Range Offers $2.2M Bonus to Drill at Dutch Fork
Washington PA Observer
Reporter
2 February 2012
By Scott Beveridge, Staff writer
sbeveridge@observer-reporter.com
The state Fish and Boat Commission will accept a bonus payment of
$2.2 million from a Marcellus Shale natural gas driller under an
oil and gas development lease at the damaged Dutch Fork Lake
property in Donegal Township.
The money from Southpointe-based Range Resources will fund the
commission's efforts to repair dozens of other high-hazard dams it
owns across the state, said Eric Levis, the commission's press
secretary.
"It takes years to rebuild these and a lot of money," said Levis,
estimating the commission needs nearly $30 million to repair all
of its dams.
The commission also will receive 18 percent in royalties on gas
produced from the property under the terms of the lease agreement
the commission approved Tuesday, he said.
The commission last year approved a Marcellus Shale program, which
allows drillers to tap into the oil and gas under its properties
only if they can set up drilling rigs on adjoining land, Levis
said.
"They are not allowed to bring equipment onto our property," he
said.
The commission already has secured the $4.5 million it needs to
rebuild the Donegal dam and restore Dutch Fork Lake, which was
drained in the aftermath of Hurricane Ivan in 2004. Work on that
project began in August.
Range spokesman Matt Pitzarella was unavailable for comment
Wednesday.