Oil company looks to drill under Carlsbad city limits
Aug. 22, 2017
CARLSBAD, N.M. (AP) — A Carlsbad City Council decision will allow a New Mexico oil company to seek mineral rights from landowners and the city itself in order to drill underneath the city.
The Current-Argus reports (http://bit.ly/2g3vgjj ) the city council unanimously voted twice to allow Santo Petroleum to go door-to-door to lease mineral rights from owners, and to begin negotiations with the city for the mineral rights it owns.
The challenge for Santo is several surface-level land owners in Carlsbad do not own the mineral rights of their properties.
Santo Vice President Hanson Yates says the company has ongoing title research efforts to identify areas needed for the project, and who owns the rights.
City officials say they intend to negotiate a lease with Santo once all of the city's rights are officially identified.