EBENSBURG — The borough has lost, at least for now, a $2.6 million natural gas lease payment promised by a Williamsport-based firm.
The deadline for payment has come and gone, but the check wasn’t in the mail, Ebensburg Borough Manager Dan Penatzer said.
At least the money wasn’t spent in advance or made part of the 2009 budget, which does not include a tax increase, he said.
“Even if we had received the gas lease check, it would not have been used for the borough’s day-to-day operations,” Penatzer said.
GFI Oil & Gas, a relative newcomer to the field, offered a higher price – $2.6 million for rights to 1,300 acres – thandid Colorado-based Running Foxes Petroleum, which offered $1.83 million for five years.
After some debate in August, and with a challenged closed-door session before the vote, Borough Council unanimously accepted GFI’s proposal.
At the time, Running Foxes President Steven Tedesco stressed his company’s long experience, promised payment in 60 days and said he was in the business of finding gas, not flipping leases to a third party.
“If you want gas production, go with us,” Tedesco told the council in August.
Despite his arguments, council went into closed session, citing leasing of property as the legal reason to meet privately, and then voted unanimously to award the lease to GFI.
Since then, the struggling national economy and increasing state regulations have dampened drillers’ zeal, and most have pulled their agents out of Cambria and Somerset counties.
Now, with the deadline past and the GFI agreement void, Ebensburg officials have few choices.
“We can wait for a few weeks, and if there’s an offer we can accept it as long as it’s the promised amount, or we can just allow the agreement with GFI to lapse, as it has, and seek new proposals if the naturalgas market heats up again,” Penatzer said.
“The gas is still there, so there’s no cause for alarm on the borough’s part,” Penatzer said. “If we don’t get it now, we’ll get it later.”
GFI President Anthony A. Mussare could not be reached comment.
Local News
Ebensburg sees $2.6M gas-lease deal fizzle out
- Local News
-
-
Proposed bill would expand use of traffic-light cameras
Some call it the hand of “big brother,” others are convinced cameras at signal lights would be effective in curbing red-light runners and ultimately saving lives.
-
Minister's trial date set
An issue has been resolved over the report from an examination of a girl allegedly taken by her mother to a Bedford motel to have sex with a traveling minister, clearing the way for a trial.
-
AP: Almost half of new veterans seek disability
America’s newest veterans are filing for disability benefits at a historic rate, claiming to be the most medically and mentally troubled generation of former troops the nation has ever seen.
-
Geistown beginning crime watch program
Residents will patrol Geistown streets in the coming weeks as part of a community watch program.
-
Persons of the Week: Nanty Glo vets will remember fallen comrades
Michael Kurtz, Tom Kasecky and Steve Kasecky will be among members of the Loy A. Douglass Post 3489 of the Veterans of Foreign Wars in Nanty Glo who will be honoring fallen veterans today, Memorial Day.
-
AG candidates face potential conflicts of interest
Both candidates for Pennsylvania attorney general have family ties that could pose a conflict of interest for the one who is elected as the state’s next chief legal officer.
-
Lawmakers: Capitol rallies unpersuasive
Nancy Richey stepped to the podium with a microphone at the Capitol rotunda with the hope that the right people would hear her message.
-
Richland closer to new chief
The search for Richland’s next police chief is winding down.
-
In brief: Thunderstorm downs trees, knocks out power
A late Sunday afternoon thunderstorm brought high winds, hard rain and hail to the Cambria-Somerset region.
- District Deaths May 28, 2012
- More Local News Headlines
-
Beryl Makes Landfall on Florida Coast
Service Dogs Help Wash. Soldiers Battling PTSD
Raw Video: Heckler Bursts in on Blair Testimony
Japan Farmers Plant, Seek Radiation-free Rice
UN Blames Syrian Forces for Shelling Houla
Raw Video: Gay Protest Blocked in Moscow
Vatican in Chaos After Butler Arrested for Leaks
Jimmy Carter Endorses Egypt's Election Results
Biden Addresses West Point Graduating Class
Dozens of Children Killed in New Syria Attack
Raw Video: Activists Allege Massacre in Syria
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
