Rich natural gas formations, now thought to be accessible in many upstate New York communities, are bringing energy companies from around North America to this region. These companies are in the business of leasing, exploring, and extracting natural gas for use in homes, industries, and institutions across the Northeast. If you’re a landowner in upstate New York, then you may want to know more about gas leasing and exploration.

Municipal officials are also important stakeholders in the Marcellus Shale exploration. There are questions relating to drilling and environmental impacts as well as an array of community and economic development issues.

Landowners in New York own the rights to the natural gas beneath their properties unless they have transferred these rights to another party through a lease or conveyance. Most landowners don’t have the necessary capital or expertise to successfully extract their gas, so leasing their rights to an energy company in exchange for rent and royalty payments allows them to take advantage of this valuable resource. As with any important business transaction, you should fully understand the terms of the agreement and research the market before signing. Numerous lawyers across New York have experience in assisting landowners with gas leases, and their services are often worth the investment. For a list of local lawyers who can help you, contact the New York State Bar Association's Lawyer Referral and Information Service at 800-342-3661.

For more detailed information about natural gas exploration in New York State, including FAQs, fact sheets, maps, and other resources, please visit: http://gasleasing.cce.cornell.edu. There is also a forum that is open for users to post questions and comments, voice concerns, and share resources relevant to gas leasing in New York State. The forum will be monitored by CCE staff, Cornell faculty, and allied partners acting in the role of resource providers. We invite you to participate in the discussions by visiting the forum link and registering for an account.

You may also contact your local CCE office to request information. The New York Farm Bureau, The New York Department of Environmental Conservation, and some county Soil and Water Conservation Districts can also provide helpful information about gas leasing.

Excerpt from a fact sheet prepared on 7/30/08 by Brett Chedzoy of CCE of Schuyler County, with assistance from Jim Ochterski of CCE of Ontario County, Kevin Mathers of CCE of Broome County, Rebecca Hargrave of CCE of Chenango County, and John Armstrong and Maddie Dunfee, student interns at Cornell’s Arnot Forest.