Barnett Shale

Footprints in the shale?

Don Young, whose organization FWCanDo opposes urban gas drilling, applauds an effort by the University of Texas at Arlington to measure its carbon footprint.

"This study should help provide a baseline to gauge the effects of urban gas drilling on air quality in the Arlington area," Young writes in a blog posting.

He called on Texas Christian University and the city of Fort Worth to do the same thing.

Here's a link to a UTA blog with more information about the carbon footprint.

http://blog.uta.edu/sustainability/2008/01/18/ut-arlington-carbon-footprint-analysis/#respond

-- Mike Lee

(Photos: Don Young and Linda Yarbrough, and their Just Say No campaign)

Fielder Road Baptist Church considers gas lease

Check out Paul Bourgeois' report in Friday's Star-Telegram for more on the gas action in Arlington:

• Fielder Road Baptist Church says it's talking to a gas exploration company about drilling on its big central Arlington campus. Executive pastor Michael Wierick says the welfare of church members and the church's neighbors are of foremost importance. The church has a preliminary feasibility study underway, with results expected back in a few weeks. "We have 1,200 homes around our church and we want to make sure it's good for the community," Wierick said. He declined to identify the drilling company or say how much the church might benefit financially. The most likely well location would be a large parking lot on the eastern edge of the property, between the church office building and the Arlington Independent School District administrative offices, he said. He also said a well might not be possible, given the city's ordinance that requires a 300-foot buffer between a well and other buildings.
• The Arlington Council is considering doubling the setback requirement to 300 feet, although some wells might be allowed closer if the drilling company gets approval from at least 60 percent of property owners.
• The South Davis Neighborhood Association says homeowners are being offered lot bonuses that total between $500 and $700, plus 20 percent royalties. The neighborhood is bounded by Fielder Road, Cooper Street, Pioneer Parkway, and Park Row Drive. Charla Hawkes Price, a Realtor who lives in the neighborhood, said lot bonus offers are averaging $3,000 per acre. The neighborhood is organizing an Oct. 15 meeting to discuss what to do next. Carrizo Oil & Gas, which recently signed up a well site at the University of Texas at Arlington, is a primary player in central Arlington leasing.

Click here to read Arlington's gas drilling ordinance.

Click here to read the details of UTA's deal with Carrizo and a Q&A from university officials.

-- Scott

(S-T photo: EggFest, Fielder Road Baptist Church)

Few rules in lease negotiations...

This is a general response to the point about different neighborhoods receiving different lease offers. There is no such thing as a "standard" bonus payment, nor a "standard" royalty payment. Every single term in a lease is negotiable, including where the drill site is located.

Two big variables affect how rich a lease a property owner can command. One is negotiating from a position of strength, whether because the landowner controls a lot of acreage in a desirable location or is part of a group of landowners who work together. The second is the level of competition for the property. That's why Dallas/Fort Worth Airport, country clubs, municipalities and well-organized neighborhoods have won the best lease terms: They control a lot of land and they manage to drum up strong competitive bidding for their property.

In general, lease terms have become richer as the Tarrant County portion of the Barnett Shale has developed and has proved to be one of the richest portions of the field. Judging by reports we have reported in the Star-Telegram, lease terms have gone from about a 20 percent royalty and a bonus based on about $2,000 an acre or less, to about a 25 percent royalty and a bonus ranging from about $4,000 an acre or more.

Click here to read about the details of Woodhaven's community lease.

Click here to read the details of Dallas/Fort Worth Airport's gas drilling deal.

Click here to read the details of the Tarrant Regional Water District's gas drilling deal.

Click here to read about TCU's gas drilling deal.

Click here to read about Colonial Country Club's gas drilling deal.

Click here to read about the University of Texas at Arlington's gas drilling deal.

-- Jim Fuquay