Game land energy deals net $4.7M for PGC

Harrisburg — Pennsylvania Game commissioners, at their recent quarterly meeting here,  approved lease agreements with energy companies that will bring in nearly $4.7 million in bonus payments and a yet undetermined amount of royalties.

Nearly all of the lease agreements result from requests by companies that have strong leaseholds in the surrounding areas, and already are in possession of the energy rights on Game Commission properties. The agreements ensure the fuels are extracted with little to no surface impacts on game lands.

The agreements are:

  • A lease with Range Resources Appalachia for oil-and-gas development on a 62.6-acre portion of State Game Land 117 in Washington County. The $2,500 per acre bonus payment is worth $156,500, and the commission is to receive 19 percent in royalties from fuels that are sold.
  • A lease with Southwestern Energy Production Co., of Houston, Texas, for oil-and-gas development across 736.2 acres on State Game Land 175 in Susquehanna County. The $3,000 per acre bonus payment is worth $2,208,600 and the commission is to receive 20 percent in royalties from the fuels that are sold.
  • A lease with Southwestern Energy Production Co., of Houston, Texas, for oil-and gas development on a 774-acre portion of State Game Land 35 in Susquehanna County. The $3,000 per acre bonus payment is worth $2,322,000 and the commission is to receive 20 percent royalty from fuels that are sold.
  • A lease with Robindale Energy Service Inc., of Armagh, Pa., to mine and remove approximately 64 acres of coal rights in Beccaria Township, Clearfield County. While the coal rights on the property are owned by the Game Commission, the property on which the mining would occur is privately owned.

The five-year agreement sets royalties at either 6 percent of freight-on-board pit price or $2.50 per ton – whichever is greater – for coal that is sold and has a BTU value of 10,000 or greater.

Royalties are set at 6 percent for coal that is sold and has a BTU value of less than 10,000.  Freight-on-board price, or F.O.B., is the price for which coal is sold at the pit.

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