Williamsport, Pa., used to be most known for housing the Little League World Series. Now it's known for Marcellus shale drilling. Back in October, we sent a crew there to find out how the drilling industry has affected all aspects of life since it first hit nearly five years ago. Our hopes were to show the Valley what it might expect as gas companies begin leasing and drilling our own Utica shale formation.
You can find out about what we learned and read the personal stories of Williamsport residents in the series of articles under the Living with the Gas Rush Tab. There's also an extensive list of other stories, video and images featuring anything from leasing and the environment to the economy and transportation on this Shale News webpage.
It was heavy traffic in the Lycoming County Courthouse a few years ago that gave officials there the first hint Marcellus shale was coming.
During a coffee klatch between businessmen and public officials, a county commissioner shared that there was a problem in the real estate division.
"He said there are lines of people looking up ownership of properties, and realtors aren't able to get to the computers," said Vince Matteo, president of the Lycoming-Williamsport Chamber of Commerce. "Low and behold, we found out they were landmen looking to lease land and find ownership records. It all took off from there."
Since then, enough land has been leased by gas companies to secure more than 600 well permits in Lycoming County. Next door in Bradford County, over 1,500 well permits have been granted.
When the drilling rush began around 2007, Williamsport Sun-Gazette reporter Dave Thompson said landowners were being offered $25 per acre for leases, which gives gas companies rights to explore and drill on the land. It soon became a bidding war, and prices shot up overnight into the thousands of dollars, he said.
"It became kind of a gold rush at that point," he said.
Now in Williamsport, it's not uncommon to get up to $7,500 per acre, and in some cases, much more than that, he said. But Thompson said the process to lease land can be a complicated one, and there are at least 39 negotiable aspects of a drilling lease.
A lease can involve anything from surface rights that give drilling companies permission to build access roads, storage tanks and pipeline right of ways. They also cover one-time bonus payments for signing the lease, rental payments, provisions for free gas and royalties.
"Some think they're just going to have a little green tank and get free gas," said Thompson. "There's a lot more to it than that."
It’s a process that dairy farmer John Feusner knows inside out. He owns 345 acres of farmland in Bradford County. Four years ago, he was approached to lease it, and since, six wells have been drilled and another six are being planned.
Feusner hired an attorney to help with the process, something he said was well worth it.
“When you sign your lease, it’s going to be forever. It’s going to be your grandkids.’ However long it’s in your family. The reality is, that the pad will be here long after I am ... and probably after our kids are passed away.”
Feusner included a depth clause in his lease, which means the drilling company may only drill in the Marcellus shale. If they want to tap Utica or two other formations under his land, new leases must be drawn up.
“They didn’t want to do it, but they did it,” Fausner said, adding that such a clause will be important for landowners in Youngstown, where both Marcellus and Utica shales are located.
They also got the company to go from a 14 to a 20 percent royalty rate. Feusner said he’s lost 80 to 90 acres of land to pads and pipelines, but it’s worth the royalty checks he’s been receiving since March.
“That’s a big deal,” said Feusner. “They’re bigger than the milk checks.”
A few miles away lives another dairy farmer, Tim Beardslee, whose family has owned at least 200 acres of land since the 1800s.
About one year ago, a company began drilling a well tucked away in a field about a quarter mile from his home. Just last month, the company finished reclaiming the land around it. The well produced about 800,000 cubic feet between July to October.
Beardslee said the whole process went pretty smoothly.
"There really wasn't much impact," he said. "We live far away enough from the rig that you can't tell. They worked with us real well. There are always issues, but usually they will understand.”
Beardslee said while there’s only one well for now, “you don’t know what’s coming down the road.”
His best piece of advice?
“Take your time and do your homework,” said Beardslee. “There is a right time to lease...and there’s also a time where you can wait too long. Don’t be afraid to join a group. Take your time, and make sure you get everything you want.”
Take your time and do your homework. Take your time, and make sure you get everything you want." -- Bradford County farmer Tim Beardslee.
