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Council approves issuance of three RFPs to test leasing city-owned subsurface mineral rights
Summary
The council approved recommendations from outside counsel to issue three requests for proposals covering city-owned subsurface minerals under several parks and rights-of-way, with a minimum bid set at $10,000 per acre; staff said bids are not guaranteed.
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The Odessa City Council authorized staff to issue three requests for proposals seeking leases of subsurface minerals the city may own beneath portions of public property and parks. Steve, identified in the agenda as outside counsel, told the council the firm had identified three tracts for possible city-owned fee mineral interests: about 33 acres under the draw in Comanche Trail Park North, roughly 5'10 acres under Salinas Park, and another 5'10 acres near Grant and Hollingsworth Head Start Center on the west side. "The most cost effective way for us to find out is to see if anybody wants to lease them," Steve said. The draft RFPs set a minimum bid of $10,000 per acre, Steve said. He told the council the likely respondents would be the usual oil-and-gas operators and that staff could not guarantee any bids. After discussion, the council moved to accept the recommendation; the motion passed unanimously. Staff said the RFPs are a preliminary step: if bids arrive, the city would review proposals and decide whether to execute leases. The council did not approve any lease terms or enter into contracts at the meeting; it authorized the RFP issuance and directed staff to proceed with the procurement timeline and proposal conference dates discussed by purchasing staff. Council members asked no substantive follow-up questions; the vote was unanimous.

