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ISU Sees $350,000 In Oil Drilling Royalties

By Gretchen Frazee

Posted January 8, 2015

Indiana State University has generated about $350,000 in royalties from drilling oil.

The "Tribune-Star" reports money from Lawrenceville, Ill., based Pioneer Oil Co. drilling operations will be used for maintenance needs.

ISU didn't receive its first check until fall, [ISU vice president for business affairs Diann] McKee said. The royalties will be used for such deferred maintenance issues as roofing, windows, mechanical or electrical systems or other infrastructure needs.

So far, none of the funds has been used.

Asked about how much oil has been produced so far, McKee said she could not immediately provide that information without requesting additional reports from Pioneer. "That would be a question for Pioneer," she said.

Pioneer Oil signed an oil and gas lease with ISU in 2012 and began drilling work about a year ago.

Under the agreement, Pioneer Oil agreed to pay an upfront fee and royalties of at least 15 percent in exchange for permission to drill for oil on university property.

Network Indiana Contributed to this report.

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ISU Sees $350,000 In Oil Drilling Royalties

By Gretchen Frazee

Posted January 8, 2015

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