Thursday, June 14, 2012

$2.25 Million Atwood Lease Accepted by Carroll County Commissioners

From the Times Reporter:
The former Atwood Lake Lodge and Conference Center could prove to be a financial windfall for Carroll County even before the resort’s doors open. 
Carroll County commissioners Monday reached an oil-and-gas lease agreement with Houston-based Sierra Buckeye for the 500 acres at the lodge. 
Under the agreement, the county will receive $4,500 per acre after 90 days. The county will receive $2.25 million for the first phase of the contract. 
If Sierra hasn’t drilled after 180 days or has canceled the contract, the county will receive $1,500 per acre for a total of $750,000 for the no-drill payment. 
In three years, Sierra has the option of renewing the contract. If Sierra would choose not to renew the contract, the county will receive a bonus of $6,000 per acre for a total of $3 million.

The five-year deal also has a five-year renewal with all title work to be completed by Sierra. The contract also provides a 20 percent royalty on the gross gas sales from the property. 
There will be no drilling on the lodge property itself. Commissioner Tom Wheaton said Sierra has leased enough adjacent land that horizontal drilling can be initiated from those properties.
Read the rest of the article here.

The Free Press Standard also has an article on this story here.

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