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MOUNT PLEASANT TOWNSHIP

BOARD OF SUPERVISORS
31 McCarrell Road
Hickory, PA 15340
(724) 356-7974 ▫ (724) 356-7510 E-Mail: mpt@mpt-pa.com
Fax: (724) 356-7751 www.mpt-pa.com

April 8, 2011

Range Resources
380 Southpointe Blvd.
Suite 300
Canonsburg, PA 15317

We are writing to address the ongoing and rapidly escalating situation between Mt.
Pleasant Township and Range Resources. Our specific concerns stem from recent
comments made by Range employees indicating your company is strongly
considering ceasing operations in our Township and pursuing legal action.

Let us be crystal clear. Mt. Pleasant Township is not trying to stop Range Resources
or any other reputable and responsible company from doing business. We are not
trying to damage our local small businesses or keep leaseholders from collecting
royalty payments. In a letter to Range Resources dated March 2, 2011, we reinforced
our willingness to work with you to resolve any potential issues in a proactive way.
We have met with representatives from both Range Resources and Markwest on
numerous occasions and have in fact used the input from those meetings in crafting
our proposed conditional use ordinance.

Although we have made some progress, you believe it is not enough. We were
disappointed that our attempts to work together were met with a public relations
campaign by Range, resulting in an escalation of tensions and a flood of
misinformation. To be blunt, we simply cannot continue down this path of conflict.
These tactics are not only counterproductive; they are bitterly dividing the community
we love.

Acting upon a suggestion from State Representative Jesse White, the Mt. Pleasant
Township Board of Supervisors is making the following proposal to further
demonstrate to both Range Resources and the residents of Mt. Pleasant Township
our commitment to an honest and fact-based dialogue.

Mt. Pleasant Township is inviting Range Resources to once again sit down, this time
with the assistance of a neutral third-party mediator in an attempt to narrow, clarify
and understand the specific issues Range has with our proposed ordinance. By
utilizing a professional mediator who is educated in the law yet has no financial stake
in Mt. Pleasant Township or Marcellus Shale, we can cut through the propaganda
and politics and focus on the facts.
Representative White has contacted the Honorable Donald E. Ziegler, a retired
Federal Third Circuit and Allegheny County Court of Common Pleas judge
specializing in mediation and dispute resolution. Judge Ziegler, who has no known
ties to Mt. Pleasant Township or the natural gas industry, has indicated that he would
be willing to serve as a mediator in this matter. If Range agrees to participate, Mt.
Pleasant Township will delay any formal vote on our proposed conditional use
ordinance until after the meeting with the mediator, which we are confident could be
accomplished within sixty (60) days. Our public hearing scheduled for April 12, 2011
will take place as advertised to further educate residents and gather additional input.

At your April 6 meeting, you identified our proposed conditional use ordinance and
regulations regarding the housing of workers in trailers on drilling sites as the two
reasons why you may not be able to continue operations in Mt. Pleasant Township.
By having a neutral mediator examine each of these issues in conjunction with
current law, we can narrow the issues and honestly evaluate the facts as applied in
Mt. Pleasant Township. This comprehensive, unbiased review will guide us as we
move towards our goal of passing a comprehensive ordinance that will allow drilling
to occur in Mt. Pleasant Township while fulfilling our obligation to protect the
community and its residents.

Why is Mt. Pleasant Township taking this unprecedented step? Our proposed
solution is the quickest, most cost-effective possible avenue to explore the middle
ground we all seek. At the April 6 meeting, Range spokesman Jim Cannon said, “We
don’t want to challenge anybody here. All we want is middle ground and we can’t
seem to get there.” Mt. Pleasant Township asks that Range Resources split the cost
evenly, estimated at approximately $2,500.00 per party, to lessen the burden on the
taxpayers.

Range’s repeated threats of legal action if we pass our proposed ordinance are
troubling on multiple levels. Lawsuits are time-consuming and expensive, and as
elected officials we are charged with being effective stewards of taxpayer dollars.

We are also deeply concerned that if Range follows through with legal action, they
will create the exact problem they claim they are trying to avoid. Jim Cannon told the
crowd at the April 6 meeting, “The difference has to do with timing. We need to be
able to plan.” We couldn’t agree more. If we work together in the manner we have
proposed, we will hopefully be able to find common ground very quickly so we can
enact purposeful legislation, our local leaseholders can be reap any and all financial
benefits to which they are entitled, and eliminate any and all additional costs going
forward with this process.

If lawsuits are filed, it is reasonable to assume Range will halt operations until the
cases are over, which could take years during which leaseholders may not see
royalty payments. We know how important those royalty payments are to many of our
residents, and we want to do everything in our power to avoid unnecessary and
lengthy delays, but we will not sacrifice the safety of our citizens in the process.
Despite the heightened rhetoric, we do not consider Range Resources to be an
enemy of Mt. Pleasant Township. Your company has created jobs, boosted small
businesses and allowed many of our leaseholding residents to realize an amazing
financial benefit. You have made an effort to work with the township on road repairs
and have contributed financially to numerous organizations in our community. But not
every company is Range Resources, and we have a legal and moral obligation to
pass ordinances that provide basic safeguards against operators lacking sufficient
standards and procedures. We also have an obligation to ensure the safety and
welfare of our residents in a way that allows flexibility and a commitment to new
processes and technologies as they become available.

In trying to chart a course for Mt. Pleasant Township, we were encouraged by the
guiding principles listed on the website of the Marcellus Shale Coalition, of which
Range Resources is a member:

“We are committed to being responsible members of the communities in which we


work. We encourage spirited public dialogue and fact-based education about
responsible shale gas development; and we conduct our business in a manner that
will provide sustainable and broad-based economic and energy-security benefits for
all. We recognize that to succeed in business, we not only embrace these principles,
we live by them each and every day. This will be our legacy.”

You have an amazing opportunity to demonstrate your commitment to those


principles to the residents of Mt. Pleasant Township by once again agreeing to sit
down and clearly define your concerns, this time before a neutral third party. We owe
it to everyone to take a proactive stance and work through issues in a responsible
way. We can work together to unite the community and move forward with a
newfound respect and a clear understanding of how we can work together. Simply
put, we can be leaders. And let the legacy of Range Resources in Mt. Pleasant
Township be one where the collective best interests of the citizens is paramount.

We would appreciate a prompt response so we can move forward. If we do not hear


back by April 15, 2011, we will assume you are unwilling to participate and will
proceed accordingly.

Mount Pleasant Township


Board of Supervisors

William L. Dinsmore, Chairman ▫ Larry H. Grimm, Vice Chairman ▫ Arden B. McCartney, Supervisor