Overton, Southwest Fort Worth Alliance groups endorse leases

XTO Energy and newcomer Vantage Energy have won the latest endorsements from southwest Fort Worth homeowners groups representing thousands of property owners. The Overton Park and Overton West neighborhood associations, representing more than 800 homes covering about 350 acres, have set a Tuesday signing for a proposed contract with XTO and its agent, Holland Acquisitions. That lease offers a signing bonus of $25,000 an acre and a 25 percent royalty rate. And Southwest Fort Worth Alliance, representing more than 6,000 acres, has started information meetings on its deal with Vantage Energy and Caffey Group, which offers $27,500 an acre and 23 percent royalty.

XTO offered drill sites in locations that should minimize traffic disruptions and met safety concerns sought by residents, neighborhood organizers said. Bob Dellamura, president of the Overton Park Neighborhood Association, said the lease is an improved version of one XTO signed last year with nearby Tanglewood Neighborhood Association, and XTO’s presence in the area made it an attractive choice. XTO also agreed to donate a total of $70,000 to the neighborhood associations and improvement projects when it obtains leases covering 85 percent of the area. The neighborhoods are generally north of Southwest Loop 820, east of Hulen Street and west of Granbury Road. Those two neighborhoods were previously part of Southwest Fort Worth Alliance, but went their own way after Alliance leadership clammed up as if their talks were state secrets. The northern end of Foster Park, while also officially part of the Alliance, likewise can go its own way and join the Overton/XTO lease. Alliance leaders eventually released details of their lease Monday morning. The group says its three-year deal includes provisions to protect property owners within 1,000 feet of certain operations.

-- Jim Fuquay

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[The Southwest Fort Worth Alliance]

The Southwest Fort Worth Alliance (SFWA) was first contacted by Vantage Energy on August 1, 2008. The SFWA negotiations committee first met with Vantage Energy executives on August 6, 2008, at which time Vantage Energy informed SFWA that Vantage Energy would be forwarding a formal written offer.

On August 15, 2008, The Overton Park and Overton West Representatives informed The Southwest Fort Worth Alliance that they were choosing to opt out of SFWA and that they had both, earlier that day, chosen to sign an XTO Letter of Intent drafted on August 13th and then signed by them both on August 15th.

The Southwest Fort Worth Alliance later received a first written offer from Vantage Energy on August 18, 2008. The August 18th Vantage Energy written offer included a memorandum of understanding of confidentiality, regarding the offer itself. SFWA honored this confidentiality only beginning on August 18th, as the Vantage Energy offer’s superior financial and contractual terms, which include a True No Cost royalty, were valuable enough to SFWA’s residents to merit such adherence.