Natural gas leasing has been the most-attended seminar at the New York Farm Show in recent years. And the issues are hotter than ever. That's why "Hot Gas Leasing Issues" will be a mini-seminar topic once again on Friday, Feb. 24, in the Arts and Home Center's Bistro Room at the State Fairgrounds.
At 9 a.m., David Kay, Extension Sociologist with Cornell's Community and Regional Development Institute kicks off the session with the economic implications of different drilling scenarios for New York plus the significance of landowner choices. He'll also share details of Penn State's landowner survey.
Next, Ken Smith, Cornell Cooperative Extension director for Chenengo County, will cover the current status and latest developments of natural gas in the Empire State. He'll also be discussing major pros and cons for farmers, such as compulsory integration, the impact of higher trucking and employee costs and potential income from pipeline leases and reservoirs for fracking water, plus the ultimate fate of drilling and fracking wastes.
Smith will also show where the major "fairways" (drilling development areas) are for the Marcellus and Utica natural gas formations. Many landowners, he says, are surprised and/or have been misinformed.
Leasing Consultant Jim Leonard from Endicott, N.Y., will address contract issues plus leasing issues with pipeline development, compressor stations and access roads. He'll also cover one of the biggest developing problems – proper payments and the "holding by production" problem.
Leonard, a board member of the National Association of Royalty Owners, will explain why New York may now be a "second tier" play compared to the oil/wet gas plays taking place in the Eagle Ford, Bakken and especially the Utica/Point Pleasant formations in eastern Ohio.
It's one more excellent reason for circling Feb. 24 as the date to be at New York Farm Show. Bring your note pad and questions to be answered.