Mineral Package
Harriman, Tennessee
3,287 Acre (Surface & Minerals)
2,000 Acre Mineral Only
TOTAL Mineral Acreage 5,287

SOLD
2,390 Acres of fee simple remaining
plus, 2,000 acres severed minerals

OFFERED BY BILL BRISSEY REAL ESTATE INC.
1-877-226-7380
EMAIL: BBRE@CAROL.NET

Proven Coal Reserve                                                Possible Natural Gas and Oil Reserve
 

DUKE ENERGY TRANSPORTATION NATURAL GAS LINE ON SITE

Vanguard Resources LLC, also known as Vinland Energy (formerly Ariana), is successfully drilling natural gas wells within 500 feet of subject property.  Present owners have an agreement to use Vinland's compressor if one should be successful in drilling on subject property.

History

The original grant some 100 years ago was for a fee simple tract of 6,000 acres.  During the past 100 years, two thousand acres of surface was sold, and the original owners retained the mineral rights on the 2,000 acres.  The Harriman Property Partnership (HPP) purchased the property in the 1970’s.  Their deed called for 4,000 acres fee simple and an additional 2,000 acres of mineral rights.  In the mid 1970’s, HPP purchased 900 additional acres fee simple surface and minerals.

 In 1987, William S. Brissey Trustee IV purchased 4,900 fee simple plus 2,000 acres minerals only.  William S. Brissey Trustee IV now owns 3,287 acres fee simple and an additional 2,000 acres of fee minerals (for a total of 5,287 acres of minerals ). 

HPP purchased the property in the early 1970’s for the purpose of mining the coal.  In the early 1970’s, energy prices were rising rapidly and oil was near thirty ($30.00) dollars a barrel.  Coal, gas, and oil exploration in East Tennessee become a booming business.  Coal exploration was especially the rage. 

HPP employed Dr. Dean Kent of Kenwill Inc. to supervise the exploration of their coal.  Much data was gathered.  HPP-Kenwill drilled nine (9) test wells (See Exhibit 1).  Dr. Kent was able to determine the types of coal, the depths of coal, the thickness of the various coal seams, and locations of different types.  The depth of these wells varied from 930 feet to 1430 feet.

With this information, Dr. Kent was able to estimate a total tonnage for one type coal Sewanee (Richland) to be in the 38,000,000 ton range (See Exhibit 2).  These drilling logs are available to a prospective buyer as well as contour maps showing the locations of the various coal types.  As these tests wells were drilled, samples were taken and sent to Bituminous Coal Research.  Their test showed this coal to be very high quality with metallurgical potential, a very high BTU 13,638 range (See Exhibit 3).  Dr. Kent employed Nichols Laboratory in Knoxville Tennessee to test for moisture, volatile matters, fixed carbon, ash, sulfur, and heat value (See Exhibit 4).

 There are five (5) different coal seams located on the subject property.  Some can be recovered by strip mining, and others would need to be mined by shaft or auger mining.  The Sewanee (Richland), the larger coal reserve, is the deepest coal seam. 

In 1984, Dr. Dean Kent estimated the value of the in ground Sewanee coal seam to be worth $6,774,724.00.  These prices were based on the in ground values in 1984 with proven values of reserves at $0.55 coal per ton (See Exhibit 5).  This estimate considered the total tract of 4,900 acre fee simple and the additional 2,000 acre of minerals. 

Today I am offering 2,477 acre fee simple and the 2,000 acre minerals only for a total of 4,577 acres.  Today’s market value for in ground proven reserves is $1.00 per ton.  Using Dr. Kent figures and taking into consideration less property but considering the 2007 in ground values, the values would be worth $8,161,225.00 (See Exhibit 6).

Gas-Oil

Subject property has a major gas transportation line owned by East Tennessee Natural Gas.  Natural gas-oil is being pursued in East Tennessee must like the gold rush in California many years ago.  There is a major successful Natural Gas drilling operation within five hundred (500) feet of the subject property.  The property has a large Duke Energy transportation line bordering US 27 for some 1,000 feet.  This is a tremendous asset in transporting gas to the market.  Vanguard, Vinland (Ariana) Energy of Knoxville Tennessee is drilling gas wells within 500 of subject property.  These are successful gas wells.  Vinland recently purchased a right of way from William S. Brissey Trustee IV in order to transport their gas to market through the line located on my property.  There are many successful gas and oil wells in East Tennessee, and many more are being drilled each month (See Exhibit 7).  Vinland Energy has offered to lease subject properties and has guaranteed three (3) wells the first year.  Today successful gas wells are being drilled to a depth of 2,000 feet or more.  In 1979 when test well #8 was drilled their drilling equipment would not allow them to go deeper then 1425 feet, however the driller needed to go another 600 feet to reach the Trenton Hermitage zone (See Exhibit 8)

NOTE: Ariana Energy became a public company in November, 2007; now known as Vanguard Resources LLC

MORGAN COUNTY GUSHER PROMPTS INTEREST IN OIL EXPLORATION!!!
1st 24 hours 12,000 barrels per day
 (Pryor Oil Co. 12-3-2003, See Exhibit 9)

Other Minerals

One can obtain more information regarding oil and gas exploration in Tennessee by logging online to the Tennessee Oil and Gas Association at www.tennoil.com or at the State of Tennessee Conservation Division of Geology by phone at 865-632-1500 or online at www.state.tn.us/environment/tdg.

Timber

There have been several independent estimates from foresters who “looked at” the timber for their own use.

Prices offered by William S. Brissey Trustee IV for this timber have ranged from six hundred thousand ($600,000.00) dollars to nine hundred thousand ($900,000.00) dollars.