County residents sitting on gas gold mine
By MARY PERHAM THE LEADER

CAMPBELL - News that a vast natural gas source is below Steuben County led to a capacity crowd Tuesday night at the Campbell-Savona High School.

The natural gas is trapped about a mile under ground in the Marcellus Shale, which extends from West Virginia through Pennsylvania and up to western New York and Canada.

The range is estimated to contain 500 trillion cubic feet of natural gas, with reports that 10 percent production would heat every home in the U.S. for two years.

But while the implications of the resource are growing nationally, nearly 1,000 people filled the Campbell school auditorium to find out what the Marcellus project means locally.

"This is not the $1 or $2 (per acre) we've had in the past," said Lindsay Wickham, field adviser and local issues coordinator for the state Farm Bureau.

Competition between gas companies is likely to mean higher signing bonuses and subsidies for landowners.

"In Pennsylvania, (companies') rates started out at $5 to $50 an acre," he said. "Now they're $2,000, $3,000, and royalties are at 15, 16, 17 percent."

Residents need to consider the long-term value of their leases, Wickham said.

Signing bonuses are paid in a lump sum at the beginning of a lease, but higher royalties are likely to benefit owners now and their grandchildren later.

"The bonus money is there to make you spellbound," he said. "The royalties are there for you, and your kids, your grandchildren... maybe even your great grandchildren."

So far, Broome County residents are being courted by gas representatives, giving counties like Steuben, Chemung, Schuyler and their neighbors time to consider how to get the best deal.

And the construction of the Millenium Pipeline in the town of Corning, with consideration of another pipeline extending west toward Greenwood gives Steuben extra value for gas companies.

Attorney Chris Denton told landowners to be careful what rights they sign away in any lease.

"Your question should be, does the lease protect your purposes for your land?" he said.

Denton said property owners should begin lobbying their state representatives for tax benefits and allowances for royalties.

"Texas gives them, New York does not," he said. "So you say to the state: 'Guys, we are voters and we have money.' Or say to the companies: 'You make up the difference.'"

Owners will be asked to consider leases or possibly required to join either voluntary integration groups or compulsory integration groups, he said.

All involve high school math skills and a willingness to wait, he said.

"This is Business 101, people," he said.

Officials urged landowners to form coalitions to explain and negotiate the highly complex agreements. A miscalculation or money grab could mean significant lost revenues later, they said.

Rathbone Town Supervisor Bill Reagan said extra revenues would be a real boon to his town and others like it.

"We don't realize the potential," he said. "This could help some people hang on to their property."

So far, regional coalitions are set up in five rural areas with meetings set for mid- July. But more leadership is needed across the county.

Town of Tuscarora Supervisor and county Legislator Robert Nichols is a coalition leader in his region.

"It will help us with our taxes, help us with our road infrastructure," he said. "We can always use new revenues."