Lease approved for Indiana State oil drilling

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A company planning to drill for oil on Indiana State University's property has had its lease agreement approved by city officials.

Terre Haute's Board of Public Works on Monday approved the proposed lease, which sets out royalty payments to the city and property owners. The Tribune-Star reports Pioneer Oil Co. must now seek leases with Indiana State and other downtown landowners.

The university received permission last year from a city zoning board for drilling on the eastern edge of campus. Some work has started, including the drilling of a water disposal well, construction of fencing and landscaping.

Numerous other oil wells are in operation around Terre Haute, with a large discovery in 2011 on property belonging to the Hulman family that owns the Indianapolis Motor Speedway.

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