The Laurel City Council voted Tuesday to enter into an oil and gas mineral lease with Venture Oil & Gas, Inc., for drilling at the Laurel Sportsplex property located on Highway 84 West. Venture currently has a similar operation located across the highway, officials said.
The deal is a three-year lease with a $350 per acre bonus and 25 percent royalty for the city, said board attorney David Ratcliff.
The measure drew the attention of Laurel resident Henry Thompson, who has petitioned the city numerous times over money he says the state owes Laurel and Jones County for oil drilling here. Several times during Tuesday night’s session, Thompson broke protocol and asked questions to council members.
Ward 6 Councilman Johnny Magee identified Thompson before asking about that money.
“Mr. Thompson comes in with a whole lot of figures,” he said. “Sometimes I wonder if he does know what he’s talking about.”
Ratcliff said he has to come to council, likely during executive session, to give his thoughts about the claims on oil revenue.
“Mr. Thompson continues to talk about exactly the same thing,” he said. “I believe the statute should be interpreted differently than the Attorney General has chosen to do so.”
Ratcliff said for the board to get any money owed to them by the state, the City of Laurel would have to sue the State of Mississippi.
“I can begin proceedings tomorrow, but your chances are not very good,” he said. “The Attorney General’s opinion also protects them from having to pay anything in the rear (i.e., back payments).”
Ratcliff said Venture has been successful in their previous endeavor on Highway 84, noting that the company plans to drill fairly quickly on the Sportsplex property.
“According to the state statute, the funds would go directly into the general fund of the city,” he said. “It’s much needed ad valorem taxes.”
In other matters, the council:
• Tabled discussion on a measure authorizing Mayor Melvin Mack to sign a memorandum of agreement with the Mississippi Main Street Association for continuation of Laurel Main Street. The council, which has already funded the program through this fiscal year, requested several changes to the proposal and sent it to the Planning Commission.
• The council also returned a request by Laurel resident Mentha Phillips to the Planning Commission. Phillips has requested a special exception to allow the opening of a day care center at 1315 N. 1st Ave. She was originally denied after failing to attend a commission meeting, due to her family being on a cruise.
• Approved an order for payment of travel expenses not to exceed $1,000 for Lula Cooley, the Hometown Mississippi Retirement Community Director, to attend a tourism event in Chicago, Ill., on Jan. 15-17.
• Adopted an order granting a one year special exception to Grady B. Morgan dba KKG Properties to allow the location of a multi-family residence at 746 E. Elmo Street.
• Adopted an order approving the lot cleaning assessment bills on the list of property addresses and property owners.
• Approved the claims docket.
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Related Photos
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Photo/David Owens
City enters into drilling agreement
Venture Oil & Gas, Inc., will drill at Sportsplex
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