School board plans vote on gas lease near school
BUTLER TWP — Underground land surrounding Oakland Township Elementary School might soon be leased to Rex Energy.
Butler School Board members will vote on the gas lease at their meeting Monday as long as the board solicitor approves the contract.
Rex Energy has proposed to lease about 11 acres near the elementary school, paying $3,500 per acre up front, and the district will receive 16 percent of the royalties once the wells are active.
The district already has gas lease contracts with Rex Energy near Summit Township Elementary School, which the board passed in 2010, and on two parcels of land near Connoquenessing Elementary, passed in 2010 and 2013. The district will receive 15 percent of the royalties once those sites become active.
“The terms of this proposal are very similar with the terms of the others,” said Mike Strutt, superintendent.
As of now, the district has not received royalties from any of the sites.
All of the contracts do not include surface rights. This means drilling rigs, pipelines and other surface equipment are prohibited on district property.
