Where exactly is DISH?

1. Where exactly is DISH?

2. Where is DISH? • DISH is located in North Texas. Just north of the Texas Motor Speedway, in Denton County approximately 25 miles directly north of Fort Worth • DISH has a geographic size of two square miles and a population of about one hundred and eighty • Including our extra territorial jurisdiction, the population increases to roughly five hundred

3. Who is DISH? • DISH was originally incorporated as Clark in 2000. • In 2005 the name was changed to DISH in exchange for ten years of free dish network. • The media coverage of this name change was comparable to Apple’s release of the iPod. • DISH’s annual budget is around $70,000.00

4. The Barnett Shale • For the past several years has been the most active natural gas shale in the United States. • During the boom just a few years ago added 8-10 Billion Dollars annually to the Texas economy. • During the same period the Barnett Shale accounted for 100,000 jobs in Texas.

5. Town of DISH: Grand Central Station of the Barnett Shale • Eleven high pressure natural gas pipelines converge on DISH. • Five companies have installed eleven natural gas compressors as well as associated treating facility. • Home to four natural gas metering stations. • Around eighteen natural gas wells, inside our corporate limits. • Fifty plus wells just outside of our corporate limits.

6. DISH Compressor Stations

7. Five Separate Compressors? • Enbridge – Originally permitted September 2004 • Three compressors, 1250 HP, 1232 HP, and one electric powered • Glycol Dehydrators, and an oxidizer. • Energy Transfer – Originally Permitted October 2006 • Four 1680 HP compressors, amine unit and dehydrator reboilers • Added two glycol dehydrators October 2008 • Atmos – Originally Permitted by Energy Transfer November 2005, purchased by Atmos May 2007 • Two 3550 HP compressors • Chesapeake – Originally Permitted January 2008 • Two compressors, 1380 HP, 1340 HP, and a 1250 HP Generator • Crosstex – Originally Permitted November of 2007 • One 620 HP compressor

9. Odor • Complained about odor for over a year. • Industry and state regulatory agencies alleged odorant was cause of smell. • Odor increasingly got worse. • Industry performed study.

10. Industry Study • After several complaints from the town of DISH, five operators performed a joint air study in the vicinity • The industry study showed no major leaks that would cause odor • The industry did not look for any specific chemicals or toxins • Quote from study “no natural gas leaks were found that would be detectable to the human nose”

11. DISH Air Study • Town of DISH paid approximately 15% of our annual budget to have an independent air study . • Quote from air study: • “Laboratory results confirmed the presence of multiple Recognized and Suspected Human Carcinogens in the fugitive air emissions present on several locations tested in the Town of DISH”.

12. DISH Air Study • Study was performed by Wolf Eagle Environmental • Samples were taken at seven locations on private property • All but one of the samples showed exceedances of Effects Screening Levels (ESL). • A total of sixteen toxins were above ESL • Several toxins exceeded both short term and long term ESL

13. DISH Health Assessment • Assessed 31 citizens and former citizens of DISH. • Citizens answered a questionaire • 61% of the health affects reported are known health affects of the chemicals detected in the DISH air study. • These health affects include: difficulty in breathing, brain disorders, chronic eye irritation, dizziness, frequent nausea, increased fatigue, muscle aches, severe headaches, sinus problems, throat irritation, and allergies.

14. Drilling

15. Drilling

16. Drilling

17. Drilling • The town of DISH once got 60% of its property tax revenue from minerals • The average well loses 50% production after the first year • Mineral leases range from $75.00 to $30,000.00 per acre, and 12 to 30 percent royalties • Many times there will be a “mole” who gets a small percentage of all minerals in a leasing area • Depending on the lease signed your royalty checks will vary dramatically. • In DISH one person who has 25% of the minerals on 14 acres, gets $150 to $200 a month on average

18. Drilling • In Texas drilling is getting closer and closer to residential homes • Many in Texas are subject the “split estate” • Mineral owners rights are dominant in Texas • Most who have owned large parcels of property and sold their minerals have moved elsewhere once drilling started • We should recognize that there need to be setbacks from residences

19. Green Technology • Drilling can be accomplished using “green completions” • Gathering line in place prior to drilling • No flaring • No pit for drilling waste • Vapor recovery on condensate tanks and other emission sources • Zero emission dehydrators • Pneumatic valves

20. Hydraulic Fracturing

21. Hydraulic Fracturing • Used to fracture the shale to release the natural gas • Process is exempt from the Clean Water Act • Reportedly that over 250 chemicals are used in the process • Of the chemical found, over 90 percent have negative health effects • Operators do not have to disclose the actual ingredients used. • Each well site may have a different mix, and therefore each chemical may not be used at a particular site

22. State Government Considerations • Immediately impose a severance tax on minerals • Develop a separate group from the environmental group to perform permitting function • Develop regulations that require green completions • Regulations should also require the latest green technology on all aspects of natural gas production

23. Local Government Considerations • Develop ordinances related to oil and gas exploration prior to permitting any wells. • Local Ordinances should require road use agreements • Local ordinances should require green completions • Understand that there are places that should be off limits for drilling. • Wells should not be located in school playgrounds, and pipeline should not be run through front yards

24. Recommendations • Impose a severance tax • Require green completions • Require the latest emission lowering technology, including vapor recovery, and zero emissions dehydration, and pneumatic valves • Make some areas off limits for gas exploration • Work together in groups when signing leases • Do not be the mole, working against your neighbors • Do not issue another permit until these things are accomplished

25. Contacts • www.townofdish.com • Calvin Tillman, (940) 453-3640, tillman4council@aol.com • www.ogap.org • http://baddish.blogspot.com/ • www.nctca.com • http://www.nidellaw.com/