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A small group of protesters gathered outside the Ohio University Inn Friday morning, to voice their concerns about a visit to Athens by an oil-and-gas drilling company that is seeking to lease land for drilling from county property owners.
As the demonstrators waved homemade signs outside the hotel, inside, Cunningham Energy spokeswoman Judith Renzelli was telling a reporter that the West Virginia-based company has ambitions to lease as much land in Athens County as it can get its hands on.
"I'd like to lock up as much as possible," Renzelli acknowledged. "I'd like to lock up the whole county, the whole area."
She confirmed that Cunningham's interest is being driven by the prospects for extracting oil from the Utica shale bed, which underlies the county.
"This is (part of) the Utica shale boom, absolutely," she said. "We're trying to be ahead of the game, and right now is the time to do it."
In an ad that ran Thursday in The Athens NEWS, Cunningham announced that it would have representatives at the OU Inn Friday and Saturday, "hosting a lease signing to discuss the potential of leasing your acreage."
As The Athens NEWS has previously reported, about 30 local landowners have signed drilling leases with a Zanesville firm, the Oxford Oil Co. Cunningham appears to be the next energy company that is sniffing around the county looking to lease land for oil and gas wells.
Though expert opinions seem to differ on how much potential for oil and gas production the Utica shale beneath Athens County represents, Renzelli said Cunningham is "very confident" that it can extract oil in profitable quantities, using the controversial "horizontal fracturing" (or "fracking") drilling technique.
"It's going to be bigger than the Marcellus shale," she predicted. "It's probably going to be the biggest that's hit. It's a big boom right now."
The Marcellus shale, which is above the Utica, has been driving a natural gas drilling boom in places like New York and Pennsylvania for the last few years. The Marcellus does extend partway into Ohio, but does not get as far west as Athens County in any worthwhile condition.
Oxford has said it is signing standard leases with landowners, for $10 an acre for 10 years. Renzelli said the lease offers her company is ready to make will vary with the size of the parcel, the likelihood that it will produce oil or gas, and other factors.
Leases will probably be for five years, she said, and per-acre payments will probably range from "a couple hundred to a couple thousand" dollars. In addition, she said, landowners will receive royalties on any oil or gas extracted, to the tune of 12 to 15 percent.
"We're going to work with (landowners)," she stressed. "We want to lease."
MEANWHILE, A HANDFUL of protesters stood out along Richland Avenue, waving signs warning of the environmental dangers of horizontal hyrdraulic fracturing (aka, fracking or fracing), and alerting anyone who was coming to investigate leasing that they should be careful what they sign.
Local attorney Don Wirtshafter was available to offer advice to anyone considering signing a lease with Cunningham.
Athens resident Dick McGinn said he believes the repeated assertions by industry representatives that fracking is perfectly safe are so much hooey.
"I would say, I will give $100 to anybody who can get anti-fracking insurance," McGinn argued. "I'll pay the first $100. How's that for a challenge? They won't get insurance, because the insurance companies know that this is very dangerous for the environment. It's even caused earthquakes in Alabama."
Defenders of fracking point out that the chemical- and sand-laden water pumped deep underground to break up shale beds is so far below the water table that it's virtually impossible that it would contaminate drinking water supplies.
In an email interview last week, professor Robert W. Chase, who chairs the Department of Petroleum Engineering at Marietta College, argued that fracking, if properly regulated as he insisted it is in Ohio, won't endanger water supplies. "All water and chemicals used in the fracturing treatment would have to somehow penetrate six layers of steel and cement to contaminate the aquifer," he said.
McGinn suggested, however, that this ignores the risks associated with the entire process, including the handling of the toxic soup at the surface.
"It's like saying, 'Drinking arsenic is not a problem,'" he argued. "It goes right down into your stomach smoothly… The only problem is, it gets into your bloodstream and kills you."
Chase, who has consulted with a number of energy companies as well as the U.S. Department of Energy, said that the Ohio EPA and ODNR regulate what happens aboveground, as well as belowground. "The spent frac water is not pumped into creeks, lakes, sewage treatment plants, etc. because that practice is forbidden in Ohio," he said. "It must be flowed back into lined pits approved by the ODNR and the Ohio EPA or into trailers on location. It must then be hauled off location and properly disposed of in a manner that satisfies ODNR and EPA regulations. No exceptions!"
AT ONE POINT FRIDAY, the protesters got a visit from three OU Inn officials, inquiring about the demonstration, and asking that it not interfere with guest auto traffic into the hotel parking lot.
"We would definitely encourage you to do what you want out here," stressed hotel General Manager Ralph Mordocco, adding that the hotel is not taking sides in the fracking debate.
"At this point, we're neutral on the case," he said.
When Wirtshafter asked if the demonstrators could put a placard up in the lobby, to compete with that of Cunningham, Mordocco said no – even though Wirtshafter pointed out that he is a paying guest at the hotel.
The protesters had their revenge, however, when the attorney contacted the Athens code office about signs outside the hotel advertising the leasing event. These signs apparently violated the city's sign ordinance, and had to be removed.
RENZELLI SAID CUNNINGHAM has no beef with the protesters.
"We're not that concerned about (the opposition)," she said. "We appreciate their input… but we do have to realize that this is a natural resource… it's going to benefit people in this area."
She added that she is quite confident fracking can be done safely.
"We don't want to harm anybody," she promised.
Beware, people. These companies promise you these "huge" payments, but you're left with the aftermath. They are out to make a profit, period. Youu and your land's wellbeing is not a concern. They do not care about you or your land. If they weren't going to benefit greatly by giving you a joke of a payment, they wouldn't be here. If you care about this land, and our children's future, think twice!! I was a regulator for 15 years - I am a registered engineer in Ohio. I have a master's degree. The EPA and DNR WILL NOT protect you. They are pro-job first, environment second. (by the way, don't expect local jobs from this... Employees will all be imported, and it wil be short term!!).
First, if you are so proud of your "resume" why is your name not posted so it can me verified?
Second, Cunningham is a small, local based company based in Charleston, WV. Do you think it would intentionally harm the land on which it and its owners live?
Additionally, oil and natural gas are necessary to the way of life in the United States. While many are searching for alternative energy, until it is mainstream, the natural resources must be withdrawn from the earth.
There are regulations in force to ensure the safety of water, and property. Each lease may be adjusted to accomidate the individual landowner when dealing with the surface.
Those people protesting out near the street are a distraction to drivers and could cause an accident.
The land owners who are considering getting in on the natural gas boom need to check things out throughly. Land owners, you are the ones in control and you should negotiate the best deal you can. Investigate as much as you can before signing anything.
Those of you who don't own land can cash in also by investing in some of these companies that are natural gas related. Check them out on financial pages and investigate a little about the company you're thinking of investing in. Try to invest wisely especially in this up and down market.
Well, hello, BRIAN, my name is MIKE. Now that you can varify my identity, since when is Charleston WV part of Athens, OH? I didn't realize that Athens was in the owner(s) of Cunningham Energy's back yard!! I'd like to see instances where they drillee on land located where they live on their secluded properties. And trust me when I say this: if any gas drilling occurs on their property, they are profiting greatly and the precautions taken are multiplied by 1000.
And, while many are "searching for alternative energy", the oil and gas industry is getting HUGE subsidies from our government. Subsidies for renewables pale in comparison. That's why fossil fuels are "mainstream" and will continue to be until the nonsense stops.
And, you obviously have some type of credentials that make you worthy of refuting the majority of clamate scientists in the world? I'd like for you to share that with us all, BRIAN. Oh, yeah. I forgot. Anyone that has a background in science or engineering is a socialist.
Regarding regulations: the EPA cannot regulate these activities through the Clean Water Act thanks to exemptions granted from your buddy (I assume) Dick Cheney. The "regulations" in place are through a pro-fossil fuel department of the current pro-oil and gas state government. Get your facts straight before you make bogus claims.
If these companies took a real interest in protecting the communities in which they operated, there would be no issue. Google "Marcellus Shale Accident" (or fire, or explosion, or spill, etc, etc) to see how safe it is and to rest assured that all of the "local" companies are being careful with their "neighbors'" land.
Yep, I am pround of my resume BRIAN.
Love,
Mike
Does anyone else read things like this:
"I'd like to lock up as much as possible," Renzelli acknowledged. "I'd like to lock up the whole county, the whole area."
and become suspicious. What Renzelli is admitting, through this statement, is that she is impatient and greedy. Hmmm.
I also noticed that she says (about the Utica Shale layer underining Athens and surrounding areas) that "It's going to be bigger than the Marcellus shale," she predicted. "It's probably going to be the biggest that's hit. It's a big boom right now."
If you were to attempt to sign a lease with them, and asked why they are offering 1/10 of what they are offering in PA, they would have told you that it is because they haven't drilled into the Utica yet, and don't want to offer "big bucks" and find that the Shale is not as "well producing". So, they offer less money under the guise of not knowing whether or not it will produce well... when it suits them.
Yet, when they think that you may perhaps be thinking of the royalties, they tell you that the opposite is true. They tell you what they think you want to hear, or what they want you to hear, whatever best benefits them. This is a pattern for these companies.
They offer jobs, yet won't hire us. I have spoken with someone in the industry who told me that the employees for these Frackers are few and well-known by one another (NOT HIRED LOCALLY!).
These people are feeding folks lies, so that they can bring themselves to sign over their land (which will soon be useless and without worth... unsellable, even), and back-stab their neighbors who will also suffer the repercussions of dessimated land and water sources.
It is so disturbing... and all for the sake of making rich people richer. Come on folks! People and animals are dying because of this practice... let's put an end to it! Let's unify against it!
A very concerned land owner!