Farrell council approved a lease with a gas well-drilling company Monday that could give the city free natural gas and a new revenue source for a number of years.

Wilkes Energy Inc. of Bath, Ohio, wants to drill a gas well on city building property, said City Manager LaVon Saternow.

Wilkes has a number of wells in town, she said.

The city will get up to 400,000 cubic feet of gas a year for the life of the well and royalties on whatever gas comes out of the well, she said.

The free gas means a considerable savings for the city. Last year, with its mild winter, the city spent $11,000 to heat the city building, Mrs. Saternow said.

"We anticipate enough (free gas) to heat the city building," she said.

The amount of royalties will start strong and taper over time, Mrs. Saternow said. Wilkes estimated that first-year royalties could be as high as $20,000, and total $100,000 for the life of the well.

"We feel it is an opportunity too good to turn down," Mrs. Saternow said.

Under state law, Wilkes must approach residents who live within 330 feet of the well and ask them to sign a nondrilling lease, said land man David Kapp.

Residents who agree also would receive royalties.

If a resident does not agree, Wilkes would have to reposition the well so that the resident is not within 330 feet of the well, Kapp said.

No residents have been approached, and Kapp said he was not sure how many fall within 330 feet.

The company wants to drill sometime this year, Mrs. Saternow said.

Wilkes will have two years to drill and, if gas or oil is found, the lease would last throughout the life of the well, Kapp said.