Council allows 4 gas wells to be drilled on city's land

The mayor included these wells in his plan for recovery from fiscal emergency.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- City leaders have agreed on a package for gas well drilling that could add about $400,000 to the city's coffers over the next four years.
Members of council voted Monday to allow four gas wells to be drilled on city property. The wells will be installed one each at the upper Girard Lakes, the city's water treatment plant on the northern end of town, Liberty Memorial Park and Tod Park.
The issue initially went before council in late October, but some members argued at that time that council did not have enough information to move forward. Council decided to put the issue on hold with only councilmen Jeremy Williams and Joe Christopher voting to start work on the wells immediately.
Councilman Joe Shelby said representatives of D & amp;L Energy, the company that will be drilling the wells, and members of council have discussed the issue -- leading to a much clearer picture for city leaders.
Boost for general fund
Mayor James Melfi said the wells will be a much-needed boost to the cash-strapped city, generating about $20,000 per well annually for the city over the first four years. He said production at the wells will eventually taper off, decreasing the revenue.
Melfi said funds from the wells will help the city emerge from fiscal emergency. The city has been under fiscal emergency since 2001.
"I felt this would be a tremendous benefit to the city and included it in my recovery plan," Melfi said.
All dollars generated by the wells will be added to the general fund.
According to a letter sent to the city from D & amp;L Energy, the company has offered the city $1,000 within 15 days of lease execution, a proportional share of the 12.5 percent landowner royalty, a $5,000 bonus per well and zero liability from all claims that may arise from the wells.
The company also offered the city 400,000 cubic feet of gas per well for free annually. Any unused free gas, the letter says, will be purchased from the city by D & amp;L Energy.
Melfi said he is not sure if city leaders will approve additional gas well drilling in the future but said he is not opposed to the idea if that drilling is sensitive to residents and the environment.
"We should utilize the property we own to bring in as much revenue as possible; there is no doubt about that."
Drilling could begin sometime in the spring.
jgoodwin@vindy.com