Barnett Shale

Burnishing Chesapeake's public image

Chesapeake Energy's been working overtime on its public image in North Texas.

The company is paying for newspaper ads and it purchased six hours of television time to air a 30- minute "newsmagazine" it's calling "Citizens of the Shale." The ads refer to the research of economist Ray Perryman, who is quoted saying "the payoff is there for everyone, and people are all seeing the benefit."

"Citizens of North Texas are talking about the Barnett Shale and its vast supply of natural gas," the advertisements say. "Some people are skeptics, some are opposed to any development. Many have concerns but simply need to learn more."

"Catch all sides of the Barnett Shale debate," Chesapeake says in its ads. Here's the schedule for the show:

• Saturday April 5. Noon-12:30 p.m. Channels 5 and 27; 5 p.m.-5:30 p.m., Channels 5 and 8
• Sunday April 6. 10 a.m.-10:30 a.m. Channel 11
• Monday April 7. 6:30 a.m.-7 a.m., Channel 33
• Tuesday April 8. 5:30 a.m.-6 a.m., Channel 33
• Wednesday April 9. 5:30 a.m.-6 a.m., Channel 33
• Saturday April 12. 5 a.m.-5:30 a.m., Channel 11; noon-12:30 p.m., Channels 5, 11, and 27

Chesapeake's Jerri Robbins says the company paid noone to appear, including Perryman, "nor did we coach them on what to say. It was an independently produced program."

As a tuneup to the programs, check in at star-telegram.com at noon Thursday for an unusual take on the story (We here in Business News had absolutely nothing to do with this, and we'll see it at the same time you do.) from S-T video blogger Kristin Campbell (that's her, pictured right) and multimedia guy John Metz, hosts of the Star-Telegram's new DaFoWo Show.

-- Scott Nishimura

(Photo: Star-Telegram archive)

S&P says Shale means cities will pay less to borrow

Standard & Poor's, the credit rating agency, is out with an interesting report. At the 30,000-foot level, S&P is interested in how Barnett Shale revenues will affect municipalities' ability to repay debts. In its report, at www.standardandpoors.com, S&P reviews a number of everyman (and everywoman) questions about the impact of the Shale. Among them:

• What's the significance of the Barnett Shale's gas reserves?
• What's the economic impact of the Shale?
• Have these windfalls led to any credit rating changes for municipal debt?
• How are these municipalities using their windfalls?
• What's the effect on residential property values?
• What does the future of the Shale hold for the quality of debt issued by area municipalities?

Click here to read the full report.

Click here to read our previous posts on how Fort Worth and Arlington have dealt with their windfalls.

-- Scott Nishimura

Shale spurs demand for offices, high-dollar homes

The Barnett Shale is fueling the need for more office space and spurring sales of high-dollar homes, market professionals speaking at the 2008 Tarrant County Commercial Real Estate Forecast said this week. Click here to read the full report from S-T staff writer Sandra Baker.

-- Scott Nishimura

Barnett Shale job fair Saturday

More than 20 oil and gas companies are meeting Saturday for the "World's Largest Barnett Shale Job Fair," 9 a.m.-7 p.m. at the Radisson Hotel Fort Worth South, Interstate 35E at Alta Mesa Boulevard.

The employers need to fill "hundreds of positions," the organizers said in a release.

"Demand for jobs is climbing and the available work force is low," Gerry Schlegel, president of LKCM Radio, one of the organizers, said.

Among the exhibitors at the fair: XTO Energy, Key Energy, Encana Oil & Gas USA, Multi-Chem, Crosstex Energy, Weatherford International, Halliburton, Frac Tech Services, Quicksilver Resources, Premiere Inc., ARC Pressure Data, and RSC Rental Equipment.

Exhibitors will take resumes, conduct on-site interviews, and answer questions about jobs available in the Barnett Shale.

Job openings include: professionals, geologists, landmen, field techs, oilfield workers, tanker drivers, welders, concreters, clerical and administrative staff, right of way agents, security personnel.

"New exploration trucks and equipment" will be on display in the parking lot. Sponsors: 95.9 Ranch, XTO Energy, Radisson Hotel Fort Worth South, Country Legends 92.1.

-- Scott

Omni condo sales benefit from Shale money

Barnett Shale money continues to move into local real estate deals. Robert Rowling, the Omni Hotels owner, said Monday that empty nesters, cutting horse owners and "Barnett Shale people" are driving interest in the 89 condos the company plans in its new downtown convention center hotel that's under construction.

About 25 percent of the project's 89 luxury condominiums have been spoken for in the form of refundable deposits, Rowling told a Fort Worth Chamber of Commerce group. The condos are averaging about $500 per square foot, he said.

Costs to outfit the units are not cheap, Rowling said. High-end amenities include floor-to-ceiling glass, marble countertops and hardwood floors.

"We didn't know if there was a market for $500-a-foot condominiums in Fort Worth," he said. "We are positive there is now. That's a relief because I'll tell you, we are not cutting a fat hog on the condominiums."

If he sells all of the units at $500 per square foot, the Omni is projected to make a 9 percent return on its investment, he said.

Click here for the full Star-Telegram story on Rowling's remarks.

-- David Wethe

(S-T photos: Omni model condo in downtown FW, archive of Rowling)

Barnett Shale resources

CURIOUS ABOUT THE BARNETT SHALE? HERE ARE SOME USEFUL LINKS:

CORPORATE

Carrizo Oil and Gas

www.askchesapeake.com (Chesapeake Energy site)

Colt Exploration

Dale Resources

Fleet Oil and Gas

Harding Co.

Holland Acquisitions

Paloma Oil and Gas

Potestas Corp.

Western Production Co.

XTO Energy

DRILLING ORDINANCES

Arlington (includes city gas drilling resource page)

Bedford (city's gas drilling page, including ordinance and property owner Q&A)

Bedford  (city's comparison of provisions in several area drilling ordinances)

Colleyville (city web site)

Fort Worth (includes city gas drilling resource page)

Grapevine (Type "gas drilling" in the search bar to find the ordinance)

ECONOMIC IMPACT/ENVIRONMENTAL IMPACT

Barnett Shale Economic Impact Study, Ray Perryman, 2007

The Economic and Fiscal Impacts of Devon Energy in Denton, Tarrant and Wise Counties, Bernard Weinstein and Terry Clower, University of North Texas, 2004

Public Perception of the Natural Gas Industry: Insights from Two Barnett Shale Counties, Sam Houston State University, 2007 (Johnson County results, Wise County results)

Credit FAQ: Why the Barnett Shale Gas Basin Could Benefit Texas Municipalities, Standard & Poor's, 2008

LEASE FORMS

Leases negotiated by the Berkeley Place, Ryan Place, Mistletoe Heights, and Tanglewood neighborhoods in Fort Worth

NEIGHBORHOODS

Arlington Neighborhood Network, City of Arlington site. Includes updated contact info.

Arlington neighborhoods, neighborhoodlink.com. Spotty, but includes some info, such as neighborhood association email addresses, that isn't on the city site.

Bedford neighborhood associations, City of Bedford site, includes updated contact info.

Benbrook neighborhood associations, City of Benbrook site. Includes updated contact info.

Colleyville neighborhood associations, City of Colleyville site, includes updated contact info.

Fort Worth neighborhood database, City of Fort Worth site. Includes updated contact info.

Grapevine homeowner associations. City of Grapevine site. Includes contact info.

Neighborhoodlink.com

ORGANIZATIONS

Barnett Shale Energy Education Council

Fort Worth League of Neighborhoods Gas Drilling Resource Page, including "Tips for Neighborhoods Negotiating Gas Leases."

FWCanDo (Fort Worth Citizens Against Gas Drilling Ordinance)

Texas Land and Mineral Association (represents mineral rights owner)

Trinitytrees.org

PUBLICATIONS

pegasusnews.com

Powell Barnett Shale Newsletter (paid subscription)

Real Estate Center at Texas A&M University (oil and gas publications)

texasinsider.org

GOVERNMENT

Railroad Commission of Texas, includes Barnett Shale resource page, information on regulations.

Tarrant County public records site (Includes lease/lease memo lookup so you can check out how many leases energy companies are filing in Tarrant County, and where.)

ROYALTY CALCULATOR

Fort Worth League of Neighborhoods gas resource drilling page

CONTINUING EDUCATION

TCU Energy Institute's Petroleum Land Practices Program

KNOW OF A GREAT LINK THAT'S NOT LISTED HERE? Let us know about it! snishimura@star-telegram.com