JEFFERSON TWP — The South Butler School Board Wednesday night approved a Marcellus Shale gas lease with Phillips Exploration.

Phillips Exploration, a part of XTO Energy and a subsidiary of Exxon Mobil, has 90 days to sign the lease.

The lease calls for the district to get $3,750 upfront for each of its 167.57 acres plus an 18 percent net royalty payment, Tom Breth, district solicitor, said.

In addition, the district would receive a $15,000 flat fee for each well that is placed on district property, said Glenn Lang, board member and finance committee chairman.

If no wells are placed on the property, the district still would get the upfront payment and royalties, he said. The lease runs for five years. There is no automatic renewal, Breth said.