Fracking Rules Tightened in North Texas

4.0 Quake Hits North Texas
Fracking Blocked Due to Seismic Fear

The U.S. Army Corp of Engineers (USACE) have tightened fracking regulations near a North Texas Dam, becoming the latest agency at odds with the Texas Railroad Commission.

Related: RRC: XTO Energy Not Responsible for Earthquakes

USACE have added their voice to concerns over the proximity of oil and gas activity in order to protect the Joe Pool Lake dam. Through a multiyear engineering study, the corp took a look at the 20-year standard used for the barrier for drilling and what impact fracking might have on the integrity of the dam.

The study reads, “...It was concluded that the 3,000 foot exclusion zone at the project does not meet agency tolerable risk guidelines and, as a result, puts the project and public at risk. As a result, USACE has adopted a 4,000 foot exclusion zone at Joe Pool Dam within which no drilling will be allowed, regardless of depth. Additionally, in order to protect the project from seismicity, USACE will work to limit injection wells within five miles of the project.

This study has the Texas Railroad Commission (RRC), which regulates oil and gas activity in the state, standing alone in its stance over the relationship between fracking and earthquakes. The RRC has long been skeptical of the link between fracking and earthquakes and has publicly questioned the mounting scientific evidence of the link.

One major study was published last April by researchers at SMU and confirmed that oil and gas disposal wells were likely to blame for a series of earthquakes in Azle and Reno Texas.

I have not reached the conclusion that oil and gas activity is the causal factor. While we remain concerned about seismic activity in the state, we still haven’t had a hearing where we’ve had a definite case made that a specific operator is associated with any specific earthquake activity.
— RRC seismologist

 

Currently, there is no drilling activity underway near the dam, but XTO Energy has three existing wells and permits to drill four more.

Read the full report at swf.usace.army.mil

Eagle Ford Shale: the View from Space

eagle ford shale NASA
eagle ford shale NASA

New images from NASA chronicle the evolution of the Eagle Ford landscape.

Related: Eagle Ford Shale From Space - Updated NASA Photo

For many years, NASA has been using satellites to capture views of the Eagle Ford Shale from high above the earth. In February, they released new images that show the growth of the region and the total transformation of the landscape in just a few years.

In nighttime satellite imagery, the light from the Eagle Ford shale play competes with the nearby cities of San Antonio and Austin. The electric glow of drilling equipment, worker camps, and other gas and oil infrastructure combine with flickering gas flares to create an unmistakable arc of light across southern Texas.

The following images show the area east of Cotulla, Texas, in the heart of the Eagle Ford. During the boom, Cotulla's population grew from about 4,000 to 10,000.

Cotulla, TX: 2000
Cotulla, TX: 2015 | click to enlarge

The current downturn has affected the rig count in the Eagle Ford as producers wait out low crude prices, but the long term affects are yet to be known.

Read more at earthobservatory.nasa.gov

Eagle Ford Rig Count Back to 48

Eagle Ford Rig Count
Eagle Ford Rig Counts

The Eagle Ford Shale rig count increased by one, ending the week with 48 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the number of lawsuits in the region have increased with the drop in crude prices. Texas courts are seeing everything from royalty, lease and title complaints to more complicated contract disputes involving major investors.

Read more:Eagle Ford County Roads a Mess

A total of 450 oil and gas rigs were running across the United States this week, which is a drop of 14 over last week. 88 were targeting natural gas (four less than the previous week) and 362 were targeting oil in the U.S. (10 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)204 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs increased in the Eagle Ford fell to three this week as natural gas prices improved slightly, trading at $1.96/mmbtu, a $.15 increase from the previous week.

The Eagle Ford saw an increase in running oil rigs up this week to 45 with WTI oil prices ending the week at $36.79, a decrease of $2.67 over last week. A total of 43 rigs are drilling horizontal wells, zero are drilling directional wells, and five are vertical rigs.

Karnes County continues to lead the region in development with 11 running rigs. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Karnes County Couple Petitions Texas Supreme Court

Mineral Litigation Surges in Texas

Eagle Ford School Districts Give Back Millions

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at bakerhughes.com

Karnes County Couple Petitions Texas Supreme Court

Chesapeake Before Texas High Court
Eagle Ford Shale Supreme Court

Eagle Ford landowners petition the Texas Supreme Court to hear environment nuisance case.

Related: Eagle Ford Family Wants Day in Court

Michal and Myra Cerny from Karnes County are taking their legal battle to Texas' highest court, claiming that oil and gas activity on their property has made them sick, reduced their quality of life and damaged the foundation of their home.

The original 2013 case against Marathon Oil and Plains Exploration & Production was dismissed and their first appeal failed when the courts ruled that family didn't meet the legal standards for nuisance and negligence claims. The family is now hoping that the Texas Supreme Court will hear their case and give them a chance for restitution.

Making living conditions unbearable does not mean getting cancer from some chemical. You don’t need an expert to testify that the smell was so bad that they couldn’t live in their own house.
— Attorney David Towler

Mineral Litigation Surges in Texas

Litigation is exploding in the Eagle Ford during the downturn, as mineral owners and companies fight for what's theirs. Related: Texas Supreme Court Sides with Mineral Owners

As crude prices and rig counts plummeted over the last year, the number of lawsuits have increased and Texas courts are seeing everything from royalty, lease and title complaints to more complicated contract disputes involving major investors.

One example of the kinds of litigation currently active in the Eagle Ford involves two Texas companies who are squabbling over mineral leases. Last week, 1776 Energy Partners LLC sued Riley Exploration LLC claiming they wrongfully let drilling leases expire after the company was hired to service 11,000 acres of oil and gas leases in Karnes County. The breach of contract suit demands Riley return all fees that have already been paid plus damages for the expired leases, a figure estimated at over $1 million.

Battles between family heirs have also increased, with relatives bringing new claims of mismanagement against each other. This type of litigation can be very lengthy and can clog up a courtroom docket.

Once source says San Antonio lawyers have seen owners become “much more aggressive and assertive in protecting their rights,” including their stewardship of the land’s “ecology and wildlife.” Which means oil production companies are coming under more intense scrutiny for how they use their land, and how much they pay their lessors.

In February, the Texas Supreme Court upheld a lower court’s ruling to award at least $1 million in royalties, interest and attorney fees to the Hyder family who had been fighting Chesapeake Energy since 2010.