New York landowners meet over gas drilling

By TOM KANE

LIBERTY, NY - Landowners in New York want to know about natural gas drilling, just as much as their Pennsylvania neighbors do. They gathered in numbers at an informational meeting held at the Cornell Cooperative Extension office on February 14.

As in Pennsylvania, New York landowners are being approached by people called landsmen, who are independent agents of several of the largest gas-producing companies in the country. At issue at the meeting was the fact that landowners need to understand what the landsmen are offering them when they ask them to sign a lease that allows the gas companies to drill for gas on their land.

“I’m seriously looking at it,” said Len Bauer of the Town of Fremont. “Joe Grabe is organizing a group of us farmers and landowners like they are doing in Pennsylvania. If we’re going to sign, we want to get the best deal we can.”

Grabe was not present at the meeting.

In Wayne County, a group of landowners calling themselves the Northern Wayne County Property Owners Alliance have united in negotiating with the gas companies and are representing an estimated 10,000 acres of land.

Addressing the Liberty meeting were Lindsay Wickham of the Farm Bureau of New York, Jim Ochterski of the Cornell Cooperative Extension of Ontario County, and Jack Dahl and Tom Noll of the New York State Department of Environmental Conservation’s (DEC) Bureau of Gas and Oil Regulation.

Wickham and Ochterski, both of whom have had extensive experience in gas drilling operations in other parts of Pennsylvania and New York, explained what was involved in drilling for gas and in the negotiations that people will face if they sign leases.

“People who own land should be eternally vigilant before they sign anything,” Wickham said. “The best advice is to consult a lawyer before you sign and it’s best if the lawyer knows something about gas-drilling leases.”

Ochterski explained the payment system that comes with a contract and the royalty arrangement if gas is discovered. “A landowner can get about $15 an acre as a signing bonus each year for a five-year term,” he said. “You may be able to get more by negotiating. Royalties are generally 12.5 percent of the total yield of a well. Some have gotten as much as 18.75 percent.”

Dahl discussed the regulatory process and what role the bureau plays in avoiding dangers to the environment that could be caused by drilling. He explained that gas drillers must have a storm water disposal plan, a soil erosion plan, as well as follow a series of procedures intended to protect the health and welfare of residents and the preservation of the land. The bureau oversees permitting, compliance and enforcement of all regulated wells in New York. It is also responsible for leasing of land owned by New York State (other than state parks) for oil and gas exploration and development.

“Will you have enough inspectors to monitor these well sites, especially if a lot of gas is discovered?” asked Sue Currier, executive director of the Delaware Highlands Conservancy. Currier further asked how many inspectors the DEC had now in the eastern section of the state that reaches from New York City to Canada.

DEC has divided the state into three sections for regulatory purposes.

“We might have to shift people off some projects and transfer them to gas drilling inspections,” Dahl said. “Or we may have to hire more inspectors.”

When pressed to answer the second part of the question, Dahl said they had nine inspectors for the eastern sector. “Is that going to be enough?” Currier asked.

“We’ll have to see,” he said.