Company Decides Not to Drill

Seneca Resources Corporation has decided it will not sign leases worth $31 million to drill on state forest land in Tioga and Lycoming counties.

No reason has been given.

In December, Governor Ed Rendell said he planned to take $174 million of the $191 million coming from Seneca and three other companies to help fill a shortfall in the state's budget.

Rendell's press secretary Chuck Ardo says the administration is waiting to see whether ExxonMobil, the second-place bidder, wants to exercise its option before deciding what to do.

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