Comment

Comment by Brian Day on January 20, 2010 at 1:53pm

So... if I understand this correctly, Seneca paid $4,625 an acre for about 10,500 acres, maybe half of which they can't even use due to various stipulations in a n extemely complex lease with multiple restrictions. What the hell is down there that they would put up nearly 50 million dollars to have access to?

Comment by b bz on January 19, 2010 at 1:27pm

what was the term ? and what renewal after the primary term ?

Comment by Greg Sovas on January 19, 2010 at 7:50am

As one of the primary consultants for the Twin Tiers Landowners Coalition (www.twintlc.com), I took a brief look at the results of the Tioga County PA tract. As usual, there is good news and bad news. Understand that the lease (about 74 pages) is different (not a five year paid up lease); there are delay rental payments, etc. While I think there were 13 qualified bidders, only three bid. Not good. On the other hand, there were about 9000 acres in the tract, but the high bidder could not set foot on more than 6000 acres, and many more acres that were special considerations. So development of the area will be difficult and likely discouraged bidders. The other thing to remember is that leasing tracts of contiguous acreage is always more valuable than acreage with significant "holes" for competitors to lease. The bid only gives an indication of range and interest with the royalty set at 18%, Hope this is helpful.