Sweetwater council approves financial report, seeks downtown CDBG, OKs wind easement amendment and oil-and-gas lease

Sweetwater City Council on March 11 approved the city’s comprehensive annual financial report for the fiscal year ending Sept. 30, 2024; authorized submission of a Texas Community Development Block Grant application for downtown revitalization; approved a second amendment to an option and easement agreement with Sweetwater Wind 3 LLC to update transmission lines; and approved an oil-and-gas lease for 159 net mineral acres with Stockyard Energy Land Services LLC.

The auditor, Catherine Wilkes, told the council the independent auditor’s report gave a clean opinion. “In my opinion, the financial statements referred to above present fairly in all material respects the financial position,” Wilkes said, summarizing the report. She also said the audit disclosed no instances of noncompliance required to be reported under government auditing standards and that the finance department received a certificate of achievement from the Government Finance Officers Association for excellence in financial reporting.

The council voted by voice to adopt the audit report and to carry several other measures. Council members also voted to adopt an ordinance declaring unopposed candidates elected and to cancel certain elections, and to authorize staff to file a grant application with the Texas Department of Agriculture’s Texas Community Development Block Grant (CDBG) Program for the Downtown Revitalization Program.

On a commercial easement matter, city staff presented a proposed second amendment to an existing option and easement agreement with Sweetwater Wind 3 LLC. Samantha (staff member) said the amendment would extend an existing easement and allow Leeward Energy or related companies to update transmission lines and wind-turbine components. “What this agreement will do is extend the existing lease agreement… to allow for the energy company to come in and essentially update the current transmission lines and wind turbines,” Samantha said. She described key commercial terms as a signing bonus, compensation per rod, and a term that could run up to 30 years; she also said the city’s land does not host turbines and the work concerns transmission infrastructure.

The council approved the easement amendment by voice vote.

The council also approved an oil-and-gas lease with Stockyard Energy Land Services LLC covering 159 net mineral acres described in the meeting as Section 47, Block 21, T&P Railroad Company Survey A-375 in Nolan County. City staff and a company representative, David Archer, described the lease as exploratory: a three-year term with a possible two‑year extension, horizontal drilling from another surface site and compensation to the city via an upfront payment and royalty if minerals are produced. “The surface of this property owned by Sweetwater would not be impacted by this lease,” Samantha said. The council approved the lease by voice vote.

Votes at a glance

- Approval of minutes for the Feb. 11, 2025 meeting — motion approved (voice vote; motion carries). - Approval of the comprehensive annual financial report for fiscal year ending Sept. 30, 2024 — motion approved (voice vote; motion carries). Auditor: Catherine Wilkes. - Ordinance declaring unopposed candidates elected and canceling certain elections — ordinance adopted (voice vote; motion carries). Presented by Becky (staff member). - Resolution authorizing submission of a Texas CDBG application for the Downtown Revitalization Program — resolution adopted (voice vote; motion carries). Grant administrator: Morgan Barrett, Public Management. - Second amendment to option and easement agreement with Sweetwater Wind 3 LLC (road and transmission line easement; memorandum of option and easement) — approved (voice vote; motion carries). Staff presenter: Samantha; developer representative present. - Oil and gas lease with Stockyard Energy Land Services LLC for 159 net mineral acres (Section 47, Block 21, T&P RR Survey A-375, Nolan County) — approved (voice vote; motion carries). Company representative: David Archer.

Council members made no changes to the presented terms at the meeting. Where votes were recorded, the meeting transcript reports voice votes with council members saying “Aye” and the mayor or presiding officer stating “Motion carries.”