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Natural gas fuels a boom in Fort Worth
FORT WORTH, Texas — Imagine a gold rush where nobody actually has to bother panning for gold, an oil boom without any unsightly oil wells and a lottery that pays out proceeds for a lifetime. Picture entire neighborhoods suddenly making out like Jed Clampett.
Think of all that, and you can come close to understanding the wild good fortune that has recently bubbled up under the feet of hundreds of thousands of residents in and around this north Texas city, which just happens to be located atop what experts predict could be the largest natural-gas field in the United States.
It's called the Barnett Shale, a vast reservoir of gas trapped inside the bedrock stretching beneath 5,000 square miles in and around metropolitan Fort Worth. For decades, geologists have known the gas was there, but it had always lain just beyond the reach of the drilling technologies needed to break it free.
Not anymore. A recent convergence of high natural-gas prices, new drilling techniques and a growing national demand for the clean-burning fuel has set off a mad dash by competing gas companies to lock up drilling rights in virtually every Fort Worth-area neighborhood — with long lines of property owners eager to sign up.
The toughest decision for many homeowners here seems to be what to do with the unexpected gas royalties they are suddenly reaping, which can average $250 per acre, per month. So far, swimming pools and summer homes seem to be popular choices.
"This is free money," said Francis Leong, the former mayor of the Fort Worth suburb of Haslet, who organized his neighbors to pool their land parcels, making them more attractive to a drilling company. "The only complaints I get are from people wanting to know why they aren't drilling more wells."
What's more, this land rush is proving to be particularly democratic, benefiting rich and poor and everyone in between. Nolan Catholic High School in Fort Worth will be getting royalties, as will the Shiloh International Church of God, a storefront church nearby.
The Woodhaven Country Club has signed a lease for its 150 acres, as did the Circle T Girl Scout Council, which has a 112-acre summer camp north of Fort Worth that could, with a little luck, soon be generating tens of thousands of dollars each month.
"We're trying not to bank on anything yet, because they just started surveying and you can't build a budget on money you don't have," said Patricia Thomson, chief executive officer of the Scout group. "But considering we have a $3.5 million budget we have to raise every year, (gas royalties) would help a lot."
Using a new technology known as "horizontal drilling," gas companies can tap 40 acres underground with just a single well drilled straight down for a mile and a half and then angled 90 degrees to run parallel to the surface.
There are environmental risks, however. A poorly drilled gas shaft could perforate groundwater reservoirs, contaminating a resource that in arid Texas is often more precious than oil or gas. Millions of gallons of water and sand, injected under high pressures to fracture the bedrock and release the gas, can pollute a drill site if not disposed of properly.
And there's always the danger of a blowout, releasing deadly, odorless gas that could poison nearby residents or cause a devastating explosion.
A blowout happened early on during the drilling in Leong's neighborhood about two years ago, when a well burst and released enough gas to cause authorities to order a local evacuation for several hours.
"Nobody was too alarmed," Leong said. "The company came right out and fixed it, and we haven't had any problems since. It certainly wasn't enough to cause anyone to want the drilling to stop."
Nor do the potential dangers seem to be much of a deterrent to many other property owners in the region, who have been furiously courted by competing gas-drilling companies racing door-to-door to sign as many leases as they can to rope off neighborhoods from rivals.
Larry Brogdon, a partner and lead geologist of the Four Sevens Oil Co. in Fort Worth, keeps track of his firm's progress with a series of huge maps lining his office walls. Vast swaths marked in red represent 16,000 acres under lease so far and testify to the success of the company's sales pitch, delivered at community meetings, block parties and barbecues.
"We tell them this is like getting an annuity; they'll be getting royalties for a long time," Brogdon said, adding that some of the wells might produce gas for a century.
Although the Barnett Shale gas deposits vary and not all of them can be profitably extracted using current technologies, energy experts predict that eventually, nearly every property owner in metropolitan Fort Worth who also owns the mineral rights beneath the land could benefit from the boom.
Up until three or four years ago — before the potential of the Barnett Shale grew apparent — those mineral rights were regarded as virtually worthless and were routinely conveyed along with the deed to a property.
The only real losers in the gas scramble appear to be renters, landowners in downtown Fort Worth (where urban density and underground utilities make drilling impractical) and anyone who bought property recently.
"There's a new subdivision not far from here, but the developers nowadays won't sell the mineral rights," Leong said. "So those folks are kind of out of luck."
Copyright © 2005 The Seattle Times Company