Q) I do not have a computer. How can I sign up with the coalition?
A) About half of Tompkins Landowners do not have access to a computer. This is not a problem. Call the Tompkins Landowner Coalition at 607-657-8200 or mail your requests & questions to:
TLC c/o Adams, 1281 Level Green Road, Berkshire, NY 13736
We will happy to mail a membership form to you if you provide us with an address.
Q) What about the saleability of my land, leased versus not leased?
A) This question comes up a lot, it depends on when you desire to sell your property.
TLC can explain some history based on PA, Bradford County; as well as share some legal resources better able to address your individual circumstances. Never forget that a lease is an encumbrance attached to the deed title. You will not ever be told by TLC that leasing is your only option.
It is true that in PA, for a time (12-24 months) local banks were put off by any gas lease. Fact, there is no compulsory integration in PA. It surprises many people in NY to learn that by 2010 Bradford County, PA has 97% of its land under some type of gas related lease without compulsory integration. Local PA banks adapted to this market change, as a practical business matter, by changing policy on loaning. Banks had an interesting challenge, their local money surplus increased dramatically as folks used signing bonuses & royalty money to pay off consumer, construction, and mortgage debts. Quarterly bank balance sheets started to look horrible because so much supply (money) was on hand but their earnings suffered because demand (also known as lending) was not needed or so heavily filtered. Market forces dictated a lending paradigm shift which will happen here as well. If you are going to sell your property in the next couple of years you could get caught in this market transition but it will sort itself out, as history shows.
Here are a couple of legal resources to contact (not a comprehensive list but they are active in our community). Ask about fees before any consultation:
TLC's legal advisor-
Scott R. Kurkoski, Esq.
Levene, Gouldin & Thompson, LLP
450 Plaza Drive, Vestal, New York 13850
Phone: 607-584-5620 Fax: 607-763-9211
E-mail: skurkoski@binghamtonlaw.com
http://www.binghamtonlaw.com
Broad real estate experience, Randy has spoken at several CCE public community events over the years-
Randall B. Marcus, Esq.
Barney, Grossman, Dubow, Marcus & Orkin, LLP
119 East Seneca Street, Suite 400
Ithaca, New York 14850
Telephone: (607) 273-6841
Facsimile: (607) 272-8806
email: rmarcus@bgdmolaw.com
Q) When will drilling start in Tompkins?
A) There are 4 major parts to this consideration:
1. How was a given lease written between the landowner and gas developer? Most leases leave timing to the discretion of the developer. About 40% of Tompkins is under lease.
2. When and where are business decisions for developers. Promising geology, proximity to infrastructure (pipe lines), utilities, sufficient drilling rigs & man power, likely return on investment, these are some of the points developers rank areas on.
3. If the well is defined by the DEC as conventional, permit applications to drill are being reviewed by the DEC now. You can track when a permit was submitted on the DEC web site http://www.dec.ny.gov/energy/1634.html October 19, 2009 is the most recent permit application date on the DEC web site, for Dryden. The DEC did follow through on granting the drilling permit to Anschutz Exploration, well name Cook 1, API# 31109264310000, target formation Black River.
4. Unconventional well permit applications are on hold currently. For the sake of brevity any plan to develop the Marcellus or Utica shale would be defined as unconventional. The DEC is reviewing a supplemental draft which will update the Generic Environmental Impact Statement of 1992 to address new industry practices in these shales. The DEC Minerals Division has indicated that they would like to have the supplement done and ready for the Governor's signature July 1, 2011.
by Linda Adams
Q) Can Landowners request review and update of the lease?
A) I am not a lawyer and none of the following shared response has any legal relevance at all. This response is dialogue only.
There are two directions this question leads me.
1. Landowners may always have their lease reviewed by their attorney. If you have questions about your lease you may unilaterally go to your lawyer for a review of the terms.
2. If a landowner wants to review and update their lease in the scope of gas developer / landowner relationship- yes landowners may contact the gas developer.
I know of successful instances where Ansbro was approached by two different families. Both landowners had agreed to 100% surface rights. Later one family applied for a construction loan. The second family put their property up for sale. A local bank denied the construction loan application. The family wanting to sell discovered potential buyers having trouble getting attractive loans. Banks were handing out refusal because of the total surface lease terms. Ansbro revised the lease so that a 5 acre piece was upgraded to nonsurface. It cost the families some time and $250 to cover administrative costs on the part of Ansbro but Ansbro willingly changed the original lease.
by Linda Adams
Q) I do not want any well pads or other surface disturbance on my property; can I still lease my land?
A) For folks that own 15 acres or less and those that own small disconnected parcels, you are encouraged to lease only your subsurface gas rights. This is sometimes called a non-surface lease.
For example, you own a golf course or vineyard, lease clauses are available for your consideration which accommodates your special case.
For those that own more than 15 acres you are going to answer a fundamental question for yourself – whether you believe drilling can be done responsibly. The answer is going to depend on a lot of things: who is the developer, what does the final negotiated lease contain for terms-protection-compensation-obligation, the formal oversight government is going to have, staffing levels, regulations which are in place, input from your attorney, what is the lease status of property bordering you, etc. You and your family will make a decision, TLC will help get options to you.
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