DOJ to would-be Meadowmont and Durham frackers: Cease and desist | News | Indy Week
News
INDY Week's news blog

Archives | RSS

Tuesday, July 29, 2014

DOJ to would-be Meadowmont and Durham frackers: Cease and desist

Posted by on Tue, Jul 29, 2014 at 2:25 PM

It would appear the Pennsylvania company behind a number of bizarre mineral rights leasing offers in Durham and Chapel Hill has gotten on N.C. Attorney General Roy Cooper's bad side.

In a sharply worded letter mailed Monday, Cooper's office ordered Crimson Holdings Corporation—and its affiliated real estate firm Campbell Development LLC—to stop offering oil and gas leases in North Carolina. DOJ also demanded the prospective drillers, who sought to buy the mineral rights for nature preserves in Durham and the park at Meadowmont in Chapel Hill, reject and return any accepted lease offers from landowners.

"Until you can demonstrate that Campbell's practices and Crimson's leases are in compliance with North Carolina law, we demand that Campbell and Crimson immediately cease and desist from offering or accepting any oil and gas leases in the state of North Carolina," stated the letter from DOJ Special Deputy Attorney M. Lynne Weaver.

As reported in last week's Indy, the Crimson Holdings leasing offers were the first confirmed fracking bids in North Carolina in several years. They were mailed to an unknown number of Durham County landowners two months after state leaders lifted the fracking moratorium.

At least two of those landowners, the conservationist Ellerbe Creek Watershed Association and the Town of Chapel Hill, said they would not make any deals with the company.

According to Weaver's letter, there are numerous legal issues with the company's leasing offers. Neither Crimson nor Campbell are registered with the N.C. Secretary of State to do business. And, as pointed out by the Indy, the company's agent, Frank Sides, is not a registered oil and gas landman in the state.

Meanwhile, the 12-year leases offered by the company exceed the state's 10-year limit and fail to provide a copy of the state law laying out landowner protections. Weaver also complained that DOJ could not find a website for the relatively-unknown company.

"As our office is unable to reasonably locate any information on Crimson Holdings Corporation, we have serious concerns that North Carolina landowners will be unable to conduct any due diligence research or to obtain information on the ostensible company to which they are being asked to lease their oil and gas rights," the letter stated.

James Robinson, a leasing expert with Rural Advancement Foundation International, pointed out the leases would also potentially allow drilling within 300 feet of homes. Draft regulations in the N.C. Mining and Energy Commission require 650-foot setbacks, but allow companies to seek a waiver reducing the setback to 450 feet.

"I don’t want our landowners to see this and say, 'Oh boy, this is my chance to strike it rich,'" said Robinson, who is also a member of a Mining and Energy Commission study group on compulsory pooling. "Because these leases would not hold up in North Carolina."

Tags: , , , ,

Pin It

Comments

Showing 1-1 of 1

Add a comment

 
Subscribe to this thread:
Showing 1-1 of 1

Add a comment

INDY Week publishes all kinds of comments, but we don't publish everything.

  • Comments that are not contributing to the conversation will be removed.
  • Comments that include ad hominem attacks will also be removed.
  • Please do not copy and paste the full text of a press release.

Permitted HTML:
  • To create paragraphs in your comment, type <p> at the start of a paragraph and </p> at the end of each paragraph.
  • To create bold text, type <b>bolded text</b> (please note the closing tag, </b>).
  • To create italicized text, type <i>italicized text</i> (please note the closing tag, </i>).
  • Proper web addresses will automatically become links.

Latest in News



Twitter Activity

Most Recent Comments

i am embarrassed to live in the same country as this moron and his ilk.

by Jeff Brown on 'Transgenderism' Is a 'Feeling,' Explains Dan Forest, Lieutenant Governor of North Carolina (News)

Ha! Of course McCrory tries to say that Monmouth is a terrible pollster despite the fact that they're one of …

by Marc Sloop on New Poll: Pat McCrory Is Screwed (News)

I suppose then that Lincoln was pushing the Black agenda--Kennedy too. God knows they shouldn't have been allowed thier freedoms--and …

by MHM1978 on New Poll: Pat McCrory Is Screwed (News)

Hey DJ17, I'm going to quote one of your favorite Conservatives... "I'm not going by any study or poll, I'm …

by Joseph C. Luthman II on New Poll: Pat McCrory Is Screwed (News)

How is serving as Governor of a top 10 state for one term "utter humiliation" versus, for example, working for …

by towerman on New Poll: Pat McCrory Is Screwed (News)

Comments

i am embarrassed to live in the same country as this moron and his ilk.

by Jeff Brown on 'Transgenderism' Is a 'Feeling,' Explains Dan Forest, Lieutenant Governor of North Carolina (News)

Ha! Of course McCrory tries to say that Monmouth is a terrible pollster despite the fact that they're one of …

by Marc Sloop on New Poll: Pat McCrory Is Screwed (News)

© 2016 Indy Week • 201 W. Main St., Suite 101, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
RSS Feeds | Powered by Foundation