Wicomico Council approves 20‑year lease and sole‑source designation for renewable natural gas facility at Newland Park landfill

The Wicomico County Council on Nov. 4 approved a 20‑year lease of roughly 1 acre at the Newland Park landfill and a corresponding gas‑rights and development agreement with WB Wicomico LLC to allow the construction and operation of a renewable natural gas facility, and separately designated WAGA Energy Inc. as a sole‑source vendor for the project.

Council members approved Resolution 198‑2025 (the lease and gas rights agreement) and Resolution 199‑2025 (the sole‑source designation) after staff detailed technical forecasts, permitting considerations and financing. Resolution 198‑2025 passed 6–1 after a failed motion to table; Resolution 199‑2025, which required a supermajority, also passed 6–1.

County Deputy Director of Public Works Adam Corey told the council the private partner is committing $4 million toward the gas interconnect and $24.5 million to construct the RNG plant. Corey said the county will be responsible for upgrading its landfill gas collection well field — a capital cost he estimated at about $1.5 million to $2 million — and staff are seeking an approximately $3.2 million Maryland Energy Administration grant (referred to in the meeting as an LGEM promissory) to help cover that work.

“The due‑diligence period looked at all options … how to take that Rubik’s cube and make all those sides the appropriate color,” Corey said during a slide presentation explaining how the county and vendor tested gas production confidence and the contractual terms. He said the county began a formal due‑diligence period with WAGA in December 2024.

Consultants and staff described how methane production increases as landfill cells age and are capped, and showed forecasting in standard cubic feet per minute (SCFM) that, with planned well‑field upgrades, moves projected output from approximately 400 SCFM to more than 1,000 SCFM. The forecasts supported the vendor’s business case, staff said.

Council members pressed staff on gas quality and hydrogen sulfide (H2S). County consultants said Wicomico’s 2024 monitoring data show H2S at levels well below the vendor’s filter capacity; staff explained that substantially higher H2S would raise the vendor’s operating costs (filter change frequency) and could reduce royalties, but that the current data do not indicate such a reduction is likely.

The agreements approved include a 20‑year primary term with two five‑year renewal options, a nominal land rent of $10 per year for the lease and royalty payments specified in an exhibit to the gas rights agreement (exhibit ranges cited during the meeting from 6% to 50% of gross project revenues, adjusted annually by CPI). Staff said the contract allows WAGA to request royalty adjustments over the first 10 years if the gas‑interconnect cost (initially estimated at $4 million) is exceeded, meaning the county would not be required to deliver additional cash but could receive less royalty income early in the term.

County counsel and consultants also discussed permitting with the Maryland Department of Environment (MDE). Staff said MDE has been receptive in meetings because the project will increase capture of landfill gas and reduce fugitive emissions; permitting remains required and MDE typically issues approvals once formal permit applications are filed. The flare configuration and the cost of replacing an open (existing) flare with an enclosed flare were discussed as material regulatory and cost items.

A motion to table Resolution 198‑2025 failed on a 5–2 vote; the resolution then passed 6–1. A separate attempt to table Resolution 199‑2025 also failed 5–2; the sole‑source designation passed 6–1 (the supermajority requirement was met). Council members who voted against the measures said outstanding legal and financial questions remained, but the majority voted to proceed.

What the contracts say (key points discussed at the meeting): WAGA will build and operate the refining plant; WAGA is responsible for construction costs cited at the meeting; the county will lease the parcel and is responsible for well‑field upgrades necessary to meet the capture and emissions requirements described by MDE; royalty adjustment language is included if interconnect costs exceed the estimated $4 million. Staff said a Maryland Energy Administration funding package is being prepared to offset county capital needs.

The council’s approvals clear the way for the vendor to proceed with permitting and construction planning; staff said additional administrative tasks, interconnection agreements with Chesapeake/Eastern Shore Gas and final permitting remain before full commercial operation.

Votes at a glance: Resolution 198‑2025 (land lease and gas rights) — outcome: approved, vote 6–1. Resolution 199‑2025 (sole‑source designation) — outcome: approved, vote 6–1.

The council did not adopt additional budget appropriations at the Nov. 4 session; staff said the county’s well‑field upgrades are expected to be funded through a combination of the identified state funding program and internal budget processes.