BUTLER TWP — The Butler Area Sewer Authority on Tuesday approved leasing two lots of its land to a natural gas drilling company.

The deal involves a combined 0.8 of an acre at pump stations along Benbrook and Bryson roads.

R.E. Gas Development, a subsidiary of Rex Energy with an office in Evans City, will pay the authority $800 up front for the five-year lease, while the authority would have any royalty rights should the company remove gas from the property.

The agreement was approved at the authority’s monthly meeting.

Tom Rockovich, the executive director of the authority, said the deal does not necessarily mean a pipeline will go under the authority’s land.

“They’re trying to tie up the land around the area where they might put a pad,” he said of Rex Energy. “They don’t want to take any chance of going under land they don’t have a lease on.”

Rockovich said there will not be a pad on the authority’s land due to the small size of the plots.

“There would be nothing on the surface,” he said.

Rockovich said he believes Rex Energy is still negotiating for lease rights with other property owners in the area, which could result in a pad on nearby property.

However, Rockovich said he has not been informed on when or where Rex Energy may start drilling in the area.