Farm
family’s nightmare: ‘Gas drillers cut corners
from Day One’
by
Candace Mingins
In
1971, when my husband’s family bought its farm
in Van Etten, there was an abandoned Oriskany
formation well on the property. There were,
indeed, abandoned wells all over the neighboring
hills — some of which were providing neighbors
with free gas. A small pipe and tank seemed
innocuous enough. So when a neighbor came by in
1999 with his friend, an oil and gasman who
owned a small company in Pennsylvania, we signed
a ten-year lease. It was a community-held belief
in Van Etten, based on past experience, that gas
wells were “no big deal." Nearly all our
neighbors signed.
There were no informational forums back then,
nor attorneys who knew what was coming. Five
years later, after the lower rights to our lease
were assigned to a multinational corporation, we
realized something bigger was happening and
finally sought an attorney’s help. The first
attorney we saw was knowledgeable but was
interested in helping us only if we exercised a
sale clause we had put in the lease, and sell
our land to a friend of his who invested in oil
and gas. His fee would be 33% of the additional
royalties gained from the transaction. We were
not comfortable with this.
The
second attorney willingly assisted us with the
high-pressure, eleventh-hour negotiations with
the gas company, which now wanted to drill a
well on our farm. But it soon became clear he
knew nothing about the industrial gas drilling
coming.
Finding a reliable attorney was nearly an
impossible task. We didn’t even know what
questions to ask. We scrambled to come up with
last-minute protections, mostly from bits and
pieces of information we were now learning from
neighbors. The gas company was willing to
negotiate, as they had not yet gotten us to sign
an amending agreement they needed. We forged an
agreement to make sure our beautiful, gravelly
loam field would be restored.
The
well was drilled in the Trenton/Black River
formation. It was a conventional well that went
nearly two miles down and one mile horizontally
under the village. It was a huge industrial
operation — a far cry from the old Oriskany
wells on our hill. From day one, the gas company
began to cut corners. What was to be “just a
couple of acres” was actually seven acres (we
measured it.) We asked that the access road run
along the edge of the field, and they cut it
diagonally through the field. The landman who
had been negotiating with us had actually helped
us flag where the road was to be, and he argued
for us to get them to re-do the road. It just
went on and on. The holding ponds were supposed
to have two layers of plastic. They had only
one. The brine was supposed to be hauled out
more often than it was. We felt we had to
constantly be checking, taking pictures, and
calling the gas company.
Of
course, the operation was an industrial site we
never could have imagined: 24-hour-a-day
drilling, ramming noise, lit up all night. It
went longer than they said it would, taking
three months to prepare the site and drill. When
the well was flared (for three days and nights)
and the whole valley was lit up like a stadium,
it began to feel like something terrible had
been unleashed.
When it was time to restore the larger/outer
area of the well site, the gas company cut
corners once again, even though the procedure
was spelled out clearly in the written
agreement. They used a bulldozer to remove the
plastic and large rocks, hauling much of our
precious topsoil with it. My husband furiously
tried to get them to stop, and subsequently to
bring us more topsoil to fill in the
depressions. Rude employees argued with him.
They also never loosened the subsoil before
filling in.
We
had a retired Ag & Markets consultant come in
and shoot some grades and write a
recommendation. This appeared to really annoy
the gas company. They sent us a “without
prejudice” letter stating they had done all they
had to do until final restoration (10 years or
so hence). The “friendly” landman who had worked
on our behalf was told to stop talking to us. We
then knew that if we ever wanted to have that
field restored as per the signed agreement, we
would have to get an attorney. Attorneys tell us
now that only rarely can you get industry to pay
for your legal fees.
Having a multinational corporation in your life
is extremely stressful. It’s a “contractual
relationship,” but it is vastly unequal.
Corporations are protected under the law, and
are ultimately not liable, responsible or
responsive. Their sole job is to make money for
their shareholders, and they will do what they
want. Oil and gas companies are essentially in
the game of “gotcha!” Once you sign, it’s up to
you to watch them, call them, sue them. It’s
your problem now.
They are obliging only until they get what they
want from you. Phone calls, e-mails, letters,
lawyers all become routine. Signing a lease with
a multinational corporation is like inviting a
very rude, unscrupulous, uncaring (dare I say
criminal?) person to live in your home. It is
extremely stressful.
However, this well, we were assured, would have
a lifetime of only about 10 years, and then they
would be “out of there—all cleaned up, like [we]
didn’t know [they] had been there.” We thought
we could live with that. (Of course, at this
point we had no choice.) At this time our
daughter and her husband decided to go ahead and
make plans to move their farm/ winery business
to the family farm.
And
we were “lucky” ones. The well was successful.
In fact, it was the most prolific well in New
York, and in 2006 produced 4 billion cubic feet
of gas — enough to heat 57,000 homes for a year.
Organizations and 133 families receive royalties
from this well, including the town, school and
church. Who couldn’t use more money? Folks could
finally repaint their houses and replace roofs.
They could start retirement savings and donate
to charities. We were able to finish our house
and install solar panels, buy a tractor and pay
off some college loans. There is no denying that
the people could use the money. But the question
began to emerge: at what cost?
In
the spring of 2008, we began hearing talk of the
next big gas “play” — the Marcellus shale — and,
at first, thought nothing of it. But the more we
learned, the more alarmed we became, and then it
hit us: we were “held by production” with a
producing well, and that meant that lease
expiration was irrelevant. And while we are held
by production, more wells may be drilled on our
property in different formations, which in turn
could hold us by production longer.
In
essence, we had “sold” our land forever. The
night I realized this, I had a dream that our
house had been robbed, and it was from the
inside.
Now, our daughter seriously doubted they could
move to the farm. How could they move here when
there could be a lifetime of drilling, drastic
change in our rural landscape, and potential
contamination and pollution? We had “sold” the
land out from under our children and their
children. No amount of money is worth that.
Unconventional shale gas drilling is a nasty
business. And I venture to guess there are
hundreds, maybe thousands of leased-landowners
out there who, as they learn what this new gas
drilling really entails, wish they had never
signed a lease.
A
contract between an individual and a
multinational corporation is never on an even
playing field. The power imbalance is
staggering. Attorney Jane Welsh, of Hamilton,
believes gas leases should actually be
commercial lease transactions, which include the
legal concepts and protections found in any
commercial lease, and “the only reason they are
not is that the parties to a gas lease are
woefully mismatched in terms of negotiating
power, experience, sophistication and financial
clout.” New York, she concludes, is sorely
remiss in not regulating these leases.
But
this is not merely a leasing issue (though the
Attorney General’s Office, Cooperative Extension
and many landowner coalitions seem to believe it
is). For one, it’s a community issue. As Herb
Engman, Ithaca town supervisor, said recently
(and I’m paraphrasing): Towns go through all the
time, trouble and expense to generate
comprehensive plans and protect community
resources, and then gas companies can destroy
all planning.
The
scale of proposed shale gas drilling in the area
will affect our entire landscape and rural way
of life. Leases cannot protect us from
plummeting real estate values or the inability
to obtain mortgages or sell our property; leases
cannot protect us from a decline in tourism or
other negative economic effects; leases cannot
protect us from the increased difficulty in
obtaining insurance or the increased cost of
doing so. And unless gas companies are willing
to post billions of dollars in bonds, leases
cannot ultimately protect us from personal
liability.
But
above all, this is a public health issue.
Emerging studies on air pollution and reports of
water contamination make it very clear that the
negative affects of unconventional gas drilling
cannot be contained by property boundaries.
Whether you are leased, leased in a coalition or
compulsorily integrated; whether you are
un-leased living down the road, downwind or
downstream of gas wells or deep injection
disposal wells; or whether you simply use roads
traveled by frack-water trucks — we are all at
increased risk. Our communities need full
disclosure of the risks we will be exposed to
before we can decide if we, as a community, want
to take those risks. We do not want to be
unwilling participants in a grand experiment,
because that’s what this is.
And
the truth is, no one even knows what all the
risks are. There have been no comprehensive,
long-term, systematic studies of hydrofracking.
Nor have there been comprehensive, long-term,
systematic studies on deep injection disposal of
toxic wastewater. But the high-pressure
injection of contaminants into the ground
appears to be linked to unpredictable migration
of fluids, aquifer contamination and possibly
earthquakes.
Have we mapped our entire area for natural
faults? How do we know that the fracking fluid
left behind won’t eventually migrate upward and
contaminate our water? Maybe not this year, but
what about in five years or 50 years? While the
gas companies and the DEC assure us that these
activities are perfectly safe, they will not
guarantee it, because there is no science
backing those claims. And in fact, more and more
evidence is mounting to the contrary —at the
expense of people’s health and safety.
I
am haunted by the specter of some day turning on
my tap for a glass of our clear, cold, sweet
water and wondering if chemicals left underneath
us have migrated into it.
Do
I test my drinking water once a year? Once a
month? Every week?
How
can I live (how can we live) with the unending
uncertainty that this glassful might be
poisoned?
Do
I drink it?
Do
I offer it to my granddaughter?
-
reprinted with permission