The Grapevine City Council on Tuesday night discussed the possibility of amending the city's oil and gas well drilling ordinances. Chesapeake Energy requested to keep its fresh water pond after inactivity on its drill site longer than the city's ordinance allows.
As a result of economic challenges, Fort Worth-based Chesapeake Energy asked the council to consider allowing its fresh water pond to remain at the Grapevine Mills site for up to two years with a possibility of review for an extension of six months at a time.
In a Feb. 9 letter to the City Council, Chesapeake Energy spokeswoman Loretta Haldenwang said the fresh water pond is attractive and has received no complaints to date.
"This will afford the Grapevine Mills site the opportunity to retain the fresh water pond while economic conditions do not allow for its drilling, without having to rely on a less favorable water source when drilling commences," Haldenwang said. "We believe this measure will also allow the city to remain nimble enough to take action when necessary, while assisting Chesapeake to act responsively to market conditions."
In March 2010, the council allowed Chesapeake Energy's fresh water pond to remain on the site for nine months after fracturing operations. The city's original ordinance states that the pond must be removed within 60 days of fracturing the first gas well.
As part of the hydraulic fracturing or "fracking" process, a mixture of water, sand and chemical additives are pumped into shale formations to extract natural gas. Chesapeake Energy purchases the city's water, which it stores in the pond for quick access at the site.
Since December 2010, Chesapeake Energy has completed drilling and fracking of seven gas wells at 3015 E. Grapevine Mills Circle. Chesapeake Energy project manager Lynda Gearheart said her company wants to drill up to 10 more wells in the future, but has requested to keep the pond on site for up to two years due to the uncertainty of natural gas prices.
"They have stated they have no problem covering up the pond, filling up the pond and planting over it," Scott Williams, the city's Department of Development Services director, told the council. "But in the future when they drill and do hydraulic fracturing, they have to either re-dig the pond, which would bring in more heavy equipment and trucks, or bring in tanks to the site."
Chesapeake Energy has said removing the pond would be expensive and cause unnecessary noise in the area.
"It doesn't, to me, make a lot of sense to go to the cost of all the equipment, tearing down and having to build it back unless there is some health problems related to it," Mayor William D. Tate said.
"I agree," Councilwoman Darlene Freed added.
Instead of a two-year extension, the council discussed allowing an extension of up to one year and the possibility of review for extensions of one year.
"I don't have a problem with the two years as it relates to Chesapeake," Freed said. "The challenge that we have is that this ordinance affects any other drilling that we might have. I think for now, the year with a year of renewals is probably pretty reasonable."
Williams said next month he will bring a draft ordinance to the council for review.
"We would love to have two years, but we would certainly be satisfied with the contingency to evaluate based on performance," Gearheart said.