Mingo Junction, a small village along the Ohio River in Jefferson County, Ohio is looking to tap into revenue from the Marcellus and Utica Shale drilling industry spouting up around it. The mayor and village council are trying to locate alternative sources of revenue since the local steel mill closed, leaving the village in a lurch after constructing a new water treatment plant specifically at the mill’s request. Mingo Junction is looking to leverage the one thing it has plenty of—water.
[Mayor Domenic] Chappano said he is looking to attract a plant that will treat water from the Marcellus and Utica shale gas drilling operations. The village also is looking to finalize a contract with LBG Land Services for the purchase of water. LBG Land Services is currently working to secure water-purchase agreements on behalf of companies interested in drilling for natural gas and oil.
The village may be able to sell a minimum of 3 million gallons of untreated water to LBG Land Services at a cost of $10 per 1,000 gallons. The amount could increase to a minimum of 6 million gallons of water in the second year of the proposed deal. If the contract is approved, the village could receive a minimum of $60,000 a year based on the 6 million gallons of water.
Village Solicitor Kristopher Haught said he is waiting to get the final contract revisions back from LBG so council can sign the agreement. He said LBG will have the exclusive right to get water from Mingo Junction.*
*Steubenville The Herald-Star (Aug 10, 2011) – Mingo wants to tap into drilling dollars