Arlington may add staffers to handle gas leases

ARLINGTON — The city’s proposed budget includes two new positions designed to handle Arlington’s growing gas well business.

Both positions — a well inspector and a real estate representative to oversee the city’s mineral interests — would be funded by gas lease revenue, not the general fund.

Next month the City Council will vote on the fiscal 2009 budget, proposed at $198 million. The fiscal year begins Oct. 1. Staff writer Susan Schrock reports, 5B

Arlington officials plan to add two new positions to help manage the city’s growing involvement in natural gas drilling.

Gas wells

Companies are tapping into the Barnett Shale natural gas field at a growing rate across the city. Arlington received applications for seven wells in 2006, 40 in 2007 and 32 so far this year, city officials said.

Gas well inspector

The city now relies on a consultant to verify that drilling sites are set up properly, but the sites are typically not reinspected unless the city receives a complaint about problems such as noise, vibration or water usage, said Jim Parajon, director of community development and planning.

The well inspector would monitor drilling sites from pre-construction all the way to gas production, Parajon said. He or she would also ensure that companies follow any special conditions included in the drilling permit, such as limitations on noise or the routes heavy trucks are allowed to take to access the site.

"We get complaints about noise, we get complaints about dust, we get complaints about people tapping into water they are not supposed to," Parajon said. "This position is intended to protect the businesses and residents of Arlington and provide a proper monitoring mechanism for drilling operations that will occur in the city."

The position is budgeted at $92,050 a year. Fort Worth has three gas well inspectors and expects to hire another, said Kristen Roberts, a spokeswoman for the Planning and Development Department.

Gas leases

Arlington started leasing public land in 2006 and now has 19 leases on 4,736 acres, said Roger Venables, the city’s real estate manager.

Arlington has collected about $51 million in bonuses, royalties and seismic permit fees. Most of that has been placed into an endowment managed by the Arlington Tomorrow Foundation, which awards grants to nonprofits and city departments for such initiatives as public safety, neighborhood enhancement and the arts.

Real estate representative

The real estate representative would prepare city land for gas well leases and ensure that incoming royalty checks are distributed to the correct departments. For example, gas revenue generated from parkland must be reinvested in the parks department.

Arlington’s real estate and city attorney’s offices now handle mineral rights and lease-related duties.

The city has an estimated 1,000 acres still available for lease, Venables said.

The position is budgeted at $78,478. Fort Worth has a staff that handles its mineral interests and leases.

Staff writer Mike Lee contributed to this report, which includes material from the Star-Telegram archives.