Grapevine homeowners report lease offers

Property owners in two Grapevine neighborhoods are reporting lease offers. A homeowner in the Shadow Glen subdivision near Glade Road and Texas 121, behind Delaney Vineyard, reports a lease offer today from Cimmaron Field Services on behalf of Chesapeake Energy. The terms: $3,000-per-acre signing bonus, minimum $450 per lot, 5-year term, 20 percent royalty, and no surface access operations.

A homeowner in the Creekwood Estates subdivision north of Parr Park reports an offer of $3,000 per acre and a 20 percent royalty. Check back for more updates on this offer.

Grapevine has been anticipating drilling for some time. The City Council stiffened drilling regulations a year ago.  (Click here to read Grapevine's gas drilling ordinance; enter "gas drilling" in the search bar.) Earlier this year, the Grapevine-Colleyville School District agreed to a lease deal with Chesapeake. And drilling is underway at Dallas/Fort Worth Airport, also under an agreement with Chesapeake.

Blogging the Barnett Shale wants to hear whether any offers are going out to your Grapevine neighborhood. Send an email to snishimura@star-telegram.com or use the "comments" section on the bottom of this blog post. Please give us the following information: bonus offer per acre, royalty, term, land company, drilling company, whether a specific drill site has been mentioned, and whether your neighborhood is organizing. If it is, please forward us the contact info for your neighborhood.

And, to really help us verify your offer, if you can, please fax us a copy of your cover sheet and lease form to (817) 390-7773. We won't publish information about your specific property.

Thank you,

-- Scott

(Archive photo: Annual Grape Stomp, Delaney Vineyards, Grapevine)

Comments

[TXsharon]

When I was researching leasing my minerals, I found information on NARO (National Association or Royalty Owners, including the names of lawyers who will review the lease. http://www.naro-tx.org/ They have a message board for Texas where you can post questions and get answers. You have to be careful because people in the industry closely monitor those boards and they will sweetly offer to help you with your questions in the same manner that the wolf helped Goldilocks.

Just remember that once you sign a lease, you can never take it back. Look closely at the real dollars ($40/month over a 30 year period) to see if it's worth it. http://www.fwbusinesspress.com/display.php?id=6746

[Margaret McEwen]

My neighborhood, Arbormont Estates, located on the north side of Glade at the corner of Glade and Euless Main, has also received offers from Cimmaron. $3,000 per acre, $450.00 minimum and 20% royalty. I trust the city of Grapevine has protected residential areas. Cimmaron told me they can drill without everyone signing on. No one is going to rich rich off another 5% royalty and few hundred dolars more in signing bonus. Our area has small lots. Can we afford lawyers and geologists to determine that we are entitled to more?

[Margaret McEwen]

My neighborhood, Arbormont Estates, located on the north side of Glade at the corner of Glade and Euless Main, has also received offers from Cimmaron. $3,000 per acre, $450.00 minimum and 20% royalty. I trust the city of Grapevine has protected residential areas. Cimmaron told me they can drill without everyone signing on. No one is going to rich rich off another 5% royalty and few hundred dolars more in signing bonus. Our area has small lots. Can we afford lawyers and geologists to determine that we are entitled to more?

[J.P.]

Where is Glade Manor in relation to Glade Crossing, Shadow Glenn, and Saybrooke? I know that our home owners associations are working together. Together I think the three are contiguous and a little under 1400 homes. I think the larger contiguos block we can get the better.

You can probably contact some of the representatives of our associations. I believe the info is on the Glade Crossing neighborhood web site. Also, there has already been a preliminary meeting but I believe they are planning another one in January.

[judge]

BH. people need your input. Tell them to Google Judon Fambrough at Texas A&M. He has an oil and gas leasing booklet they can download.

[Kevin Kalley]

I got the same offer (I'm in Glade Crossing). I jumped too soon and took a low-ball rate at one of my rental properties in Bedford. Also jumped, but then rescinded a low offer in Euless. I think holding out and banding together is our best bet. Someone in our area held a meeting this past Sunday, I found out about it too late to attend. But am willing to meet with neighbors at almost any time (although it will probably turn 2008 before I have a free evening.)

[J.A.]

We are located in Town Park. We also received the same offer: The terms: $3,000-per-acre signing bonus, minimum $450 per lot, 5-year term, 20 percent royalty, and no surface access operations.

[dfwdennis]

I attended one of the "meetings" tonight. It was basically a sit down with one of their representatives to convince me to sign the lease. I wasn't very thrilled with the level of information given to me. They did assure me that no drilling will be done in Parr Park (which is basically my back yard) due to the 1000 standoff requirement, but that was about all they would tell me. They said that the specific drilling sites are competition sensitive, and will not be shared.

I asked him what happens if someone doesn't sign a lease, and he basically said that if they end up drilling in the area then that person is just out of luck. This doesn't seem right to me. What is the implication of "hold outs" in a neighborhood?

I'm concerned about where the drilling would occur, and what impact there would be after the initial drilling phase, such as truck traffic to haul away toxic water byproducts, etc. Does anyone from an area that is already in production have any comments about this?

[D.G.]

I agree that we need to organize. IMO we should be looking at $15,000 per acre with a 25% royalty.

I plan on attending one of the "Community Meetings" this evening.

We need to get the word out to our neighbors to be patient and not sign the fist low-ball offer that comes along!

D.G. - Western Oaks Estates (Grapevine)

[dmd]

Here is a good article by the Star Telegram regarding what neighborhoods should do or least think about before signing a lease (Download_neighborhoods_organize.doc):

http://startelegram.typepad.com/barnett_shale/2007/11/neighborhoods-o.html

Here are some of the negotiated lease offers in surrounding DFW home additions (just copy the link into your browser):

December 10, 2007
http://startelegram.typepad.com/barnett_shale/2007/12/city-gets-highe.html

November 15, 2007
Western Production, acting as agent for Chesapeake Energy, has raised the bidding in central Arlington and Briarwood Estates, reports the Fielder Park Gas Lease Negotiation Group. Western is offering $6,000 an acre and 25 percent royalty, reports Bernetta Glasser, head of the group, which represents about 180 property owners. Carrizo Oil and Gas and its agent, Cheaha Land Services, started the leasing battle with an offer of $1,200 an acre and 23 percent. Glasser said her group has a meeting planned for Thursday evening. She can be reached at briarwoodestatesarlington@yahoo.com.

November 13, 2007
http://startelegram.typepad.com/barnett_shale/2007/11/fielder-park-ar.html

October 22, 2007
http://startelegram.typepad.com/barnett_shale/2007/10/more-more-more-.html

[dmd]

Is there any interest in forming a collective group to see if negotiating in mass might lead to a better offer?

A 5 year lease for what they are offering doesn't sound like much of a deal. Has anyone been to one of these Community Meetings to hear what Chesapeake (CFS) has to say?

[dfwdennis]

What are the laws related to leasing? Can a single homeowner prevent them from drilling? Where can we get more information?

[JL]

How to get a better offer? Don't sign. They can not drill with out the leases being signed. Wait. Don't have to sign. Competition will be comeing in. You might have to wait several months. Waiting is the name of the game.

[Trisha]

I lived in Glade Manor off highway 121 and received the same offer. Does anyone know how to get a better offer with Cimmaron. Do we need to sign the offer before the community meeting day.

[JJ]

We are located in Oak Creek estates and received the same offer: The terms: $3,000-per-acre signing bonus, minimum $450 per lot, 5-year term, 20 percent royalty, and no surface access operations.

HA! Right down the shredder it went too. Low Ballers!