Letter introducing projectSeptember 6, 1994
Mr. Gary Seib, Director of Planning
P.O. Box 478
Coppell, Texas 75019
I am writing the City of Coppell on behalf of my company, WDS Resources, Inc., to request the
assistance of the Coppell Council-Manager, the Mayor, and Council Members _in regard to our
proposal to drill and produce a ~Amitcd number of environmentally safe gas wells which can be a
boon to the treasury of Coppell and add a measurable degree of additional prosperity to your
general jurisdiction.
We understand our project will require a Special Use Permit in order for us drill in your
jurisdiction and it is in regard to this permit that we are asking for assistance. Since Coppelrs
potential tax revenue income, per well, is expected to exceed $380,000 over the life of a single
well, as explained in the next paragraph, we hope we can have the active support of the council
in regard to the project.
Our reservoir studies and data from the prestigious Gas Research Institute indicate that each well,
to be drilled to a depth of about 9200 feet, will produce an estimated 4 BCF (four
billion cubic feet) of recoverable gas over a span of about twenty years. Thc gas will have an
estimated value of about $4.00 per MCF (one thousand cubic feet); the gas commands a premium
because of its proximity to a major gas consuming market (Dallas-Fort Worth) and ready access to
a Lone Star Gas gas transmission pipeline now in place in your jurisdiction. Each proposed well is
predicted to yield $16,000,000 in gross revenue over its life and, at $2.3845 per $100 tax base,
Coppell's income from each of these wells is estimated at $381,520. Coppell would, naturally,
bear no cost of any sort at any time. The number of wells will, of course, be limited.
A few such wells would provide an additional income stream for Coppell and could translate into
significant relief for Coppelrs taxpaying citizens.
Many cities have ordinances providing a relatively simple routine for companies like ours to apply
for permits or special use permits yet the actual burden and expense of regulation remains
with the state and the federal government. Comprehensive regulations regarding oil
and gas wells are already in place since the industry has become more and more
highly regulated in recent years and now operates under the auspices of federal
supervision via the Environmental Protection Agency (EPA), Office of Safety
the ex ' d C ' sio C),
and Health (OSHA), and, ~tt~2t~rara~oh° ~fo~o:c~. S~o ~%$! D$~s.n~o~as~)ol~ water
(214) 661-8885 - Fax (214) 661-1618
quality agencies, and many others. Few other industries are so tightly regulated.
Everything we do, from staking the site to restoration of the land surface and replanting, is covered
by state and federal regulations, performance bonds, and, naturally, insurance.
I hasten to add that natural gas developers like ourselves add a good pinch of our own
serf-regulation to our activities. In thc case of the wells we are proposing in this area, we will be thc
field discoverer and as such we can, within reason, set limits on spacing of the wells. Conventional
practice would allow us to declare spacing for one well per one hundred and sixty (160) acres;
however, as the discoverer we will be limiting wells to one per three hundred and twenty (320)
acres. Such spacing ~nsuJates the ~x,~rorLment from harm, allows excellent ...........
royalty owners, and, due to the wide dispersal of the wells, the finished project will be relatively
invisible after careful berm and landscape treatments.
Current technology and practice allows us to drill a well, do the well completion work, move the
drilling and completion equipment off site, then restore or improve the landscape in a very short
time, usually thirty days, and often less.
Because we are producing gas rather than oil, we do not require heavy lifting equipment like pump
jacks. The equipment required to actually produce the gas (the well head) is very low
profile and small, typically about four (4) feet tall and about two (2) feet around. This equipment
presents itself in a clean environment (there are no greasy oil spills, polluted earth, etc. ---- this is
particularly true since we are dealing with gas rather than oil). The separation, storage, and transfer
tanks, always properly painted and well maintained, are also low profile being about ten (10) feet
tall and about ten feet six inches (10' 6") in diameter. We will screen all of the equipment so that it .'
is relatively invisible to the casual observer. Screening is usually accomplished by landscaping and
the use of earthen mounds or berms.
Once a berm is built up, more or less like a gentle rise creating a small hill, the berm is extended in
a circular fashion to enclose the equipment and hide it from view. The berm and the
surrounding landscape is enhanced with plants, shrubs, and trees native to the area. The zone
beyond the berm is then enclosed in a standard cyclone style security fence. The completed
attractive arrangement makes the equipment secure from intrusion, relatively invisible and, often, is
a significant improvement in regard to the original appearance of the site.
There will be no heavy truck traffic making daily trips to pick up oil since we will only be
producing gas which is delivered by pipe to an existing pipeline in your area. The only daily traffic
will be a petroleum professional making daily rounds in a car or pickup to check the site and verify
that all the equipment is operating properly and to insure that all the mechanical and engineering
safeguards are performing correctly.
In a nutshell, when we are drilling, there is a little extra traffic for a few days as equipment moves
in and out, then we restore or improve the surface and everything goes back to
normal. And, at that point, if we have had good fortune, the Coppell treasury will be receiving a
long term boost from the gas production.
WDS is and wants to be a good citizen. We are sensitive to the ecosystem and to the citizens of the
community. We would really like to see the citizens of Coppell benefit from the expanded tax base
which these wells can create.
I am enclosing inlbrmafion about our company and our employees for your consideration. Most of
all, however, I would appreciate an opportunity to personally meet with you and interested council
members so I can provide detailed information regarding this project and answer any questions.
Please allow me to urge you to put us on the agenda so that we can mutually take steps which will
allow this project and your potential tax base to take a giant leap forward.
WDS and its employees are at your disposal at any date convenient to you and the council
members.
Sincerely,
S,~or d Dvorin
Senior Vice President