Cole Memorial cashing in on natural gas boom
Cole Memorial Hospital is the latest Potter County property owner to tap into the busy marketplace for gas, oil and mineral rights.
Cole has reportedly worked out a deal to lease substantial acreage off Rt. 6 east of Coudersport for shale-gas drilling. It’s in the vicinity of the former Leete farm, which was acquired by the hospital several years ago.
An initial payment in excess of $1 million from JKLM Energy LLC is in the works. If any wells are drilled, Cole would collect royalties on gas that’s produced.
Efforts to reach Cole executives for details were unsuccessful.
Other property owners in eastern Coudersport Borough and neighboring Eulalia Township, including Northeast Timberlands with hundreds of acres, have been approached for lease agreements with JKLM, which has ties to business mogul Terry Pegula, owner of the Buffalo Bills and Buffalo Sabres sports franchises.
JKLM is just one of multiple companies jockeying for drilling rights into Marcellus and/or Utica shale layers to harvest natural gas.
Acquisition of subsurface rights is just one step in a lengthy process that may or may not lead to gas production.