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The State Department of Corrections Hopes Drilling for Oil Will Ease Financial Woes
Montgomery, AL – (AP) - Alabama Department of Corrections hopes
drilling for oil on prison property can ease some of its financial
Prison Commissioner Richard Allen announced Tuesday that the
department has signed a five-year contract with Foote Oil & Gas
Properties of Gulf Shores to explore for oil near the G.K. Fountain
Correctional Center in South Alabama.
The cash-strapped department has already received $400,000, plus
a guarantee of 25 percent royalties and a $300 bonus per acre on
any oil or natural gas the company should eventually extract.
Andy Farquhar, director of Alabama Correctional Industries, says
seismographic surveys show some hot spots that could yield oil.