CORNING/ELMIRA, N.Y. — At Wednesday night’s meeting at the Damascus School, one of Attorney Lester Greevy’s constant refrains was how new mineral rights issues were for Pennsylvania. In fact, he even joked with one resident about the difficulty of finding a local lawyer knowledgeable on the subject.
“Maybe we can set up some lawyer classes,” he said. Short of those, however, anyone looking to find out what the presence of natural gas companies can do to a rural area needs to look elsewhere.
Less than 150 miles northwest of here is the Finger Lakes Region of New York State. In many ways, the area greatly resembles our own; the landscape is dominated by deep, freshwater lakes and the round-topped mountains combust with foliage every fall. In fact, the main visual differences are two; the acres of vineyards that carpet the lowlands and produce the famous Finger Lakes wines, and the silhouettes of drilling rigs that dot the horizon.
In “Pipe Dreams: The Southern Tier’s Natural Gas Boom,” The Corning/Elmira Star Gazette tried to summarize the seismic changes to the economy and social fabric of their community. What they found was neither a nouveau-riche paradise nor an scarred toxic wasteland, but instead ordinary people—some gratified, some frustrated, but all newly aware that wealth from natural gas is like wealth from anywhere else; if you want it, it’s going to take a lot of work.
“First of all, I used to be a well driller,” said Ray Hughson, a resident of Erin, New York who owns 300 acres of lucrative land. “I’m not unfamiliar with what’s going on.”
When natural gas companies started moving into the Finger Lakes region in approximately 2003, looking for the famed Trenton-Black River reserve, Ray listened to them. And then he decided not to sign a lease.
“These people are taking us for a ride...In other parts of the country, they get up to thirty percent on royalties. These guys don’t want to go past 12.5. You’ve got to negotiate your brains out, and that’s not how business should be conducted.”
Mr. Hughson wasn’t alone in his frustrations. Of the residents profiled by the Star-Gazette, only one reported satisfaction with her experience after allowing drilling. And even she had her work cut out for her when it came to seeing any money.
“Boy I heard (”It’s being worked on”) a lot,” said Sue Nowlan, also of Erin. “At times it became so frustrating. Just knowing that somewhere was an account that had money in it that belonged to you, but you had no idea whether or when you might be able to have it.”
After much time, phone calls, and letter writing, Nowlan and a group of her neighbors were able to see their royalties, and all in all, she considers it a positive experience.
“Now, each month, a check shows up...and as a result of all this, a group of rural neighbors has been brought together and has made lifelong friendships, which I treasure.”
On the other side of the spectrum is Janet Farwell of Sullivanville. Citing environmental concerns and a set of poor offers on the part of the companies, Farwell declined to sign a lease. And that was just the beginning.
“I told them to stay off my property...(and) I came home and they had gone over my property and surveyed. You could see where they had ridden four-wheelers...I’ve had the police out here twice, and nothing has been done.”
As many of our residents are also planning to refuse to sign mineral rights contracts, this could paint a sobering vision of the future. And even for those looking forward to the opportunity to earn royalties on their natural gas, it gives a realistic picture of the kind of work and communication involved in staying on top of your money. To sign or not to sign...either way, one thing seems clear.
Regions tapped by natural gas are changed irrevocably.
WRITER'S NOTE: The editorial staff at the Corning/Elmira Star Gazette in Corning, N.Y. contributed to this story.


