CNY Landowner’s Coalition
“Our Strength And Strategy”
Coalition Update 11.23.09
We want to take a few minutes of your time and bring you up-to-speed on the status of our state and our coalition.
Gas News: Some of our neighboring coalitions in Broome county are getting more interest from gas companies and are, hopefully, approaching deals. The two greatest benefits to gas leasing in the Southerntier of NY is the presence of the millennium pipeline and their favored marcellus geology. Many geologists consider them “core” marcellus, and their quick connection to a major transmission pipeline certainly helps their bargaining power. As we have always said, because they rest between us and the major pipeline, they will most-likely lease first. Good news for them is always good news for us.
The SGEIS: We cannot mention our state without talking about the SGEIS. As you already know, the public comment period has been extended to the end of 2009 and the finalization process and date are not fully known. Environmentalists groups have been very active in their efforts with the news media and our elected officials. Your comments through the DEC website or phone calls to DEC representatives and state legislators will help those in position know the strength of Upstate landowners and our desire for responsible drilling in our region.
Our Membership: New applicants continue to come in. We are happy to take on additional land that rests within the range of current coalition members. Since the beginning of our coalition 16 months ago, our steering committee understood the options we have available of either going out to bid as one big block or collecting into separate bidding units. We are not blindly committed to one course of action and, with the help of wise counsel, will make course adjustments if needed to get the best results for our coalition.
Our Strengths: Here are a couple of thoughts that give perspective to some of our coalition’s greatest strengths. 1. The first strength is YOU. Your efforts with your friends and neighbors have created some very good blocks of acreage throughout our coalition range – most of which has little to no presence of leaseholds by other companies. Now, just because we have some excellent blocks of land doesn’t mean the work is done. You will help yourself and your coalition’s bargaining power by continuing to recruit the land around you. Visit your neighbors down the road and make sure all around you are involved in our coalition. 2. Our Geology. Our region holds hope for present and future plays of gas. Although all the marcellus in our coalition shows quality gas, some of our coalition region has more favored geology for greater Marcellus production. Some of our coalition range shows very positive Herkimer drilling production rates. And the largest portion of our coalition reveals the potential of a believed, very profitable Utica shale play. We understand that each gas play is not equal in all areas of our coalition, but we are glad that each area has substantial opportunity for benefit from one or more layers of gas.
Current Tasks to Consider: 1. Land recruitment. Although many areas look good on our map, there are always parcels that can be filled in. Our committee is giving additional attention to our coalition’s Southern range in which we represent about 42,000 acres. As we continue our bidding process with gas companies, stand confident in the reality that no coalition represents a greater block of land in your region than we do. You have made us solid in your section of the coalition and we want you to be rewarded for your confidence in us. Look for local coalition recruitment meetings in some of the towns in our coalition’s southern range. By partnering with more landowner’s in that region, we stand to make them and our entire coalition much stronger. 2. Continued Visiblity and Negotiations. We are pleased with the efforts of our attorney group in these earlier stages of coalition bidding. The process always starts slow through the initial introduction phase. It is not a surprise that there is nothing new to report on our bidding at this time – it is yet too early. However, know that you will be updated as soon as pertinent information becomes available about greater bidding activity and interest.
One thread by itself isn’t that strong, but when hundreds of threads are woven together, they make a very powerful cord. That’s what you have done with the CNY Landowner’s Coalition. If you add some more threads in your region, it will only make you stronger too!