Broome County Receives 2nd Gas Lease Offer from Same Company

Inflection reduces number of acres it is seeking/also adjusts price per acre.

 
(Binghamton, NY) Broome County Executive Barbara J. Fiala announces that Inflection Energy, LLC is once again proposing to lease county owned lands for the purpose of tapping into potential natural gas resources. The latest proposal comes two months after their previous offer was withdrawn by the County Executive because of lack of legislative support for the deal.
 
The new lease proposal is outlined in the attached memo. Bottom line, Inflection says it still wants county acreage but this time around it is only seeking to lease approximately 3200 acres of county owned land. The previous offer was for more than 5500 acres of county owned land.
 
Excluded from this latest offer; Cole Park, Aqua Terra and Hawkins Pond. These are all areas that have been identified by experts as having “good geology” for potential natural gas drilling. 
 
“By not including these acres at this time, we leave the door open to additional offers and possibly even more lucrative offers in the future,” said Executive Fiala. “As with the previous offer, I am encouraging our lawmakers to support this deal for several reasons; to help us out of our current economic crisis, to jump start an industry in the region and to ensure that these developed parcels will have the highest levels of protection based on the final, detailed lease we will negotiate.”
 
The current deal includes approximately $7.8 million in initial bonus payments, with per acre prices ranging from $2250 to $2750 per acre.   The deal also includes the same royalty of 20 percent.
 
“The per acre price is something many of our legislators and our residents have focused on but it is not the complete story,” add Fiala. “The royalties are significant and the company is also providing for additional protections by including an environmental monitor, closed loop drilling and responsible land reclamation policies.”
 
The deal as it stands is for a five year lease agreement with possible options to extend.  Another like bonus payment may be paid after that first five years. The company has asked that lawmakers make a decision before November 30th of this year.

Memo Detailing Second Offer from Inflection Energy, LLC

09/20/2010 - 4:21pm