Ohio School Signs Marcellus Drilling Lease for School Property – $2K per Acre, 15 Percent Royalties
United Local Schools in Hanoverton (Columbiana County), Ohio approved a Marcellus Shale gas drilling lease with DPS Penn yesterday:
The United Local school board Thursday night approved a lease agreement for the rights to oil, gas and other minerals owned by the district.
The board approved by a 5-1 vote a non-surface contract with DPS Penn for 86 acres which prohibits any drilling on school property.
DPS Penn has been representing Chesapeake Energy in gathering leases for the Marcellus Shale project.
In the contract, the district will receive an up-front bonus of $2,000 per acre and a 15 percent royalty on the production. The company has five years to begin production, but holds an option to renew the contract for another five years, with a second $2,000 bonus, if production has not started in that time.*
*The Morning Journal (May 13, 2011) – United board signs lease agreement