Drilling for Dollars in Yulan NY
The southern tier of New York for many decades produced some of the finest crude oil in the nation. At one point, the Sinclair Oil refinery in Wellsville NY produced the highest grade petroleum products. Laying on the Marcellus Shale Formation, oil and natural gas deposits can be found virtually anywhere in this region. Getting at these deposits was and still is the hard part, and production went elsewhere based on the cost of production and the ROI. That was then and this is now. As the price of foreign oil has reached $140 a bbl on the way to $250, drilling has begun again. This time they are drilling for Natural Gas, they have a way to get it to market, and local landowners are cashing in on the windfall .
Oil and Gas in the Grey Region
Up in Sullivan County, particularly in the western regions, Landmen have been seen exploring and researching property in hopes of getting landowners on board. The mineral leases, worth between $250 to $700 per acre, give instant gratification. The way the laws are written, the exploration company must first sign a lease before they can even sink a test well, and they must pay at least 1/8 of ALL production in royalties. For a change, the State of New York has a set of laws on board that do a good job of protecting the landowners, and the Millenium Pipeline , in the end stages of construction, is approved and ready for all the new supplies.
The Millenium Pipeline
So why does this all seem so important? At a time where many local industries have moved offshore and the price of anything to do with fuel is skyrocketing, it’s nice to see New Yorkers getting some back. Its also not a bad way to make a couple of bucks if you happen to live in Yulan , or you feel like prospecting .
Day to Day, August 20, 2008 · Rural communities in New York and Pennsylvania have seen intense leasing activity as energy companies have turned to natural gas buried deep underground. Extraction has potential to jump-start the flagging local economy, but it has also raised environmental concerns.
Ilya Marritz reports for member station WNYC.
