Schools will renegotiate 16th-section lease deal
Published 5:00 am Wednesday, October 26, 2005
Work to restore five oil wells has affected at least one leaseon 16th-section land in the Brookhaven School District, officialssaid Tuesday.
During the monthly meeting of the district’s board of trustees,Versie Rushing, director of the district’s 16th-section land, askedpermission to renegotiate the lease on Section 16-7-8, which is onOpelousas Lane.
The leasee, Clint Smith, was upset because extensive work byDenbury Resources on the section’s oil wells had changed the landhe leased for hunting.
“There’s not much hunting going on because of the work,” Rushingsaid.
He explained that Denbury Resources had put several roads on theland in order to access wells the company is trying to reopen.
Board attorney Bob Allen said an attorney general’s opinion on asimilar situation states the district can renegotiate thelease.
“We certainly don’t want to slow down the production of oil, butat the same time, I don’t want to lose 16th-section leases,” Allensaid.
The district will lose money by renegotiating and allowing theland to be leased for less, but the losses will be offset by moneymade from the oil wells.
Board members voted unanimously to allow Rushing to renegotiatethe lease with Smith for the remaining two years.
“He’s willing to do that,” said Rushing. “That’s an oldhomestead, and they’ve got two or three grave sites.”
In other matters pertaining to the oil wells, Allen said he haddrafted a flow-line agreement for Denbury Resources.
The agreement will require the company to survey the land wherepipelines will be laid and give the district a copy of thesurvey.
In order to reopen the oil wells, Denbury Resources will have torun salt water into the well and back out. The agreement statesthat flow lines must meet certain requirements, includingenvironmental regulations.