Ellwood City, Pennsylvania is on the latest lists of cities to lease property for Marcellus Shale drilling. The city has approved a lease with Shell Western for underground horizontal drilling for 131.64 acres of borough owned property running along Connoquenessing Creek. Lease terms state that Ellwood City will receive $3,250 per acre.
Shell announced earlier this month that they were planning to build an ethane cracker plant in Beaver County.
Most of the area being leased is north of the Ellwood City Hospital and in Wayne Township near the Ellwood City Wastewater Treatment Plant. The lease contains a provision that prohibits any surface activity directly on borough owned property.
Marcellus drilling also places large demands on local water systems – which is why Borough Manager, Dom Viccari, approached Shell with an offer to buy treated water from the Ellwood City Waste Water Treatment Plant. Approximately 960,000 gallons of water will be drawn up from Slippery Rock Creek to provide the water supply needed in the hydraulic fracking process.
$300,000 of the money generated from the lease in Ellwood City will be earmarked to recreational development.