The Herald, Sharon, Pa.

Local News

September 10, 2012

On the losing end

Couple leased land before boom

WEST SALEM TOWNSHIP — John and Mary Ann Sensesak live across the street from where Mercer County’s first shale fracking well will be drilled.

A pile of topsoil is supposed to shield some of the sounds of the drilling from them, but the couple isn’t concerned about the noise or possible harmful effects the drilling may have on their water well or the environment, John Sensesak said.

The Sensesaks don’t expect any positive affect on their pocketbooks either, John said.

“I’m very disappointed,” he said.

About a year ago, Mary Ann Sensesak recalled, they renewed a lease that netted them about $500 with Cobra Resources. That was before the Marcellus and Utica shale boom made natural gas drilling rights more valuable in the region.

They didn’t know about the shale boom, Mary Ann Sensesak said.

Some people are getting up to $3,000 an acre to lease rights to the gas in the shale rock formations beneath their land. The gas is released through a process known as “fracking” – short for horizontal fracturing.

Wells are drilled first vertically to reach the shale, then horizontally for miles to make a path for fluid that’s blasted into the rock to release trapped reserves of natural gas. The process can be a cash cow for the oil and gas companies and landowners who’ve leased the mineral rights to their property.

It also could open up a Pandora’s Box of potential pollution problems ranging from contaminants being released into the air to ground water being fouled by chemicals used in the fracking fluid to noise pollution from the drilling and the truck traffic to and from the well pads.

The Sensesaks aren’t worried about that; what they’d like is some money to make their life easier. John’s on disability and Mary Ann’s laid off right now, they said.

“I didn’t know this was going on,” he said.

They renewed their lease with Cobra, and that lease was picked up by Carrizo Oil and Gas, a Houston-based drilling company that’s getting set to drill the well.

The Sensesaks own about 20 acres, which at $3,000-per-acre now would have netted them a $60,000 check.

“It would have been sweet to have a chunk of change like that,” John Sensesak said.

The Sensesaks aren’t alone. Most of the landowners in the area already had leased their drilling rights to Cobra before the shale boom hit.

Some have assured him the royalties they get from the gas extracted will make up for it, but John Sensesak is skeptical, he said.

“Everybody I’ve talked to said you don’t have to worry, you guys are going to be fine,” he said. “We’ll wait and see.”

He’ll believe it when he “sees a check” with his name on it, he said.

“We don’t know what the outcome’s going to be,” he said.

A mile down the road, Dan Moore’s in the same situation, except he won’t have to look at the well head from his house.

“Same thing,” as the Sensesaks, he said.

“It’s leased,” Moore said. “We’ll wait and see. It is what it is.”

 

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