2 Energy Companies Pulling Out Of Northeastern PA

Jul 30, 13 2 Energy Companies Pulling Out Of Northeastern PA

Hess Corp. and Newfield Appalachia PA LLC sent a letter to landowners that notified them their leases are no longer in effect, according to the Northern Wayne Property Owners Alliance, which negotiated a master lease on behalf of more than 1,300 families and businesses. A three year moratorium on gas drilling has infuriated landowners who claim that it has cost them more than $187 million dollars in profit. A spokesperson for Newfield said that the company’s focus will now be on oil instead of gas. The lease termination means that landowners are free to negotiate with other energy companies, but that seems doubtful due to the moratorium. The property owners group has threatened to sue the Delaware River Basin Commission. The Commission, which has representatives from New Jersey, New York, Pennsylvania, Delaware and the federal government, monitors and regulates the water supply of more than 15 million people in the Delaware River watershed, including Philadelphia and half the population of New York City. It imposed a moratorium on Marcellus Shale drilling in the Delaware watershed in 2010, citing the need to develop regulations to protect the environment.