- COMMUNITY LINKS
The Borough of Ridgway held a special council meeting Tuesday afternoon to discuss the option of contracting CSG Consulting, LLC out of Clarion to market the borough's water supply to drilling operators.
CSG Consulting officials propose to market and sell the borough's water on a commission basis at 12.5 percent of gross sales for a period of no less than five years.
"They are two individuals who are professors at Clarion University who have been in the private sector themselves and they have gotten involved in the marketing of water from municipalities primarily in this area," said borough council chairman J.R. Geitner. "I believe what they looked at was the availability of the amount of water that we have to sell.
"They see the availability of how much water we have to spare and market, and that is what they are looking at."
CSG will also receive 50 percent of all sales dollars generated by the secondary product offering. The secondary product offering is designed to allow the borough to correctly price and market options to drilling companies that would provide the borough with a secondary revenue for its water source.
"Now that 50 percent was on the futures [reserve capacity], if somebody is going to pay us $2 per thousand gallons to reserve water two years from now they would get one of those dollars," said environmental manager Paul McCurdy.
Council member John Casolo Jr. noted that it was best that borough officials did not get 'locked into a contract.'
"Correct me if I'm wrong, but a few months back at a committee meeting, weren't we against committing ourselves?," Casolo said.
Pick up a copy of the Wednesday, Aug. 31, 2011 edition of The Ridgway Record for more.