Environment DEC
From the July 2005 issue
DEC Holds Informational Meetings on Proposed State Oil and Gas Lease Sales
Natural gas wells provide billions of cubic feet of clean burning fuel to New Yorkers for use in electrical generation, heating and cooking
The New York State Department of Environmental Conservation (DEC) recently held public meetings to provide information on a proposal to lease 21,000 acres of state reforestation and multiple use lands in Broome, Cayuga, Chemung, Cortland, Schuyler, Steuben, Tioga and Tompkins counties for oil and gas exploration and development.
The meetings featured informational stations with staff from DEC's Divisions of Mineral Resources and Lands and Forests who explained historical state land leasing, the proposed leasing, drilling permit conditions, seismic technology, Trenton/Black River gas fields in the area and surface management objectives.
Natural Gas-A Critical Energy Source
Natural gas is a critical source of energy and raw material, permeating virtually all sectors of the national economy. According to the National Petroleum Council's September 2003 Natural Gas Policy Report, natural gas provides about 19 percent of electric power generation and is a clean fuel for heating and cooking in more than 60 million United States households. Clean-burning natural gas contributes significantly to reduced levels of air pollutants. The importance of natural gas for new power generation projects is recognized in the 2002 New York State Energy Plan.
To help meet the demand for natural gas, New York's oil and gas exploration and production industry has expanded its focus over the past few years. Aided by new exploration technologies such as three-dimensional seismic and horizontal well drilling, and with guidance from DEC, deep natural gas reserves are being developed in the Trenton-Black River Formation in central New York and in the Southern Tier. With DEC's regulatory approvals, these high-volume wells have increased drilling and leasing activity in New York on private and public lands. Gas production in the state in 2004 was nearly 47 billion cubic feet-almost triple the amount produced in the state in 1998.
Most of this recent activity has been on private lands; however, leases on state lands have resulted in additional yields as well. New York State has done successful leasing for a number of years. Since 1999, state lands have been incorporated into 15 Trenton-Black River producing units and have generated more than $10.5 million in leasing revenues. Prior lease sales conducted in 1999 and 2003 generated $7.6 million in bonus bids. The amount of state acreage disturbed as a result of Trenton-Black River exploration and production operations since 1999 is approximately 28 acres.
Lease Bidding Procedure
Environmental Conservation Law Article 23 designates DEC as the leasing agent for all eligible state lands. Legislative authority to lease state lands for oil and gas development has existed since the 1930s. In response to a DEC call for nominations, or upon their own initiative, interested companies or individuals may nominate state reforestation areas, multiple use areas and wildlife management areas for leasing. Leases are awarded in a sealed, competitive bid process to the responsible bidder who submits the highest dollar-per-acre bid on a tract or parcel.
DEC Division of Mineral Resources staff work closely with other staff responsible for managing the property's surface lands to assess the environmental suitability for leasing of nominated tracts. Their review may result in restriction of surface entry in parts of the nominated area due to steep slopes, wetlands, cultural resources or public recreational usage. Special conditions are incorporated in the leases on an area-specific basis to further protect public safety and the environment. Some tracts may be deemed unsuitable for oil and gas operations in their entirety and be leased only on a no-surface-entry basis. Approximately 50 percent of the 26,000 acres offered in the 2003 lease sale were excluded from surface entry or disturbance.
Public Comment Encouraged
Meeting attendees were encouraged to allow ample time to view the stations and discuss the proposal with DEC staff. A list and map of the parcels nominated for the proposed sale are available on DEC's Minerals Oil and Gas Lease Sales 2005 web page.
The public also was encouraged to comment in person or in writing. Written comments still can be submitted by sending a letter to Charles Gilchrist, Division of Mineral Resources, 625 Broadway, 3rd floor, Albany, NY 12233-6500. Written comments will be accepted until July 29, 2005. Members of the public with specific questions may contact Charles Gilchrist at 518-402-8056.
