The Butler County Board of Commissioners on Wednesday approved a five-year lease with an Allegheny County company allowing gas exploration, which may include Marcellus Shale, on 174 acres adjacent to the Sunnyview complex in Butler Township.

Under the contract, Phillips Exploration of Warrendale will pay the county a one-time fee of nearly $700,000, or $4,000 an acre.

The county also receives royalties of 18 percent, but the company’s expenses will be deducted from that amount.

Phillips is prohibited from drilling any closer than 500 feet from private buildings, such as homes, and 200 feet from any county-owned structure, such as Sunnyview Nursing and Rehabilitation Center.