An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, authorizing the lease of minerals underlying real property on which the Allegheny County Airport is situated to the Allegheny County Airport Authority and permitting drilling and other necessary operations to extract oil, gas, natural gas liquids and other minerals underlying the Allegheny County Airport.
WHEREAS, the County of Allegheny, hereinafter “the County,” is the owner of real property on which is situated the Allegheny County Airport, hereinafter “the AGC Airport Property;” and
WHEREAS, the County is also the owner of mineral, oil, gas, shale and other valuable subsurface rights at the AGC Airport Property, hereinafter collectively referred to as “the AGC Airport Mineral Rights;” and
WHEREAS, the AGC Airport Mineral Rights at the AGC Airport Property have become an increasingly valuable asset as a result of recent technological advances which have made a commercially viable enterprise out of the exploration, drilling and extraction of natural gas from shale; and
WHEREAS, on February 19, 2013, Allegheny County Council authorized the creation of a lease between Allegheny County and the Allegheny County Airport Authority (“the Authority”), pursuant to the terms of which the Authority ultimately entered a lease of mineral rights underlying Pittsburgh International Airport to CNX Gas Company, LLC (“CNX”);
WHEREAS, pursuant to §1.03 of the lease between the Authority and CNX, a pro rata share of the bonus payments received by the Authority from CNX must be repaid in the event that leasing of the AGC Airport Mineral Rights is not authorized within two years of the effective date of the Pittsburgh International Airport lease; and
WHEREAS, this two year interval will expire on February 21, 2015 and, should the leasing of AGC Airport Mineral Rights not be authorized by that date, the Authority will be required to repay approximately $2.2 million to CNX under the terms of the existin...
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