Friday, October 21, 2011

Did we read that right??

Did Railroad Commissioners just stand up for THE PEOPLE and their property?

Against the industry?  Against their money??

Read the Fort Worth Star-Telegram.  YOU won't believe it.

The Railroad Commission has shown some spine.

Last week, on Chesapeake Energy's request to "force pool" some residential properties for drilling in the Glen Garden neighborhood of southeast Fort Worth, commissioners Barry Smitherman and David Porter politely but decidedly beat up on the big local company and its attorneys for belligerent behavior.

One of the arguments that Chesapeake's offer was not fair and reasonable was that it asked property owners who had not signed mineral leases to take a "working interest" in the well, under which they would share in the profits but would pay twice their share of the well's costs. It gave them 14 days in which to decide, and they were told they would be given a written copy of the agreement after they said they wanted to go that route.

Under questioning from Jones, hearing examiner James Doherty said, "To me, it just seems unfair on its face to expect somebody to commit to enter into an agreement that they've never been given the opportunity to see."

Since that didn't work, he said, he joined Porter in making the vote 2-1 to deny the company's pooling application.

The commission moved to a case in which Chesapeake asked for a "Rule 37 exception" that would give it more flexibility in drilling on 182 acres in Crowley.

"In the nine months I've been here," Porter said, "this may be the poorest fact case I've seen on a Rule 37 request."

It wasn't Chesapeake's day. The commission unanimously denied that request.

1 comment:

Anonymous said...

Finally! Maybe not all of our state government is wholly owned by corporations.