Broome County, NY May Sign a Deal to Lease County-Owned Land for $15.9M
Lately it’s not been often MDN has reported on lease deals in New York State, due to the ongoing opposition of New York politicians to drilling in the state. So it’s with some surprise, and pleasure, that we noticed an article in today’s paper that Broome County, New York may soon sign a deal with Inflection Energy:
Broome County could get $15.9 million in a deal that will lease land for possible Marcellus Shale development.
Inflection Energy LLC, of Denver, has offered to pay $3,000 an acre for 5,300 acres of county-owned property at the landfill and the Greater Binghamton Airport for five years. The county also could get 20 percent royalties once drilling begins.*
The deal heads to the County legislature next week for discussion, and could be up for a vote on July 22. If the deal passes the legislature, Broome County, which had already planned on $5 million in lease payments as part of this year’s budget, will get a lump sum check for the whole amount within 90 days. Hats off to County Executive Barbara Fiala (Democrat) for the foresight and guts to put this deal together when so many in her party oppose drilling.
Inflection has been busy with private landowners in Broome County too:
In May, Inflection finalized a deal with about 130 Town of Maine residents for the right to develop 3,000 acres between Pollard Hill and Twist Run Road roads north to south; and Farm to Market and Edson roads east to west. The deal pays roughly $6,000 per acre over eight years.*
Either Inflection has a high tolerance for risk (like a hardened gambler’s tolerance), or they know something we don’t about the prospects for drilling in New York. Either way, best wishes and fingers crossed that their investment pays off for them and for the County and private landowners who have signed leases.
*Binghamton Press & Sun-Bulletin (July 7) – Broome close to signing $16 million Marcellus Shale drilling rights deal