‘Waco Tries to Work With Landowners’

Company owns mineral rights in many counties

Morgantown Dominion Post
16 May 2011
By David Beard

Waco Oil & Gas is based in Glenville. Ike Morris, who has more than 50 years in the industry, is president. His son, Doug Morris, with more than 25 years of experience, is vice president.

Waco’s website says of them, “Together these two dynamic individuals form a leadership team that is second to none in our region. Their vision forms the basis of the company’s strategic plans. Under the guidance of Ike and Doug, Waco’s future is bright.”

A map reflects the company’s interest in leasing mineral rights in Doddridge, Gilmer, Harrison, Lewis, Marion, Monongalia, Ritchie, Tyler and Wetzel counties.

The Dominion Post mailed a list of questions about Waco’s Plum Run operations to Doug Morris, who oversees drilling and production, and discussed the questions in a phone interview.

The entire gas industry can get along with landowners across the state, he said. “It’s here to stay it’s not going anywhere. It could be a big shot in the arm for everybody.”

The state will benefit through increased taxes, more jobs, and people and businesses generating income.

Companies have to do it right, though, and keep the water and air clean.

Morris is a West Virginia native. “I was born and raised here. I love it. This is an opportunity we can all benefit from. I know I’m not going to make everybody happy, but at the end of the day I hope they respect me.”

Asked about complaints by Casey and Stacie Griffith, of Plum Run, Morris said he has worked with the couple for four years. “In the past, we’ve always been able to work each issue out.” Then they “get fired up on a new issue.”

Waco has worked with the Division of Highways on Plum Run Road problems. “It’s now in way better shape than when we first came.” They even widened a bridge.

“I’m sure there’s been some bad with the good. We hope to leave it better when we’re done.”

Right now, they’re in the middle of activity there. “Issues arise during high activity times.” Waco shut down for eight hours one day, and paid the whole crew standby time, in order to accommodate a funeral.

But when they’ve completed shallow programs, they’ve always reclaimed those areas. “We didn’t seem to have problems with people.”

“Waco tries to work with landowners every chance we get. We will be there for a long time. It doesn’t do any good to just come in and say, ‘We have the rights.’ You try to get along with people. You do the best you can do; when you walk away at the end of the day, you hope you’ve done that.”

Truck traffic problems happen, Morris said. The roads get muddy, and in wet weather, it looks worse.

During fracking, there’s lots of traffic, and there’s not much he can do about that. They knock on doors and try to give residents a day or two of notice. During morning and afternoon school bus hours, Waco keeps its rigs off the roads. It makes special accommodations on Sundays, too.

“It makes things go a little smoother. ... They live back there for a reason. I like small towns myself. An influx of trucks, that’s going to be a headache. I understand that. I hate that. We seek the quickest and safest best way in and out possible. It’s hard to make everyone happy.”

“We try not to be all about the money. But we have employees and we have to make money to keep them working — especially in the current economy.”

Natural gas prices are relatively low now — nationally $4.23 per thousand cubic feet (mcf) at the wellhead in February, down from a peak of $10 per mcf in mid-2008, according to the U.S. Energy Information Administration — and there’s not a lot of oil income as there was in Texas, where he worked for a time.

“We do it in the cheapest, most efficient way can do it. We do make the mess, but we are the ones that go in there and clean it up. I understand that they get upset. We listen and do what we can.”

Waco employs the best environmental practices available, Morris said. It uses closed-loop fracking — treating flowback water and hauling it to other drilling sites. That’s a new technology, and needs further refinement, but it’s “an all around winwin for the landowner and the industry.”

Waco has permits for five wells on the Donna pad — named for property owner Donna Fluharty — on Plum Run in Marion County. One is active, and Morris said they are getting ready for a second draw. Right now, they’re “looking at” the fifth well.

The pond on Terry Hendershot’s property at the edge of Griffiths’ property is a freshwater pond that will be used to frack the next well.

“You wish you could get along better with community landowners,” Morris concluded. “They can call us anytime. I hope I can give them the right answer. It may not be the one they want to hear.”