Beacon Redevelopment Industrial Corporation Enters Negotiations with Dominion Resources
NORTH HUNTINGDON, Pa., Nov 17, 2008 /PRNewswire-FirstCall via COMTEX/ -- Beacon Redevelopment Industrial Corporation (Pink Sheets: BCND) today announced that it entered into negotiations with Dominion Resources, Inc. pertaining to their use, since 1986, of the Westmoreland Glass Factory as a natural gas storage facility and gas well.
In 1954, the former owners of the glass factory in Grapeville, Pennsylvania, signed agreements allowing the predecessor of Dominion Resources to use the property as a gas storage facility and to operate a gas well.
The agreements expired upon sale of the property. Specifically, both agreements state, "In case of sale of part or whole of the premises, this permit shall become null and void." In 1986, Westmoreland Warehouse and Industrial Building, Inc., purchased the Westmoreland Glass Factory, rendering all permits expired.
Upon investigating the natural gas holdings on the facility, Beacon's experts determined that the storage facility and gas well continued to operate unbeknownst to the company. Beacon entered into negotiations with WWIB's successor and acquired an assignment of all prior rights to the use of the property and the gas beginning in 1986 and continuing through the present.
In mid-2008, Beacon contacted Dominion regarding the situation. In September 2008, Beacon sent Dominion a formal demand. In November 2008, Beacon's management began negotiations with Dominion for compensation regarding the apparent use of the property and resources for 22 years, and to determine whether to grant an easement. As the negotiations continue, Beacon's natural gas experts will conduct the research necessary to determine if the compensation is fair to the company's shareholders.
"This is a significant situation that could provide a large capital infusion to Beacon's companies. I look forward to continuing my discussions with Dominion to resolve 22 years of the use of the property and its resources, and to create an agreement that resolves the issues," Beacon's President, Adam Marek, said. The company could not comment further due to the nature of the ongoing negotiations.
SOURCE Beacon Redevelopment Industrial Corporation
URL: beaconredevelopment.com
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