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. DC...