Barnett Shale - Economic Impact

Economic Impact

As of September 2008, gas producers claimed bonuses paid to landowners in the southern counties ranging from $200 to $28,000 per acre ($500–69,000/ha, the latter being paid by Vantage Energy in the fall of 2008) with royalty payments in the 18–25% range. One lease in Johnson County now has 19 wells permitted.

A Fort Worth Star-Telegram article reported over 100,000 new leases were recorded in Tarrant County in 2007. Terms of recent leases have included $15,000 per acre ($37,000/ha) and a 25% royalty for homeowners in Ryan Place, Mistletoe Heights, and Berkley on Fort Worth's south side, and $22,500 per acre and a 25% royalty for a group of homeowners in south Arlington. More recent articles in the Fort Worth Weekly report that many signed lease agreements have not been honored, with lessors alleging that they were paid significantly less than promised or were not paid at all.

Drilling industry advocacy groups claim that by 2015 the Barnett Shale may be responsible for more than 108,000 jobs. Offsets to tax revenues may include cleanup costs for toxic byproducts of gas drilling, such as benzene and naturally occurring radioactive material (NORM). Environmental groups and state regulators have come under increasing pressure to begin forcing cleanups, and one group, the San Juan Citizens Alliance, has sued to force the EPA to tighten regulations. Ed Ireland, of the Barnett Shale Energy Council (an industry advocacy group) has said that he believes regulation will increase under the Obama administration, this is, as of 2012, yet to be seen.

In addition to the drilling work, an expanded gas pipeline network for transporting the gas to market is being sought. The completion of a 42-inch (1,100 mm) natural gas transmission pipeline through Hill County might open up new areas for drilling.