Susquehanna County Blog

It is becoming more and more evident that there are two groups of people who own land and who haven’t signed a mineral rights- those who want to sign and get a check as soon as possible and those who don’t. 

Those who remain on the fence about it are dwindling in number literally by the hour.   Over the past few months, the landmen running around have subjected the unsigned owners to sign using every tactic they could think of to get them - and for the worst terms possible to them. 

At the end of the day, those who do not sign a lease may be in a much better position than those who do.  Why?

Let’s be realistic folks, most people won’t have a production well on their property.  Those who do will probably do very well financially (at least by our local standards).  Those who are in a “production unit” (still undefined as I understand it), will make some money, depending on the size of the production unit.  According to various landmen, the production unit may consist of between 40 and 640 acres.  The shape will be determined by the gas company and does not have to include contiguous parcels.  Of course, few if any locally have seen any of this is writing, so it is entirely up to the discretion of the gas company to either include or not include you in a production unit.  If you are not included in a production unit, beware.

Those who have signed and will not have a production well on their property or be included in a production unit may have, according to the terms of their lease, given their permission to use their property for “storage”.  It is entirely possible, and maybe probable, that the properties not used for production may be hosting injection wells.  Or, maybe the “non domestic water” will be used to supply the enormous requirements for fracing fluid.  Many who have signed have given their permission, knowingly or not, to allow this to occur. 

If not injection wells, how about those retention ponds.  I bet they smell wonderful during the hot days of summer.  It may make your local veal farm smell good.  It certainly won’t help the property owner who is down wind to have “peaceful enjoyment” of their property.  You will almost certainly see one or the other.  Why not recycling? 

No one will be trucking this toxic mess to the Meadville area (the closest area currently permited to accept this waste) to be recycled.  Certainly not at $5 or so per gallon or more of diesel fuel.  If water weighs about 8 pounds to the gallon and you have to transport one million gallons, you may be able to get  about 8,000 gallons at most on a tank truck.  Sort of like those tankers who deliver gasoline to your favorite filling station.  Here is the math: 1,000,000 gallons divided by 8,000 gallons equals 125,000 tankers. This is just for fracing of one well, one time.  As I said, no one will be trucking this fluid for recycling.  By the time a plant could be built in this area, it would probably be too late.  Also, who would pay for it?  The drillers you say?  They should, but they probably would demand government funds.  Being optimistic, maybe a few people should look in to building such a facility privately.  Then the municipalities would have a better chance to pass legislation to force recycling.  Of course waiting for the necessary permits from DEP, EPA and God only knows who else, the issue could become moot.  Is it already too late? 

Maybe the waste could be transported by rail.  No wait, the current county commissioners haven’t supported the Railroad Authority any more than the last bunch.  Now it is reported that the land which was to be used as the basis for a transload facility will no longer be available as the Authority cannot get the support of State and Local officials.  Too bad, they had defeat snatched from the jaws of victory.  So, probably no rail solution here. 

As stated in a previous post, the landowner who has leased and finds they have problems after the fact, especially those who signed early on, will have precious little recourse.  Some will get an acknowledgement of their complaint within 60 or so days, others (current leases being circulated) require the lessor (landowner) to submit to arbitration.  No wonder they want to have as many signed up as possible.  Especially if they are properties which will never be drilled on.  This will reduce the company’s potential for a payout in the event of a problem.  NEVER GIVE UP YOUR RIGHT TO A JURY TRIAL.  If you sign a lease, you have certainly compromised yourself in that regard.  Ask a competent attorney.  Please note the word competent.  There is a difference between an attorney who can help you transfer your home and one who can properly represent you in negotiations such as these gas leases.

Here is something else to chew on.  Did the municipalities who signed a lease negotiate the use of natural gas for their respective commuties?  If not, why not.  Ask your elected official why their attorney (who is supposed to be advising them) didn’t negotiate that item and many others.  Part of the problem is that it is the opinion of this writer that there isn’t an attorney in the area who is competent to properly represent their client in these negotiations.  If they were, they wouldn’t have allowed their clients to sign these leases which are ridiculously slanted in favor of the lessee (gas company).

To those of you who haven’t signed a lease and share the concerns of this writer, good for you.  Whether it is out of not needing the money, concern for the environment, concern for reduced property values or some other valid reason, good for you. 

Maybe it is time for those who have no intentions of signing to organize to protect their properties.  Not just some little group in our fair county, as that will have little if any impact.  From reading publications from other areas, there are others in the Marcellus shale who don’t buy into the whole thing for whatever reason.  Maybe there should be a broad based effort to organize and force our elected officials to do something to protect those who don’t want to “play”. 

Maybe it’s time for Congressman Henry Waxman (D) California to reopen his House Oversight Committee Hearings on the subject. 

Your thoughts?

This entry was posted on Thursday, June 19th, 2008 at 5:00 pm and is filed under 2008, 2008 Susq. Co. Commissioners, Gas Wells. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.