Fayetteville Shale Brings Billions to Arkansas Governments
The Fayetteville Shale region in Arkansas has seen significant growth and benefits since the mid-2000s, with substantial revenue generated for local governments through gas development leases. Southwestern Energy, the leading natural gas producer, has been instrumental in this development.
The Fayetteville Shale formation stretches across the north-central part of Arkansas, with gas production dating back to the 1920s near El Dorado and Smackover. Road maintenance agreements with natural gas operators have limited direct costs to counties, while property tax revenues have surged due to increased mineral property values. This influx of cash has enabled infrastructure upgrades and new capital projects in cities like Morrilton and Clinton.
Despite challenges in workforce retention due to higher salaries offered by local gas companies, local officials interviewed largely considered the Fayetteville Shale development positive for government finances. In 2012, natural gas production reached nearly 1 trillion cubic feet per year, with 15 rigs drilling new wells in the region as recently as early February.
The Fayetteville Shale region's gas development has brought substantial financial benefits to local governments, enabling infrastructure improvements and capital projects. Despite workforce retention challenges, local officials view this development positively, with continued activity in the region.
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