Council approves oil and gas lease | Community | duncanbanner.com

2022-09-02 22:28:53 By :

Some clouds this evening will give way to mainly clear skies overnight. A stray shower or thunderstorm is possible. Low around 70F. Winds S at 5 to 10 mph..

Some clouds this evening will give way to mainly clear skies overnight. A stray shower or thunderstorm is possible. Low around 70F. Winds S at 5 to 10 mph.

Logo for the City of Duncan

Logo for the City of Duncan

Duncan City Council met for a routine meeting last week that saw them approve an oil and gas lease agreement with Continental as well as purchase some equipment for the fire department.

With council member Jimmy Peters absent, the council dove head first into business, with the largest item regarding the oil and gas lease agreement coming halfway through the agenda. 

The lease, with Continental Resources, includes about 190 mineral acres to use for “exploring and producing oil and gas.” 

City Manager Kim Meek said the agreement includes a three year lease with a two year option to extend.

Meek recommended to council to accept the payment of $1,500 per acre and to retain a one-fifth royalty interest which would “allow the city to earn more money in the future in the event a week is produced.”

“The property is in the vicinity of the Duncan Gun Club and the Duncan Police Officers shooting range,” Meek said. “Continental has agreed to modify the lease or sign an addendum stating that the drilling and exploration activities will not interfere with the activities related to the range and the gun club.”

The motion, with no questions, passed unanimously.

In other council news, the board approved:

• City Manager Meek to represent Duncan on the SCOEA Board.

• Purchasing a 2022 4x4 Ford F-250 Crew Cab from Reynolds Ford for the Fire Department for $58,590.

• Purchasing an engine pumper from the BuyBoard National Purchasing Cooperative for the Fire Department from Sutphen Corporation for $672,054.37.

• Purchasing a John Deere 310l Backhoe Loader from C.L. Boyd Co for the Water Department for $109,700.

The Stephens County Commissioners are considering implementing a use tax for online and out-of-state goods. How do you feel about this?

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