Natural gas report delayed; new lease signed
NORWICH – The state’s environmental conservation agency will take more time to present its revised regulations for high water volume horizontal hydraulic fracturing in New York State’s natural gas resources.
The draft Supplemental Generic Environmental Impact Statement was supposed to be released next month, but now a spokesman for the New York Department of Environmental Conservation said the target date is more likely to be late summer. The DEC has been working on the permitting document for nearly three years.
Nonetheless, the delay didn’t prevent a group of Windsor landowners from finalizing a leasing contract this week for natural gas development with Inflection Energy worth $8.25 million. The landowners, who were part of the Windsor & Colesville Oil and Gas Lease Coalition, will receive $2,750 per acre in bonuses, plus 18 percent royalty payments on any gas extracted.
Due to the anti-drilling climate, it has been more than a year since a Southern Tier coalition’s holdings were leased. The president of a group of landowners representing 200,000 acres from Chenango and Otsego counties welcomed Tuesday’s news.
“I’m happy for them and I’m glad land is being gobbled up. But I see that transaction as somewhat of a bargain for companies. They still see leasing as somewhat of a risk because of the conditions here,” said Brian Conover of the Central New York Landowners Coalition.
The original June 1 date for releasing the SGEIS was incorporated into an executive order issued by Gov. David Paterson upon leaving office in late December, when he vetoed legislation that would have placed a moratorium on all types of drilling in New York. The DEC’s Michael Bopp said the date was not something that the DEC was consulted on initially, and the expectation was that completing the document would take longer.
The DEC has been at work revising its permitting regulations for the technologically enhanced means of extracting natural gas from subsurface shales since 2008. The now 1,300 page permitting document covers everything from well capping and cement casing specifications, to how to monitor and treat wastewater, to managing the increased truck traffic expected on rural roadways.
A previous public comment period, which ended Dec. 1, 2009, resulted in 14,000 comments, all of which have been considered and or implemented over the past 17 months.
Another public comment period will follow release of the document later this summer. Bopp said the period would last no less than 30 days and the ending date would be announced when the report is released.
“After the comment period, at whatever time that concludes, the agency would bring the information back inside, evaluate, revise and respond to those comments, as necessary, and then generate what will really be the final recommendation of the department to the governor,” Bopp said.
The DEC will be looking for new and unique information and perspectives than those comments that have already been addressed, he added.
While high water volume horizontal hydraulic fracturing has been ongoing in other states, and just over the border in Pennsylvania, it hasn’t been without its pitfalls. Incidences of methane and even radium contamination in residential wells and streams and rivers have been cited. Bopp said the DEC has continued to monitor the emerging science and work with agencies such as the U.S. Environmental Protection Agency as well as environmental conservation officials in other states.
“We will take all of that thinking, ideas and issues under consideration from then to now,” he said. “There’s been such a range of scientific reports and emerging trends in the industry as they work toward creating best practices, particularly in the area of wastewater management.”
Chenango County’s Economic Development Consultant Steven Palmatier said the DEC’s delay in releasing the draft SGEIS gives the county an additional opportunity to prepare its workforce.
On the other hand, he said it makes it difficult for him to convince service and supply companies to invest their money and manpower toward opening significant businesses or branch offices in Chenango County.
“Elmira is seeing significant development around the natural gas industry in Pennsylvania. We are needing to locate industry here to supply the native natural gas that will potentially occur in southern New York state,” he said. “The delay certainly makes my job harder.”
The draft Supplemental Generic Environmental Impact Statement was supposed to be released next month, but now a spokesman for the New York Department of Environmental Conservation said the target date is more likely to be late summer. The DEC has been working on the permitting document for nearly three years.
Nonetheless, the delay didn’t prevent a group of Windsor landowners from finalizing a leasing contract this week for natural gas development with Inflection Energy worth $8.25 million. The landowners, who were part of the Windsor & Colesville Oil and Gas Lease Coalition, will receive $2,750 per acre in bonuses, plus 18 percent royalty payments on any gas extracted.
Due to the anti-drilling climate, it has been more than a year since a Southern Tier coalition’s holdings were leased. The president of a group of landowners representing 200,000 acres from Chenango and Otsego counties welcomed Tuesday’s news.
“I’m happy for them and I’m glad land is being gobbled up. But I see that transaction as somewhat of a bargain for companies. They still see leasing as somewhat of a risk because of the conditions here,” said Brian Conover of the Central New York Landowners Coalition.
The original June 1 date for releasing the SGEIS was incorporated into an executive order issued by Gov. David Paterson upon leaving office in late December, when he vetoed legislation that would have placed a moratorium on all types of drilling in New York. The DEC’s Michael Bopp said the date was not something that the DEC was consulted on initially, and the expectation was that completing the document would take longer.
The DEC has been at work revising its permitting regulations for the technologically enhanced means of extracting natural gas from subsurface shales since 2008. The now 1,300 page permitting document covers everything from well capping and cement casing specifications, to how to monitor and treat wastewater, to managing the increased truck traffic expected on rural roadways.
A previous public comment period, which ended Dec. 1, 2009, resulted in 14,000 comments, all of which have been considered and or implemented over the past 17 months.
Another public comment period will follow release of the document later this summer. Bopp said the period would last no less than 30 days and the ending date would be announced when the report is released.
“After the comment period, at whatever time that concludes, the agency would bring the information back inside, evaluate, revise and respond to those comments, as necessary, and then generate what will really be the final recommendation of the department to the governor,” Bopp said.
The DEC will be looking for new and unique information and perspectives than those comments that have already been addressed, he added.
While high water volume horizontal hydraulic fracturing has been ongoing in other states, and just over the border in Pennsylvania, it hasn’t been without its pitfalls. Incidences of methane and even radium contamination in residential wells and streams and rivers have been cited. Bopp said the DEC has continued to monitor the emerging science and work with agencies such as the U.S. Environmental Protection Agency as well as environmental conservation officials in other states.
“We will take all of that thinking, ideas and issues under consideration from then to now,” he said. “There’s been such a range of scientific reports and emerging trends in the industry as they work toward creating best practices, particularly in the area of wastewater management.”
Chenango County’s Economic Development Consultant Steven Palmatier said the DEC’s delay in releasing the draft SGEIS gives the county an additional opportunity to prepare its workforce.
On the other hand, he said it makes it difficult for him to convince service and supply companies to invest their money and manpower toward opening significant businesses or branch offices in Chenango County.
“Elmira is seeing significant development around the natural gas industry in Pennsylvania. We are needing to locate industry here to supply the native natural gas that will potentially occur in southern New York state,” he said. “The delay certainly makes my job harder.”
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