The Department of Conservation and Natural Resources this week said five companies have responded to its bid request for Marcellus Shale natural gas drilling rights on State Forest Lands that could provide $190 million for State Park and Forest improvement projects.

A total of 18 tracts were put out for bid by DCNR totaling over 74,000 acres.

The winning bidders on the state forest tracts in Tioga and Lycoming counties included Texas-based ExxonMobil, which submitted high bids for leases on six tracts, and Texas-based Anadarko Exploration & Production Company LP, which won five leases.

The others were the New York-based Seneca Energy Production Company, which won four leases; New York-based Fortuna Energy Inc., which won two; and Texas-based Hunt Oil USA Inc., which won one.

The 10-year leases include annual per-acre rental fees starting in the second year — the sale price counts as the first year's payment — and a 16 percent state royalty on natural-gas production which by law are deposited in the DCNR Oil and Gas Lease Fund.

Winning bidders must comply with both the permit requirements of the Department of Environmental Protection and DCNR lease agreements. DCNR said it does not expect activity on the leases for two years.

For more information, visit DCNR’s 2008 Oil and Gas Lease Offering webpage.

NewsClips: Five Firms Win Gas, Oil Leases In PA State Forests

5 Companies Share High Bids For PA Gas Drilling

9/12/2008