Drilling firm gets OK to take water from river

— Chesapeake Energy Inc. has obtained approval to remove water from the Little Red River in support of its natural gas drilling operations in White County.

The U.S. Army Corps of Engineers issued a permit to Chesapeake to install a water intake structure and rehabilitate a boat ramp on the river known for its trout fishing, the agency said in a news release.

The area north of Searcy also is home to the boom in naturalgas exploration and drilling in the Fayetteville Shale of northcentral Arkansas. Chesapeake said last month that the shale could generate $100 billion in direct expenditures by gas companies over the next decade.

The permit, issued under Section 404 of the Clean Water Act, requires several conditions before, during and after construction. The conditions stemfrom concerns expressed during the Corps' review that included comments from the public and various agencies.

Chesapeake will build the intake structure to draw water from the Little Red River and pump it about one-half mile west into a 25-acre reservoir. Chesapeake will use the reservoir to provide water for its gas well-drilling operations. To maintain the intake structure, the boat ramp will be rehabilitated for all-weather boats.

The Corps regulates the placement of fill material in the Little Red River under the Clean Water Act. In this case, the fill material will include a sheet pile cofferdam and associated backfill, intake structure and footings, large stones to encapsulate a 48-inch-diameter intake pipe and precast concrete slabs for the boat ramp, according to the agency.

The Arkansas Game and Fish Commission and the U.S.Fish and Wildlife Service told the Corps that the location of the intake structure is in a transitional zone that won't affect water quantity or quality in any way that would be detrimental to either trout upstream or native fisheries downstream.

The project "is not going to have much of an impact, if any impact at all" on the river and its fisheries, said Mark Armstrong, chief of the commission's fisheries division.

The water being removed is downstream from the agency's trout management area and above the warmer sections of the river - home to other fish species, Armstrong said.

The location is about 39 miles downstream from Greers Ferry Dam.

Under a permit obtained from the Arkansas Natural Resources Commission, Chesapeake will take water only during periods of high flow designated by the commission. Approximately,78,345 acre feet of excess water flows down the river annually, according to the commission. Of that, Chesapeake is allowed to divert 1,550 acre feet annually, according to company officials.

The intake pipe will be covered by a metal mesh screen to protect marine life and won't present a hazard to boaters, the company added.

From the holding pond, the water will be sent through a gravity-fed pipeline system into the nearby Little Creek field northwest of Searcy, where trucks can load from water hydrants for distribution at drilling and stimulation sites, according to the company.

The company hopes to have the pipe constructed and operating this year, said Paul Hagemeier, Chesapeake's vice president of regulatory affairs.

"We've taken great care with this project," Hagemeier said.

Arkansas, Pages 26 on 05/18/2008

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