Fracking company responds to cease and desist

Aug. 13, 2014 @ 12:00 PM

Frank Sides, who has been seeking to buy mineral rights in Durham and Chapel Hill for Crimson Holdings Corporation, intends to register with the North Carolina Department of Environment and Natural Resources after he was issued a cease-and-desist order.

The N.C. Department of Justice wrote to Sides on July 28 telling him he is in direct violation of North Carolina law for not registering as a landman with the NCDENR, which is required to buy mineral rights. He responded Monday.
The leases from Crimson Holdings Corporation, which were sent to the town of Chapel Hill for a portion of Meadowmont Park and to the Ellerbe Creek Watershed Association, offer $5 per mineral acre.
The letter from the N.C. Justice Department also spelled out how the leases failed to comply with law, including violations of a maximum lease term of 10 years, landowner education information to be provided with the lease, and lender approval of lease.
In the letter, Sides wrote that the lease form “has been amended to comply with North Carolina law.”
He writes that he is currently awaiting approval of registration from the NCDENR.
Crimson Holdings Corporation was also breaking the law in that it was not registered with the North Carolina secretary of state’s office.
Sides wrote that the registration process has been initiated to register Crimson and that the business address of Crimson is 1521 Concord Pike, Suite 301, Wilmington, Delaware.
According to the July 28 letter, the N.C. Justice Department could not locate any information on Crimson Holdings Corp.
The previous address listed for the company was the address of Campbell Development, LLC, in Pittsburgh, Pa.
A spokesperson for Brandywine Executive Center, the space for the listed address, said there is no record of a Crimson Holdings Corp. listed in the center.
According to the Delaware Office of the Secretary of State, Crimson registered as a company in April of this year. The registration address is the Delaware address listed in the letter from Sides.