Natural gas-drilling push heats up
Energy prospectors seeking natural gas reserves are bidding more than $5.75 million for the right to drill in state forests in the Southern Tier and Cortland County — a process expected to begin next year.
Chesapeake Natural Gas, a drilling company from Oklahoma, was the top bidder in seven of 10 tracts of state land in Broome, Tioga and Cortland counties the state approved for natural gas exploration earlier this year, according to records filed with the state Department of Environmental Conservation.
Chesapeake — with bids ranging from $58 to $832 per acre — was the top bidder for the rights to tap possible natural gas reserves under Oakley Corners, Robinson Hill and Ketchumville in Tioga County; Tracy Creek in Broome County; and Kennedy, Hewitt and Tuller Hill in Cortland County.
Fortuna Energy of Horseheads, with bids ranging from $238 to $284 an acre, outbid Chesapeake for rights to tap gas reserves — if found — under Jenksville, Fairfield and Anderson Hill state forests in Tioga County.
The bid amounts, tabulated by the DEC last summer, are a major consideration in awarding contracts, but other factors are also taken into account, including bidding companies’ track records. Officials last week said final contracts and permits have not been awarded. But there was no reason to expect that the process would be held up.
“It is premature to say if drilling equipment will be mobilized within the next year, but it is possible that we would likely receive drilling permit applications within the next 12 months,” said Maureen Wren, a spokeswoman for the DEC.
Dave Sinclair, a forester who manages lands in the Southern Tier, expects prospecting to begin next year.
“We’re pretty sure that come spring, you will see some activity on state forests (related to the drilling),” he said. The earliest activity would probably include seismic testing, he added. Before drill rigs are brought in, prospectors have to get a good idea where to drill.
Thomas S. Price, senior vice president of corporate development for Chesapeake, could not provide answers to questions Friday.
The lush forest lands — shaded by stands of hardwood, cedar and pine trees and dotted with ponds, streams and ravines — are sanctuaries for hunters, hikers, skiers, birdwatchers, mountain bikers and naturalists who joined together to oppose the drilling in meetings throughout the Southern Tier last summer.
Foresters like Sinclair walk a sensitive line to balance demands from sometimes-opposing interests.
In addition to providing a playground for outdoor enthusiasts, state forest lands — unlike designated wilderness areas — have traditionally been managed to contribute to the public’s economic well being, including providing raw material for timber, mineral and energy industries.
Tapping natural gas, a relatively clean-burning fuel, reduces dependence on foreign oil and dirty fuels while helping ease pressure on rising energy prices. Drilling in places like state forests — which becomes more practical and profitable for companies as energy prices rise — is largely the result of a high and growing consumer demand for energy and expectations of low cost.
“There should be more emphasis on solar power and wind power and conservation,” said Jack Davis, a member of the local chapter of the Sierra Club and an environmental advocate.
The state has forbidden energy companies to clear swaths to accommodate drilling rigs — lighted towers that operate around the clock — in Tracy Creek and Oakley Corners, two forests that prompted stiff protest. But they are allowing drillers to tap into those state lands from rigs on private property on the boundary.
“Even on the boundary, there will be disruption from noise and light,” Davis said. “There isn’t any good way where most of us would be happy with it.”
