The Herald, Sharon, Pa.

Local News

August 21, 2013

Cash gushes from drilling

City, school get first lease checks

HERMITAGE — A drilling company recently gave Hermitage city and school districts checks to lease public land.

The agencies agreed to lease land in December, but were waiting to see if HilCorp Energy ILP would pick up their options.

“We’re very happy to see that,” school Superintendent Dr. Daniel Bell said of the $202,875 check.

School officials have not decided what to do with the money, he said.

The city received $88,853, said City Manager Gary P. Hinkson.

“It was placed in a separate revenue fund that will contain revenues from various energy sources – gas well production, lease income and fees,” Hinkson said. “Future uses for that money are yet to be finalized but would probably be allocated on infrastructure improvements and recreation facilities. The board (of commissioners) has expressed interest in utilizing some of the money for work at the Stull farm.”

The city was paid $3,000 an acre, while the school district set more restrictions – no drilling or driving on the surface of school property – and was paid $2,500 an acre.

Hinkson said restrictions in the city lease based on the size of parcels and distance from structures effectively bans surface activity.

About 30 acres of city property is leased. City-owned land in LindenPointe technical business park was not part of the deal, and property subject to other leases or to which the city does not control the mineral rights, including the Stull farm on Sample Road, Whispering Pines Community Park on East State Street and the city garage on Virginia Road, also are not part of the HilCorp lease.

The school district leased more than 80 acres.

If HilCorp drills, the city and school would be paid a 17-percent royalty based on the gross value of the fossil fuel that comes up, and the leases would last as long as the well or wells produce.

If HilCorp does not drill within five years, the leases could be renewed.

1
Text Only
Local News
  • CIRT team in Jackson Center Man arrested after shooting standoff

    One Jackson Center man is recovering from a bullet wound, and the borough resident accused of shooting him sits in jail after a long night of drinking that state police say turned into a case of attempted homicide.

    July 31, 2014 1 Photo

  • Sharon Speedway location City on track for new Speedway store

    Speedway is lining up its administrative and bureaucratic cones on plans for the gas station and convenience store chain to zoom into downtown Sharon.

    July 31, 2014 1 Photo

  • Guards, county OK deal

    County officials and guards at the Mercer County Jail have reached a tentative contract agreement that, if approved, halts the idea of privatizing operations at the facility.

    July 31, 2014

  • Doss: Public has right to know

    A major part of Farrell council’s work session Monday was spent deciding whether or not to inform the audience about an unofficial police proposal from the City of Sharon.

    July 30, 2014

  • Budget falling short despite tax hike

    Farrell residents may have seen an income tax increase this year, but the city isn’t seeing the extra dollars City Manager Michael Ceci budgeted for.

    July 30, 2014

  • oakwood graves 1 Resting together

    Visitors to Oakwood Cemetery would see many  familiar local names if they looked down the hillside to the left just inside the gate on Sharon’s North Oakland Avenue.

    July 30, 2014 3 Photos

  • Police: Kids in car were OK

    The mother of two young children was drunk and passed out when police found them all in a car parked along a city street, Sharon police said.

    July 29, 2014

  • To talk – or not – about police

    The mysterious agenda item, “No. 10,” at Farrell’s council meeting Monday became the center of a heated workshop and business session.

    July 29, 2014

  • Community thanks its first-responders

    Sharpsville honored its emergency responders Sunday at an event that included Mertz Towers residents as special guests.

    July 28, 2014

  • Drilling boom challenges state inspectors

    The state’s 83 well inspectors face a daunting enough challenge keeping tabs on 120,000 active oil and gas wells that have been drilled over the last century.

    July 28, 2014

  • Kidds Mill Covered Bridge A span of time

    Four generations of the Cadman family have enjoyed the Kidds Mill Covered Bridge, which is in Pymatuning Township near where the family’s ancestral farm is located.

    July 28, 2014 3 Photos

  • Intruder hurts woman, takes $5

    A home invasion in Hermitage Friday night sent an elderly woman to the hospital and netted the robber $5.

    July 27, 2014

  • national night out March against crime set for Aug. 5

    At the last Southwest Mercer County Regional Police Commission meeting, Chief Riley Smoot Jr. presented the number of incidents for each of the four communities in May.

    Farrell topped out at 819.

    July 27, 2014 1 Photo

  • high street trail Peaceful pathways

    History buffs and picnickers in the Shenango Valley won’t have to drive to Sharpsville to hang out at the old Erie Canal extension lock. They’ll soon have the option to walk or roll in on bicycles and even powered chairs to visit Canal Park near the outflow of Shenango Dam.

    July 27, 2014 1 Photo

  • balloonquest1 Balloon Quest celebrates 25 years

    Today is the final day of the 25th annual Western Pennsylvania Balloon Quest at Scotland Meadows Park.

    July 27, 2014 1 Photo