Mark Grisanti

District 60

716-854-8705

518 455-3240

grisanti@nysenate.gov

Senate Co-Sponsors:

Joseph Addabbo, Jr.

District 159

518-455-2322

addabbo@nysenate.gov

Tony Avella

District 11

718 747-2137

518-455-2210

avella@nysenate.gov

Greg Ball

District 40

518-455-3111

gball@nysenate.gov

Thomas Duane

District 19

212 633-8052

(518) 455-2451

duane@nysenate.gov

George D. Maziarz

District 62

716-731-8740

518-455-2024

maziarz@nysenate.gov

Velmanette Montgomery

District 18

718 643-6140

(518) 455-3451

montgome@nysenate.gov

Suzi Oppenheimer

District 37

914-934-5250

518-455-2031

oppenhei@nysenate.gov

Kevin S. Parker

District 21

718-629-6401

518-455-2580

parker@nysenate.gov

Bill Perkins

District 30

212 222-7315

518-455-2441

perkins@nysenate.gov

Joseph E. Robach

District 56

585-225-3650

518-455-2909

robach@nysenate.gov

Jose M. Serrano

District 28

212-828-5829

518-455-2795

serrano@nysenate.gov

The opposition includes:

Advocates for Cherry Valley
Jeff and Jodi Andrysick, producers of “All Fracked Up”
Bassett Healthcare
CDOG /un-naturalgas.org
Citizens Energy and Economics Council
Citizens Environmental Coalition
Clean Water or Not
Coalition to Protect New York
Committee to Preserve the Finger Lakes
Community Environmental Defense Council
Dryden Resource Awareness Coalition
Finger Lake Progressives
Fly Creek/Otsego Neighbors
Frack Action
Gas Free Seneca
Homescapes/Goldpetals Inc.
Hydro Relief Web
Keuka Citizens Against Hydrofracking
NYH20
New York Residents Against Drilling (NYRAD)
Otisco Lake Preservation Association
Otsego 2000, Inc.
Residents of Crumhorn
People for a Healthy Environment (PHE)
Shaleshock
Unadilla Citizens Against Hydrofracking
United for Action

Peacegirl
Rochester, NY, and French Azilum, PA

CNOOC pays $1.1B cash, $1.1B drill carry to enter Eagle Ford Shale with Chesapeake

October 11, 2010
Source: CNOOC

China’s largest oil and gas producer CNOOC (NYSE:CEO) has executed an agreement with US independent Chesapeake Energy Corporation (NYSE:CHK) whereby CNOOC will purchase a 33.3% undivided interest in Chesapeake’s 600,000 net oil and natural gas leasehold acres in the Eagle Ford Shale project in South Texas.

The consideration for the sale will be $1.08 billion in cash at closing, subject to adjustment. In addition, CNOOC Limited has agreed to fund 75% of Chesapeake’s share of drilling and completion costs until an additional $1.08 billion has been paid, which Chesapeake expects to occur by year-end 2012. Closing of the transaction is anticipated in the 2010 fourth quarter.

As operator of the project, Chesapeake will conduct all leasing, drilling, completion, operations and marketing activities for the project. Over the next several decades, the companies plan to develop net unrisked unproved resource potential up to 4 billion barrels of oil equivalent (after deducting an assumed average royalty burden of 25%). Chesapeake is currently utilizing 10 operated rigs to develop its Eagle Ford leasehold and with the additional capital from CNOOC Limited, anticipates increasing its drilling activity to approximately 12 operated rigs by year-end 2010, approximately 31 rigs by year-end 2011 and approximately 40 rigs by year-end 2012. Approximately 900 wells are expected to be drilled by year-end 2012. Currently Chesapeake has 10 horizontal Eagle Ford wells in production with initial production rates of up to 1,160 barrels of oil and 0.4 mmcf of natural gas per day in the oil window and 4.0 mmcf of natural gas and 1,200 barrels of oil per day in the wet gas window. Chesapeake anticipates the project will reach its peak production of 400,000-500,000 barrels of oil equivalent per day in the next decade.

The assets are located principally in the counties of Webb, Dimmitt, LaSalle, Zavala, Frio and McMullen, and are located primarily in the oil window (~85%) and the wet gas window (~15%) of the Eagle Ford Shale and in the dry gas window of the Pearsall Shale. CNOOC Limited will have the option to acquire its 33.3% share of any additional acreage acquired by Chesapeake in the area and also the option to participate with Chesapeake for a 33.3% interest in midstream infrastructure related to production established from the assets.

Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, commented, “We are very pleased to announce our fifth industry shale development transaction and for it to include CNOOC Limited, China’s largest producer of offshore oil and natural gas and one of the largest independent oil and gas companies in the world. This transaction will provide the capital necessary to accelerate drilling of this large domestic oil and natural gas resource, resulting in a reduction of our country’s oil imports over time, the creation of thousands of high-paying jobs in the U.S. and in the payment of very significant local, state and federal taxes. In addition, Chesapeake’s embedded safety culture and integrated environmental protection strategies will be adopted to safeguard personnel and the surface and subsurface environment. Moreover, this project will advance the efforts of both the U.S. and China to reduce greenhouse gas emissions and accelerate commercial opportunities for the development of shale gas resources in China, furthering the objectives of the U.S. – China Shale Gas Resource Initiative announced by the White House on November 17, 2009.

“When completed, this transaction will successfully accomplish another component of Chesapeake’s strategic and financial plan outlined in May 2010 designed to increase shareholder value. This brings the combined proceeds from our shale development ventures, including upfront cash payments and drilling carries, since 2008 to approximately $13 billion. Chesapeake has continued to maintain a majority position in each of the five major projects subject to development arrangements ranging from 67% to 80%. The implied pre-development value of Chesapeake’s retained interest in those shale ventures is approximately $37 billion based on the valuations in the sale transactions.”

Fu Chengyu, Chairman of CNOOC Limited, stated, “As one of the world’s largest independent oil and gas companies, CNOOC Limited is keeping a close watch on the development of the upstream sector across the world, among which is shale oil and natural gas development. CNOOC Limited has the desire and ability to establish itself in this field in a suitable scale by cooperating with a leading company such as Chesapeake, which we believe will benefit both parties reflecting our win-win philosophy. Partnering with Chesapeake on this project to develop shale oil and natural gas jointly not only satisfies the spirit of Sino-U.S. cooperation in the energy sector, but also underscores CNOOC Limited’s responsible approach to climate change issues and its social responsibilities.”

Yang Hua, Vice Chairman and Chief Executive Officer of CNOOC Limited, said, “The cooperation with Chesapeake in shale oil and natural gas is consistent with our value-driven overseas development strategy. The execution of this project will benefit CNOOC Limited’s long term production and reserves growth and should produce considerable returns for our shareholders. Chesapeake, as the world’s leading company in the shale oil and natural gas field, has accumulated abundant experience on drilling and completion in various U.S. shale plays with world-class partners. We are therefore very confident about this project’s potential success.”

Gastar forms Marcellus Shale JV with Korean company Atinum

September 22, 2010
Source: Gastar Exploration

In a transaction valued at $70 million, US exploration and production company Gastar Exploration (NYSE:GST) has entered into a Marcellus Shale joint venture agreement with South Korean investment firm Atinum Partners Co.

Pursuant to the agreement, Gastar will assign an initial 21.43% interest to Atinum in all of its existing Marcellus Shale assets in West Virginia and Pennsylvania, approximately 34,200 net acres, and certain producing shallow conventional wells.

“This joint venture will allow Gastar to accelerate development of our Marcellus Shale assets while maintaining a low level of leverage and a high degree of financial flexibility,” said J. Russell Porter, Gastar’s president and CEO. “This transaction also realizes a significantly higher valuation for our Marcellus Shale assets than what has been reflected in our share price and thus made a joint venture the least dilutive method to finance development. We may utilize the proceeds from this transaction to help fund our Marcellus Shale development plans, future drilling and development of our East Texas asset, lease or property acquisition opportunities and potential debt reduction.”

For $30 million in cash and $40 million in the form of a drilling carry, Gastar is selling half of its Marcellus Shale acreage stake to the South Korean firm.

Gastar and Atinum are pursuing an initial three-year development program that calls for the partners to drill one horizontal Marcellus Shale well during the remainder of 2010 and a minimum of 12 horizontal wells in 2011 and 24 horizontal wells in each of 2012 and 2013.

Upon the completion of the funding of the drilling carry, Atinum will own a 50% interest in the 34,200 net acres of Marcellus Shale rights currently owned by Gastar.

Gastar will continue to serve as operator of all of the Marcellus Shale interests in the JV.

“We are excited about the opportunity to invest in the Marcellus Shale and to partner with an experienced operator such as Gastar,” said Kyung Soo Chung, president and CEO of Atinum Parnters. “This is our third investment in the U.S. energy sector in the last 12 months, continuing our strategy to actively invest in significant growth opportunities.”

The transaction is expected to close within 30 to 45 days and is contingent upon the receipt of certain required approvals from government agencies in the Republic of Korea and other customary closing conditions.

Additionally, an initial area of mutual interests will be established for potential additional acreage acquisitions in Ohio and New York along with the counties in West Virginia and Pennsylvania in which the existing interests are located.

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Gas companies, especially Chesapeake Energy and Talisman, are taking water out of the Susquehanna River by the millions of gallons daily at a water extraction facility in Ulster. A contractor I talked to said they also take water from local fire hydrants. This water is removed never be usable again. It becomes toxic waste. Violations of illegal dumping of this waste are not unusual.

Visit the county courthouse and you will see landmen and women spread out wall-to-wall as if they owned the place. County commissioners have complained that these people use the electricity for their computers and electronic devices, use the restrooms, and eat their lunches in the rotunda there, often leaving food on the floor. They seem to have no manners. And they have no need to rent office space as long as the county provides what they need at taxpayers expense.

This is an occupation. No military vehicles or uniformed people, but an occupation nonetheless.

pipelinerowinfo@yahoo.com

Contacting us at that address will get you connected to the Lemon Township Pipeline Group and we will be glad to share the information we have gathered on pipeline right of ways.

Should this be addressed, known too who and incorporated in all contracts
If they are on the up and up the land owners who lease and who ever else is involved they should be the risk takers. Each Government Branch should be informed to protect each one of us as individuals compared to our individual involvement.
Who is getting the benefits from the natural gas?
What effect will this have on my home base?
My home base in this order includes my home, my business or job, my neighbor’s, my town, my county, my state and my nation.
As a land owner in a State what are my property rights?
I am under the understanding that State backs my landownership through counties that I have ownership of property and guarantees me certain rights before or after new laws are in affect.
Will my taxes go up?
Evidently my mineral value has increased. If I would find gold on my property would my property tax increase if the right person found out?
Are present contracts legal?
Knowing that all or almost all of the contracts where written and signed before the knowledge of hydraulic fracturing process was brought up.
If I decide not to be party to this drilling and they drill or hydraulic fracture my Gas anyway, what happens to the gross capital from my gas?
This gross capital should go into a fund with bank interests, to be divided up among all people or companies entitled to there share if I would later change my mind also I should be able to put it in a will, too. This fund would also be used in civil law suits when a law is broken and be replaced by the loser or both in a tie, but is not to pay any compensation to anyone. By being able to will my gross capitol my fair share will not end up for just anyone to use and the replacement ensures there is a lest some deterrent against those who feel they can do no wrong to each other in a court of law.
From the land owner to the governor what is their responsibility?
Both owners of property have a responsibility to each other and one may endure a hardship but this hardship is limited.
When one owner uses there mineral rights and another doesn’t,
Isn’t it all involved; people and corporations; from the land owner to the governor, acquired the same responsibility and liability in either direction?
If something minor to major event happens to the environment, who is responsible?
If something minor to major event happens to my live stock, who is responsible?
If something minor to major event happens to my pet or pets, who is responsible?
If something minor to major event happens to a person or persons, who is responsible?
Do we need insurance?
Do I need a lawyer?
Is the supper fund large enough?
If minor do we have enough Community Service programs available?
This could spike a few jobs.
Do we need bigger jails?
There is voluntary and involuntary written in the laws that may put someone in jail.
If we do need larger jails who pays this?
Then who would do the rehabilitation of these people?
Green People would argue, give them a covered wagon, seeds, farm hand tools and let them live off that land.
Earth Quake is this going to be called natural in the sense that they broke the rock; the water and gas is loose.
We all know this may happen. I dig below frost for a footer knowing that the frost line varies year to year but could exceed the code.
Do they say anything about fisher’s large cracks in the earth?
Syracuse has one that shows it’s bottomless and how far dose this extend.
This pumping makes as much sense as it the city where to use this crack for city run off.

Gregory A. Xedis IV
http://www.originoil.com/
http://www.nzherald.co.nz/science/news/article.cfm?c_id=82&objectid=10626164
Ck it out
Is there a need to drill anymore if this is true one year hold will not be that long until the Air Force is done testing this out Exxon Mobile, Bill Gates Foundation and so forth
http://www.darpa.mil/index.html
http://www.treehugger.com/files/2010/02/cost-competitive-algae-jet-fuel.php
Greg Xedis

Distribution

Thank you for your letter but the point is not for me alone. I and the people of this state what answers to the questions put before you and are asking you too present this to the governor, the assembly, senate and the Texans for the answers.

Where is the path of the migration of the Monarch Butterflies?
Are they going to stop for the butterflies?
Where is the path of the migration of all mammals?
Natures Earth quakes are real; how far apart is these square mile fracking going to end up to be?
What comes back out of the ground is the real issue not what we put into it?
These Fracking fluids could fracture and dissolve the shale during also, well into the future. What most likely will happen is what they disrupt that is imbedded in shale will be the real danger at the time of fracking and later on.
http://www.marcgunther.com/2010/03/07/shareholders-tell-the-truth-about-fracking/
What’s the problem with fracking? The process, which uses millions of gallons of water and unknown chemicals, has been linked to a range of health and environmental problems, including contaminated drinking water in Pennsylvania, a massive fish kill in a creek along the border between Pennsylvania and West Virginia and a chemical spill that killed cows in Shreveport, Louisiana, as the Wall Street Journal has reported.
http://capitalbusinessblog.bcnys.org/index.php/2010/03/marcellus-shale-dinapoli-fights-for-investors-on-natural-gas-drilling/
“New York State Comptroller Thomas P. DiNapoli today said the $129.4 billion New York State Common Retirement Fund (Fund) will continue to press energy companies to disclose to their shareholders the environmental and regulatory risks associated with unconventional natural gas extraction including hydraulic fracturing.

Is the supper fund large enough?
Do we process the knowledge to make it right?
Can a cannery live in the area during the drilling and while the gas is being extracted.

Before I sign out one more thing I’m surprise Washington DC hasn’t said one thing to Pa about this Drilling as they are a close neighbor. Are they blind too? Here’s a Thought for the president buy all the patents that has to do with renewable oil and algae and release them to all citizens of our great nation with that get the economy back money but of coarse you can use those patents for your own use you just can’t sell the product or the system just use it for yourself.

Before I sign out One more thing I’m surprised that Washington DC hasn’t said anything with PA. being a close neibor New yorkers seem to be divided but they are not they band together to be the best state of the union. We consider everyone in a Decision

http://www.youtube.com/user/clearvilletimes#p/a/u/1/bqpXoHlM9YA

http://www.youtube.com/user/clearvilletimes#p/a/u/2/en0uW36_74E

Horizontal Drilling makes a stream gurgle with a geyser 3 ft high.
Gas company told landowner it was naturally occurring.
http://www.youtube.com/user/clearvilletimes#p/a/u/0/bWU_HNrn-30

Gathering lines require no permit in NYS. Transmission lines are permitted by the PSC (the so-called Article VII Process), once they reach a certain size and length. Permitting bestows Eminent Domain power on the corporation.

Look forward to your further input as you continue learning more about the pipeline situation in NYS.

About gathering lines:

“You also need to know some details about the pipeline:
*If it’s a gas gathering (production) pipeline, then it’s regulated by an agency in your state.”

This is from: http://un-naturalgas.org/weblog/2009/10/everything-you-wanted-to-know-about-pipelines-but-were-afraid-to-ask/ just above where I am writing now:

This statement is absolutely wrong. In NYS , gathering lines less than 125 PSI (there are lots in Chenango Cty.) are not permitted, not regulated, not inspected, not odorized, not mapped formally.

This info is from the Deputy Director of the DPS/PSC at a meeting in Binghamton, NY 10-26-09. It was functionally confirmed by several active residents of Chenango Cty.

The rules are different for higher pressure lines.

Stan Scobie, Binghamton, NY 11-5-09