County, drillers nearing accord on road use agreement – Bath, NY – The Courier

The cost of road repairs in Steuben County could be the biggest stumbling block in future road use agreements with gas drillers.
The agreement now calls for drilling companies to pledge between $150,000 per mile and $300,000 per mile for to repair county roads damaged by construction or haulage during future drilling of the Marcellus Shale in Steuben.
Public Works Commissioner Vince Spagnoletti said the drillers’ routes could run 100-150 miles, meaning the gas companies would be required to pledge as much $45 million to ensure county roads will stay in good shape.
“They think it (costs) too much,” Spagnoletti told the county Legislature’s Public Works Committee. “But we think they can pay it.”
Spagnoletti said the amounts are in line with state Department of Transportation’s agreements with local contractors.
Spagnoletti said companies would need to set aside 0.5 percent of the total, or $225,000, before the proposed road use agreement could be signed.
The purpose of the road use agreement is to ensure the companies maintain and repair any county roads damaged by the expected heavy traffic caused by drilling.
The amounts are determined by the condition of the roads before any construction begins.
Legislators are concerned the cost of repairs would fall on taxpayers if the gas companies fail bring the roads back to their original condition.
Committee members also wanted to be sure the roads stay driveable throughout the driller’s use.
“These roads still need to passable day to day,” said Legislator Patrick McAllister, R-Wayland. “I mean, it could take a week, two weeks for them to fix the roads. We don’t want that.”
The proposed road use and repair agreement was modeled on an earlier county policy for wind farm developers, and is available for municipal use, too.
Officials have been working on the new road policy for several months, anticipating the time natural gas companies begin drilling Marcellus Shale deposits in Steuben.
There now is a statewide ban on natural gas drilling, which expires in 2.5 months.
Steuben’s draft agreement rates road conditions, and designates or restricts haul routes based on those conditions.
Road conditions also determine the bond Steuben will require firms to post to ensure the quality of the repair of each route.
Spagnoletti said the county also may require the gas firms rebuild some roads before use.  Roads in the southern portion of the county – where drilling is expected to begin – are built over clay and could become hazardous very quickly, he said.
Enforcement of the agreement also concerned committee members.
Spagnoletti said the county can’t stop hundreds of trucks meeting the legal weight limit.
However, the county can post a lower weight limit, and cut off all truck traffic, he said.
The state DEC also may include road use agreements as a part of the permits required for its environmental impact statement he said later.
County Administrator Mark Alger said the county expects to meet with town officials in May to discuss the road use agreement and make other recommendations about the impact of future drilling in Steuben.

Key points in the draft agreement include:
• Drilling companies must notify the county of their routes.
• Once the routes are approved, the roads will be surveyed at the driller’s expense.
• Based on the survey, bonds will be determined and in place before the companies use the roads.
• The roads must stay in good condition during use by the gas firms.
• Once the heavy traffic ends, the roads will be analyzed again at the driller’s expense, and restored to their original condition.
• Gravel roads are included in the draft and rated for use in town agreements.