Hodgepodge: Sullivan County Leases, David Jones


IN SULLIVAN COUNTY, NY:    According to an article on the front page of the  March 9, 2010  Sullivan County Democrat, “On March 2, the Sullivan County Clerk’s Office filed four new gas leases in western Sullivan County…  Industry insiders have acknowledged that leasing slowed down while everyone awaits New York State’s finalization of new gas drilling rules.  Those rules are expected to go into effect later this year, and with Sullivan County sitting on what has been identified as a deep and potentially plentiful source of Marcellus Shale natural gas, industry interest has reappeared. ”

According to the article, of the four recently-signed leases,  two  are for mineral rights in the Town of Delaware,  one is in  the Town of Cochecton and one is in the Town of Fremont.

This  Thursday  (March 18, 2010)  the Sullivan County Legislature will meet in  full at  2:00 PM in the Government Center at 100 North Street in Monticello, NY.   In accord with  Breathing’s March 5, 2010 article about Sullivan County’s current efforts to update its  Hazards Mitigation Plan,   the  March 18th  meeting is open to the public and would be one venue in which to ask that the Legislature conduct public meetings  where  residents can hear from and ask questions of  Commissioners of  Public Health, Public Works, Planning and our  emergency responders.  The linked article  contains other suggestions that might be made to the Sullivan County Legislature.

The Delaware Town Board is meeting tomorrow night (Tuesday March 17th) at 7:00 PM  in Hortonville.

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On March 11, 2010,  The River Reporter published  a  letter to the editor from James Barth in which he alleged that David Jones, drilling and hydraulic fracturing proponent and  a member of  Northern Wayne Property Owners’ Association, “… either alone, or with partners, has purchased,  just since the natural gas boom talk started, the following acreage: In June of 2008, Jones Partners LP purchased 185 acres in Berlin Township for $1,000,000. In August of 2008, David C. Jones purchased 68.99 acres in Damascus Township for $438,500. In May of 2009, Ruth M. and David C. Jones purchased two plots of land in Preston Township that totaled 181.75 acres at a cost of $825,000.  Therefore, in the 12-month period between June of 2008 and June of 2009, Mr. Jones and partners seem to have paid $2,263,500 for 435.75 acres of land. During this period, Mr. Jones has been a vocal proponent of high volume, slick water hydraulic fracturing and horizontal drilling into the Marcellus Shale.”  (Mr. Barth cites to “tax assessment public records.”  By following the link and searching for “Jones” and “Jones Partners,”  you will find the records referenced by Mr. Barth.)

After reading Mr. Barth’s letter,  Breathing phoned  Mr. Jones and  asked  whether or not  he’d made  the 2008-2009 land purchases  and if so,  where he’d gotten  the necessary funding ($2,263,499).

Mr. Jones —  who has been unfailingly civil and generous with his time  in our conversations —  provided answers off-the-record but would not address his real estate purchases  publicly.

He did have opinions concerning news that the Wayne Highlands School District is considering leasing its gas rights to HessNewfield.  “It’s a great idea to lease school property.  The wells have to be far enough from  a school in case of an accident — because you never know — a minimum of 500 feet from any structure.  Our  local and school taxes are too high.”

At the  March 9, 2010  Wayne Highlands Board of Education  meeting, members of the public expressed concerns over siting gas wells on school property.  Some referenced a recent talk in Callicoon by Mayor Tillman in which he vehemently opposed drilling in school yards and also explained why children should not be exposed  to  air and water toxins which  might  result  from such drilling.

On the question of whether or not Pennsylvania should levy a severance  tax on gas extraction  (as has been done in all other extraction states  except New York and Pennsylvania)  Mr. Jones was unequivocal, “No.  We already tax royalties paid to lessors.  There are other ways to raise state revenues.  For one thing, we could lease public lands.”

A February 12, 2010  press release from  PA State Representative John Siptroth roundly criticized expanding gas leases on PA’s  State  lands.  In part,  Siptroth’s press release reads, “‘The local recreation industry would suffer great loss, as would hunting and fishing activities….  The few local jobs created by the gas industry are not worth losing hundreds more jobs that depend on Pike County’s pristine environment.’  Siptroth has co-sponsored House Bill 2235, which would put a five-year moratorium on leasing additional state forest land for natural gas drilling in the Marcellus Shale region.  The State Forest Natural Gas Lease Moratorium Act would give the state Department of Conservation and Natural Resources sole discretion after the moratorium ends Dec. 31, 2015 to determine if state forests can withstand additional natural gas exploration.”

In his January 28, 2010 letter  to Governor Rendell,  Representative Siptroth writes, “Today more than one-third of the entire State Forest — over 700,000 acres — is either already under lease or acreage on which the mineral rights are not owned by the state.  At least 100 wells are slated to be drilled in the State Forest in the coming year, and it’s expected that we could have as many as 1,500 well pads with 5,000-6,000 wells drilled over the next decade on the State Forest land that was leased in just the last 18 months.”

David Jones also believes  it would be appropriate for the Town of Damascus to  change its zoning regulations to permit gas extraction in its Rural Residential District.  “It will benefit residents.  It’s what  the majority of people want.”

As to the ability of  Pennsylvania’s Department of Environmental Protection (DEP) to regulate and oversee gas extraction,  Mr. Jones stated,  “We need more  DEP  inspectors  but I believe that’s being taken care of.  There’s a new field office in Scranton.”

Mr. Jones is referencing announcements made in January and February by Pennsylvania’s Governor Rendell and DEP Secretary John  Hanger which stated, in part,   “DEP will hire 68 permitting and inspection staff, including 10 for the new Scranton office, in response to expectations that the industry will apply for 5,200 new Marcellus Shale drilling permits in 2010—nearly three times the number of permits issued during 2009.”

According to DEP’s own records, there are significant discrepancies between the numbers of  wells permitted during 2009 (6,240 vs.  2,543)  and the number drilled since 2005  (19, 165 vs. 18,796).  Also according to DEP’s records,  there were 9,848 well inspections during 2009 which revealed  3,361 violations and  resulted in 678 enforcements.  (Numbers are culled from DEP’s 2009 Year End Report and its  2009  Year End Workload Report.  Other numbers are available at the 2010 Permit and Rig Activity Report.   The reports can be found at:  http://www.dep.state.pa.us/dep/deputate/minres/OILGAS/oilgas.htm

Mr. Jones was willing to be quoted also  about protecting  the Delaware River and its environs from  a proposed power line which would traverse three National Parks.  According to The National Park Service (NPS) : “We would like to inform you of a new planning effort at the Delaware Water Gap National Recreation Area, Middle Delaware National Scenic and Recreational River and the Appalachian National Scenic Trail.  PPL Electric Utilities Corporation and PSE&G, have proposed to upgrade and expand a power transmission line from Susquehanna (Berwick, Pennsylvania)  to Roseland, New Jersey (the S-R Line)…that currently crosses the three Parks….”   (The National Park Service’s Scoping Newsletter on  PPL-PSEG’s  proposed power line upgrade and expansion is  here.)

Although three plans —  Projects A, B and C — have been debated during the past few years,  the National Park Service gave the nod to Plan B in 2009. (All three of the planned routes are mapped here with brief descriptions of the areas proposed for transection.  Another good breakdown is offered by The Times Tribune with links to NPS  maps.)

However, NPS  has re-opened  discussions recently  on the  three possible routes and that  has Mr. Jones concerned.  “Plan A is the worst of the three,”  he said.  “The Park Service will have to buy land,  clear land and  put a tower on an island that floods.  It’s going to cost.  The environmental impacts will be greater than from Plan B.  We’ve got  an endangered cactus species where  Route A would go.  Not many people know that.   There’s a crystal-clear native trout stream. The line will go over one of my campgrounds.  Nobody will want to camp there.  The Delaware Water Gap is the gateway to  the Delaware River recreational area.  It’s  going to look great  with power lines draped across it,” he said sarcastically.  “New Jersey needs power but it doesn’t want the lines.  It’s a waste of energy to run them so far from where the population need is.”

Mr. Jones suggested  that,  “[The power lines] should go where the people are — where more people will be using the power.  But they’ll fight that.”

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*For more on Chesapeake, please read Breathing’s article,  “Chesapeake Energy and Penn State’s Robert Watson :  Who Are Those Guys?

Delaware River Basin Commission: Postpones 30,000,000 Gallon Withdrawal from Delaware River

Filmmaker, Josh Fox (Water Under Attack) asked a series of questions which, for the most part, went unanswered. “Who will be monitoring the wells and the trucks hauling the waste water? If that monitoring is a requirement of the application process, is there a body that will enforce the regulations? I’ve witnessed trucks dumping fluids. I have glass jars full of stuff that truckers were ordered to dump in the Susquehanna River.”


The  Delaware River Basin Commission’s  agenda for July 15, 2009 contained twenty docketed items for review.  The meeting was scheduled for 1:00 pm.  At noon, except for some media crews, the Hearing room was empty.   By 12:55, in the middle of a gorgeous summer workday, it was standing-room-only. Interested parties plugged laptops into outlets and blessed wireless networks.

Several  items docketed for DRBC review were approved with little discussion.  Only two or three  members of the public addressed applications other than  Docket #20 and with each  DRBC decision, the audience  shifted, taking deep calming breaths.

At 1:36 PM,  the DRBC announced “that the public record on [DRAFT DOCKET D-2009-20-1] will remain open until Wednesday, July 29, 2009 to allow an additional opportunity for the public to submit written comments.”  Some  in the audience weren’t sure they’d heard correctly but it was official:  no decision would be made  on Docket #20 until after the extended public comment period passed.

Why had  DRAFT DOCKET D-2009-20-1  roused residents of the Delaware River Basin to leave their farms and offices in the middle of a work week?

On May 19, 2009, according to the DRBC website,  DRBC Executive Director Carol R. Collier announced that sponsors of  natural gas extraction projects “could not begin any natural gas extraction project located in shale formations within the drainage area of the basin’s Special Protection Waters without first applying for and obtaining commission approval.  This determination.. asserts commission review over all aspects of natural gas extraction projects in shale formations within the drainage area of the basin’s Special Protection Waters, regardless of the amount of water withdrawn or the capacity of domestic sewage treatment facilities accepting fracking wastewater.

On May 22, 2009 Chesapeake Appalachia  asked the DRBC “to review” its request  to remove up to 30 million gallons of surface water from the West Branch of the Delaware River over a period of 30 days “to support Chesapeake’s
natural gas development and extraction activities…for natural gas wells drilled into the Marcellus Shale and other shale formations…for the applicant’s exploration and development of natural gas wells in the State of New York and the Commonwealth of Pennsylvania.”

Less than 40 working days later,  the public was sitting in the DRBC Hearing Room.

Although the majority of  speakers  supported  the Executive Director’s May 19, 2009 determination, several raised issues of  agency jurisdiction and enforcement responsibility. Filmmaker, Josh Fox (Water Under Attack) asked a series of questions which, for the most part, went  unanswered.  “Who will be monitoring the wells and the trucks hauling the waste water?  If  that monitoring is a requirement of the application process, is there a body that  will enforce the regulations?  I’ve witnessed trucks dumping fluids.  I have glass jars full of stuff that truckers were ordered to dump in the Susquehanna River.”

Most projections  by both opponents and supporters of natural gas drilling anticipate  tens of thousands of wells being drilled in the Basin.  It’s clear that no federal or state agency has budgetary funds  to monitor the majority of  water withdrawals, their impact on the river or  where the waste water is dumped and under what conditions. Mr. Fox summed up the sentiments of the majority of  speakers,  “They’re [natural gas drilling corporations] going to lawyer us to death.  You’ll need a private army to enforce any regulations.”

Another opponent of   hydraulic fracturing in the  Basin asked that drilling companies test wells of any person living in  the Basin both before and after drilling commences and not limit the testing to potable water.  Yet another suggested that drilling companies pay for the water they use in their operations.

Specific to the amount of water being withdrawn, several speakers addressed water temperature, stressing that  variations will endanger the Basin’s shad and trout populations.

Over the last decade,  the Basin has sustained lengthy periods of drought that resulted in flash flooding when the rains finally arrived.  “What will happen to the open pits of waste water during a flash flood?” one woman asked while someone else demanded,  “Will drilling companies be required to stop withdrawals during a drought?  Will they have the financial ability to stop the withdrawals?”

One member of Damascus Citizens for Sustainability (DCS)  said after the Hearing,  “We asked the DRBC to do an Environmental Impact Study (EIS) prior to considering any application for gas extraction activity in the basin.  DCS attorney Jeffrey Zimmerman spoke and had previously submitted a detailed letter to the Commissioners.  We believe there are legal grounds for requiring this EIS.”

The  DCS has also posted a “Help Save the Delaware from Gas Drilling  revised petition at its website and is asking the public to continue submitting statements to the DRBC.

Comprehensive oversight and enforcement by the DRBC is constrained by The Delaware River Basin Compact and a US Supreme Court Decree (Section 3.5 (c)) which apparently gives  de facto veto power to the Compact’s   signatories:  The President of The United States and the Governors of Delaware, New Jersey, New York and Pennsylvania.

That’s where confusion and mixed intent reign.

Politically-speaking, State Governors are often the first to be voted out of  office  when the national economy tanks.  Governor Rendell of Pennsylvania lifted the ban on drilling in State forests and called natural gas drilling  of the Marcellus Shale a potential Gold Rush while saying significant problems caused by early exploration must be balanced with its benefits.  His  Department of Environmental Protection appointee, John Hanger, provided more insight as to the Commonwealth’s position on hydraulic fracturing and natural gas drilling, “… some of the chemicals could be dangerous to human health but the  risk has to be weighed against the benefits that will come from the exploitation of…the ‘enormous’ gas reserves contained in the Marcellus Shale.”   Although “he pledged that officials would respond diligently to any complaints about polluted water resulting from the drilling,”  he was unable to  “confirm or deny reports that water in the northeast Pennsylvania township of Dimock — where many producing wells are located — is being contaminated by chemicals…”

To add further confusion,  DRBC’s rules and regulations state, “The Commission will rely on signatory party reviews as much as possible”  which may be one of the points Governor Rendell intends to press.

Proponents of natural gas drilling and hydraulic fracturing repeated their assertions that new drilling methods and chemicals are safe, though none cited to  any independent scientific studies.   Noel Van Swol of Fremont alluded to DCS and their ilk as “dilettantes.” He further stated, “Seventy thousand acres are ready to be leased in New York from Hancock to Port  Jervis.  The towns are dying.  Anti-drilling presentations falsely assume that water withdrawals from the Delaware are not renewable,”  and claimed rainfall would replenish the water taken by drilling companies.

Our world’s water supply is a closed system.  Despite Mr. Van Swol’s  assertions, rainfall cannot “replenish” that closed system.  It’s merely one inherent part of it.

The next business meeting and public hearing of the Delaware River Basin Commission will be on Wednesday, September 23, 2009.