Last year some 40 landowners separated from the Windsor & Colesville Oil and Gas Lease Coalition to sign a deal to lease their land to Inflection Energy. Collectively the breakaway group holds about 3,000 acres. The rest of the coalition decided against signing in hopes of a better deal once drilling is allowed to begin in New York. The deal signed with Inflection was supposed to yield a signing bonus of $2,750 per acre, due to landowners by March 3rd. But that payment did not happen.
Inflection’s attorney flagged some issues with the lease which has delayed the deal. The new date to receive signing bonus payments is now May of this year. However, landowners individually need to sign the revised lease agreement before they will receive payment.
The royalty terms of the lease have not yet been publicly released.
More background about Inflection:
Inflection, a Denver-based start-up, has been one of the only natural gas companies to show a willingness to lease in New York while the state maintains a moratorium on high-volume hydraulic fracturing, necessary for tapping into the Marcellus Shale. The company has twice tried unsuccessfully to lease Broome County-owned land, and had been negotiating with the Village of Owego to purchase treated wastewater before the board of trustees rejected negotiations last week.*
*Elmira Star-Gazette (Mar 30, 2011) – Gas-lease issues stall checks for Tier landowners