Township in Western PA Offered $4500 per Acre for Marcellus Drilling Lease

Winfield Township supervisors are mulling over an offer from BLX-Redmill Gas to lease a park in Butler County, PA for Marcellus drilling. But it’s a complicated offer involving re-selling the drilling rights by packaging them with other properties in the area, and also selling the rights to install pipelines to a third party.

Winfield Township supervisors have asked their solicitor to review an offer from BLX-Redmill Gas Co. to lease 60 acres of the 69-acre township park, located behind the municipal building, for natural gas exploration.

Supervisors were told the lease could provide the township with about $4,500 an acre used and residual payments if a well is a high producer.

But because the rights to the Marcellus shale natural gas lines would be sold to an outside driller, Lasslo told supervisors that exploration — and the residuals — could take several years to begin.*

Supervisors may vote on whether or not to accept the lease agreement at next Thursday’s meeting.*

*Pittsburgh Tribune-Review (Mar 28, 2011) – Lease offer for gas drilling at Butler County park under review