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Tuesday, January 11, 2011

Natural Gas Exploration - Natural Oil Drilling

The Barnett Shale
Link to Barnett Shale Basin map
Barnett Shale Basin in North Texas
Sitting atop what geologists refer to as the Fort Worth Basin lies the Barnett Shale, a 600 foot thick layer of decomposed organic material deposited 300-320 million years ago that produced methane or natural gas.  Believed to be one of the nation's richest natural gas deposits, the Barnett Shale spans a 17-20 county area estimated to contain 30 trillion cubic feet of natural gas.

As the map illustrates, a portion of Cedar Hill is located over the eastern edge of the Barnett Shale Basin.  Experts suggest that this geological formation of sedimentary rock, approximately 1 - 1½ miles below the surface, may be the largest onshore natural gas field in North America, covering approximately 5,000 square miles.

There are a number of energy companies operating in the Barnett Shale, although not all of them perform the same functions.  Some companies specialize in leasing mineral rights or running title research.  Others are major exploration and production (E&P) companies - also referred to as "operators."  Yet others are service companies working primarily for operators in natural gas drilling or well-completion functions.  Publicly traded E&P companies with strong operation in this market include Dawson Geophysical, Chesapeake, Devon, EOG, Quicksilver, Williams and XTO Energy.  There are also many smaller, privately or foreign-owned energy companies involved in the area.  It is advisable to check out the background and references of any companies you may be working with.

Current City Regulations
Gas drilling rig
Gas Drilling Rig
The Cedar Hill Code of Ordinances Chapter 13 NATURAL RESOURCES, ARTICLE II., adopted in 1984, specifically addresses the extraction of natural resources.  The ordinance allows oil and gas drilling on property zoned C - Commercial, I - Industrial or IP - Industrial Park (See Zoning District Map).  However the ordinance prohibits drilling sites on any property zoned for residential use or within five hundred feet (500') of any residential or multi-family structure in any zone.  While current City Codes do not allow drilling in residential areas, exploration is underway in the form of seismic testing.  Chapter 15 PARKS AND RECREATION, ARTICLE I., prohibits drilling for gas in City Parks.

City of Cedar Hill Zoning Code
The Cedar Hill Zoning Code also contains standards that regulate where drilling sites may be located and how they are to be operated.  The Zoning Code requires a CUP be issued by the City Council before drilling activity commences.  This permit allows the City Council to set specific standards and requirements aimed at mitigating the negative impacts of drilling and operating a gas well.

Before the City Council considers a request for a CUP they will first conduct a public hearing and take public comment regarding the request.  Notice of this public hearing will be published in the local newspaper of record and mailed to all property owners within 200 feet of the proposed well site.  The CUP must be issued by the City Council before drilling activity commences.  The City Council may approve the request provided they are satisfied that the conditions for approval, found in ARTICLE 3.20.5 of the Zoning Code, have been met.

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