Warren views drilling as source of revenue

Staff report

WARREN

City council has authorized the mayor and service director to enter into a contract to allow a shale-drilling company to mine the Utica shale from under its Old Avalon Golf Course on Warren-Sharon Road in Howland.

The 160 acres at the golf course would be combined with 150 to 350 other acres near the golf course for negotiating purposes, said Councilman Al Novak.

Novak said the city could realize a one-time signing bonus of $300,000 to $400,000.

The city also could get royalty amounts if the well there produces a significant amount of oil and gas.

Novak said he has asked the city’s law department to write up legislation for consideration as early as next week that would direct the shale revenues to infrastructure work such as road and sidewalk repairs and residential and commercial building demolitions.

Novak said other council members appear to favor using the money that way.

One reason is the likelihood the city will lose a large amount of its annual allotment of federal Community Development Block Grant money, Novak said.

In recent days, council members have been advised that Congress may eliminate as much as half or all of the city’s $1.2 million CDBG allotment.

Warren has used most of its CDBG money for road and sidewalk improvements and demolitions in recent years, Novak said.