Binghamton Conklin Gas Lease Coalition

Archived Message

Our Lawyer is Going to Albany (1/21/09)-
Here is a letter from Scott Kurkoski (our lawyer) to all of you:

Your steering committee has been sending you messages about a landowner rally in Albany next Monda (January 25th)y.

This one is important!

My wife, her parents and I are going.   You need to strongly consider attending.  There are people and organizations calling for further delays of a year or more. Others advocate complete bans on drilling in New York.  The anti-drillers will also be in Albany on Monday.   You cannot be absent from this debate.  

If closing a gas lease on your property is important to you, then you need to attend.  Your steering committee cannot do this one alone.  Thank you.  

Coalition Bus Trip (1/17/09)-
On Monday, January 25 at 11 a.m. various obstructionist groups will converge on State Capitol in Albany, New York to rally AGAINST natural gas exploration in New York.!!!

Many of you have asked how we can show Albany that we are the silent majority and that the obstructionist groups are a vocal few. We have organized a FREE bus trip and rally in Albany.

This will affect YOU! NY and its citizens can not afford to chase anymore opportunities and business away!

Who wants to go!  Bring your fellow landowners, family and friends leased or not!  The more the merrier! Steering Committee members will be on the buses to give a coalition update and to answer any drilling / leasing related question that you may have.  (Details of current lease negotiations and companies will not be discussed)

Monday, January 25, 2010
Buses will leave at approximately 7:00 a.m. 
Time may change based on local pick up locations.

Other coalitions from across NYS will be there with us to support safe drilling.

Sign up for a seat with the coalition.

Bus stops/locations to be determined.

We will arrive in Albany at 10 a.m. and attend at press conference at: 10:30 a.m. at the LCA Room.

Capitol Press Room Room 363 (located on the third floor on the Hudson River side of the New York State Capitol between the Senate and Assembly chambers.)

Immediately following the press conference we will conduct a rally of our own outside the Capitol building East Park.
Remember the RALLY! Now lets take that to Albany, but 10 fold. On Monday January 25th!
Now is the time to show your support.

Take that personal day or watch the obstructionist kill your chance of a lease!

This time its up to you!  And you don't even have to drive!  No Excuses.

As you know, while natural gas exploration has been conducted safely in New York for decades, the public and lawmakers have been misinformed repeatedly by these obstructionist groups whose agenda is only to kill new investments in some of the state’s most economically deprived regions.

We cannot let them overwhelm Albany and be the only voice that is heard at the Capitol that day! Please join us for this bus trip to Albany:  The trip is being paid for by the gas industry but food and drink are on your own dime.

Please respond ASAP to this via e-mail (nygaslease@gmail.com) or call Chris Ostrowsky (607) 722-1009 and let us know how many in your party can attend the rally  It’s time to tell Albany enough is enough! Natural Gas Exploration can be done safely in an environmentally friendly manner.

Below are links with info on what the obstructionists have planned for that day.  They are well organized and well funded.http://action.sierraclub.org/site/MessageViewer?em_id=153421.0&dlv_id=132501 
http://readme.readmedia.com/New-Yorkers-to-Rally-in-Albany-Call-on-Gov-Paterson-State-Leaders-to-Delay-Natural-Gas-Drilling-Rush/1042899 
http://www.citizenscampaign.org/PDFs/ADVISORY_01252010_final.pdf 

Help is Needed (1/15/09)-
The meeting yesterday with members of government, gas industry, landowners and business was a huge success.  Here are 2 news reports on the meeting and videos.

http://www.wbng.com/news/local/81572087.html

http://www.wicz.com/news/video.asp?video=01%2D14%2D10+drilling%2Ewmv%2Eflv&zone=News

At yesterdays meeting Barbara Fiala said that she was pleased with all the support she has received since she came out in favor of drilling.  She has received over 500 emails of thanks.

Unfortunately Kevin McCabe from Governor Patterson's office told us that the Governor has received only a handful of positive emails and hundreds of anti-drilling emails.

Now we need your help again.  A couple of weeks ago, we asked you to send our County Executive a note letting her know that you support her reasonable pro-natural gas drilling stance.  The response was overwhelming and has made her understand that she has support.  Thank-you.  Now, we are again asking you to send an email, this time to Kevin McCabe letting him know that you support safe gas drilling.  Kevin is the representative for Governor Patterson for this area.  Kevin has requested that you drop him an email at Kevin.McCabe@chamber.state.ny.us    He has been receiving many emails from those opposed to gas drilling & it’s time we became pro-active.  We believe that Kevin will take all responsible emails to the Governor.  Please be certain to make a logical statement as to why you are urging him to do whatever is possible to have DEC complete their SGEIS study as quickly as possible & then begin permitting for Marcellus drilling immediately.  He will not accept any anonymous emails, so let him know who is sending it.  You may feel free to pass this email along (in fact, we urge you to do so) to any reasonable, pro-drilling advocate.  It’s important that our Governor understand the need for this opportunity to proceed.

From your Steering Committee (1/14/09)-
The following is a message from Dan Fitzsimmons - The BC Steering Committee Chairman
As always we try our best to keep you informed of the good and the bad and this email has a little of both in it.

This week, on Friday, we had a scheduled meeting with a major energy company to put the finishing touches on our lease. We had an economic package worth in excess of 70 million dollars in place. The company informed us this week that they regretfully have to walk away at this time due to the current regulatory climate in New York State and opposition to drilling that has appeared in the press.  The energy company recognizes the tremendous amount of time and effort that both they and the Steering Committee Negotiating Team put in to this process to come to a mutually acceptable agreement that could be presented to the our Coalition.  They expressed a desire to pick up where we left off once the State comes to terms that would allow energy exploration to move forward.  The energy company did not make this decision lightly, but the prospect of investing this sum of money with no assurance as to when they could start drilling left them with no other choice.

Although this is a discouraging turn of events, we do still have a number of other companies that we are in various stages of negotiations with.  Although we are not as close to a final package with these companies, we are still moving forward.  We fully recognize that, to our advantage, there is not a lot of prime Marcellus acreage left to be leased except for our “tier 1” area. 

We are taking our cause to the Governor in order to bring the energy industry to our communities in an organized way.  To that end, the JLC (Joint Landowners Coalition), of which our coalition is a very active part,  has set up a meeting bringing Government, Energy Industry, Business, and Land Owners together to present a united front to encourage the Governor to keep the permitting process on track. This meeting will be held Thursday morning at Assemblyman Crouch’s office.

This showing of bipartisan support in favor of safe gas exploration is what we need now to prevent further delays and to encourage the energy companies not to bypass NY in their quest for natural gas.

For those who do not know what the JLC is, it is an organization of coalition representatives made up from more than 28 land owner coalitions covering more than 750,000 acres and more than 8 counties. This group brings together over 17,500 families seeking to lease their land.

Another interesting and favorable fact is that on the DEC website they have listed new job openings for specialists in mineral resources.  According to their website they are looking for people with "professional-level experience in drilling, development, or production for oil, gas, solution mining, or underground gas storage."  The DEC requires that applications are submitted by February 16th.  Applicants must take a written test on March 20th and the salary is effective on April 1st. http://www.dec.ny.gov/about/39244.html .

The Committee will be sending out information very soon on ways that you can help with this endeavor.  Please watch your e-mail and visit our web site (www.bcgaslease.com) for more information.

On a final note please make sure you all signed the petition.  Have all of your friends, family, sons and daughters sign up too.  Anyone who is over 18 years old and is in favor of safe gas exploration.  It takes about 60 seconds to complete.  The following is a direct link to the online petition:  http://www.PetitionOnline.com/YESngNY/petition.html 

Thanks for your support,
Dan

From your Steering Committee (1/7/09)-
This is from EnergyInDepth.org
EPA vs. EPA:The More Things Stay the Same, the More They Change

EPA VS. EPA

 THE WHOLE TRUTH, AND EVERYTHING BUT?

ABOUT THOSE BATS

HINCHEY’S EPIPHANY

From your Steering Committee (1/6/09)-
Great Video about Fracing and Groundwater Contamination
http://www.youtube.com/user/JimInhofePressOffice#p/u/2/TsjdZQb1_-U

From your Steering Committee (1/5/09)-
Thank you to Barb Fiala
We would like to thank everyone who sent out the much needed emails this week.  Barb Fiala has received hundreds of positive emails from you.  At this critical time we need to support anyone who is willing to stick their neck out to support us and natural gas drilling.  If you have not emailed her, please send a quick "Thanks" email to her at barbara@barbarafiala.com

The Monday DEC Meeting never materialized but there was a large anti-drilling event on the steps of city hall in  NYC (see article below).  Please send a short email to the DEC stating that we support them and their ability to oversee safe drilling of the Marcellus. Let them know that the Anti's are not the majority.  DEC email at  sfgruski@gw.dec.state.ny.us .

From your Steering Committee (1/2/09)-
Please Support The County Executive
On Friday, Broome County Executive Barbara Fiala made a public statement strongly in favor of the DEC issuing permits for responsible drilling in the Marcellus Shale.  Since that courageous statement she has been bombarded with criticism & denunciations from those that oppose any forward movement in the drilling process.

Regardless of your political affiliation or any personal feelings, now is the time to stand with The County Executive and support one of the very few influential politicians that has the strength to make public what we all know to be critical-that responsible drilling must be allowed-and quickly.

I am urging you, to just take a few minutes and thank the County Executive for her stand.  Her email is bfiala@co.broome.ny.us  and her office phone number is 607-778-2109.  Please do send her a message that her stand is appreciated.  Don’t blow this off.  If you do, the only people that she is hearing from are the anti-drilling folks, and let’s face it, she could stand to hear from those that know that she is right on this issue!  Everyone who gets this email needs to respond to her now!! Please forward this email on to others who share our perspective & ask them to actively (CALL & WRITE HER) contact her acknowledging their appreciation.  Get this out on the list serves & on the websites.

Those of you that represent organizations need to do two things- 1. Contact your membership & get them to send their support to The County Executive, and 2. Send her a letter of appreciation on your organization’s letterhead.

Don’t wait until tomorrow-that will be too late.  The opponents to gas drilling are actively working to stop any forward movement.  It’s up to all of us to act & supporting the County Executive is one of the best ways it can be done.  Make this a Happy New Year.

From your Steering Committee (1/1/09)-

Independent Oil & Gas ASsociation of New York Press Release
Released: December 29, 2009
Groups to Governor: Stay Committed to Natural Gas Exploration
ALBANY – A coalition of business and economic development groups, led by the Independent Oil & Gas Association of New York, today urged Governor Paterson to remain committed to his draft State Energy Plan, in which he supports the expansion of natural gas exploration in New York.

Sixteen groups, including chambers of commerce and other pro-business and pro-taxpayer groups, reminded the governor of his stated position that expanded natural gas exploration “would generate economic benefits, including increasing the stable supplies of indigenous fuel, lowering gas transportation costs for consumers, generating new State and local tax revenues, and increased revenues for landowners from land use agreements with natural gas companies.”

The letter was delivered as the state Department of Environmental Conservation nears the end of a nearly two-year process to develop a draft Supplemental Generic Environmental Impact Statement (SGEIS) – the set of regulatory standards that guide natural gas exploration and extraction in New York. The draft SGEIS proposes stringent new regulatory standards to monitor natural gas exploration in the Marcellus Shale – a deep rock formation that extends west from the Catskill Mountains to the Southern Tier and into Pennsylvania and West Virginia.

The Marcellus Shale is America’s largest natural gas deposit, and it carries the potential to greatly increase New York’s energy independence, while vastly improving economic recovery and job creation.       

“We believe that New York cannot afford to turn away or postpone the tremendous opportunity for economic resurgence and a clean energy supply presented by the Marcellus Shale,” the groups stated in the letter. “The extremely stringent requirements proposed by the SGEIS provide the public with the necessary oversight that natural gas exploration and extraction will be conducted in an environmentally safe manner.”

Based on 300 wells drilled, Marcellus Shale development in New York will generate more than $1.4 billion in annual economic impact, including more than $100 million in lease payments to landowners, $32 million in state tax revenue and tens of thousands of new jobs over time. According to a recent study, 2000 wells in Broome County alone would annually generate more than $7.4 billion in economic activity, and nearly $400 million in wages, salaries and benefits. It would also generate more than $600 million in property tax income, $22 million in state taxes and $20 million in local taxes.  

“Natural gas, the cleanest fossil fuel known to man, is a solution to reducing our nation’s carbon footprint,” the groups wrote. “ It will greatly improve New York’s and America’s energy independence … and will serve as the transition to – and the primary back-up for – renewable energy technologies, such as wind and solar.”

IOGA of NY is a trade association founded in 1980 to protect, foster and advance the common interests of oil and gas producers, professionals and related industries in the State of New York. Visit IOGA on the web and sign a petition in support of natural gas exploration at iogany.org or marcellusfacts.com.

Lies, and Walter Hang's Statistics (12/20/09)-
Hello all, I'm sure you all remember Walter Hang's so called statistics on the spills associated with drilling.  Well once again we have found that the hysteria is not as it seems.  Please follow the link below to energyindepth.org and get the real percentage of spills that are related to gas exploration ( 0.045%)

http://www.energyindepth.org/2009/12/lies-damned-lies-and-walter-hangs-statistics/

From your Steering Committee (12/18/09)-
First I would like to thank those members that signed the petition.  We have noticed that many members are not on the list.  If you would like to see who has signed up or you want to sign up please click this link.  It takes about 60 seconds to complete. The following is a direct link to the online petition: http://www.PetitionOnline.com/YESngNY/petition.html

We are still in contact with numerous gas companies.  As you can imagine, companies are hesitant to make a move without assurance that they will be able to get drilling permits. This link to an article in this week's paper where the governer wants to double marcellus production is a positive indicator that NYS will move forward. http://www.pressconnects.com/apps/pbcs.dll/article?AID=2009912150357   Companies are pleased to hear that news.  Below is a response by Chesapeake Energy and another article showing democratic support for drilling.

Chesapeake Energy issues statement lauding N.Y. Gov. Paterson's 10-year energy plan
Published: December 17, 2009
Dave Spigelmyer, Chesapeake Energy's vice president of Government Relations for the company's Eastern Division and the first vice chairman of Pennsylvania's Marcellus Shale Committee, issued the following statement Wednesday regarding N.Y. Gov. David Paterson's announcement Tuesday of a 10-year energy plan for the development of the New York portion of the Marcellus Shale:

We are gratified that Governor Paterson's 10-year energy blueprint released (Tuesday) spotlights natural gas as an important contributor to solving the state's energy needs. Safe and responsible drilling in the Marcellus Shale in the Southern Tier of New York represents an historic economic opportunity for the citizens of this region, who have been suffering through extremely difficult economic conditions that pre-date the recession.

To date, Chesapeake has paid out more than $1 billion to natural gas leaseholders in both Pennsylvania and New York. We began developing our leasehold in Pennsylvania in 2008, creating jobs, producing clean-burning energy, reducing the need to import fuels from other states and foreign countries and, importantly, have begun disbursing royalty payments to local mineral owners for their share of the energy production.

Furthermore, in 2009 alone, we have invested an additional $100 million into the local economy in Pennsylvania and given nearly $500,000 to non-profit organizations in the communities in which we are engaged. We look forward to our continued collaboration with New York's regulatory teams, as well as business leaders, community groups and elected officials to collectively reach a solution that will open up natural gas drilling in New York, allowing all New Yorkers to benefit from this abundance of clean, affordable and local resource.

Like Governor Paterson, Pennsylvania Governor Ed Rendell has embraced responsible Marcellus natural gas development from the outset. Today, the energy security and economic benefits are being realized across the Commonwealth. In Pennsylvania, Chesapeake's direct employment has risen from 220 employees in early 2009 to 876 today - excluding thousands of contract workers who support our operations.

Chesapeake Energy Corporation is one of the leading producers of natural gas in the U.S. Headquartered in Oklahoma City. The company's operations are focused on the development of onshore unconventional and conventional natural gas in the U.S. in the Barnett Shale, Haynesvile Shale, Fayettevile Shale, Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and East Texas regions of the United States. Further information is available at www.chk.com.
This article was submitted by Chesapeake Energy.

House Democrats to EPA: Frac Study Should Be Based on Science, Not Hyperbole
Letter to EPA from 22 House Democrats urges “systematic, scientific” approach to studying HF

WASHINGTON – Any agency-led study of a key technology for safely accessing America’s abundant reserves of shale gas should use a “systematic, scientific approach that ensures transparency, accuracy and validity.” That’s the message that 22 Democratic members of the U.S. House delivered to EPA administrator Lisa Jackson this week, as her agency reportedly prepares to undertake its second comprehensive study of hydraulic fracturing in five years.

“In some ways, a letter like this wouldn’t seem necessary,” said Lee Fuller, director of Energy In Depth, a coalition of independent oil and gas producers formed earlier this year. “EPA should understand its mandate, and be prepared to execute it in a way that ensures its course of study is science-based, peer-reviewed, and informed by the knowledge and experience of experts in the field.

“We have every reason to believe it does, and it will,” added Fuller. “This letter simply articulates that expectation, and more important, shows that congressional support for the safe and responsible development of American shale gas is not a partisan affair.”

After five years of exhaustive research on the environmental performance of hydraulic fracturing, EPA released its study on the subject in 2004, concluding that the half-century-old technology “poses little or no threat" to drinking water supplies. Although no material changes to the underlying technology have been made since then, activities in opposition to fracturing have increased substantially among anti-energy activists, who have rightly identified and targeted the technique as the key to unlocking massive, job-creating natural gas resources from shale deposits all across the country.

The letter to Administrator Jackson, signed by lead-author Rep. Gene Green (D-Texas) and 21 of his Democratic colleagues in the House, comes on the heels of recently passed appropriations legislation calling on EPA to re-examine several key issues surrounding the use and performance of hydraulic fracturing. An electronic copy of the letter can be downloaded here; its text is available below.

December 15, 2009

Dear Administrator Jackson:

 The Department of the Interior, Environment, and Related Agencies Appropriations Act for Fiscal Year 2010, signed into law on October 30, 2009, contains funding for carrying out the Environmental Protection Agency’s (EPA) critical mission to protect human health and the environment. Pursuant to that mission, the conference committee’s report requested that the EPA conduct a study of hydraulic fracturing.

Specifically, the report states that the EPA is to “carry out a study of the relationship between hydraulic fracturing and drinking water, using a credible approach that relies on the best available science, as well as independent sources of information.” We believe that this study should use a systematic, scientific approach that ensures transparency, accuracy and validity, so as to allow the EPA and Congress to properly evaluate the environmental performance of hydraulic fracturing.

We recommend that the EPA follow several key criteria. First, the study should rely on accepted quality assurance guidelines. The EPA should develop a reasonable and transparent study design consistent with its 2004 study and have the results properly peer-reviewed by qualified experts in accordance with standard practices. The study should also draw on the knowledge and experience of experts in hydraulic fracturing, including those in the Department of Energy, the U.S. Geological Survey, and state regulatory agencies. The EPA should make the study’s results available to interested members of the public for review and comment prior to finalizing them.

Second, the EPA should fully take into account previous studies on hydraulic fracturing by federal or state governmental agencies, councils, commissions or advisory committees. For example, given the significant effort associated with the 2004 EPA study, the agency should consider that study’s conclusions on hydraulic fracturing and utilize a phased approach when determining whether additional review is warranted.

Last and most importantly, the study should be based on well-recognized principles of risk assessment to determine whether individuals are exposed to substances in the hydraulic fracturing process at levels considered harmful to human health.

Thank you for your consideration and we look forward to working with you to develop America’s energy resources in the most environmentally-sound manner possible.

Sincerely,
Rep. Gene Green (D-Texas), Rep. Dan Boren (D-Okla.), Rep. Eddie Bernice Johnson (D-Texas),Rep. Jim Costa (D-Calif.), Rep. Solomon Ortiz (D-Texas), Rep. Sheila Jackson Lee (D-Texas), Rep. Martin Heinrich (D-N.M.), Rep. Mike Ross (D-Ark.), Rep. Walt Minnick (D-Idaho), Rep. Charlie Gonzalez (D-Texas), Rep. Al Green (D-Texas), Rep. Earl Pomeroy (D-N.D.), Rep. Silvestre Reyes (D-Texas), Rep. Charlie Melancon (D-La.), Rep. Henry Cuellar (D-Texas), Rep. John Tanner (D-Tenn.), Rep. Jim Matheson (D-Utah), Rep. Ciro Rodriguez (D-Texas), Rep. Harry Teague (D-N.M.), Rep. Chet Edwards (D-Texas), Rep. Parker Griffith (D-Ala.), Rep. Ruben Hinojosa (D-Texas)

CONTACT YOUR REPRESENTATIVES-
Let your representatives know how you feel about gas drilling.

There is a list of state and local representatives and also sample letters for you to use at the following site:
http://coalitionconnection.com/OneVoice.html

VIDEOS ON GAS DRILLING-
Energy in Depth has videos on youtube at the floowing link: http://www.youtube.com/user/EnergyInDepth#p/u

FROM IOGA -

Please sign the petition in favor of clean, safe, drilling of the Marcellus.  Notify your friends and family.
Over the last few months, IOGA of NY members have been working hard crafting letters to the editors, op-eds, calling, lobbing, testifying, emailing, and literally driving from one end of the state to the other. The reason: to have IOGA of NY’s voice heard by New York decision makers and the public regarding the benefits of natural gas exploration. But they are not hearing us and we need your help! We are expanding our current efforts to counter the obstructionists and environmental extremists fixated on ending our quest to expand exploration in the Marcellus Shale.

Here’s how you can help!
We know you need the tools to do this – so we’ve built a toolbox.  On the website – www.iogany.org  – and the blog site – www.marcellusfacts.com – you will find posted stockpiled testimony, brochures, other educational materials and a new e-advocacy section, where you can send email messages to officials and sign a petition in support of natural gas exploration. 

Here is a direct link to the online petition: http://www.PetitionOnline.com/YESngNY/petition.html

We need all of you to “bang the drum" and remind our elected officials that the Marcellus formation is an opportunity that is knocking – and knocking hard.  Please share the links above with family, friends, co-workers, and coalition members.
The time to act is now!

Lastly keep your ears tuned to the local radio stations! New radio advertisements touting the benefits of natural gas as a clean and efficient fuel source will begin today.

Thank you in advance for your assistance.

Independent Oil & Gas Association of New York (IOGA of NY)

FROM EID -

It's Up to you, New York
EID launches new online feature encouraging New Yorkers to comment on draft DEC natural gas plan

 Washington, D.C. – Should the state of New York finally put in place the regulations needed to convert the potential of clean-burning natural gas from the Marcellus into the reality of thousands of new, high-wage jobs for New Yorkers? That’s the question the Department of Environmental Conservation (DEC) put before the state’s residents in October, and it’s one the Energy In Depth coalition is encouraging the public to respond to with the help of a new online feature launched this afternoon.  

 Available at EnergyInDepth.org, the site will now carry a New York-specific page with links and information on the draft DEC regulatory plan, along with a sample letter and submission form that residents can use to quickly and easily make their views known in Albany. The comment period is slated to expire on December 31, leaving little more than three weeks for New Yorkers to stand up and defend a plan that balances the economic future of the state with the environmental imperatives of safe water, clean air, and open spaces.

"Nearly 190 years of producing clean-burning natural gas in New York has demonstrated that we can do it safely, efficiently, and in a manner that creates jobs and revenue for those who live here,” said Brad Gill, executive director of the Independent Oil & Gas Association of New York. “With the state’s unemployment rate at nine percent, there’s never been a more critical time to leverage our homegrown resources into economic opportunities for the future. The DEC plan envisions a future in which that work can take place, and sets out the rules, standards and regulations needed to protect our environment while we’re doing it.”

Coming in at an overwhelming 804 pages in length, the DEC draft plan was released in September after nearly three years of study and research by the agency. If approved, it would allow the state to proceed one step closer toward the future possibility of exploring the prolific Marcellus Shale formation, an 8,000-foot-deep reserve that some researchers estimate could hold more than $1 trillion-worth of clean-burning, job-creating natural gas. 

“The draft DEC plan ranks among the most aggressive and comprehensive regulatory proposals ever introduced,” said Lee Fuller of Energy In Depth, a coalition of small and independent energy producers formed earlier this year. “Remarkably, some of the same interest groups that claimed to play such a prominent role in shaping it are now working tirelessly to defeat it – aware that the absence of a workable regulatory framework is tantamount to the defeat of even the most responsible, tightly-regulated exploration.”

 For more information, please visit EnergyInDepth.org.

To navigate directly to the EID’s comment submission page, click here.

 READ MORE

• Take Action II: IOGA NY Comment Submission Form
• Study: Potential Economic Impacts from Natural Gas Production in Broome Co., N.Y.
• Press Release: Draft Plan Released by Gov. Paterson a Step in the Right Direction for NY
• GWPC Study: State Oil and Natural Gas Regulations Designed to Protect Water Resources
• Issue Alert: Sign of the Times
• Graphic: What’s In Frac Fluids?

FROM THE NEW YORK TIMES-

Another article appeared in the NY Times.  It talks about the good and potential bad associated with drilling.  Please be aware that there is alot of false information in this article.  Much has changed in recent years like the fact that many toxins like Benzine are no longer used in the frac process.  If you find something in this or any article that concerns you, please look into it a little more and do some fact finding.  What you will find is that much of the info in the news is skewed to help sell papers.

http://www.nytimes.com/2009/12/08/business/energy-environment/08fracking.html?emc=eta1

FROM THE STEERING COMMITTEE-
Hello all. We just wanted to let you know that our coalition was mentioned in the Washington Post Newspaper article below.
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/02/AR2009120204305.html?waporef=ak

Amd here is the article:

An energy answer in the shale below?
New technology opens vast stores of natural gas, and the land rush is on
By Steven Mufson/ Washington Post Staff Writer/ Thursday, December 3, 2009

The first time Chesapeake Energy tried to buy mineral rights from Diana Whitmore, a 74-year-old retired real estate broker in southern New York, it offered her $125 for every acre of land plus a 12 percent royalty on whatever natural gas it extracts.

Nearly two years later, she's still holding out. Along with hundreds of other landowners, she has joined a coalition that is negotiating with nine oil and gas companies. The latest offers in the area are running as high as $5,500 an acre with 20 percent royalties.

"It's what's really going to turn this whole place around," said her son Daniel Fitzsimmons, who has since helped form the Binghamton Conklin Gas Lease Coalition.

This corner of the state is at the forefront of an old-fashioned land rush that has implications far beyond Conklin, N.Y. Oil and gas companies are vying to stake out territory where they can tap natural gas trapped in shale rock. Just a few years ago, the industry didn't have the technology to unlock these reserves. But thanks to advances in horizontal drilling and methods of fracturing rock with high-pressure blasts of water, sand and chemicals, vast gas reserves in the United States are suddenly within reach.

As a result, said BP chief executive Tony Hayward, "the picture has changed dramatically."

"The United States is sitting on over 100 years of gas supply at the current rates of consumption," he said. Because natural gas emits half the greenhouse gases of coal, he added, that "provides the United States with a unique opportunity to address concerns about energy security and climate change."

Recoverable U.S. gas reserves could now be bigger than the immense gas reserves of Russia, some experts say. The Marcellus shale formation, stretching across swaths of Pennsylvania, New York and West Virginia, has enough gas to meet the entire nation's needs for at least 14 years, according to an estimate by two Pennsylvania State University experts. Just in Broome County, N.Y., where Fitzsimmons lives, shale gas development could create $15 billion in economic activity, according to consultants hired by the county.

The country is carpeted with shale gas plays, including the Barnett in Texas, Fayetteville in Arkansas and Haynesville in Louisiana. Since 2000, gas from shale has grown from less than 1 percent of the nation's production to about 10 percent, according to the consulting firm PFC Energy, and it's picking up fast.

That's changing the energy and economic landscape from Broome County to the Gulf of Mexico. It could mean lower prices and reassurance to homeowners who heat with gas, or towns and companies with vehicle fleets running on the fuel. As winter begins, the price of natural gas is about a third of the level it was 14 months ago. Storage facilities are bursting.

With new supplies, the country will be less vulnerable to disruptions from Gulf Coast hurricanes and need to rely less on imports. Already, deliveries of liquefied natural gas from places like Qatar, Nigeria and Trinidad are down 58 percent in 2008, idling costly U.S. terminals.

The prospect of new gas supplies at stable prices is also transforming debates over climate change. It deals another blow to proposals for new coal plants. And because gas plants can be switched on and off quickly, unlike coal and nuclear, natural gas could supplement wind and solar power facilities, whose output varies with the weather.

"Natural gas can serve as a bridge fuel to a low-carbon, sustainable energy future," said former Colorado senator Timothy Wirth, now head of the U.N. Foundation. Indeed, this year, coal use is down about 13 percent, while electricity demand has fallen only 5 percent and natural gas use has remained about steady.

But the prospect of widespread shale gas drilling is also driving wedges in the environmental community. Many environmentalists have sounded alarms about the chemicals drillers use to fracture the rock and the danger of natural gas or other substances contaminating water supplies. A video posted on the Web shows a man in Fort Lupton, Colo., lighting a fire with the tapwater in his kitchen sink -- although it isn't clear what caused that problem.

Residents of New York City, which draws drinking supplies from a large watershed that reaches up to the Catskill Mountains, have protested, and Chesapeake Energy has voluntarily announced that it would not drill in the watershed. Gov. David A. Paterson (D) has declared a moratorium on drilling until the state's Department of Environmental Conservation issues rules, which are open for public comment. A raucous meeting in Manhattan last month ended before even a third of the people who wanted to comment got a chance to speak.

"This is probably the biggest thing to happen to the state of New York since the initial clearing by settlers," said Wes Gillingham, executive director of the Catskill Mountainkeeper.

In north Texas, some people are also wondering whether drilling in the Barnett shale is to blame for a series of barely perceptible but highly unusual earthquakes now being investigated by geologists.

Yet other environmental groups favor developing gas to displace coal. "There are legitimate concerns that need to be addressed," said Bruce Nilles, a lawyer at the Sierra Club. But, he added, new natural gas supplies could be a "game-changer" in the battle against coal plants.

Nilles said New York's 20 coal plants largely burn Appalachian coal from areas with mountaintop removal. "The status quo means continuing to destroy the oldest mountain range in the country," he said.

Credit for discovering that gas could be economically extracted from shale generally goes to George Mitchell, former head of Mitchell Energy. In the early 1980s, as the company's production was declining, Mitchell and his geologists started experimenting with "hydraulic fracturing" -- blasting underground layers of shale with a mixture of water, chemicals and sand to crack the rock and get gas flowing out of it.

"Mitchell had hired an investment banking firm in 1999 to see if anyone wanted to buy them," recalled Larry Nichols, chief executive of Devon Energy. "Devon and everyone else looked and said, 'No, that technology doesn't work.' We, like everyone else, turned up our noses."

Three years later, Devon paid $3.1 billion to acquire Mitchell. It combined hydraulic fracturing with horizontal drilling, which enabled a single well to turn, follow a seam of shale for up to two miles and produce much more gas. Now a quarter of the natural gas produced by Devon, a $30 billion company, comes from shale.

Historically, most of the natural gas produced in the United States came from relatively small pockets in porous rock. The oil and gas industry has been "eternally searching for relatively small traps," Nichols said. Shale, by contrast, is widespread and hard to miss. "Devon has drilled 4,000 wells in the Barnett and is planning 4,000 more, at least. And we have not drilled a dry hole," Nichols said.

The stakes are high for companies and consumers, as well as the environment. Shale gas has already added billions of dollars to the value of companies like Devon, but it unsettles people living in scenic portions of Pennsylvania and New York, which were the first places oil was discovered but which have been relatively undisturbed for decades.

Some people are just happy about the money. Fitzsimmons, for example, suffers from arthritis and has a nonverbal autistic 18-year-old son. He and his family own 185 acres. "If you're a property owner, it's amazing," he said. "Even some of the ones who are members of these organizations that are supposedly against it -- when it comes time to get a check on their property, suddenly they're all for getting the check."

The following is a letter that was snail mailed out to your fellow members who do not have email.  If you know a member that does not have email please make sure they have seen this. 
We wanted to give you a quick update on our current status. 

The DEC held its local hearing on the draft SGEIS. Both the pro gas and the anti’s were present but there were definitely more landowners in favor of gas drilling.  All of the politicians who spoke were in favor of safe drilling.  Written comments will be accepted by the DEC through December 31, 2009.  We encourage you to show your support by sending your comments in favor of the draft SGEIS to the DEC. Comments can be submitted by email at dmnsgeis@gw.dec.state.ny.us or traditional mail (Attn: dSGEIS Comments, Bureau of Oil & Gas Regulation, NYSDEC Division of Mineral Resources, 625 Broadway, Third Floor, Albany, NY 12233-6500).

We are currently working with 8 gas companies.  Some are further along in negotiations with us than others but we are working to get everyone up to speed.  Pennsylvania still has an advantage over New York because they are allowed to drill.  We have heard some people say that our lease is an obstacle to leasing in our area. It is not. Based on our discussions with companies, we will be able to negotiate a landowner friendly lease just like groups have accomplished in Pennsylvania.  The major obstacle to a deal is the willingness of gas companies to invest in New York given our current regulatory climate.

We continue to receive lease offers from companies but we feel we must negotiate all of the terms of the offer,  financial and lease, before we present them to the members. We have a new company coming into town in early December to meet the with negotiation team.  They have already seen our maps and lease and have liked what they have seen so far.

As many of you know, Llama Horizontal Drilling Technologies, Inc., its owner Dean Lowry and their landman Graham Cox have been soliciting our members. An article about Llama appeared in the Press and Sun Bulletin on November 22, 2009. If you didn’t read it, we encourage you to go to http://www.pressconnects.com .  You can find the article entitled “Marcellus Shale: Three power brokers take control of unleased land”  in the Natural Gas Quest section.  The article makes the important point that the coalitions are working in the best interest of its members.  Llama is working for its best interests.  

Mr. Lowry has stated that his company doesn’t have the money to sign us up directly, that his company doesn’t want to drill and it doesn’t want to build any infrastructure for us.  In fact, even tough its name is Llama Horizontal Drilling Technologies, it has no authority to drill oil and gas wells in the State of Texas.  Llama simply wants to act as an exclusive “broker” .  By signing his agreement you agree to lock in with him for a minimum of 30 days that can be extended to 90 days.  The termination provision is unclear but it does not appear to be automatic.  It says: “Landowners shall be privileged to terminate this Agreement.”  It then goes on to say that upon the termination landowners shall be entitled to the  cancellation of the lease. What happens if the lease is not returned or cancelled?  Peter Hosey’s firm, Jackson Walker, is currently involved in a lawsuit on behalf of Texas landowners to terminate an exclusive broker agreement. Not only did the broker fail to deliver as promised but now the landowners have to pay attorneys fees just to get out of the deal.

These broker arrangements have been seen in other states. They all start out the same -  a lot of hype and promises of big numbers. They miss the first deadline and ask for an extension and then more extensions. Eventually landowners realize they have been wasting time talking to a broker when they should have been talking to gas companies. 

We must caution landowners who sign Llama broker’s agreement that they will not be able to accept an offer presented by our coalition during the period of the Llama agreement.

Concerned members of our coalition have contacted the steering committee about a few neighbors/residents acting like "landmen" going door to door to push the Llama brokerage offer.  We are hearing that someone is suggesting that specific members of our group have signed with Llama even though they have not.  Someone else said that our member, the Hawleyton United Methodist Church, had left our coalition and had gone with the Llama deal.  This is FALSE.  This is a disgusting landman trick, using religious bonds as a scare tactic.

They want you to believe that you will be left behind.  They want you to fear Compulsory Integration.  Our coalition will not leave you behind.  We suggest that if you hear a rumor like this please ask that person directly.  We have debunked many rumors by going straight to the horse's mouth.  If you don't feel comfortable doing that then please let a steering committee member know and we will do the leg work, find the facts for you and report the truth.  Below is the response we received when we checked on the status of the church.

"It has come to my attention that there is a rather disturbing rumor being spread by some local Town of Binghamton residents that I, as a representative for the church, am on the fence about signing on and taking the Llama deal. As a member of the steering committee of the Town of Binghamton/Conklin gas coalition I know how much work has been done to get us where we are today. I know we have a lease that is a very good starting point for negotiating with ANY gas company and that we are getting very close to having an acceptable deal offered. Although our lease very much looks out for the landowner’s interests it is also one that is very palatable to the gas companies. There are some very major flaws with the Llama deal that would preclude me from even considering entering into this venture even if I was not a member of the TOB/Conklin coalition. I think the structure of the deal will prevent those who sign on from maximizing their potential income as well as being too costly. Hopefully this email can put the rumor to rest. Hawleyton United Methodist Church is NOT pulling out of the coalition and is NOT at all interested in the Llama deal. If you have any questions do not hesitate to contact me." - Rick Kauffman

We feel it is important to look at every option and leave no stone unturned but the committee would never recommend this kind of agreement.  As stated in a previous email  “After talking to and researching both of them we feel that their past practices, experience and financial backing raise many questions…...  We feel that the current offers that we are entertaining are not only financially better but they are with much larger companies.  The companies we are currently negotiating with have the needed technology and financial backing to not only sign us up but to also build the needed infrastructure to the get the gas to market, maximize production and create royalties.  Please be wary of any company or broker that wants a percentage of your royalty.”

As always, we will stay in touch with you as there are new developments. If we don’t talk to you soon, we wish you all a Joyous Holiday Season and a Very Happy New Year.

FROM THE STEERING COMMITTEE - 11/6/09 -

Please pass this information on to any member that doesn't have email.

We understand that Llama is still trying to convince landowners to sign it's lease and agreement.  The Llama agreement gives Llama the exclusive right to negotiate for your property for a period of time which can be extended up to 90 days.  We must caution that if you sign the Llama brokers agreement, you will not be able to accept an offer presented by our coalition during the period of the Llama agreement.

We also want to give you a quick update.  We had continued negotiations with a large gas company today and things went very well.  Please be aware that our lease is not holding up a deal.  We are being told that possible delays would be due to New York State and their current stance on drilling.  We are also now dealing with 8 companies because on Friday we were contacted by a major gas company and they want to talk.  They realize that they are getting into the game a little late and have some catching up to do.  Their legal team is currently reviewing our lease and their geologists are analyzing our maps.

FROM THE STEERING COMMITTEE - 11/6/09 -

FROM THE STEERING COMMITTEE - 11/5/09 -

As many of you know the State has delayed drilling once again in New York State.  After calls from lawmakers and environmental advocates the state Department of Environmental Conservation has decided to extend the public comment period on natural gas drilling, in the Marcellus Shale, which runs under parts of Central New York.  The DEC announced today it will accept comments until Dec. 31. The previous cut-off date was Nov. 30. 

AT GILLIBRAND’S URGING, NYS TO EXTEND PUBLIC COMMENT PERIOD ON MARCELLUS SHALE DRILLING
Washington, DC – At the urging of U.S. Senator Kirsten Gillibrand, a member of the Senate Environment and Public Works Committee, New York State today extended the public comment period on the natural gas drilling in the Marcellus Shale through the end of the year. Senator Gillibrand released the following statement:

“I am pleased that New York State has extended the comment period on drilling in the Marcellus Shale through the end of the year. While this proposal holds tremendous economic opportunity for New York, our quest for new sources of energy and growth cannot come at the expense of clean air and safe drinking water for New Yorkers. I commend New York State for allowing the public appropriate time to discuss the proposal.”

Democratic Rep. Maurice Hinchey of New York introduced legislation (H.R. 2766 (pdf)) this summer that would require drilling companies to comply with the Safe Drinking Water Act and disclose the chemicals used in their hydraulic fracturing processes. Charles Schumer of New York introduced companion legislation (S. 1215 (pdf)) in the Senate. Neither bill has moved out of committee.

State Senator James L. Seward (R/C/I – Oneonta) today applauded the Department of Environmental Conservation’s (DEC) extension of the public comment period on the draft Supplemental Generic Environmental Impact Statement (SGEIS) for natural gas drilling applications.

“I am pleased the DEC has agreed to extend the public comment period on the draft SGEIS until the end of the year,” said Senator Seward. “The proposed regulations are over 800 pages long, and it is reasonable to allow local government leaders and homeowners some extra time to review the document that will be used to regulate energy and environmental practices for years to come.”

Seward also reaffirmed his call for additional public hearings on the draft SGEIS.
“It is imperative that local citizens and governments are afforded every possible opportunity to comment before the regulations are finalized,” Seward added. “With only four hearings scheduled, I feel many will be unfairly left out of the process.”

Seward has written a letter to DEC Commissioner Alexander “Pete” Grannis requesting additional hearing sites, including Oneonta. Seward says there is a demonstrated local interest in the topic and additional hearings should be scheduled to accommodate concerned citizens. At this time, the nearest public hearing site is more than an hour’s drive for many of his constituents.

“Utilizing the tremendous energy resources in the Marcellus Shale formation could play a significant role in helping us to reduce our dependence on foreign oil while at the same time providing a boost to the local economy. We must make sure, however, that our local governments are properly informed of drilling activities every step of the way, and that our roads and water supply are properly protected,” Seward concluded.

FROM THE STEERING COMMITTEE - 11/4/09 -

This is one of the best videos that clearly explains in layman's terms horizontal drilling and the process of multiple fracturing. It also illustrates how the process protects the environment and well water tables from contamination. http://www.technologyreview.com/video/?vid=439

This one is pretty good too; it's a time lapse video showing how a single multi-ton drilling rig is moved hydraulically around a single location to produce multiple horizontal wells to maximize gas production in a limited area.  http://www.technologyreview.com/video/?vid=440

FROM THE STEERING COMMITTEE - 10/30/09 -

URGENT!

Concerned members of our coalition have contacted the steering committee about a few neighbors/residents acting like "landmen" going door to door to push the Llama brokerage offer.  Our coalition has never gone into another coalition territory to try to break up a unified group.  That's not what neighbors do, that is what landmen do.  We wonder what their motives are?  We have always given you the facts and let the people decide.  Over the past few weeks we have actually gained a large amount of acreage in the Town of Binghamton area.  This goes to show that these new members were skeptical of the Llama deal and pleased with our coalition's efforts and progress with the recent 7 gas companies. 

We are hearing that someone is suggesting that specific members of our group have signed with Llama even though they have not.  Someone else said that our member, the Hawleyton United Methodist Church, had left our coalition and had gone with the Llama deal.  This is FALSE.  This is a disgusting landman trick, using religious bonds as a scare tactic.

They want you to believe that you will be left behind.  They want you to fear Compulsory Integration.  Our coalition will not leave you behind.  We suggest that if you hear a rumor like this please ask that person directly.  We have debunked many rumors by going straight to the horse's mouth.  If you don't feel comfortable doing that then please let a steering committee member know and we will do the leg work, find the facts for you and report the truth.  Below is the response we received when we checked on the status of the church.

"It has come to my attention that there is a rather disturbing rumor being spread by some local Town of Binghamton residents that I, as a representative for the church, am on the fence about signing on and taking the Llama deal. As a member of the steering committee of the Town of Binghamton/Conklin gas coalition I know how much work has been done to get us where we are today. I know we have a lease that is a very good starting point for negotiating with ANY gas company and that we are getting very close to having an acceptable deal offered. Although our lease very much looks out for the landowner’s interests it is also one that is very palatable to the gas companies. There are some very major flaws with the Llama deal that would preclude me from even considering entering into this venture even if I was not a member of the TOB/Conklin coalition. I think the structure of the deal will prevent those who sign on from maximizing their potential income as well as being too costly. Hopefully this email can put the rumor to rest. Hawleyton United Methodist Church is NOT pulling out of the coalition and is NOT at all interested in the Llama deal. If you have any questions do not hesitate to contact me."

Rick Kauffman

As always, please contact a steering committee member with any questions, concerns or rumors.

 

FROM THE STEERING COMMITTEE - 10/30/09-

We wanted to give you an quick update.  It seems that the Marcellus meetings in Pittsburgh last week got the attention of more companies.  We have 3 new players that we are working with.  We now have 7 companies interested in our coalition.  Things are heating up.  We will keep you posted.

Below is an email asking a question about the Llama offer. Please remember that we are not entertaining this offer for so many reasons.  It is asked by one of your fellow members and it is answered by our Lawyer:

E-mail from member asking question - As you are probably aware a group is setting up to sign a brokerage lease agreement with Llama.  I was invited to another "barn meeting" where they put forth their lease agreement that they intend for Llama to broker on their behalf.  One reoccurring theme during this week is the presentation by member of this group and their voiced "concern of neighbors becoming compulsory integrated" into their deal and how this group is "looking out for ouu interests so we don't get hurt".  But I am concerned about the compulsory integration concept, and get the feeling it is being used incorrectly (wilfully or not I don't know).  Say they get a gas company to sign their lease agreement, and that the TOBC does not have an agreement with anyone in the near future, am I or my neighbors "at risk" of compulsory integration if they choose to drill nearby? Or is it incumbent upon the gas company to arrange to work out a fair lease deal with surrounding properties, maybe the even the same agreement they have with them?

Our attorney's response - While compulsory integration is possible, it only happens when it's time to drill.  As we know, you can't drill Marcellus wells in NY.  We won't see any drilling in our area until next year. The Llama lease does not have a drilling commitment like other leases so it's hard to know when, if ever, Llama will drill.  Many other leases have been signed in your area with companies like Chesapeake and Fortuna. It is most likely that other companies will still be willing to sign even if there is a Llama deal.

I have reviewed the Llama lease.  I suggest that you compare it to a 22 page lease that is currently being signed in Friendsville.  You will see that the Friendsville lease is superior.  It is also similar to the lease we are using for our coalitions. In fact, I see no reason why people in your area would sign a sub par lease since your geology is nearly the same or better than Friendsville's. 

 http://www.thefriendsvillegroup.org/nylease.pdf 

Here are a few of the problems we see with the Llama lease:    

Royalty - proportional share of taxes are deducted (they were not deducted from Royalty in Friendsville)

freely assignable which means you will have no power to reject assignments to companies even if you feel they do not have the necessary reputation, technological experience, financial resources or environmental safety record necessary to do the work properly

poor reclamation and pipeline provisions

no leased premises rules

no gas measurement provision

reimbursement of attorneys fees only on royalty claims, not other claims

no minimum royalty

no offset provision

no drilling commitment

compressors are not prohibited

I still have trouble figuring out why anyone would take a chance on this kind of exclusive deal without knowing who the final oil and gas company will be.  With the Llama deal, you will be obligated to take a lease if it comes during the 30/90 period even if it's with a company with the worst possible environmental record.

FROM THE STEERING COMMITTEE - 10/19/09 -

FROM THE STEERING COMMITTEE - 10/16/09 -
The steering committee is aware that Llama Horizontal DrillingTechnologies, Inc. (“Llama”)  is trying to convince area landowners to sign brokerage contracts. We understand the terms of the offer to include a payment to Llama of 20% of any amount over the current street offer of $5,750 an acre for a 7 year lease and a  20% share of your royalty for any royalty over 20%.  The steering committee and legal team believe the potential negative consequences of this offer far outweigh the benefits.

Please understand that Llama is not making a commitment to pay bonus or royalty. They are only committing to shop for lease offers from other companies while locking up landowners in an exclusive arrangement. You should also understand that $5,750 is not a new proposal. Friendsville closed at $5,500 an acre for the first 5 years. It was immediately beat by other companies with offers of $5,750 for the first 5 years.  Another coalition in Wyoming County received $5,750 per acre for the first 5 years.

The steering committee and your legal team believe the Llama agreement gives Llama the exclusive right to negotiate for your property for a period of time which can be extended up to 90 days.  We also believe that you will be unable to accept other offers that you receive during the exclusive time period and that you may be obligated to take a Llama deal even if other companies give you or our coalition a better offer.

Our coalition and most other coalitions in the area have rejected any proposals to sign broker agreements.  Efforts by the Lease Auction House and the exclusive broker agreement Kirkwood signed earlier this year have all failed.  Most coalitions only ask landowners to commit to a deal after they have had an opportunity to review the offer.  The same should be true for Llama or any other company.  Let them bring an actual deal to the table and then you can decide whether to accept.  The coalitions were formed to protect landowners.  In our opinion, no coalition should be supporting a deal that asks landowners to forfeit a share of their bonus and/or any percentage of their royalty. We are not sure what Llama is telling people with respect to its history. We do know that Llama Horizontal Drilling Technologies, Inc. was incorporated in Texas on May 21, 2008. Our research indicates that Lowry Lease and Mineral Acquisitions Incorporated is another Dean Lowry company that was filed on October 6, 2004 and is currently not in good standing in the State of Texas as of August 25, 2006 (according to the Texas Secretary of State).  Llama was active in our area last year. It is our understanding that Llama or its affiliate, made lease offers that it failed to close.

Some of our members have asked about our progress. It is no secret that we are in negotiations with 4 major companies.  $5,750 per acre for the first 5 years and 20% royalty is the minimum we are currently looking at.  We have set up the best possible scenario for the group - several companies competing for your business.

Please remember that you should not make any decision without first discussing it with an attorney. If any gas company, broker or individual approaches you please ask yourself and them the following questions:

Many of our members (including steering committee members) have also been contacted by a landman with Elexco.  Elexco is working for Fortuna energy. The Elexco landman offer is less than offers that we are currently entertaining.  Please keep in mind that our coalition is currently negotiating bonus payments upfront.  We expect to receive a bonus upfront and a total package comparable or better to current offers. Many refer to our area as being part of a world class gas play.  Landowners need to make wise decisions about how we lease our valuable resource.  We may only have one chance to get it right.  

As always, we urge you to contact your steering committee members if you have any questions.

FROM THE STEERING COMMITTEE - 10/11/09 -
We just wanted to let you know that 5 of your steering committee members attended the barn meeting on Friday.  We would like to thank Dean Lowry, President of Llama for attending and the Edwards for hosting.  The meeting was well over 2 hours long so we will try to condense the information in this short email.  Mr. Lowry stated that his company didn't have the money to sign us up directly, that his company didn’t want to drill and they didn’t want to build any infrastructure for us.  What he did want to do is act as a “broker” for us.  Mr. Lowry’s plan goes like this.  He feels that he can get a deal better than the current street offer of $5,750.  If he gets more than $5,750 then he wants 20% of every dollar over and he also wants 1% of your royalty.  By signing his agreement you agree to lock in with him for a minimum of 30 days that can be extended to 90 days.  So technically he could get you a deal for $5,751 for which you would receive 80 cents more than the street offer. However, he would own 1% of your royalty forever.

We feel it is important to look at every option and leave no stone unturned but the committee would never recommend this kind of agreement.  As stated in a previous email  “After talking to and researching both of them we feel that their past practices, experience and financial backing raise many questions…...  We feel that the current offers that we are entertaining are not only financially better but they are with much larger companies.  The companies we are currently negotiating with have the needed technology and financial backing to not only sign us up but to also build the neededinfrastructure to the get the gas to market, maximize production and create royalties.  Please be wary of any company or broker that wants a percentage of your royalty.”

Another interesting thing is that the Vestal coalition was there. It became known that they lost many of their large land parcels to the Friendsville groups offer. They are trying to take our larger parcels along the Vestal border to make their coalition more attractive to their suitors. So basically they are trying to dilute our group and make us less attractive to gas companies so that they can be more attractive. We do not see how diluting our group could help the Binghamton / Conklin coalition in any way. We will continue to give you the truth and as much info as we legally can

FROM THE STEERING COMMITTEE - 10/8/09 -
Below is a message from our lawyer.  Please be wary of any deal that would take away a percentage of your royalty and/or a percentage of your money.  If you have any questions about the following message, let us know.

Attorney Letter:
I understand that there may be companies or landmen offering to broker a lease deal for your members.  Your members should be extremely careful about these proposals. The major risk in these agreements is often the exclusive nature of the arrangement which binds a landowner to the broker for a period of time. For instance, when the Hess/ Seneca deal was proposed, I spoke with several people who were concerned that agreements they signed would either prevent them from taking a deal or cause them to incur additional fees for the transaction.  I am aware of a broker who said he spoke with Hess and that any deal his landowners made with Hess and the Binghamton/Conklin group would be subject to his brokerage fee.    

Your coalition has always rejected any proposals to sign a broker agreement.  The basic concept has been that landowners are only committed if they like the deal proposed by the coalition.  

I understand that your members would like more information about your progress. However, as you know, you can not disclose the details of your offers, especially at this stage of your negotiations.  You clearly have landmen and other parties working against the best interests of your group. The best that you can do is hope that your members trust you when you tell them that it would be unwise to enter into a broker agreement this close to a major coalition deal.
Scott R. Kurkoski- Levene, Gouldin & Thompson, LLP

FROM THE STEERING COMMITTEE - 10/7/09 -
We have a few things to go over with you.  We are in daily contact with numerous gas companies and they are currently reviewing our landowner friendly lease.  We also know of two more gas companies that are back in the area, Llama and Inflection.  The Steering Committee and Legal Team have talked to both of these companies and we feel it is not in the best interest of the coalition to proceed with Llama or Inflection.  After talking to and researching both of them we feel that their past practices, experience and financial backing raise many questions.  In fact when we went to contact one of them, the phone number on their business card had been disconnected.  We feel that the current offers that we are entertaining are not only financially better but they are with much larger companies.  The companies we are currently negotiating with have the needed technology and financial backing to not only sign us up but to also build the needed infrastructure to the get the gas to market, maximize production and create royalties.  Please be wary of any company or broker that wants a percentage of your royalty.

On another note, some of your concerned fellow members have been contacted by a local resident who is trying to get a deal together for a gas company.  We are not sure of his motives but he seems to be working against us.  We can assure you that our steering committee is receiving no monies beyond the monies we receive from a gas lease. We also know that we are working in the best interest of the entire group. We have also heard that he does not want small acreages. Every large company we have talked to has praised us for our contiguous acreage.  All of the reputable companies we talk with love the small acreage because it allows them to create the infrastructure necessary to get the gas to market without having to go to compulsory integration.

We are not telling you what to do, the decision to stay with our group is always your decision and you can change your mind all the way up to signing day.  We just want you to have all the facts and be educated and well informed when making your decision.  Before signing anything please review your options with your personal attorney.  As always please feel free to contact us with any questions or offers.

FROM THE STEERING COMMITTEE - 10/1/09 -
Great news, the SGEIS has finally been released.  Below is a link to an article on it.  Also attached is a link with the actual report.

Click for article on pressconnects.com
Clcik for SGEIS

FROM THE STEERING COMMITTEE - 9/22/09 -
Negotiations are going great and a gas company met with our Lawyer on Monday. Not a dat has gone by without positive movement. We would love to give you all the details but due to confidentially agreements we will be tight lipped in the days to come.  We have come too far to let "loose lips sink ships".  With that said, you will start to hear many rumors about many coalitions including ours.  Please remember, nothing is true or false until you see it in an email from us.  We are hearing many dollar amounts flying around and many rumors forming.  We have always and will always be upfront with you and tell you the truth.  If you hear a rumor please send us an email or call us for clarification / verification. Stay Strong...Stay United!

FROM THE STEERING COMMITTEE - 9/18/09 -
Fortuna Energy contacted our lawyers again today and Seneca Resources called and also expressed a desire to keep negotiations moving forward.  They told us that the environment has definitely changed in the last week. You can say that again!

If you are approached by a Landman please ask for a copy of their lease.  Chesapeake has told the Coalition that they will pull their landmen from the area while the Coalition is negotiating with Chesapeake.  Both the Town of Binghamton and Town of Conklin are asking landmen to get solicitors/peddlers licenses, so if you are approached by a landman, ask to see their license/permit.

Reminder...The Coalition urges members to begin planning for the future. "Planning for Prosperity" will be the topic of a meeting hosted by the Coalition on Wednesday, September 30, at 7:30 p.m.  Partners from Levene Gouldin & Thompson will address the tools needed to ward off threats to "your new-found wealth." Landowners need to know how to protect themselves from the consequences of estate taxes, potential liability from gas and oil operations, and failure to provide for the management of mineral rights in subsequent generations.
Presenters: Scott R. Kukkoski, Kathryn Grand Madigan, Albert Kukol and Heather M. Cornell.
Topics: Perils of Estate Taxes, and Liability, Management and Succession Concerns.   
Place: Susquehanna Valley High School Auditorium.
Date: Wednesday, September 30, 7:30 p.m. @ SVH
There is no charge for all this invaluable legal advice. The Meeting is only for Town of Binghamton/Conklin Coalition members. 

Also, here is an article about a spill in Dimock and the DEP Resonse.
- Thank you, Your Steering Committee

FROM THE STEERING COMMITTEE - 9/17/09 -
Hello all. Our patience, persistence and willingness to stick together is going to pay off.  We just wanted you to know that our negotiations are heating up.  Fortuna Energy went to our attorney's office today to look at our maps, and we had a productive a meeting today with Chesapeake Energy.  Chesapeake has told us that they will pull their landmen out of our area while we negotiate.  If you are contacted by a landman from Chesapeake or Red Sky (subcontracted by Chesapeake) please get his name and let us know so we can contact their office.  Other Landmen are back in the area trying to push a bad land lease.  If you are approached please ask them to get the deal in writing and get a copy of the lease.  If and when you get these please contact us so we can give a copy to our legal team.  We need our lease in place, nobody wants to have waste water injected in their backyard.  If a Landman tells you his lease is the same lease that Friendsville signed, THEY ARE LYING.  Also their lease has blanket easements.  The lease may end after a time frame but easements are FOREVER!  Click here for a link to an article about the Wyoming County group.  On Tuesday they agreed to sign a deal for $5,750 per acre with 20% royalties.  Once again we may need to meet quickly.  We will give you as much advance notice as we can.  Please remember to inform us of offers that you may receive. 
- Thank you, Your Steering Committee

FROM THE STEERING COMMITTEE - 9/15/09 -
Hello all! Just a quick update. We saw a lot of positive action today! We were contacted by 2 gas companies. One made an initial offer today and has requested a sit down meeting with our lawyers this week.

The other company immediately sent a courier to get copies of our maps for review. Our patience is paying off; we see great things ahead!

Some of you may have received a letter from Fortuna Energy via mail. We have been in contact with them since last week, so when we were contacted by members about these letters, we had our attorney speak with Fortuna. Fortuna Headquarters knew nothing about the letter and said the letters would likely not be honored. The Friendsville group is not taking on any new NY land. Now is not the time to make rash decisions. If you receive any paperwork from any gas company, please contact us. We wouldn't want you to sign something that could lock you out of any deal we may get in the very near future.
- Thank you, Your Steering Committee

GREAT NEWS!!! - 9/13/09
Yesterday, we learned of the exciting news in Friendsville. Reportedly, landowners have been offered $5,500 per acre with a royalty of 20%. The bar has been raised again, just as we did with the Hess/Seneca offer.

At our meeting at the Regency, we promised to move forward with Hess/Seneca but to also consider other offers. While we can't desclose the details of those discussions, we have been working towards that goal. I can also say that we have been talking to Fortuna.

The Friendsville news helps us to move closer to the best possible deal for the members of the Binghamton/Conklin group. We expect to be in touch with you soon as there are further developments in out negotiations.
- Scott Kurkowski

ADDITIONAL E-MAIL - We have outgrown our bulk e-mail capacity. Official Coalition e-mails will come from one of the following two gmail accounts: nygaslease@gmail.com and nygaslease1@gmail.com. These are the only two official e-mail addresses for the Coalition.

EASEMENTS ARE FOREVER - Beware if you are contacted regarding pipeline easements. Do not sign a contract without speaking to a competent attorney.

UPCOMING EVENTS -
9/30 - LGT Seminar on Estate Planning, LLCs, etc. (7 p.m. at SV High School)
9/24 - DEIS (the impact study) should be out. The study will have a 40 day comment period

OUR FIRST LINKS -
http://energyindepth.com (contains drilling site diagram and video)
http://safedrillingnow.com (online petition and information from Sen. Libous)
http://pagaslease.com (information from "south" of the border)

PRESSCONNECTS EDITORIALS -
Hinchey Bill Dilutes DEC
Safe Drilling a Goal

CONTACT YOUR LEGISLATORS - Write, e-mail or call your national, state and local representatives. Let them know the feelings of their constituency on these important matters. (Addresses and Sample Letters to Follow week of 9/14)

 

 

The Steering Committe of
The Binghamton Conklin Gas Lease Coalition