×

Bellaire will sell raw water for fracking

T-L Photo/JENNIFER COMPSTON-STROUGH Members of Bellaire Village Council debate whether to sell water to Ascent Resources on Wednesday. Shown from left are members Jerry Olack and Janet Richardson.

BELLAIRE — In a split vote Wednesday, Bellaire Village Council approved an agreement to sell raw water to Ascent Resources for its gas and oil fracking operations.

Solicitor Paul Stecker said the five-year contract will allow the company to draw water from McMahon Creek at a village-owned site. The developer will also install a pipe along the edge of that property and pump water through it to drilling sites in the area. Stecker said the agreement includes options to renew it twice, each time for an additional two years for a total potential contract period of nine years.

The 4-1 vote to approve the measure came after disagreement among council members over how the sale price was negotiated and whether the agreed-upon amount of $3 per 1,000 gallons was enough. The company will pay $20,000 “up front” — meaning that it will pay that amount immediately, and that money will go toward water that is drawn by the company.

Voting in favor of the agreement were council members Bill Schmitt, Elizabeth Dugmore, Mike Doyle and Jerry Olack, while Councilwoman Janet Richardson voted “no.”

Richardson said she did not believe the agreement was negotiated in the proper way, and she believed that the village could negotiate a higher price. She objected to the fact that council had not seen or been informed about the agreement before it was already in the works.

Both Richardson and Schmitt noted that an Ascent representative who previously spoke to council said there was “room to negotiate.” Olack, however, called the potential revenue “found money” and said he feared the company would contract with another nearby landowner if the village tried to get a higher price. Fiscal Officer Marla Krupnik urged caution, saying she believed the company could easily go with another property owner.

While council temporarily moved on to other business, Water Distribution Supervisor Zach Warner left the room and called the Ascent representative to explore the possibility of the company paying a higher rate. He returned a few minutes later and said the company would be willing to provide more “up front” money, but that it remained firm on the rate of $3 per 1,000 gallons. He said the company already had other property owners in mind who would allow access to the creek.

“I honestly think we need to just sign it, because it’s money that we never had,” Olack said.

“I think the whole thing has not been handled properly,” Richardson replied. “The finance committee was not involved in this. We’ve got the solicitor working on an agreement that none of us saw. You’ve got the water distribution guy doing the negotiations with Ascent. If you guys want to sign at $3, go ahead, but I just …”

Warner pointed to nearby businesses such as ICR that Ascent could approach, but he said the company wanted to make a deal with the village “because they want to help the community.”

The waterline Ascent will install will run up Fulton Hill and, potentially, west on Ohio 147, according to Warner.

“I don’t like the way it was handled, either, but I think we have to come at it from the perspective that this is basically found money,” Dugmore said. “And this could potentially go on for a good bit of time.”

“The water don’t cost us anything,” Olack said. “I’ll make the motion that we accept for $3.”

Dugmore seconded the motion, and a roll call vote was begun. When asked for his vote, Doyle had additional questions for Stecker, who assured him that Ascent is responsible for compliance with all government requirements.

Following the vote to enter the agreement, council members all agreed that the funds resulting from it would be encumbered for street paving and/or the purchase of equipment.

In other matters, council voted to excuse Councilman Robert “Bubba” Kapral, who was absent from the meeting.

Richardson also pointed out that trick or treat in the village will be held from 6-7:30 p.m. Oct. 31.

And Dugmore said village offices will be closed on Oct. 13 in observance of Columbus Day.

Bellaire Village Council will next meet at 6 p.m. Oct. 15, a Wednesday rather than the usual Thursday, in council chambers at the municipal building. Meetings will return to the first and third Thursdays of each month beginning in November.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *

Starting at $2.99/week.

Subscribe Today