Murrysville council members will decide in the next few months whether to enter into leases for oil and gas rights below two municipal parks.
Council deferred action at its Oct. 18 meeting on a proposed lease for oil and gas rights below the 234 acres that make up Duff Park. After soliciting bids, Washington County-based Olympus Energy was the sole bidder, proposing $2,500 per acre — an upfront payment of more than $500,000 — and royalties in the amount of 18% of gross proceeds.
Council members also heard a lease proposal for Murrysville Community Park from Olympus, offering a $5,000-per-acre “signing bonus” on the park’s 305 acres that would mean an additional $1.52 million for the municipality, plus 18% of gross proceeds in royalties.
“The idea is to use (Olympus’) Titan well pad off Bollinger Road and drill two or three Marcellus legs under the park and one Utica leg under the park,” Murrysville Solicitor Wes Long said.
Utica shale is generally located a few thousand feet below the Marcellus shale formations in Western Pennsylvania. The U.S. Geological Survey estimates there is about 38 trillion cubic feet of natural gas available in Utica shale formations.
Long advised council to solicit bids for oil and gas rights to the park.
“We have an obligation there because other companies (besides Olympus) may be interested in offering bids,” Long said.
Several residents spoke against leasing rights in either park.
“We set those spaces aside specifically not for any money- making purpose,” said David King of Murrysville. “We certainly wouldn’t be OK setting up retail operations at Duff Park, and even though gas and oil recovery may be happening below the surface, the principle still applies: Our parks should not be for sale.”
Resident Thomas Pike said covenants in the deed for part of Duff Park restrict Murrysville from leasing it to drillers because the subsurface rights remained with the land’s previous owners and are not Murrysville’s to grant.
“Duff Park is designated as a wild plant sanctuary,” said Laura Vincenti of Murrysville. “I continue to be worried about the immediate and long-term effects of gas and oil work in our communities. With Allegheny County having banned the leasing of parks to fracking companies, it’s kind of disappointing to see Murrysville going in the opposite direction.”
Council voted unanimously Oct. 18 to solicit bids for leasing oil and gas rights at Murrysville Community Park. Council President Dayne Dice was not present.
