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Grappling for a gas lease
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| Emma Dell “Frankie” Neiley holds a plaque, which honors her late husband, former Bradford County Airport Authority Chairman Stephen R. Neiley Jr. The plaque was presented to her Thursday by the Bradford County commissioners, and an identical plaque will be hung in the main hangar at the airport, which is named the Stephen R. Neiley Complex. From left: Bradford County Airport Manager Carl Lafy, Stephen R. Neiley III, Bradford County Commissioner Mark Smith, Bradford County Commissioner John Sullivan, Emma Dell Neiley, Bradford County Commissioner Doug McLinko, Bradford County Airport Authority Chairman Ron Somogy and Towanda Area Pilots Association President Chad Wilcox. |
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BY JAMES LOEWENSTEIN
STAFF WRITER
TOWANDA — The Bradford County commissioners said Thursday that they are continuing to negotiate with EOG Resources Inc., which has offered to pay the county $2.4 million to lease the gas rights to the 939.4 acres the county owns.
The commissioners provided an update on the status of EOG Resources’ proposed lease at the commissioners’ meeting on Thursday.
At the meeting, the commissioners also voted to send a letter of support for the proposed designation by the U.S. Department of the Interior of the Susquehanna River (North Branch) Water Trail as a National Recreation Trail.
In addition, the commissioners presented a plaque to the widow of Stephen Neiley, who was the longtime chairman of the Bradford County Airport Authority and who died on April 8.
Gas lease
During the visitors’ remarks section of the meeting, Sheshequin Township supervisor Eric Matthews asked the commissioners to comment on the status of EOG Resources’ proposed lease.
Bradford County Commissioner Mark Smith told Matthews that on Tuesday, the commissioners received some proposed revisions to the lease from EOG. Smith said he has not had a chance yet to review the revisions but did forward them to Bradford County Solicitor Jonathan Foster. The other commissioners also said they had not yet reviewed the revisions.
The commissioners will be meeting with Foster on Monday afternoon to review the revisions to the lease as well as revisions that EOG made to its proposal to locate an underground gas transmission line in Mt. Pisgah County Park.
When the commissioners advertised for bids to lease the gas rights last summer, EOG was the only company that submitted a bid.
After opening EOG’s bid on Sept. 4, and reviewing the bid with the county solicitor, the commissioners had said on Oct. 10 that they found EOG’s proposed lease unacceptable, partly because the lease would give EOG the right to construct an injection well on county land and because the lease did not follow the county’s bid specifications in a number of other ways.
An injection well is used to inject water from hydro-fracturing operations deep underground for permanent storage. The water, which would have previously been used under high pressure to fracture the Marcellus shale to release natural gas, would be salty and contain chemicals used in the hydro-fracturing process.
In addition to the $2.4 million lease payment, EOG is also offering to pay the county a 17.5 percent royalty on gas that is produced on the land.
The lease would give EOG the right to drill for gas on county land, subject to certain restrictions.
Bradford County Commissioner Doug McLinko said the proposed transmission line would have a minimal impact on Mt. Pisgah County Park.
“It couldn’t be put in a better spot for that park,” McLinko said. “It’s right off to the side so it doesn’t impact a whole lot at all.”
Designation
The letter of support for the National River Trail designation had been requested by the Endless Mountains Heritage Region Inc., which is a non-profit agency.
The designation as a National Recreation Trail can qualify a trail for a range of benefits, including promotion, technical assistance and access to funding opportunities, said David Buck, who is the Susquehanna greenway coordinator for the Endless Mountains Heritage Region.
Plaque
The plaque that was presented to Neiley’s widow, Emma Dell “Frankie” Neiley, was donated by the Towanda Area Pilots Association.
Neiley, a retired colonel from the U.S. Air Force, had served as chairman of the Bradford County Airport Authority, formerly the Towanda Area Joint Municipal Airport Authority, from 1987 to 2001.
He “led the way for improvements at the airport,” the plaque states.
James Loewenstein can be reached at (570) 265-1633; or e-mail: jloewenstein@thedailyreview.com
The commissioners provided an update on the status of EOG Resources’ proposed lease at the commissioners’ meeting on Thursday.
At the meeting, the commissioners also voted to send a letter of support for the proposed designation by the U.S. Department of the Interior of the Susquehanna River (North Branch) Water Trail as a National Recreation Trail.
In addition, the commissioners presented a plaque to the widow of Stephen Neiley, who was the longtime chairman of the Bradford County Airport Authority and who died on April 8.
Gas lease
During the visitors’ remarks section of the meeting, Sheshequin Township supervisor Eric Matthews asked the commissioners to comment on the status of EOG Resources’ proposed lease.
Bradford County Commissioner Mark Smith told Matthews that on Tuesday, the commissioners received some proposed revisions to the lease from EOG. Smith said he has not had a chance yet to review the revisions but did forward them to Bradford County Solicitor Jonathan Foster. The other commissioners also said they had not yet reviewed the revisions.
The commissioners will be meeting with Foster on Monday afternoon to review the revisions to the lease as well as revisions that EOG made to its proposal to locate an underground gas transmission line in Mt. Pisgah County Park.
When the commissioners advertised for bids to lease the gas rights last summer, EOG was the only company that submitted a bid.
After opening EOG’s bid on Sept. 4, and reviewing the bid with the county solicitor, the commissioners had said on Oct. 10 that they found EOG’s proposed lease unacceptable, partly because the lease would give EOG the right to construct an injection well on county land and because the lease did not follow the county’s bid specifications in a number of other ways.
An injection well is used to inject water from hydro-fracturing operations deep underground for permanent storage. The water, which would have previously been used under high pressure to fracture the Marcellus shale to release natural gas, would be salty and contain chemicals used in the hydro-fracturing process.
In addition to the $2.4 million lease payment, EOG is also offering to pay the county a 17.5 percent royalty on gas that is produced on the land.
The lease would give EOG the right to drill for gas on county land, subject to certain restrictions.
Bradford County Commissioner Doug McLinko said the proposed transmission line would have a minimal impact on Mt. Pisgah County Park.
“It couldn’t be put in a better spot for that park,” McLinko said. “It’s right off to the side so it doesn’t impact a whole lot at all.”
Designation
The letter of support for the National River Trail designation had been requested by the Endless Mountains Heritage Region Inc., which is a non-profit agency.
The designation as a National Recreation Trail can qualify a trail for a range of benefits, including promotion, technical assistance and access to funding opportunities, said David Buck, who is the Susquehanna greenway coordinator for the Endless Mountains Heritage Region.
Plaque
The plaque that was presented to Neiley’s widow, Emma Dell “Frankie” Neiley, was donated by the Towanda Area Pilots Association.
Neiley, a retired colonel from the U.S. Air Force, had served as chairman of the Bradford County Airport Authority, formerly the Towanda Area Joint Municipal Airport Authority, from 1987 to 2001.
He “led the way for improvements at the airport,” the plaque states.
James Loewenstein can be reached at (570) 265-1633; or e-mail: jloewenstein@thedailyreview.com
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Reader Comments
The following are comments from the readers. In no way do they represent the view of thedailyreview.com.
Mildred wrote on Nov 7, 2008 7:30 AM:
" At least EOG has not canceled, as too many other gas drilling companies have done here in Bradford County. Others companies have strung landowners along for several months after lease signing, and then lowered the cancellation boom without mercy and for no good reason. When challenged their attitude is: "Take us to court!". EOG probably knows better than to do that to the entire county. It would generate bad publicity and then folks would learn what's been going on. "
SAM wrote on Nov 7, 2008 2:17 PM:
" Well Good Luck for Bradford County. I Wouldn't suppose since the land is owned by the tax payers, that they would get any benefit from the money, "
Robin wrote on Nov 7, 2008 3:01 PM:
" This nation is in serious trouble over
its energy policy and the lack of usings its own resources. Here is a chance to become energy independent and Bradford county and the commonwealth are going to tax the eye balls out of everyone who signs for a gas lease. The Dems and Reps at the helm can easily afford to pay the $4.00 per gallon
for home heating oil, or $4.25 for LP or the son to be outrageous electric rates at the hands of Rendell and Obama. Those of us who work for a living cannot afford to. Something must be done! Private citizens who allow gas drilling on the land should not be penalized by losing clean&green . They are helping America become energy independent. The greed of the government to tax and big biz to profit is holding this nation and its working class hostage just as much as OPEc cartel is! "
its energy policy and the lack of usings its own resources. Here is a chance to become energy independent and Bradford county and the commonwealth are going to tax the eye balls out of everyone who signs for a gas lease. The Dems and Reps at the helm can easily afford to pay the $4.00 per gallon
for home heating oil, or $4.25 for LP or the son to be outrageous electric rates at the hands of Rendell and Obama. Those of us who work for a living cannot afford to. Something must be done! Private citizens who allow gas drilling on the land should not be penalized by losing clean&green . They are helping America become energy independent. The greed of the government to tax and big biz to profit is holding this nation and its working class hostage just as much as OPEc cartel is! "
Mark Smith County Commissioner wrote on Nov 7, 2008 8:40 PM:
" Sam,
Any revenue from the gas lease would benefit the taxpayers. I would advocate that it should be utilized for the long term good of the county. Possibly for capitol projects that are long overdue, there are many. However any of that benefit would come at the price of utilizing the taxpayer's county owned land for gas drilling. It is a difficult decision that could impact our county for decades.
Robin,
Bradford County has absolutely no ability to levy any taxes in regards to natural gas drilling. Clean and Green is a state law and is a contract between the landowner and the state of PA. The Commissioner's Office realizes the complexities of drilling and Clean and Green and is making efforts to encourage action at the state level. "
Any revenue from the gas lease would benefit the taxpayers. I would advocate that it should be utilized for the long term good of the county. Possibly for capitol projects that are long overdue, there are many. However any of that benefit would come at the price of utilizing the taxpayer's county owned land for gas drilling. It is a difficult decision that could impact our county for decades.
Robin,
Bradford County has absolutely no ability to levy any taxes in regards to natural gas drilling. Clean and Green is a state law and is a contract between the landowner and the state of PA. The Commissioner's Office realizes the complexities of drilling and Clean and Green and is making efforts to encourage action at the state level. "
Linda wrote on Nov 8, 2008 10:18 AM:
" Hey Mildred;
What a lot of people don't know is that the STANDARD Lease in the Oil & Gas industry is binding on the Landowner and not on the Oil & Gas companies. in other words they can throw it in the garbage if they want to without paying you a dime. And in order for you to get out of your contract you must send them a Default letter, it is not their responsiblity to send you one. If only people read their contracts it would be self-enlightening ! If you don't send a default letter the contract can go on till you do.
Most of the companies that backed out of the area have done so because of too much governmental interferance, new rules and regulations. If we want them to drill, why then do we make it nearly impossible for them to make a profit? Everyone has their hands out for a cut of the pie, DEP , The Water Commission, and now even our county commissioners are trying to rape the landowners over the Clean and Green. No wonder why energy prices are so high !
If the The Commissioner's Office keeps requesting so many restrictions on EOG I'm sure they will go elsewhere too ! And I wouldn't blame them. "
What a lot of people don't know is that the STANDARD Lease in the Oil & Gas industry is binding on the Landowner and not on the Oil & Gas companies. in other words they can throw it in the garbage if they want to without paying you a dime. And in order for you to get out of your contract you must send them a Default letter, it is not their responsiblity to send you one. If only people read their contracts it would be self-enlightening ! If you don't send a default letter the contract can go on till you do.
Most of the companies that backed out of the area have done so because of too much governmental interferance, new rules and regulations. If we want them to drill, why then do we make it nearly impossible for them to make a profit? Everyone has their hands out for a cut of the pie, DEP , The Water Commission, and now even our county commissioners are trying to rape the landowners over the Clean and Green. No wonder why energy prices are so high !
If the The Commissioner's Office keeps requesting so many restrictions on EOG I'm sure they will go elsewhere too ! And I wouldn't blame them. "
Mark Smith County Commissioner wrote on Nov 8, 2008 11:55 AM:
" Linda,
Clean and Green is not the doing of the County Commissioners. It is unfortunate that there is such a huge lack of understanding on this issue. C & G is a state law and not something the county has much control over. I would sugget to anyone upset with the situation to actually read the regulations for it on the PA state Department of Agriculture website before jumping to the conclusion that the Commissioners are "trying to rape the landowners" as you put it. I did an article with an explanation of the situation in this months issue of the County Newsletter. It can be downloaded at the Bradford County website. You're right, people would be better off if they read through things before signing them, no doubt. But if there are people like yourself who are upset with C&G then that also needs to be read and understood. I have said time and time again the state needs to change the law if they want to exempt gas drilling in C&G. The exemption that was their was removed by the state in 2001. I would also be happy to sit down with you or anyone else anytime to go over the law, just call the office 570-265-1727 or e-mial me at smithm@mail.bradfordco.org.
I find that when it is shown and explained to people they realize the county is in a position in which it has no choice from a legal standpoint but to collect the rollback as required by the state of PA.
Thanks,
Mark "
Clean and Green is not the doing of the County Commissioners. It is unfortunate that there is such a huge lack of understanding on this issue. C & G is a state law and not something the county has much control over. I would sugget to anyone upset with the situation to actually read the regulations for it on the PA state Department of Agriculture website before jumping to the conclusion that the Commissioners are "trying to rape the landowners" as you put it. I did an article with an explanation of the situation in this months issue of the County Newsletter. It can be downloaded at the Bradford County website. You're right, people would be better off if they read through things before signing them, no doubt. But if there are people like yourself who are upset with C&G then that also needs to be read and understood. I have said time and time again the state needs to change the law if they want to exempt gas drilling in C&G. The exemption that was their was removed by the state in 2001. I would also be happy to sit down with you or anyone else anytime to go over the law, just call the office 570-265-1727 or e-mial me at smithm@mail.bradfordco.org.
I find that when it is shown and explained to people they realize the county is in a position in which it has no choice from a legal standpoint but to collect the rollback as required by the state of PA.
Thanks,
Mark "
Smarter than that wrote on Nov 11, 2008 1:12 PM:
" If people would just read their leases BEFORE they signed them, or get legal advice, BEFORE they signed them there would be a whole lot less problems. For example, if asked most gas companies will agree to pay any rollback taxes for the landowner. It'a hard to feel sorry for people who blindly sign something without understanding it. "
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Chuck wrote on Nov 7, 2008 7:21 AM: