BEAUMONT, Texas - advances in drilling have helped that the American cities and towns strike natural gas, and just in time, it would seem. With many facing Cash crunches could go the millions of dollars in royalties are crops towards saving of public services, jobs and much-needed road projects.
Not so fast. Integrated into deeds and federal funds due to the limitations not communities can use most your newfound wealth, to close budget gaps.
And so, while elected officials struggle to meet the rounds of money sitting there, close enough to smell but just out of reach.
"There are road projects to which we want to move with the designs are the place, but because of the federal rules, we are unable to use the resources", said Kyle Hayes, City Manager of Beaumont, Texas, a refinery city, the millions on gas drilling at the airport has made. "Right now, it's only there sit $ 35.3 million."
The rules differ slightly depending on whether you dictated administration by a government agency, such as the Federal Aviation, or by a non-profit or individual during a fact broadcast. But the bottom line is the same: to have sales of gas drilling often made to the area reinvested where minerals extracted.
With new technologies and drilling, Lynn Lunsford, an FAA spokesperson said techniques, once out of reach gas reserves will be made available, the problem is growing and currently concerned about a dozen airports, including several in Texas and Louisiana, and at least one in Pennsylvania.
"The FAA this directive in the light of windfalls reassessment was this,", said Lunsford.
The FAA a reinvestment clause tied aid that exist to ensure that the money made on airports - such as from leasing transactions or rental hangar gets room - reinvested it help fund maintenance and improvements, Lunsford explains. The clause was only a problem recently with the millions made from natural gas extraction at airport properties.
Beaumont - a State of Texas refinery city of just over 110,000 inhabitants - has more than made royalty checks $35 million in the past 10 months of gas. But because of the reinvestment clause that money has not to return to a small airport, more than 18,000 treated flights annually and has 39 private single-engined aircraft hangars.
"I could spend so much money, if I RIP everything down and it built", said Brenda Beadle, Beaumont's investment manager.
"I $3 million out there, not to mention could spend $ 35 million not", said Hayes, laugh.
The city has tried the FAA money back, give up hope to bindings get full access cut the gas money. But Hayes said the answer of the Agency gave the city: "we have never had someone want to return the money." "We don't know if we can do."
Lunsford acknowledged that are not designed grants to payback because allow "rarely looking to give money back." Improvement grants a 20 year term have that requires all revenue during this period are reinvested in the airport, he said. Used for the purchase of land grants, a "forever commitment" and almost all major airports - and many smaller - received federal funding.
Beaumont's sales tax revenues $ 4 million fell last year and it was a possible $ 600,000-budget-deficit for the year 2010 over. The city almost all his fees, rentals licenses and permits, increased and eliminates 30 city position by abrasion, Hayes said. This year tax recovered a bit – are 2 percent - but the city is still far from that for the money lost.
However, Beaumont is committed to begin a much-needed 30 dollar infrastructure project. The streets, some major arteries, the large city stores are 30 years old. Potholes were patched and re-patched, asphalt and concrete fail said Hayes.
"It is now money," he said in frustration because the FAA "indicated that there must be a clause in the contract that says all revenue from mineral interests at the airport used."
Fort worth, a growing city of more than 720,000 West of Dallas, sits smack in "honey hole" from the Barnett Shale, nurses than say Mayor Michael Moncrief. The geological formation like other crossing nation and the world has long been known for rich gas reserves contain, from the were to, reach drilling new methods you five years ago accessible.
Continue to enjoy one of the first cities, the riches of the new natural gas drilling worth more than $89.5 million in the last 10 years of gas royalties, made leases and bonuses of holes in parks, golf courses and the airport.
Money of the city would cover 72 million US dollars budget deficit, the conclusion of public swimming pools and almost forced shutdown of libraries. But only about $15 million of which was full, reinvested the rest in areas, where the money has been made.
"It was a huge challenge for this advice," said Moncrief the cash deficit it faced, and the need to balance the budget. "But this gap budget would have been much more for the large impact of the Barnett Shale gas play."
Pittsburgh, is now observe and learn. It tries to extract a deal with the FAA removed before signing a lease with a gas company, money from the airport, who sits on the lucrative Marcellus shale is order.
Coffers Allegheny County Airport land and its mineral rights has county spokesman Kevin Evanto said.
"Since county taxpayers purchased the land." We a significant amount of any revenues county taxpayers want to benefit from gas drilling, "he said."
Joe Turner, Director of the parks and Recreation Department, hopes in Houston just such concerns. In August, the city signed a three year lease company with a gas drilling. Exploration will take at least a year. If gas is extracted and the city makes all money, revenue from the largest 770 acre Herman Brown Park has made it because Act restrictions are reinvested Turner said. The city will reinvest almost definitely sales made in two smaller parks you also.
"We try to protect the parks in the long term." No one would ever imagined that you deserve this kind of income. We can only hope that we could earn a fraction thereof, "Turner said after learning about revenue elsewhere made."
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