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Can Williams Be Trusted? PDF Print E-mail
Written by Will Evans   
Wednesday, 25 August 2010 23:03

The Town Council of Double Oak has a big decision to make on September 7 whether or not to allow the conditional approval of five gas wells operated by Williams Production with a provision for 10 more.

The Planning and Zoning Committee's conditional approval of the Meese Special Use Permit (SUP), left many residents wondering how the town was going to be able to legally enforce any conditions without the proper ordinances in place.

During the August 16 meeting, Town Attorney David Berman advised the Town Council that he did not think Williams Production Gulf Coast would be inclined to adhere to the conditions set forth in the P&Z’s decision.

Clearly, there appears to be an issue of trust. A good attorney like Mr. Berman will tell you to get it in writing and make it enforceable.

It is well known that Williams Production does not have an exemplary track record operating locally. With three major spills of toxic production water in Flower Mound since March of this year - the largest being as recent as August 18 where 8,000 gallons of fluid leaked onto the ground. With such a close proximity to homes in Double Oak, a similar spill would have dramatic consequences.

In respect to Williams' nefarious track record, it comes down to an issue of trust to allow drilling activity in Double Oak. The Town Council must exercise due diligence to the extreme when making this decision. This should not be an act of blind faith.

Like most commercial enterprises, gas drilling operations are about profit margins. A few years ago, Williams sent out letters to Double Oak homes offering mineral owners a $4,000 per acre signing bonus with a 25% royalty. Red Oak challenged the offer with $8,000. Sensing financial opportunity, the Double Oak Gas Committee (DOGC) was formed with the mission to haggle for more and was eventually discussing an $11,000 bonus if the committee could guarantee 95% participation. That never happened and those days are long gone.

Admittedly lacking in certain qualifications, the DOGC was not able to come to terms with any deep pocket entity and the mineral owners of Double Oak lost out on the best opportunity for a sizable bonus. Today, mineral owners in our area may expect $2,500 to $3,000 per mineral acre and 22% royalty. A sharp difference from the $11K discussed a few short years ago. 

It should be of no surprise to note that third parities often receive a percentage as payment for delivering signed lessors. Such practice is common and it would be prudent to inquire or better yet, retain an attorney prior to signing any legal instrument. Be wary of any individual pressuring you to sign with the argument, "They're going to drill anyway, so you’d better sign!" or "You don't want to miss-out on this. It's free money."

Again, when dealing with a third party directly and indirectly, it's completely about trust. A gas committee or any third party is not looking out for your best interests. Do your homework and get an attorney.

With deadlines for expiring leases in Double Oak rapidly approaching, Williams stands to lose much of its stake if it can not execute the wells it promised to drill within a short time frame. Perhaps that is one reason for such haste and lack of detail in the SUP. Perhaps that is why Williams will promise to meet the conditions of the P&Z with out being legally obligated.

Let's not forget that BP's haste and carelessness were directly responsible for the oil spill disaster in the Gulf.  So if you don't trust BP, you shouldn't trust Williams.

What the Town of Double Oak needs to recognize is that this well site will be there for a very long time and without the proper restrictions and ordinances in place, the risks far exceed the rewards.

As drilling activity in the area increases, it is important that communities such as Double Oak do the right thing and protect all residents from any known hazards or potential harm. That is why we enact and enforce laws. Laws are made to protect the innocent. Ordinances are made to protect the community. The lack thereof does neither.

Think about it this way, all throughout the State of Texas you can't talk on your cell phone while driving through a school zone, but you can drill a gas well as close as 200 feet from it.

Let your elected leaders know that there needs to be legal and meaningful changes.

Will Evans
Double Oak, TX

 

Comments  

 
+5 #12 2010-09-03 07:21
Will - Keep working with your council, they do want to protect residents but Austin and DC is where changes must happen. Ladd crosses the civility line often and this is not good for community cohesiveness or productive solutions. You and others in D.O. may feel the temptation to support single-issue council candidates who are willing to stand up and say “elect me; I will stop those gas drillers”. But when they get in office they will soon learn they have limitations on what they can actually do and you will miss valuable time fighting in the right venue. State and Federal laws trump municipal ordinances.
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+2 #11 2010-09-02 21:48
Ladd,
I understand where you're coming from, but I would like to go on record that I don't share your sentiment about the Double Oak Town council.

I can assure you that Mr. Miller has gone above and beyond to understand the issues. We may not agree on every issue, but he is informed and has asked some rather difficult questions to parties on both sides.

It's very fortunate that any town has dedicated public servants like Tracy who are willing to rise to the occasion and tackle the tough issues.
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-5 #10 2010-09-02 08:15
wish they would extract your gas, Biro
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+2 #9 2010-09-01 22:17
Will, it's frustrating to read your terrific op-eds, because it's so clear that Double Oak is simply lagging Flower Mound by a few months. You even seem to have your own breed of ignorant council members who toss out the same tired phrases like "fear mongering" fed to them by the drillers. They, undoubtedly, will soon be shown the door by an angry electorate, but perhaps not before they can do irreparable harm to the town they were elected to serve and protect.

Wake up, Double Oak. The clock is already ticking, and the drillers have their game plan in play. They're counting on you to remain uninformed just long enough to get their dirty claws into your minerals to the point that you can't possibly extract them.

They are driven solely by their profits. They could care less about your town, your environment, your property values or your health and safety. They want to extract your gas and take off as quickly as possible.

Please, listen to Will.
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+5 #8 2010-08-31 14:52
Answer to your question Will.
No, Williams can't be trusted. They are just like the rest. Some of the blame should fall on our State and Federal Agencies that are responsible for the regulation of the industry.
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+7 #7 2010-08-30 08:44
Tracy, we appreciate your hard work on the Council. I really think you are trying to understand the big picture.

The fact is that gas drilling is not 100% fool proof nor is it 100% safe.

Yes people are fearful and I'm sorry but you can't expect them not to become emotional about this. It's not always about cold facts.

Sometimes it's about wanting to live the remainder of your life in the home you and your wife built 30 years ago.

For others it may be about wanting to raise your kids in a healthy and safe environment and being committed to doing whatever you can to assure that.

The fact is Williams did have three spills since March, the largest being less than two weeks ago and you insist that they are our "best option" (your words).

I would have to disagree and I base that on fact. It will happen again. I just pray it does not happen here.
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-8 #6 2010-08-29 21:24
I am a Council Member of Double Oak and I've looked an all the pads in theare and extended area as well as done loads of homework. There is alot of fear mongering on certain sides with little data to suppor the allegations. Williams being called unethical is unfare and slandorous. Let's focus on the facts and the data not the emotion.

I bet few on the oposition have looked at sites and really spent time other than reading Susan and Sharon's blogs.
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+11 #5 2010-08-28 09:10
Will thanks for connecting the dots. I get the sense that you want to do what's right for your town. Us Lantana folks don't have much of a say so in this but I assure you that we appreciate you watching out for us.

I'm not sure what your zoning people approved but if what your town attorney's statement is
correct then I would not trust them. Personally I would like to be assured that the emissions are taken into account. Prevailing southerly winds will drive that toxic vent gas straight into our neighborhood.
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+11 #4 2010-08-27 20:51
"Spilliams" cannot be trusted. If the past is the best predictor of the future then Spilliams will continue to take advantage of our communities, at our expense.
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+11 #3 2010-08-27 14:09
That's 22% is after expenses - so in reality, it's more like 10- 13% . Williams gets theirs off the top.

After getting double taxed on it - income and property tax (that's right you have to pay Double Oak, LISD and Denton Couty) - your net may average about $40 a month.

Then factor in the loss in property value should you be one of the unlucky home owners who live close to this mess, increased overall water costs - subsidizing Williams' drilling operation and you'll come out a loser!
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