Land owners start pooling for gas rights
NORWICH – Many natural gas wells are already in production in the northern Chenango County towns of Smyrna and Plymouth and the first well in Preston was drilled last week near county Rt. 18.
Right-of-ways have been purchased, for the large part, for an extensive pipeline that, in some areas, is actively in use carrying the gas to sales points.
Natural gas has been found in layers of Herkimer and Oneida sandstones here, Nornew, Inc. Vice President of Geology Stuart Lowenstein said. Lowenstein – who just happens to be a native of Norwich – said he has been studying and testing the geology in Smyrna for the past 15 years, from the granite basement, as it’s called, up through the shallowest layer of Marcellus shale.
The latter layer has been over-hyped recently, Lowenstein said, and is not a proven source of quantity or quality at this time. New horizontal drilling technologies have recently been discovered that make reaching the Marcellus shale easier for exploration companies. The Marcellus stretches from the Appalachian region through Pennsylvania and into central New York.
“This is an area where oil and gas exploration is very new. There’s a lot of rumor, innuendo, misinformation and hype about what’s here. But, the Marcellus is very speculative and not even tested at all in Chenango County yet,” he said.
Nonetheless, a group of property owners from New Berlin, Norwich and elsewhere in the county have formed a coalition comprised of about 7,000 acres in hopes of everyone getting the best lease price for their mineral rights. Richard Jorgensen, of Tanner Hill in Norwich, said landowners need to be more educated about the abundance of shallow Marcellus shale in the region and consider forming what’s called ‘integration pools’ with their neighbors.
“People should stop signing leases for low prices,” he said. Gas companies, including Nornew, Chesapeake Energy Corporation and others with an interest in Chenango County, are currently rumored to be offering anywhere from $150 to $3,500 per acre.
“People need to get a lawyer and wait until there is more information out there. Don’t sign your soul away,” Jorgensen said.
Town of Smyrna Supervisor James B. Bays said landowners should be aware of exploration techniques that could potentially damage the land and acquifers beneath. “The drilling goes through a lot of sensitive flora and fauna,” he said. “Landowners should know their rights beforehand.”
Right-of-ways have been purchased, for the large part, for an extensive pipeline that, in some areas, is actively in use carrying the gas to sales points.
Natural gas has been found in layers of Herkimer and Oneida sandstones here, Nornew, Inc. Vice President of Geology Stuart Lowenstein said. Lowenstein – who just happens to be a native of Norwich – said he has been studying and testing the geology in Smyrna for the past 15 years, from the granite basement, as it’s called, up through the shallowest layer of Marcellus shale.
The latter layer has been over-hyped recently, Lowenstein said, and is not a proven source of quantity or quality at this time. New horizontal drilling technologies have recently been discovered that make reaching the Marcellus shale easier for exploration companies. The Marcellus stretches from the Appalachian region through Pennsylvania and into central New York.
“This is an area where oil and gas exploration is very new. There’s a lot of rumor, innuendo, misinformation and hype about what’s here. But, the Marcellus is very speculative and not even tested at all in Chenango County yet,” he said.
Nonetheless, a group of property owners from New Berlin, Norwich and elsewhere in the county have formed a coalition comprised of about 7,000 acres in hopes of everyone getting the best lease price for their mineral rights. Richard Jorgensen, of Tanner Hill in Norwich, said landowners need to be more educated about the abundance of shallow Marcellus shale in the region and consider forming what’s called ‘integration pools’ with their neighbors.
“People should stop signing leases for low prices,” he said. Gas companies, including Nornew, Chesapeake Energy Corporation and others with an interest in Chenango County, are currently rumored to be offering anywhere from $150 to $3,500 per acre.
“People need to get a lawyer and wait until there is more information out there. Don’t sign your soul away,” Jorgensen said.
Town of Smyrna Supervisor James B. Bays said landowners should be aware of exploration techniques that could potentially damage the land and acquifers beneath. “The drilling goes through a lot of sensitive flora and fauna,” he said. “Landowners should know their rights beforehand.”
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