Advances in horizontal drilling made it possible to extend lateral wellbores approximately one mile – allowing energy companies to produce minerals in urban environments with minimal surface disruption. Moving drilling operations from cow pastures to municipalities requires sensitivity in every phase of operation. That’s why energy companies, like Chesapeake Energy make a significant investment in sound mitigation, safety and site security.
There are many safety and regulatory measures in place to ensure that natural gas drilling and urban communities coexist without incident. A system of checks and balances between local, state and federal agencies make sure that drilling and production operations are consistently monitored, supported and managed.
City ordinances mandate wellsite aesthetics, noise and traffic control. State regulatory agencies – including the Railroad Commission of Texas – govern drilling, production and pipeline operations while the Texas Commission on Environmental Quality monitors health and safety aspects of operations. On the federal level, the United States Department of Transportation, Environmental Protection Agency and the Federal Energy Regulatory agency all work to oversee the industry.
Pipelines are an integral part of producing natural gas. Without them, natural gas cannot be transported and sold at market to provide royalty payments, clean energy for home and commercial use, and the economic benefits Texas has come to rely upon.
Today, 270,000 miles of natural gas pipelines stretch across Texas. The construction of new natural gas pipelines and compressor stations have created 13,261 permanent jobs in Texas. They have also generated $16.3 million in tax revenue in 2008, 16 times greater than the $1 million generated in 2004. And with natural gas producers projected to remain active in the Barnett Shale for the next several decades,Texans will enjoy long sustained job growth as a result.
• $144 million in total revenue ($12 million per well)
• $24 million in royalties to residents
• $9.8 million to state and local taxing jurisdictions
• $20 million to local workforce and businesses
source: chk energy