Sky is the Limit: CONSOL Begins Drilling at Pittsburgh Airport

sky is the limitYesterday was a special day at Pittsburgh International Airport (PIT). Yesterday CONSOL Energy, winner of the right to drill on airport property, broke ground in a big ceremony that included Pennsylvania Gov. Tom Corbett, Allegheny County Chief Executive Rich Fitzgerald, and CONSOL Energy President and CEO Nick DeIuliis. A host of other politicians and business leaders were also present. CONSOL previously paid PIT a $50 million signing bonus, after initially floating a lowball offer of $20.8 million for a signing bonus, plus 18% royalties (see CONSOL Increases Bonus Offer to Pgh Airport by 2.4 Times to $50M). CONSOL later raised their price and won the contract, which will eventually pay out something like $500 million to PIT. Beyond drilling 45 wells in the Marcellus layer, CONSOL has the option to later drill even more wells in the Utica and Upper Devonian layers at PIT. In other words, the sky’s the limit for both CONSOL and PIT…

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