Global Natural Gas Prospects Alliance

NY Broome County deliberates gas deal July 8, 2010.
Broome County would be the recipient of $15.9 million in the latest natural gas deal to lease mineral and surface rights on county-owned land. Their are multiple natural gas formations under New York, however the Marcellus Shale is sited.

Broome County Land: 5,300 acres
Company: Inflection Energy LLC
Inflection’s Chairman | Chief Executive Officer: Mark S. Sexton
Term: 5 Years
Surface Rights: $3000.00 per acre
Royalty Mineral: 20% production
Term Extension: 3 Years
Surface Rights: $3000.00 per acre

Left out is the parcel map of all parcels of land that will be part of this gas deal, Broome County government should release this so the citizens can fully understand. The land Broome County is considering for gas drilling is its citizens land, and Broome County government should have clear and precise information about the offer to make a decision about the deal. Transparency should is everything on this deal and citizens should have full disclosure. Natural gas monies are the citizens, and should directly benefit them.

Dwindling in Broome County are, Capitalism, the Free Market, and Small Business these are all the things that Broome County needs. If and when Broome County signs a deal, the economy and all the citizens should benefit until all the natural gas is depleted.

What a few months can do!
Two deals that went through….here are the details:

Anadrako sells lease on 100,000 Marcellus acres to Mitsui & Co for $14,000 per acre ( Feb 2010)

Atlas sells sells lease on 300,000 Marcellus acres to Reliance Industries for $14,167 per acre ( April 9, 2010)

What was the original lease amount with the landowners of the acreage that was “flipped” in the Anadrako, and Atlas deals? Most likely in many of the cases much, much lower than the “flipped value”.

Broome County considers $3,000.00 per acre. Regardless the extension it is still $3,000 per acre.

$3000.0 * 5300
______________________
Result: $15,900,000.00

If Broome County where to have a deal that was what Mitsui & Co. paid Anadrako per acre the result would be, see result below.

$14000.0 * 5300
______________________
Result: $74,200,000.00

Broome County should lead the way, in the State. This was always and area for opportunity in the past. Broome County should negotiate the deal.

There are articles on this deal in other media outlets, which give more detail. However none of them are sited here.