Washington School District finalizes lease with gas company
The Washington School Board on Tuesday unanimously approved leasing approximately 36 acres of district-owned property to Range Resources, with an up-front payment of about $108,000.
Range’s lease with Washington School District also carries an 18% royalty from any gas that is produced and sold from the district’s property located in Amwell Township, several miles from the district’s campus.
Directors voted unanimously in favor of the five-year lease agreement.
“It’s a plus for the district; it’s money we frankly don’t have to do anything for. It will be a nice addition. Schools can never turn away finances,” said Superintendent George Lammay. “You don’t budget for this because the numbers will fluctuate … but you can take these kinds of funds and fund one-time expenses, like if we needed a piece of equipment.”
Washington is the most recent school district in Washington County to sign a lease agreement with a gas company.
Avella, Burgettstown, Canon-McMillan, Chartiers-Houston, Fort Cherry, McGuffey, Trinity, and Western Area Career and Technology Center are leaseholders.
Since 2011, Washington County school districts have generated more than $5.3 million in revenue from lease agreements and royalties paid from wells the company developed and now produce.
In other business, the board approved the 2023-24 Intermediate Unit 1 budget, which calls for total projected expenditures of $2,553,939, an increase of $316,965 from last year’s budget.
Contributions to the general operational budget are pro-rated to 25 participating school districts by a formula that takes into consideration the market value, aid ratio, and enrollment of the district. Washington’s share of the general operational budget is $12,963.55, a decrease of $286.10 from last year.