The Commercial Dispatch reports that the town signed an agreement with Fletcher Petroleum Corp. of Fairhope, Ala. The town received $100 for a three-year lease on a three-quarter-acre parcel.
Hydraulic fracturing involves drilling horizontally instead of straight down, using high-pressure jets of water, sand and chemicals to split the shale and release previously unreachable reserves of natural gas and oil.
Foster Kennedy, who represents Fletcher Petroleum, says he has worked on more than 100 wells that use the process and has never encountered a safety issue related to fracking.
Mayor George Gerhart said he believes the fracking process was safe "as long as the process is done correctly."
Kennedy said there are several other wells in Caledonia, and at least two of them are still producing. He said all of them were erected without incident. However, the current fracking process was not used during the drilling of those wells.
No startup date has been announced by Fletcher Petroleum.