Listen to the Jan. 25, 2011 audio of the Chenango County Gas Advisory meeting, specifically at 19:55 on the plan to train to parolees to work in
the gas industry with the aid of a federal grant and 1:34 concerning the Davis well and burying the radioactive drill cuttings on-site.

http://changetheframe.com/audio/ChenangoCouty01-25-2011.mp3 (slow to load - please be patient)

Comments from members, the January 2011 Chenango County Natural Gas
Advisory Committee:

I think , uh ,Shane referred to the taking of drilling cuttings at the is it the Bradford
County landfill?, (other member) I believe so. / We had a test on the Davis well cuttings,
20 to 25 tons, I think Norse did a very expensive , a $2000 test, um , which not being a
scientist, uh , I am not going to comment on what it all meant , um, in the end the county
did not take the cuttings at the landfill and they were buried on site. Just to explain what
cuttings are, that’s uh Chenango County uh, drilling cuttings are dirt and rocks from
under the ground before any chemical treatment. One of the issues discussed back and
forth was radiation. It was a minimal amount of some types of radiation and they may
not have tested for another. We had a detailed analysis by Upstate Laboratories. Which
is often used by the um county, a reputable laboratory and my recommendation would be
that we send that soil analysis to (Tracy Banks? not very audible) and do a study on that.
(Other member)She … strictly the Marcellus. / I still recommend sending it to her, see if
she’ll look at it.

Aside from Kim Michels below:

(During the January Smyrna town board meeting the previous week, a letter from Norse
dated January 5th, 2011 was presented expressing intent to drill for natural gas within 3 to
4 weeks on the property of Kyle Davis on Davis Road in the town of Smyrna as well as
on the property of Mike Chiuli on NYS Route 80.)

(According to a September article on Upstate Labs, who did the testing on the Davis well, 

http://www.syracuse.com/news/index.ssf/2010/09/epa_probes_upstate_laboratorie_1.html

About 50 EPA officers were at the business to serve a search warrant in response to
complaints of data fraud and illegal waste disposal, Scala said.)

Also from this Jan 2011 audio

(Steve Palmatier the CC nat gas advisor talking)

Put on by … Is, Altoona, NYS, um, on educating the workforce in the marcellus shale.

PA applied for a federal grant. $4.8 million from the Department of Labor to train the
workforce out at. Um

PA, Penn State took the majority of that money to develop uh programs, educational
programs and to develop jobs, assessment programs.

NY was a co-signator on the grant application and we are in line to receive about
$930,000 for our educational efforts. The money cannot be released until the approval of
drilling and horizontally fracturing in shale. Um. But … We do have the right, the right to
access programs that are being developed, at least the outlines of them.
(at ~ 21:35 on audio)
Um, in PA um these grants ae being leveraged, its interesting, um , I sat at, one
night with dinner with a group from the Federal Department of Parole. They
have roughly $1/2 million that they could use to train parolees to work in the
industry. Uh, $250,000 of that was direct payment to the educational institution or
the institute for the education and the other $250,000 was direct wage offset to the
employers. Um, another group that has some money to spend, um, again to train their
people, was the department of veterans affairs and they looked like they, running around
at about $900,000 they were going to use for leveraging.

Um, that grant Rena was good enough to research for me, um, I made Morrisville and
BOCES aware of it uh, I think we should, you know or Boces and Morrisville should be
ready to apply for that money if and when it’s released.

From 2011 planning board minutes:

Natural Gas Report

Mr. Palmatier stated he had attended a workshop in Altoona, PA December 6 & 7, 2010 relating to educating a
workforce for natural gas exploration. At this time in Pennsylvania (PA) 20% of the natural gas employees are local with the remaining 80% from outside the area. The goal is to reverse this ratio through education opportunities. Mr. Palmatier has been working closelywith DCMO BOCES and SUNY Morrisville in Chenango County to develop education programs that would result in natural gas employment opportunities. They will be hosting programs to generate interest from potential students. New York State is one of several states included in the award of a $ 4.5 million multi state federal grant with $900,000 available to NYS. Preparation and development of a curriculum focusing on the training for horizontal/high volume drilling will entitle NYS to the grant funds when high volume hydro-fracking begins in the state. Pennsylvania leveraged some funding through parolee and veteran group training programs. Educators in PA and West Virginia are very positive about gas drilling.

Housing shortage in PA due to influx of out of state gas workers

- kids put in foster care

http://thedailyreview.com/news/bradford-county-placing-kids-in-foster-care-due-to-housing-shortage-1.908485

http://thetimes-tribune.com/news/skyrocketing-rent-in-bradford-county-influx-of-gas-workers-creating-shortage-of-affordable-housing-1.563248?firstComment=20#axzz1KKWRA2up

On earthquakes

Dallas Mayor 2010:

http://blogs.star-telegram.com/barnett_shale/2010/09/miller-wary-of-drilling-in-dallas.html

http://blogs.star-telegram.com/barnett_shale/2010/09/miller-wary-of-drilling-in-
dallas.html

Read more:

http://blogs.star-telegram.com/barnett_shale/2010/09/miller-wary-of-drilling-in-dallas.html

Here is a wrap-up of some of the recent stories about earthquakes related to gas drilling:.

•

40 earthquakes in 5 days in Faulkner Co. Arkansas
Some suspect this is related to gas drilling (must watch the video for this -- not in
the text) http://arkansasmatters.com/fulltext/?nxd_id=359465

•

5.1 Quake in Tulsa/Norman OK
http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20101014_11_A1_CUTLIN248290&allcom=1

Here is a map of the quake's epicenter:
(Oil and gas drilling is occurring throughout the state)

•

FRAMETOWN, W.Va. (AP) — Eight small earthquakes in central West
Virginia since April have Chesapeake Energy and the state Department of
Environmental Protection discussing the possibility of seismic monitoring
near a disposal well for gas-drilling fluids.
http://www.herald-dispatch.com/news/briefs/x2109628787/W-Va-studying-link-between-quakes-disposal-wells

•

A study of seismic activity near Dallas/Fort Worth International Airport by
researchers from SMU and UT-Austin reveals that the operation of a saltwater
injection disposal well in the area was a "plausible cause" for the series of
small earthquakes that occurred in the area between October 30, 2008, and May
16, 2009. http://geology.com/press-release/salt-water-injection-earthquakes/

From June 14, 2011 Planning Board Minutes

www.co.chenango.ny.us/Planning/PBMinutes.pdf

Natural Gas Report

Ms. Jones stated Mr. Palmatier would not be able to attend the meeting due to an injury. Mr. Palmatier submitted a
report to Ms. Doing which stated as follows; DCMO BOCES is working on more programs related to the natural gas industry. They have received two used all-terrain fork lifts in order to offer some industry training. The Leatherstocking Pipeline has been approved by the Village of Sidney where they intend to supply natural gas to the Amphenol Corporation andMead West Vaco. A public hearing will be held in Bainbridge tonight and due to the number of people attending the first hearing, another will be held in Coventry on the 29th. The Leatherstocking entity is a collaboration between Corning Energy and Mirabito Fuel Group. The entitywould be a public utility allowing them to have eminent domain rights. If an IDA or municipality owns the tap, it would be cheaper. Norse has sited five wells between County Route 10 A and 23. They are mainly located in the Towns of Plymouth and Preston. One of them has been applied for (Franklin 1H). Norse intends to drill 25-30 wells this year however there is only one rig in the county right now. Gastem has three permits in Otsego County. In the quarterly report

--

Mr. Owen asked how the Leatherstocking pipeline would branch off for use by private parties.

Page 2 of 4

Ms. Doing stated they can branch it off later and offer it to residents but right now they are working with businesses who have agreed to use it. Norse has all of their right-of-ways secure to theMillennium line. Mr. Guinn stated if natural gas was offered to residents of the Village of Sidney and Bainbridge, the line would be quite extensive.

-

Owego, but Mr. Palmatier asked them to come into Chenango County and look around. One of their facilities treats
frack water. The facility treats the water enough so it can be reused by another company. There is no discharge into
streams from the facility. Mr. Palmatier looked at paperwork for the Cherokee site in the Town of Bainbridge. The
Cherokee site is a designated brownfield and the engineering firm was cautious because of it. Mr. Palmatier has put
them in contact with another PA firm because they have experience with working at brownfield sites and are also looking for a partner. The Chazen Companies may also be interested in working with this company.

Chairman Thomsen asked how large the water treatment tanks were. Mr. Palmatier stated they are the same size as the “Rain for Rent” tanks. The company is looking for a building of 20,000 sq. ft with 14 ft ceilings. Mr. Palmatier is looking in the City of Norwich, Village of Greene, and Sherburne for such a facility. Chairman Thomsen stated Valley Supply in South New Berlin will be vacant soon and could be a building of use. Mr. Palmatier stated they needed railroad access. Evan’s property on Cherry Street in Greene is looking like an attractive place. Ms. Doing commented the railroad can get into North Norwich. Mr. Palmatier stated he is looking at the Earl B Clark Industrial Park and old sauerkraut factory as possibilities. Another company is looking for a gravel bed so they can do paving. Mr. Palmatier stated the sGEIS looks to be implemented in the summer. Mr. West, a gas law attorney who helped draft the original sGEIS will be at the meeting where this will be a topic. Mr. Carson stated there is a meeting for geologists in Syracuse this month. Mr. Palmatier stated this is the meeting West will speak at. At last years meeting Prof. Bruce Selleck spoke about the geological faults.

ARE THE PROPERTY RIGHTS OF TOWN RESIDENTS BEING STOLEN?

A Public Hearing in the town of Sidney has been scheduled concerning whether or not to sign a franchise agreement with Leatherstocking Natural Gas Co., LLC which would allow the company to lay natural gas pipelines under town roads and in the right of ways in the town.  This will be held on Thursday, August 11th at 7pm at the Civic Center on 21 Liberty Street.  This may be the final opportunity for residents of Sidney and other towns to be affected to have their say.  According to an inside source, the informational hearing was held with no notice to the public.

The Village of Sidney signed an agreement in February.  The other two towns involved in the start-up of this controversial project are Bainbridge and Coventry.  They had packed public hearings in both towns with some people leaving when unable to get in.  Despite objections in the form of petitions which outnumbered the number of speakers on both sides during public hearings, both towns are moving ahead with negotiations although neither town has signed as of yet.  Both towns have had requests for a poll of the townspeople as the project will have such a life changing impact on the townspeople.  So far those requests have been ignored.  Plans for the initial pipeline start with the Houben well on Buckley Hill Road in Coventry, follow Rte 206 to Bainbridge and Route 7 (possibly I-88) to Sidney with the two "anchor" companies being Amphenol and Meade-Wesvaco.  Franchise agreements with all three towns are needed to make this project work.  Sidney holds the customer, Coventry the first gas well and Bainbridge in between.  In addition, these agreements would be the first step in gaining public utility status for the company which it needs to make this work.  If these are obtained, they sign contracts with the producer (Norse), the anchor companies and then go to the PSC.  Considering a comments quoted on the Unatego Landowner Coalition website, by the paid Chenango County Natural Gas Advisor, Steve Palmatier, it would seem that the best chance for stopping the pipeline, if that is what people want, resides with the towns.  Steve Palmatier noted the absence of an east/west pipeline.  Such a conveyance would open up a lot of new territory.  Political help with the PSC would be useful in this area. /Steven Palmitier summed up the general tone of the meeting.  “How can we make it easier for a driller to do business in our area?”

Many residents are as yet unaware of the proposed pipeline or the impact it will have on their lives and properties.  Some concerned residents who are aware of the issue, believe that this company, the initial gas producer, Norse Energy and the town governments are taking advantage of this ignorance to rush the deal through before citizens even know what's happening.

They have many concerns, but the two most controversial, revolve around the loss of property rights to a private company by giving it the right to use public right of ways,  and possibly the right of eminent domain.  A third is safety and health issues related to leaking or exploding pipelines as well as compressor stations and the VOC's they emit which are measured by the tons and can be observed by checking the DEC permits for the Dunbar Compressor station in Windsor.  http://www.dec.ny.gov/permits/74110.html  Another is that if this pipeline goes through, controversial drilling will ensue en mass.  The small Town of Coventry alone, quoted an anticipated 400 wells during a meeting some time ago with an expectation of several new wells just recently when the pipeline was proposed.  Despite the moratorium and popular belief, drilling (and accidents), have continued in NY.  One such accident was on the property of Assemblyman Crouch's uncle Charles Crouch, on Soule Road in the town of Lebanon described on page 2 for the months of March and May www.co.chenango.ny.us/Planning/Minutes2009.pdf  and also on pages 11/12 of http://www.scribd.com/doc/22163083/Drilling-Spills.  The assemblyman admitted to the family relationship though not knowledge of the incident, at a landowner coalition meeting several months ago. (A description of aquifer contamination and contaminated water wells in the town of North Brookfield, NY is also mentioned in the minutes.)

The toxic chemicals mixed with water are still being used but must be kept below 80,000 gallons while the moratorium is in effect.  The use of directional drilling under streams, wetlands and rivers for pipelines is an added concern in part because of their effect on the environment but also due to complaints of drinking water being affected in other areas. (Sources may want to remain anon.)
 
1) The use of Right of Ways that run through not only roads but private property.   This term private property seems to be controversial.  Most residents who are paying taxes on the property believe they own to the edge of the road or the center of the road.  The town boards and the company consider the right of ways as not belonging to the property owner.  ROW's on state roads within a town can extend as little as 25' or up to 200' from road center according to a DOT representative.  An example given was the juncture of State Roads 206 and 41 in Coventry.  The NE corner - 85', NW -50', SE and SW start at 33' and jut out quickly to approximately 100' according to Mike Dale, DOT engineer.  To assuage fears Supervisor Phelan said at the start of the Coventry Public Hearing that the ROW's on town roads are 25', leading residents to believe that all the roads within the town are 25' which clearly is not the case.  Even at 25', it would still end up on personal property with or without the consent of the homeowner.  Town, County,  State and interstate roads all vary according to officials and then there are the ROW's used by NYSEG which can also be used if an agreement is made between the two companies, as well as the towns.  In addition there is also an issue of whether ROW's are owned or are simply easements.

This very thing seems to have been questioned by the DEC in a letter to Supervisor Phelan in June.  "The Department would like to express its' concern regarding the Town's decision to grant public utilities the use of right-of-ways for natural gas distribution pipelines." and "In most cases, State Reforestation Areas own fee simple title across or to the center lines of the Town road beds.  While the Town maintains a ROW on these roads, it has no authority to transfer that right to a public utitlity."  and "...may take an act of the Legislature."  The response by John Phelan, Sr. in July:  "It may very well take State Legislation to grant these right of ways.   "In the event they are needed, I'm sure that with the right compensation package the State Legislature would consider same.  You may wish to take note of the DEC Final Plan for State Land 33 in the Town of Coventry; this plan includes potential drilling sites, water resources and pipeline routes on State land."

2) The right of this company to gain eminent domain power, which generally accompanies public utility status has been a contentious and confusing issue.  Confusing because the story changes depending on whether the desire is to intimidate or appease the residents.  When the proposal first came up, Phelan raved about the benefits the town could get, (none of which seemed to involve residents) because Leatherstocking needs "our" franchise to make this work.  Then, in response to a resident's opposition to signing the agreement, Phelan stated, "They can do whatever they want because they've got eminent domain.  If we tell them no, they'll sue us in court for eminent domain and the state will force it through.  They'll bulldoze this town and turn the whole place into a nuclear waste dump just like they were going to eliminate this town 20 years ago."  (~23min pl brd audio).  At the (2nd?) public hearing, he stated, "This local delivery company does not have the power of eminent domain.  They cannot go off the public ROW.  All the town ROW's are 25' from the center of the road.."  From Coventry plans - Use of Eminent Domain on case by case basis and requires public referendum. (attachment)
Leatherstocking representatives and/or town board representatives now claim that:

This is local gas for local people - Phelan mentioned planned connections to Greene, Cooperstown and Binghamton and Leatherstocking mentioned Windsor, Great Bend and Hallstead and that they had already spoken with Laser(which connects to the Millenium (and the ports?)) The towns of Afton and Unadilla have also been mentioned.

Compressor stations will not be needed -  During meetings, Leatherstocking mentioned a possible compressor waaay down in Binghamton.  Said that while they don't plan to have a compressor locally they didn't know what Norse will do.  In draft of Coventry plans - Compression stations must comply with Site Plan Review.

This will not initiate the drilling of more wells -  Phelan had mentioned how Norse was unable to complete their pipeline, in part due to financial issues and in part due to being unable to get enough landowner agreements.  Norse wants to drill more wells but can't if the gas has nowhere to go.  Orphan wells he called it.  120 wells have been drilled in Smyrna.  (twn brd audio may)(Smyrna has a pipeline.  It also has the Davis well, where 20 -25 tons of drill cuttings which were refused at the landfill due to radioactivity were buried on-site.  The cuttings were tested by Upstate Labs which had been raided and under investigation by the EPA under accusation of fudging tests.  Mistakes had been made with this testing and Tracy Banks was going to be asked to re-test after the fact.  A suggestion by a resident, that Chenango County might want to find a new lab was rejected at the Chenango County Gas advisory meeting.)   Described on chenango cty gas comm audio/PA news article.

Despite reassurances on safety, town and village proposed agreements and plans address these issues from a financial standpoint to protect themselves. For example : $5,000,000 umbrella liability coverage at all times including explosion coverage/

The Company agrees to collaborate with the municipalities' fire department in an effort to mutually develop emergency response procedures relating to natural gas emergencies/ The Company shall comply with all NYS PSC requirements related to Emergency Response Services related to gas leak calls./  Gas company shall provide training and emergency plan for local fire districts and EMT's.
Likewise, Leatherstocking formed as an LLC to protect the owners' and the parent companies' assets in the event of a disaster or lawsuit.  Only the assets of Leatherstocking would be subject to loss.

According to plans obtained at the Coventry town hall,  pipeline routes include Stiles, North, 206, Spisak, Wylie Horton, CR 30 and Stone Hill roads.
All those interested are encouraged to attend the public hearing.  This may be your only opportunity to speak on the issue.  For those who are unable to attend, letters and calls to the town boards involved is another way of expressing your opinion on the issue.
There is a group in Sidney who will sponsor an educational event at the Sidney Library on Monday, August 8th from 6-8pm featuring Chip Northrup, formerly of ARCO.

For those who are interested,  the Coventry Examiner website provides information on this topic and NYRAD.org plans to provide on-line petitions opposing the pipeline as well as information.

Sincerely, Kim Michels
607 639 1174
619 Sprague Rd.
Afton, NY 13730
Concerned Coventry Resident
Member of NYRAD (New York Residents Against Drilling)

Source Information Below:

(Please note: the audio files below take quite a while to download for listening. You will need to be patient and turn up your volume.)

http://changetheframe.com/audio/110504_002_1_1_Coventry_May_Planning_Board_Mtg-Seismic-Lthrstg.mp3

http://changetheframe.com/audio/110511_001twn%20brd%20cov%20may%20vt%20on%20ssmc%20lthrstk_1.mp3

http://changetheframe.com/audio/110525_001_Coventry_Leatherstocking_Info_Hearing.mp3

http://changetheframe.com/audio/four%20county%20fracking%20forum-processed.mp3

4-County Gas Collaborative – Chenango, Delaware, Otsego and Madison (and now it also appears Broome) recorded

Audio from January 2011 Chenango County Gas Advisory Committtee

http://changetheframe.com/audio/ChenangoCouty01-25-2011.mp3