News From Terre Haute, Indiana


December 7, 2013

Pepsi, oil and gas agreements on School Board agenda

VCSC to get $1,000 oil signing bonus

TERRE HAUTE — The Vigo County School Board will consider an agreement with Pepsi and an oil and gas license with Pioneer Oil when it meets at 6 p.m. Monday.

The board will meet in the administration building, 686 Wabash Ave.

The Pepsi agreement, a continuation of an existing one, provides Pepsi with a six-year exclusive agreement to provide its products, including juices and flavored water, in schools.

In return, Refreshment Services Pepsi will provide sponsorship fees of $100,000 to the school district annually for a total of $600,000. Superintendent Dan Tanoos said that money will go to the district general fund.

“With decreased funding from the state, we need to find money any way we can to ensure we stay solvent,” he said.

 In addition, RSP will provide $6,000 of donated products each year of the agreement, and schools will benefit from $25,709 in commissions each year, an estimated figure based on sales this past year.

The total value of the agreement to the school district is $790,254.

Jay Etling, VCSC business manager, said the company “has really done a great job working with us over the last several years.”

The company also has worked with the district to include healthy beverage choices, he said.

In other matters, the board will consider an oil and gas license with Pioneer Oil.

The company would not be drilling under VCSC property, but near it, said Steve Unger, an attorney with Bose, McKinney and Evans, who is working with the district on the license.

The company already has an agreement with ISU to put wellheads on ISU property. Pioneer will drill whether VCSC signs a license or not, Unger said.

By signing a license agreement, if the wells produce oil, VCSC will receive a share of the royalties, based on its acreage as part of the total property pool involved, he said.

“We have a small percentage,” Unger said.

The district also will receive a $1,000, one-time fee for signing.

Other downtown properties are signing similar agreements, Tanoos said.

In spotlights, Mike Klippel, VCSC risk manager, will share information about athletic safety at the three high schools.

Also, John Plasse, Terre Haute police chief, will present a check to the VCSC backpack program.

Under personnel, the board is being asked to approve Dallas Kelsey as an interim dean at Honey Creek Middle School, effective Dec. 4 through the balance of the 2013-14 school year. He had been principal at Hoosier Prairie Elementary.

The board also is being asked to approve Jennifer Russell as interim principal at Hoosier Prairie, effective Monday. She has been a dean at Terre Haute North Vigo High School.

Tanoos said Kelsey has asked to transfer. “He felt it was in his best interest for personal reasons,” he said.

Sue Loughlin can be reached at 812-231-4235 or

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