The Steuben County town of Pulteney could be the next battleground in the ongoing natural gas exploration debate.

Chesapeake Energy has approached the town about converting a former natural gas well into a disposal facility to handle wastewater from natural gas drilling.

Residents and others in the area already are lining up in opposition to the project, citing potential hazards and other concerns. In addition, several town officials may have to recuse themselves from the review process because they have leases or other ties to Chesapeake Energy.

Natural gas companies inject water treated with a cocktail of additives into the Marcellus Shale formation to extract natural gas. The process is known as hydraulic fracturing, or "fracking," for short. The water that comes back up either has to be treated or disposed of, most commonly by injecting it back deep underground.

The Pulteney site is only a short distance from Keuka Lake, and that is major cause for concern, said Hammondsport attorney Rachel Treichler, who is active in environmental issues. "There's just a potential of very damaging contamination to Keuka Lake if this is being done every day for 10 years," Treichler said."Why would we take this risk with Keuka Lake, which is drinking water for many residents and a beautiful scenic tourist area? Why would we do this?"

Pulteney Town Supervisor William Weber said he was contacted by a Chesapeake Energy engineer last fall about the site, which is about a mile west of the lake.

Weber referred the engineer to the state Department of Environmental Conservation, which will act as lead agency and review all of Chesapeake's plans.

Chesapeake Energy submitted a permit application to DEC on Nov. 19, according to DEC Region 8 spokeswoman Linda Vera. Agency staff is reviewing the application to determine if it is complete, Vera said.

Chesapeake also applied in October to the federal Agency for an underground injection control disposal well permit for the site. In addition to DEC approval, Chesapeake will have to obtain a special-use permit from the town to develop the facility, Weber said.

No applications have been submitted to the town yet, but when they are, town officials may have a hard time finding enough people to review the proposal.

"I am in conflict. I rent to Chesapeake and I am also stockholder. My deputy supervisor holds a lease, and one of my board members holds a lease," Weber said.

"Three members of our seven-member planning board have Chesapeake leases. At the Town Board level, should something come to the board, I'll have to seek counsel some place. I only have two people who can vote."

Concerns about the safety of the hydrofracking process drove much of the opposition to the Schlumberger Technology Corp. project in Horseheads.

In addition, New York state imposed a moratorium on Marcellus shale drilling until all of the environmental issues are sorted out.

About 50 to 60 people attended Wednesday's Pulteney Town Board meeting to ask questions about Chesapeake Energy's wastewater disposal plans. Among the visitors was Joyce Hunt, of Hunt Country Vineyards near Branchport, who had concerns beyond potential environmental impact.

"I've spoken to other wineries, and we're concerned about all these big tankers," Hunt said.

"They would go on a country road, which cuts right through the heart of our Keuka Lake Wine Trail, and how that will impact the peace and quiet.

"That route has been written up in many publications as one of the most scenic and best routes for people with bicycles. And that kind of traffic, and big trucks rolling through, would not be a great thing for the area," Hunt said.

A Chesapeake Energy spokesman could not be reached for comment Thursday.

Pulteney, meanwhile, is taking a wait-and-see attitude until any applications are filed, Weber said. But he is chagrined that people are willing to shoot down the Chesapeake Energy plan before all the facts are known.

"I was disappointed that people said the town should say no to this project," Weber said. "We don't have the information."

In addition to DEC approval, Chesapeake will have to obtain a special-use permit from the town to develop the facility, Weber said.

No applications have been submitted to the town yet, but when they are, town officials may have a hard time finding enough people to review the proposal.

"I am in conflict. I rent to Chesapeake and I am also a stockholder.. My deputy supervisor holds a lease, and one of my board members holds a lease," Weber said.

"Three members of our seven-member planning board have Chesapeake leases. At the Town Board level, should something come to the board, I'll have to seek counsel some place. I only have two people who can vote."