Wichita Falls council approves 20-year landfill gas deal to turn methane into pipeline gas

Wichita Falls — The City Council voted Dec. 2 to authorize the city manager to execute a landfill gas agreement with Lucy Park Renewables, LLC, approving a public–private partnership designed to capture methane from the municipal landfill and convert it into pipeline-quality renewable natural gas.

City staff described the project as a compliance and revenue measure: the partner will design, install and operate gas collection, control and treatment infrastructure on a roughly 2.5-acre leased site at the landfill; the city will own that infrastructure at the end of the contract. "It's taken that long, but I don't see this as the end. This is just the beginning," Tyson, the project lead, said during the council presentation, summarizing staff's rationale for the agreement.

Tyson told the council the agreement runs for 20 years with two 5‑year extensions. Under the contract the city will receive an upfront payment when the partner begins selling gas and a continuing royalty: "we're gonna have a a 1.08 up 1000000 dollar upfront payment," Tyson stated in the presentation, followed by a 27% royalty on gross revenue from renewable natural gas and environmental attributes or a guaranteed minimum of $30,000 per month, whichever is greater.

Staff emphasized the city would avoid a near-term capital cost for required gas-collection infrastructure. Tyson said an in‑house system would cost an estimated $9 million and noted the contract includes a performance guarantee that would obligate the partner, at a minimum, to fund $4 million for the city to install the system if the partner does not perform.

Representatives of Spark and its technical team addressed design and operations. Norman Herrera of Spark described the project scope and potential community benefits, saying the partnership can provide a compliance pathway and create an ongoing revenue stream. "We're committed to over communicating with you, having you follow the progress as we go," Herrera said. Ryan Koontz of SCS Engineers and John Bolte of Small Aero Engineering described planned well‑field design, permitting and plant construction.

Council members asked about the schedule, guarantees and local jobs. Staff said construction would likely create roughly 25–50 short‑term jobs (drill and pipe crews plus plant construction) and two to four permanent operations positions. Tyson said initial revenues are projected conservatively but that the city would earmark funds for landfill capital expenses — for example, developing a future landfill cell.

During public comment, citizens asked whether the city would have had to install controls anyway; Tyson confirmed a regulatory trigger would require action within a few years without the agreement. Wichita Falls Streams and Valleys chair David Coleman offered public support and welcomed the project’s corporate citizenship provision, which provides $50,000 in the first year to a local 501(c)(3).

After discussion, council members approved the resolution authorizing the city manager to execute the landfill gas agreement with Lucy Park Renewables, LLC. The contract now moves to execution and subsequent implementation steps outlined by staff, including permitting, installation of the gas collection and treatment systems, and marketing of the renewable gas.

The city’s next procedural steps, as stated by staff, include finalizing construction schedules, monitoring partner performance against contractual guarantees, and returning to council with periodic progress reports.