Gas Leases

Tom Stark wrestled with a half-million dollar question on Thursday.

The Washington Township resident questioned whether he should sign with the Wyoming County Landowners Group or hold out for a better offer as he sat at a table at the Shadowbrook Inn & Resort.

As Stark weighed his options, he noted that a lease through the landowners group would net him a signing bonus of $517,505 - money Stark said could be used to pay down debt and make life easier.

“That’s an astronomical amount of money,” Stark, 52, added.

Half-million dollar payouts were not uncommon on Thursday as landowners signed leases with Citrus Energy.

Some people walked away with nearly $1 million, Chip Lines-Burgess, of Homeland Energy Ventures, said.

As part of the agreement, landowners received a $2,761.50 per acre signing bonus and 16.85 percent royalty.

Chris Robinson, of Pittsburgh-based Raegayle, has negotiated on behalf of the group. He receives 15-hundredths of one percent of the royalty and $88.50 per acre.

“Robinson is going to be our watchdog,” Lines-Burgess, of Meshoppen, said. “We have good leases.”

She added Robinson will make sure Citrus Energy adheres to the lease agreements

By 2 p.m. on Thursday, about 70 people had already attended the session, which was for residents from Mehoopany, Meshoppen and Washington townships, as well as Meshoppen Borough.

Often, people spent several hours at Shadowbrook to have a lease finalized.

More sessions will be scheduled, Lines-Burgess, of Meshoppen, said.

She noted the group has about 1,200 members and represents more than 67,000 acres.

“We started out with 40 people,” Lines-Burgess said. “We never expected to grow so much.”

Washington Township resident Jim Jenkins joined the landowners group after long discussions with is father, Gerald.

“This wasn’t a decision made in five minutes,” Jenkins, who owns 6.5 acres, said. “The Wyoming County group has the best lease I’ve seen so far.”

Noting he trusts Robinson, Jenkins said the lease has protection for landowners, including a clause for reclamation.

Marie McMicken was happy on Thursday after she signed a lease for her 8.4-acre property in Meshoppen.

She said the group has been helpful and has kept her informed about the process.

“I’m excited to have a little extra money,” McMicken added. “I’m going to save it and do some repairs on my property.”