Hess to Lease OH City Landfill for Drilling – $5,400/Acre
Steubenville, Ohio is about to close a lease deal on a former city landfill. Hess has agreed to pay $5,400 per acre for a signing bonus on the 110 acre site, and 19 percent royalties.
Sixth Ward Councilman David Lalich proposed an ordinance agreeing to lease the 110.6-acre former city landfill near the Jefferson Airpark to Hess Ohio Development for shale drilling operations.
Hess agreed to pay the city $5,400 an acre, or a total of $597,256.20, for an initial five-year lease and 19 percent royalties.
"We asked attorney Joe Corabi to assist us in negotiating this lease with Hess because of his experience regarding the shale industry leases," explained city Law Director S. Gary Repella.
The council finance committee had met with a Hess representative in January to discuss the lease offer.
Second Ward Councilman Rick Perkins asked Repella to include language in the ordinance to ensure all profits from the lease agreement be used for the permanent closure of the landfill in order to meet an Ohio Environmental Protection Agency mandate.*
*Steubenville (OH) The Herald-Star (Feb 22, 2012) – Shale industry impact being felt in city