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Odessa council approves RFPs to lease city mineral tracts, including small parcels beneath residential areas
Summary
The City Council approved issuing four requests for proposals to lease mineral rights under several small tracts — including parcels beneath residential neighborhoods — after outside counsel described lateral drilling from pads south of I‑20; a single councilmember opposed the motion.
The Odessa City Council voted 1 to oppose and approved issuing four requests for proposals (RFPs) to lease city-owned mineral tracts, including small parcels located beneath residential areas, council meeting minutes and remarks show.
Outside counsel Steve Posick, partner at Brockett, McNeil & Posick LLP, told the council the set of RFPs (RFP 25‑51310‑05 through ‑08) grew out of an inquiry from Diamondback Energy about a 0.13‑acre parcel near Tenth and Idlewood. He said the city grouped that parcel with three other small tracts — near Eighth and Washington, Twelfth and Muskingum and Thirteenth and Washington — "for the sake of efficiency" and to put them "out into the marketplace." Posick said the parcels are small and that operators may or may not choose to drill if they lease the mineral rights.
Council members raised questions about the locations and potential impacts. Councilman Vasquez said he did not understand leasing mineral rights in residential areas. Posick replied these projects would be directionally drilled from pad sites south of Interstate 20: "These pad sites would be South Of I‑twenty, and they're gonna go up underneath the city, if they get drilled at all," he said.
Council member Connell pressed for background about prior work in the city, noting a prior contract with Dawson Geophysical to place seismic sensors across town. Posick said Dawson's work and other seismic testing informed interest in drilling and that larger oil and gas companies were identifying productive rock closer to downtown.
Council members also asked about environmental safeguards. Posick cited the permitting and regulatory process overseen by state and federal authorities, saying companies must satisfy the municipality, the Texas Commission on Environmental Quality and the U.S. Environmental Protection Agency that operations will not affect the water supply.
Motion language on the record instructed city staff to issue the four RFPs described by Posick. The motion was moved by Councilman Thompson and seconded by Councilman Haney; the mayor asked for all in favor, then announced one opposed and moved the agenda forward. The dissenting vote was not named in the public record.
Why it matters: The approved RFPs put the city’s mineral rights under small, partly residential parcels up for competitive bids. If leased and ultimately drilled, companies say they would use directional drilling from pads located outside the neighborhoods; council members nonetheless voiced concern about drilling beneath residential areas and asked about regulatory review and water‑safety protections.
What’s next: The RFPs will be issued to the market. Council did not set drilling approvals or permits at this meeting; any future drilling projects would be subject to separate permit processes and regulatory review.
