Hurst to consider leasing property for gas drilling

Hurst to consider leasing property for gas drilling

The city hopes to add at least $1 million in revenue by leasing its property for gas drilling.

Officials are expected to send out a request for bids today for horizontal drilling on the city’s 350 acres and the two parcels of land it owns in Fort Worth. Bidding is expected to take about a month, and the City Council could approve the winning bids as early as November, Assistant City Manager Jeff Jones said.

The city has not decided where the money would go, but the staff will likely recommend using it to redevelop older neighborhoods.”It will be a good revenue generator for the short term,” Mayor Richard Ward said, ”but I don’t think it’s going to be year after year.”

An energy company approached the city several years ago about exploring natural-gas drilling ”” back when companies were paying $75 per acre upfront in bonus money and 18 percent production royalties.

Now, property owners can receive $3,000 or more per acre and up to 28 percent in royalties, Jones said.

Share this post