Landowners Coalition plans regional meetings
NORWICH – Energy companies have been eyeing the 174,000-acre strong Central New York Landowners Coalition to lease its mineral rights, hints the group’s president, but no firm offers are on the table.
The possible interest comes on the heels of a second offer made last week for 3,200 acres of Broome County land. Denver-based Inflection Energy LLC has reportedly proposed $2,250 to $2,750 an acre and 20 percent royalties to extract natural gas from the county’s Marcellus Shale reservoir. (An earlier deal was voted down by Broome’s legislators.)
To relay details of the oil and gas industry’s inquiries, the Central New York Landowners Coalition, based in Chenango County, plans a series of six regional meetings this fall.
The meetings are also designed to help fill in land blocks that would give the group greater negotiating power when the time comes, said Brian Conover, CNYLC president.
“Our true coalition strength is flexed through contiguous acres. More than just land to drill, the industry also needs right-of-way to get the gas out, which is why contiguous acreage is what they are most interested in,” Conover said.
Even non-members who may have already leased their land to a company are invited to attend. Participants will be able to see maps of leased and unleased acreage. In addition, both legal and scientific experts will be on hand to answer questions.
The coalition was formed by a small group of Norwich and New Berlin neighbors who, back in 2007 and 2008, were being approached by consultants for natural gas companies that wanted to lease their mineral rights. It has advocated for “responsible drilling” at fairs, conferences and rallies in Albany, Binghamton and elsewhere throughout the state.
This summer, the group joined forces with the Oxford Land Group, another coalition made up of landowners, primarily from the west side of the Chenango River.
So far, three regional meetings have been scheduled and three more are to be finalized in the coming days:
Region #1 (date to be announced): Towns of Preston, McDonough, German, Plymouth, Pharsalia, Pitcher, Smyrna, Otselic and Lincklaen. Region #2: 6:30 p.m. September 30 at Unadilla Valley Central School Auditorium for towns of Norwich, New Berlin, North Norwich, Sherburne and Columbus.
Region #3: 6 p.m. Oct. 14 at Greene Central High School for towns of Coventry, Greene, Oxford and Smithville. Region #4 (date to be announced): Towns of Afton, Bainbridge and Guilford.
Region #5 (date to be announced): Otsego County Towns of Pittsfield, Edmeston and Plainfield. Region #6: 7 p.m. Oct. 27 at Unatego High School for Otsego County towns of Otego, Unadilla, Butternuts and Morris.
Local deals made with land coalitions include XTO Energy, Inc.’s 2008 agreement with a group in Deposit. The company paid out $2,411 per acre and 15 percent royalties on 47,000 acres. In Friendsville (Penn.), Fortuna (now Talisman Energy) negotiated with the owners of 30,000 acres to pay out 20 percent of the royalties upon production. In that agreement, $5,500 per acre went up front to property owners in Pennsylvania (where shale is being actively drilled) and $500 to those on the New York side once the state’s moratorium if lifted.
New York’s environmental regulations for permitting hydraulic fracturing in shale formations – under review for more than two years – could be completed by the end of the year. A Senate bill that would ban the controversial drilling technique through May has yet to come before the House.
The possible interest comes on the heels of a second offer made last week for 3,200 acres of Broome County land. Denver-based Inflection Energy LLC has reportedly proposed $2,250 to $2,750 an acre and 20 percent royalties to extract natural gas from the county’s Marcellus Shale reservoir. (An earlier deal was voted down by Broome’s legislators.)
To relay details of the oil and gas industry’s inquiries, the Central New York Landowners Coalition, based in Chenango County, plans a series of six regional meetings this fall.
The meetings are also designed to help fill in land blocks that would give the group greater negotiating power when the time comes, said Brian Conover, CNYLC president.
“Our true coalition strength is flexed through contiguous acres. More than just land to drill, the industry also needs right-of-way to get the gas out, which is why contiguous acreage is what they are most interested in,” Conover said.
Even non-members who may have already leased their land to a company are invited to attend. Participants will be able to see maps of leased and unleased acreage. In addition, both legal and scientific experts will be on hand to answer questions.
The coalition was formed by a small group of Norwich and New Berlin neighbors who, back in 2007 and 2008, were being approached by consultants for natural gas companies that wanted to lease their mineral rights. It has advocated for “responsible drilling” at fairs, conferences and rallies in Albany, Binghamton and elsewhere throughout the state.
This summer, the group joined forces with the Oxford Land Group, another coalition made up of landowners, primarily from the west side of the Chenango River.
So far, three regional meetings have been scheduled and three more are to be finalized in the coming days:
Region #1 (date to be announced): Towns of Preston, McDonough, German, Plymouth, Pharsalia, Pitcher, Smyrna, Otselic and Lincklaen. Region #2: 6:30 p.m. September 30 at Unadilla Valley Central School Auditorium for towns of Norwich, New Berlin, North Norwich, Sherburne and Columbus.
Region #3: 6 p.m. Oct. 14 at Greene Central High School for towns of Coventry, Greene, Oxford and Smithville. Region #4 (date to be announced): Towns of Afton, Bainbridge and Guilford.
Region #5 (date to be announced): Otsego County Towns of Pittsfield, Edmeston and Plainfield. Region #6: 7 p.m. Oct. 27 at Unatego High School for Otsego County towns of Otego, Unadilla, Butternuts and Morris.
Local deals made with land coalitions include XTO Energy, Inc.’s 2008 agreement with a group in Deposit. The company paid out $2,411 per acre and 15 percent royalties on 47,000 acres. In Friendsville (Penn.), Fortuna (now Talisman Energy) negotiated with the owners of 30,000 acres to pay out 20 percent of the royalties upon production. In that agreement, $5,500 per acre went up front to property owners in Pennsylvania (where shale is being actively drilled) and $500 to those on the New York side once the state’s moratorium if lifted.
New York’s environmental regulations for permitting hydraulic fracturing in shale formations – under review for more than two years – could be completed by the end of the year. A Senate bill that would ban the controversial drilling technique through May has yet to come before the House.
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