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."