To the Editor:
(Canastota, NY – Jan. 2014) Here we go again, another story on the poor gas industries that have been prevented from high-volume hydraulic fracturing in New York: The Associated Press, Sunday, Dec. 29, “…NY drilling business dries up.”
In the article, John Holco president of Lenape Resources, states, “We’re not going to be here much longer.”
This is the same company that sued the town of Avon over the town’s moratorium on new drilling, seeking $50 million in damages. In March 2013, the judge ruled against Lenape – the court upheld the concept of Home Rule – a town’s right to enact a lawful moratorium.
In protest, Lenape shut down its own existing wells; notified landowners that all wells would be “shut-in” – natural gas production stopped; royalties and delivery of “free gas” stopped. The company asserted force majeure, which would cause leases to be extended without further compensation. This is much like what Norse Energy did that is now suing the town of Dryden, which banned large-scale gas drilling and hydraulic fracturing.
Courts have ruled it’s reasonable to halt gas development while zoning changes are considered in order to protect the health and welfare of its residents. Yet, due to fear or threats of being sued, many towns have no policies to protect roads from high intensity traffic; no pre-and post-testing of water; no waste disposal prohibition, and no ban on gas well brine spreading.
Brad Gill, president of Independent Oil and Gas Association of New York says, “The industry is wary of investing in New York…” Well we better be wary of this type of “investing” and hope they’re “not going to be here much longer.”
Linda Steffen, Canastota