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City outlines landfill renewable natural gas deal; city to receive a share of royalties

Public Utilities Board, Denton City · July 27, 2026
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Summary

The solid waste director described a 20‑year landfill renewable natural gas agreement that upgrades captured methane to pipeline quality; the city expects to receive about 22% of royalties at the high end, while a third party bears upfront capital costs.

Bridal Haney, Solid Waste and Recycling Director, briefed the board on a renewable natural gas (RNG) project that captures landfill methane, upgrades it to pipeline quality and sells it as RNG under a third‑party-operated model. Haney said the third party funds the plant infrastructure and the city receives a percentage of royalties: "They are cleaning that up, putting it to clean pipeline quality gas, and selling that as renewable natural gas."

Board members asked about financials and contract length; staff said the agreement is 20 years and the city’s share could be about 22% at the maximum return level while the private operator receives roughly 78% of revenue but funds the capital improvements. The board then considered and unanimously approved the solid waste rates and the FY26–27 solid waste operating and capital budget, which shows $55.4 million in both revenue and expenditures and an expected use of reserves for vehicle purchases.