Midland City Council Approves Drilling at Airpark

Nov. 18—The Midland City Council approved drilling that will take place at Midland Airpark and is expected to bring in revenue for the city's Airport Fund and General Fund.

Specifically, the council unanimously approved an oil and gas lease and surface use agreement with Midland-Petro D.C. Partners. The operator will be Permian Deep Rock.

In the Council agenda packet, it stated that Midland Petro D.C. Partners proposed a bonus of $12,500 per net mineral. That will mean $9.293 million for the city's Airport Fund and General Fund.

Other highlights include: — $750,000 payment to reconstruct Veterans Airpark, — use of quiet frac fleet system; closed loop mud system, — 24-foot sound walls on all sides, — temporary access to well sites off Big Spring, — payment of $1 million in relocation of the Citizens Collection Center within five years.

During public meetings held this summer, Permian Deep Rock officials stated other royalties and fees could mean that the amount the city could expect over 20 years could grow to $182.635 million. That figure depends on the price of oil and productivity of the wells but is very realistic, they said.

Councilman Scott Dufford said this week that 75 percent of the revenue from royalties and fees is likely to go to the Airport Fund and 25 percent to the General Fund.

Of the money that will go to the General Fund, he expects "most of those funds will be dedicated to the parks system" like city agreements with Parsley and Pioneer.

"We are not going to rely on oil and gas to balance the budget," Dufford said. "It will be used for capital items and go for parks."

As far as the money that is earmarked for the Airport Fund, Dufford said he expects much of it will fund expansion and development of Midland International Airport and the build-out of the airport's east side.

Councilwoman Lori Blong said after Tuesday's meeting that the Airpark location is the "most ideal location ... to have drilling and to develop the minerals in the middle of town." She added that the city and some residences will benefit from the minerals. She also said there are at least 100 jobs connected to the project.

The following are other notes about the project at Midland Airpark, including information taken from previous comments made by Permian Deep Rock officials Wayne Bailey, vice president of Land and Legal and General Manager Keith Bucy. The project will include: — its own turning lane for its trucks that are coming from the north off Big Spring Street, — its own road on the property for trucks to drive to well sites, — an exit from its acreage just to the west of the recycling center, where traffic will move onto Smith Road; — dust abatement, including roads with "all-weather material" to prohibit dust; — noise abatement, including 24-foot tall sound walls and a majority of operations that will use electric motors; — no drilling mud kept on the 14-plus acres; — no flaring taking place on site; — pipelines will be buried and Permian Deep Rock will use lines to move gas north of the site and oil, water and wastewater destined to frac ponds and injection wells, respectively, in south Midland; — no housing of employees and no seismic work.

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