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Twp. agrees to lease

XTO to remove gas under parks

BUTLER TWP — The township commissioners Monday night assured residents the lease with XTO Energy to remove Marcellus Shale natural gas and oil from under the township’s two parks does not mean there will be drilling or pipes on the property.

The board unanimously agreed to enter the agreement, which allows the company to remove the gas from 6,000 to 7,000 feet under the ground.

XTO, a subsidiary of ExxonMobil, offered the township $2,677 per acre and a 15 percent royalty. It was the only company to submit a bid for the activity.

The company already has a drilling site in the township at the AK Steel property at 1 Armco Drive in Lyndora. Drilling began there in November.

Butler Township Park is at 468 S. Duffy Road, and Preston Park is at 415 S. Eberhart Road. Both have about 100 acres.

Under the proposal, the township would get more than $500,000 for the rights for the land plus the royalty.

Township manager Ed Kirkwood said the township would receive the money within a month of the lease’s execution. It then will be placed in an interest-bearing account until potential use in the 2015 budget.

Kirkwood and solicitor Rebecca Falvo said they are reviewing at what, if any, restrictions the state Department of Conservation and Natural Resources might have on how the income is spent. The concern rises from a $15,000 grant the township received in 2013 and already used to develop a master plan for the parks.

It’s possible the DCNR might mandate a portion of the proceeds be used for recreation, Kirkwood said. But because the Marcellus Shale industry is so new, the guidelines are not yet well known.

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