Jul 16, 2013 2 min read

Representatives from Range Resources and Rice Energy made separate appeals to the North Strabane Township Board of Supervisors Monday to consider an oil and gas lease agreement on township property.

The board went into an executive session at the end of the non-legislative meeting to discuss which company, if any, should be granted a lease for non-surface occupancy on 81.8 acres of land on Route 519.

Kris Hancock, assistant land manager of Rice Energy, presented a brief history of the company, which got its start in Massachusetts and is now based in Canonsburg. The family owned-business started with 800 acres and now leases 40,000 acres, according to Hancock.

Rice Energy spends $10 million on well pads, which typically cost anywhere between six and eight million dollars at other companies, Hancock said.

“We’re not embarrassed to say we spend more money, but again, it’s for safety,” Hancock said. “Being family-owned, we can’t afford to have any lawsuits … We take a lot of extra measures.”

Rice Energy owns and builds its pipelines as opposed to hiring third-party contractors. The proposed lease would last five years, and Hancock said drilling would ideally begin between 24 and 36 months, depending on when current leases in surrounding areas expire.

Range Resources, a Southpointe-based company, already has leases on tracts of land surrounding the township property. The tract of land across the street from the municipal building is partially leased by Range, according to a company representative.

Range’s representative said that some leases may appear to be expiring in upcoming months, but the leases have auto-extension clauses.

In addition to considering the presentations made by drilling representatives, the board also said it would review the tax assessment settlement with The Meadows Racetrack & Casino during its executive session.