Firm wants to buy city water for drilling
The Finance Committee of city council took no action Tuesday on a proposal for the city to sell water to LBG Land Services which would, in turn, sell the water to oil and gas well drillers expected in the area later this year.
Committee Chair Councilman K. Bret Apple said the proposal will have to be examined further with input from city council's Utilities Committee and the city Utilities Commission.
Capitol Development, Ltd. President Chris Gagin, who previously worked for former U.S. Rep. Charlie Wilson, and the company's chief financial officer, Linda Bolon, who was Columbiana County's former state representative and former treasurer, made the proposal on behalf of LBG Land Services of Cadiz.
They're asking for a two-year water services agreement at a price of $10 per 1,000 gallons of bulk water purchased, with the company picking up the costs for meters and equipment to haul the water. Gagin said the company would be looking to purchase 200,000 to 300,000 gallons of water per day on an as-needed basis, pointing out the water did not have to be potable, or ready to drink. It could be fresh, raw water.