Michele Siekerka, the chairman of the Delaware River Basin Commission (DRBC) who represents New Jersey Governor Chris Christie on the commission, recently issued a statement outlining the steps being taken by DRBC to reach a decision on natural gas drilling within the Delaware Basin. DRBC is apparently evaluating scientific studies and new regulations, practices and standards adopted by state and federal agencies. DRBC is also performing water quality and quantity monitoring to establish baseline conditions prior to the start of natural gas drilling activities within the Delaware Basin. Siekerka emphasized that DRBC is continuing to work towards a consensus both within and outside of regularly scheduled business meetings. See our previous posts regarding DRBC’s drilling moratorium for additional information.
Hess Corporation and Newfield Exploration Company recently terminated lease agreements with about 1,300 property owners in Wayne County, Pennsylvania, where the Delaware River Basin Commission (DRBC) has imposed a moratorium on gas drilling since May 2010. The moratorium is not intended to be permanent, but only until the DRBC develops environmental regulations for drilling in the watershed. The landowners received a combined $150 million (at $3,000 per acre) initially, and would have received an estimated $187 million in royalties had the wells been drilled. The landowners are free to negotiate with other energy companies, but it is unclear whether any drillers would be interested given the moratorium. Several weeks ago, the Northern Wayne Property Owners Alliance threatened to sue the DRBC “to regain [their] right to access [their] mineral estates.”
The Corning Leader reports that, in response to Governor Corbett’s recent letter to the Delaware River Basin Commission, a 1,300 member landowner group has threatened to sue the DRBC. The Northern Wayne Property Owners Alliance sent a letter to the executive director of the DRBC threatening a lawsuit unless the Commission schedules a vote on regulations that would allow drilling to begin. The DRBC imposed a moratorium on Marcellus Shale drilling in 2010.
Responding to Governor Corbett’s recent letter urging the Delaware River Basin Commission (DRBC) to take action to end its moratorium on gas development, the Delaware Riverkeeper Network sent DRBC a memorandum defending the moratorium and responding to leaseholder claims that DRBC’s inaction constitutes an uncompensated regulatory taking. Delaware Riverkeeper emphasized that the moratorium does not deprive landowners of all economically beneficial use of their land, and that economic loss resulting from the moratorium is mitigated by the ability to use the land for other reasonable purposes. DRBC is scheduled to hold its next public hearing on Tuesday, July 16, followed by a business meeting on Wednesday, July 17.