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Below is a list of questions that the City of Lewisville addressed about the Barnet Shale. Please click on each question to be taken to the answer for that question.
Q. What is the Barnett Shale?
Q. Is Lewisville located within the area of the Barnett Shale?
Q. Why are we just now hearing about the Barnett Shale?
Q. Are there companies drilling in Lewisville today?
Q. Do companies need a permit to solicit mineral rights leases?
Q. What does it mean if I sign a mineral rights lease agreement?
Q. Does the city have any information on the leasing or drilling companies?
Q. Can our neighborhood negotiate a lease as a group?
Q.What rules are in place to prevent wells from being placed too close to my house or becoming a nuisance?
Q.Where can I register a complaint about a leasing or drilling company?
Q. What is the Barnett Shale?
A. The Barnett Shale is a large natural gas reserve encompassing more than 5,000 square miles and including portions of at least 18 counties in North Texas. Many experts believe the Barnett Shale may be the largest onshore natural gas field in the United States, estimated to contain more than 26 trillion cubic feet of natural gas. In recent years, advances in drilling technology have made it possible for energy companies to extract large amounts of natural gas from the Barnett Shale.
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Q. Is Lewisville located within the area of the Barnett Shale?
A. There are 18 counties that cover the Barnett Shale, including Denton County. (Others Tarrant, Wise, Bosque, Comanche, Cooke, Ellis, Erath, Jack, Johnson, Montague, Palo Pinto, Parker, Hamilton, Hill, Hood, Somervell and Clay counties.) There has not been sufficient testing in Lewisville to know whether gas reserves are located beneath the city, but significant levels have been verified in adjacent cities.
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Q. Why are we just now hearing about the Barnett Shale?
A. Mitchell Energy drilled the first gas well in the Barnett Shale in 1981. After studying the Barnett Shale, the company could see its potential but knew drilling would be difficult because the natural gas was literally hiding in the source rock layers, which would have to be broken up to release the gas. After 20 years of research, the introduction of horizontal drilling in 2002 made it possible to access the gas reserves contained within the Barnett Shale.
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Q. Are there companies drilling in Lewisville today?
A. At this time, there is only one active drilling site in Lewisville. There are several companies currently working with property owners to secure mineral rights leases. If future testing shows that there is accessible natural gas located beneath portions of Lewisville, it is reasonable to expect that someone will attempt to drill for it. The first application for a drilling permit in Lewisville was received from Chesapeake Energy just before Thanksgiving 2008. The permit has been issued and Chesapeake is currently drilling on an undeveloped site in east Lewisville, near the Camelot landfill. As of March 18, 2009, no other applications had been received.
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Q.Do companies need a permit to solicit mineral rights leases?
A. No, because these leases are real estate transactions between two private parties, there is no permit needed for a company to contact anyone about a possible lease or to negotiate and sign a lease agreement.
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Q.What does it mean if I sign a mineral rights lease agreement?
A. Lease terms can vary, but in general a signed lease does not necessarily mean you will receive any future payments or that drilling will occur beneath your property. In some cases, company research might reveal that you do not actually own the mineral rights on your property. For this reason, most agreements are actually a “lease option” that will be exercised only after research is conducted. Also, most leases are based on a per-acre payment, which will be prorated to reflect the actual size of your property. Typically, a lease will only result in payments to you if you actually own the mineral rights for your property and drilling does take place. For all of these reasons, you should seek advice from an attorney before signing a lease.
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Q.Does the city have any information on the leasing or drilling companies?
A. The City of Lewisville does not compile information on the leasing companies and has no role in private property leasing. You should conduct your own research into a specific company before signing a lease.
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Q.Can our neighborhood negotiate a lease as a group?
A. Yes, and some neighborhoods in and around Lewisville have done exactly that. On the positive side, this approach can result in better terms for you and your neighbors. On the negative side, reaching a consensus among a large group of neighbors can be difficult. Whatever your approach, it is important to understand that the city does not have a role in private property leases and is not in a position to assist with your negotiations or with enforcement of the lease terms.
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Q.What rules are in place to prevent wells from being placed too close to my house or becoming a nuisance?
A. The Lewisville City Council adopted an ordinance in 2006 (amended in September 2008) that establishes certain restrictions on the location, appearance and operation of gas wells within city limits. Companies will be made aware of those restrictions when they apply for a drilling permit. Some specific restrictions include:
- No well can be drilled within 500 feet of a residence, church, public building or park, hospital or school without unanimous consent of all property owners within 500 feet of the well site and affirmative vote of at least three-fourths of the City Council.
- Drilling sites must be surrounded by a fence between 8 and 10 feet tall
- Landscaping and irrigation is required along all street frontages, and tree mitigation is required for removal of trees on a city-maintained list of types.
- On-site operations (other than drilling) can only be conducted between 7 a.m. and 7 p.m.
- Noise from the site cannot exceed 78 decibels at a distance of 300 feet (there are some specific rules for various sound sources listed in the ordinance)
For more information on well-site restrictions, please review Ordinance 3329-04-2006 (available through the city website at www.cityoflewisville.com).
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Q.Where can I register a complaint about a leasing or drilling company?
A. If your concern relates to provisions of the Ordinance described above, then city officials can work with you to investigate any complaints. If you have other concerns, the Texas Railroad Commission has statewide jurisdiction over permitting and production or oil and gas wells. You can contact the Railroad Commission on-line at www.rrc.state.tx.us or by calling 512.463.7288.
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Updated last on 9/12/2008
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