Shale Drilling at Pgh International Airport
Shale Drilling Date Becomes a Reality at Pittsburgh International Airport
Consol Energy has agreed to pay an estimated $500 million over the next 20 years for shale drilling rights on the 900 plus acres surrounding the airport located in Moon Township. This would include a bonus payment of $50 million and an estimated $450 million in anticipated royalties over the next 20 years. The FAA mandates that all gas proceeds be used towards improving the airport and its facilities.
The next step is that the agreement will go before the County Airport Authority for approval. Once approved, drilling may commence as early as mid to late 2014.
Although this means shale drilling would be taking place at property located at the Pittsburgh International Airport, plans may not pan out for property located at the Allegheny County Airport in West Mifflin, because of the mostly residential properties surrounding it.
Interestingly enough, Chevron is considering a 43 acre property in Moon Township for its new regional headquarters.
PAOG editors note that the airport lease has been a subject of debate for years now, and it’s our experience that some governmental and municipal authorities tend to move slowly with Shale development. We think that Chevron potentially expanding its headquarters in Moon is another sign that the Shale gas industry will continue to transform the Pittsburgh area into an even larger business center.
Related Articles:
http://moon.patch.com/articles/reports-chevron-looks-to-moon-for-new-headquarters
http://www.post-gazette.com/stories/local/marcellusshale/allegheny-county-consol-strike-500m-airport-gas-drilling-deal-673873/
