Trustees look to secure $35M upfront in proposed oil deal
Photo credit: Midland College
What to watch: The Midland College Board of Trustees will meet Tuesday, March 17, at 4 p.m. to consider final approval of an oil and gas agreement that guarantees at least $35 million in upfront payments before any drilling begins, tuition and fee recommendations for 2026-27, room and board increases tied to dorm upgrades and meal costs, and a board appointment to fill Place 3.
Key points:
- Oil and gas agreement: Trustees will consider final approval of a surface use agreement and oil and gas lease with Midland-Petro D.C. Partners, LLC, and Permian Deep Rock Oil Company, LLC. The board previously voted unanimously at a March 2 special meeting to extend an offer for the agreement following months of negotiations.
If finalized, the agreement includes at least $35 million in guaranteed upfront payments to Midland College, with $15 million due within 30 days of execution and another $20 million tied to permitting or a set timeline. In comparison, the college’s budget for the 2025-2026 fiscal year was $77 million.
The agreement restricts drilling activity to a defined portion of the property and includes provisions aimed at protecting campus operations and student safety. The company cannot begin drilling until it makes required payments and must comply with site-specific safety requirements tied to the proximity of dorms and childcare facilities.
- Tuition and fees: Midland College is not recommending changes or increases to tuition and general fees, citing Gov. Greg Abbott’s request for a statewide tuition and fee freeze. Abbott asked public colleges and universities to hold tuition and mandatory fees flat for the 2026–27 academic year as part of a broader push to limit student costs.
While the directive is not codified in statute, it carries weight in the state’s higher education funding process, and institutions have historically aligned with similar guidance.
The college’s only exception is the Texas Higher Education Coordinating Board’s Financial Aid for Swift Transfer (FAST) rate for dual credit courses, which is set at the state level. Administrators are also recommending approval of proposed laboratory fees and special charges for the 2026-27 academic year.
- Room and board: The administration is recommending changes to room and board rates. College leaders say the housing increase reflects significant upgrades to O’Shaughnessy Hall, while meal plan increases stem from contractual cost increases from the college’s food service provider over the past two years.
- Board vacancy: Trustees may appoint someone to fill the unexpired Place 3 board seat. The term, previously held by Larry Lawrence since 2008, runs through 2028.
- Element451 platform: Trustees will consider adopting Element451, an AI-driven customer relationship management platform designed for higher education. The administration says the system would support the full student lifecycle, including recruitment, admissions, advising, retention, and application fraud detection.
The proposed $362,080 cost would span three years, with $58,572 paid from the current strategic planning budget and the remaining costs budgeted in future IT budgets.
- Facilities projects: The board will consider several large campus-related contracts, including fire suppression, a $507,330 contract for Chaparral Center rails, and an $801,140 contract to replace two air handling units and rebuild the cooling tower. The current major renovations budget will fund the facilities items.