Mayor: Revenue would assist recovery plan

A councilman says officials have plans for the lake property.
By JOHN W. GOODWIN, JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- Five gas wells could soon be placed on city property, but some members of council want to research the matter a little further.
Mayor James Melfi said the wells would be drilled and meters placed at the sewage treatment on the northern end of town, in Liberty Park, at Tod Park and two at the Girard lakes.
He said revenue from the potential wells will be beneficial to the city, which is fighting its way out of fiscal emergency.
"This is a part of my recovery plan," Melfi said. "It is estimated to bring in about $100,000 each year for the first four years."
On hold for now
The issue went before council for a third reading last week, but Councilman-at large Joe Shelby argued 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.
Melfi planned to incorporate the first $100,000 earned from the wells into the city's general fund by the end of the year, but said that is not likely with council's hold on the issue. He said the city has made great strides in reducing its debt this year, but will still need the money in the future.
"Obviously, I am disappointed that council decided to hold this up," he said. "I believe they want to do this. I don't know what the delay is."
Placement concerns
Councilman Larry Williams said council is simply looking for more information on where the potential wells will be placed. He said city officials have plans for the lake property, and do not want wells in the way of future plans.
"The administration has not shown us where they are going to put these wells," he said. "Our concern is at the lakes. We want to make sure it is not intrusive to the public."
Should council decide to allow the wells to be placed on city property, Melfi said a deal would be reached with D & amp;L Energy Group of Youngstown to drill the wells. He said the company offered the best deal of several proposals submitted to the city.
Company offer
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 free annually. Any unused free gas, the letter says, will be purchased from the city by D & amp;L Energy.
Melfi said the 400,000 cubic feet of gas was largely the reason he wanted to approve the agreement as soon as possible. He said the first well would be placed at the sewage treatment plant where large amounts of gas will be used during the coming winter months. Melfi said he is hopeful that council will make a decision in the very near future.
"This was a third reading and just moments away from signing an agreement with these people. I would hope council would sign it in the next 30 days so we can get started," he said.
jgoodwin@vindy.com