Hancock Gas Lease

A non-profit advocacy group for landowners in Broome County. The Joint Landowners Coalition of New York says its mission is

To foster, promote, advance, and protect the common interest of the people as it pertains to natural gas development through education and best environmental practices.

Their general meetings are “held on certain (usually Tuesday) evenings 7-9 pm at Cornell Cooperative Extension”, according to their web site. And they’ve schedule a “Natural Gas Development Summit” on Friday, February 26th, but is open only to invited guests.

The Press and Sun-Bulletin reports that

The JLCNY will be able to accept donations, lobby lawmakers and fight for landowners’ rights and interests. That might include helping landowners in a dispute over how gas is metered as it’s taken from their property, interpretation and compliance of leases, or sorting through how mineral leases affect mortgages.

A local meeting on Monday the 17th provided a forum for county officials and the public to sound off on gas drilling issues. NewsChannel34 reported on the event:

Many municipal leaders and area gas coalition members want the DEC to expedite the process of drawing up the guidelines to review drilling applications in one of the world’s largest natural gas plays — the Marcellus Shale, which we sit on top of.

They believe drilling can be done safely and be a big economic boost as long as the proper environmental checks are in place. One concern is that drilling could be delayed while additional studies on how drilling could affect the New York City Watershed are done.

Binghamton Town Supervisor Tim Whitesell represented many coalitions at the meeting.
And, says the DEC needs to look at our area separately from the city. Whitesell says, “That has a direct impact on all of upstate New York. It needs to be addressed on a separate issue, removed from the current GEIS, so that we can move everything forward.”

Other things Broome County is asking the DEC to carefully look at are noise concerns and where waste from drilling is kept. The county is against keeping it in earthen pits and favors steel tanks.

It seems that when unfortunate homeowners in Broome County face foreclosure due to tax debts, the government is taking the owners’ mineral rights. PressConnects presents a somewhat confusing story:

Sarah Vroman … owns about 22 acres in the Town of Sanford and lost her property for back taxes. After she worked out an agreement to pay them earlier this year, the county returned the property, minus the mineral rights. … Broome County legislators unanimously passed a resolution in August to return her property, but it made no mention that mineral rights were being withheld. That decision was made by Kevin Keough, the county’s director of real property, who said he was following procedure in the interest of taxpayers.

The county could end up reversing an administration decision it made to keep mineral rights on foreclosed property of more than five acres.

While it’s unfair to other taxpayers if someone gets away without paying taxes, if the issue is resolved, we can’t imagine any moral justification for keeping their property. Broome County’s policy fleshes out more of the picture that we don’t really own our land, we just rent it from the government.

The area is already richer to the tune of $100 Million, as reported by the Press & Sun-Bulletin.

So far, the deal has made about 500 residents in eastern Broome and western Delaware counties richer by roughly $110 million. Although drilling isn’t likely to start until after a public environmental review by state officials is completed next year, lump-sum checks have already begun arriving.

The article goes on to point out, however, that the management of these newfound funds can be difficult, and that residents need to remember about its income tax impact come next year.

Where stakeholders previously had problems with property taxes — now it’s income taxes.

“Your whole mindset is different,” said Decker, who is $2.77 million richer — minus 42 percent taxes.

…

There is no question the rush for natural gas in the region carries the potential for a monumental economic transformation. But how sustainable it is depends on how well people handle their newfound wealth, said Jim Thorne, an investment officer at M&T Bank.

“If a person goes out and buys a helicopter and a fast car and suddenly finds out taxes are due, it will be short-lived,” he said.

Officials from Broome County have been studying what’s going on in Fort Worth to plan how best to handle the situation at home. From the Press & Sun-Bulletin:

Broome County officials are working to develop a set of ground rules that will pre-empt problems associated with the natural gas rush locally.

The rules will address noise, road damage and legal rights associated with seismic testing, while nurturing the economic prospects of the Marcellus Shale, a multi-billion dollar natural gas reserve under the Southern Tier.

Important topics they expect to concentrate on include damage to local roads, and noise pollution.

A coalition of landowners in Vestal representing some 6,000 acres has been unable to work a deal they find satisfactory, despite shopping their land to some dozen gas companies. The Press & Sun-Bulletin reports:

Despite initial plans to strike a deal with an energy company by mid-August, members of a Vestal coalition are still actively marketing rights to natural gas under their land.

Eight companies have expressed interest in the 6,000 acres owned by coalition members, said Jeff Decker, a steering and negotiating committee member. …

The lease, drafted by steering committee members, was unveiled in June to the rest of the coalition and by July was being shopped to energy companies. Members originally reached out to a dozen companies but received unfavorable responses, Decker said.

The coalition’s web site is at www.coalitionconnection.com.

One of the fears about gas drilling is the stress that the many, heavy trucks will place on local roads. Some folks believe that the traffic may cause serious damage. The Town of Kirkwood may be the first to attempt protecting themselves from this. According to the Press & Sun-Bulletin:

Natural gas drilling rigs and other heavy equipment will need a town permit before the vehicles are allowed on Town of Kirkwood roads.

“We wanted to protect the environment and the roads,” Supervisor Gordi Kniffen said.

On Tuesday night, town board members unanimously passed a local law that would require operators of heavy machinery of more than 80,000 pounds to first obtain a permit from the town.

An education seminar is being planned at Broome Community College on Wednesday, September 17. The Press & Sun-Bulletin reports on the event:

Broome landowners holding the keys to lucrative natural gas fields could lose out if they don’t know their rights. …

Mike Danaher, assistant attorney general in the Binghamton office, will offer advice that generally carries this theme: Don’t get pressured into making a deal you are unhappy with. It’s your property. … And above all, landowners should draw a lease that suits them, rather than accepting a lease that favors the energy company, he said.

…

Danaher’s advice: “Negotiate, negotiate, negotiate … Don’t be blinded by the dollar signs.”

The seminar, sponsored by Assemblywoman Donna Lupardo, D-Endwell, also includes a presentation from Lindsay Wickham, an advocate who works for the New York State Farm Bureau. It is scheduled to begin at 7 p.m. in Baldwin Gymnasium.