There’s Oil Under Them Thar Runways!

The News-Sentinel and AP are reporting that the Fort Wayne-Allen County Airport Authority will be presented with a proposal to sell the mineral rights under the airport in exchange for yearly revenues approximated at $4.9 million in royalities. 

From Kevin Leininger’s article, “Turn oil reserves into revenue“:

[…] The airport is seeking another $2.8 million in property taxes to compensate for the loss of the Kitty Hawk air-cargo operation despite a 6.5 percent increase in passenger traffic this year.

[…] Given the smaller size and expected oil and gas reserves of Fort Wayne International, any mineral-rights deal would be significantly less lucrative. But the local airport’s financial needs are relatively small, too – which is why officials shouldn’t minimize the potential. Knox said it’s standard to give the property owner a 12.5 percent share in each gas well – or about $119,000 per year. If Knox can locate 80 productive wells on his hoped-for 2,000 acres, that amounts to about $4.9 million in annual royalties, plus possible bonuses.

[…] But with governments looking to tighten their belts or to generate revenues in non-conventional ways – consider the recent proposal to sell off some Fort Wayne parks property – Richardson is right: With even congressional Democrats finally acknowledging the obvious need to increase domestic drilling, it would be foolish to reject Knox’s idea without giving it every chance to work for his investors and taxpayers alike.

I wonder if anyone’s studied/tested the ground under Harrison Square for oil?

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