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Council hears proposal to lease subsurface mineral rights; law director says decision rests with council
Summary
Council members heard an initial presentation on leasing subsurface mineral rights near Beatty Park, including assurances the city would use non-surface leases and bid bonus payments; Law Director Costa Mastros said he will tighten ordinance and lease language and return with details next week.
Council members discussed a potential lease of subsurface mineral rights that could affect land under or near Beatty Park during the Sept. 30 Steubenville City Council meeting.
Law Director Costa Mastros told council members the question of whether to lease city minerals is theirs to decide. "It's for you guys to decide. Not me. I'm here to make that happen," Mastros said, adding he would "tighten up some of the language" and prepare a lease form and revised ordinance for further council consideration. He said earlier leases on landfill property required money to be placed into an Ohio EPA-created trust.
Council member Michael Albaugh asked whether such leases could allow drilling into the park. Mastros said the current approach would be "non-surface leases," noting operators can laterally drill from offsite locations: "They can do it from miles away." Mastros emphasized he is working with co-counsel and plans to bid the lease so multiple companies can compete, with firms bidding the bonus-per-acre amount while accepting the city's lease terms.
Members also discussed where any revenue would be deposited. Mastros said lease revenue generally goes to the city's general fund unless the deed or an agreement restricts the use. He contrasted that with prior landfill leases governed by an Ohio EPA trust.
Mastros asked council to consider sunshining (scheduling and advertising) an ordinance and said the city must advertise for five consecutive weeks and hold a public meeting before final action. He said he would return next week with tightened language and any additional parcel information.
The council did not vote on the lease at the Sept. 30 meeting; Mastros framed the discussion as preparatory and said the final decision would rest with council members.
