State Leases 33,000 Acres to Gas Driller
The state is leasing more forest land to a company that wants to drill for natural gas in the Marcellus Shale region and, as a result, Governor Ed Rendell is supporting legislation that will put a moratorium on leasing additional state forest land for gas drilling.
He's also reiterating his call for a Marcellus Shale severance tax.
Rendell says Houston-based Anadarko Petroleum Corp. has agreed to pay Pennsylvania $120 million for the right to drill on 33,000 acres where Centre, Clinton and Lycoming counties meet.
The newly leased acres cover 11 tracts in the Moshannon, Sproul and Tiadaghton state forests. For 27,185 acres on ten tracts, Anadarko agreed to pay $4,000 per acre, consistent with the average price paid during DCNR's January 2010 competitive lease sale. For the remaining 5,711 acres on one tract, the Commonwealth will receive $2,000 per acre because the geology underneath is not as promising for gas production.
The lease of the 11 tracts totals about $120 million. DCNR's January 2010 lease sale generated $128 million -- $60 million of that went toward this year's General Fund budget and the additional $68 million will be applied to a target of $180 million to help balance the state budget for the fiscal year that begins July 1, 2010.
"With this agreement negotiated and the money in the bank, we can safely be on board with the moratorium which passed the House and is now in the Senate. If the Senate passes the legislation and it comes to my desk, I will sign it," Rendell said.
Senate Republicans, who control the chamber, have said there are no plans to act on the bill.
Rendell said this lease ensures the citizens of Pennsylvania will benefit in a positive way from the development of the Marcellus Shale on public lands. He said be believes it is vital for the General Assembly to pass a severance tax to further protect the interests of the citizens of Pennsylvania.
“We’re the only major shale tax without a severance tax and that should end,” Rendell said in a news conference this afternoon. “I’m hopeful that the House of Representatives will pass a shale tax quickly, and I’m hopeful that the Senate will agree.”
He's also reiterating his call for a Marcellus Shale severance tax.
Rendell says Houston-based Anadarko Petroleum Corp. has agreed to pay Pennsylvania $120 million for the right to drill on 33,000 acres where Centre, Clinton and Lycoming counties meet.
The newly leased acres cover 11 tracts in the Moshannon, Sproul and Tiadaghton state forests. For 27,185 acres on ten tracts, Anadarko agreed to pay $4,000 per acre, consistent with the average price paid during DCNR's January 2010 competitive lease sale. For the remaining 5,711 acres on one tract, the Commonwealth will receive $2,000 per acre because the geology underneath is not as promising for gas production.
The lease of the 11 tracts totals about $120 million. DCNR's January 2010 lease sale generated $128 million -- $60 million of that went toward this year's General Fund budget and the additional $68 million will be applied to a target of $180 million to help balance the state budget for the fiscal year that begins July 1, 2010.
"With this agreement negotiated and the money in the bank, we can safely be on board with the moratorium which passed the House and is now in the Senate. If the Senate passes the legislation and it comes to my desk, I will sign it," Rendell said.
Senate Republicans, who control the chamber, have said there are no plans to act on the bill.
Rendell said this lease ensures the citizens of Pennsylvania will benefit in a positive way from the development of the Marcellus Shale on public lands. He said be believes it is vital for the General Assembly to pass a severance tax to further protect the interests of the citizens of Pennsylvania.
“We’re the only major shale tax without a severance tax and that should end,” Rendell said in a news conference this afternoon. “I’m hopeful that the House of Representatives will pass a shale tax quickly, and I’m hopeful that the Senate will agree.”
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