Rochester Calls Public Hearing for Oil and Gas Rights

Efforts by Traverse City-based Jordan Development Company to obtain oil and gas leasing rights in Rochester has been met with skepticism by residents and city officials.

The Rochester City Council, which was slated to vote on a proposed lease agreement with the oil exploration company on Monday, instead tabled the issue in order to call a public hearing at its Sept. 23 meeting.

The company is seeking oil and gas leasing rights on 120 acres of city property, as well as Rochester Downtown Development Authority property, by way of horizontal drilling with surface work done outside of Rochester's city limits. 

Councilmembers, however, say they have received mostly negative feedback about the leasing efforts.

"Having this on the agenda, I can attest that I've received many communications, email, phone calls, and none of them were in support of this," Councilman Ben Giovanelli said. "It's going to be a tough uphill battle to the extent if anyone still wants to do this."

Giovanelli acknowledged adjacent communities have signed similar agreements, but said Rochester doesn't need the money and doesn't want to give away its resources for a short-term cash surplus.

"It's not like we're hurting for the money right now and I really don't want to sell out our natural resources for this, so I remain skeptical of the whole thing," he said.

Giovanelli said there are "more questions than answers" at this point and he wants to further understand how such an agreement would affect taxpayers before taking sides. 

"I didn't receive one piece of communication in support of it," he said. "Which, you'd think if people thought it was a really good deal we should do it, we'd hear that side of it."

Mayor Stuart Bikson also said the council received many notes opposed to such an agreement. 

"I think a number of us received many, many emails and calls, all very negative," he said.

Councilwoman Kim Russell said she received several emails and phone calls, but the tone was more inquisitive than positive or negative. 

With the public hearing, the community will have a chance to voice its opinion on the record.

"I did receive a lot of emails and some calls and I think it's only fair the community voice their opinion, good or bad, but I think it's a good way to start," Councilwoman Cathy Daldin said.