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Thursday, August 29, 2013

Company Disagrees With Carroll County Commissioners About Lease

We had a post last week about the Carroll County commissioners' claim that Sierra Buckeye was in default on its lease with the county.

Sierra Buckeye has now responded (via email to MDN):
Contrary to information incorrectly shared by the Carroll County Board of Commissioners on Monday, August 19, Sierra Buckeye elected to release a “Paid-Up Oil and Gas Lease” originally dated July 17, 2012 for the Atwood Lodge property between it and the Carroll County Board of Commissioners.
Sierra was able to release the lease because it provided that if Sierra did not commence an optional well or make an optional payment of $1,500 per net acre, then the lease would terminate on June 30, 2013.
It should also be noted that Sierra requested an extension of the lease until November 1, 2013 as it sought to further assess the economic viability of the Utica oil window. However, despite repeated requests the Carroll County Board of Commissioners failed to notify Sierra of its decision to not extend the lease. Instead, Sierra learned of the decision by reading news articles which stated that the Carroll County Board of Commissioners erroneously informed the public that Sierra was in “default” during a meeting on August 19.
This is certainly not the case though, because as stated above the drilling of the Well and the remitting of the payment were optional actions in the lease.
To ensure there is no further confusion, Sierra has executed a release instrument today which is being sent to the Carroll County Board of Commissioners by overnight mail for receipt tomorrow (Friday, August 23, 2013) so that it can be recorded in the records of Carroll County.
Sierra Buckeye is a privately-held, Houston-based independent oil & gas producer focused on the development of unconventional oil and gas reserves whose employees and partners are committed to respecting business associates, land owners, clients and the environment. The company has approximately 60,000 acres under lease in Northeastern Ohio and an office in Canton.
From Robert S. Fabris, CPL
Vice President, Land & Business Development, Sierra Buckeye, LLC

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