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Friday, August 17, 2012

Carrollton Council Votes Down Emergency Approval of Rex Energy Lease

From the Times Reporter:
KEY ACTION  Failed to approve a contract for leasing of oil and gas as an emergency measure.
Mayor Frank Leghart presented an ordinance for a contract with R. E. Gas Development, LLC for oil and gas rights on village-owned lands. Although the council approved the sale at its previous meeting, on a 3-3 vote they failed to pass the ordinance as an emergency measure.
The ordinance was given its first reading. It will require two more readings, at the next two council meetings, and would not go into effect until 30 days after that date.
Leghart was concerned that without immediate/emergency action, the gas and oil company could withdraw its offer, as another energy [company] had done with a previous offer.
Read the rest of the article on this week's meeting here.

The council previously failed to take decisive action on Chesapeake Energy's $1.5 million bonus payment offer for the land in question, leading to that offer being withdrawn.  Last month the lease with Rex Energy, which will bring about $600,000 less in signing money, was approved by a 4-2 margin.

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