Bedford-Colleyville-Grapevine deal with Titan suspended

Titan Operating today informed Bedford-Colleyville Mineral Rights Coalition that it plans to re-examine its
leasing strategy given the recent turmoil in world economic markets, the homeowner group reports. "Therefore, effective immediately, all signing sessions previously scheduled by BC-MRC have been suspended," B-C MRC said in an email to members. According to the email, "Titan has indicated that it will honor all executed lease agreements for which a bank draft has already been issued, including those signed Saturday, Oct. 18 at a scheduled signing session in Euless. According to Titan, it plans to suspend leasing on a temporary basis pending an executive management meeting and possible discussions with its financial partner(s).  Titan has indicated they will communicate the results of their
discussions to BC-MRC at the conclusion of its review process." 

Titan follows similar moves by Chesapeake Energy, Vantage Energy and XTO Energy in the past week as producers struggle with both falling natural gas prices and a tight credit market. Titan is backed by Riverstone Holdings, a private equity group that also has a stake in Vantage Energy.

-- Jim Fuquay

Comments

[FWIW]

Titan is calling folks and trying to sign them up. Person calling said they were going to drill and offered $3000 per acre signing bonus.

[DRILL BIT]

HOLD OUT GET LEFT OUT

[Bryan Burgess]

I have remained informed throughout the process. I have received a number of emails that kept me in the loop throughout the summer and in the last month. All of the recent emails led me to the coalition's home page, bc-mrc.org, which even as I type this has not a single link to the contact information page that you provided in your post. I was simply stating that there was no contact information for the coalition's home page and, as best I can tell, that is still true. Thank you for providing me with that information.

I feel I owe no one an apology. I'm sure the leaders of the coalitions are of the utmost integrity and I greatly appreciate their hard work to get the deal with Titan. What I do not appreciate is their communication during the days leading up to the termination. To suggest they did not behave reckelessly is to have your head buried firmly in the sand.

I appreciate the passion in your post and its attempt to put me in my place, but I can't help but notice that you didn't address any of my concerns or questions. Either you're not a member of the coalition's leadership or you are in complete denial about what has transpired in recent days.

[Charles Powell]

This is nothing more than a ploy by these gas drilling companies to get the leasing prices down so that when the prices of natural gas do rebound, (and they will rebound) they can come in and make a killing. This is where every City Council and Mayor in Tattant County should get involved and hold these peoples feet to the fire. This is our property, not theirs. They need us in order to develop this gas vein. If they are shut down they will eventually have to start paying on leases already signed and if they are not drilling, bad business for them. Of course Colleyville City Council has already bailed out on its citizens. How many more City Councils will follow suit? Also, How did they get THEIR $25,000 bonus after the lease signings were suspended for the citizens af this ares?? CAN SOMEBODY PLEASE EXPLAIN????????????

[Oliver]

Bryan Burgess did not say anything out of line, nor did he say anything a lot of other folks have not wondered about.

Fact is, if the self-appointed leadership of BC-MRC had been paying attention to collapsing gas prices and declining stock prices of the gas companies since the middle of the summer, it would have realized that obviously lease amount offers of $20k, $25k and up were going to end soon. They should have accelerated negotiations and wrapped up an agreement weeks sooner. Why didn't somebody try to reign things in? Everybody could been signed to a nice offer by now. But no.

[LINK TO CONTACT INFO]

Mr. Burgess,

Contact info has been readily available to those that remained informed throughout the entire process. But, see the url below if YOU feel the need to vent to someone within the leadership team.

Sir, unless YOU were a volunteer, YOU can't possibly understand the amount of work, and hard-earned personal money that was put into this entire process, only to have it come crashing down in the final stretch.

No one is as disappointed as the small group of volunteers that would have made this agreement possible for YOU.

To question the integrity of the leadership of your group, after so many worked so hard for YOU, is irresponsible and foolish.

YOU, sir, owe these folks a public apology.

[Bryan Burgess]

I have to seriously question whether or not the leadership of the BC-MRC has even a shred of common sense. Even as Chesapeake, XTO, and Vantage were suspending or curtailing their leases, the BC-MRC leadership continued to send emails and post messages reassuring members of the coalition that Titan intended to continue signing leases. I received a reminder of my scheduled signing time only 14 hours before the email announcing the suspension was sent. Where is the common sense? Prices are falling, other operators are suspending or curtailing leases, even one with the same financial backers as Titan, yet the leadership of the BC-MRC rather ignorantly proceeded to reassure their members that this wouldn't happen to them. I don't blame them for this happening, but I do blame them for recklessly leading the coalition on without regard to what was going on in the marketplace. Why should I have any confidence in their ability to negotiate on my behalf in the future?

Unfortunately, this is one of the only avenues that members of the coalition have to express feedback about this situation. The coalition's website has been stripped down to only a notice concerning the suspension. There is no contact information available for any of the leadership. I realize that they are victims in this as well, but why have they chosen to shut themselves off from the members of the coalition that they lead?

One other question: Were members of the leadership given the opportunity to sign before the scheduled signing date of their subdivision? Were they unjustly given the chance to get ahead of this suspension that could easily be foreseen?

[DRILL BIT]

Your Lease signing with Titan is over and Done with, Hold Out Get Left Out, You missed the Bus.

[Bedford resident]

Titan uses the word "temporary" Does anyone feel as through this is the case and that they will be able financially able to continue any time soon? My neighborhood is part of a coalition that has endorsed and begun signing leases with Titan.