Durant Council awards city mineral lease to Freedom Oil & Gas after competing bids and public comment

The Durant City Council voted unanimously to award a city mineral lease to Freedom Oil & Gas and approved the lease form after public presentations and a citizen comment urging caution on fossil-fuel development.

Council moved and approved the award to Freedom Oil & Gas for the total sum presented in the bidding materials ($569,820.51 as shown on the agenda). The council also approved the lease document that will govern the company’s rights and obligations, including standard clauses for primary term, extension options, shut-in royalty and depth provisions.

City Attorney Doug introduced the item and invited the two principal bidders to speak. Mr. Hudson, representing Freedom Oil & Gas, described his firm as a 15-year-old non-operator that acquires mineral leases and participates financially rather than operating production. “We are able to offer additional money…because our overhead staff is lower,” Mr. Hudson said, framing Freedom’s higher bid as a financial strategy rather than an operating commitment.

Brett Lowry, broker for Bingo Resources and WSR Operating, told the council that operator control and acreage aggregation matter for where future wells are located. Lowry said the operator’s ability to assemble larger units makes drilling more likely and can affect long-term royalty income. He noted that his company’s approach focuses on planning and operations and that bidding strategy reflects that role.

During discussion council members asked technical and procedural questions about whether the well near the area had reported production, how royalty payments are calculated, and state force-pooling procedures. Mr. Hudson said publicly available data showed a spud/completion last year but no production posted on the public sites he checked; he also said that visible infrastructure (flare and tanks) suggested an operational site but that he could not confirm production figures for the council.

Public commenter Elizabeth Calico, founder of the Durant Green School program, urged the council to “pause” city leasing and consider long-term climate and sustainability implications, offering to present climate information to city staff and board members.

Council resolved a procedural issue about one tract (track five) that was removed from the award because the Durant City Utilities Authority owns that tract; the council noted the utilities authority will address that parcel through its own process. After a motion and second the clerk called the roll and the award and the lease approval passed on unanimous votes.

The council also voted to publish notice to request bids for an additional roughly 181.87 acres of city-owned mineral interest; staff said a map of the parcels can be provided on request.

What’s next: The council approved the lease form and the award; staff will finalize the lease paperwork with the successful bidder and will publish the notice seeking additional bids on the 181.87 acres.