Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 87]

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84

BOARD OF TRUSTEES

[September 23

awarded to the Anderson Electric Company, Inc., Danville, the lowest bidder, in the amount of $22,194. Funds are available. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute this contract.

On motion of Mr. Williamson, authority was given as recommended.

IMPROVEMENT OF ROADS SERVING THE ROBERT ALLERTON FARMS (16) The authorities of Piatt County have requested financial assistance from the University for the oiling of roads in Willow Branch Township in which the Robert Allerton Park and the Robert Allerton Farms are located. About seven miles of roads lie within the lands deeded by Mr. Allerton to the University. In computing the values of all taxable property in Willow Branch Township, it has been found that the University owns approximately 20 per cent of the valuation of this township. The University has not paid taxes assessed against this real estate which means a loss of approximately 20 per cent of all taxes levied in the township. T h e township roads in Willow Branch Township must be oiled with at least two coats each year in order to make them year-round roads. Since the University has not paid the 1947 taxes payable in 1948, the Township Highway Commission is faced with the problem of being short over 20 per cent of the money levied and assessed for highway purposes. The Legal Counsel recommends that the Board authorize a contract with the authorities of Piatt County or of Willow Township whereby the University will agree to pay the cost of surfacing that portion of the road adjoining the Robert Allerton P a r k and Farms with a provision in the contract that such payment by the University is for services and will not prejudice any of its claims or affect its responsibilities with respect to the tax status of the property involved. The estimated cost of this service is $2,500 to $3,000 a year. I concur. O n m o t i o n of M r . M c L a u g h l i n , t h i s c o n t r a c t w a s a u t h o r i z e d a s recommended. OIL AND GAS LEASE ON OLNEY EXPERIMENTAL FARM (17) The University owns 1954 acres of land near Olney, Illinois, which is used as an experimental fruit farm by the Department of Horticulture. Approximately twelve acres are in orchards and the rest is in pasture land. Oil wells have been drilled within a mile and one-half of the University's land and have been in production for several years. The Sun Oil Company is interested in developing more production within this territory and has secured leases on properties adjoining the University's land. The Company wishes to secure an oil and gas lease on the University's land which would permit it to conduct drilling operations in the event that oil or gas in commercial quantities is found within a statutory offset location of the University's premises, after discovery and development drilling on other land. In that event the University's land would be communitized with adjoining acreage in such manner as would require the location of not more than one well on the present pasture land if production is discovered in limestone strata, or one well on pasture land and one well in the orchard if production is discovered in sand strata. In either event, location of the well or wells would be discussed with University officials before application for drilling permits from the State, and the wells would be drilled with every precaution possible to avoid damaging the experimental orchard and with full reimbursement for any damage. In the opinion of officials of the College of Agriculture, the drilling of one well would not result in irreparable damage or delay to experimental work. The proposed lease would provide for the payment of $5.00 a year an acre. If oil or gas is produced from wells on the University's land, the University will receive one-eighth of the proceeds. If producing wells are drilled within 330 feet of University land, the University will share in the royalties of such production. I recommend that the Board of Trustees authorize the execution of the lease.