And a fine predicament this is.
Just Friday, SEAPO (Southeast Arlington Property Owners) leaders announced they won an area neighborhood record $22,000-per-acre lease bonus, 25 percent cost-free royalty, and other provisions with Paloma Resources, which is signing leases there on behalf of Chesapeake Energy. The deal was done through a sealed bid process.
The bonus offer by itself has set Arlington abuzz this weekend. But now, neighborhood leaders confirm that agents for the rival Carrizo Oil & Gas have been going door to door over the last few days, offering a lease with a $25,000-per-acre signing bonus and 25 percent royalty.
Jim Colley, a lead SEAPO organizer, says the agents working on behalf of Carrizo portray their offer as better. But he said the situations aren't the same. The Paloma deal was one won through the bidding process, he asserts, while Carrizo's proposal is just an offer. The Paloma deal now has an inferior bonus, Colley concedes, but the "back end" will cost more, because the Carrizo-offered royalty subtracts production costs, he said. The Paloma royalty does not.
"Our people are pretty well educated" and will recognize the differences, Colley said.
-- Scott Nishimura