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Division of Real Property Administration

STATE BUILDING COMMISSION

 

                                        Item for Public Comment

                            Please return to this address, as new information will be added when available.

  On Monday, April 20, the State Building Commission Executive Subcommittee

  asked for public comment and further examination of a request from the

  University of Tennessee on the following agenda item:

 

  Review of a request for APPROVAL of the following DISPOSAL by LEASE of

  interest in real property with waiver of appraisals as required by TCA 4-15-102

  and 12-2-112.

 

  Description: Morgan & Scott Counties – 8,636 +/- acres – Trans. No. 09-03-009

 

  Purpose:  Disposal by lease for oil, gas and coal bed methane lease on the

  leased premises less and except the existing wells and their associated unit acreage.

 

  Term: Five year lease, with three renewable five year options, for a total of 20 years.

 

  Consideration:  Lease bonus of $300,000 with yearly rental of $35 per acre –

  the proposer offers a 15% annual royalty based on a sliding scale

 

  Lessee:  CNX Gas Company LLC / Knox Energy, LLC

 

  Report:   University of Tennessee officals stated that they received approval from the

  State Building Commission in 2006 to do an RFP for this land lease, stating that Knox

  Energy currently leases 250,000 acres around UT’s property and has a reputation of

  operating a first class operation. 

 

                                           Review Documents

 

                       VIEW THE RFP AND CONTRACT AWARD DOCUMENTS HERE.

    

SUBMIT COMMENT

Submit comment to the State of Tennessee, which will be reviewed by the state
and the University of Tennessee. Comment should be received by the state by

May 5, 2009.

 

To mail a comment to the state, send comments to: 

 

Division of Real Property Administration

Department of Finance and Administration

312 Rosa L. Parks Ave North, 22nd Floor 

Nashville, TN  37243-1102