Earlier this year, a group of 40 Town of Windsor (NY) landowners with a cumulative 3,000 acres signed a gas lease agreement with Denver-based Inflection Energy to allow Marcellus Shale drilling when New York’s moratorium is eventually lifted. The landowners expected their signing bonus checks by March 3rd, but that didn’t happen due to delays by the lawyers (see MDN story here). The delays are now over the the Windsor landowners have started receiving their bonus checks totaling $8.25 million.
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.
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:
Stop the press: There’s actually been some GOOD news from New York State on the drilling front. Inflection Energy has just issued payments to some 130 residents in the Town of Maine (Broome County, NY) to secure drilling rights to their land, when/if drilling ever begins in New York State.
The deal, announced in February, calls for $6,000 per acre over eight years. About 130 residents with more than 3,000 acres have begun receiving checks for the first year’s payment of $1,000 per acre, said Robert Wedlake, a lawyer with Hinman, Howard & Kattell representing the group, called the South Maine Millennium Coalition.
The Inflection deal calls for 20 percent royalties “subject to certain deductions,” according to a press release from Wedlake and Inflection.*
*Binghamton Press & Sun-Bulletin (May 9) – Town of Maine residents getting $3 million for gas rights