Range Leases Lycoming County-Owned Land for $5.4M + 2% Royalty
Following three years of negotiations, Lycoming County Commissioners celebrated closing a deal with Range Resources to lease 1,350 acres in Jackson Township for shale drilling. The county is receiving a $5.4 million signing bonus, which works out to $4,000 per acre. Sweet. However, the county will receive just a 2% royalty for any oil/gas produced from the property. You read that right (not a typo)---just 2%, which has to be the lowest royalty rate we've ever seen negotiated, either with a private landowner or a municipality.To view this content, log into your member account. (Not a member? Join Today!)