I’ve just posted a new resource page on the blog titled Natural Gas Leases. It lists local landowner groups who either have formed, or are in the process of forming, for the purpose of negotiating land leases with energy companies who want to drill for natural gas around Greater Binghamton. The resource page also lists energy companies known to be interested or signing leases for drilling rights. You can see the Natural Gas Leases page here:

http://rssbinghamton.com/natural-gas-leases/

A hat-tip of thanks to the Binghamton Press & Sun-Bulletin for information on landowners’ groups (see this page), and to Al Czervic who writes The Catskill Commentator blog for a list of energy companies (see this page).

I concur with Al’s views on this: Keep your powder dry. No need to rush and sign a lease right now. Get plugged in with a group and see how it all develops, then make a decision. Right now the “going rate” seems to be around $2,500 per acre as a one-time fee to explore and drill on your property, and if any natural gas is found and extracted, a 15% royalty of all production. A few years back this happened in Texas–only the prices there shot up to $15,000-$20,000 per acre.

We also need to see how New York State handles the issue of water supply and disposal. Drillers need lots of water to drill, and when the water comes back out of the ground it’s contaminated and needs to be properly disposed of. Having said that, I believe we’ll get this figured out and move forward–so be prepared!

Full disclosure: I do not own a significant amount of land that can be drilled, nor do I own any interest in any of the energy companies. I am merely an interested American citizen observer who hopes we can find and use this home-grown energy source. I’m also a cheerleader for my fellow Greater Binghamtonians–hoping landowners can put some serious money in their pockets. After being taxed near to death for years, they deserve a break!

If you have any recommendations or revisions for the Natural Gas Leases page, please email them to: jim@rssbinghamton.com.

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