Barnett Shale

UPDATE:Congress delves into hydraulic fracturing, companies say they used diesel

UPDATE:

A congressional committee has requested information on the chemicals used in hydraulic fracturing, setting up what looks to be a showdown over the technology used to extract natural gas from the Barnett Shale, the Marcellus Shale and other gas-bearing formations.

Meanwhile, two major oilfield services companies say that they've used diesel fuel and other dangerous chemicals to fracture wells, according to documents released by the congressional Energy and Commerce Committee.

Hydraulic fracturing is a process that involves injecting a mix of water, sand and chemicals into the gas-bearing rock formation under extremely high pressure. The pressure causes a web of tiny cracks, which allow gas to escape. 

Two major oilfield services companies said that they used diesel fuel during hydraulic fracturing, violating an agreement between the companies and the EPA. BJ Services said it used 1,706 gallons of a diesel based slurry on two coal bed methane wells in Arkansas and Oklahoma, according to documents released by a Congressional committee. Halliburton said it used 807,000 gallons of fluid containing diesel at wells in 15 states. ( Read the story here, from Energy & Environmental News: Two oil-field companies acknowledge fracking with diesel -- 02-19-2010 )

In a memo, U.S. Rep. Henry Wasman also says the companies used fracturing fluids containing benzene, toluene, ethylbenzene and xylene -- all of which are known carcinogens. BJ Services admitted that some of the practices violated the agreement with the EPA.  Hydraulic_fracturing_memo

The gas industry has used hydraulic fracturing for decades, and insists that it's safe. Some Texas residents, though, are worried about the potential for water pollution. 

There's also the question of how to dispose of used fracturing fluids. ln Texas, operators prefer to use injection wells, which can potentially leak and cause water pollution. Fort Worth moratorium on injection wells, and city officials are working with the gas industry on recycling the fracturing fluid.

Read below the jump to see the news release from the House Energy and Commerce Committee. We've also got reaction from the trade publication Energy in Depth and from U.S. Rep. Diana Degette, who is sponsoring a bill that would impose regulations on hydraulic fracturing.

-- Mike Lee

Dish mayor, industry pub trade words over air pollution

Energy in Depth, an online newsletter put out by the natural gas industry, called out Dish Mayor Calvin Tillman in its latest issue.

The e-letter says Tillman's support for air testing and his ties to an environmental group prove he's biased against gas drilling, and doesn't care about the jobs and economic benefits that drilling could bring to upstate New York. Tillman was in New York this week, talking to residents about the potential dangers of gas drilling.

Tillman fired back, saying EID is "terribly mistaken."  Dish, a Denton County town of about 300, has been at the center of disputes over toxic fumes from gas wells and compressor stations, and Tillman has been raising Cain with state and federal regulators for nearly two years.

Read below the jump to see the full exchange. We've confirmed the text of the responses with Tillman. The only thing that's missing are the correspondents' phone numbers and e-mail addresses.

-- Mike Lee

Railroad Commission Chair urges operators to step up maintenance

Victor Carrillo, the chair of the Railroad Commission, said operators will be urged in a monthly letter to keep up with maintenance on piplines, tank batteries and other facilities, in order to cut down on potential air pollution.

"We are essentially telling oil, gas, and pipeline operators that
they need to step up their efforts to ensure they are conducting their
business in a safe and environmentally friendly manner," Carrillo said in a news. "If a valve is leaking, fix it; if a thief hatch is open, close it."

Air pollution, particularly in the Barnett Shale gas field, has been an increasingly hot topic for the Railroad Commission and other state agencies that regulate the oil and gas industry. Fort Worth and other local communities are paying for their own air tests to determine the extent of toxic emissions from gas wells and related equipment. Fort Worth alone has 1,000 gas wells within the city.

Carrillo is up for re-election this year. Read below the jump to see his full news release.

-- Mike Lee

Update: Dish votes on moratorium

Update: Mayor Calvin Tillman says the three-member town council unanimously approved a moratorium on gas drilling inside Dish for 90 days.

"It is clear that the State of Texas is not going to take appropriate action to protect the citizens of DISH; therefore, it is up to the local municipal government to take these steps," Tillman said.

The moratorium only applies to the town, which is roughly two square miles in Denton County. Tillman said most of the compressor stations that have been blamed for the town's air pollution problems are just outside the town limits.

 Dish has been the epicenter in the debate about the potential hazards of natural gas drilling in the Barnett Shale. The town of 200 paid for its own air tests, which found high levels of benzene, apparently coming from a large complex of compressor plants that process gas from across Norh Texas and prepare it for transport to other parts of the country.

Read more about the town's air pollution travails here http://startelegram.typepad.com/barnett_shale/2009/10/pair-of-studies-link-gas-drilling-to-air-pollution.html

or read below the jump to see Tillman's news release on the moratorium.

-- Mike Lee

NETGLO neighborhoods back Chesapeake lease

Residents of neighborhoods in northeast Tarrant County are moving toward executing a final Barnett Shale natural gas leasing agreement with Chesapeake Energy after having overwhelmingly approved the proposed terms in a Saturday election. Nearly 95 percent of the 1,591 households voting cast ballots in favor of the leasing deal, said Doug Inscho of Keller, chairman of the research team for the Northeast Tarrant Gas Leasing Organization (NETGLO). It comprises about 40 neighborhoods in Keller, North Richland Hills and a small portion of Colleyville. The lease proposal calls for a bonus of $5,250 per acre for a three-year primary term, with a $2,500 bonus for an optional second two-year term. The royalty rate would be 25 percent.

Inscho said he believes the proposal received lopsided approval because “people looked at the terms that were offered and it certainly is better than the current market rate...what companies are offering just going door to door.” Some recent offers have been for bonuses of only about $1,000 to $2,000 an acre and a royalty rate of only 20 percent. Inscho said he believes that northeast Tarrant residents also backed the lease proposal because they “were interested in moving on...they’ve been dealing with this, waiting and waiting and waiting, for almost a couple of years.” The next step, Inscho said, will be to meet with Chesapeake officials and see what follow-up actions are needed to move toward getting leases with individual property owners executed.

-- Jack Z. Smith

City to pay for more air testing, may lead to rewriting of gas drilling rules

Mayor Mike Moncrief announced Tuesday that he wants to use city revenue from natural gas drilling to pay for more extensive testing for air pollution around well sites in Fort Worth.

If there's evidence of a pollution problem, the City Council may be willing to rewrite the city's natural gas drilling ordinance to further protect residents.

"If the ordinance needs to be rewritten, I believe the council and the mayor are ready to do that," city spokesman Jason Lamers said.

Fort Worth sits over about 6 percent of the Barnett Shale gas field, and there are more than 1,000 active wells inside the city limits. Many of them are close to homes  and businesses, and residents have become increasingly concerned about the potential danger from air pollution, particularly for homes close to wells.

The announcement came less than a week after the Texas Commission on Environmental Quality announced that it found high levels of benzene at one in five natural sites in rural areas of the Barnett Shale. (Read more on the TCEQ's announcement here.