First Choice Energy

Wednesday, July 25, 2012

Village of Carrollton Approves Lease, Receives Nearly $1 Million

From The Times Reporter:
The village council approved a lease agreement Monday with Rex Energy to lease 268 acres of village land for oil and gas exploration, netting the community about $938,000 in revenue.
The agreement will provide $3,500 per acre in sign-on bonus money, and will pay 20 percent of the gross royalty to the village.
You may recall that Chesapeake Energy had offered $5,800 per acre in bonus money (with the same 20 percent royalty) on 275 acres of land, but withdrew that offer after council delayed in providing a response.  The delay in accepting Chesapeake's offer thus made a difference of $657,000.

The Times Reporter further stated:
Council members Andy Gonda, Mary Ann Miller, Chris Barto and Wilma Lambert voted in favor of the agreement.
Members Luke Grimes and Dan Locke voted no. Both men said the agreement should not have been about money but should have been about protecting the village’s water. Most of those 268 acres are on the village well properties.
Locke said he felt the council should have negotiated this separately and not as a group. “Safeguards for the water should have been built in. It’s not about the money,” said Locke.
Read the entire article here.

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