SMALLWOOD NY – A Pennsylvania property owner who leases his land for natural gas drilling told members of the Sullivan County [NY] Partnership local landowners need to exercise caution when signing to allow drilling on their property.

Just like Wayne County, Sullivan County, immediately across the Delaware River, could see hundreds of millions of dollars in economic impact should more property owners in the county decide to contract with gas companies to drill for natural gas on their land, but one man warned that poor planning could result in disappointments.

Thomas Shepstone, a Wayne County resident, and professional planning consultant, leased his land along with over 40 other landowners – an association totaling nearly 5,000 acres – and gave Partnership members an idea of what to look for in a “suitable” contract.

“I think what matters is that you get the proper addenda in there to deal with issues like the upfront well fee, the shut-in fee, some of the environmental protections,” Shepstone advised at the meeting.  He also warned homeowners to not led greed get in the way.  “The money is obviously important, but it’s a balance between the upfront fee and the royalties, and the whole addenda.  Those things all have to be balanced.”

Sullivan County Partnership President Peter Gozza supports drilling, but also says “caution” is the word of the day. “Don’t jump into a lease. You can take your time. The gas is always going to be there.”

According to a study Shepstone released Tuesday, the initial “shot in the arm” to Wayne County following the lease contract will be about $100-$250 million, and $25 million per year for the five-year contract.