The East Trinity Mineral Lease Committee (Euless) reports this morning that it's agreed to recommend a lease with Carrizo Oil & Gas that includes a $19,000-per-acre lease bonus, 25.5 percent royalty, 3-year primary term, and 2-year extension option at two thirds the original bonus.
"Mortgage subordination fees will be paid for by Carrizo if they are required," the committee says in its announcement. The lease also includes no requirement of warranty of title.
"The ETMLC has effectively concluded negotiations," the committee says. "A contract is being drafted and reviewed and we look forward to our initial signings next week."
Dale Resources, which was competing for the lease, sent follow-up lease offers to homeowners earlier this week, offering a $17,000-per-acre lease bonus, 25 percent royalty, two-year primary term, and two-year option. This ended up confusing homeowners, the committee says, adding it is "mad as hell."