The Looming Tower
by Steve-O
That picture is Gas Well No. 1H in the Thornton lease, API No. 439-32645. It’s a horizontal well with an approved completion depth of 9,000 feet and an expected completion depth of 7,216 feet. Operator Permit No. 147715, Chesapeake Energy. The legal location is the Sutherland, E survey, Abstract No. 1438. Here’s the linky.
Oh, and there’s an apparent High Impact Variance requested with the City of Fort Worth, Case No. GW-007-055. There’s some apartments about a long fly-ball to the south of the site, and houses on the west side of the railroad track across Granbury Road. Otherwise, it is an industrial area.
According to the City of Fort Worth Web site, it appears to be the first gas well in City Council District 9.
That’s my gas well.
Well, actually not my gas well. It’s mostly brought to you by my business parter, Chesapeake Energy. I guess Mayor Moncrief and I have something in common other than kick-ass mustaches. We both have put money from Chesapeake in our pockets.
Together, we are doing Fort Worth a world of good.
I wish I believed that. But I don’t.
If I had to do it over again, I wouldn’t sign that lease. But that horse is out of the barn. All I can say is, Fort Worth, I am truly sorry.
No, I’m not proud of it. But it goes to show you that urban gas drilling isn’t something that energy companies do to us. We all play a part — including me.
So why did I sign? Gas drilling really wasn’t much on my radar. Like most people in Fort Worth, I didn’t really think too much about it. I signed because I figured even if I didn’t, they’d take the gas anyway, so why not?
The level of thought that I put into it was pretty low. Four Sevens said the drilling site would be in an industrial area near the railroad track. No well would be on our property. No pipeline would be on our property. They even agreed to give some money to a local park. I signed on the line. Done.
And really, I’m not against gas drilling. I’m not even opposed to urban gas drilling. But there are safety and environmental aspects that I was not aware of when I signed my lease that now concern me, such as high-impact variances and injection disposal wells. I don’t remember hearing anything about a high-impact variance when I signed my lease, and even if I had, it probably wouldn’t have meant anything to me. Ditto for injection wells.
So do I blame Chesapeake for this? Or Four Sevens? Or the City of Fort Worth? Nope. This one is all on me. I’m a big boy. I made that decision.
But, like Frank Sinatra once sang, regrets, yeah, I’ve got a few.
That’s because I don’t believe that Fort Worth’s drilling ordinance adequately protects its citizens or its environment. Mayor Moncrief certainly thinks the ordinance can be improved on. When KERA’s Kris Boyd asked the Mayor on June 8 if the city’s gas drilling ordinance was adequate, Moncrief was very clear: “No.” In fact, if you like, go see him say that on this video. Everything worth watching happens in the first five minutes. The money shot is at about the 3:20 mark.
Of course, I’m never sure which Mike Moncrief I get. On Sept. 11, he ripped Wendy Davis a new one for suggesting that the drilling ordinance needed amending. He described it then as “a model ordinance.” Then, of course, there was the Mike Moncrief behind Door No. 3. That one appeared a few weeks later, it was decided that the drilling ordinance would be revisited. Since then, the public has seen no action on this issue.Would the real Mike Moncrief please stand up?Of course there isn’t any shortage of action on the issue of saltwater injection wells, which Moncrief called the next big challenge for the city and its drilling ordinance in the video above.
Although there is currently a moratorium on new injection wells here in Fort Worth, I don’t expect it to last. What I hear now is that the gas drillers are making inroads at the policy level in City Hall. They argue that we are better off injecting this into the earth than trucking it across our streets. In my opinion, if things at City Hall continue on their current course, there will be injection wells in Fort Worth.
You may not care now, but if the researchers are correct, you might need the salt water in the earth under Fort Worth to drink in a couple of decades. Right now El Paso is already pumping salt water out of the earth and desalinating it for drinking. We might need to do the same in a couple of decades. Of course, if we inject that waste in the earth now, that option won’t exist.
I don’t put a lot of faith in state laws either. As I wrote last week, the people we trust to watch the gas drillers get quite a bit of money from the drillers themselves. Not to mention the fact that the laws governing gas drilling were written for rural gas drilling, not urban gas drilling.
But I didn’t know that when I signed my lease, but I didn’t try very hard to find out, either. And who’s fault is that? Cheseapeake’s? Four Sevens? The City? Nope. Again, that one is on me.
So does that mean that there is nothing to do about these regrets? No.
I have to live with the consequences of my past decision to sign a lease. That tower is there.
And let me be clear — I don’t fault our Mayor for changing his position on this issue. I certainly have changed my mind on this issue. But I have decided to take a side in this issue. I am siding with Fort Worth. I believe that the people of Fort Worth need to be involved in the decisions that effect our community. We who live here in Fort Worth ultimately decide what kind of city we want to live in. You decide by getting involved (or not). By voting (or not). By signing a mineral lease (or not).
Many people will tell you that the Barnett Shale is an economic engine that will propel this city for decades. And it is certainly true that the Barnett Shale will bring a lot of money into this city.
But if the Barnett Shale had never been tapped, where would we be as city? I think most people would agree that we would be just fine without a penny from urban gas drilling. It’s not our salvation.
And that’s because we’ve got a lot of things going for us. We live in a beautiful city with fantastic architecture, lots of green space, thriving commerce and a ton of oddball characters to keep things interesting.
You see, I believe in the future of Fort Worth. I think our best days are ahead of us. I think that in a dozen years, we could be a lot like Austin. We could be a destination city — a place where people from around the country choose to move.
But I can also paint a darker picture. I can see a different Fort Worth. We could pave over our green space. We can shoot a chemical soup into the earth beneath us. We can put development of our mineral resources above the livability of our city. We can be Midland. Or Odessa. Yeah, there’s some people who make a lot of money there. But would you want to live there? I wouldn’t.
What kind of city do you want to live in, Fort Worth? The choice is yours.
22 Comments, Comments or Pings
AndyN
One Ring to rule them all,
One Ring to find them,
One Ring to bring them all
and in the darkness bind them.
Excuse my LOTR geekiness, but I see a recurrent theme here.
Not sure if image links work here, but:
Go easy on Odessa/Midland. There wouldn’t be much of anything out there if not for the petroleum production. Dallas, Fort Worth and Houston would also be much smaller without having tapped the wealth of west Texas.
Nov 19th, 2007
Steve-O
I knew that line would get a rise out of you, Andy. And you are right. Today’s Texas was built by energy production. However, I believe that we can do these things and still be responsible stewards of the land. I cite Midland and Odessa as examples of what can happen if we cede the decision-making in Fort Worth to money and industry. If we want a city worth living in, we need to be willing to stand up and say what we will accept and what we won’t accept.
BTW, I have a few relatives who made their way in the energy industry out there. I’m willing to take a few pokes, but I know there are lots of good folks there.
Thanks for reading.
Nov 19th, 2007
peteg
Thanks Steve-O for writing so honestly about your own experience.
Pete W talks a lot about this at the cowtownchronicles.com, but I agree with him–”Dino Fuels” are a dead end, probably in our lifetime. Texas has always been a world leader in Energy, so Texas should look to the future and pioneer renewable sources of Energy.
We shouldn’t let our corporate friends shit on our front porch and then gladly clamor over the few shillings they toss our way. It’s nice that the gas companies are writing checks for parks, but how many seconds does that gas well have to run to make the same amount of money? These deals are a pittance, not a partnership, especially if you factor in the associated risk costs. Don’t be such a cheap date, Fort Worth. Have pride in this great city. Don’t let fat cats decide your fate. Make them earn every cent of the ridiculous profit they are going to suck out of our ground.
When the gas is gone, or passe, then what will you have? Royalty checks can’t buy groundwater.
Nov 19th, 2007
Don Young
Pete-
May I suggest to you and anyone one else with an audience that, the time is nigh for speaking out more forcefully against urban gas drilling. The multiple threats that gas drilling bring to our communities are very real. Fort Worth is on a path to your “darker picture” of the future. Every day we delay the dark scenario moves closer. Too many people are suffering from apathy. Many others are resigned, way before this battle is over. I believe that we are still in the early stages and have an excellent chance to save many neighborhoods and force more regulations on this dirty industry. There is a war of words/ideals taking place right now. A PR campaign to win the minds, and leases, of Fort Worth citizens. That is the reason Moncrief helped found the Barnett Shale Energy Education Council, an organization owned and operated by the energy industry to control the information the public receives and sell it as fact. It is an effort to keep people from discovering the truths that you have found. It’s all lies told by liars with a hidden agenda. It’s also an attempt to drown out the information available at FWCanDo.org. We work with other organizations around the country to put the real facts on the table. The facts are in direct conflict with the lies told by Moncreif, the BSEEC, the Star Telegram and the Powell Newsletter. Why do you suppose these multi million dollar companies would be working so hard to get their message across if they weren’t worried about public backlash? Why does Chesapeake spend millions of dollars to plaster their message that gas drilling is “Good for Fort Worth” on buses and billboards? They are worried, my friends. That is why we all must crank up the volume and fire away. People are listening to both sides and trying to make the right decision. We must continue warning the public with a renewed vigor and forceful message. We can’t afford to let up. Thanks for keeping the conversation going.
DY
Nov 19th, 2007
John Peter Smith
Correct me if I’m wrong, but the way I decipher the city’s zoning map, that well is located in an area zoned for either “K - Heavy Industrial” or “J - Medium Industrial.” Again, correct me if I’m wrong, but I believe that those zoning districts are reserved for the most intensive, loudest, dirtiest, types of industrial uses.
You said, “And really, I’m not against gas drilling. I’m not even opposed to urban gas drilling.” Okay, so if you’re bemoaning the location of that well. please point out a better spot in the general area. It seems to me that there are whole lot worse uses that land could be put to without seeking any type of city approval than a gas well.
Nov 19th, 2007
Steve
JPS: love your hospital, but you are missing my point.
I’m not bemoaning the location of the well. Its location is in a very industrial area. However, there is residential within 600 feet, hence the high-impact variance.
However, given what I know now about urban gas drilling, I would not have signed the gas lease that made that well possible. It has less to do with the location and more to do with what gas drilling is doing to our community.
Nov 19th, 2007
John Peter Smith
Animal by-products processing; cement products plant; furnace, blast; forge plant, boiler works manufacture; gas (natural or artificial) manufacture processing/storage; manufacture, processing/ production of hazardous chemicals; metal smelting, reclamation or ore reduction; metal smelting, reclamation or ore reduction; landfill, recycling center, household hazardous waste or waste tire facility; salvage yard; those are just some of the uses the current zoning would allow on that site.
Considering that, a gas well doesn’t seem so bad.
Nov 19th, 2007
Steve-O
Bud Kennedy? Is that you?
Again, not really my point. If you are in favor of gas drilling, that’s your decision. Go in good health.
BTW, recycling center actually does sound a little better to me than a gas well.
Nov 19th, 2007
Bernie
I’ve got to ask, JPS whether you have a gas well being drilled in your back yard?
The noise and light pollution, the Trucks queued up and leaving every 15 minutes, around the clock, for three weeks at a time, the potential dangerous accidents, explosive pipelines cris-crossing the city… all that seems quite a bit worse to me than the land uses you mentioned.
But, like Steve said, that’s not the point; it’s not just about that piece of land. This is a debate that affects the entire city.
Steve mentioned El Paso’s water supply; is anybody following what’s going on in Atlanta? They’re almost out of water thanks to poor planning… and Fort Worth is growing faster than Atlanta. Since it doesn’t look like the City of Fort Worth will ever dredge Lake Worth, we can’t ever use it for water. Oklahoma doesn’t seem too keen on letting us pipe it in from the Red River. Why should we let drillers contaminate billions of gallons of our most precious resource, and then not clean it up so they can maximize their profit margins? Sounds loony to me, but the almighty dollar speaks most loudly to some folks.
How about this for a proposal: If the drilling companies are really trying to be good corporate citizens, as their ad campaign aim to make you believe, why not take on a self-imposed moratorium on drilling in the city. Allow a third party to conduct a full-scale environmental impact study, and adopt the safe and environmentally friendly drilling practices that party reccomends. Submit to regular inspections, ensuring safe drilling.
While this environmental impact study is carried out, the price of natural gas is likeley to rise further, so when the companies resume drilling, they will actually make MORE money. Now this is just a little brainstorm off the top of my head, so I’m sure there are plenty of details to work out… but Chesapeake, what do you say?
Nov 19th, 2007
peteg
Hi John, thanks for replying. This kind of debate is an important part of democracy and important for the future of our community. I have to admit that I hadn’t previoulsy considered what you are saying about what other type of activity could go on in that parcel.
Clearly though, Fort Worth is a rapidly growing city and perhaps zoning needs to be reconsidered as the makeup of the city changes and residential areas encroach on industrial zones. In the process, Fort Worth could consider rezoning in such a way to encourage new, growth industries that reflect the future of the American economy. For example, how about a Biotech instead of metal smelting plant?
Nov 20th, 2007
James M. Johnston
Nov 20th, 2007
James M. Johnston
Well I guess imbedded video doesn’t work so here’s a link to a trailer for a doc that speaks to this issue: http://www.youtube.com/watch?v=-b8WwvQiGVc
Nov 20th, 2007
John Peter Smith
Steve:
Some people don’t feel gas drilling is ever appropriate in an urban setting. That’s fine, they’re entitled to their opinion, and they’re free to try to sway others to their side.
Had that been your stated opinion, I would have continued wandering through the blog-o-sphere without leaving a comment. But you stated that you were not opposed to urban gas drilling. However, when asked to name a more appropriate drilling site in the area, you declined, saying it’s more about what gas drilling is doing to our community. Okay, speaking community-wide, if you’re not opposed to urban gas drilling, what would you consider a good place for gas drilling? An area zoned Heavy Industrial? Agricultural? What?
Bernie:
I’m not aware of any gas well being drilled in someone’s backyard, including mine. For the record, I still own my mineral rights and there are not currently any wells being drilled in the immediate vicinity of my home.
Whether enduring three weeks of noise and light from the trucks and drilling of a gas well is worse than living near a metal smelter or a landfill, I don’t know. It would probably be a matter of personal preference. Years ago I lived under the flight path of Carswell AFB. I got used to the B-52s taking off in the middle of the night, but the neighbor’s dog barking about drove me crazy.
Two points need to be made. First, the city’s Zoning Districts do not intend for anyone to live near land zoned for Heavy Industrial uses. I’m not saying it doesn’t happen, there are situations where things fall through the cracks. However, that is not planned. Further, whether it’s gas drilling or the uses allowed under the Heavy Industrial Zoning, some of which I named, all those uses are rather noxious and offensive. That’s why they are restricted to Industrial Zoning.
Secondly, you mention safety. A valid concern. Again, the city’s Zoning Ordinance specifically allows “gas (natural or artificial) manufacture processing/storage; manufacture, processing/ production of hazardous chemicals.” So anyone could purchase that site, and store hazardous chemicals on it with out obtaining a “high impact drilling” permit, or seeking the permission of the city or the state. It’s already allowed.
Here’s my main thought: Gas drilling is no worse than other uses already allowed in industrial areas. Anyone that would argue that land in the Heavy Industrial Zoning District is not appropriate for gas drilling, is really arguing that there should never be any drilling allowed in the city, anywhere.
As far as your self-imposed moratorium proposal. I have one question. There are hundreds, if not thousands, of men and women drilling for gas, and providing other services to the drilling rigs in Fort Worth. Those guys (and girls) are not cashing big royalty checks, they are working a hard, dirty, job, to provide for their families. Who’s going to make their mortgage payment, put food on their table and clothe their kids while your third-party studies this issue?
Ya’ll have a great evening.
Nov 20th, 2007
Bernie
Clearly I was speaking figuratively when I asked if there was a well in your backyard; I wanted to know if there was one in very close proximity to your home. Thanks for answering the question anyway.
Folks are probably going to have differences of opinion as to which industrial uses are least desirable.
There’s a lot of open land outside city limits to drill while environmental impact studies are conducted. I don’t believe a single worker would lose his or her job.
Oh, and you didn’t mention the simultaneous depletion and contamination of our water resources… any thoughts on that?
As Pete G said, thanks for visiting our blog and taking the time to comment. I think it’s really important that these kind of issues get debated publicly, since the decisions made will likely alter the landscape of our city forever.
Nov 20th, 2007
Steve-O
I don’t want to venture into hypotheticals. The area is zoned industrial. In theory, someone could put a smelter there. I’ll wait for it to happen and fight that battle when (and if) it occurs.
You say the city’s Zoning Districts do not intend for anyone to live near land zoned for Heavy Industrial uses. However, people live a short distance from this gas well. Maybe it isn’t what is intended, but it is a fact.
My preference would be for the City to increase its setback requirements from 600 feet and not grant high impact variances. This is an area that needs to be addressed when and if the city revisits the gas drilling ordinance.
I also believe that gas drillers need a better plan to dispose of waste water than injecting it into the earth under our city. The City’s Director of Environmental Management, Brian Boerner, feels the same way. It’s the gas drillers that need to get with the program on this one.
I believe that gas drilling can be done in zoned industrial areas if that drilling is done with respect to the safety of neighborhoods and the environment. I don’t think that’s asking for very much. No one has to lose a job and there will be plenty of money to be made. Let’s do this safely because this is a very dangerous business.
Nov 20th, 2007
peteg
I read the Cheasapeake Annual Report yesterday. It’s true that company wide, Cheasapeake employs some 4883 hard working folks, many no doubt earn every dollar the hard way. Do the needs of hundreds of hard working folks now outweigh the future safety needs of an entire city?
The other thing I noticed in the Annual Report (under “Other Operating & Financial Data”):
In 2006
Sales Price per million cubic feet
$8.56
Production Expense per million cubic feet
$.85
Production Taxes per million cubic feet
$.31
General and administrative per million cubic feet
$.24
Depreciation, depletion and amortization expense per million cubic feet
$2.53
So, for every million cubic feet of gas that Cheasapeake sells for $8.56, they spent $3.93. That means they are clearing $4.63! Fort Worth deserves a much bigger slice of that pie if we are going expose ourselves to such risks. And Cheasapeake, et al, can certainly afford more expensive waste water disposal/recycling techniques and still make a massive profit. Heck all those hardworking folks in the fields that are putting food on the table, etc, they prolly ought to get a bigger slice too, since thier expenses are only about $1. People are making big money here and that big money is going straight out of town.
Nov 20th, 2007
brandon
$4.63 is not the profit. I see a few items missing from that cost breakdown (which is just operational expenses BTW), primarily among them:
~25-28% royalties
drilling costs
Nov 21st, 2007
peteg
HI Brandon, thanks for commenting. I am not a financial analyst, I only play one on the internet
and annual reports aren’t exactly known for their clarity. Fortunately, the Chesapeake Annual Report is available on their website, so anyone can look at the numbers themselves. We are interested to hear other’s analysis. In any case, as you will see if you read the thing, Chesapeake is making Barnett Shale their number one source of new revenues. It’s very important to them, just as a healthy future is important to our city.
Nov 21st, 2007
John Peter Smith
My point was that someone could put a smelter, or put the property to some other noxious use, without asking the permision of the city or holding any hearings at all. In that case there would be no battle to fight, the war would be over before anyone knew anything about it.
I certainly agree that we have a right and a duty to demand that these gas wells are operated safely. However, in speaking of the safety of gas wells. There are a couple of things people overlook in the discussion.
Railroads
I don’t live in the area of that well, I only drive past there on the way to Ocean Rock or Mellow Mushroom. But isn’t that well separated from the residential by some railroad tracks? Railroads carry tons of hazardous chemicals through our city every day. In many cases, those tracks are less than 100 feet from homes and schools. I don’t believe the neighbors, the city, or anyone other than the railroad, even knows what’s in those railroad cars and tanks. The railroad certainly doesn’t have to ask permission or get any type of permit from the city.
Pipelines
Long before anyone figured out how to tap the Barnett Shale, Fort Worth was criss-crossed by miles and miles of underground pipelines. These pipelines carry everything from jet fuel to petroleum products, to natural gas, generally under high pressure. In some cases, these pipeline are as close as 25 feet to homes. While the city knows where they are located, to my knowledge, the city has no program to inspect, or permit, any of those pipelines. I believe that falls under the jurisdiction of the state.
Both railroads and pipelines can and do suffer mishaps that endanger the public. Yet we’ve become so accustomed to living with them that we hardly notice.
Now I’m not suggesting the city abdicate its authority to ensure the safety of our citizens. However, I do think that in discussing safety and gas wells, some perspective is important, and has largely been missing. Which is safer? Living 600 feet from a gas well, or 30 feet from a 30-year-old, high-pressure line carrying jet fuel? The point is that some people act as though it is impossible to safely drill and produce gas. All the while they are living and working near other things that are just as, if not more, dangerous.
Fort Worth is a very big place. Counting its extra-territorial-jurisdiction, Cowtown stretches into five counties. There is no reason we can’t find plenty of places that are appropriate for gas well activity without compromising the safety our citizens or our quality of life.
Nov 23rd, 2007
Ginny
The city of Fort Worth was built on death–the death of buffalo, the death of cattle, the death resulting from war planes. So maybe it’s ironic that the next boom could result in the death of the city.
Nov 23rd, 2007
Steve-O
JPS writes: “There is no reason we can’t find plenty of places that are appropriate for gas well activity without compromising the safety our citizens or our quality of life.”
This, I think, is the compromise position. Unfortunately, I don’t see anyone in the city moving toward this position.
Nov 24th, 2007
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