- Associated Press - Wednesday, October 1, 2014

SUMMIT, Miss. (AP) - Economic development officials say a company that plans to move into the former Kellwood building in Summit will manufacture drilling fluids to be used in the exploration for oil in the Tuscaloosa Marine Shale formation in southwest Mississippi and Louisiana.

The Enterprise-Journal reports (https://bit.ly/1yygi6V ) that the company has not been identified.

Pike County Economic Development District official Britt Herrin told a town council meeting Monday that the company will hire 40 people and another 20 will be needed for outside transportation jobs.

Herrin said the company will occupy 40,000 square feet on the northern end of the former Kellwood building. Pike County supervisors have already approved a lease with the company for the county-owned building.

Area officials are working to secure funding to upgrade a rail spur running alongside the building. To that end, the Summit Town Council voted to borrow up to $125,000 over 20 years from the Mississippi Development Authority’s Freight Rail Service Revolving Loan Program to upgrade the rail spur.

Mayor Percy Robinson said the town will pay $106,797 for work on the rail spur.

Herrin said the rail spur improvement is a key part of the deal because the industry will be shipping and receiving materials by both tanker and boxcars.

The town has already applied for $650,000 in Community Development Block Grant funds for the rail spur expansion.

Tuscaloosa Marine Shale formation is located in southwest Mississippi and central Louisiana. Experts have said the formation could hold 7 billion barrels of oil. Dozens of wells are being drilled in the area.


Information from: Enterprise-Journal, https://www.enterprise-journal.com

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