Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Council OKs contract with Mayhill Renewables to turn landfill gas into pipeline-quality fuel
Summary
The Denton City Council on Sept. 9 approved an ordinance authorizing the city manager to sign a 20-year contract and lease with Mayhill Renewables LLC to collect, upgrade and sell landfill gas from the Denton landfill as renewable natural gas.
The Denton City Council on Sept. 9 approved an ordinance authorizing the city manager to sign a contract and lease with Mayhill Renewables LLC (Morrow Energy) to design, build and operate a renewable natural gas (RNG) facility at the Denton landfill.
City Solid Waste Director Brenda Haney told council the landfill already has an active gas-collection system but that the captured gas has been flared. “We capture all of that gas and we push it to a flare and simply burn it off,” Haney said. She said the city is foregoing revenue and still incurs maintenance costs for the flare.
The agreement gives the private operator responsibility for the landfill’s gas collection system — currently about 139 active wells — and for cleaning, compressing and selling the upgraded gas into the pipeline market. Haney said the contract contains a percentage-based royalty schedule for the city tied to the operator’s gross monthly revenues: “We get, at the lowest level, we get 15% of their gross revenues ... So, that’s $75,000 a month at a minimum,” she said, and added that the percentage increases as operator revenues rise, up to 27% for revenues above $1 million per month.
Why it matters: The project aims both to generate recurring revenue for the Solid Waste Fund and to reduce the city’s greenhouse-gas footprint by turning otherwise-wasted landfill gas into a saleable, high BTU fuel. Staff told council the facility will likely take many months to build; Haney said the city should not expect substantial revenues in the immediate next fiscal year.
Council action and debate: Councilmember Jester moved to approve the ordinance; the mayor pro tem seconded. Supporters framed the agreement as a pragmatic reuse of an existing municipal resource and a way to reduce future operating costs related to maintaining the landfill flare. No councilmembers recorded opposition. The ordinance passed on a recorded vote of 6-0.
What happens next: The operator will complete design and construction, expand gas collection where appropriate, and begin commercial sales once pipeline-quality gas production is achieved. Staff said the city will account for any incoming royalties as restricted revenue in the Solid Waste Fund and use them for future capital projects in that fund.
Context and caveats: Haney said the city previously operated a gas-to-energy facility that was decommissioned in 2020 and that work on an earlier public–private project stalled after negotiations in 2023. The new agreement runs 20 years and contains staged royalty rates; staff said revenue timing depends on construction and the operator’s ramp-up of gas recovery and processing.
Votes at a glance
- Ordinance authorizing contract and lease with Mayhill Renewables LLC (Morrow Energy) to develop a renewable natural gas facility at the Denton landfill — Motion to approve by Councilmember Jester; second by Mayor Pro Tem; outcome: approved, vote 6-0.
Ending: Staff will return to council with contract documents for signature and will report revenue receipts and recommended uses for the Solid Waste Fund as the project proceeds.
