Posted by: jeb1 | August 12, 2010

South Mansfield gets windfall payout from lease sale

The Louisiana Department of Transportation and Development leased almost 56 acres in DeSoto Parish, earning a cash bonus of $83,962, or $1,500 an acre. Samson Contour Energy was the bidder.

It was the village of South Mansfield’s turn Wednesday to be on the receiving end of a windfall payout following the state Mineral and Energy Board’s monthly lease sale.

The tiny municipality that butts against Mansfield’s southern corporate limits earned $354,975 for leasing 25.6 acres. The amount triples the village’s general fund budget.

“We’re so overwhelmed we don’t know what we’re going to do,” Mayor Euricka Mayweather said. But she can offer one promise: “We’re going to spend it wisely. … We’re not going to waste any of it.”

Classic Petroleum, which bids on behalf of Chesapeake Energy, bid $13,850 an acre for the acreage, which includes streets, rights of way and assorted tracts of village-owned land. The village had set a minimum bid of $4,000 an acre.

In June, the equally small village of Grand Cane received $392,677 for leasing acreage within its corporate limits. The windfall will allow village leaders to do a number of improvement projects on a wish list.

South Mansfield officials were not prepared for such a big payout so they have no plans as yet for the unexpected funds. “It will go to a good cause,” Mayweather said.

The Mineral Board collected more than $3.7 million in bonuses, bringing the calendar year total to $8.3 million. The 26 leases that were awarded covered more than 6,898 acres, out of 39 nominated tracts covering 25,806 acres. Eleven of the tracts were in north Louisiana and 15 in the southern parishes.

The city of Shreveport and the Sabine Parish Police Jury were the only other area governing agencies to receive cash bonuses at this week’s lease sale. Shreveport got $151,066, or $5,732 an acre, for 26.3 acres leased by Classic for Chesapeake.

The Sabine Police Jury received $21,000 or $6,000 an acre, for 3.5 acres of streets and alleyways in the La Plaza Subdivision. Comstock Oil and Gas-Louisiana, LLC, was the bidder.

No bids were offered for land submitted by the town of Ringgold in Bienville Parish.

The Louisiana Department of Transportation and Development leased almost 56 acres in DeSoto Parish, earning a cash bonus of $83,962, or $1,500 an acre. Samson Contour Energy was the bidder.

From The Shreveport Times

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