Commissioners discuss oil and gas leases

In a regular meeting, the Mitchell County Commissioners met Monday with one main objective. Sure, minutes had to be approved, monthly reports had to be approved and the bills, totaling $116,454.62, had to be paid. But the question on everyone’s mind was whether the county would seek bids for oil and gas leases on county property, most specifically, a 240-acre plot near Loraine with a rock quarry on it.

County Attorney Ty Wood talked for half an hour, giving the commissioners every possible scenario to help them in their decision.
“Right now, the leases are going for up to $600 per acre,” Wood said. “Some of the land owners have received as high as 25 percent royalties in their contract as well.”

Wood went on to explain to the commissioners the going price per acre was increasing by $50-$100 every two weeks, raising questions about whether it might be best to wait a month, maybe even two, before asking for bids.

However, with the county’s requirement to advertise three consecutive weeks before they can open bids, the court decided to go ahead and advertise for the bids, given the uncertainty of the growing oil and gas presence in Mitchell and surrounding counties.

The county is already receiving money from the property for the wind mills which sit on the land. In 2011, the county received just over $13,000, a significant raise from 2010 and 2009, where the county saw right at $19,000 per year.

County Judge Ray Mayo commented on the income from the windmills saying, “Every little bit helps.”