New gas deals offer nearly $1.5M bonus payments to Game Commission

Energy-development agreements approved recently by the state Game Commissioners are expected to result in nearly $1.5 million in bonus payments, which will be added to the Game Fund.

Energy Corporation of America has agreed to develop natural gas under about 370 acres beneath state Game Lands 223 in Greene and Cumberland townships, Greene County.

The five-year agreement will not result in any surface disturbance to the game lands, and the corporation will pay the Game Commission 18 percent royalty for all oil, gas and other liquids or condensates produced and sold from the tract.

Additionally, the corporation has agreed to pay a $4,000-per-acre bonus payment, which will add about $1,482,400 to the Game Fund.

The board also approved an agreement to develop the gas rights beneath 0.36 acres of the Mount Wheeler Tower Site in Washington County, which was acquired by the Game Commission in 2008.

Range Resources has agreed to a five-year lease that will result in no surface disturbance to the site. The company has agreed to pay the Game Commission 20 percent royalty for all oil, gas and other liquids or condensates produced and sold from the tract, as well as a $2,000 bonus payment.

Oil and gas development at each site will be regulated by the commonwealth’s oil and gas regulations and the Commission’s Standard Non-Surface Use Oil and Gas Cooperative Agreement.

COMMENTS