A group of landowners from Pennsylvania and West Virginia have reached a joint oil and gas lease deal worth over $100 million, reports the Pittsburgh Business Times.
One of the lawyers negotiating the deal for the landowners, Jonathan Turak, said in a statement, “This agreement represents the culmination of many months of hard work on our team’s part to deliver the best agreement possible for our members.”
The group is comprised of landowners in Greene County, Penn., and Marshall and Ohio counties in W. Va. The group consists of about 500 families, but the total acreage of the lease hasn’t been disclosed. Turak noted that the deal is believed to be the largest oil and gas lease ever signed in West Virginia’s northern panhandle.
Sam Kusic reports:
“The end result is unprecedented, with an agreement that provides more compensation, better protection, and a lease that favors all of our mineral owners. Neighbors helping neighbors is what this land group is all about, and we proved that there really is strength in numbers,” said Turak.
The payment, however, doesn’t include royalties. When the value of the royalties is accounted for, the deal’s worth could amount to upwards of $500 million over the lifetime of the lease. The lease was reached with Tug Hill Operating, an associate company of Fort Worth-based investment firm Tug Hill. A Tug Hill subsidiary, TH Exploration LLC, operates more than 350 oil and gas wells in the Marcellus Shale region.
To read the full report, click here.
This article is an update of the Associated Press story titled, W.Va. mineral owners group, driller settle on lease agreement.