« Open Thread | Main | Hellbender Journal Coming Your Way »
September 21, 2003
Seneca Resources (National Fuel Gas)
One of my sources has revealed that Seneca Resources (National Fuel Gas) has sold approximately half of its forest land in PA and used the money to purchase a gas pipeline that runs from Canada to U.S.
The buyer of the forest land was not revealed by Seneca Resources.
However, this news certainly appears to tie into the recent Globe Staff, 9/19/2003 story "Mass. pension fund bets aggressively on timber But moves coming amid volatile times in lumber industry"
The Massachusetts state pension fund is making a huge bet on stately stands of Douglas fir in the West, piney woods in the South, and hardwood forests in the Northeast.
State pension officials have purchased almost half a million acres of timber in the past two years and are planning to pour hundreds of millions of dollars more, making Massachusetts one of the most aggressive buyers in a hot sector that is drawing lots of new investors.
In August alone, the Massachusetts pension agency bought 101,660 acres in New York, Pennsylvania, and Texas, with a value of $219 million.
Posted by at September 21, 2003 10:37 PM
Comments
I found this on their website:
(August 1, 2003) Buffalo, New York: National Fuel Gas Company (“National Fuel” or “Company”) (NYSE: NFG) today announced that it has, through affiliates, closed the sale of approximately 70,000 acres of timber property located in Venango, Elk, Jefferson, McKean, Forest, Cameron, Clarion and Potter Counties in Pennsylvania and Allegany County in New York to an undisclosed buyer for approximately $186.3 million. As a result of the sale, the Company will record an after-tax gain of approximately $102 million or $1.24 per share.*
“We are pleased that the sale of a portion of our timber assets allows us to pay off the short-term debt used to finance the Empire State Pipeline acquisition,” said Philip C. Ackerman, Chairman, President and Chief Executive Officer of National Fuel.* “Adding the Empire Pipeline to the National Fuel family affords us a strategic advantage and great opportunity to expand our pipeline system while we continue to maintain a strong interest in our remaining timber assets, which have provided good value to our shareholders.*”
Posted by: Jim K at September 22, 2003 10:31 AM
A follow up to that.
I remember hearing about this a couple of months ago. The question that I think noone was able to answer then was who bought this land? Do we know it was the Pension Fund?
Also, is National Fuel assuming they can depend on public lands for their resources? What right do they have to do that?
Just some questions...
Posted by: Jim K at September 22, 2003 10:36 AM
Nothing in the comment you quote from NFG assumes or implies using public lands for their resources. You are jumping to an unfounded conclusion as they own "their remaining timber assets." Oil & Gas is a little different matter. Where a company or an individual owns the minerals and someone else (like the ANF) the surface, BOTH parties have a moral and legal right to use or not use their property in a responsible manner. Just because you can't see, visit, and enjoy the subsurface property doesn't make the rights of the subsurface property owner inferior to those of the surface owner. You've got to remember, both parties have EQUAL property rights. And both parties have a resource worth protecting and using in such a way that benefits people and our environment. Exercising one's subsurface property rights in a responsible way, is not a case of depending "on public lands" to make a profit.
Posted by: Sea at September 22, 2003 12:57 PM
Sea,
I think we can agree to disagree about the "equal" property footing you allege for surface vs. subsurface. There is, in fact, a major difference particularly where federal lands are involved.
That said, National Fuel owns both Seneca Resources and Highland Resources. As a company National Fuel has been a major purchaser of timber in the Allegheny National Forest.
Posted by: Jim K at September 22, 2003 01:11 PM
According to information I have received, the land in question, owned by Seneca Resources Corporation was sold to Headwaters Investments Corporation, a foriegn owned corporation.
Posted by: Jim Ferris at December 11, 2003 04:27 PM
People are just smart enough to not be happily ignorant.
Posted by: Meehan Keely at January 26, 2004 06:02 AM
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)