Last week, Chesapeake Energy announced a cut-back in spending on natural gas operations by 17 percent. Now, Petrohawk Energy Co. of Houston, TX, has announced they will cut their capital budget by one third (half a billion dollars) and reallocate funds to the Fayetteville and Haynesville shale areas. Natural gas has dropped below $8 per million cubic feet. Accoding to gas producers, gas has to stay at that level for the Fayetteville Shale operations to remain profitable.