Petit Jean River, Gulf Mountain selected for natural gas exploration
LITTLE ROCK — The Arkansas Game and Fish Commission finalized a 5-year, $29.5 million agreement Monday with Chesapeake Energy to begin exploration for natural gas in two Arkansas wildlife management areas.
The Oklahoma-based energy company will be allowed to explore more than 7,575 acres in the Petit Jean River Wildlife Management Area in Yell County and approximately 4,000 acres of the Gulf Mountain Wildlife Management Area in Van Buren County.
The Game and Fish Commission received a $1.24 million lease signing bonus, as well as a 20 percent royalty on natural gas pumped from the wildlife areas as part of the agreement.
Mark Raines, media director for Chesapeake’s Little Rock office, said there is no way of knowing for certain how much natural gas the wildlife areas may yield.
“We still have a lot we have to do before we can start drilling in there,” he said. “There’s no way of knowing how much can be extracted until drilling begins.”
Raines emphasized Chesapeake’s dedication to maintaining the environmental integrity of the wildlife areas.
“We conduct our operations in an environmentally superior manner,” he said. “Chesapeake has an outstanding environmental record. Our operations are regulated by the state and federal governments, but we also have management practices above and beyond the state and federal requirements. We are constantly aware of our responsibility to the environment.”
Keith Stevens, spokesman for the Arkansas Game and Fish Commission, said the commission was particularly diligent when considering the wildlife areas for natural gas exploration sites, and the drilling would only have a marginal effect on hunters and fishers.
“We wouldn’t have gotten into this agreement if there was going to be a damaging impact,” he said. “We think the benefits far outweigh the impacts.”
By Adam Franks
Reporter
Story date: July 30, 2008
Copyright 2008 Russellville Newspapers, Inc.
Ar Game and Fish to allow drilling in WMA.
Wildlife over seen due to natural gas drilling
Saturday, Aug 30, 2008
By Joe Mosby
Those large dollar signs associated with natural gas producers' leasing of several thousand acres of wildlife management areas in Arkansas tend to overshadow what may take place in habitat for wildlife.
A number of questions were asked of Loren Hitchcock, deputy director of the Arkansas Game and Fish Commission and the agency's lead person in this Fayetteville Shale issue. Hitchcock and Jim Goodhart, chief legal counsel of AGFC, provided these answers:
1. When a drilling company decides to put a well on AGFC land, will it consult with the WMA manager as to the exact location?
The gas operator is required to consult with AGFC about the location of any well site. AGFC reserves the right to approve, in writing, all plans for the construction upon the leased premises of structures, rigs, machinery, communication facilities, ways and roads, well locations, pipelines and equipment and for drilling of wells. Detailed written plans for any such construction must be submitted to AGFC at least 30 days prior to construction.
2. Will roads to the drilling site be mapped out in advance in consultation with the AGFC area manager or another designated AGFC staff person?
Yes. If road construction is necessary, the company shall incorporate design criteria to restrict road width to the minimum area required for transport of equipment and personnel to the site. Road width shall be authorized in writing beforehand by the AGFC minerals manager. Entrance to and travel within AGFC lands shall be over established routes or as authorized in writing beforehand by the minerals manager and regional wildlife supervisor. Additional service roads shall not be constructed unless authorized by the minerals manager.
3. Are the drillers allowed to cut trees as they see fit to access a drilling site or will they be limited at the direction of the area manager?
The gas operator must submit a plat showing the location of each well before drilling is commenced. Additionally, the operator must follow an approved revegetation and reclamation plan that includes tree cutting and reforestation. The AGFC staff will work with the gas operator to minimize the impacts of all surface use.
4. Holding pits are dug and filled with waste water and other material in the drilling process. How are these pits to be cleaned and restored to near normal condition?
The gas operator is responsible for complying with strict environment standards under the terms of its lease with AGFC. The gas operator is required to remove various equipment and materials after completion of drilling rig activities and must fill and level all pits and restore the leased premises to the same condition as when received.
Upon completion of the drilling activity, pit residue will be removed to an off-site disposal facility approved by the Arkansas Oil and Gas commission and the Arkansas Department of Environmental Quality. Such pits will then be filled and the WMA leveled to its pre-existing plane and re-sodded with appropriate native vegetation to the satisfaction of the AGFC minerals manager and regional wildlife supervisor.
The AGFC maintains the authority to require closed-loop systems to reduce the use of open pits at drilling sites. All drilling sites require the use of a retention pit as a protective measure against any contaminated fluid leaving the site.
5. After a well is completed, will the wellhead be fenced off?
Whether a single wellhead should be enclosed by fencing will be addressed by AGFC and the gas operator on an individual basis. If production is obtained, all surface equipment, including separators and tank batteries, will be located at a site to be designated by AGFC and, if applicable, fenced to exclude livestock and wildlife.
6. Is the agreement for no disturbance during hunting season for exploration (seismograph work) and for actual drilling?
No drilling, wellsite clearing or road or pipeline construction activities will be permitted during hunting seasons unless approved in writing by AGFC, Any seismic activity on the premises must be conducted in accordance with the terms in the lease.
7. What are the hunting season parameters, early September through February or a shorter framework?
For Gulf Mountain WMA, the hunting season parameters are: For the duration of the early migratory bird hunting season (Sept. 1-Feb. 15). For the duration of the fall turkey hunting season (Oct. 1-Feb. 28). For the duration of the spring turkey hunting season (April). For the duration of the archery, muzzleloader and modern gun deer hunting seasons (Oct. 1-Feb. 28).
For Petit Jean River WMA, the hunting season parameters are: For the duration of the early migratory bird hunting season (Sept. 1-Feb. 15). For the duration of the fall turkey hunting season (Oct. 1-Feb. 28). For the duration of the waterfowl hunting season (Nov. 22-Jan. 25). For the duration of the spring turkey hunting season (April). For the duration of the archery, muzzleloader, and/or modern gun deer hunting seasons (Oct. 1-Feb. 28).
8. In the case of Gulf Mountain WMA, where will the water used in the drilling process come from? Outside the WMA or from the headwaters of the Little Red River or from ponds on the area?
The gas operator will procure its own source of water unless special approval is granted by AGFC. No use of underground or surface water from the WMA will be permitted without prior written approval of the AGFC.
9. Are there penalty clauses in the lease for violations like clandestine dumping of waste material?
There are no specific monetary penalty provisions in the lease for waste dumping or similar violations. The gas operator is required, as a condition of the lease, to comply with all applicable federal and state laws and regulations. In the event the gas operator should fail to comply, the gas operator is required to protect and indemnify AGFC and the state from any damages that might arise from a breach of any of the gas operator's obligations, including harm to the environment.
10. Will AGFC assign a staff person as a monitor in the field of drilling activity?
Yes. AGFC will designate employees to carry out specific responsibilities under the lease, including monitoring of the site activities on AGFC land.