Here's the latest take from the Mistletoe Heights Neighborhood Association on Chesapeake Energy's new lease offers to the neighborhood. Chesapeake and its agent Four Sevens are competing against XTO and its agent Fort Worth Energy for leases on the South Side. This is an email from Norm Stemple, head of the neighborhood's gas drilling committee, to property owners:
Recently many of us in Mistletoe Heights (including myself) have received an offer from Four Sevens Energy to lease the gas under our property. In the next week or so you should be receiving a lease from Fort Worth Energy which has been approved by the MH gas lease committee. As chairman of the MH gas lease committee I urge you to wait and compare the two leases. It is the opinion of the gas lease committee that the Fort Worth Energy lease provides, in writing, the following key environmental safeguards that are not addressed in the Four Sevens lease.
1) drill site must be over 600 feet from any home in MH
2) no truck traffic associated with drilling on any streets in MH
3) compressor must be over 1000 feet from any home in MH
4) no gas transmission lines through MH
5) noise level is limited to specified decibels above ambient.
Three minor differences include:
a) mineral rights owner makes no warranty of title
b) royalty payments not reduced by "delivery, processing or marketing costs"
c) shut-in royalty is $25./acre instead of $1./acre
In comparing the two leases please consider the safeguards as listed above as very important.