Pocono News Section

Gas Companies Moving in Rapidly

Gas Companies Moving in Rapidly - Thursday, May 8, 2008 at 6:12PM EST

Reported by: Mike Trim
Thursday, May 8, 2008 @ 06:12pm EST
DIMOCK TWP., SUSQUEHANNA COUNTY-

Gas companies are starting to drill in Northeastern Pennsylvania and the numbers just jump out at you. In the last year and a half 3,390 landowners in Susquehanna County have leased parts of their property to gas and oil companies.

Martin Farnelli bought his Dimock Towship home 3 years ago. Since then, things have changed drastically. "About a year a later that we found out that there was natural gas here, you know, no one else knew either. So it changes everything,” says Farnelli.

Big trucks now haul off trees and dirt from Farnelli's land. They're clearing way for natural gas drilling. Farnelli leased part of his land to Cabot Oil and Gas. "Could be a lot of economic benefit towards us if they do hit natural gas there, so it's something that we'll have to live with," says Farnelli.

Ordie Price sold some of his Lenox Township property. He's one of thousands of people who are leasing their land in Susquehanna County . He was originally against the idea. Price says, "Not trying to keep up with the neighbors, but the things is it's here. Everybody is living this day and night now."

Price says he and neighbors are worried about long term environmental affects, but feels the time is right for drilling. "Even though we've tried to think it through for weeks and years to come, it just can't be done," says Price.

But the gas isn't guaranteed. Companies like Southwestern Energy are just searching for it right now. They're taking test samples to labs in other states. They think gas is trapped between rocks called Marcellus Shale beneath this soil.

The drilling is leaving behind big holes. Companies could take weeks or months to come back and start long-term drilling. Farnelli hopes to start getting royalty checks this fall.

State law requires gas companies pay one eighth royalties to property owners. For Ordie Price, that equals about 12 percent of profits.