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Office of Communications Gwen Campbell Media, Community & Education Relations Tel. 318.673.5062 / Fax: 318.673.5087 gwen.campbell@shreveportla.gov | ||
Today, the Louisiana State Mineral Board voted to accept a bid from Cypress Energy Corporation to drill for natural gas on approximately 478 acres of land owned by the City of Shreveport. This bid contains a bonus payment of over $4.1 million dollars and a royalty of 25% of recovered materials. The bonus payment represents $8,700 per acre. The Louisiana State Mineral Board selected the bid from Cypress Energy over a bid received from another company with lower bonus payments. | In the event that Cypress Energy decides not to drill during the three-year lease with the City of Shreveport, then Cypress Energy would pay the City $2 million dollars per full year until drilling commences. | “At a time when we are looking at a very lean and conservative 2010 Operating Budget, this is indeed great news,” says Mayor Glover. “This is money that we most certainly want to use wisely. My intention is to put the money in operating reserves until we decide what to do with it. However, I am of the firm belief that a substantial part of these funds should be used to boost the City’s operating reserves. My priorities are: Reserve | City Employees and Public Safety. | “I am also pleased about the bid of $8,700 per acre,” says Glover. “This, without a doubt, raises the bar and puts our neighborhood associations in a position to vigorously pursue and negotiate more favorable leasing agreements.” | “This is exciting news for the City and its residents that the market has changed for the positive,” says Jack McLeod, President of the Shreve Centre Coalition, a coalition of neighborhood associations and citizens. “The bid looks to be a satisfactory and reasonable offer and will benefit the City greatly.” | A check in the amount of $4,161,201.30 should be received before the end of October 2009. Any appropriation of such funds is subject to approval by the City Council. |
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