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OCTOBER 26, 2009 12:04PM

Living on Marcellus Shale

Rate: 16 Flag

In the Appalachian region of  New York where I live we’re experiencing a boom in natural gas drilling. There is a strata of rock known as Marcellus shale. When the shale is drilled into horizontally and massive amounts of water are pumped in, natural gas is released. There is plenty of natural gas in them there rocks, and it will decrease our dependence on foreign oil, blah, blah, blah. Wikipedia has a very informative article about the Marcellas shale here http://en.wikipedia.org/wiki/Marcellus_Formation.   

 

I live 10 miles south of Ithaca halfway up a hillside at about 1000ft surrounded by forest and wetlands. Flora and fauna are abundant and the neighbors are at a respectable distance. This is one of the decreasing number of beautiful spots in the USA still affordable to working class people and that is why I’ve been here since the late 60s.

 

The “gas people” have been canvassing the area with mineral rights contracts. These rights allows them access and drilling rights for a specified amount for time, roughly an aeon.

 

A couple years ago lingering out by the swamp I was surprised to hear the sound of people approaching. At this point I’ve been tromping through the woods for twenty years and have met fellow humans exactly once. Turns out it’s four humans, an elderly couple – that is, older than me – who own the thousands of acres of undeveloped hillside that abuts my own meager 1.6 acres, their 30-something son and his wife.


The old folks are real characters, lived here forever, can tell me where these wild berries came from, when that stone wall was built. The dude wears a beret and the lady is in bonnet and barn boots. They’ve decided it’s time to sign over the land to their son, who’s returned to the area. They’re out here walking the nearby borders of the land to show the kids what’s what. The kids are pissing and moaning about thorns and thistles, mud and poison ivy; their attention can hardly be diverted to fulfill their end of introductions and shake my hand.

 

Long story short, my new neighbors outdoor activities seem to be limited to all-terain four wheelers and bulldozers and there are now no tresspassing signs everywhere and once deep in the woods I came across a sign that declared “No Dog Walking”.

 

So this Marcellus shale thing is looming and a map is released that shows land leases which have been signed in the tri-county area. Sure enough, those thousands of acres of undeveloped hillside have been leased to some natural gas interest.

 

Well, maybe the terrain is so forbidding and there is so much other land available that the gas people will never exercise their drilling option, but it’s more likely that someday they will. The trucks will roll in, timbers will fall, roughneck camps set up, and twenty four hour a day drilling will begin. Massive amounts of additive laced water is pumped into the aquifer, wildlife habitat disappears, and property values plummet. Everybody’s quality of life goes in the toilet; the sole exception being the landowners who cared so little about the habitat that they were willing to sacrifice it forever. With their newfound wealth, they’ll be able to expand their holdings and influence, and, perhaps, purchase vacation property in some fabulous location which none of their neighbors can afford, but all of whom used to live in.

 

I’m predicting that I’ll spend the final quarter of my life fighting the gas people. I already had my civil rights period, my end the war in Vietnam period, and my labor organizing period, so I know how it’s done and what to expect. There are worse ways to go out, I just wish I possessed a shred of optimism.

 

Ah, capitalism: the unscrupulous get rich and everybody else gets screwed.

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But...but...but look on the bright side. Those folks are helping America go green, they are helping us stick it to the Arabs, they are building a better tomorrow! Oh yeah, and while they are at it they are screwing up the country an acre at a time.

My daddy taught me a long time ago that with ownership of the land comes a certain responsibilty to it. When my wife and I first moved to Missouri and our ten acres of Heaven we call Almosta Ranch I saw right away that I had a gold mine on the land.

Except for a few acres of pasture, our land is covered with wonderful, old, giant hardwood trees and one of the first visitors we had upon moving in was a timber buyer who assured me that if I would just let him onto the land to "harvest" those trees, we could pay for our land, our house, and have some left over afterwards.

I was tempted...for about ten seconds. I have seen what clear-cutters do to the land. Nope, those trees will be there as long as I am alive, I don't care what the price of timber goes to.

Rated.
Thanks for reading, Torman. You live at Almosta Ranch? The place I live was the ancestral home of the Cayuga. I once saw the name "Cayuga" translated as "mucky land". I said, "Indeed, it is!" I call my place "Muckyland".
Google "Barnett shale" about the same type of gas boom around here. It has been an environmental disaster. Wait till you see how many millions of gallons of water each well takes. If you're lucky, you can force them to do it responsibly, but here in Tejas, oil and gas rule so they run rampant.
Keep fighting the good fight, Tom. You're too young to "go out" or be pessimistic. (I don't know your age, but if you're breathing, you're too young.)(This Bud's for you, man.)
My mom lives in Wyoming, where the coal bed methane boom has devastated ranch land.

I heard the Marcellus Shale story on NPR the other day - though I do have to say I don't recall them talking about damage to the land, more like what an amazing new process it was. I'll have to go back and listen to the sotry again. Let's hope that by the time they decide the land that surrounds you is worth mining we will be well on our way to greener energy.
An ominous story, well told … and I hope the ending isn't as bad as you fear.
I wouldn't just assume that everything will go to hell. It might, but then again.
Plus, sell your rights, PERIOD. Just don't. Trust me.
If you decide to sell/move, sell without the mineral rights.

1.6 acres won't make you rich, but it could end up being a lot more valuable than you would guess.

And don't assume that the environmental fallout from this will necessarily be awful. I have lived around petroleum development and it can be done in a way that is reasonably benign.

I don't expect anyone to believe me, but it doesn't have to work out all that badly. Plus, getting paid just to give someone the right to look is painless.
*Plus, sell your rights*

should have read, *Plus, NEVER sell your rights*

Basically, you are at least partially hedged for the rest of your life from the peak oil problem.
tom, an informative piece. marcellus shale must be pretty huge. they are about to start drilling not far from me as well - not abutting, not yet, but not far.

good luck, and sorry about the young heirs. they sound wretched. and if i were you, i'd trespass every chance i get. its my one bit of civil disobediance. i do not obey no trespassing signs. especially in beautiful places.
just came back. so marcellus extends to cover virtually all of west virginia and pennsylvania.

well, them people got no money anyway. so, we may as well destroy entire states. i imagine they will. havent known a company to stop yet, while there are profits to be made.
Isn't this the kind of operation that can (and in some places HAS) caused earthquakes?

Around here, it's the uranium companies. Here (tho there are some grumbles now and the faint prospect of legislation to change thins) the mineral and aggregate companies can roll in and occupy your land at any time - we only own surface rights.
Have you looked into selling your rights? (I'm not advocating doing so; I'm just curious about what it entails.) I'm from basically the same area, and my parents still live there. They sold their rights before the deposit was confirmed so they aren't going to make nearly as much money as people are who are selling now. They also didn't sell their surface rights, so they took a lower price. It sounds like there's quite a legal battle going on, too -- most of the contracts have a five-year term, and people who sold early want to get out of them in order to negotiate a higher rate, but the gas people are arguing that as long as work is halted (environmental issues from Albany) the clock doesn't run. A couple of lawsuits have sprung up. Many homeowners fear that the gas will be gone in 5 years, so they'll never have the chance to negotiate a higher rate.

There are at least two points that I would like to understand. First of all, what happens if you don't sell? Surely the company is still going to take all the natural gas -- you just won't get any royalties. (I mean, it's not like they drill a little well on each plot of land and pay the owner for the gas from his land. It's all pooled underground.) So my question is, do you just lose out if you don't sell, and your neighbors make all the money, and the environmental damage is the same?

Second, my parents entered into their contract without any legal advice. They took the view that since it was such a small amount of money it wasn't worth it -- hey, everybody was surprised when they found something. But what will happen if wells are poisoned? I haven't seen any of these contracts, but if I were advising the "gas people" I would definitely make sure that homeowners waive any environmental claims. What will your property be worth without drinking water? Ultimately if it happens to enough people and Albany gets involved the gas people might be held accountable but, as you've suggested, it isn't going to be easy.
I've lived in WI for a long long time.
I once lived on a lake in Lake Tomahawk~~a certain un-named lake.
It was a really good fishing lake with no tourist traps on it.
There were a couple of F.I.B.S. who had cabins--HA HA--HOUSESSS there.
One of them ripped his boat up a small outlet and washed a loon's nest right off of a little spit.
I went over and pulled the drain plug on their boat while they were back in FIBVILLE.
It sank at the dock.
Another of these assholes bought the place right next to mine and, IMMEDIATELY nailed 'no trsspassing" signs onto about 10 trees between the jerk's place and mine.
While they were gone, I nailed every goddamn one of those signs to the other sides of the trees.
When F.I.B. came back up, he came over to MY PROPERTY and asked if I knew who moved the signs.
I said, "I did. Now get the fuck off of
To finish my comment which salon SO OFTEN POSTS BEFORE I CLICK ON "POST"~~
I told the F.I.B. to get the fuck off of MY property.
I also told him that he didn't need to put up all his petty little F.I.B. signs as, NOBODY FROM HERRE even wants to meet you, let alone be on your property.
Mr. F.I.B. called the cops and, when the sheriff came over, I told him the entire story, including the loon killer.
All the deputy did was laugh and shake my hand.

The two city slickers in the story reminded me of this very pleasant time I had a little more than 20 years ago.
Thanks everybody for your thoughts and comments. Let's see if I can address some of the concerns.

I live in a little neighborhood off the side of the highway(used to be an old indian trail). They aren't soliciting the mineral rights of the landowners in residential areas. They don't really need them. If an adjoining landowner has contracted for drilling on their land, then the company is allowed to tap the gas that may emanate from your property -- even though you haven't contracted for it, and you won't be entitled to compensation.

On the mountain across the valley from me is a state forest, you see almost nothing but miles of forest. My hillside is the same, but it's all under private ownership. As I said, the rights of thousands of acres nearby have already been contracted, but even in the worst case scenario, drilling wouldn't take place closer than 1/2 a mile from me.

Drainage is a big issue around here. Much of the terrain is very steep and with the shale there is very dramatic runoff. If there is vertical drilling it's going to cause real problems.

We have miles of wetland. Regulation regarding the protection of wetlands may save our area from development.

I shouldn't categorize the neighbors who sold their rights as terrible people, they just don't share my concerns. They probably think this is a once in a lifetime opportunity for them, and it may be, but when it comes to fruition it's likely to destroy the character of the place that I happen to love, which they clearly don't feel as strongly about as I do.

New York is still drafting legislation regulating drilling, and it's likely to be the most restrictive in the nation. That's the way we do things around here. Nevertheless, I predict massive disruption of the environment and our lifestyle. When the time comes I will definitely resist drilling and it will pit me against other landowners. I understand this, I anticipate it, and I will pursue it. But I also regret it.
They used to tell us the invisible hand would take care of everything.

Later we learned we didn't know whose ass it had been up or if it had washed afterward. So think twice.
I came here hoping to get screwed and found out it wasn't in the way I had hoped. For all the periods you've been through, at least you didn't have to go through "those other" kinds.... You sound like a good fighter. Go get em.
I'm grateful to you for fighting the good fight. Even when I lived in the Rockies I was dismayed by the number of people supporting mass drilling of Uranium and the utter depletion of forrests. Some people only see the land in terms of what money can be made off it.
Tom,
They will drill. Sooner or later they will drill. They don't need 100% of the folk who live above the gas to sign up in order to flush the gas out of the shale under you. If no one signs a lease, they can't drill, but if they have a critical mass (consult your state's corporation commission for the rules on what constitutes a critical mass) they can do it. If they drill on your land they have to lease the surface, too, and buy easements for roads, etc. But your neighbors may grant them access.

The rules were made up in the first days of the oil business (natural gas was a nuisance byproduct back then), when no one envisioned having to save the planet. They were meant to save the robber barons from each other.

They have the force of law now.

Alas.

Angus
I appreciate your sentiments, everybody.

Angus: this is my take on it also. My only hope involves the determination of exactly where drilling might occur.
Tom, Your self-review, “a scant few posts of varying quality” may not have had me jumping off my seat to run and read you…but I knew not to trust you as a reviewer of yourself! So glad I read this, and I uploaded it to my 575 Facebook Friends. Maybe one of them will read it too!
For all the fights that you've already been through, I would hope that you could now relax in your chosen spectacular location.
Oh my gosh. And sometimes I feel so alone in my conspiracy theories about capitalism. I am certainly no "pinkie" or "pinko" or whatever that term is that was used before I was born, but I so agree with you. This is the type of thing that makes me want to move to another country. I wish you the best of luck. Good news is that I can keep up with your blog in Italy - I am working on getting my dual citizenship so we (my family) can get the fuck outta here when and if need be!
Man that sucks. No dog walking?? No Trespassing?? What A-holes. Not to mention the sell-out. But you know if you did walk your dog and trespass, it is highly doubtful, mr. I got a burr in my boot, would ever know. Sorry to hear of your troubles.