"We need the damn gas. Drill, baby, drill!"
Hi Anonymous, actually we don't need the gas. There is a glut of natural gas, gas prices are depressed. And Chesapeake Energy, Exxon, Cabot and other drillers are not drilling to get you more gas. They are hoping to create pipelines to coastal ports where the gas will be liquified and shipped overseas. Just like oil, gas goes to the highest bidder. And if they can get the gas to Asia, where the price is about $13/bcf, your gas price will go up.
So for this, you want to industrialize the American rural landscape? Baby, don't drill.
Great article, Jeremy! One matter to be pointed out is that New York has the nation's worst, and most abusive, Compulsory Integration law, whereby people who do not want their land fracked can be forced to do so if enough people in their "unit" have signed leases. I believe it has been used at least once in the past.
This Compulsory Integration action amounts to a state-mandated violation of a mortgage holder's mortgage terms, as well as violating home owner's insurance policy (turning a home property into a heavy industrial site, to name just one violation) - subjecting the policy holder to re-evaluation of their policies and higher premiums - or no premiums at all.
Another point: as current law stands, if the fracking driller or any of its sub-contractors lack sufficient insurance to cover damages, accidents, personal injury or death, the leaseholder is then liable to have the risk transferred to his insurance company. Nobody in their right mind would write a policy in such a situation.
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