43
Judge to decide on properties’ seismic testing
LISBON
A judge will decide by the end of the week whether a company will be able to enter four properties in Columbiana County for seismic testing in which Chesapeake Exploration LLC holds leases.
TSG NOPEC Geophysical Co. filed suit against James and Janet Zimmerman of Salem; Phillip and Brenda Glasser, Homeworth; Gary and Eleanor Carter, Beloit; Larry W. Fryfogle, Beloit; and Golden H. Acres LLC, Salem. The company sought a temporary injunction that would allow them to begin seismic testing.
Judge C. Ashley Pike of Columbiana County Common Pleas Court announced at Wednesday’s hearing that he would make his determination on the temporary injunction by 4 p.m. Friday.
Wayne Millice, vice president of Onshore Multi-client Seismic for TSG, testified that any delay in starting the process of seismic testing, which takes place in three stages over several months, could cost the company as much as $30,000 per day.
Chesapeake is paying TSG $75,000 per square mile for the testing, but it costs the company $85,000 to $95,500 per square mile to conduct the tests, he said.
TSG actually makes its profit by selling the maps it produces using the seismic testing to additional companies, Millice said.
The maps are not worth as much without the information from these property owners with Chesapeake leases.
Seismic testing is a process where holes are drilled about 30 feet into the ground and charges placed inside.
The hole is then filled and sensors placed more than 200 feet away from the charge, Millice said.
The charge is then set, and the company measures the waves.
The process helps to map the rock formations underground, he added.
“The testing doesn’t guarantee that the company will drill, but it does help them to make a decision,” Millice said.
There are two types of leases being represented in this case, said Frederick S. Coombs III, a Youngstown attorney representing James Zimmerman and Golden H. Acres LLC.
Coombs said his clients’ leases were just signed last fall, and the rest of the leases are older ones that don’t specifically mention seismic testing.
When questioned by Coombs, Millice stated TSG did not know what specific language was in the leases of the four property owners or what they said specifically about seismic testing.
“This seems like a classic case of putting the cart before the horse,” said Scott Zurakowski, a Canton attorney who represents Gary and Eleanor Carter.
Case law does not exist in Ohio about this kind of situation, said Bruce Smith, the Alliance attorney representing TSG, but in other states the law is clear the lease provides an implied consent to seismic testing in regard to the older leases.