John Slike on Wednesday told the Allegheny Township Zoning Hearing Board that a 235-unit housing development is a possibility for his property if he's blocked from leasing it for natural gas drilling.

Slike and his wife, Ann, own 330 acres of farmland in the township.

That includes a Willowbrook Road parcel leased to CNX Gas Co. for a well pad proposed to host six unconventional gas wells that would use horizontal drilling and hydraulic fracturing to tap the Marcellus shale.

Neighbors Dee Frederick, Beverly Taylor and Patricia Hagaman have asked the zoning board to revoke CNX's drilling permit and to declare invalid the township's allowance of drilling in residential-agricultural zones.

Speaking during the third day of testimony on the appeal, Slike said his property, which he began acquiring in 1976, is an active farm growing hay and grain that is sold to local horse farms.

Slike said his intent is to have his five children equally inherit his estate, with his son, Neal, keeping up the farm. However, Slike said it is unlikely his heirs would be able to keep the farm active without the income from gas wells.

Slike described himself as a “typical farmer — land rich and cash poor.”

He said a landscape architecture firm he hired in 1996 indicated a subdivision with 235 single-family houses and condominiums would be an allowed use on his land, which he described as the largest contiguous property in the township.

Under questioning from Christopher and Angelo Papa, the attorneys representing the objectors, Slike said he couldn't say what his compensation from CNX has been for the lease. He said he's paid for the number of acres disturbed, not royalties on gas extracted.

“It's not thousands upon thousands of dollars, I guarantee you that,” Slike said.

Slike questioned previous testimony that the CNX wells will be as close as 700 to 1,000 feet from the objectors' homes, but he acknowledged their homes are much closer than his own home along Watson Road.

Larry Loperfito, the zoning board's attorney, said the hearing will continue on March 5 with the attorneys involved making their final arguments. Loperfito did not indicate whether the board will make a decision that night.

Many could profit

Representatives of Western Pennsylvania Gas Leasing Consultants LLC indicated the Slikes are far from the only township residents poised to benefit financially from gas leases.

Attorney Ed Bilik, a company founder, presented the zoning board with a petition purported to have more than 100 signatures from township landowners supporting the current zoning that allows drilling in residential-agricultural zones.

Ted Szalewicz, a land agent and consultant with the company, said his research found 400 leases involving 4,000 acres of township land were signed in 2014 alone.

Szalewicz said those leases have paid out a total of $12 million to landowners in fees and could reap an estimated $60 million to $90 million in royalties.

Christopher Papa was quick to point out the royalty estimates use an industry standard that includes a rate about 40 percent more than current natural gas prices.

Kyle Stefancik, a senior land agent for CNX, estimated about 60 percent of township land and 75 percent of residential-agricultural zones has been leased to gas companies.

He said there are about 240 conventional, shallow gas wells in Allegheny Township; the CNX well on Slike's property, known as the Porter 1K well, is the only unconventional deep well permitted.

Stefancik showed photos and maps of existing shallow wells and gas pipelines in the area of the objectors' properties, including several that are closer to the objectors' houses than the proposed CNX well. A pipeline already crosses Taylor's property.

Slike said at least one shallow well already existed on each of his two adjacent parcels when he bought them and four more shallow wells have been drilled since.

Daniel Bitz, a general manager for gas permitting at CNX, also testified on the permitting process the company went through with the state and township.

Public support for drilling

Wednesday's hearing ended with public comment from four township residents, all of whom voiced support for drilling.

Upper Burrell resident Ron Slabe, also spoke, saying he was concerned about water and air quality and “rural industrialization” if drilling is allowed to continue in residential-agricultural zones.

Tom Iseman of Melwood Road, a former Allegheny Township supervisor, said he was upset about rumors that the Slikes are turning a large profit on their lease.

Since they don't own the mineral rights and won't earn royalties, Iseman said he likely earns more on his leased 20 acres than they will.

“I think people are under the misconception the he's becoming a millionaire,” Iseman said.

Marlene Schweikert of Shaner Road said she feared farmland being turned into housing developments if farmers weren't able to earn money through drilling.

“This is a way to help them (farmers),” she said. “So yes, I'm for drilling. Drilling is very important in our township.”

Keith Alter of Hazel Lane echoed her concerns. He said he and two brothers continue to work one of the last farms in his neighborhood, but he said they also work outside jobs to make ends meet.

“If we can't support (farmers), those farms will go away and there will be nothing left but houses,” he said, noting the farms and rural living are what attracted most township residents. “What will be left of the township?”

Liz Hayes is a staff writer for Trib Total Media. She can be reached at 724-226-4680 or lhayes@tribweb.com.

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