If you want to know the truth about Barnett Shale economics and the impact on communities, check out the latest blog post from Calvin Tillman, Mayor of DISH, TX.
As I investigated the source of the decline in my town it all started to become apparent. The property values not tied to minerals have continued to drop. I believe this is mostly due to the massive natural gas compressors, pipelines and metering stations. They have all but made the surface property here worthless; however, that does not account for the minerals which is over half of our taxable values. I then found that on average, each well drilled loses fifty percent of its production after the first year. That is a huge drop in production in only one year. So that tells me that the only way to maintain the same mineral value is to drill fifty percent more wells every year. So if you have ten wells this year, you would need to drill five more next year just to maintain the same production.
Calvin also busts the myth about the mineral owners who are getting filthy rich off their royalties.
You’ve got to read this very informative post to find out if the juice is worth the squeeze.