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Board approves oil-and‑gas lease with Incline Energy; counsel says terms better than forced pooling
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Summary
The board voted to accept an oil‑and‑gas lease with Incline Energy 3, LLC that counsel said includes an $11,500/acre bonus (total ~$104,868.47) and a 20% royalty; counsel recommended approval to avoid less‑favorable force‑pooling outcomes.
The Adams 12 Five Star Schools board voted Jan. 21 to accept the conditions of an oil‑and‑gas lease with Incline Energy 3, LLC after outside counsel summarized negotiations that improved the district’s financial terms.
Counsel (Matt Sura) told the board that a competing initial offer had been ~$4,000 per acre with an 18% royalty, while the negotiated offer from Incline Energy provides an $11,500 per‑acre bonus (total bonus $104,868.47) and a 20% royalty, along with additional protections for district interests. Counsel recommended approving the lease rather than being force‑pooled, which he said would leave the district as an unwilling partner with less favorable terms.
Board members noted a prior public controversy when the district previously discussed force pooling near Silver Creek Elementary about seven years earlier and said they had conducted visits and due diligence; several board members said state law limits options (either lease or be force‑pooled) and that taking a negotiated lease captures financial benefit for schools.
The board’s roll‑call votes were recorded as 'Aye' by the directors present in the transcript and the motion carried. The board thanked counsel for the negotiation work and asked for any necessary contract finalization steps to follow standard procurement and legal review processes.
