Oklahoma company to pay $181 million for drilling at DFW Airport

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Tower, " Eagle 1234, clear taxiway alph bravo and give way to oil rig to your right."
 
 
Oklahoma company to pay $181 million for drilling at DFW Airport
Associated Press
FORT WORTH, Texas - Chesapeake Energy Corp. will pay $181 million plus royalties for the right to drill for natural gas beneath Dallas-Fort Worth International Airport, under a deal approved Thursday by airport officials.
Chesapeake defeated an undisclosed number of other bidders for the right to drill on the airport's 18,000 acres.
The deal is awaiting approval this month by the city councils of airport owners Dallas and Fort Worth, but that is considered a formality. Oklahoma City-based Chesapeake hopes to begin drilling in 18 months.
Chesapeake officials said they plan to operate five rigs. The company would get access to about half the airport's acreage - flight paths, runways and terminals would be off-limits. But by drilling down and then out in L-shaped patterns, Chesapeake officials believe they can reach most areas under the airport.
Before drilling, the company will need permits from the Federal Aviation Administration. Oil and gas drilling has occurred at the Oklahoma City airport, and Chesapeake operates rigs at smaller airfields in Texas.
In addition to the upfront payment of $181 million, Chesapeake agreed to pay DFW Airport a 25 percent owner's royalty on the proceeds of any gas produced there.
The airport plans to use some of the proceeds to pay down its $2.7 billion in debt, including recent borrowing to finance a new terminal and runway.
Airport officials declined to identify other bidders or say how many there were. They said about a dozen companies received final bidding packages.
The airport sits at the eastern edge of the Barnett Shale, an underground formation that holds vast amounts of gas. Energy companies have rushed into the area in recent years, as the price of natural gas increased.
 
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