IMPACTS OF NATURAL GAS EXPLORATION

Two Presentations on the Impacts of Gas Exploration
Monday, January 12, 2009
6:30pm - 8:30pm

Tioga Central High School Auditorium (click here for directions)
27 5th Avenue
Tioga, NY 13845

"Surface Impact Considerations for Forest and Farmland"
Brett Chedzoy

Brett is a Regional Extension Forester in Natural Resources for the South Central NY Ag Team (Chemung, Tioga, Tompkins, Schuyler and Cortland Counties). He is also a livestock farmer on 200 acre family farm in Watkins Glen,
where he is on his second gas lease and in 1995 had a large NYSEG pipeline built on his farm.


"Economic and Social impacts from Natural Gas Development"
Jeffrey Jacquet

Jeffrey has spent the last 4 years consulting to local governments on the impacts of natural gas development in the state of Wyoming. He holds Bachelors and Masters degrees in Sociology. Mr. Jacquet recently relocated to Ithaca, NY for his wife's educational pursuits and is currently consulting for Cornell University and Penn State University. He will also be teaching Sociology Classes this spring.

IOGA TO HOST PUBLIC FORUM 1/7/09

The Independent Oil and Gas Association of New York

to Host Public Information Forum

Meeting will provide facts on all facets of natural gas exploration

Lakeview, NY -- The Independent Oil and Gas Association of New York (IOGA-NY) will host a public information forum in response to community concerns regarding potential natural gas exploration in New York State.

6:30 – 8:30 p.m.

Wednesday, January 7

Broome County Community College

Cafeteria

Upper Front Street (NY Route 11)

Binghamton, NY

Industry professionals will provide details on the history of natural gas production in New York State, land leasing, the drilling process, and then participate in a question and answer session.

"Our goal is to help clarify misconceptions and provide accurate information on the natural gas exploration process," said Brad Gill, Executive Director of IOGA-NY. "Natural gas exploration is not new to New York. Our member companies have been drilling here for decades and have an exceptional track record on environmental compliance and safety standards."

"At a time of financial hardship, we have the chance to provide an energy resource not only for our state, but nationwide," said Gill. "This tremendous resource will yield new economic development opportunities, create substantial job growth and reduce our reliance on others by giving us our own low-cost energy source. This is such an exciting time for New York -- we must embrace this opportunity, not shy away from it."

For additional information on natural gas exploration, as well as an up-to-date listing of the association's public meeting schedule, please visit IOGA-NY's informational web blog: www.marcellusfacts.com.

***

IOGA-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. IOGA-NY takes great pride in its commitment to members and their local communities.

Informational Meeting on Gas Rush in Tioga Co.

Gain Insight into the Future of the Natural Gas Rush on Tioga County
Tuesday, December 16, 2008
6:30pm - 8:30pm

Candor High School Auditorium (click here for directions)
1 Academy Street
Candor, NY 13743

County officials from Bradford County, PA traveled to Wise County, TX to understand what the future environmental, social, and economic impacts and benefits may be on their area in PA. Come and view a 30 minute video, hear their presentation and engage in a panel discussion with officials. This presentation could provide a glimpse of what the future may look like in the Southern Tier.

Panel members include:

Bradford County, PA officials John Lacey - pipeline specialist (retired from Ag and Markets) Wendy Walsh - Soil and Water Conservation District Ashur Terwilliger - President of the Chemung County Farm Bureau PLEASE NOTE: This meeting is open to the public, State and local government officials, municipalities, and business leaders are strongly encouraged to attend this informative presentation.

Marcellus Shale Could Be Biggest Play In US

Penn State Geoscientist Terry Engelder points out in this article that Marcellus Shale may contain 7 times more Natural Gas than originally estimated. Range Resources, who has drilled many Marcellus Gas Wells, says that Marcellus could be the biggest Gas Play in the United States. The information further validates the information provided by Chesapeake in their Oct08 Analyst Meetings. http://biz.yahoo.com/ap/081104/ny_shale_gas_potential.html?.v=1

Many Good Sources For Info

We have added the web sites for many local landowner groups, under Other Landowner Groups on the left of the page. We encourage our members to visit these sites and see what other groups are doing, and also to view information and links that may be different from ours. Also under Local News, the pressconnects.com site has made some changes, and you will find a wealth information, and helpful links.

Important upcoming meetings

Discussion On The Geology of Tioga County and a Presentation on Closed Loop Drilling
Don Zaengle - Petroleum Geologist
Nick Schoonover - Tioga County Landowners Group
Friday, November 21, 2008
6:30pm-8:30pm

Newark Valley High School Auditorium (click here for directions)
68 Wilson Creek Road
Newark Valley, NY 13811


Assistant Attorney General
Announces 2 forums to be held on Landowners' Rights: Oil & Gas Leases:

Tuesday, Nov. 25th, 6:30 p.m. at Candor High School

Tuesday, Dec. 16th, 6:30 p.m. at Delaware Academy

Please share the announcements with anyone you think would be interested in attending. Thank you very much.

Dennis C. McCabe
Assistant Attorney General in Charge
Binghamton Regional Office
44 Hawley Street
Binghamton, NY 13901
607-721-8771

StatoilHydro Cuts Deal With Chesapeake Energy

StatoilHydro inks deal with Chesapeake

Norwegian natural gas supplier StatoilHydro has inked a deal to acquire a 32.5-percent stake in natural gas producer Chesapeake Energy Corp.’s Marcellus shale gas acreage, the European company said Wednesday.

StatoilHydro added that its interest in the Marcellus Shale, a gas-rich land mass in the Appalachia region of the U.S., includes 0.6 million net acres of Chesapeake’s 1.8 million net acre-leasehold.

The company will pay Chesapeake $1.250 billion in cash, as well as $2.125 billion on a 75 percent carry on drilling and the completion of the wells, StatoilHydro said.

In a press statement, StatoilHydro said the deal includes more than 32,000 leases in Pennsylvania, West Virginia, New York and Ohio -- all states with areas in the Marcellus Shale region. Chesapeake intends to continue to buy leases in the shale, and StatoilHydro says it will have a 32.5-percent stake in participation associated with new leaseholds.

Clean Energy Alternatives

The two new sites we posted, under Clean Energy, will give you a good idea why there is such an interest in the Marcellus Shale play.

Norwich Evening Sun Article

This is a recent article that appeared in the Norwich Evening Sun, we thought it may be of interest to group members, and the public in general. To keep up with what's going on in Chenango County, you can read the Norwich Evening Sun at

www.evesun.com. Here's a recent sample (9/16) of a gas-related article:

By Melissa deCordova

Sun Staff Writer

mdecordova@evesun.com

NORWICH - It's taking more time than expected for landowner groups to reach leasing agreements with natural gas companies due, in part, to new environmental reviews required for horizontal well permits and water withdrawal limits set by the Susquehanna River Basin Commission.

In July, the New York State Department of Environmental Conservation made environmental quality reviews a part of the application process for new well permits. The SRBC, just a few weeks ago, anounced a policy change that requires prior approval for natural gas companies to withdraw water for drilling purposes.

The Oxford Land Group, which represents 350 private landowners who own 24,000 acres, had expected to receive lease bids back in August and enter into an agreement this fall. Group consultant Jackie Root said tighter scrutiny of the industry had slowed leasing activity across the state.

"Deals are taking more time," she said.

Group President Bryant LaTrouette said companies that were interested in bidding need more time. "Their main concern is New York State restrictions that have been put upon them. They are restricting offers," he said.

A Vestal landowner group representing 6,000 acres recently met with similar delay, LaTourette said.

Natural gas industry specialist and attorney Christopher Denton said the leasing process has not slowed down as much as it has "changed gears." Development in the Trenton Black River formation in Steuben and Chemung counties hasn't slowed, for example.

"The permits may be less, but you don't see the companies stopping," he said.

Denton also referred to last week's record deal in Pennsylvania where five companies, including giant Exxon Mobil Corp., bid between $1,151 and $5,837 per acre on 74,000 acres of state land.

Natural gas companies have also changed their focus from leasing land for drilling to leasing land for pipeline easements, he said.

"Like any process, certain parts slow up and then other things speed up. As the play's economical, political and regulatory environment changes, you will see suttle changes from month to month."

Central New York Landowners Coalition President Richard Lasky said he expected natural gas companies to begin buying and leasing land in full swing at the beginning of next year.

"It's a tactic. They (gas companies) will come back. There's 150 trillion dollars worth of gas down there. They have an enormous amount of land. They're not going to walk away," he said.

In related news, the Coalition has retained the law firm of Levine Gouldin and Thompson, LLP, of Binghamton in conjunction with Peter Hosey of Jackson Walker, LLP, of Texas to negotiate their lease. Coalition members and landowners are invited to meet the new legal team for a question and answer session from 1 to 4 p.m. on Sept. 27 at the Unadilla Valley Central School.

Until recently, Denton had provided gratis legal consultation and was a guest lecturer for the Norwich-based Coalition. Because the Coalition, formed in May, has grown from 1,200 to 50,000 acres, Lasky and members of the steering committee said they needed "to transition to a law firm that was equipped to handle the growing organizational needs of all our members in a timely fashion." Denton said he would continue to be a guest speaker at educational forums for the group.

"We have great respect and appreciation for Attorney Denton and his quality staff and are grateful for all the time he devoted to addressing meetings in our area and informing landowners about the perils of the gas leasing process," a statement from the Coalition's newsletter reads.

Denton, whose firm litigates compulsory integration leases for clients, said more landowners are educated about lease offers and have formed groups to stipulate more advantageous terms. His lectures, which attract groups across the state numbering up to 1,000 at a time, have begun to focus on seismic testing permits and easement leases because companies have begun approaching more property owners to do both.

"If they are granted without real consideration and a hard look, they can damage a person's ability to lease their land for drilling. It is less financially beneficial to another company who might want to lease land for drilling because they would then have to buy their competitor's easements. And that can be very expensive. It reduces the competetive edge and marketability of the landowners land," he said.

Melissa deCordova

Staff Writer

The Evening Sun

(607) 334-3276

www.evesun.com

The IOGA of NY to Host Public Meeting in Owego

The Independent Oil and Natural Gas

Association of New York to Host Public Information Forum

Meeting will provide facts on all facets of natural gas exploration, specifically Marcellus Shale

Lakeview, NY -- In response to concerns that have arisen within the community in regard to potential natural gas exploration here in New York State, the Independent Oil and Natural Gas Association of New York (IOGA-NY) will host a public information forum:

6:30 – 8:30 p.m.

Tuesday, October 7

Owego Apalachin Middle School

3 Sheldon Guile Boulevard

Owego N.Y. 13827

TIOGA STATE BANK INFORMATIONAL SEMINAR

Receiving Gas Lease and Royalty Payments?
You need to know the Tax Implications and
possible Investment Options.
Tioga State Bank is holding an informational seminar on
October 22 2008 at
Owego Treadway 7:00 p.m. - 8:30 p.m.
Panel includes: James Leonard CPA, PLLC ,
David Allen PhD.,Senior Financial Consultant
Tioga State Investment Services
Anne McKenna CFO,CPA Tioga State Bank
RSVP Required by October 17th
Please call Customer Service Center at 1-888-303-4872
Limited Seating

Beware the Landmen

As we move closer to sending our lease out for bids, don't be surprised if you're contacted by a landman.

They may tell you that, " it's your last chance before they pull out of the area", or, "gas companies won't sign with groups", or, "the amount of bonus money is going to go down soon".

Don't believe it. It's a 'last ditch effort' to 'pick off' as many of our members as possible. And they're still only offering as low as $700 per acre if they think that you can be fooled.

The landmen working this area have not given us reason to believe them in the past. And there's no reason to believe that they'll give us the best deal now. But most importantly, you do not want to sign one of their gas company leases that could take control of your land for the rest of your life.

Misinformation - Don't Be Fooled

Don't be fooled by some of the misinformation that has been distributed by certain parties. In response to some of the various 'non-truths' we issue these statements:

- There is no truth to the rumors that the Apalachin Landowners Group steering committee members have signed with another group. We are here to see this through.

- There is no truth to the rumors that the Apalachin Landowners Group is unorganized and without a timetable. We are right on schedule in terms of the goals we set for ourselves.

Tends to make you question the character of those spreading these rumors.

Verifying Emails Finished

We have finished sending our Verifying Emails to all members of the Apalachin Landowners Group that have email service. In other words, if you are on our list, you should have received a Verifying Email from us by now.

If you did not get an email, it means that you and your property are NOT on our final list. We will be handing the final list over to the attorneys any day now, so if you are NOT on our list and feel that we have made an error somehow, contact us immediately!

Moving Forward

We were flooded with last minute signups and are in the process of entering all of the member information.

We'll be sending emails to all 'official' members to verify that you are indeed a member of the group. We will post on this web site when these emails have been sent. If you do NOT get a verifying email, it means that, for some reason, we did not get an official sign up form from you. If you are sure that you sent one, but are not on our list, email or call us immediately. (For those who do NOT have email service, we will make verifying phone calls, but these will take more time to complete.)

At the same time, we're continuing to move forward. We sat down with our legal team and went over our list of concerns as property owners. This week we'll meet with our attorneys again to review the first draft of our lease contract.

There's an old saying that goes, "If it weren't for lawyers, we wouldn't need lawyers". Well, this is one situation where we all need a lawyer ... and we need a good one. We're happy to have the staff of Levene, Gouldin, & Thompson and Peter Hosey of the Jackson Walker law firm (Texas) representing us in this venture.

FORMS DEADLINE - JULY 31

- Property owners in Apalachin, South Owego, Lounsberry, Nichols, Vestal, Campville who wish to join the Apalachin Landowners Group must submit a Sign-Up Form and Questionnaire by July 31

- Sign Up & Questionnaire Forms can be downloaded from this website: (left)

GROUP MEETING - JULY 17

Group Meeting - Apalachin Landowners Group
Thursday, July17 @ 6:30PM
Apalachin Elementary School - 405 Pennsylvania Ave, Apalachin


Presentation by attorneys Levene, Gouldin & Thompson and Peter Hosey


Open to property owners in Apalachin, South Owego, Lounsberry, Nichols, Vestal, and Campville

Environmental Issues

Toward the end of the question & answer period of our May 21st public meeting, one gentleman stood out from the crowd by asking something like, "Is anyone even thinking about the environmental impacts, or is this all just about the money?". And I realized that he was right ... it's very easy to get wrapped up in the money-making aspects of this situation.

Since that time I have been scouring the internet to research the environmental consequences of leasing our land to the gas companies. I quickly learned about a multitude of environmental hazards (of all kinds) just by visiting some of the 'environmental group' web sites. But I also quickly learned that the information on these sites is not the whole story. Their position is obviously 'anti-drilling', and the information is presented in the most negative light possible.

After several weeks of research, I have put together my own findings and thoughts on the environmental effects of gas drilling. (Click on the link below to read)

Kevin Lewis

http://www.box.net/shared/x8rghm000o

Bernstein Report Very Encouraging

Although the Barnett Shale (Texas) covers about 17 to 20 counties, there are only 4 or 5 counties that make up the 'Core Area'. That's where all the good wells are and where landowners are getting those big bonus payments.

Click on the link below to read what the Bernstein Report has to say about the Marcellus' potential. Although this report focuses on PA, we're not that far from the area(s) being discussed.

Pay particular attention to Pg 7 of the report. The map on that page shows where they think the 'Core Area' may be. The good news ... we're just inside it.

http://www.box.net/shared/8uoi5k8kcc

Fortuna Expanding Exploration

After the initial lease flurry, things have kind of died down. But that's because it's 'early in the game'. There is still NY legislation that needs to be signed and oil & gas companies are still formulating their strategies regarding the Marcellus Shale. Whitmar and XTO have claims to the east while Fortuna is gearing up just to the west. Click on the link below to see what Fortuna is up to.

http://www.stargazette.com/apps/pbcs.dll/article?AID=/20080701/NEWS01/807010318/-1/ARCHIVES

Storage Lease vs Drilling Question

Question: What if my property is under lease for Storage?

Answer: (Per a Mineral Resources Specialist with the Bureau of Oil & Gas Regulation, Permits Section at the NYSDEC - Division of Mineral Resources )
--A well can be drilled in a storage area to tap an oil or gas reservoir located above or below a storage zone provided the company drilling the well has the mineral rights to drill into those potential hydrocarbon bearing reservoirs. (see our Group’s Comment below) Certain precautions would be required and have to be taken to "protect" the storage zone while the new well is being drilled if the company drilling the well wanted to drill below the storage zone. Those precautions equate to more expense for the company drilling the well.
--As an alternative to drilling through a storage zone, the surface location of the well(s) could be located outside the storage reservoir but you might still be able to share in the production out of that well if your lands were included in a spacing unit for the well being drilled. If your acreage is within the storage zone or its buffer, you should know as you (or earlier landowner if minerals rights were split from surface ownership when you purchased property) would have a storage lease with the owner of the storage facility.
--Group’s Comments:
1) If your storage/buffer lease is only to a certain depth, we believe you can lease the mineral rights to another company for the depths below that. If your storage/buffer lease is for all depths, then our understanding is that the company you are leased with owns the mineral rights for all depths.
2) For anyone who has a storage lease (whether storage or buffer), we recommend that you check the details of your specific lease and consult with an attorney.
--
Loretta A. Sullivan

Tax Questions & Answers

Question: If a gas company places a well on your property, will your property taxes go up?

Answer: (Per the Tioga County Tax Assessor) "If a gas company places a well on your property, then a separate tax map number would be issued for the well and the gas company will be responsible for all tax increases associated with the well. If you look at the property records for the Town of Owego, you will see that any wells that have been built are assigned their own tax map number and the tax bills associated with that number go to the gas company. The only way that I can think of that would change this is if the gas company puts a clause in the lease that somehow makes the landowner responsible for the taxes on any structure that is built for gas drilling. But why would anyone go for that? "
Comment: The Apalachin Landowners Group will ensure that the lease we all end up signing does not contain this kind of clause.



Question: If a person signs a lease and gets so many dollars per acre, would that personʼs assessment (property) be raised.

Answer: "Please be assured that this is NOT the case (per the Tioga CountyDirector of Real Property Services)......assessments are not raised on properties that sign leases."

To Sign Up

Want to join the Apalachin Landowners Group? Contact any one of the area representatives listed below:

If the Location of your Property is:
South Owego
- Loretta Sullivan: 625-4543 / lorettas@stny.rr.com
- Annette Gibson: 625-2743 / longcreekgibson@yahoo.com

Apalachin
1. 'The Terrace' & Marshland Rd areas
-Loretta Sullivan: 625-4543 / lorettas@stny.rr.com
- Annette Gibson: 625-2743 / longcreekgibson@yahoo.com

2. McFall, McFadden, Gardiner, Rhodes, Lillie Hill, Gaylord area -Loretta Sullivan: 625-4543 / lorettas@stny.rr.com
- Annette Gibson: 625-2743 / longcreekgibson@yahoo.com

3. Harnick, Bolles Hill, Pleasant View, Frank Mead area
- Annette Gibson: 625-2743 / longcreekgibson@yahoo.com
- Loretta Sullivan 625-4543 / lorettas@stny.rr.com

4. West of Penn Ave - Beach Rd to Rte 434
- Carol & Dick Hunt 625-4194 / hunt8368@yahoo.com

5. Chestnut Ridge to Long Creek Rd area
- Annette Gibson 625-2743 / longcreekgibson@yahoo.com

6. West of Penn Ave - South Apalachin Rd to the PA border
- Bill Delaney 687-1422 / bdelaney@stny.rr.com
- Loretta Sullivan 625-4543 / lorettas@stny.rr.com

Community Gas Lease Meeting

Wednesday, May 21
7:00 - 9:00 PM

Apalachin Elementary School Auditorium
405 Pennsylvania Ave, Apalachin

Open to all Apalachin and South Owego property owners

Guest Speaker; Chris Denton, Attorney