Pa., W. Va. landowners sign $100 million gas lease with Tug Hill

Sam Kusic

Staff Reporter- Pittsburgh Business Times

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A regional landowners' group has hit pay dirt: It has negotiated a joint oil and gas lease worth more than $100 million.

"This agreement represents the culmination of many months of hard work on our team's part to deliver the best agreement possible for our members," said Jonathan Turak, one of the lawyers who negotiated the deal on behalf of the landowners, in a statement.

"The end result is unprecedented, with an agreement that provides more compensation, better protection, and a lease that favors all of our mineral owners. Neighbors helping neighbors is what this land group is all about, and we proved that there really is strength in numbers," said Turak.

The group represents landowners in Marshall and Ohio counties in West Virginia's northern panhandle as well as in Greene County, Pa.

Turak declined to say how many acres are under the lease, but disclosed that the landowners' group is made up of 500 families.

It is believed to be largest oil and gas lease ever signed in the northern panhandle of West Virginia, Turak said.

The payout doesn't include royalties. With those, the value of the deal could reach $400 million to $500 million over its lifetime, he said.

The lease is with Tug Hill Operating, an affiliate of Fort Worth-based investment firm Tug Hill. Tug Hill Operating, through another company, has a working interest in more than 350 Marcellus Shale wells, according to its website.

A company spokeswoman didn't immediately return a phone call seeking comment.

The lease was negotiated by four firms: Gold, Khourey & Turak, of Moundsville, W.Va.; Berry, Kessler, Crutchfield, Taylor & Gordon, of Moundsville; Rokisky & Associates, of Weirton, W.Va., and Guida Law Office, of Weirton.

Turak said there is a limited opportunity for landowners who haven't leased their property in the three counties to join the group.

Sam Kusic covers energy for the Pittsburgh Business Times.