Steuben, Chemung lead way in natural gas production
BY SARAH GROSSMAN THE LEADER

BIG FLATS - Chemung and Steuben counties led the state in natural gas production in 2006, according to the Department of Environmental Conservation.

Also, natural gas production reached a new record last year largely due to the drilling in the two counties along the Trenton Black River formation. The underground gas source extends from Michigan and Ontario, Canada, through the Finger Lakes and south to West Virginia.

The DEC reported gas production in the state hit 55.2 billion cubic feet and of that nearly 40 billion cubic feet came out of Chemung and Steuben counties. The previous record was 55.15 billion cubic feet in 2005.

"Natural gas production from wells in New York State provides additional supplies of a cleaner burning fuel, helping to meet our energy needs while also benefiting the upstate economy," said DEC Commissioner Pete Grannis.

The DEC also issued the highest number of permits - 622 in 2006 - in more than 20 years.

Chemung County has been one of the beneficiaries of the increased drilling. The county receives some of the highest royalties for gas drilled on its land, said Chemung County Executive Tom Santulli.

The market value of last year's oil and gas productions for the state was estimated at $413 million, according to the DEC. Local government taxes collected on the gas were around $124 million.

Exploration and production of natural gas in this region has been led by Fortuna Energy Inc., the wholly owned subsidiary of Talisman Energy, based in Canada.

The company has invested $650 million in the region and has drilled 63 wells, 59 of which are along the Trenton Black River formation.

Fortuna has continued to grow since it first came to the area in 2002. Recently the company announced plans to expand and open an office building in Airport Corporate Park.

Likewise, the DEC said growth in the oil and gas industries in New York is likely to continue. So far this year, the DEC received 319 permit applications: 224 for gas wells, 72 for oil wells, 5 for geothermal wells, 14 for brine wells and 4 for underground gas storage wells.

"Private investments in new production, especially in the Trenton Black River formation, are expected to increase in coming years," said Grannis.