Old Lycoming could benefit from mineral rights leasing

Township could see return of more than $164,000 on 68.5 acres

By MARK MARONEY mmaroney@sungazette.com
Old Lycoming Township supervisors are on the verge of leasing township property to a gas drilling company that may result in reducing the tax burden for residents.

The township sent a five-year renewable lease agreement with Range Resources, a company with a Montoursville-based satellite office, to its solicitor for review, said Linda Mazzullo, township manager, Monday afternoon.

“We see it as a business opportunity,” Mazzullo said. That’s because the township has a little more than 68 acres available to lease to the drillers, who are paying $2,400 per acre.

“If gas is found, hopefully, we can make enough so we don’t have to raise taxes,” Mazzullo said. Any money derived from the lease and finding gas would be put back into the general fund, she added.

Calculation means the township could see an immediate return of more than $164,000 by signing the lease agreement, with 15 percent royalties as part of the agreement.

About 24 of the 68 and a half acres are near the township farm on Princeton Avenue, with more township land owned throughout the township.

Some private land owners also appear interested, she said.

Gas speculators believe much of the county contains a wealth of natural gas deposits located in the Marcellus Shale, a deep rock formation that runs from southern New York state to West Virginia.

Mazzullo and supervisors were aware the company was asked by the state Department of Environmental Protection last month to suspend drilling operations in municipalities north of the township because of violations of the state Clean Streams Law.

But supervisors believe the benefits outweigh such risks.

Township supervisors recently approved a resolution calling for a $10-per-month increase in sewer bills starting in January.

Any little bit of revenue is needed. Supervisors welcome questions from residents at the township meetings.

Opposition to the drilling in other municipalities has centered on potential disruption of aquifers providing water to wells.

If approved by the solicitor, supervisors may sign the lease agreement at the July 8 meeting.

“I can’t see anything wrong with it,” Supervisor Janet Hall said.

Hall said she recently attended a seminar where she learned how the DEP is watching these companies closely.

“It doesn’t look like things are getting any better,” she added, regarding the local economy. “If we can get a break from a gas lease, why not.”