The possibility of reaping millions of dollars in additional revenues for a perhaps underfunded school system had one Tangipahoa Parish School Board member singing “The Beverly Hillbillies’” theme song in a meeting room at Central Office in Amite.
In fact, the Tangipahoa Parish School Board is promised an upfront payment of $1.06 after it awarded a high bid for a mineral lease of its “16th Section” property in Kentwood to Halcón Resources Corporation – Tuscaloosa Marine Shale during their Tuesday night board meeting.
HK TMS LLC of Houston, Texas, beat out companies PALOMA Resources LLC, SN TMS LLC and COMSTOCK Oil & Gas – LA LLC, with a high bid of $1,066,312.60.
The contract requires HK TMS to pay an annual rental per acre of $828.50 — or $533,156.32 per year for 643.52 acres — if drilling doesn’t commence within three years.
Upon drilling, the oil and gas giant will provide the school system 25 percent in royalties for collected natural resources. So whether drilling begins, or unearths product, the school system will make money by leasing the 16th Section property.
During the school board meeting Tuesday night, Superintendent Mark Kolwe thanked board members for having a vision that could ultimately help the school system garner much-needed revenue.
Board member Andy Anderson, who owns property near the 16th Section, recused himself from voting on the mineral lease bid.
