EVANS CITY – The borough might lease up to 200 acres to a company interested in drilling for Marcellus Shale natural gas.

Borough council Monday night said it’s been in informal talks with Rex Energy of State College to lease land near the borough’s reservoir next to Route 528. Since the talks are in preliminary stages, council members couldn’t offer any potential financial compensation the borough would receive for such an agreement.

Council President Bill Painter said the land is about 200 acres, although about half of that is covered by the reservoir. He said the energy company is considering slant drilling, a process where wells are drilled at an angle opposed to straight down into the ground.

Council Vice President Paul Foster said Monday night that the borough talked more than four years ago with Vista Resources, an energy company that was recently bought by Rex Energy.

The talks rekindled in the past several months, and members of the borough’s building and equipment committee will meet with Rex Energy officials soon to discuss a potential agreement.

Foster said preliminary plans would involve the company setting up several drilling wells near the Breakneck Beagle Club on the north side of Route 528.

Painter said he’s most concerned that the drilling would be relatively close to the borough’s reservoir, an issue that would have to be resolved before an agreement would be reached.

“The obvious concern we have is the safety of our well water in the area,” Painter said. “Those concerns would have to be addressed before any kind of agreement takes place.”

Foster agreed that he’s concerned about the community’s drinking water being in proximity to a potential gas drilling operation, but added that the borough won’t enter in to any kind of agreement before thoroughly investigating the safety of such a proposition.

“It would be a nice source of income for the borough, but we’d have to make sure those issues are taken care of, he said.