HASTINGS, Neb. – The city of Hastings has officially come to terms with a midwest-based carbon company to make renewable natural gas at its landfill for 25 years.

The partnership is with NewCarbon, who will soon begin building a 'Landfill Gas Collection and Flaring System,' that takes trash already in the landfill, captures the methane gases, then turns it into renewable natural gas.

The vote of the approval of the gas purchase and ground lease agreement between the city and NewCarbon passed the Hastings City Council Monday night on a 6-0-2 vote. 

Both Ward One representatives Michael Anderson and Steve Huntley abstained from the vote.

Before the initial vote, Huntley made a motion to table the vote until a later date, saying he wanted an outside company or legal firm to review the legal ends of the agreement before proceeding. 

"We've had other problems with contracts, for long-term, and I personally would like to make sure it's done right," said Huntley. "It's new to us, this is gas, it's mineral rights, I know that's very complicated. I think I would like to see another set of eyes look at it."

Huntley's motion to table the vote failed 3-5. 

The second vote to approve easement and the right-of-way agreement between the council and NewCarbon passed unanimously 8-0. 

NewCarbon will build and pay for the equipment, installation, and maintenance leaving no cost to the city during the 25-year agreement. 

The company is investing $20 million to develop the landfill RNG project, and Hastings will be able to collect royalties between 1-3.5% depending on the amount of gas produced in a calendar year. 

The projected royalty revenues are estimated at $2 million going back to the city during the 25-year agreement.

NewCarbon CEO Omar Khayum attended Monday night's meeting and says his company is confident about the building and development plans moving forward.

"We feel good about all of the technical and commercial steps to make progress," said Khayum. "The next step is for community to weigh in as they did today, and we've got long term buyers signed up."

The RNG capture system will be constructed on vacant land directly north of the existing landfill, and connect to an existing renewable natural gas line less than a mile northwest of the site. 

"The next major steps are permitting with the state of Nebraska, so we'll be working a lot with Lincoln to make sure that we permit and design the facility and equipment to do the things we expect it to do, and we're going to be very deliberate about that." said Khayum.

After the approval of permits, NewCarbon can begin construction, which will happen no later than 2027, and has an expected completion date of 2029.

The 25-year agreement begins once NewCarbon begins capturing gas after completed construction.