The town of Summit will lease its mineral rights to an oil company that is looking to drill in the area.

The city council this week agreed to lease 16.8 acres to Shreveport, La.-based PAR Minerals Exploration LLC.

The lease is for three years at $150 an acre. The town also will receive a 3/16 share of royalties from oil taken from town property.

PAR's Nicki Boland presented $2,520 check to the town on Tuesday July 12, 2012.

Boland said PAR wants to drill in a largely unexplored oilfield around town that isn't connected to the nearby Little Creek, Lazy Creek or McComb oilfields.

Boland said hydraulic fracturing, or fracking, won't be involved.

Boland said PAR officials are still deciding on the most effective locations to put oil rigs.

She said drilling won't be done within 200 feet of homes. The company will likely rely on directional drilling to retrieve oil located in places it cannot put a rig, Boland said.

"It's just not feasible to drill next to anybody's house, barn or shed," she said.

She said rigs will have sound-dampening fences put up around them once drilling commences.

"Right now, we're leasing numerous sections and (company officials) will decide where the units will be all over the area," Boland said.