Eighth Avenue Showdown Postponed

by Steve-O

If you were planning to be in Council chambers on the July 8 for the high-impact hearing on the Eighth Avenue drilling site, your evening just opened up. A source close to the process confirmed this evening that Chesapeake contacted the city and asked for a postponement.

What this means remains unclear right now, however this doesn’t seem to be a sudden Road to Damascus moment on the part of Chesapeake, this is just RealPolitik. The word going around was that the votes weren’t there for Chesapeake, and we aren’t talking a 5-4 vote. It was going to be a clear majority, if not a unanimous vote, against the permit.

This issue has gotten too hot for the Council and no one, not even Chesapeake’s BFF Mayor Mikey, was willing to stick his neck out when Council chambers would be overflowing with hundred of pissed off residents of Ryan Place, Fairmount, Mistletoe Heights and Berkeley neighborhoods. They were already setting up shuttle bus service to take people to the meeting — not a good sign for Chesapeake.

However, what will happen next is complicated and convoluted.

I’m told that Bill Davis, the owner of the Fort Worth & Western Railroad, is looking at the expiration of his lease with Chesapeake in August, so there is some urgency to make this site happen.

As a result, there has already been some saber-rattling. An email I received from the Berkeley neighborhood association said that Davis indicated that if the site is not permitted, “he will exercise his rights under his ‘heavy industrial’ zoning to maximize the use of the land. Some of his options are to build a ‘transloader station,’ which is an area where cargo is taken from rail cars and loaded onto large trucks; to install a rail switching station to relieve some of the train traffic congestion currently occurring downtown (Tower 55); to build tanks for oil storage; or to dig a limestone pit. Many of those options would also preclude use of the tracks for commuter rail. All would bring increased noise and pollution to our area. None of these uses would require much in the way of zoning or permitting.”

How realistic is this scorched-earth scenario? I’m told by several people that this is unlikely, but things are moving so quickly and changing so rapidly, that I don’t really believe anything can be ruled out yet. And the really crazy thing is this isn’t all gas drillers vs. neighborhoods, there is a healthy measure of Chesapeake vs. XTO in the mix as well. I’ve heard some speculation that Chesapeake would deny XTO the right to drill under the Fort Worth & Western property along Eighth Avenue to allow the folks in Berkeley and Mistletoe to “develop their minerals” from drilling sites east of Eighth Avenue. I’ve also heard heavy speculation that XTO is anxious to sign Davis when his lease with Chesapeake runs out.

Although next steps remain ambiguous, it is clear that Fort Worth has a serious problem with a lack of any comprehensive plan on urban gas drilling. What is transpiring at a glacial pace on the gas drilling task force right now is not developing a comprehensive plan, it is manufacturing political cover for Mayor Mikey and the gas drilling interests. At the end of the process, they will be able to say that they took action, listened to the neighborhoods and implemented a plan to “protect the quality of life in Fort Worth.” But in reality, this entire exercise doesn’t solve anything. As long as Fort Worth lacks a true strategy for drilling sites, pipeline corridors and traffic routes, we will have Eighth Avenues over and over again. The next one is shaping up with the TCU drilling site and if you thought Eighth Avenue brought out the worst in people, TCU will make it look like the teacup ride at Disneyland.

UPDATE, 07.01.08: This just in from a loyal reader: “Information about Mr. Davis’ site being zoned “heavy” industrial is incorrect. The Dairy-Pak building directly East of Berkeley — the empty building with a large for lease sign on it — is zoned “light industrial.” The other area around the building is zoned “PD”, which is planned development. With a PD zoning designation, you have to submit exactly you want to build in your zoning permit application. For example, if you want to zone your land for a mixed-use mid-rise condo, your zoning application has to specify exactly that. So, the question that arises is what exactly is contained in Bill Davis’ PD permit? Some feedback I received indicated the following: everything in “I” (light industrial) and passenger rail activities, and some other rail operation language. Light Industrial zoning certainly does allow some things that residents probably wouldn’t like, but it’s not exactly a lime pit. In fact this description falls under heavy industrial usage.”

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64 Comments, Comments or Pings

  1. John

    As a board member of the Ryan Place Improvement Association, I will say that we passed a unanimous resolution to oppose the drill site at 8th Ave. After several meetings with the neighborhoods, Chesapeake decided to postpone their variance hearing. There are many issues to work out, like:

    * Neighborhood concerns (safety, pollution, noise, pipeline locations);
    * Chesapeake’s proposed plans for the site as well as pipeline and other post
    drilling plans;
    * Fort Worth and Western’s information on future use options for the site;
    * Gideon Toal’s master development plan suggestions and options for the enitre 8th
    Avenue property and rail yard;

    An agreement was reached by all parties at the last meeting that Chesapeake would request postponment of the July 8th Fort Worth City Council drilling permit hearing. The postponement will enable discussions to continue between all parties including an opportunity for the neighborhood organizations to have informative and meaningful dialogue on the aforementioned topics.

    More good news, if you have not heard, Paschal Neighborhood Association has proposed to re-zone the area in and around the railyard. In short, the rezoning effort would:
    1. Change most of the residential area from duplex to single-family.
    2. Change the west side of Eighth Avenue (e.g. Fiesta and Luby’s) from light industrial to neighborhood commercial.
    3. Change Stanley Avenue from medium industrial to light industrial. This re-zoning application (ZC-08-107) will be heard at the Zoning Commission hearing on July 9, 2008.

    You can contact Anita Horky of the Paschal NA for more information.

    And so the saga continues…..

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  2. Chris H

    Not to fan the flames here, but I’m curious. If there’s a unanimous decision to oppose drilling, the why did many of these people sign leases? Or I guess the correct question would be how many did sign?

    If they did sign then how can they be opposed to it? Is not leasing your mineral rights tacit/de facto approval of pursuit of said minerals?

    Main reason I’m curious is because I’m wondering how this is going to play out. I know I miss out on some of the discussion, but I know many of my neighbors signed leases last year before the sales pitch was even finished.

    Is it ok if it’s in another neighborhood? If so what neighborhood? I know one of the other proposed sites in the beginning was the old Texas Steel off Hemphill. If you can’t see it from the Ryan Place arches does that make it ok?

    Again, not trying to start an argument. Please don’t take it that way. I’m just trying to educate myself on what resolutions people want to see. On one hand I hear no urban drilling, but then I hear so many talking about the sign on bonus they got for leasing their mineral rights.

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  3. John

    Chris H,

    Yes, many residents of Ryan Place signed leases to lease their mineral rights. A majority of residents signed with XTO/FW Energy with a well east of Hemphill in a heavy industrial area. Look as it as a vote. A majority voted for a drill site in an “industrial area”, while some voted for the 8th Ave site (with Chesapeake). Unfortunately, many Fairmount residents signed leases more than 2 years ago when they knew nothing of future sites.

    There are no residences, schools or religious institutions with 600 ft of that site. The site on 8th Ave is within 600 ft of many residences and a religious institution. I’m not saying 600 ft safe, but that is the current regulation.

    In fact, I’m against urban gas drilling. But, even if I didn’t sign a lease, there would be drilling. I can’t prevent thousands of people from signing leases. I did, in fact, attend June’s gas committee meeting. I did, in fact, speak to making the regulations stricter in relation to distance, environmental impacts,safety, etc. I would say a majority of people in attendance were against the current regulations and wanted them to be stricter. If we can’t stop urban drilling, then maybe we can make it safer.

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  4. Bernie

    John, did you sign a mineral lease?

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  5. Chris H

    Thanks for answering John.

    I guess in the big picture it doesn’t change much for me, as I’m probably equidistant from both.

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  6. Gary Hogan

    Eigth Avenue was a prime example of a group negotiating in good faith with an agreement included that eliminated that site for XTO who I believe had the surface land use that now Chesapeake wants to use. This tainted of bait and switch. I hope to see the fight continue there and at TCU .
    As we continue down this slippery slope of urban gas drilling / Industry muti million dollar media ” We are the Good Guys ” media blitz all while their landmen knock doors of unlucky short stray winners of pipeline easement through their residential investment in Texas with threats of Eminent Domain, I am continually convimced that the citizens of Fort Worth MUST and BETTER continue to demand the Best protections from our city. An answer is our city has the right to deny access across streets inconsistent with proper planning for pipelines. They also have the right and obligation to protect health and safety. Another answer is AND MAYBE THE BEST OF ALL TO GET INDUSTRY ATTENTION is for more people to consider stopping the leasing frenzy until the industry gets the message that NOT ALL CITIZENS are happy with the approach and sometimes down right reprehensible disregard for doing things right and NOT walking over the people who can in many cases have the least means to resist or fight back..
    Please message your City Council and the Task Force with your ideas, concerns, regarding Urban Gas Drilling in Fort Worth.
    G. Hogan
    G Hogan

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  7. Ross

    Does anybody know exactly what’s going on in the meetings between the neighborhood associations, Chesapeake, the Railroad, and Gideon Toal? An email I got today referenced “Gideon Toal’s master development plan suggestions and options for the entire 8th Avenue property and rail yard”. And I’ve heard some similar things coming out of the other neighborhood associations as well. I’ve got a feeling that Chesapeake and the Railroad are trying to make the neighborhood associations an offer they can’t refuse. My bet is on special/emergency neighborhood association meetings within the next two weeks. This should be interesting.

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  8. Gary, thank you for your comment and your service on the task force.

    John, thank you for your comments and for recognizing the elephant in the room: the question is not whether or not there will be gas drilling in Fort Worth. There is gas drilling in Fort Worth. The question is whether or not there will be gas drilling that respects the safety and integrity of our neighborhoods or not.

    Chris, you raise valid points. It isn’t OK to shift the burden from one neighborhood to another. Out of sight isn’t out of mind. This problem isn’t going away. It’s not just pad sites and wells. It’s disposal wells, air quality, pipelines and traffic. We need laws we can live with. The gas drilling task force can’t and won’t deliver that. A remedy is still needed.

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  9. John

    Gideon Toal was hired by Chesapeake to develop a “master plan” for the site, including a “sound/sight” wall along 8th Ave, parks, etc.

    Yes, I agree with Steve-O. It’s not whether drilling will occur, but how safe is it gonna be. He’s also right when he says the gas committee will probably not make many real changes in the regs even though over 100 people showed and 33 spoke on the issue.

    So, it’s up to the people to fight city council and the energy companies. It may take a 70’s style protest in the council chambers at each variance hearing to keep things right.

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  10. Dan

    Steve-O and Gary Hogan are right in their assessment in my opinion in this instance. Safety is a primary concern and I would hope that Chesapeake would approach this in a manner taking into consideration concerns of local citizens while at the same time fullfilling their lease obligations. I do not think a 70’s style approach sit-in is the answer however. I think we can all act like adults all the way around. Getting hostile towards each other never works. Look at the mess we are in to begin with because both sides on the national level cannot come together on a national evergy plan.

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  11. Ben

    What happened to the alleged threat that Bill Davis made regarding NW/SE rail line access being denied? I think the latest threat by Mr. Davis to block the use of the XTO drillsite would be poetic justice for the people who are blocking the use of the 8th Avenue site!

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  12. Ross

    I totally agree with the general comments about the reality of drilling in Fort Worth and the primary importance of safety in those operations. But in regard to the 8th Avenue site in particular, there seems to have been a shift in the conventional wisdom within the past week. This time last week it was all pitchforks and torches and getting to the council chambers early to get a seat. Now all the talk seems to be about safe drilling and master plans and continuing discussions. I’m not saying this is necessarily a bad development, just that we should recognize what is happening.

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  13. Ross, I agree there has been some movement from both sides toward consensus and that is a positive development that should be recognized. It’s the first positive step toward an approach to urban gas drilling that the people of Fort Worth can truly live with. But it is only one step in a long, long journey, and torches and pitchforks actually played a big part in getting us to this point. If the Council didn’t believe there was a political price to be paid, they would approve this high-impact permit just like every other one that has come in front of them. The current ordinance establishes the setback as 600 feet. But in practice, except for this one instance, it hasn’t worked out that way. And setbacks are just one issue on a long list.

    I believe there can be gas drilling we can live with in Fort Worth. However, it will require the gas drillers negotiating in good faith and getting neighborhoods involved in establishing a policy that establishes what is acceptable and what is not. The current gas drilling ordinance doesn’t do it. The gas drillers and the Mayor had an opportunity to take this step and they cynically manipulated the process.

    We can still get there. But not if all the people who got involved in the Eighth Avenue process go home and stay home after this issue is resolved.

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  14. RidgeD

    Speaking of TCU, I overheard a clerk in the Dollar Store located in the Westcliff shopping center telling another customer that Chesapeake is trying to buy the center. That may or may not be a rumor based in fact. What is fact is that urban mineral owners are willing to take lease bonus dollars but some who take that money don’t want urban wells drilled in their neighborhood. Hypocritical? Maybe. But what is hypocritical is concern for the effects of climate change and not speaking out against any further development of co2 producing energy sources. The complete combustion of gasoline, diesel, coal and natural gas produces co2 as a byproduct. Assuming that only co2 and water are allowed to escape into our environment from the production of energy from hydrocarbons, we are still fouling our own nest. If we are true to ourselves and our kids and grandkids, we will speak out against further development of fossil fuels and speak for Manhattan- moon landing magnitude projects to develop alternative sources of energy that do not produce greenhouse gases.

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  15. Ross

    Steve-O – I basically agree with what you are saying. Certainly Chesapeake’s change in attitude is welcome. I guess my point is that until this week, we (members of the effected neighborhoods and citizens generally) were told, with many passionate arguments, that this drill site was an absolutely horrible idea and we should oppose it vehemently. And we did so. Now it seems that the neighborhoods’ opposition was just a tactic used to bring Chesapeake back to the negotiating table. If that was the strategy all along, that’s great, but when the arguments were made against the site, this larger strategy was not brought up. Nor were any qualifications made in arguments against the site – I didn’t hear anyone say “Ya know, the water trucks, pipelines, and pollution are really bad, but if we can just get Chesapeake to do X, Y, and Z along 8th Avenue, then maybe this is something we can live with.” If this was the strategy all along, then we deserve an explanation.

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  16. Well, I’m against the site entirely, so I can honestly say my position hasn’t changed. :)

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  17. I see where you are coming from, Ross. You ask an interesting question that I want to give a thoughtful answer to. Unfortunately, I don’t have the time right now. I’ll try to write something soon. Thanks for your comments.

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  18. John

    Ross,

    The neighborhood leaders are just acting like adults and showing good faith in talking with Chesapeake. All the leaders are aware of all the “bad” stuff and will ultimately do right by the residents of each of those neighborhoods. I am absolutely, 100% against the site as well.

    I don’t think there is a larger agenda and its absurd to think that those leaders would do that to their own neighborhoods.

    My hope is that Chesapeake will do the right thing and withdraw the variance completely. But I think Bill Davis would love that b/c he would get to sue them and make even more money.

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  19. Chris

    To Ross,
    I’m in agreement with John. Just to make one thing perfectly clear, there is no “agenda” within neighborhood leadership to sell anyone out or to do a bait and switch on you or their neighborhoods. We live here. We raise our families here. Some of us are very very close to the site in question, some are not. I can assure you Tommy Lee Jones hasn’t offered me any perk to roll over for Chesapeake. ( I am not presently in a leadership position in any neighborhood organization - I was a while back)

    But as John says we can converse with Chesapeake and discuss things intelligently. They really seem to want neighborhood buy-in. Are they going to get it? Somehow I doubt it - unless they can convince Sue Richards (Invisible Girl-Fantastic Four) to do her thing and make a force-field around the drill pad that also keeps out all noise from the frac-process and completely assures the safety of all residents.

    But, can everyone get together to talk? Sure. Talking’s always a worthwhile process that reasonable people should engage in. If nothing else, we can all politely agree to disagree and the neighborhoods will not support drilling - and then I would hope that Chesapeake would understand that people really really really don’t want gas wells within 200-300 feet of their homes in the middle of the city(!For cryin’ out loud)

    And no, the head of the various associations don’t have an agenda to dupe you and weren’t trying just get Chesapeake back to the table for some more dealing. If you’re feeling “burned” or “used” by the fact that your neighborhood association reps are talking to the Chesapeake, I would submit to you that dozens of people have been actually working hard on this issue for over a year to actually understand it and determine what can be done about it.

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  20. Ben

    John,

    On what grounds could Davis sue Chesapeake? They have probably spent $50,000 just trying to get the variance. If anything, he would sue the City of Ft. Worth for inversely condemning his land.

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  21. Ross

    John and Chris,

    To begin, let me say I never meant to impugn the trustworthiness of the neighborhood associations’ leadership, and I apologize if I came across that way. In my experience they are great people who probably do not get enough credit for their hard work on our behalf.

    If, as you imply, these talks are just a courtesy and will lead to a better understanding between all parties involved, that’s great. I think that might raise the issue of how there could be good faith talks if the neighborhoods already know they can’t be swayed, but that is neither here nor there. I guess the whispers I’ve heard have just given me a different take on the situation. I get the impression that Chesapeake/GT put something on the table that is worth deliberation, and the continued talks are necessary to hash out some more details before the neighborhoods can give it further consideration. Could this impression be entirely off base? Possibly, maybe probably. But given the change in tone during the last week I don’t think it’s imprudent to bring it up and ask for a more thorough explanation.

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  22. chris

    Chesapeake is NOT trying to buy Westcliff Shopping Center. That rumor has been going around for months - some well-meaning folks mistook Westcliff for SOUTHcliff, which Chesapeake DID buy.

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  23. Chris

    Ben -
    If a property owner enters an agreement with an XTO or a Chesapeake and the agreement states they will drill or apply for a permit by such-and-such date, and the date comes and goes, then the property owner (mineral owner) would have grounds to sue.

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  24. Let me throw a new concept on the table: What if Chesapeake bought all the properties within 600′ of the Eighth Ave. drill site, essentially buying their waivers. Not 601 ‘, but exactly 600′? Would that be OK with everyone in the neighborhood? But of course not.

    I ask this rhetorical question because, that is precisely what is happening in east Fort Worth at a potential drill site adjacent to Tandy Hills Natural Area. This privately owned site is one of the last remaining pieces of original, FW prairie. It is, perhaps, more incredible than Tandy Hills, itself. Chesapeake wants to build a road through it and drill several gas wells - maybe compressor stations, too.

    This site is also adjacent to and part of the West Meadowbrook neighborhood. The Carter Ave. pipeline that Chesapeake wants to run through 4 blocks of front yards (http://startelegram.typepad.com/barnett_shale/files/eastside_neighbors_oppose_natural_gas_pipeline.htm) would connect this site with the one at I-30 and Riverside.

    I say all this to remind and plead with southside residents to come support your eastside brethren and sistren when the time comes. That time will be in mid July at a public meeting TBA. This site is our line in the sand. We need you to support us as we have and will continue to support you.

    One lesson we should all get from urban gas drilling is that, WE CAN NO LONGER BE NIMBY’S. It’s a disgrace that our town has come to this, but if we have to live with gas wells we must work together, for all neighborhoods to, not just limit the damage but demand and end to the tyranny of gas extractors. One reason this happened is that, the drillers divided and conquered us, one bonus check at a time.

    I agree with John, above. Maybe we need a city-wide, 70’s style protest, whatever that means. I imagine he means a mass demonstration of resistance. If this issue does not cry out for an act of civil disobedience, I don’t know what does.

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  25. Ben

    Chris,

    If this were true there would be hundreds of such lawsuits, basically every time a lease expired. I have never heard of such a suit, nor have I seen a clause in any lease that said anything would happen (other than the lease terminating). If the lease was not expiring you could also declare force majeure, which is what Chesapeake did in Haltom City when they could not get a permit.

    http://en.wikipedia.org/wiki/Force_majeure

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  26. Ben:

    The people I have spoken to close to the issue with the Eighth Avenue drilling site have said just what Chris said: Chesapeake contends they must apply for a permit or they’ll be sued by Bill Davis.

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  27. The following comment was emailed to me. It is not my own, but I pass it along for discussion purposes:

    One fact that I have not seen pointed out is that Chesapeake is requesting to drill
    18 (EIGHTEEN) wells at the 8th Ave. site.

    If you attended the first meeting on gas drilling at Daggett Elementary where
    Chesapeake presented their plans for 8th Ave. you will remember that at that time
    they were going to request 10 (ten) wells. At that time ten wells meant an
    approximate time frame of 450 days or approximately one and a half years. Now IF
    the 8th Ave. drill site is permitted the neighborhoods would be looking at
    approximately two years and three months of drilling. Two years of noise. Two
    years of trucks on 8th Ave. Two years of fracing. Two years of misery for the
    surrounding neighborhood residents.

    Another interesting “fact” that has not published is that Chesapeake has $8.7
    million to spend on the 8th Ave. drill site. Why so much? Because the 8th Ave.
    drill site is going to be their “urban drilling well site model.” This will be
    their “showplace” to prove to the City and the Nation that “urban drilling can be
    done and be beneficial to the surrounding communities.”

    XTO has certainly kept quite on the 8th Ave. drill site uproar. Is there a reason
    for this? Too busy acquiring Hunt Oil? Or could it be because there is nothing in
    the neighborhood XTO lease agreement that prevents XTO from selling their leases to
    Chesapeake? Or will XTO buy the drill site from Chesapeake? They would only have
    to wait till 2010 when the leases expire. I can’t image Chesapeake spending so much
    money on eighteen wells when they will only drill north, west, and south - leaving
    out everything to the east. There will be some form of an exchange between these
    two companies - and the neighborhoods who thought that they had “protected”
    themselves from gas wells in their backyard will learn that they were fools.

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  28. John

    I will be there, Don, when the time comes for the public hearing for the Eastside site. It may be more of a travesty than the 8th Ave site. Tandy Hills and the neighboring grasslands is irreplaceable native prairie. Once it is gone, it’s gone.

    However, you must return the favor when the 8th Ave site comes up for hearing again.

    I hope Mayor Mikey and the rest of council is reading this site and listening to most of FW when deciding on the new regs. I know Joel is on our side.

    Don, I’m buying my pitchfork tomorrow for the 1820’s style Frankenstein mobbing of Mayor Mikey!!!

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  29. Chris

    To Steve’s post.

    The person who’s email you’ve posted has some extremely important points - most importantly that the original plans called for many more wells than 2. This is bad. I think the math is a little off, however, but the point of 2 years of inconvenience (to put it mildly, and please don’t rip me apart for thar word choice) - it’s probably pretty close to accurate. Either way it’s a whole lot of frac-ing and a whole lot of trucks and a whole lot of risk to introduce to nearby homeowners.

    But I’m a little concerned/confused by the latter part of the email that says those who signed leases and thought they were protected were fools. Just so that everyone understands, the leases offered by XTO for the neighborhoods surrounding 8th contained language that specifically prohibits a high-impact well being built adjacent to the neighborhoods. (In the interest of full disclosure, I signed one of those, so I may, in fact, be a fool)

    By signing, you were removing your tiny acreage from the acreage available to the 8th Avenue pad site, thus limiting the viability of the pad site.

    Does it specifically “protect” you from a well in your backyard? No, it does not because the acreage of a home is tiny compare to the acreage of the railyard and the other properties being pooled for the 8th avenue site. But, if XTO were to buy my little lease from Chesapeake, they would be buying a lease that specifically prohibits drilling in a high-impact area, so they would have bought an agreement that prohibits the very wells in question. That’s kind of the purpose of having the language in the lease.

    Now of course, if these leases expires becuase our minerals haven’t been exploited, then we’re back to square one.

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  30. Ross

    Ben – I don’t understand the talk about Davis suing Chesapeake either, though I’ve heard the same things as Steve. My understanding has always been the opposite - that usually a leasee wants the lease to expire so they can go out and sign another lease with another bonus, and it’s the oil company who always wants to begin production to keep the term of the lease going. There must be something we are missing. Or they could just be lying.

    I agree with Chris’s take on the XTO leases. It seems that Chesapeake would be bound by the terms of the lease even if they bought them from XTO. I would also be curious about the $8.7 million figure in Steve’s Deep Throat email. To my mind, it would take a lot more than $8.7 million in improvements along 8th to make any headway with the neighborhoods.

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  31. Bernie

    Unfortunately, signers of the XTO leases were led to believe they were making the 8th Ave site not viable, when that was never true.

    I spoke to many at that time who believed that they were guaranteeing the 8th Ave site could not be used at all. Nobody at either of the two Neighborhood Association meetings I went to told people that there was the possibility that Chesapeake could still use the site to produce different minerals. (I wasn’t at your meeting, Chris… did anyone explicitly explain this to your members?)

    Because the neighborhoods I visited omitted this, nobody believed me when I tried to explain that Chesapeake could still drill from that site, regarless of their XTO lease signing party. Oh well.

    Chesapeake always had access to the site, and all the leases meant was that they couldn’t produce Berkeley, Mistletoe, or Ryan Place minerals from that site. Nothing was ever in place to prevent them from drilling North or South.

    Horizontal drilling is a bitch. Even if nobody in a neighborhood sign a lease, they might have to deal with a drilling rig that is producing others’ minerals.

    The only ironclad ways to stop drilling in your neighborhood are either going to be city regulation or divine intervention. Since I’ve learned not to count on the former when it comes to the Barnett Shale, I’m going to keep hoping for the latter.

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  32. Chris

    To Bernie -

    I see your point now. That never occured to me that people might’ve actually signed a lease thinking that action, in and of itself, was going to keep a well from going in on 8th. Anytime I talked to someone about it I made sure to discuss the fact that it wasn’t like we were stopping the drilling outright, but just removing our acreage from any activity on that site - and this might be a difficult concept for some to grasp.
    Was it actually mentioned at the BPA meeting? I really thought it was - but if it wasn’t at that one particular meeting, I would certainly contend it was discussed at some point in some form of communication about 8th avenue. But I’ve been learning about the issue and discussing it for so long now, it may have not been mentioned and I would’ve thought it had been.

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  33. Ben

    What if Chesapeake bought the XTO Leases & additional land to get around the need for the high impact permit? Would that make the 8th Avenue drillsite acceptable under the terms of XTO leases?

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  34. Chris P

    Ben,

    My answer is no. Here is some language from an XTO lease, “lessee is prohibited and shall not establish a drill pad site on land bordering the street of Eighth Avenue between the two subdivisions nor bordering the same two neighborhood subdivisions of Berkeley Place and Ryan Place. Any such action by lessee to utilitze any 8th Ave. drill site location shall immediately serve to void this lease in its entirety…”

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  35. Ross

    UPDATE: Fairmount N.A. is having a special meeting about this site next week. Are any other neighborhoods having special meetings? Apparently Chesapeake employees will make the pitch themselves and then answer questions. I assume that after this meeting or at a subsequent meeting the association will have internal discussions based on what is presented and then take a vote regarding the association’s stance on the variance. It seems like they will have to come up with more than just reassurances about safety, noise, and pollution to have any chance of swaying opinion. Should be good times.

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  36. John

    The Ryan Place Chesapeake informational meeting is July 21st and is only open to RP residents. The Fairmount meeting is on July 24th and is only open to Fairmount residents. Berkeley is doing theirs on Tuesday.

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  37. Chewy

    Ross - The Fairmount N.A. passed a resolution unanimously at the June General Membership Meeting by it’s members to oppose Chesapeake’s request for a variance. Chesapeake asked for this meeting with our Association (like others) and we complied. We do feel it’s appropriate for Chesapeake to have a direct dialogue with our members related to this.. Chesapeake is footing the bill for this and it’s not sponsored by FNA at all. We are simply communicating Chesapeake’s desire to meet with our members directly.

    At the July General Membership Meeting we will ask if there is any discussion or if anyone would like to make a request to change our current resolution. If there is no discussion or requests then our current resolution that was passed unanimously will remain in place.

    The FNA will not make a recommendation either way but will simply open it up for a discussion and vote if needed.

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  38. Ross

    Sounds good. LIke I said before, should be good times.

    But what I’m really curious about is what Chesapeake is putting on the table. I mean, are they just going to offer to write the neighborhood associations a check? How much would it take to make a difference? More likely, they will outline some improvements along 8th Ave., but what?

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  39. Chewy

    Ross - All great questions that can’t’ be answered right now. It’s quite obvious Chesapeake is interested in what it would take to win over support from the neighborhoods which is the purpose of the meeting.

    They haven’t officially put anything on the table right now as far as FNA is concernced. The notes from our representative who was in attendance at the neighborhood leaders meeting will be printed in our monthly newsletter that will be out in a couple of weeks so you can see what was discussed at that meeting.

    All of this has caught us by surprise a little bit and our intentions are to be completely transparent with information to our members.

    As it stands right now we have a resolution that was unanimously passed by our members in opposition to the variance so that’s our official stance when it comes to Chesapeake and drilling on 8th Ave.

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  40. Ross

    Chewy –

    Coming from someone who, I assume, is part of the FNA leadership, your responses are measured and thoughtful, just as they should be. But I’m sure you also realize that residents of all the affected neighborhoods are engaging in wild speculation regarding Chesapeake’s plans. For example, I was at a luncheon yesterday where three or four members of affected neighborhoods were openly discussing what they would need to see done to 8th Ave in order to change their vote. Most of this discussion was about creating barriers between the road and the rail track and the beautification and development of the area west of the 8th/Elizabeth intersection. I piped in to accuse these folks of selling out, and was asked what people in the FNA would do if Chesapeake offered to buy the Victorian Inn and other problem properties along Hemphill and restore them XTO-style. I did not have a good answer.

    I just think it is important to recognize that these types of serious discussions are taking place in the community, and that while some may feel that the talks with Chesapeake are just a courtesy, my anecdotal experience is that residents of the neighborhoods are giving this issue serious consideration.

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  41. David AKA Rico

    Ryan Place had their meeting with Chesapeake last night. The presentation can be found at the link

    http://historicryanplace.org/RPIAGasDrillingINFORMATION.html

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  42. John

    Regarding the 8th Ave site, CHK has hired Gideon Toal to make sketches of what the railyard could look like if we agree to the variance. Key word here: could. There is no contract, there is no promise from FWWR that they would agree to this, there is no promise from whoever owns the DairyPac plant…. I would hate to see the people not fight the variance thinking that there will be all sorts of improvements when there will only be broken promises. Like Joel Burns said at the meeting, don’t divorce yourself from the process b/c you think its a done deal or that its been postponed, or that there are many other people that will fight for you. Joel is still against it. I have to ask what are the advantages of drilling for gas on 8th Ave? I know of some disadvantages!

    At the Ryan Place meeting on Monday night, Julie Wilson said they would be asking for 2 wells in their permit to the city, but in other meetings with neighborhood leaders, she said she would be applying for a pad site, which could accommodate up to 18 wells. Which is it Julie?

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  43. Ross

    Haven’t most residents of the affected neighborhoods agreed in principle to allow drilling at this site, and now it’ s just a matter of getting further details and commitments from CHK and FWWR? Everything I’ve heard out of these meetings has been complaints about the firmness of the plans – I haven’t heard anyone say that they will oppose the site even if CHK and FWWR are contractually committed to make the proposed improvements.

    I guess we know our price.

    And to be clear, I basically agree that if actually completed, the changes to the property per the sketched from GT would be a net benefit to the neighborhoods. But I do not come to this conclusion easily, nor without feeling a little dirty.

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  44. John

    Not by a longshot. A majority of residents at the meeting are still against the project, with the next set of people agreeing only if a legally binding contract stating what will happen to the railyard and committing any other owners (if the wells are sold) after CHK to the same commitments. A small number of people support the project with no stipulations. I can only speak for Ryan Place and the attendees of the meeting.

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  45. @ Ross — No, every resident of Ryan Place, Bluebonnet Hills, Mistletoe Heights, and Fairmount who signed the “joint neighborhood” lease with XTO did it with the VERY SPECIFIC stipulation that the well site COULD NOT be on the 8th Ave. site.

    I have a feeling that a lot of residents view this the same way that one might view any other negotiations — They’d rather get what they can out of an overall bad deal than be completely shut out and get an even worse deal.

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  46. Ross

    Pete – I agree that people are trying to make the best of a bad situation. And that is why there will probably be a drill site on 8th Ave.

    John – I can’t argue if you know the actual vote. I guess I am just reading tea leaves. Whatever the actual numbers are now, I think a consensus will form around the second opinion you mentioned. I could be wrong and won’t necessarily be disappointed if I am.

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  47. David AKA Rico

    I think that Ryan Place residents were disappointed that Chesapeake could make no solid guarantees of improvements and had a dismissive attitude toward safety concerns. They failed to address questions of truck traffic and most of their examples of “urban drilling” were areas with few residences.

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  48. John

    @ David AKA Rico
    Yes, some of us were disappointed. No one asked the really tough questions re: rig, well and pipeline safety. I did however, include those types of questions in an email to CHK for a FAQ for their and our website. I hope they answer truthfully.
    pla
    They were somewhat evasive, claiming that all urban drilling can be beautiful, attractive and conducive to urban living. Trucks are going to be minimal after the first 3 days, they landscape ( the “landscaping” I saw at the Trinity Trees site was mostly non-native, 2 inches diameter trees, hardly a 50 year old pecan).

    I have heard from RP residents who attended a tour of well sites in various stages of development. They said the wells were very quiet on the outside of the walls, and quite noisy on the inside. Apparently the noise can be mitigated. But I continue to go back to safety, blowout, blowups, explosions, they say for the 1,100 wells they’ve drilled, no accidents have occurred. Well, that’s only 1,100 wells. Its still so new. There’s no track record!

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  49. David AKA Rico

    @ John
    It was extremely likely that the questions were submitted, but not asked. Keith Head seemed hesitant to ask pointed questions, selecting those with a broader, more general nature (softballs). I only had one of four questions read during the meeting and it was the only one that questioned FWWR instead of CHK.

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  50. Ross

    Re: tough questions. What were the tough questions that weren’t asked/answered? I ask with the thought that maybe some of them could be brought up tonight at the Fairmount meeting by readers of this site. I expect the question-askers at this meeting will ask plenty of very pointed questions.

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  51. David AKA Rico

    @Ross
    Two questions that were posed, but not answered adequately by CHK were “Where are the trucks going to queue waiting to enter the wellsite?’ and “What other locations have you drilled with the population density here?” The former was answered with “We don’t know’, the latter with “Oh, we have hundreds” but could give no examples that were appropriate. Other questions, Is $300,000 adequate for road repairs? Does that include possible damage to fragile water mains underneath 8th Ave? Is the landscaping that is proposed going to be allowed to die like the site at I30 and Riverside?

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  52. David AKA Rico

    As to rig and pipeline safety, all questions were dismissed with the explanation that “gas disperses” unless in a confined environment. They even had a nice slide of helium balloons being released to demonstrate. Maybe it was only me, but I felt the presenters were a little condescending with their answers.

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  53. Ben

    We’ve had people die in Cleburne and evacuated in McKinney because of residential natural gas pipelines, yet no one seems to be asking for a moratorium or retrofitting their homes for safety reasons. If we are going to make the world a safer pace then demand that Atmos fix all of their aging pipelines & hand dig all underground utility work! As far as I can tell natural gas is not a necessity, so it must be a money issue not a safety issue.

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  54. Actually, Ben brings up a good point. The safety issues that he brings up have actually been extensively reported by WFAA on an ongoing basis and I think Brett Shipp even won a Peabody Award for his reporting on this. It points to an important issue — the Railroad Commission has been aware of these pipeline issues for 20 years and haven’t done anything about it. The precedent has been set in Austin not to rock the boat with anyone in the gas industry on safety. They protect the industry, not the people of Texas.

    And it is a money issue. I’m sure that actuaries calculate which is less expensive: repairing the infrastructure or paying lawyers and settlements when a accident occurs. Not a lot of comfort if your house is the one that is blown up.

    We should insist on safe pipelines, period. But until Texans change the Railroad Commission, expect more of the same.

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  55. If you want legitimate answers to tough questions, do not Ask Chesapeake or the BSEEC. They will just tell you that “Charmin is, indeed, softer than Scott.” You’ll have to work a little harder than that. You can start with these sources for factual info on health, safety and environmental effects of gas drilling:

    http://www.earthworksaction.org/oil_and_gas.cfm

    http://pipelinesafetytrust.org/

    http://www.endocrinedisruption.com/

    http://www.nrdc.org/land/use/down/fdown.pdf

    http://txsharon.blogspot.com/2008/07/chesapeake-has-too-many-environmental.html

    More Links at: http://fwcando.org/links

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  56. RP

    I haven’t read every comment above, but I must reply to some comments by Ross about “changes in strategy” or “failure to explain the overall strategy” or “pitchforks was only a tactic”, etc.
    The only thing that has occurred in the way of possibly changing any attitude about opposition to the 8th ave. pad site is that CHK has reached out to approach the surrounding neighborhoods to explore whether there is any way for them to address the community concerns about that specific site and possibly avoid neighborhood opposition. And the respective neighborhood associations have simply agreed to listen. No one has changed their concerns about the site, nor manipulated any opposition emotions as a tactic to solicit anything from any company. That accusation is simply conspiracy-type speculation born of lack of information or, quite frankly, common sense. The simple facts are that the company has aobvious goal, namely to drill, and they know they face significant opposition. They also know that much of that opposition is based in fact and some in fantasy or similar uninformed speculation. So what are their options? Push it to a fight and just see who can collect the 5 council votes needed? Would that fight, win or lose, be good corporate strategy? Or would it be smarter to explore the details of the opposition and whether it is within their physical power and financial ability to address those details to the satisfaction of the opponents and possibly avoid the fight. It may not be possible, but who can say there is anything wrong with trying, or with the concerned opponents being willing to listen?

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  57. Ross

    RP –

    My comments from more than three weeks ago were made just after the announcement that the July 8th hearing was postponed by mutual agreement of CHK and the neighborhoods. Perhaps the disappointment of not getting to participate in some activism got the best of me, but given the rhetoric that had been going around just the week before regarding this drill site, I did think it odd that all of the sudden everyone decided to play nice. If you had read all the subsequent comments, you would have seen that several people made points very similar to yours – though they did neglect to comment on my lack of common sense – and I responded by apologizing if my posts seemed to