Wells would bring in 250,000 for MVSD

A Texas company owns gas and oil rights under the MVSD property.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
MINERAL RIDGE -- The Mahoning Valley Sanitary District would receive an estimated 250,000 in natural gas and oil royalties the first year if wells are sunk on its property.
The MVSD board of directors received the information about the financial benefits Wednesday from Michael Nicol, managing member of NCL Natural Resources of Houston, Texas.
NCL is in partnership with Ohio Valley Energy Corp. of Austintown in a proposal to sink the wells around Meander Reservoir.
The MVSD draws water from the reservoir, treats it and sells it in bulk to Youngstown, Niles and McDonald for sale to their customers.
NCL owns the gas and oil rights under MVSD property.
Concerns
The board has been considering allowing the drilling but is concerned about possible environmental contamination. It is being viewed as a money-making project.
"Anything can happen," Nicol responded when asked about negative environmental impact from the drilling or maintenance of wells.
However, Nicol added that his company has about 50 million in insurance coverage.
NCL operates 1,400 wells in Ohio, Pennsylvania and West Virginia. About 500 of the wells are located just west of the reservoir, he added.
He said his company is prepared to act in case of an environmental problem.
All of the wells will be drilled on land and not over the water, Nicol explained, noting the typical life of a well is about 50 years.
Earlier this month, a representative of the Ohio Department of Natural Resources told the board that the risk of contamination is "pretty darn low."
Rick Simmers, acting assistant chief of ODNR's Division of Mineral Resources Management, said contamination can occur, but only on "rare occasions."
yovich@vindy.com