Board sells out quick & cheap to Marcellus drillers over No. Hills community opposition.

[Divernan]

I say "quick" because: the board did not take the time to have the lease reviewed by an attorney versed in oil and gas leases, or to understand in detail exactly what they were signing. The board chairman had been in secret negotiations for over a year before he signed an agreement. But the other board members voted with only 2 days notice. Throughout the commonwealth, the drillers are going after the low-hanging fruit with high pressure tactics worthy of a used car salesman.
http://www.timesleader.com/news/Gas-lease_tips__offered_before_you_sign_up_07-04-2009.html

and I say "cheap" because:
"Kenneth L. Balliet, a forestry and business management educator with the Penn State Cooperative Extension, recently took a trip to Fort Worth to see the economic impacts of those deposits. He said leases are being signed for $18,000 per acre in areas where production has proven strong."
http://www.timesleader.com/news/hottopics/shale

In northeast PA, one landowner leased 20 acres for $6,000 an acre and 20% of the royalties.
http://en.allexperts.com/q/Oil-Gas-3147/2009/11/Marcellus-Shale-Lease-Royalty.htm

The park is 119 acres & this lease is automatically extended indefinitely if the drillers actually drill.
So this board, which is supposed to be representing the interests of its communities, has sold a long term lease for a one time payment under $300,000, along with unspecified and unguaranteed future royalties.

One nearby house is for sale in that area for over $700,000 and a .87 acre residential lot for sale for $15,000. Extrapolating a value of $18,000 per acre for residential development, that land is worth over $two million. Residential development would bring in annual property taxes as well. Based on my property taxes in the area, I would conservatively estimate annual tax income to school districts/local & county govt. of $660,000 from residential development of this land.

Shanopin Country Club is in the area. In Ben Avon Heights, houses are on the market for $218,000, 300,000, $350,000 and $425,000. I'm sure these properties currently bring in nice fat annual property taxes to the local municipalities and school district. As has been documented in other states and in parts of Pennsylvania already, the noxious fumes and voluminous big rig traffic of the thousands of tankers hauling fracking water have left homeowners unable to sell property and banks unwilling to give residential mortgages. Perhaps the drillers will NOT end up drilling on this land. But the mere possibility will sigificantly depress the real estate market immediately.

Gas drilling OK'd despite protests of residents
Authority votes to allow drilling in community park in North Hills
Friday, April 08, 2011

"This land isn't going anywhere," said Michael Bett, a member of the Ben Avon Council. "I don't know why we have to rush into the first deal that is presented to us. It may be a great deal, I don't know. But I'd like to know more."

"This takes this property and this community down a road we've never gone before," said Jane Robinet of Kilbuck. "I was appalled that this was going on and none of us knew about it. I can't believe that something like this can happen on this big of an issue with this big of an impact."

"I feel this is too big of a risk for our community," said Lisa Cole of Ben Avon. "We want to live here for a long time. We don't want to be forced out because we can't drink the water."

"It's like putting Neville Island across the street from us," said Ted Popovich of Ben Avon. "I'm aghast at this process because, in my mind, it hasn't been proven safe yet."

Read more: http://www.post-gazette.com/pg/11098/1137866-54.stm#ixzz1IvGK8ASW