Replies to This Discussion

Permalink Reply by Ann Ticopa on March 29, 2012 at 1:47pm

Seems like a pricey approach for an area where there is a river handy.  It's normally considered for use in deserts.   Other negatives are that propane costs more than water, it is explosive, and it would probably have to be separated from the natural gas before it could go into a pipeline.  Plus, what would it do to the prices of propane (up?)  and natural gas (down?)?    Other than that ...

Permalink Reply by Brian V. on April 4, 2012 at 3:27am

http://www.pressconnects.com/article/20120403/NEWS01/204030391/Prop...

Here is another article on the proposed deal. The landowners would not receive a bonus payment and would only get a 12.5% royalty. However, the lands will be sectioned into roughly 25,000 acre sections and a sharing company (most likely an LLC with ownership being based on % of acres in that 25,000) would be created with that company being the majority owner and ECORP being the minority owner.

It all seems very complicated and I think it only works because of NYS forced pooling or compulsory integration. Either way it's a very interesting approach and I hope that it works out for all involved. If it were me I think I would give it some serious consideration. Although it would be hard to turn down a solid lease with a decent bonus payment and royalty.