For Release: Wednesday, June 8, 2005
DEC Announces Informational Meetings on Proposed State Oil and Gas Lease Sale
Meetings Will Provide Information and Gather Public Comments on Proposed Sale
The New York State Department of Environmental Conservation (DEC) today announced it will hold 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.
DEC will hold two public meetings at the Holiday Inn, in the City of Cortland, Cortland, County on June 27, 2005, from 5 p.m. to 10 p.m. and on June 28, 2005, from 9 a.m. to 1 p.m. A second set of public meetings will be held at the Holiday Inn, the City of Elmira, Chemung County on June 28,2005, from 6 p.m. to 10 p.m., and on June 29, 2005, from 9 a.m. to 1 p.m. DEC staff will provide information on the state land leasing program and gather written and oral public comments on the proposed sale.
The public meetings will feature informational stations with staff from DEC's Divisions of Mineral Resources and Lands and Forests to explain historical state land leasing, the proposed leasing, drilling permit conditions, seismic technology, Trenton/Black River gas fields in the area and surface management objectives.
The public is encouraged to submit written comments at the sessions. Oral comment sessions will begin at 7 p.m. (Cortland) and 8 p.m. (Elmira) at the evening sessions and at 11 a.m. during the morning sessions. Written comments can also be submitted via DEC's website to dmnog@gw.dec.state.ny.us and will be accepted until July 29, 2005.
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 through DEC oversight, deep natural gas reserves are being developed in the Trenton-Black River Formation in Central New York and 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 New York in 2004 was nearly 47 billion cubic feet-- nearly 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 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.
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 1930's. In response to a Department 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 that submits the highest dollar per acre bid on a tract or parcel.
DEC Division of Mineral Resources staff work closely with the DEC staff responsible for managing the property's surface lands to assess the environmental suitability for leasing of nominated tracts. Department staff review may result in restriction of surface entry in parts of the nominated area due to steep slopes, wetlands, cultural resources and public recreational usage. Special conditions are incorporated in the leases on an area-specific basis to further protect public safety and the environment. Surface entry may be restricted in parts of some areas due to steep slopes, wetlands, protected species, cultural and historical resources and public recreation. 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.
Attendees may arrive at the public meetings anytime between the stated times, but are encouraged to allow ample time to view the stations and discuss the proposal with DEC staff. The Holiday Inn in Cortland is located at 2 River Street and can be reached at (607) 756-4431. The Holiday Inn in Elmira is located at 760 E. Water Street and can be reached at (607) 734-4211. A list and map of the parcels nominated for the proposed sale will be available on the DEC website. Members of the public with specific questions may contact Charles Gilchrist at (518) 402-8056.
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