Q1. What is the extent of the mineral rights we would need to relinquish - gas, oil, coal etc? Does every homeowner own the mineral rights beneath their surface?
A1. DCNR FAQ: Ownership of oil and gas rights is specified on property deeds, often in cryptic legal text. A thorough deed search at your county courthouse may be warranted to determine if your property still retains the oil and gas rights underneath it. See additional resources for further information about oil and gas rights, leasing, and what you should know. http://www.dcnr.state.pa.us/topogeo/oilandgas/what_about_me.aspx
If you own property, your deed may state ownership is “fee simple;” that means you own the entire property (the surface and mineral deposits). Otherwise, someone else may own mineral properties on the tract. A thorough title search may discover different ownership rights to the mineral property. If you can’t be sure from current documents, searching your property’s historical deeds back to the 1860s might reveal that oil and gas has been separated from the surface estate. A phrase in an old deed such as “oil and gas excepted and reserved” means that the surface was sold separately from the oil and gas property at that time. If you find such a statement in an old deed, the oil and gas would now probably not be yours to lease or develop. http://www.elibrary.dep.state.pa.us/dsweb/Get/Document-44185/5500-FS-DEP2834.pdf
Q2. Some residents can't recall receiving a card re: meeting announcement; does that mean the deed at their property does not include mineral rights?
A2. We have been unable to obtain information about who and how certain members of the community were selected to attend the Dale Properties.
Q3. Did Churchill Valley Country club sign over leasing rights?
A3. Dale Properties states that CVCC did sign a lease and will house the drilling equipment on their property.
Q4. Will they assume responsibility for any damage to our lots and property as a result of their activities? Does the drilling company have any liability if there is mine subsidence after the drilling occurs?
A4. DEP FAQ: Who regulates leasing of mineral rights in Pennsylvania?
In order to access Marcellus Shale natural gas, drilling companies must enter into a lease with landowners. A mineral lease is a private contractual agreement between the owner of a mineral tract (the lessor) who grants the right to develop deposits of the mineral to a producer (the lessee). Oil and gas mineral rights can be sold or leased separately to different parties. Usually, a lessee will insist on the right to sell or reassign a mineral lease to another party. Because a mineral lease gives the lessee a property interest in the mineral, leases should be recorded at the Recorder of Deeds office in the county where the leased tract is located. A lease is usually secured by annual rental payments or a royalty on production paid to the lessor. You can negotiate lease payments and royalty amounts; well, road and pipeline locations; protections for crops, livestock, buildings and personal property; and expiration date of the lease.
A mineral lease is a private contractual agreement between the owner of the minerals and the producer (i.e. a drilling or mining company). County courts hear suits for property damage or disputed lease matters. The commonwealth does not regulate mineral leases, audit payments, or read or calibrate meters. DEP recommends that landowners who are contacted by companies wanting to purchase or lease mineral rights consult an attorney who is familiar with oil and gas law before signing any documents. Contact the local bar association for assistance finding an attorney in your area. http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/marcellus/Marcellus%20FAQ%20090908.doc
Q5. What would happen to the agreements if Dale declares a bankruptcy? Presumable they could buy the agreements from Dale, but would they be bound by the terms?
A5. We recommend you consult an attorney as stated in A4.
Q6. My question is, “Is this something I have to make a decision on if I do nothing what happens?”
A6. DEP FAQ: Can natural gas companies use eminent domain to force landowners to accept gas collection pipelines? No. Under Pennsylvania law, there is no eminent domain granted for natural gas collection pipelines. Drilling companies must negotiate with landowners for the rights to build gas lines on their property. This right may be included as part of a lease agreement. http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/marcellus/Marcellus%20FAQ%20090908.doc
Q7. We have mine subsidence insurance because there is a mine about 70 feet below our house. If we agree to let Dale Properties drill for gas and there is damage to our property due to subsidence, will our mine subsidence insurance still be valid? Our concern is that, in agreeing to the drilling, we might invalidate our insurance.
A7. We recommend you consult an attorney as stated in A4, and your mine subsidence insurance agent.
Q8. What are potential permitting issues? Has Dale Properties and/ or Chesapeake already filed drilling permits?
A8. PERMITTING
To drill a new oil or gas well in Pennsylvania, the operator must post a bond and get a well permit from the
Department of Environmental Protection (DEP). In the permit application, the applicant must show the location,
proximity to coal seams, distances from surface waters and water supplies. Technical staff in DEP’s Regional
Offices review the permit application to determine whether the proposed well would cause environmental impacts,
conflict with coal mine operations, or well spacing requirements. An oil and gas operator who plans to drill a group of wells that will disturb five or more acres over the life of the project, must apply to DEP for a separate permit for storm water management. This “disturbed area” includes well sites and associated roads, pipelines, and storage areas to be constructed. The affected surface landowner and coal deep-mine operator have the opportunity to file an objection about the location of the well. If DEP’s permitting staff find that no adverse impacts would result, the operator will receive a permit to drill the well. http://www.elibrary.dep.state.pa.us/dsweb/Get/Document-74407/5500-FS-DEP2018.pdf
Q9. Does the Blackridge organization have an attorney of its own representing us in this matter? If not, can we get one?
A9. The Blackridge Civic Association has consulted Blackridge residents, who are attorneys, regarding basic questions. The role of the BCA is to facilitate questions and information. The BCA has not paid for any legal advice at this point.
Q10. What if a neighbor's decision to allow this on their property affects my property value, the quality of life (noise/traffic) and/or health? What recourse is there then?
A10. We recommend you consult an attorney as stated in A4. “A mineral lease is a private contractual agreement between the owner of the minerals and the producer (i.e. a drilling or mining company). County courts hear suits for property damage or disputed lease matters.” Also, your local borough or municipality may have ordinances that must be complied with.
Q11. Is there a way for the neighborhood, as a whole, to prevent any of this happening in Blackridge?
A11. If enough residents do not sign the leases, the prospect becomes unprofitable to the drilling company and they may chose to abandon the drilling.
Q12. What are the expected hours of operation, noise, truck traffic, and other potentially nuisance issues.
A12. DEP FAQ: Marcellus Shale natural gas well construction involves extensive earth disturbance including roads, drilling pads and pipelines that can speed erosion. Drilling pads may range in size from three to four acres for the deeper Marcellus Shale natural gas wells, a larger portion of disturbed earth than more conventional shallow natural gas well pads.
Various regulations, implemented through DEP and the Pennsylvania County Conservation Districts, are in place to protect surface water and groundwater from erosion and sedimentation due to earth disturbances.
Erosion and sediment control plan requirements under state law apply to any earth disturbance activities, including Marcellus Shale natural gas drilling (Pa Code Chapter 102). Erosion and sediment plans require gas companies to use preventative measures (referred to as Best Management Practices or BMPs) to restore the site and vegetation within nine months of well completion by planting grass, trees or crop plots.
For all Marcellus Shale natural gas drilling, the operator must use the proper BMPs to control erosion, sedimentation, and stormwater, and develop an erosion and sediment control plan. The BMPs must minimize point source discharges to surface waters, preserve the integrity of stream channels, and protect the quality of the receiving waterway.
For Marcellus Shale natural gas drilling activities that disturb more than five acres at one time, a notice of intent for authorization for the erosion and sediment control general permit must be completed. The notice of intent and the erosion and sediment control plan must be submitted to DEP or an authorize county conservation district for review and approval. http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/marcellus/0100-FS-DEP4217%20Marcellus%20Shale1.doc
Q13. Where will you get your water for the drilling process? What will you do with the drilling water once drilling is complete? Disposition of frac water?
A13. DEP FAQ: Water Use and Waste Water Disposal Activities
Large volumes of water are required to complete a Marcellus Shale natural gas well, and large volumes of waste water are generated as part of the drilling process. This wastewater is considered industrial wastewater and is a residual waste in the commonwealth. DEP, in cooperation with the Susquehanna and Delaware River basin commissions, has created additional permit guidelines for drilling in the Marcellus Shale formation to create consistent rules for water withdrawal, usage, treatment and disposal in all areas of the state, and to ensure that the water quality and uses of waters of the commonwealth are not threatened by drilling operations.
As part of the permit application process, drilling companies must identify where they plan to obtain and store the water used in their drilling operations. When applying for a permit, drillers must specify the sources and location of fresh water and the anticipated impacts of water withdrawals on water resources, and obtain approval from the appropriate river basin commission. Pits or impoundments with an embankment used to temporarily store water for drilling activities must meet DEP standards for construction and may also require a DEP dam permit.
Drilling companies must also identify where the produced wastewater will be stored, treated and disposed. Pits or impoundments with an embankment for temporarily storing drilling wastes must meet DEP standards for construction (e.g., synthetic liners) and may also require a DEP dam permit.
Waste water (fluids) must be reused and recycled, or collected and treated at an authorized waste water treatment facility. DEP approval is required before the receiving treatment facility can accept the wastewater for processing and/or disposal. http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/marcellus/0100-FS-DEP4217%20Marcellus%20Shale1.doc
Q14. Have you ever done drilling above areas above mine shafts?
A14. The answer to this question is unknown.
Q15. Are the outside inspections by independent, objective federal agencies?
A15. DEP FAQ: Who is responsible for permitting, inspecting, and ensuring regulatory compliance of wells drilled by oil and gas companies? The Pennsylvania Department of Environmental Protection (PADEP) – Bureau of Oil and Gas Management is responsible for regulating oil and gas operators. http://www.dep.state.pa.us/dep/deputate/minres/oilgas/oilgas.htm.