The Herald, Sharon, Pa.

Local News

October 26, 2012

County board OKs gas, oil lease

By Sandy Scarmack Herald Staff Writer

MERCER COUNTY — Commissioners gave unanimous approval Thursday to an oil and gas lease agreement that has the potential to bring $1.4 million in revenue, once title researchers are certain the county clearly owns the parcels it intends to lease.

Hilcorp Energy, based in Texas, offered $3,250 an acre for the 435 acres available, plus 17 percent in royalty fees if gas is produced from any wells on the properties, said Chairman John Lechner.

He cautioned, however, that while the county stands to gain financially if everything works out, the money can’t be counted on for the upcoming budget. There is no specific timeline for the leasing agreement to be executed and he wasn’t certain how long the title search process could take.

The properties involved include the Munnell Run Farm in Coolspring Township, the 4-H park on Route 19, an area at the intersection of Interstate 80 and Route 19 known as “the gravel pit”, two parcels at the Mercer County Jail in Findley Township and 33 acres in Lake Township.

Of those areas, drilling pads could only potentially be placed at Munnell Run Farm, the 4-H park and the gravel pit. The jail property is too small to accommodate a drilling pad and the property in Lake Township is a dam, Lechner said.

In another matter, however, the vote wasn’t unanimous when it came to buying two Chevrolet Malibus for the county’s fleet of cars.

The board has been dealing with this purchase for several months, Lechner said at a work session Wednesday, and he feels time is running out to get the vehicles at the best price. Both are coming from Day Chevrolet in Monroeville, Pa., as part of a Westmoreland Council of Governments national leasing plan. The 2012 models cost $19,100 each and are available right now, he added.

Commissioner Matt McConnell voted against the purchase, saying he would prefer to spend the money locally if possible. He said Wednesday he recently found out that local dealerships have an opportunity to participate in a special pricing program for vehicles for government use and he wanted to wait and give them an opportunity to get involved.

State restrictions force the commissioners to go through a local Council of Governments or Commonwealth of Pennsylvania’s cooperative purchasing program for anything costing more than $18,500.

Lechner said that while he, too, would prefer to spend the money locally he is more concerned that the county get the two 2012 vehicles at this price before they are gone. He said he is afraid that by waiting for local dealerships to get involved they will be forced to purchase 2013 models at an increased cost.

Commissioner Brian Beader voted in favor of the purchase but complained about the state restrictions that make it difficult to bid locally. “We’ve pleaded for years to be able to purchase locally, to help local vendors. And it’s gone nowhere,” he said.

 

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