Gasapalooza UPDATE
The state Game and Fish Commission has a meeting at 2 p.m. today. It's going to concern a major lease of Game and Fish acreage for gas exploration. Multi-million upfront money, I'm told. Details when released, but the acreage is in wildlife management areas -- Petit Jean in Yell County and Gulf Mountain in Van Buren County.
Too bad the Highway Commission doesn't own a lot of acres in the shale.
Hope somebody asks if the Chinese are going to be in on this slice of Arkansas, too.
Arkansas could do well to look to Texas, where some folks, even those reaping lease money, are taking extraordinary steps to insure land is protected during the exploration. By way of warning: A west Texas rancher's testimony about the potential danger of gas leaks and water contamination.
UPDATE: At the meeting, Game and Fish rubber-stamped an agreement that has been in the works for a year: A five-year lease to Chesapeake of 4,000 acres in the Gulf Mountain wildlife management area and 7,500 in the Petit Jean WMA. Chesapeake pays the Game and Fish Commission a $29.5 million up-front signing bonus -- most of it for Gulf Mountain, presumably because the Petit Jean land isn't within the Fayetteville Shale -- and a 20 percent royalty rate on whatever gas is extracted. Though it is not yet clear how the money will be spent, Game and Fish listed a number of improvement and protection projects it might devote the windfall toward.The deal will raise questions about environmental impact. The lease with Chesapeake includes two documents geared to meet those concerns: a safe harbor agreement and a so-called best management practices document. The former protects the Speckled Pocketbook Mussel, a species found in the Little Red River. The latter agrement, generated through negotiations with ADEQ, the Oil and Gas Commission, and others, stipulates times of the year, hunting season, for example, that drilling will be forbidden. We're supposed to receive a copy of this document and will post an update when we do.
State law already stipulates the number of wells and number of site roads allowed. The environmental terms of the lease were negotiated without comment from the public or non-government environmental groups.
Game and Fish commissioners said that there will be an impact on hunters in the area -- some hunting spots might be paved over with a well pad, for example.
UPDATE 2: The best management practices document mentioned above provides guidelines for construction, water disposal, and a number of other drilling-related issues. You can find it here.
GAME AND FISH NEWS RELEASE
LITTLE ROCK - With the stroke of a pen, the Arkansas Game and Fish Commission today unanimously agreed to gas leases on two of its wildlife management areas. The leases will generate about $29.5 million for the agency. The lease agreements were signed during a special meeting of the AGFC at its headquarters in Little Rock.
Petit Jean River and Gulf Mountain wildlife management areas will be the site of the drilling operations by Chesapeake Energy of Oklahoma City. Chesapeake was the winning bidder out of four bids for the right to drill in the WMAs. The agreement also calls for a 20 percent royalty over the next five years.
The five year leases cover just over 11,500 acres. Petit Jean WMA is located near Ola in Yell County and Gulf Mountain is in Van Buren County near the community of Scotland. Money from the lease agreements will be used help fund many projects in the state including conservation programs, renovation of facilities as well as funding new and existing projects.
Gov. Mike Beebe, who spoke during the meeting, called the signing something special for all Arkansans. “A lot of people will benefit from this and I want to personally thank you,” he said. Beebe also praised the AGFC for its efforts to team up with other state agencies. “Your desire to partner with ADEQ and the Oil and Gas Commission for compliance, preservation and inspection will make sure these lands will be available for generations to come,” Beebe said.
AGFC Chairman Freddie Black said that the lease signing was a monumental day for the agency. “We don’t take this lightly. We know there will be impacts to people who hunt and fish in these areas, but we think it will be minimal,” Black said. “There will be no exploration during hunting season,” he added.
Danny Games, director of corporate development for Chesapeake in Arkansas, said his company recognizes the tremendous financial gain to the AGFC and the state of Arkansas. “We’re also sensitive to the concerns of its citizens. We are an experienced driller with twice as many rigs as the number two driller, all on American soil. Chesapeake uses the most advanced drilling and completion technologies and operates within the strictest safety guidelines to protect the health and safety of the public and the environment. We believe that this partnership will extend far beyond the initial leasing bonus and provide long-term benefit to the Arkansas Game and Fish Commission and the citizens of our state," Games said.
Quick Facts:
Petit Jean River WMA
Yell County
15,502 surface acres
7, 578.767 net mineral acres
5 year lease
20% royalty
Lease signing bonus for net mineral acres $1,248,772
Gulf Mountain WMA
Van Buren County
11,683 surface acres
3,949.495 net mineral acres
5 year lease
20% royalty
Lease signing bonus for net mineral acres $28,298,131.68
Other leases on Arkansas WMAs:
Ed Gordon Point Remove WMA
Conway County
165 net mineral acres
Kerogen Resources, Inc.
Lease signing bonus for net mineral acres $99,000
Southern half of Gulf Mountain WMA
Van Buren County
2,965 net mineral acres
Chesapeake Energy
Lease signing bonus for net mineral acres $2,945,399.29







Comments
Now that's leadership.
Posted by: Fletch
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July 28, 2008 12:58 PM
My wife has lots of gas. I'll lease her butt for one thousand dollars!
Posted by: Deathbyinches
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July 28, 2008 01:06 PM
Since we borrow a quarter of our federal debt from China, why not sell them a quarter of all our businesses? They'll own more of the US than the Saudis before eventually.
Posted by: eark
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July 28, 2008 01:07 PM
Since we borrow a quarter of our federal debt from China, why not sell them a quarter of all our businesses? They'll own more of the US than the Saudis eventually.
Posted by: eark
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July 28, 2008 01:08 PM
I' m just so glad we've got a great environmental steward like Mike Beebe in charge of our resources. I know he will always look out for my children. Let's all join hands and give three cheers. Wow! I'm so excited!
When I am reduced to satire, beware. The end is near.
But seriously, why can't these rich son-of-a-bitch - J.R. Ewing wannabes move away and leave Arkansas to the people who value the land and the water. I'm starting to think Mike Beebe is some kind of Manchurian Candidate. I'm a country person, I grew up in a place smaller than Amagon (Walnut Hill) and I have spent time with Mike Beebe and I tell you I was trolling for some country wisdom and I came up dry. The man is a country club pinhead. He can still talk the talk but his actions are full of shit.
Posted by: Roderick A. Bryan
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July 28, 2008 01:14 PM
Who decides who has the right to lease our land and for what purpose? What if the gay rodeo clown school wants to lease the land? Is there no public discourse?
Posted by: Roderick A. Bryan
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July 28, 2008 01:20 PM
DBI, Are you sure your wife reads all your posts??
If she does I guess she is whacking you about now! LOL
Posted by: Nanc
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July 28, 2008 01:51 PM
Is the mineral lease provided in the G&F Commission's authority?
Rod, keep in mind most of the Commissioners are not Beebe appointments.
However, I cannot find a listing of commissioners on the G&F Comm website.
Can someone help?
Posted by: eLwood
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July 28, 2008 02:11 PM
I know he didn't appoint most of them, he just has been really setting the pace for the pillaging. He's like gas on a fire when it comes to robbing the land of resources. I'm begging for an ounce of caution from him. Every time somebody wants to extract something he shows up like he works for the company. I just want to know who in the hell is representing the rest of us...
Posted by: Roderick A. Bryan
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July 28, 2008 02:16 PM
I've spent my entire life visiting Petit Jean.. I have family who have owned a home there for generations. I scoured those hills in the seventies with members of the Nature Conservancy in the first State wide documentation of rare plants and animals. I learned how to catch fish as big as my leg with my bare hands in those clear waters. (No easy feat)
What terribly sad news.
Posted by: Eureka Springs, AR
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July 28, 2008 02:23 PM
Chesapeake owns 585,000 net acres in the Fayetteville shale, according to their presentation.
Posted by: eLwood
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July 28, 2008 03:36 PM
DBI, Are you sure your wife reads all your posts??<<<
Yes I bet he gets none for 6 months if I copy and send that one to the Mrs.
There's 3 things you never mention about a woman whether she's 19 or 90;
age, weight and gas.
Posted by: eLwood
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July 28, 2008 03:40 PM
Next we get the feds to let 'em drill in that swamp out east of Brinkley. THAT oughta flush them goddamn ivory billed woodpeckers out into the open!
Posted by: Mannish Boy
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July 28, 2008 03:41 PM
Chesapeake owns 589,000 net acres as of today
Posted by: eLwood
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July 28, 2008 03:42 PM
I'm surprised we haven't heard from an industry troll by now. You know, the one when gas exploration is the topic, always posts something along the lines of "I was once a dirt rancher, and make $25,000 a month now, and my land still looks beautiful."
Posted by: Mrs. Basil E. Frankweiler
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July 28, 2008 03:46 PM
They're not wasting any more money on trolls. Why would they when our so called leaders are handing them everything they want on a silver platter. The word on the street amongst corporate polluters is out, the Beebe administration is a discount- hell they're an ALL YOU CAN EAT-- and the electorate gives him a 70% approval rating to boot.
Posted by: Roderick A. Bryan
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July 28, 2008 04:00 PM
Wifey gets her gall bladder out tomorrow so that will probably clear up that gas problem. I should have had this great idea earlier! Story of my life.......anyone got a spare $15,000 they can loan me until the Rapture?
Posted by: Deathbyinches
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July 28, 2008 05:13 PM
Ok did anyone ask the Game and Fish how they plan to replace the lost hunting land ?
Didnt arkansas enact "No Net Loss" Legislation ? The Arkansas Hunting Heritage Protection Act provides for "no net loss" of public hunting areas in the state. The law requires the state fish and wildlife agency, to the extent practicable, to allow hunting on the lands that they manage. Every year, the Arkansas Game and Fish Commission will be required to submit a report documenting the number of acres of commission managed land to be closed or opened to public hunting. Several state caucus members co-sponsored the legislation including Senate Caucus Chair Ruth Whitaker, Sen. Steve Faris, House Caucus Vice-Chair Rep. Benny Petrus, Reps. Stan Berry and Tommy Dickinson.
Not sure how this will affect it.
Posted by: The Citizens Journal
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July 28, 2008 06:24 PM
eLwood, You have been trained well!
Hope Mrs. DBI has a speedy recovery from her surgery!
Posted by: Nanc
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July 28, 2008 07:02 PM
Its not the well, it's the pipeline..at least that is what many rural Texas landowners have discovered in Tarrant and Denton Counties. Once it has permits for wells, it is a given that Chesapeake or whoever can connect the dots willy nilly via eminent domain, and a pipeline under your acreage will limit your ability to subdivide it for your descendants or in general do anything with it for about 25 years.
Posted by: Sanford
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July 28, 2008 07:34 PM
Its not the well, it's the pipeline..at least that is what many rural Texas landowners have discovered in Tarrant and Denton Counties. Once it has permits for wells, it is a given that Chesapeake or whoever can connect the dots willy nilly via eminent domain, and a pipeline under your acreage will limit your ability to subdivide it for your descendants or in general do anything with it for about 25 years.
Posted by: Sanford
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July 28, 2008 07:35 PM
I am so glad I paid taxes and fees to the Game and Fish all these years so they could sell out our beautiful lands and water to the gas industry.
Posted by: Eureka Springs, AR
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July 28, 2008 08:19 PM
Sanford - start reading the Fort Worth Star Telegram regarding the pipeline. It is a very interesting subject right now for South Fort Worth.
Posted by: Goof
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July 28, 2008 10:12 PM
Several observations- the so called 'Scarlet Tanager' pictured on Page 14 of the linked "Arkansas Best Management Practices for Fayetteville Shale Natural Gas Activities" is actually a Northern Cardinal male. Hell, a 1st grader would know the difference. If they don't even know their common birds, how will they even begin to protect the rare and endangered plants, birds and other wildlife once the drilling begins?
I see where there is to be no drilling during hunting season, but no mention of no drilling during nesting season. Guess the chase for the greenbacks has to sacrifice something unimportant! Sorry hunters, said Mr. Greediness Chesapeake, we killed all the Bambis and ducklings, but it was all for a good cause. Come back hunting in 20 years after we're gone. Oh, and the place may not look quite the same when we are gone, either.
Finally, if Chesapeake actually paid AGFC $28,298,131.68 to lease 3,949.495 net mineral acres in the Gulf Mountain WMA for 5 years, my math says that is $7,165 per acre. Will AGFC get more even more lease money in 5-years if Chesapeake is producing natural gas on that land? Add to that the 20% royalty fee and don't you bet landowners all over Arkansas who have already signed away their mineral rights to Chesapeake and others realize now just how cheaply they were bought off?
Posted by: Sound Policy
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July 28, 2008 10:27 PM
CAN NO ONE STOP THIS VIKING STYLE RAPE AND PILLAGE OF ARKANSAS' NATURAL RESOURCES?
PRIOR TO GOVERNOR BEEBE'S ELECTION, HE PROMISED THAT IF A CONFLICT AROSE BETWEEN ENVIRONMENTAL CONCERN AND ECONOMIC DEVELOPMENT, HE WOULD ERR ON THE SIDE OF ENVIRONMENT. IS IT POSSIBLE THAT HE DOES NOT UNDERSTAND THE CONFLICT HERE - THE
DEGRADATION AND SLOW BUT CERTAIN RUIN OF OUR STATE WATERS? OUR GROUNDWATER
AND SURFACE WATERS ARE AT GREAT RISK.
IN MY OPINION, ALL THE GAS EXPLORATION AND DRILLING OPERATIONS HAVE LITTLE RESPECT
FOR PROTECTION OF THE ENVIRONMENT. THEY FRACTURE WELLS USING SALT WATER, PROPRIETARY
CHEMICALS AND GOD KNOWS WHAT ELSE. THE EFFLUENT COMING BACK OUT OF THE WELLS
IS SENT BY TANKER TRUCKS FOR DISPOSAL IN "HOLDING PONDS" OR CONVENIENT LEGAL OR ILLEGAL FIELDS - TO SEEP INTO THE GROUND. ONCE THE WATER EVAPORATES OR HAS DISAPPEARED INTO THE
GROUND, THE "SLUDGE" THAT IS LEFT, MORE OFTEN THAN NOT, IS DISPOSED OF INAPPROPRIATELY
ON SOME STREAM BANKS.
I AM RARELY SHOCKED BUT AG&F, ADEQ AND THE GOVERNMOR SIGNING OFF ON LEASING WMA
TO NATURAL GAS COMPANIES, TAKES THE CAKE! OUR STATE GOVERNMENT AND INDIVIDUALS WHO LEASE THEIR LAND CAN ONLY SEE $$$$$$$$$$$$$. NOT DRILLING DURING HUNTING SEASON?
WHAT ABOUT NESTING SEASON, MATING SEASON? IN A FEW YEARS, WILL THERE BE ANYTHING TO HUNT?
TAKE A LOOK AT THE EXPERIENCES OF SOME LAND OWNERS IN TEXAS, COLORADO AND YES, ARKANSAS. THEIR WATER WELLS HAVE DRIED UP OR BECOME POLLUTED. NEW ROADS TO WELLS LACE THE LANDSCAPE; THE CONSTRUCTION OF THOSE ROADS CAUSE SILT (AFTER HEAVY RAINS) TO DEPOSIT IN STREAMS AND THEY HAVE PIPELINE ISSUES.
ONE OF THE METHODS OF DISPOSAL OF CONTAMINATED WATER IS TO INJECT IT BACK INTO
DEEP, "SAFE" WELLS THAT MAY OR MAY NOT BE SAFELY LINED. I, FOR ONE, BELIEVE THAT SOME OF THAT WATER WILL FIND ITS WAY INTO OUR GROUNDWATER THROUGH CRACKS, CREVICES AND THE
POROUS LIMESTONE GEOLOGY OF THE FAYETTEVILLE SHALE. ADEQ HAS PROFESSIONAL AND
COMPETENT PERSONNEL WHO TRULY CARE ABOUT A HEALTHY ENVIRONMENT BUT THEY LACK
ADEQUATE FUNDING AND INSPECTORS TO EVEN BEGIN TO MONITOR ALL THE GAS WELLS IN
PRODUCTION.
WAKE UP ARKANSAS! YOUR WATER IS SLOWLY BUT SURELY BEING SPOILED. THE "NATURAL"
STATE WILL NEVER BE THE SAME. DO YOUR GRANDCHILDREN AND FUTURE GENERATIONS NOT MATTER?
Posted by: AuxArcAlice
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July 29, 2008 11:28 AM