Krieger signs gas lease

Property contains spring land

By FRITZ MAYER

LIVINGSTON MANOR, NY — Andrew Krieger, who owns multiple properties in Sullivan County, has signed a lease to allow gas drilling on about 186 acres of land. The gas leases, which are on file in the government center in Monticello, list two parcels in the Town of Callicoon on Shandalee Road. The leases were signed with Chesapeake Appalachia.

The leases give Chesapeake the right to explore for gas, and, while they don’t specifically mention the productive spring on the property, they do allow the company to drill water wells on the property for use during drilling operations. Krieger, who is reportedly in Dubai, could not be reached in time for comment on this story. Simms Foster, who works with Krieger on various projects, said he was not involved with the gas leases and could not provide further details.

The leases were signed in August 2008, but were not recorded in the county until January 27.

In a related development, Leisure Time Spring Water, which has been struggling through bankruptcy proceedings, was sold on March 27 to Boreal Water, a company based in Quebec, Canada for $2.5 million. Leisure Time gets most of its water from the spring on Krieger’s property. Francine Lavoie, the president and CEO of Boreal, said she was not aware of the gas leases, but did not think the wells would impact the Leisure Time operation. She said that would be determined by the proximity of any gas wells to the spring and other factors, which she had not yet explored.

Livingston Manor and nearby Roscoe are important trout fishing centers, with two rivers running through the area. Ramsey Adams, the executive director of Catskill Mountainkeeper, said that the quality of the water in the area is critical to the region, and that gas drilling is an issue that needs careful examination.

Krieger in the news

Krieger has been in the news recently because four of the buildings he owns in Livingston Manor are tied up in foreclosure proceedings with Wachovia Bank, and Krieger reportedly stopped paying the mortgages in August 2008.

In December, the buildings were placed into receivership and attorney Michael Davidoff was appointed to collect the rents and give the proceeds to the bank as the foreclosure proceeds. Foster has said the action was sparked by Wachovia, which was having well-publicized financial woes, and called the mortgages last summer. Foster has said that Krieger remains committed to the area and he expects the matter to be resolved soon.

Krieger had plans for a lavish resort in the Livingston Manor area, with a hotel and hundreds of homes. With the economy collapsed, those plans are now on hold.