ENERGY & RESOURCES AD HOC COMMITTEE

OCTOBER 25, 2010

** NOT APPROVED **

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Members: Kevin LaForge, Fred Sinclair, Glen Benson, Curt Crandall

Others Present: Dwight Fanton, John Margeson, John Foels, Brenda Rigby-Riehle, Mitch Alger, Sherry Grugel, Tom Barber, Sherry Dewey-Collins

CALL TO ORDER

The meeting was called to order by Chairman Kevin LaForge at 11:04 a.m.

APPROVAL OF MINUTES

The minutes from September 27, 2010 were reviewed. On a motion by Fred Sinclair, and seconded by Glen Benson the minutes were approved 4-0.

REPORTS / UPDATES

DVD “All Fracked Up – A Satirical Documentary” – Chairman LaForge reviewed the DVD and reported that although it had definite satire, it also had some good points. Tom Barber commented he has another DVD to share with the Legislative Board which has less satire, “Marcellus Shale Gas Play.” Legislator Sinclair reported that the Assembly has a challenge in that the NYSDEC is taking away the “home rule.” It will be interesting as some will challenge the use of roadways, etc. and implement ordinances. The DEC took away the “home rule” in 1982 and the public won’t give it up very freely. Chairman LaForge announced that Pete Grannis, Director of NYSDEC, is no longer employed with the DEC. T. Barber commented that certain townships may question the idea of businesses and companies moving into the area and being listed as a ‘person’ with regards to split-estate issues.

Broome County - A Colorado company previously offered to by rights in Broome County with a modified offer of $3,000 per acre. The offer was tabled until 11/18/10 for vote.

Dimock, PA-Pennsylvania DEP – Half of the DVD video mentions this situation. PA DEP will spend $11.2 million to put in a water system. T. Barber reported the bank is down to $6 million for certified residents. There is question whether to spend money on that many people.

McKean County Meeting Update – Chairman LaForge and Legislator Sinclair met with Bob Veilleux, Economic and Community Development Coordinator for McKean County, which is associated with Penn State University. The County Commissioners have requested Mr. Veilleux to serve as the Marcellus Shale liaison for the region. The meeting was held at the BOCES center to discuss issues and strategic planning for the activities associated with development of the Marcellus Shale Gas fields in PA and NY. For details, see attached Energy & Resources Committee Report, dated October 5, 2010, provided by Legislator Sinclair.

There was discussion upon completion of Legislator Sinclair’s report. There have been 105 permits issued in Potter County at this point with 60 main pods. Each pod has one or two wells with an estimated 30,000 wells in the region which may well equal 3x the number of pods. There is an operational cost of $26,000/day to have drilling machines in place whether sitting idle or drilling. As one starts, it is a continuous process.

There was discussion regarding the release of information, or lack thereof, with chemicals in place. Legislator Sinclair remarked that EPA has been pressured to release information on chemicals we have and there are laws regarding Haz Mat notifying property owners of hazards in the area. Chairman LaForge commented that the oil and gas industry has been given an exemption from the EPA Regulations. Mr. Barber stated establishing business studies for both water and air quality, not for just municipalities, but private wells too. There was discussion regarding hiring a water specialist for this with some assistance of landowners to get baseline done.

S. Grugel reported on the Coudersport Annual Chamber Dinner meeting she attended where Bob Veilleux gave an excellent power point presentation explaining the Marcellus Shale Industry; what it is, phases of development and existence of proposed marketing. See attached power point layout for more detail. There was consensus that Allegany County is now in the perfect position to market ourselves to Pennsylvania.

GOOD OF THE ORDER

No comments.

ADJOURNMENT

On a motion by Fred Sinclair; seconded by Glen Benson and carried, the meeting was adjourned at 11:43 AM.

Respectfully submitted,

Cathleen L. Whitfield

Recording Secretary