NORWICH – Chenango County supervisors learned for the first time Monday that they had entered into a compulsory integration lease with Nornew, Inc. back in January on 4.5 acres of county-owned land in Preston.
Compulsory integration in New York is governed by the Oil, Gas and Solution Mining Law according to a well’s proposed depth and the type of shale sought. Following public hearings held by the New York State Department of Environmental Conservation, landowners within a specific space limit are contacted when a nearby well is set to be drilled and given the option to integrate.
The news came as a surprise to at least one supervisor, James J. McNeil, who asked Chairman Richard B. Decker twice during the board’s monthly meeting Monday about agreements made on behalf of the legislature.
“All agreements come before the board before you sign them, correct?” McNeil, D-City of Norwich, asked.
“Yes. Before I sign them,” Decker responded.
Nornew, an international energy company operating locally out of offices in Norwich, informed the county on Jan. 3 that some of its property would be contained within a state-sanctioned spacing unit near a private landowner’s drill site, and requested leasing it. The county was given the option to choose from three different proposals.
“It is our hope that ... we are able to reach a mutually satisfactory and a mutually beneficial arrangement,” Dennis L. Lutes, land manager for Nornew, Inc. wrote.
A compulsory integration election form, obtained from the planning department, was signed by Decker and notarized by the county’s attorney on Jan. 17. The form also required the signer to choose from three specific agreements having to do with royalties from the well being drilled near county Road 18.
Town of Preston Supervisor Peter C. Flanagan brought the matter before the board during a discussion of creating a stand-alone committee that would specifically address energy companies’ burgeoning interest in the region.
“These people (natural gas companies) are going to be with us for a long, long time. We need to perhaps be out front with some of these issues,” Flanagan said.
Instead of creating a new government committee, Flanagan suggested that issues about permits for rights-of-way and seismic testing should be addressed in the Public Works Committee and the potential for more compulsory integration as companies drill near highways or county-owned land should be addressed in the Agriculture, Buildings and Grounds Committee.
When reached following the meeting, Decker said he “didn’t think it was necessary” to bring the compulsory integration request before the board because of the small size of the county-owned land in question.
Later, after consulting further with County Attorney Richard Breslin, he said the land was contained within the road and bridge’s right-of-way. The two choose the first option available, Decker said, of the three because it carried the “least exposure” legally for the county.
Permits for seismic testing and other uses of county rights-of-way are granted by the county’s highway superintendent.
When contacted this morning, Flanagan said: “I’m not saying they shouldn’t have signed it. They probably had no choice, but there is a procedure. They ought to at least keep us advised.”
“Here’s an example of what could happen (with the growing interest in natural gas deposits under Chenango County). It happened once. We need to look at the compulsory integration process and how it could work for the county as it does for private individuals,” said Flanagan.
Natural gas exploration and drilling discussion took up most of the discussion at a meeting of the Chenango County Board of Supervisors despite an agenda of 32 resolutions to legislate.
Only a handful of supervisors pushed for creating a dedicated committee on natural gas exploration. Planning and Economic Development Committee Chair Supervisor Linda Natoli, R-City of Norwich, who spearheaded the drive initially, backed off, referring the matter to Decker. Decker said he had no opposition to forming the committee.
Natoli questioned “government sanctions on private enterprises.”
“What will be the perception out there and how much do we want to be in control at the government level?” she asked.
Breslin said the county was not authorized to provide advice to municipalities and private individuals regarding their land. He referred supervisors to the Farm Bureau or the New York State Association of Towns for information.
“I understand that everybody wants to help the public, but the county does not give individuals or municipalities advice,” Breslin said.
Town of New Berlin Supervisor Ross Iannello said it was a “fallacy” that state environmental conservation law can “oversee” the industry.
“There’s no reason why we can’t look into what is a good procedure and what’s not. ... Some towns are interested in what laws they can pass. There’s a lot going on and none of us understands it all,” he said.
Town of German Supervisor Richard Schlag said it was difficult for smaller towns to research the issues affecting property owners. “It would be helpful for towns as a whole,” he said.
Town of Pharsalia Supervisor Dennis Brown said he opposed a special committee. “If we start throwing up road blocks, they (gas companies) will move to another county. There needs to be planning. We need to ask them, ‘What can we do for you?’”
Supervisor James Bays, D-Smyrna, said a special committee would provide information on natural gas drilling to towns and help the county “make a wish list” for legislators on environmental and safety issues.
“It sounds to me like the county would like to deal with regulatory issues dealing with protecting the environment and safety after the fact,” he said following the meeting.