Folks in Benbrook held out long enough and finally agreed to a deal with XTO Energy for a lease that will pay property owners a per-acre bonus of $22,500.
The Mont Del Estates Homeowners Association had been negotiating with both XTO Energy and Chesapeake Energy since the end of last year. Here's what we said about it at that time.
According to the signed lease offer dated today, here are more details of the lease:
- 25 percent royalty
- 3-year initial term with an option for another two years and another signing bonus then of $15,000 per acre
- Extra $12,500 will be paid by XTO to the homeowners assocation
- XTO will pay for a stone bench and will install it at the duck pond that is bound by Park and Mont Del. The bench is "subject to XTO's reasonable approval of the cost thereof."
- Property measured to the middle of the street
- XTO will located its drill site locations outside of an area bound by State Highway 183 on the north, Bryant Irvin Avenue on the east, Loop 820 on the south and the Trinity Rvier on the west.
XTO, which was represented by Carla Petroleum in the land lease, will hold a signing party within 30 days after it mails out offers to all homeowners within the group.
--David Wethe
Good post. I had only a short stint as a landman (the last in first out rule caguht me short right before the holidays). Nevertheless, it is not hard to see that the companies will look out for their own best interest, not that of the landowner. The leases are on their forms. They are written to protect the lessee and the operator, not the landowner.And now that I am representing some landowners, I see that negotiating these leases from the landowners perspective is challenging even when you are well-versed in the legal issues.
Posted by: Asma | April 24, 2012 at 01:20 AM