Frequently Asked Questions
This list of Frequently Asked Questions is provided by The University of Texas at Arlington. For individual inquiries, please contact Jerry Lewis, Vice President for Communications, at jerrylewis@uta.edu or 817-272-2761. Any questions regarding leases or royalties should be directed to Carrizo Oil & Gas, Inc. at 817-419-7352 or info@crzo.net.
These FAQs were last updated January 17, 2013.
GENERAL INFORMATION
Q: Why is UT Arlington involved in the exploration and production of natural gas?
A: The University is developing a significant, long-range revenue stream that is expected to provide vital financial resources and security for decades to come. UT Arlington is using royalties to improve educational opportunities for its students and to improve the overall quality of life for the greater University community.
Q: Who is doing the exploration and production?
A: UT Arlington is working with Carrizo Oil & Gas, Inc., a company based in Houston, Texas.
Q: What is the process for exploring for and producing natural gas in the Barnett Shale?
A: There are four phases in the process of exploring for and producing natural gas in the Barnett Shale. The Seismic Phase is the process of acquiring 3-D seismic information to evaluate the subsurface; the Drilling Phase is the process of constructing the drill site area and drilling through the subsurface; the Completion Phase is the process of fracture stimulating or "fracing" the well to allow the natural gas to flow; and the Production Phase, the quiet, long-term phase, is the process of producing the natural gas from the well and transporting it via pipelines to market.
SAFETY
Q: Is natural gas exploration and production safe for the environment?
A: UT Arlington and Carrizo are committed to an environmentally safe and responsible gas exploration and production program. Carrizo utilizes the very latest advances in technology on the UT Arlington campus and is in compliance with all local, state and federal regulations. Air, water and sound quality at the UT Arlington site are closely monitored and are well within local, state and federal standards.
Q: Is air quality safe at the UT Arlington site?
A: Yes. Air quality at the site is monitored closely, and air quality reports are consistently well within established standards. Reports and spot checks from the Texas Commission on Environmental Quality (TCEQ) and the Texas Railroad Commission continue to confirm this.
Q: What are the University and Carrizo doing to ensure safety?
A: Safety is the top priority for both UT Arlington and Carrizo. There are many ways Carrizo is working to provide a safe, clean, courteous and successful operation. First and foremost, they use state-of-the-science technology to ensure the safest possible operations. Security cameras and personnel are utilized at the pad site. Ongoing street cleaning and meticulous site maintenance also provides for a safe environment. Carrizo's emergency preparedness plan includes environmental and archaeological assessments, site plans, water plans, truck routes, insurance documentation, and equipment and material use descriptions. This extensive and comprehensive information gives the University the assurance and confidence to authorize Carrizo to continue to develop the campus site safely and reliably.
Q: What is being done to control noise at the site?
A: There are currently 22 wells at the site that have been completed and are in the Production Phase, meaning gas is flowing from the wells and being transported via pipelines to market. Therefore, there is minimal activity at or around the site. There currently is no active drilling or fracing at the site.
Q: What about increased traffic around the site?
A: During certain phases, such as the Completion Phase, there is more daytime truck traffic around the site. All 22 wells at the site are currently in the Production Phase, however, so there is minimal activity of any kind at the site.
CURRENT ACTIVITY
Q: Where is natural gas production taking place on UT Arlington's campus?
A: There is one pad site. It is located on the southeast corner of the UT Arlington campus in downtown Arlington.
Q: What phases of drilling and/or production are currently being conducted at the site?
A: Carrizo is currently involved in the Production Phase for all 22 wells at the site. There is no active drilling or fracing at the site.
Q: Who is receiving royalties from the 22 wells now in the Production Phase?
A: UT Arlington, as well as some of our neighbors in the College Hills neighborhood and other areas, regularly receives royalty checks from resources produced by the first six wells that went into production in November 2008. The 16 additional wells that have gone into production since April 2010 also are benefiting UT Arlington, but the primary benefit is to the property owners to the south and east of campus who have signed leases with Carrizo — including the Arlington Independent School District, the City of Arlington, and numerous residential and commercial property owners.
Q: How much revenue does the University expect to generate from natural gas production?
A: As most anyone in Texas knows, there are no financial guarantees when it comes to oil and gas exploration. UT Arlington receives a 27 percent royalty on natural gas extracted from University property. UT Arlington is using these funds to support undergraduate scholarships and graduate fellowships, faculty and staff recruitment and retention, and the campus master plan. These royalties are being invested and leveraged with private gifts through a program called The Maverick Match to achieve their maximum potential.
UPCOMING ACTIVITY
Q: What activity is currently taking place at the site?
A: Carrizo is currently involved in the Production Phase at the site, which mean gas is flowing from the wells and being delivered via pipelines to market. There are currently 22 wells in production. Six of those wells were completed in November 2008 and another 16 additional wells moved into the Production Phase between April 2010 and August 2010. There currently is no active drilling or fracing at the site.
Q: How long will the Production Phase last?
A: It's impossible to know for sure, but the extraction and production process for natural gas on campus could last up to 30 years, providing immeasurable benefits for the nearby community and generations of UT Arlington students.
Q: Is a compressor being used at the site?
A: Yes, an electric compressor was added at the site in mid-2012 to increase production volumes.
Questions regarding leases and royalties should be directed to Carrizo Oil & Gas, Inc., at 817-419-7352 or info@crzo.net.
These FAQs were last updated January 17, 2013.