(Dec. 24, 2015) Several directors on Ocean Pines’ board expressed optimism after the association inked a new deal with Sandpiper Energy last week, effectively bringing natural gas to the community and receiving cash considerations in return.
The company will pay for a land lease and transitional and overhead fees totaling nearly $400,000. Additionally, Sandpiper will reimburse Ocean Pines for more than $60,000 in legal fees incurred during the negotiations, which lasted more than a two years.
“That was a big issue, and I thought it was a great move on their part to do that,” Tom Terry said, adding that Sandpiper would “absorb” fees rather than pass costs onto consumers in Ocean Pines.
Overall, Terry described the agreement as “mutually beneficial.”
“I think it allows Ocean Pines to help them help our members and get their transition done,” he said. “Not all of our members live here, so there’s a lot of things that Ocean Pines now can do to help with the transition for anyone who wants to move to natural gas.”
Terry also stressed the importance of having Sandpiper conduct informational meetings in the community. He said the meetings would include an overall game plan, as well as a timeline as to when the upgrade would start and how long they will take.
Negotiations did not always run smoothly and talks broke off last year before the board asked General Manager Bob Thompson to try to restart negotiations roughly six months ago.
“I give Bob Thompson and [Sandpiper President] Steve Thompson all the credit in the world for working back and forth and working through all the issues,” Terry said. “They stayed focused on doing the right thing for our members and our citizens in Ocean Pines, and at the same time doing the right thing for [Sandpiper].
“To me, that’s the big issue here,” Terry continued. “We had almost an entire year where there was nothing going on, and Bob and Steve, once they were given the authority to make it happen, they did it. I give them all the credit in the world for making that happen.”
Dave Stevens, who previously led talks during his tenure as board president, was also upbeat.
“Speaking as an individual director, I believe the executed agreement is to the benefit of the OPA.” he said a statement emailed last Friday.
Stevens previously said he wanted a franchise fee from Sandpiper, but said that issue was “resolved in direct negotiations between Sandpiper and our GM, and their willingness to offer, and our willingness to accept, a reasonable financial alternative.”
He also said it was a “positive factor” that Sandpiper agreed to cover legal fees.
“Any negotiations which reach a satisfactory conclusion makes me happy,” Stevens said.
The company will pay for a land lease and transitional and overhead fees totaling nearly $400,000. Additionally, Sandpiper will reimburse Ocean Pines for more than $60,000 in legal fees incurred during the negotiations, which lasted more than a two years.
“That was a big issue, and I thought it was a great move on their part to do that,” Tom Terry said, adding that Sandpiper would “absorb” fees rather than pass costs onto consumers in Ocean Pines.
Overall, Terry described the agreement as “mutually beneficial.”
“I think it allows Ocean Pines to help them help our members and get their transition done,” he said. “Not all of our members live here, so there’s a lot of things that Ocean Pines now can do to help with the transition for anyone who wants to move to natural gas.”
Terry also stressed the importance of having Sandpiper conduct informational meetings in the community. He said the meetings would include an overall game plan, as well as a timeline as to when the upgrade would start and how long they will take.
Negotiations did not always run smoothly and talks broke off last year before the board asked General Manager Bob Thompson to try to restart negotiations roughly six months ago.
“I give Bob Thompson and [Sandpiper President] Steve Thompson all the credit in the world for working back and forth and working through all the issues,” Terry said. “They stayed focused on doing the right thing for our members and our citizens in Ocean Pines, and at the same time doing the right thing for [Sandpiper].
“To me, that’s the big issue here,” Terry continued. “We had almost an entire year where there was nothing going on, and Bob and Steve, once they were given the authority to make it happen, they did it. I give them all the credit in the world for making that happen.”
Dave Stevens, who previously led talks during his tenure as board president, was also upbeat.
“Speaking as an individual director, I believe the executed agreement is to the benefit of the OPA.” he said a statement emailed last Friday.
Stevens previously said he wanted a franchise fee from Sandpiper, but said that issue was “resolved in direct negotiations between Sandpiper and our GM, and their willingness to offer, and our willingness to accept, a reasonable financial alternative.”
He also said it was a “positive factor” that Sandpiper agreed to cover legal fees.
“Any negotiations which reach a satisfactory conclusion makes me happy,” Stevens said.