|
|
| NEWS HOME | HOME | CITIZENS | VISITORS | BUSINESS | DEPARTMENTS |
 |
Office of Communications Gwen Campbell Media, Community & Education Relations Tel. 318.673.5062 / Fax: 318.673.5087 gwen.campbell@shreveportla.gov | ||
The complete totals are in and the numbers are even “bigger and better” as the City of Shreveport is now set to receive a total of $6,374,089.80 in mineral lease bonus payments. | On Wednesday, October 14, 2009 the Louisiana State Mineral Board voted to accept bids from Cypress Energy Corporation to drill for natural gas on three tracks of land for a total of 740 acres submitted by the City of Shreveport. The State Mineral Board selected the bid from Cypress Energy over a bid received from another company with lower payments. | Here’s the breakdown: |
§ Track #41153 - 478 acres for a bonus payment of $4,161,201.30 with a
| $2 million dollar annual payment to the City for 3 years if no drilling takes
| place.
| § Track #41154 - 254 acres for a bonus payment of $2,212,888.50 with a
| $1,106,444.25 annual payment to the City for 3 years if no drilling takes place.
| § Track # 41155 - No bid for 8 acres
| The bids contain a royalty of 25% for any minerals extracted. The bonus payments represent $8,700 per acre which is twice the $4,000 per acre lease bonus payment set by the City Council.
| “Yesterday’s news was great but this is even better,” says Mayor Glover. “It goes without saying that this is money that we most certainly will use wisely. Again, I am of the firm belief that a substantial part of it should be used to boost reserves. My priorities are reserve, employees and public safety.”
| The City should receive a check in the amount of $6,374,089.80 before the end of October 2009. Any appropriation of such funds is subject to approval by the City Council.
| According to the State Mineral Board, October’s mineral lease sale brought about $12.1 million dollars in bonuses and ranks the sale as the fifth highest in the past five years.
|
|