More on XTO vs. Chesapeake bidding battle

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.

-- Scott

Comments

[R. Reese]

What happens when you sign early, with the only company ofering leases and then a second company comes in later and negotiates with Neighborhood Assoc. for lease rights? Are you left out in cold or are your leased rights sold from one company to other bringing you back in to pooled area?

[B. Humphries]

The mayor needs to be told that this great city will need a permanent Boundry task force inplemented because of all the
stipulations, demands and concessions being given to neighborhood
boundry associations for leases. It can come out of the 10 million
dollars the City has socked away from gas leases. Because of the
en-equities in Bonus payments, how can there help but be a war over
this? People have the right to protect themselves and their property
from others.

[B. Humphries]

Yea well, just keep it all in your neighborhood, sounds tricky to me. you want wells, you want royalties but you want no trucks on
your streets? who's streets are you wanting them on? No gas lines
in your neighborhood to transport the gas from your wells? who the
hell else wants them for you? No compressors within 1000 feet of
anyones house? sure hope you people have plenty of acreage to spare.
Keep it all in your own damn boundries or be ready to pay the piper
sooner rather than later.