JEFFERSON TWP — The South Butler School Board might approve a Marcellus Shale natural gas lease as soon as its Sept. 14 meeting.

The agreement would be with Phillips Exploration, a part of XTO Energy, a subsidiary of Exxon Mobil.-

At the board meeting Wednesday night, Richard Roberts, head of the board’s facilities and property committee, said negotiations are nearly done.

No terms of the lease were released to the public. Roberts said the board is reviewing two pay schedules with Tom Breth, district solicitor.

The district will receive a premium if a well pad is located on its property, a fee for each of its 167 acres, and royalties on the gas produced, Roberts said.

Roberts said he would like the board to agree to the lease before the company decides to go elsewhere.