11-13-09 Update

I would like to thank Chad Coleman, a member of our coalition, for volunteering to construct our website.  It should be up and running sometime next week. 

10-24-09 Update

1. Recently the interest in our coalition has picked up. We are talking with gas companies that are showing real interest in making a deal with us.
2. The DEC release of the draft SGEIS on September 30th was a very important step forward. The DEC issued a 60-day public comment period which was 15 days longer than we were expecting. Now United States Senator Kirsten E. Gillibrand wants the DEC to lengthen the public comment period even further. We do not need any additional delays. I’m not sure why a US Senator would stick her nose in the business of NYS. If you would like to express your opinion to the Senator, she can be reached at: Kirsten E. Gillibrand, 478 Russell Senate Office Building, Washington, DC 20510. Phone (202) 224-4451. email: gillibrand.senate.gov/contact/
3. Our friends in the Binghamton/Conklin Coalition posted the following message on 10/19/09. I have no further information to add.

Important Message

It has come to our attention that Visions Federal Credit Union may not allow a mortgage on any property with a gas lease. Here is a link to a pdf of their new policy. It states that if you have an oil or gas lease on your property they will not give you a mortgage. It also states that if you CURRENTLY have a mortgage with Visions and you sign a gas lease you may have to pay your mortgage balance in full. We obviously feel that this policy is absurd and unacceptable. There are many other banks that are willing to go into a mortgage agreement with you and your leased land. We are researching this issue and will provide you a list in the near future. For those who currently have a Visions loan, please contact them immediately and let them know how you feel. Why should they be able to keep you from what is rightfully yours. Hopefully they will change their policy when they hear from the thousands of landowners across New York and PA that have a visions mortgage. On a bright side, mortgage rates are the lowest they have ever been. It might save you money to shop around. Please forward this to anyone you know in NY and PA that is trying to get a gas lease. Here is a contact number for Visions.

Visions Numbers

Local: (607) 754-7900
Toll-Free: (800) 242-2120
Questions: (607) 786-2000 ext. 637
Appointments: (607) 786-2000 ext. 212
Appointments: (607) 759-4183

Marchie and the Steering Committee

 10-9-09 Coalition Update

• NOTE: The Kirkwood Coalition attorney, Chris Denton’s father passed away on October 8, 2009. Chris will not be available for a week or more. The steering committee is asking everyone that is willing to send a card to Chris at: 311 Lake St., Elmira, NY 14901-2804. Chris and his team have spent a great deal of time working for us over the last 18 months and have not yet received a dime for their work.  

Thanking you in advance: The Kirkwood Coalition Steering Committee

9-27-09 Update

NYSDEC is scheduled to release SGEIS on Wednesday, September 30th. This is a very important step. Following this release the DEC requires a minimum of 30 days for a public comment period. I’ve been told by a very good source that the public comment period will be 45 days.

Negotiations with Hess/Seneca have been on hold since the Friendsville Group signed with Fortuna for $5,500 per acre and 20% royalty.

We have had contacts from two additional companies. It is still quite clear they all are very concerned about the ability of DEC to issue permits to drill. Applications for permits in Pennsylvania have been issued in 30 days or less.

If you are approached by landmen, please be cautious. It may be in your best interest to contact Attorney Denton (607 734-0661) before you sign their lease. Some landmen claim the lease is the same one signed by coalitions in Pennsylvania. This may not be completely true. Feel free to email me at marchidiff@yahoo.com with any offers made by landmen.

In the past few weeks, three large gas coalitions in Pennsylvania have completed agreements with three different gas companies. The total acres in these coalitions is well over 150,000. This means the core of the Marcellus shale that remains available has again gotten much smaller and Kirkwood is located right in the middle of the remaining core.

We are cautiously trying to keep the process moving forward.

Marchie 
 

9-13-09 Update

Congratulations to the Friendsville Group, they have negotiated a great deal and it is a game changer. I am calling a meeting of our steering committee, Attorney Denton and his team to meet no later than Wednesday. We have to re-evaluate our current position.  Marchie

9-11-09 Update

The Friendsville Group in Pennsylvania posted on their website September 9th that they have a deal. They will meet this Saturday to sign letters of intent. They claim to have received the highest sign-on bonus, highest royalty and the friendliest landowner lease in the area. This could be a game changer for all coalitions in New York and Pennsylvania. With Friendsville signing, this will remove about 35,000+ acres of the core of the Marcellus Shale off the market. The core area of the Marcellus that is available is getting smaller.

We are still waiting to negotiate the language of our lease with Hess/Seneca. I have received several emails and phone calls and every time they tell me next week. This has been very frustrating for all of us.

If anyone receives any offers from land men, please let me know. It will be very helpful information.

Marchie 775-3128 
 

9-4-09 Update 

There are a lot of rumors going around about the Friendsville Group in Pennsylvania. I have been trying to stay on top of their progress but they are keeping the offers confidential at this time. I’ve been told the group is meeting Sunday to consider the offers. This may be helpful to our coalition as we should be working on our lease language next week (let’s hope). I apologize for all the delays, but they have been out of my control. Summer is always a difficult time to get several parties together. Some of the reasons for the delays were vacations, sickness and Hess has just completed negotiations in Pennsylvania for over 62,000 acres. Now they are turning their attention to Binghamton/Conklin and then Kirkwood. I have encouraged Hess/Seneca to keep the negotiations moving along.

Our friends in Tioga County are a very large, well organized group. They have a wonderful website www.tiogagaslease.org.  I would recommend that we all read their latest newsletter dated August 17, 2009. Click on "newsletters" in the left column and then click “Fourth Edition”.

Senator Tom Libous has a new website for your use if you would like to express your feeling abut the state’s review on gas drilling. www.safedrillingnow.com.

Marchie

8-21-09 Update

Joint Landowners Coalition Rally in Bainbridge Sunday noon to 4PM.
Looking forward to seeing you there. (See rally information below.)

Proposed Pipeline from Susquehanna County, PA to the Millenium Pipeline

If you are approached by a pipeline company you should not sign any right of way lease or easements. Members of the coalition can contact our attorney, Chris Denton, at (607) 734-0661 to discuss it at no cost.

8-19-09 Update

Just a reminder about the Joint Landowners Coalition Rally this Sunday, August 23rd from noon to 4 PM at General Clinton Park in Bainbridge. A large turnout will show the politicians in Albany the solidarity of landowners and how important it is to move forward with the Supplemental Generic Environmental Impact Statement.

This is a good time to show your support to our steering committee. We have been working hard for over 1 ½ years. I personally have attended over 100 meetings and driven well over 1,000 miles. I hope you can find the time to support this very important cause.

See more details below.  Looking forward to seeing you on Sunday.

Marchie

8-12-09 Update

Notice to Property Owners Previously Leased with Chesapeake:

We have been informed by concerned property owners that were previously leased with Chesapeake that they have received a “Lease Obligation Deposit Receipt” by registered mail for a three-year extension to their lease. If you have received one of these documents and are concerned or have questions, you should contact your own attorney or the Kirkwood Gas Coalition attorney, Christopher Denton at (607) 734-0661. 

Marchie
 

8-10-09 Update
Press Release From The Joint Landowner Coalition

Twenty three landowner groups within the seven county area of the Southern Tier will hold a Joint Landowners Coalition Rally in support of Natural Gas Drilling on Sunday, August 23rd at the General Clinton Park, Bainbridge NY from noon to 4pm. United in purpose, their mission is "to foster, advance, and protect the common interest of the people as it concerns natural development through education and Best Environmental Practices." The theme of the Rally is OUR LAND - OUR RIGHTS - OUR FUTURE.

Several coalitions and local leaders will address the Rally about common concerns, including the delay of gas drilling permits due to the DEC's continued postponement of the updated regulations. Others will speak on current developments in PA where permits are being issued. Invitations have been sent to Governor Patterson and all elected County and State officials. Several officials have already promised to attend. Also, all media within the seven county area have been invited.

The Scheduled events are as follows: Noon to 1:30 - Live family entertainment, 1:30 to 3:00 - Speakers and introduction of elected officials, 3:00 to 4:00 - Continued entertainment. Food court and informational tables will be open all afternoon.  This Rally will represent all members of landowner groups, landowners who signed individual leases, and the community as a whole to express their unity to our elected officials. With their support, the Central New York and Southern Tier region can look forward to a prosperous future. Bring a chair and your family - everyone is welcome.

From Marchie. The Kirkwood Gas Coalition is a member of the Joint Landowners Coalition. I attend their monthly meetings and traveled with them to Albany to meet with Judith Enk in the Governor's office. Judith Enk reports to the Governor in regard to environmental issues.

* * *Also***
I would like to inform everyone about an article that was in the Viewpoints section on page 3B of Sunday’s Press & Sun-Bulletin dated August 9. This article was written by Lou Santoni, President and CEO of the Binghamton Chamber of Commerce. To find the article on line, go to pressconnects.com and type in “drilling restriction would hinder natural gas exploration”.
Marchie

June 12, 2009 Update

We have been in continuous negotiations with a large gas company and their partner for about 4 weeks.  This company is intereseted in leasing about 90,000 acres in New York and considerable amount of acreage in PA.  The steering committee has accepted the financial proposal.  Our next step will be working out the details of the lease.  There is a lot to accomplish and we will not compromise on some issues.  If we can come to an agreement on the lease a meeting of the full coalition will be called to vote on the package.  This could happen very soon so please keep checking this website for more updates.  Thank you for your patience.  Marchie

May 13, 2009 Update

Abstracts:  Sorry it is taking so long. This is out of my control. I have made several phone calls and emails to Attorney Denton’s office trying to expedite this process. I want to assure you, your abstracts are safe. I will continue to encourage Attorney Denton to complete this task and return your abstracts ASAP. Thank you for your cooperation and patience in this matter.

Our coalition consultant is still working to make a deal.

Also, last Friday we met with 2 gas companies that are interested in forming a joint venture. One is a major company and one a smaller company. These 2 companies are looking to lease a large number of acres in NY and PA. They have contacted several other coalitions and made the same offer that we all quickly refused. They are prepared to make another offer within a week. When I receive this offer I will call a meeting with our steering committee and discuss it.

Marchie

5-4-09 Update

In regard to abstracts that were submitted, they are being completed this week and should be available to pick up the week of May 11th.  I will call you when they are available.

I have been in contact with our consultant several times since last Tuesday's deadline.  He is working very hard to make a deal for our coalition.  We wish him good luck.

I received an unsolicited contact from a major company.  We were supposed to meet last Saturday, but the flight connections were cancelled.  Coalition geologist, Don Zeangle, and I will attend a rescheduled meeting for this Friday.

Marchie

March 8, 2009 Update

I received a call this morning from coalition attorney Chris Denton.  He has informed me that there are two gas companies that want to deal with the Kirkwood Gas Coalition.  Their interest is serious, which is indicated by the fact that they are flying coalition geologist Don Zeangle to meet with them this week.  Also, later this week the interested companies plan to review abstracts for parcels of 50 acres or more.  (Those property owners will be notified in the very near future.)  This is all the information I have and will update this site with more information as soon as possible.  This is very encouraging news!  Marchie

 60- Day Deadline
In regard to the proposal that was accepted by the coalition on Friday, January 9th, I signed documents to proceed with the consultants on Monday, January 19th giving them until March 17th to present the coalition with an agreement from a gas company. Marchie  

STEERING COMMITTEE MEETS WITH COALITION ATTORNEY - CHRIS DENTON, NOVEMBER 17, 2008.

Our steering committee met with Attorney Denton November 17th to discuss going to bid.  We are all aware of the economic turmoil on Wall Street and Main Street.  Most of the gas companies are experiencing hard economic times as well.  Many are funded by investors and these hard times eliminate some of the underfunded smaller gas companies from the bidding process.  It is impossible to predict when these difficult times will improve.  There are some issues we are quite sure of:

1.  The Marcellus Shale may have 7 times more recoverable gas thean was estimated only a few months ago.

2.  Kirkwood has the Millenium Pieline that can supply tens of millions of people less than 200 miles away.

3.  Our coalition (as stated by Attorney Denton) has a very tight and contiguous map with pipeline easements leading to the Millenium Pipeline.

4.  Don Zeangle, coalition geologist (with many years of experience in the gas and oil industry) is very excited abut the geology in Kirkwood.  We have at least 3 different potential gas formations.  We may be in the core of the Marcellus, and the Utica Shale along with the Trenton Black River Limestone.

5.  The size of our coalitiion (10,400 acres) makes us very attractive to a large number of gas companies.

With the above items considered, the steering committee has decided to send out requests for bid packages. 

Our time table to move forward is:

December 4, 2008 we will send requests out for bid packages.

January 9, 2009 is the deadline for gas companies to return bid packages.

January 15, 2009 the steering committee will meet with Attorney Denton and review the intereset in bidding.

JOINT COALITION FORM:

Several gas coalitions in upstate New York have joined together to share information.  We have met several times since September and have prepared a letter to send to DEC. 

NEWS ITEMS:  MARCELLUS SHALE UPDATE.

ALBANY (AP) -- A geologist says the Marcellus shale region of the Appalachians could yield seven times as much natural gas as he earlier estimated, meaning it could meet the entire nation's natural gas needs for at least 14 years.

Penn State University geoscientist Terry Engelder said in a phone interview Monday that he now estimates 363 trillion cubic feet of natural gas could be recovered over the next few decades from the 31-million-acre core area of the Marcellus region, which includes southern New York, Pennsylvania, West Virginia and eastern Ohio.

Engelder and geologist Gary Lash of the State University of New York at Fredonia touched off a gas rush in the region last January with their study estimating that the Marcellus could yield as much as 50 trillion cubic feet of natural gas.

Geologists have long known about the existence of the Marcellus shale, but exploration there accelerated only recently when the price of natural gas rose high enough to make it economically feasible to use the advanced drilling techniques necessary to produce gas from the hard rock thousands of feet underground.

Production on the Marcellus gas field, or "play," is considered to be in the early stages, but the sheer size of it is drawing heavy interest from the exploration industry.

"It has the potential to be the biggest gas field in the United States," John Pinkerton, chairman and chief executive of Range Resources Corp., said last week in an interview at the Fort Worth, Texas-based company's office in western Pennsylvania.

Engelder first presented his new numbers in Pittsburgh last week at a conference on Appalachian gas sponsored by the energy information firm Platts. He said he based his revised estimate on new figures from Chesapeake Energy Corp., the nation's largest natural gas producer.

Oklahoma-based Chesapeake recently told investors and analysts that each square mile in the Marcellus could contain 30 billion to 150 billion cubic feet of gas. Engelder and Lash initially estimated 9 billion cubic feet per square mile.

Chesapeake also said the thickness of the gas-containing shale ranged from 50 to 300 feet, while Engelder and Lash assumed a thickness of 50 feet.

Applying his own calculations to numbers presented by Chesapeake, Engelder came up with his new estimate of how much gas the region might be able to produce over the next few decades, given enough time and money.

"Geologists are still trying to size this play," Engelder said. "We don't really know how much gas is there and how much can be recovered."

Chesapeake, StatoilHydro announce joint venture

THE ASSOCIATED PRESS

OKLAHOMA CITY -- Chesapeake Energy Corp. and Norwegian energy company Statoil Hydro announced Tuesday the formation of a strategic alliance to explore for unconventional natural gas opportunities worldwide and an agreement for a joint venture in large gas field in the eastern United States.

StatoilHydro will pay $3.375 billion for a 32.5 percent interest in Chesapeake's assets in the so-called Marcellus Shale geologic formation - about 1.8 million net acres - in the Appalachian region. Oklahoma City-based Chesapeake would retain the remaining 67.5 percent interest in the assets.

StatoilHydro will pay $1.25 billion of the amount in cash at closing and $2.125 billion from 2009 to 2012 by funding 75 percent of Chesapeake's share of drilling and completion expenditures.

The companies said the development of the area could support the drilling of between 13,500 and 17,000 horizontal wells during the next 20 years, and cover more than 32,000 leases in Pennsylvania, New York, West Virginia and Ohio. StatoilHydro said it was acquiring about 2.5 billion to 3 billion future, recoverable barrels of oil equivalent through the deal.

"We are establishing a strong platform for further developing our gas value chain business and growing our position in unconventional gas worldwide," said Helge Lund, the president and chief executive officer of StatoilHydro.

"The agreement we have entered into with Chesapeake provides us with a solid position in an attractive long-term resource base under competitive terms. Additionally, this deal adds a major building block to the gas value chain position we have established in the U.S., the world's largest and most liquid gas market."

Chesapeake is the largest producer of natural gas in the U.S., while StatoilHydro is the second-largest natural gas supplier to Europe. As part of the agreement, the two companies will form a strategic alliance. The closing on both the transaction and alliance should occur by the end of this year, officials from the two companies said.

"We are honored to establish a business relationship with StatoilHydro and are excited about the mutually beneficial nature of our transaction with them," Chesapeake CEO Aubrey McClendon said.

"We believe this transaction creates substantial value for both companies and unique opportunities for international growth with one of the leading international oil and gas companies. Jointly we can export our world class unconventional natural gas technology for further long-term growth."

In recent months, Chesapeake also sold a 20 percent working interest in its assets in the Haynesville Shale in north Louisiana and east Texas to Plains Exploration and Production Company for $3.3 billion and a 25 percent working interest in its assets in the Fayetteville Shale assets to BP America for $1.9 billion.

DEC Hearings.

The New York State Department of Environmental Conservation (DEC) has finalized logistics for a series of meetings to give the public an opportunity to participate in the analysis of the potential environmental impacts of high-volume hydraulic fracturing of horizontal wells in New York's natural gas-bearing Marcellus and Utica shale formations.  The meeting in our area will be Monday, November 17, 2008 at Broome Community College, West Gym, 901 Upper Front Street, Binghamton, NY 13902.  Note:  The location will open at 4:30 p.m., with the formal meeting beginning at 5:15 p.m.  Brief remarks by Department staff will be followed by public comments starting at 6 p.m.

The environmental activist groups are working to build a strong case against any potential environmental impacts.

Coalition Status as of 10-31-08.

We completed most of the interviews for large parcels in regard to the tailoring clauses for leases October 22nd.  Attorney Denton's office is completing the telephone interviews, however there are some members his office has had a difficult time contacting.  If you have not been contacted by his office, it is imperative that you contact his office as soon as possible if you want to be included in the coalition's bidding process.  Attorney Denton can be reached at (607) 734-0661.

The steering committee will be meeting with Attorney Denton on Monday, November 17th to move forward with the bidding process.  In spite of the hard times on Wall Street, there are some encouraging signs that this may not have affected the natural gas development in the Marcellus shale.  Kirkwood has great potential in the Marcellus shale, we have the Millenium Pipeline and the geology shows we are in the core area.  Attorney Denton told our steering committee that our coalition is strong, well organized, our map contains many contiguous acres, has the potential for many gas well sites and good pipeline easements.

 Cut-Off Date to Join the Kirkwood coalition was October 15th.

We received numerous new members and more interviews will be conducted October 22nd.  This should complete all face to face interviews with Attorney Denton's office.  Attorney Denton's office will also be conducting more phone interviews with new members that have 15 acres or less.

Tailoring Clauses are in the process of being prepared.

Attorney Denton's office is currently preparing the tailored leases for individual properties.  When the tailoring clauses are completed, a meeting will be scheduled with the full coalition members to review and explain the master lease.  Attorney Denton continues to ask for your patience as he continues to work towards the bidding process.

Pipeline Easements and Seismic Testing

Attorney Denton advises all members not to allow any pipeline easements or seismic testing on your property or on the town roads along your property.  In many cases you own to the center of the road.  Any seismic testing on these roads may be considered trespassing.  If you are approached for pipeliine easements and/or seismic testing, contact Attorney Denton at (607) 734-0661.  These issues will be addressed in the lease being prepared by the attorney for the coalition.

Review of Previous and Outdated Information:

Letter to Kirkwood Landowners

In a final effort to encourage Kirkwood landowners  that have not joined the Kirkwood Gas Coalition to join, the following letter will be sent:

Dear Kirkwood Landowner,

We are contacting you in an effort to inform you about the Kirkwood Gas Coalition. Last winter gas companies approached many landowners in regard to leasing their property for the mineral rights. In most cases we were uneducated and vulnerable to the offers received from the landmen of the gas companies to sign a lease for much less than it was worth. In response to this activity we formed the Kirkwood Gas Coalition and encouraged all landowners in Kirkwood to participate. We have signed up about 10,000 acres with 350 property owners.

Our coalition has engaged the services of attorney Christopher Denton and his team, Don Zaengle - Sedimentary Geologist, Bob Williams - Environmental Scientist, and CPA James Leonard. 

We are continuing to reach out to all landowners (no minimum acreage required) in a final effort to encourage you to join the coalition. The best way to maximize the financial benefit for all landowners, allow the gas companies to drill, build pipelines to get the gas to market, and to ensure environmental protection, is to build a coalition consisting of many contiguous acres. You are not required to allow any gas activities on the surface of your property. The lease agreement would allow the gas companies to capture oil and gas from under your property using horizontal drilling techniques.

After several meetings and many hours of volunteer work, we are preparing to set a cut-off date to accept membership into the coalition. If you wish to consider joining the coalition with your friends and neighbors, we have enclosed a questionnaire for you to complete and submit to the Kirkwood Town Clerk at:

                        70 Crescent Dr., Kirkwood, NY 13795

                        or FAX to: (607) 775-5934 

Before you make a decision, complete the questionnaire, meet with the attorney (at no cost), address your concerns and review the lease. You only pay the attorney’s fee of $20.00 per acre after the coalition’s steering committee recommends the lease agreement to the coalition members for approval and you receive a check from the gas company that is awarded the bid.

If you have any questions, please feel free to contact one of the members of the coalition’s steering committee:

                        Chairman, Marchie Diffendorf            (607) 775-3128

                        Co-Chairman, Gary Brodbeck            (607) 775-4908

                        Ben Weingartner                               (607) 775-3155

                        Ward Coe                                         (607) 775-1435

                        Jack Diffendorf                                 (607) 775-1249

                        Ken Honnick                                      (607) 775-1020

The Kirkwood Coalition's number one goal is to protect our environment.  The best way to protect your well water, ground water and the environment is to join Kirkwood's Gas Coalition.  The Coalition's lease will be environmental and owner friendly and the Coalition will only negotiate with gas companies that have the same goal. 

Attorney Chris Denton has informed the Steering Committee that he is very encouraged to see the serious interest in Kirkwood expressed by the gas companies.  He sent our map with the high-lighted properties to a number of companies and they liked what they saw.  Our coalition has many contiguous acres, and the geological reports are more convincing that we are in the core of the Marcellus Shale.  If we stick together and be patient the Steering Committee believes we will all benefit.

Marchie Diffendorf, Coalition Chairman  

Review of Previous Information

Contact Your Neighbors  -  Contact your neighbors and ask them if they are interested in signing up and participating in the gas lease coalition.  If they don't have access to the internet, you might consider assisting them.

Progress  -  We have made great progress in a short time and we currently have approximately 8,457 acres in the coalition.  Time seems to be on our side as sign-on bonuses and royalties keep increasing.

Steering Committee Selected - April 2008

At a meeting held on Thursday, April 10, 2008 the coalition elected to have Marchie Diffendorf remain as Chairman.  The following volunteered to serve on the Steering Committee:  Ward Coe, Ben Weingartner, Ken Honnick, Jack Diffendorf, and Gary Brodbeck.

Steering Committees from Kirkwood, Conklin/Town of Binghamton, Vestal and Windsor will interview attorney Gordon Thompson on Wednesday, April 16th, and attorney Chris Denton on Thursday, April 17th.  The Committees will make a recommendation and present it to their coalitions.  The coalitions will then decide to accept or reject the Steering Committees' recommendation. 

If you own property in Conklin or the Town of Binghamton you can obtain more information by going to www.nygaslease.com.

If you own property in Windsor or Colesville, you can obtain more information by going to www.windsorny.org.

To contact the Tioga County Landowners Group go to www.tiogagaslease.org.

By joining the coalition you are not committed to any agreements the coalition may sign in the future.  We appreciate your participation with the hopes of securing the best possible lease that will meet the needs of all our members.

I would like to thank the Town of Kirkwood for the use of their website.

For additional general gas drilling information go to:  www.windsorny.org or www.pressconnects.com. 
                                                                                                                                               

Marchie 

Leased Properties

On November 17, 2008 the steering committee met with Attorney Chris Denton.  It was decided to allow property owners currently leased to join the Kirkwood Gas Coalition if the lease expires early next year.  If you are in this situation, please make sure of the date your lease expires.  To join the coalition you can pick up a questionnaire at the Kirkwood Town Clerk’s Office.  We will keep the information for these properties in a separate database and present them to gas companies for their review.