CONGRESSMAN PFLUGER, CITY LEADERS CALL FOR ROYALTY COLLECTION CHANGE 

(Oct. 9, 2025)

Congressman August Pfluger and Mayor Lori Blong called for action that will allow the City of Midland to collect up to hundreds of millions of dollars in oil-and-gas royalties over roughly 20 years from drilling under Midland airports.

Also joining the Republican lawmaker from San Angelo and Midland’s mayor at a press event inside ClayDesta this week were At-large Councilman John Burkholder and District 4 Councilwoman Amy Stretcher Burkes.

Under current federal policy, royalties are divided by surface land designation, so 100 percent of revenues from wells on airport property is set aside for airport system use, even though the City itself purchased and owns both the land and the mineral estate since the early 1940’s. Midland is seeking to have the ability to direct all royalties from Airports for city-wide use.

The City’s position is that these proceeds should support community-wide infrastructure and public services, not sit in restricted airport accounts governed by a federal ruling or legislation. Midland’s airports are financially stable, and the greater need lies in addressing aging roads, drainage, water systems and public safety infrastructure across a growing city.

Being able to direct revenues to the highest needs, this once in a generation mineral income would allow the City of Midland to fund critical infrastructure upgrades while keeping taxes low, consistent with its record of lowering the tax rate three years in a row, and maintaining one of the lowest tax rates among peer Texas cities.

“The city owns the property of the airport,” Pfluger said, “and they deserve to reap the benefits of these mineral royalties. Let me be clear: these royalties are not aviation revenues, but they're generated from mineral production below our very feet. This mineral income will help the city fund critical upgrades that benefit people in the Permian Basin. As I said previously, we need flexibility for energy producing communities like Midland. We must do the right thing for Midlanders.”

The current restrictions trace back to Section 813 of the FAA Modernization and Reform Act of 2012, which was signed into law by President Obama on February 14, 2012.

Section 813 was allegedly designed as a narrow reform allowing small general aviation airports to use surplus mineral royalties for non-aviation infrastructure projects under limited circumstances. In practice, the process proved to be restrictive. Beaumont has had an exemption, but it requires them to show a five-year capital improvement plan can be self-funded and exempts them from FAA and TxDOT grants during that five-year exemption period.

Because Midland Airpark was transferred to the City under surplus property rules following World War II, it remains subject to perpetual FAA obligations under the Surplus Property Act. This means that all revenue generated on airport-designated land, including mineral royalties, must remain in the airport fund unless the FAA issues a formal release or grants a Section 813 exemption.

“We are thankful for Congressman Pfluger’s partnership and leadership in helping us bring this issue to light,” Mayor Blong stated. “These are local dollars generated right here in Midland because of City-owned minerals. Those dollars belong to the taxpayer, and they should be used to reduce the burden on taxpayers, to strengthen our infrastructure and support the families who live and work here.”

The City of Midland officials have stated the Airports Department is in the best fiscal shape in recent memory and can handle upcoming projects -- including the Midland International Air and Space Port Terminal Expansion Project, which breaks ground later this month -- because of increased revenues from boarding fees and parking.

The City is limited in the collection of sales tax – compared to most larger cities across the region and around the state – as tens of millions of dollars are committed to other taxing entities.

Leaders commented this week that they are willing to collaborate with federal agencies on the right solution, so “local communities — not federal agencies — can decide how to invest their own resources.”

Burkes stated, “The mineral rights that the City of Midland owns belong to the taxpayers of Midland. The City should have the ability to direct how those royalty revenues are used to best serve our community — whether that’s infrastructure, public safety, or quality-of-life investments. Right now, federal restrictions from the FAA require that all revenues tied to airport property be reinvested solely in the airport system. That limits our flexibility and keeps potentially hundreds of millions of dollars from being put toward the greatest needs of our citizens. It is always a priority to reduce the tax burden on the citizens of Midland.”

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Complete statements from Midland Mayor Lori Blong and Councilwoman Amy Stretcher Burkes.

Mayor Lori Blong

“We are thankful for Congressman Pfluger’s partnership and leadership in helping us bring this issue to light. These are local dollars generated right here in Midland because of City-owned minerals. Those dollars belong to the taxpayer and they should be used to reduce the burden on taxpayers, to strengthen our infrastructure and support the families who live and work here. … Special thanks, as well, to Councilmembers Burkholder and Stretcher Burkes for their tireless work with me in addressing this issue.”

Councilwoman Amy Stretcher Burkes, representative of District 4

“The mineral rights that the City of Midland owns belong to the taxpayers of Midland. The City should have the ability to direct how those royalty revenues are used to best serve our community—whether that’s infrastructure, public safety, or quality-of-life investments. Right now, federal restrictions from the FAA require that all revenues tied to airport property be reinvested solely in the airport system. That limits our flexibility and keeps potentially hundreds of millions of dollars from being put toward the greatest needs of our citizens. It is always a priority to reduce the tax burden on the citizens of Midland. I also want to thank Congressman Pfluger, Mayor Lori Blong, and Councilman Burkholder for their leadership and commitment in bringing this issue to the forefront. Legislative change is needed so that local communities—not federal agencies—can decide how to invest their own resources.”