ROGERS - The Beaver Local School District will receive more than a quarter of a million dollars in July through an oil and gas lease approved by the board Monday.
The board agreed to lease all of the district's 132 acres to the Associated Landowners of the Ohio Valley (ALOV) and Chesapeake Exploration, LLC, of Oklahoma.
According to the lease agreement, the district will be provided with a bonus payment of $2,250 for each acre leased, for a total of $297,000, to be paid in July.
District Treasurer Robert Barrett said Wednesday he is unsure at this time how many wells will be dug on the leased property.
According to the agreement, the district will receive a $30,000 "sitting/spud fee" in consideration for damages to the leased property prior to the commencement of drilling any well.
Board of Education President Tom Wolfe is optimistic about the agreement. He pointed out all wells will be drilled a good distance away from school buildings to ensure student safety.
He also said states in the west have benefited significantly through similar leases.
"It has actually brought a lot of towns back to life because of what they have found (through drilling) and the royalties paid from it. The percentage that they are paying the schools could actually turn into something for the school systems. It might be an opportunity for funding throughout the years," he said.
The Southern Local School District also entered into an oil and gas lease agreement this week.
Beaver Local first considered the lease agreement in December of 2010, when the board agreed to allow DiBacco and Barrett sign a letter of intent to join the association.
The ALOV is a Salem-based association comprised of more than 200 landowners in Columbiana County that seeks to ensure fair deals and protection of mineral rights for property owners.
DiBacco said the district is happy to get involved with the association.
"It is certainly beneficial from a financial standpoint," she said.
The district will receive a royalty of 17.5 percent if oil and gas are found on the leased property.
"I'm just speculating, but if they find anything on any of these properties, it could change rags to riches for some places," Wolfe said.
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