apparently the sharp downturn in the economy has left more than a few individuals and companies strapped for cash as it seems Lodge Energy can no longer afford to pay out lump sums for leasing rights (and thus wants to make payments over a number of years instead). I've read about other natural gas companies being forced to sell assets to raise cash as well. It seems some of them over-reached thinking natural gas prices would go up indefinitely (where have we seen this story before). At any rate, read more on this Garrett County natural gas story in the Baltimore Sun and stay tuned to this blog for future updates.
Updated 12/15/08 to respond to a direct question from a reader: BM below you will see a heading to one of these leases as well as clause 4 and in a separate image clause 10 as well. Together it looks like these in effect give the gas company the opportunity to back out of the lease if they choose to do so. The images shown can be enlarged by clicking and originated from public records.
Don't forget to check back to Dan's Deep Creek Blog for future updates.
Monday, December 15, 2008
Baltimore Sun again reports on natural gas leases in Garrett County ..
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2 comments:
Do you have any idea what these leasing contracts look like? Haven't the gas companies entered into legally-binding agreements with the land owners that they now must honor?
Otherwise, what is the point of having a contract?
Someone else commented on this under another posting but I thought I should respond here for clarity. To answer the question posed of me, I don't know of anyone who has received a payment either. I will do some more digging though. Again, I'm shocked that none of this has been reported in the local media, so maybe I'll have to check the Baltimore Sun or call Mr. Yoder for an update.
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