LITTLE ROCK - With the stroke of a pen, the Arkansas Game and Fish Commission on Monday unanimously agreed to gas leases on two of its wildlife management areas. The leases will generate about $29.5 million for the agency. The lease agreements were signed during a special meeting of the AGFC at its headquarters in Little Rock.

Petit Jean River and Gulf Mountain wildlife management areas will be the site of the drilling operations by Chesapeake Energy of Oklahoma City. Chesapeake was the winning bidder out of four bids for the right to drill in the WMAs. The agreement also calls for a 20 percent royalty over the next five years.

The five year leases cover just over 11,500 acres. Petit Jean WMA is located near Ola in Yell County and Gulf Mountain is in Van Buren County near the community of Scotland. Money from the lease agreements will be used help fund many projects in the state including conservation programs, renovation of facilities as well as funding new and existing projects.

Gov. Mike Beebe, who spoke during the meeting, called the signing something special for all Arkansans. “A lot of people will benefit from this and I want to personally thank you,” he said. Beebe also praised the AGFC for its efforts to team up with other state agencies. “Your desire to partner with ADEQ and the Oil and Gas Commission for compliance, preservation and inspection will make sure these lands will be available for generations to come,” Beebe said.

AGFC Chairman Freddie Black said that the lease signing was a monumental day for the agency. “We don’t take this lightly. We know there will be impacts to people who hunt and fish in these areas, but we think it will be minimal,” Black said. “There will be no exploration during hunting season,” he added.

Danny Games, director of corporate development for Chesapeake in Arkansas, said his company recognizes the tremendous financial gain to the AGFC and the state of Arkansas. “We’re also sensitive to the concerns of its citizens. We are an experienced driller with twice as many rigs as the number two driller, all on American soil. Chesapeake uses the most advanced drilling and completion technologies and operates within the strictest safety guidelines to protect the health and safety of the public and the environment. We believe that this partnership will extend far beyond the initial leasing bonus and provide long-term benefit to the Arkansas Game and Fish Commission and the citizens of our state," Games said.