Friday, February 10, 2012

Gas Drilling Is Not A Dead Issue In Flower Mound

People of Flower Mound.....

Flower Mound's new Oil and Gas Ordinance is in jeopardy. The very ordinance that may be the most protective of its citizens in the State of Texas AND the United States.

There is an important article in the Flower Mound Leader that residents should read.

Council clashes over Charter Review

After all the hard work that included walking neighborhoods, phone calls, and repeated trips to Town Hall, the controversy is happening again! Despite the citizen’s referendum on Gas Drilling, it appears that Councilmember Stephenson is trying to take away our right to vote on protecting the new Oil and Gas Ordinance in May.

During Monday’s Council meeting, Councilmember Stephenson failed to comply with meeting protocol. Councilmember Stephenson under the Item A Future Agenda, asked the council to postpone any further Charter Review meetings until her summons of the Charter Review Chairman could be fulfilled. When the Town Secretary informed her that the Chairman was not available due to a work schedule conflict, Councilmember Stephenson became angry and defiant and continued to ignore meeting protocol. It was somewhat confusing, but Mayor Northern was trying to explain to Councilmember Stephenson that since Stephenson did not have an item to put on the agenda, the Council could not discuss having a special meeting to satisfy Councilmember Stephenson’s demands at that point of the meeting.

It really is interesting to watch the video of the meeting on FMTV, because during the Item M Calendar Section, Mayor Northern and Councilmember Lyda were being very accommodating to make this happen per Councilmember Stephenson's request. It makes us wonder what is Councilmember Stephenson’s real agenda?  We allege that her goal may be postponement of the recommendations of the Charter review items be put on the May ballot.  At a cost of $10,000 to $30,000, why does Councilmember Stephenson want to burden the taxpayers of Flower Mound by paying for a special election in November?

At the February 2nd Charter Review meeting, the members reviewed, discussed, debated, and voted on all items that had been submitted to the committee by Staff, Council, and residents.  The residents in attendance were given an opportunity to make comments on each item as it was presented. In fact, the residents were allowed to speak as long as they wished and as many times as they wished. 

 
Only ONE recommendation was a 3 in Support and 2 in Opposition.  Surprise… the ONE was the recommendation made by the Oil and Gas Advisory Board in July of 2011 to protect the new Oil and Gas Ordinance via a Super Majority, or 4 to 1 Council vote to change, weaken, or repeal the new ordinance.  Why would the two CRC members be opposed to this item going to the voters of Flower Mound? 

We want to have a chance to vote on the Charter amendments in May.  If all the issues and recommendations have been addressed, why should the process take longer? The Charter Review Committee will present a 30-page document that will be reviewed by Council. THE RECOMMENDATION SURROUNDING THE SUPER MAJORITY VOTE TO AMEND and/or REPEAL THE 2011 OIL AND GAS ORDINANCE IS IMPORTANT! You can see how serious it is by the Council’s appointees:  a former Mayor and Planning and Zoning Commissioner; a former Councilmember; a current Planning and Zoning Commissioner and former Oil and Gas Advisory Board Chairman, another member of the former Oil and Gas Advisory Board, and two attorneys.  The majority of the committee had first-hand experience of this document and understood its importance. It took the last Charter Review Committee longer to understand the Town Charter and the rules that govern it. This is not the case with the current committee!

Per Councilmember Stephenson’s request, Council is having a special meeting on February 15th.  This is a public meeting and any resident can show up. You may speak during the public participation portion of this meeting or send emails to voice your concern. 


Simply ask the Flower Mound Town Council: do you support a charter amendment requiring a public hearing and a super-majority vote to amend the ordinance?

If their answer is no, then beware—an accommodation to the drillers may be in the works.

To contact the Mayor and all Town Council Members, please e-mail mayor/towncouncil@flower-mound.com

The Charter Review Committee will have another meeting on February 16th.

Most importantly, let the citizens of Flower Mound vote on the items on May 12th. 
Please give a first and last name when commenting.

Tuesday, December 20, 2011

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.

Thursday, December 8, 2011

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.

Wednesday, December 7, 2011

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.

Monday, December 5, 2011

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. 

Thursday, November 10, 2011

LISD To Discuss and Consider Signing Gas Leases

The LISD Board of Trustees is asking for the opportunity to seek proposals for signing gas leases with Titan Operating and Williams.

The Regular meeting is this coming Monday, November 14th, and will begin at 6:00 PM in the Bolin Administrative Center, 1565 W. Main Street, Lewisville, Texas. Immediately after opening, the Board of Trustees will convene in Closed Session and will return to Open Session at 7:00 PM.

Click here for the agenda.

If you read the action item, it appears they may be leaning towards signing. Of course, indicating that there will be drilling anyway and they will most likely lose the Rule 37 exceptions currently being requested with the Texas Railroad Commission. We have heard that line before.

This does not include signing a lease for the LISD properties near the Hilliard Pad Site. Using the excuse that drilling will happen any way is not the case at Hilliard. Without the leasing of many of the properties near Hilliard, a significant amount of wells could be prevented from being drilled.


Click here for the action item.

If you live near one of these properties, NOW is the time to voice your opinions. SHOW UP and contact the Board of Trustees.

Click here for the contact info.

Thursday, November 3, 2011

"Good Neighbor" Williams Receives Penalty and Violation From EPA

One of our "good neighbors', Williams received a penalty and will be forced to reduce their emissions from gas production sites in Colorado. The EPA also issued a penalty and violation to Conoco Phillips.

Hello EPA, we need you here in Flower Mound. In the past 2 months, there have been close to 20 odor and health complaints to the TCEQ for gas drilling production sites here in FloMo.  Over 90 percent of those have been at a Williams gas production site!!!!!!!

The TCEQ can't seem to find anything yet we have residents complaining of health effects ranging from nose bleeds, respiratory problems, dizziness, headaches, digestive issues etc.

Here is a press release we received from the EPA.

Agreements with Williams and ConocoPhillips resolve alleged Clean Air Act violations on Southern Ute Reservation
Companies to pay penalties, improve emission controls, and conserve gas at production facilities
Contact: Joshua Rickard, 303-312-6460; Richard Mylott, 303-312-6654


(Denver, Colo. – November 2, 2011) The U.S. Environmental Protection Agency today announced agreements with two gas production companies resolving alleged violations of the Clean Air Act on the Southern Ute Reservation in Colorado’s San Juan Basin. The agreements, outlined in separate consent decrees with Williams and ConocoPhillips, will reduce emissions of air pollutants from a gas plant and compressor stations.

“These agreements will ensure that steps are taken to monitor and reduce emissions of harmful volatile organic compounds from several production facilities on the Southern Ute Reservation,” said Mike Gaydosh, director of EPA’s enforcement program in Denver. “These and other air pollutants can contribute to unhealthy air quality and impair visibility.”

Under an agreement with Houston-based ConocoPhillips, the company will pay a penalty of $198,000 to resolve alleged Clean Air Act violations at the Southern Ute Compressor Station. The station removes water and compresses natural gas for transportation through high pressure gas pipelines. The violations were discovered during a self-audit conducted by ConocoPhillips and disclosed to EPA.

ConocoPhillips will also conduct mitigation projects at the station, including the replacement of "high-bleed" pneumatics with "low-bleed" or "no-bleed" pneumatics at well sites that feed into the station. In addition, the company will conduct an infrared camera survey of the compressor station to identify leaking components and will retrofit a compressor engine with an oxidation catalyst to reduce emissions.

Measures taken as a result of the settlement will reduce emissions of volatile organic compounds by 137 tons per year, hazardous air pollutants like formaldehyde and benzene by 90 tons per year, and carbon monoxide by 33 tons per year. These measures will also conserve 5.5 million cubic feet of gas annually, enough to heat 80 homes.

In a separate agreement with EPA, Williams, a natural gas production company based in Tulsa, Okla., has agreed to pay a $50,000 penalty and expand a leak detection program at the Ignacio Gas Plant on the Southern Ute Reservation. The settlement resolves alleged Clean Air Act violations at the gas plant and the Ute E compressor station. Violations were discovered through inspections conducted by EPA.

In addition to the penalty, Williams has agreed to implement an infrared camera leak-detection and repair program to identify fugitive emissions sources. The expected annual emission reductions associated with these measures include approximately 14,000 lbs of volatile organic compounds.

The Ignacio Gas Plant gathers and processes field gas for transportation. The Ute E compressor station compresses field gas for transportation through a gathering line.

The facilities affected by both agreements are located in the San Juan Basin near Durango, Colo., within the exterior boundaries of the Southern Ute Indian Reservation.

Help EPA protect our nation's land, air and water by reporting violations: http://www.epa.gov/tips/