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Natural gas leases inundate Record of Deeds in Wayne County

Sat. October 24, 2009; Posted: 05:46 AM
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HONESDALE, Oct 24, 2009 (The Times-Tribune - McClatchy-Tribune Information Services via COMTEX) -- HES | Quote | Chart | News | PowerRating -- Waiting is sometimes the hardest thing to do, especially when tens of thousands of dollars are at stake.

Since the Northern Wayne Property Owners Alliance reached agreement for natural-gas drilling in the Marcellus Shale with Hess Corp. in August, Wayne County's recorder of deeds office has received hundreds of leases and more are expected, causing further strain on employees as they attempt to process the documents.

"We have 1,300 leases to record and they are each 17 pages long," Recorder of Deeds Ginger Golden said. "We're recording them as fast as we can."

The flood of natural-gas leases come as courthouse employee hours remain reduced by 2 1/2 hours each week to cut expenses to compensate for state budget cuts.

According to agreements between Hess and the alliance, payments will not be released until titles are cleared and leases recorded.

"There is a bottleneck in the courthouse," said Marian Schweighofer, a founding member of the alliance. Despite the delays, Hess and the alliance have agreed that checks will be mailed Nov. 1 no matter the progress of work at the courthouse, she said.

Alliance members expect to receive a 20 percent royalty on extracted natural gas.

In the first two years of the lease, landowners expect to receive $1,500 per acre and in the following five years, an additional $1,500 per acre.

More than 72,000 acres of land owned by alliance members have been leased by Hess.

Alliance members believe they will eventually receive their lease payments, including Owen Frederick, whose family owns land in Damascus Twp.

"The leases really will be an economic boost for a lot of people," Mr. Frederick said.

Contact the writer: jmrozinski @timesshamrock.com

To see more of The Times-Tribune or to subscribe to the newspaper, go to
http://www.thetimes-tribune.com/. Copyright (c) 2009, The Times-Tribune,
Scranton, Pa. Distributed by McClatchy-Tribune Information Services. For
reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or
847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group
Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
For full details on Hess Corp (HES) click here. Hess Corp (HES) has Short Term PowerRatings of 5. Details on Hess Corp (HES) Short Term PowerRatings is available at This Link.

    


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