that would protect the environment during drilling and extraction.

A workshop will be held on Monday, December 17 at 7:00 p.m. that will provide information about well siting, gas leases from an industry perspective, negotiating a gas lease and the economic impact of such leases. The workshop, which costs $15.00, will be held at the Damascus Township building on Conklin Hill Road.

For more information, call Dave Messersmith of the Wayne County Extension Office at 570/253-5970, ext. 4110.