So we now know that gas companies will be a part of our lives for a very long time. They came, threw a few (and I do mean a few) bucks around and got themselves ingrained into our lives through leases which few read and even fewer understood before signing. What should we expect from here forward?
Here are some more links to what has happened in other areas.
From MSNBC,
http://www.msnbc.msn.com/id/11641198/from/ET/ some of the social implications.
From the Fort Worth Weekly,
http://www.fwweekly.com/content.asp?article=2988
From the Colorado Gazette,
http://www.gazette.com/articles/tax_28315___article.html/gas_colorado.html They are actually generating tax revenue from the wells there. Are we?
It is time to really push our state legislators (especially including the ones who have signed up their properties) to PROPERLY regulate the Oil and Gas Industry in Pennsylvania. Since it is well known, or should be, that rural areas such as Susquehanna County will not in the forseeable future see natural gas being made available here for domestic or commercial use from the current “play” under current plans, the question should be asked, “Aside from a few jobs being created, exactly what benefit will the typical landowner (leased or not leased) see from this exercise?
What about the damage to the already fragile infrastructure (roads, bridges, etc)? Who is going to fund the increase in police departments to will have to deal with the (well documented in other areas) increase in crime, drug use, domestic violence, etc. Who is going to pay for that? It most certainly shouldn’t be the owner of a home in a small village here who has no interest in or possibility of making money from a gas lease and who is already is funding the property owners who are benefiting from the Clean and Green program. Oh yes, and while we are at it, let’s not forget the water and air quality issues. We have always been noted for our clean water and air. Let’s see if that remains the case in a few years.
This writer would suggest that the time to ORGANIZE property owners who (a) have sufficient acreage to lease but choose not to become a part of the gas leasing scheme for a variety of reasons, or (b) cannot lease their property due to location (in town for example), address the issues noted above, especially the Clean and Green issue, NOW before it is really too late.
The more I read these postings, the more questions arise.You keep posting things that have happened elsewhere that involve some landowner or neighbor going on about what did not happen as to regulating. Various questions that come to mind from a local view:1/ Clean and Green–We have local drilling going on ,did these properties pay back after commercial drilling happened? And how much? Total property or partial?2/ Ag Preservation– There are properties that have received fairly large taxpayer subsidized grants to keep them in ag. use.Did these properties repay these grants upon signing leases?Are they forbidden from signing because of this ag. preservation lease? Or are they truly putting new meaning to multiple dipping?3/ Zoning–Many municipalities have zoning and many more will soon under the Northern Tier/COG zoning arrangement.Have these municipalities reviewed these adopted and proposed ordinances as to the commercial drilling for gas and the development of the land around it?Are they prepared to enforce and/or defend these ordinances?4/ County Flood mitigation plan–What does this adopted plan have to say about the water storage facilities? If they be pond, lake,or temporary unit; the storage of millions of gallons of water for fracing wells should fall under this adopted plan for the mitigation of water problems.These are but a few of the questions that jump out to me as to the local effort of regulating some of the possible problems that have been listed on these postings. Are there any answers as to these?
This writer is very happy that these postings have generated more questions. If we had had the information before, maybe some would have made different decisions regarding leasing their oil and gas rights.
The following is a response to susqcoresident’s questions. Please keep in mind that these responses should be verified with the various departments within Susquehanna (or whatever county is pertinent).
Please keep asking questions. Please tell your friends and neighbors to ask questions as well. Make our elected officials do what they were elected to do - REPRESENT YOU. If enough people put enough pressure on them, just maybe they will do something. If not, there is always the national media. They are always looking for a way to go after large coroprations and questionable politicians.
It is the understanding of this writer that there will be NO rollback of the Clean and Green on a gas leased property until a well is drilled. At that time, the drilling pad would be removed (similarly to a stone quarry) C&G assessment and returned to the regular rate. Sources tell this writer there will be NO penalty. For further information - Susquehanna County Assessment Office 570-278-4600 Ext. 150.
Maybe the NON C&G owners should get together and file a class action suit against whatever county they own real estate in for LACK OF UNIFORMITY IN ASSESSMENT AND TAXATION. How much longer should the Non C&G properties be supporting the C&G properties - especially when they now have a COMMERCIAL, NON AGRICULTURE USE? If you own 100 acres and gas lease 100 acres, it is a COMMERCIAL use, plain and simple.
Regarding Ag Preservation, Sources tell this writer there is NO violation of the act if the property is gas leased. Multidip? You betcha!! Susquehanna County Courthouse 570-278-4600 AND be sure to call your legislators.
Currently only 5 boroughs and 1 township have zoning (of 40 municipalities) in Susquehanna County. I would suggest speaking with the township you live in to possibly have some input. I believe there have been and will be other public meetings before the zoning is enacted in the municipalaties of the Northern Coalition.
Regarding the county flood mitigation plan - Soil Conservation, the Emergency Management Agency OR the County Planning Department could be the place to start. Courthouse 570-278-4600.
Oh Yes, don’t forget our fine commissioners. Make sure you ask these questions at the Commissioner meetings and anywhere they appear in public. Remember, they work for you - and are charged with the responsibility of the welfare of the county.
The readers of this blog will be interested to hear the answers you will get.
Last night, at a meeting of landowners associated with Conservation Services, LLC, someone from the audience brought out this nugget.
Some leases include an addendum or clause similar to this: “Lessee agrees that if any penalty, rollback, or re-capture of tax abatements created or imposed under any governmental program such as, but not limited to CREP. CRP and Clean and Green that is levied on Lessor solely as a result of Lessee’s operations on the leased premises, collectively (the “Penalties”), Lessee wil reimburse Lessor within 45 days from Lessee’s receipt of any Penalty notice.”
Since each county appears to interpret “Clean and Green” independently, there may be not change in your tax status. Should your county decide that some or all of your land is no longer eligible for the reduced tax you will be charged the regular tax and the seven times the increase for the rollback penalty. The gas company will reimburse you.
That reimbursement money is considered “ordinary income” for state and federal income tax purposes.
This is good for SOME lessors. There are many who do not have that clause in their lease. There was a Chesapeake lease going around in early April which had that clause struck out. The reasoning at the time was that if they were going to pay $1,500 per acre plus 15%, the landowner could pay their own taxes. I suspect that there are others as well. It would be my guess that many of the early leases did not address the matter at all.
Regarding “each county appearing to interpret Clean and Green independently”, that could be further grounds for an action based on “lack of uniformity” in taxation for those who are not in C&G and have to make up the shortfall.
But the question still is–WHAT ARE OUR LOCAL COUNTIES DOING? W e have actual physical drilling going on. I cannot believe some of thesae properties where the current drilling is going on were not in clean and green. So what, if anything, happened in those cases? Also did I read in the Montrose paper where the LaRue property in Rush Twp. was paid Ag. preservation money some time ago? Is this not the same property where current drilling is going on? How do you preserve agricultural use on a property that has been all tore up with drilling?
Again, the answer about what our local counties are doing is essentially NOTHING. You need to speak with the Assesment Office (phone # above), the county commissioners, our legislators and any one else who is in a position to help regulate this mess.