2/21/14 Commissioners sign off on enterprise zone agreement, review natural gas exploration request

  • By Nick Sabo
  • February 21, 2014
  • 350
                        
SUMMARY: Natural gas supplier was 3-D testing of county land Natural gas drilling and jobs, perhaps the top hot-button issues in Ohio today, made it into the Holmes County Commissioner’s business meeting Thursday Feb. 20. Commissioners approved an enterprise zone agreement with a Mt. Hope business that carries the promise to create five new full time jobs. A request for seismic testing to look for potential gas wells on county property was brought in by oil and gas producer Kenoil for review by commissioners. Scott Tipton, Kenoil land manager, said Kenoil is interested in carrying out a seismic study of approximately 265 acres of county land at the Holmes County landfill site. Currently, there is one oil/gas well at the landfill operated by Kenoil. According to Tipton, the well, which was brought on line in 1993, has been a stronger natural gas producer than oil. In its first year of production, the well turned out 41 million cubic feet of natural gas, compared to 223 barrels of oil. Holmes County receives royalties on the well. Last year, the county was paid $937.84, according to commissioner’s records. Tipton said Kenoil would like to explore the area using a three dimensional seismic study. The area was previously mapped with two dimensional seismic technology, Tipton said, but three dimensional may be able to pick up well sites that two dimensional might miss. “We think there can be some more sites in there,” Tipton said. “(The seismic study) may tell us drill the well, it may tell us don’t spend any more money out there.” Tipton said the county will also be able to collect royalties on a new well. Kenoil is further offering $5,000 up front for a lease. Tipton said the seismic testing is not looking for shale oil deposits. The natural gas deposits are expected to be closer to the surface than deep shale deposits, Tipton said. The seismic testing will cost approximately $300,000, Tipton said. Commissioners said they will review Kenoil’s proposal with the prosecuting attorney. In other business, commissioners signed off on an enterprise zone (EZ) agreement with Mt. Hope furniture maker Dutch Design. The EZ grants a 10 year, 50 percent real estate tax abatement on a new 17,000 square feet expansion to an existing building. In exchange for the tax abatement, Dutch Design has agreed to create five full time jobs over the next three years. Holmes County Economic Development Council executive director Tom Wilke said Dutch Design currently has 40 full-time employees. The new employees will be added over a three year period, with three employees in the first year, one employee in the second year and another in the third. With the 50 percent abatement, Dutch Design will still pay $1,700 in new property taxes per year on the expansion per year, Wilke said. The expansion is expected to cost $585,000, Wilke said, including construction and equipment. There are currently 15 EZs in Holmes County. Wilke said he expects to present commissioners with “a few more” in the near future.


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