Talk about burying the lede, this appears in para 9: Other groups fear environmental ruin from drilling and a process called hydro-fracturing, used to stimulate well production. Unlike traditional wells drilled into the Trenton Black River throughout the Western Southern Tier for generations, Marcellus production would require heavier equipment and millions of gallons of a chemical solution injected into bedrock to create fractures and free the gas.
-- Katie Q-J Jan Quarles wrote:
June 15, 2009 Owner groups say gas-drilling deals near; 30,000 acres around Binghamton included Binghamton Press & Sun Bulletin By Tom Wilber [email protected] Property owner coalitions representing three towns in the heart of Broome County are closing in on a deal with a multinational energy company that would open nearly 30,000 acres around the City of Binghamton for natural gas development. Members of a coalition in the towns of Binghamton and Conklin, collectively owning about 18,000 acres, are scheduled to meet Friday to consider an offer by Hess Corp., said coalition leader Dan Fitzsimmons. Hess is partnering with Seneca Resources Corp. in the deal. Because the deal is not final, terms could not be made public late last week, Fitzsimmons said. "This is a huge opportunity for the area," said Fitzsimmons, who has been a strong proponent of encouraging natural gas drilling and its economic potential. He expected between 30 and 60 wells would be drilled in Binghamton and Conklin in coming years if the deal goes through. The offer has also been extended to 450 members of a coalition in Kirkwood who collectively own about 11,400 acres, said coalition leader Marchie Diffendorf. The money is fair enough, he said, but the parties are still trying to work out terms of the lease. No meeting is scheduled yet, he added. He would not disclose terms of the deal. Last May, a group of 500 Deposit landowners agreed to a deal with XTO worth $110 million in lease payments and 15 percent royalties on production. The deal now on the table for some property owners in the towns of Binghamton and Conklin has economic clout as big or bigger than the XTO deal, Fitzsimmons said. Last summer, when natural gas prices were high, area land was being leased for between $2,000 and $5,000 an acre by companies seeking access to the Marcellus, a gas-rich formation running under the Southern Tier and throughout Pennsylvania and the Appalachian basin. An especially thick finger of the Marcellus extends north through Dimock Township in Susquehanna County, Pa., through areas just east of Binghamton. Cabot Oil & Gas is producing gas from the Dimock area around the clock, with dozens of wells being brought on line and dozens more being drilled. Fitzsimmons and others have touted the economic potential of gas drilling, including lease payments and royalties going directly to residents, new jobs, a broader tax base and ripple effects from out-of-town workers patronizing local hotels and restaurants. Other groups fear environmental ruin from drilling and a process called hydro-fracturing, used to stimulate well production. Unlike traditional wells drilled into the Trenton Black River throughout the Western Southern Tier for generations, Marcellus production would require heavier equipment and millions of gallons of a chemical solution injected into bedrock to create fractures and free the gas. While Marcellus production ramps up in Pennsylvania, permits are not being issued in New York until the state Department of Environmental Conservation completes an environmental review of the process, expected later this year. Additional Facts Energy companies court Tier * Hess is a global energy company headquartered in New York City, with operations in the United States, United Kingdom, Norway, Denmark, Equatorial Guinea, Gabon, Azerbaijan, Thailand and Indonesia. The company listed $31 billion in revenue in 2008. It's traded on the New York Stock Exchange as HES. * Seneca Resources specializes in oil and natural gas exploration and development with operations in the Gulf Coast region of Texas and Louisiana, the Appalachian Region, the Southwest and California. The company is headquartered in Houston, Texas, and is a subsidiary of National Fuel Gas Company based in Williamsville, N.Y. _______________________________________________ For more information about sustainability in the Tompkins County area, please visit: http://www.sustainabletompkins.org/ RSS, archives, subscription & listserv information for: [email protected] http://lists.mutualaid.org/mailman/listinfo/sustainabletompkins Questions about the list? ask [email protected] free hosting by http://www.mutualaid.org
-- _______________________________________________ For more information about sustainability in the Tompkins County area, please visit: http://www.sustainabletompkins.org/ RSS, archives, subscription & listserv information for: [email protected] http://lists.mutualaid.org/mailman/listinfo/sustainabletompkins Questions about the list? ask [email protected] free hosting by http://www.mutualaid.org
