Titan/Hilliard Field Update

We have received some phone calls and emails regarding the recent activity on Hilliard Field. Here is what we know.

Titan is in the process of installing an enclosed gas lift compressor and a dehydration unit. The compressor will be natural gas fired.

Click here for a description of different types of compression.

According to the Oil and Gas Glossary, to meet pipeline requirements, the water vapor in natural gas must be removed. This is why dehydration is needed.

We recently went to the Texas Railroad Commission mapsite to see if any production has been posted for the Titan/Hilliard site. As of today, no production has been recorded. Many articles we have read stated that gas lift can be brought in to increase production in lower producing gas wells, extra tight formations, and older gas wells. We have no idea which of these may be the case at the Hilliard site.

According to the town of Flower Mound Environmental Services Department, The gas lift compressor may be operated intermittently as needed. At this time, there is no way of knowing how long the gas lift will be necessary. The town will be monitoring the site to make sure Titan is in compliance with our noise level regulations. If you have a complaint about noise, call the town. Flower Mound's Oil and Gas Inspector will be inspecting for compliance with all applicable Town requirements every month. In between these monthly inspections, our inspector will routinely visit sites, performing “spot checks”. A special thank you to our Oil and Gas Inspector for taking the time to quickly answer all the questions submitted. If you have a concern,  or question, we encourage you to contact our Inspector at jonathan.powell@flower-mound.com.

The last issue we have received emails on is sometimes residents smell natural gas when passing by the Titan/Hilliard site. It has been confirmed that Titan has been treating the gas with Mercaptan (natural gas odor) since the end of October. We are not sure if that is what residents are smelling.

Most important, if you smell any odors or experience any health effects, call the Town AND contact TCEQ immediately. The information for TCEQ is on the right hand side of the blog.

Williams Rule 37 against LISD Hearing Next Week

The hearing for the Williams Rule 37 Exception against LISD (Lewisville Independent School District) will be held next Friday, December 16th, at 9:00 am.

As of now, it appears LISD is still going through with the protest even though they voted at their last Trustee Meeting in November to solicit bids to sign gas leases near two of their properties. Both properties are located in Lewisville. One of the sites sits right on the Flower Mound/Lewisville border.

The hearing is for the site near the Flower Mound border.

Click here for info on the TRC hearing.

Williams Rule 37 Hearing Against Town of Flower Mound Postponed

William's attorney has requested a postponement of the December 14th Rule 37 Exception hearing against the Town of Flower Mound. Attorney John Camp claimed postponing the hearing was necessary to prepare evidence for the hearing. The Town of Flower Mound has agreed to the postponement. Both parties must agree on a new hearing date by December 21st, if they cannot agree by then, the Texas Railroad Commission Examiner will set a new hearing date for them.

The assigned legal examiner is the same one that heard both Titan cases.

Click here for the TRC document.

Natural Gas Market Gets Drilled, Titan Well Likely in the Red

Natural gas prices hit their lowest level since late 2009 in the last few days dipping as low as $2.56/mcf.  Due to new and more easily accessible liquid rich shale plays in Texas and across the nation, the natural gas industry is fast becoming a victim of their own success. 

Although the break-even price for natural gas development in the Barnett Shale varies from company to company, the general consensus seems to be $5 is the minimum for larger operators to hope to make a profit.  Some smaller operators with less overhead can achieve profitability at a lower price point. 

Based on sworn testimony and submitted exhibits at recent Railroad Commission hearings in Austin, it is possible at current levels, Titan’s 1H well on the Hilliard South Unit may not be profitable. Click here to see calculations and assumptions.  At $3.50/mcf, the well loses roughly $460,000.