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Council tables oil lease proposal

Citing too many unknowns and a nearly completed development plan for the Lake Fort Phantom Hill area, the Abilene City Council tabled a request from Nosivad Oil to advertise for bids for oil leases in the area.

City Manager Larry Gilley told the council that a development plan was "a few weeks away -- by the end of the year, for sure." Only a few details remain to be worked out before the plan can be presented for the council's consideration, he said.

The item was one of eight on the consent agenda, meaning all could be approved in one motion if no council member or citizen requested separate consideration. Councilman Joe Spano requested separate discussion on the lease proposal.

Spano had questions concerning protection of the watershed and other development around the lake and said he was "not comfortable" with the proposal. Other questions involved the location of wells near the lake and how they would affect the nearby Abilene Gun Club and other development in the area.

Councilman Stormy Higgins asked if development could be limited to the east side of East Lake Road, away from the lake, while other development plans are completed. Other members felt that such a limitation would make the lease unattractive to oil investors.

Councilman Sam Chase, who conducted the council meeting in place of Mayor Norm Archibald, who was out of town, suggested that "We may be jumping the gun. There are too many unknowns."

The council gave final approval to a negotiated resolution between Atmos Energy Corp. and the Atmos Cities Steering Committee. The agreement will result in a nearly $20 million increase in revenue for Atmos Energy and will raise the average residential customer's bill by 81 cents per month, according to Abilene Reporter-News files.

"A lot of effort went into this study," Councilman Robert Briley said. "I hate to give bad news, but everything is going up."

He said $1 million of the new income is earmarked to help low-income families pay their bills to the company.

The council approved amending the city's Thoroughfare Plan to add a proposed road north from Southwest Drive to connect with another proposed road that would come south from U.S. Highway 277. The area near 277 and just inside FM 3438 (the connection between Rebecca Lane and Dub Wright Boulevard) is currently under development as Butterfield Meadows.

Director of Planning and Development Services Jon James said that, although the road isn't necessary today, the Thoroughfare Plan is intended to look "15 to 20 years in the future." The road could become necessary as the area is developed, he said.

In other action, the council:

• Removed from the agenda consideration of a lease agreement with Texas Candy Company LLC for use of the Baggage Express Building at 1201 N. 1st St.

• Approved a concession agreement with GW's Burgers and More at Abilene Regional Airport.

• Awarded a bid to Contract Paving Co. of Tye for $118,181 for Ambler Avenue resurfacing from Mimosa Street to Burger Street.

• Approved the Development Corporation of Abilene's annual contracts renewal with the city of Abilene for business services and the Airport Business Development Management Program.

Comments

Posted by Ranchero on September 26, 2008 at 5:56 a.m. (Suggest removal)

Smart move on the oil drilling at the lake... does NOT make sence from an ecologic point of view.

Posted by jamesdecker2006 on September 26, 2008 at 8:14 a.m. (Suggest removal)

Ranchero, they seem to be doing just fine over in the Barnett Shale.

Posted by topo97 on September 26, 2008 at 9:05 a.m. (Suggest removal)

Drill here, drill now... that's what everyone wants.

Posted by npangburn on September 28, 2008 at 2:43 p.m. (Suggest removal)

this is our water supply folks-please drill somewhere else

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