The Texas Railroad Commission (RRC) on Tuesday unanimously denied a request by Chesapeake Energy Corp. that asked for retroactive permission to continue drilling a horizontal natural gas well in the Barnett Shale in Fort Worth.

According to the RRC, Chesapeake drilled a 3,553-foot horizontal, or lateral, for the Ramey 1H well in eastern Fort Worth, even though the permit only allowed a lateral of 1,839 feet. The shorter lateral would have maintained the RRC’s required distance — 330 feet — from unleased property in the Barnett Shale.

Chesapeake admitted to the RRC that it had violated provisions of its state-issued drilling permit by extending the well farther than authorized and drilling the horizontal well bore too close to unleased property. Chesapeake, one of the Barnett Shale’s top producers, told the RRC that it extended the well to maximize gas recovery, and said it began drilling the well before the extension was granted to maintain its leasehold rights.

In a 3-0 vote, the RRC supported a staff recommendation to deny the drilling exception. Chesapeake was ordered to plug the horizontal portion of the well using a “retrievable bridge plug” set 330 feet from the first unleased tract. The Oklahoma City-based producer, one of the Barnett Shale’s top drillers, also may be fined for violating Texas drilling rules if the RRC moves forward with an enforcement action.

The extended well had been protested by some Fort Worth area property owners.

State Rep. Lon Burnam (D-Fort Worth) said the vote by Commissioners Victor Carrillo, Elizabeth Ames Jones and Michael Williams was “a pleasant surprise…They don’t have a reputation of standing up for the little guy. But they stood up to Chesapeake. I hope it’s the beginning of a change, but I’m not holding my breath.”

Chesapeake declined to comment on how the ruling may impact its Barnett Shale activity. The producer said it plans to file a motion for a rehearing before the commission. If the rehearing is denied, the company may file an appeal with a U.S. district court in Texas.

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