Helping to protect landowners right for the extraction of Natural Gas.

Helping to protect landowners' rights for the extraction of Natural Gas.

Thursday, October 21, 2010

Will this deal get flipped? What do you think

Re: new inflection deal ... ights+deal

BINGHAMTON -- A new deal from Inflection Energy to buy mineral rights on some Broome County-owned property is back before the Legislature.

However, there's no telling how lawmakers will vote on the proposed $7.8 million offer when they meet Thursday, less than two weeks before all 19 legislative seats are up for re-election on Nov. 2.

The latest offer, dated Sept. 20, managed to get through a legislative committee last week with a 3-2 vote, said Gene LaBare, D-Endicott, the Legislature's majority leader. That vote ensured the offer would make it to Thursday's agenda and onto the floor for discussion and a possible vote at the county office building in downtown Binghamton.

Or the Inflection offer could be held over -- without discussion or vote -- until the Legislature meets again in November after the election.

Read more about natural gas drilling

In July, Inflection offered $16 million for the mineral rights to about 5,600 acres of county-owned land. That offer was pulled off the table at the last minute by Executive Barbara J. Fiala after lawmakers indicated there were not enough votes for approval.

The new offer calls for Inflection to pay between $2,250 and $2,750 per acre up front -- about $7.8 million -- for the rights to extract natural gas from 3,200 acres of county-owned land.

The five-year deal, which could be extended by three years for an additional bonus payment, would pay the county 20 percent royalties on any gas produced from the land, subject to deductions for a share of post-production costs capped at 30 cents per thousand cubic feet.

Some of the county's most valuable properties, including Cole Park in the Town of Colesville and various plots near the Pennsylvania border, have been excluded from the current offer

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