Colleyville residents fault council for approving gas deal

A familiar site at local City Council meetings — angry residents rebuking council members over a natural gas drilling issue — took on a new twist in Colleyville Tuesday night.

More than 50 residents urged the council to postpone a vote on leasing the city’s mineral rights with Fort Worth-based Titan Operating because the company had abruptly suspended signing leases with residents the day before. Residents wanted the council to pressure Titan to resume leasing activity with a local homeowners group before agreeing to vote on the measure.

After a tense two hours, the council voted 5-1 to approve the deal.

Mayor David Kelly and the council could not ignore the offer before the city — a $25,000-an-acre bonus and 25.5 percent royalty, giving the city a $7 million bonus for its 280 acres. Titan also agreed to donate $200,000 to the city’s parks department.

There was also a legal quandary. City Attorney Matthew Boyle advised the council that they could face criminal prosecution if they chose not to approve a measure that would benefit the city financially in order to help residents involved in private financial matters.

“I enjoy serving you but I’m not going to jail for you,” Councilman Tony Licata told the packed council chamber.

Councilman Tony Hart, the lone opposing vote on the measure, echoed citizens’ comments when he said that the deal wasn’t necessarily the best the city could get because the natural gas market could rebound in the future.

“The only thing we’d be losing out on is possibly a couple of million dollars,” Hart said. “I’m willing to roll the dice on this personally.”

Residents said they would not forget how council members voted on the issue, with a handful of people discussing a recall campaign.

-Aman Batheja

Comments

[s bianca]

OK, I give up. Looks like you're correct, BC. Size of unit depends on what type of well a company is trying to drill. Just because I haven't experienced shallow drilling doesn't mean it isn't being done somewhere.

[Mike]

Wa wa awa

[meredith]

wow bianca you really dont know s**t 640 acres is the largest size a unit can be, not what you need to drill. i am tired of all this ignorance on this page.

[BC]

Information you have received is not true. Here is a link to a website that answers these types of questions. http://en.allexperts.com/q/Oil-Gas-3147/mineral-lease.htm
Good Luck!

[s bianca]

You must have at least 640 acres to form a unit. You can confirm that with the Texas Railroad Commission. The homeowners who signed at the scheduled sessions only made up 500 acres of land, according to the web site of the BC-MRC. By the way, I didn't say I would join any legal action -- if one occurred. But there are individuals or groups who might take this course of action. I never count on anything until I have ink on paper and a check that clears the bank. But it just seems to me that Titan didn't handle themselves well. I look bemusedly at some of their business decisions, knowing that there will be other opportunities for homeowners in the future as they are not the only player around.

[ck]

I have read the comments and my issue is with people calling the BC-MRC members greedy. A coalition was formed, people joined, members worked long hours to provide the best deal possible.

A companies provided a deal amd the BC-MRC picked the best deal for its members.

Titan started the signing process, then when they saw a market down swing they decided to delay signings. But, then after the announcement signed the City of Colleyville.

We were taught as children once you give your word you live by it. We have passed this down to our children. That is the problem with this country our word means nothing any longer. What a great example we have to show our children how the world really works.

If you really want to make a difference the 1500 that have signed should give the money back and so should the city of Colleyville. Don't be greedy and make a statement that the BC-MRC wants the best for all its members not just a few. Let's look at another company and tell Titan we want to deal with a righeous company. My faith tells me there is one out there.

[BC]

How much acreage do you think you need to form a unit? Why do you think Titan will be in legal trouble for not paying their draft? How are you damaged? For someone who claims to be so informed, you sure seem clueless.

[s bianca]

What is really startling to me is the lack of communication apparent between Titan/Caffey and their financial partners. Why start a lease, and sign up 1500 homeowners, and then abruptly stop? All the worst news stories about our economy were broadcast non-stop, weeks before the first signing session. Titan could have saved themselves some potential legal trouble by saying "No Deal" days before the signing began. I also know that at least two of the neighborhoods that signed were in Bedford, and that the total subdivisions who signed do not have enough acreage to form a unit. What on earth? What a mess.

I live in Bedford, and am a member of the BC-MRC. My neighborhood hadn't even been scheduled for a sign-up session. But I would like to remind some of the short-sighted commentators on this site that the need for natural gas will not go away. Prices are subject to sharp swings in either direction. As a gas royalty owner for property I own in another part of Texas, I have watched this process for a long time, and it seems to me that potential demand drives the market far more than price. Nationwide, I believe there is ample gas in storage, but this could change with a very cold winter, and up goes the demand again.

And so, potential leasers in the Shale, have courage. Your stake in this process has not disappeared, although it may not emerge at the same prior attractive level.

As for me, I will think twice before signing any agreement with Titan/Caffey in the future, because they do not appear to be organized or attentive to legal consequences.

[Colleyville neighbor]

I ran into an unnamed Bedford Govt. employee today who is a friend. I expressed disappointment that my neighborhood was just a few days away from signing the lease with Titan. They informed me that information was circulating through the area. While many neighborhoods fortunately were signed, issued a 30 day hold bank draft, the majority of those drafts were NOT going to be honored at this time and Titan would be looking at even more serious legal issues. If this is true, I feel as though fraud becomes much more apparent.

[MIke P]

It seems now that we have an interesting, if not thoroughly entertaining, dichotomy. There are those who feel they have been wronged, and those that feel like the wronged are simply greedy. (I especially like the guy that thinks everyone should "grow up"...clever..misguided, but clever) I truly believe that we would all be better served if we shelved the knee-jerking and took stock of the actualities. Has anyone actually cashed a check yet? Has the city? I for one think that the city should have taken into consideration the concerns of it's citizens before signing a deal, but not because these citizens were being separated from their potential "pennies," but because representation cannot be compromised. Ever.

Those people that think this is just a greed issue are about as informed as those who now believe that we should be able to sue Titan for a breach of contract. Now if only there was a contract... nope...just a handshake that says if we lease from you it will be for this amount, right there alongside of the part that says if we lease to you it will have to be for this amount. Pretty simple here folks...we can't make them pay us anymore than they can make us take a lesser amount.

I agree that an extra seven mil would be a nice treat for our fair city. And with another 200 grand for our parks, we could more perfectly manicure our perfectly manicured soccer fields. I'm all for it! I'm not, however, all for most of the city being pissed off because they feel like their representatives discounted their opinion. For whatever reason.

The City of Colleyville has a few hundred acres of land to lease spread out over quite a few square miles. And unless they are planning on letting Titan drop drilling rigs smack down on top of that acreage, there's going to have to be some additional leases signed don't ya think? Titan needs us, and our mineral rights, as much as we need them for our extra Christmas money. Our strength will be when we sit back down at the bargaining table. If we feel as passionate as I think we do about our sense of fair play, then let's give Titan a chance to make good on it's handshake, at which time, we'll make good on ours. Until then, let's speak up and out about anything and everything else that bothers us about our city council, not just the things that affect our poker money. I'm sure there is much to gripe about.

I don't really think we've been wronged, and I don't honestly think we're greedy. I do however think that we can make anything happen that we need to happen if we stand together for or against our representatives as well as our oppressors. (OK so that's a bit of a stretch but then I'm feeling a march through the streets and upscale boutiques to City Hall coming on). So take the time to knock the dust off of Thoreau and get a grip on who's really in charge here. But hey, don't take my word for it, I've been wrong before. I probably just need to grow up. Nah.

ps.for the poor guy that's only going to vote for "Tony" Hart, please take the time to get his name right before you head to the polls. But do vote.

[BC-MRC member]

Maybe BC-MRC should sue the City of Colleyville? Their actions directly caused financial injury to the group and they did this with full knowledge of the consequences to BC-MRC.

[JW]

Some really fantastic comments on this board. The best:

"Who promised their kids a new pool? Or their wife a new addition to the house? Who bought a new car thinking they were signing next week? Who already purchased anything thinking they were signing next week? Who has damages from the defaulted agreement?"

Sound like the people who are being foreclosed on because they took out a loan they couldn't pay back and now want the government to bail them out.

Certainly, to live in the prestigious city of Colleyville you would have to be smart with your financial decisions. Certainly you would know that a contract for land is subject to the Statute of Frauds and so there aren't any damages because there was no contract.

Better luck playing JR Ewing next time.

[John Baker]

I would be interested to know how many of the City Council Members belonged to the BC-MRC. I would also be interested to know how many of them were part of the 15% who did sign a lease agreement before it was suspended. And finally, If they did sign leases, I would be interested to know how many of them actually live in the neighborhoods that were scheduled to sign or did they attend or were they invited to a signing party before their respective neighborhood was scheduled.

[j.d. cramer]

Tony Hart is the only councilman who will get my vote in any upcoming election

[homeowner]

I was one of the lucky homeowners (in Bedford) who was able lease their mineral rights to Titan for $25K before they reneged to everyone else. I mention this only to show that my comments are not biased by being burned by Titan.

Colleyville definitely should not have signed away their mineral rights to Titan so quickly. It's not even a matter of economics.

The city could have easily rejected the offer, without the bogus threat of litigation, simply by pointing out the questionable integrity and trustworthiness of Titan and its representatives. The city has no legal obligation to sell to the highest bidder if the bidder doesn't meet basic requirements, including trustworthiness.

Colleyville needs to be able to trust these guys to construct pipelines, install drilling rigs, protect the environment, honor noise and distance restrictions, and basically not infringe on the quality of life within the city. After Titan's recent actions, does anyone really believe they'll do that?

[DRILL BIT]

Jason, What if you sue and dont win, are you going to pay, or is the whole broke group going to pay ?

[Corey]

Jason,

It wasn't signed. Go ahead and pay a lawyer.

[Peter]

The people of Colleyville should be thrilled that the city you live in is going to get paid an absurd amount of money that will directly benefit the people that live there. Do you think that money goes into the city council member's pockets? You should wake up and be thankful for the Barnett Shale and all that it's done for this area. We are enjoying a fantastic local economy because of this. If you have watched the news lately, the stock market is in the gutter. Companies can't access money like they could 6 months ago. NO ONE IS INVESTING!

People, take a look around and be thankful for what's going on around here, and quit being so GREEDY!!!

[Terry]

Just another example of corrupt city government and government as a whole.
How these city officials can hold their heads up high in public will remain to be seen. They should get ready to be ousted. They now have to know that it is coming!

[BC]

My question would be how can the city not have a competitive bidding process like you are required to have when the city acquires any good or service?

[TJG]

Who is voting for Mayor David Kelly?
NOT COLLEYVILLE, BEDFORD RESIDENTS.

Who will sign in the future with Titan Tricksters?
Not Colleyville-Bedford Residents.

Who wants to use BS Boyle as an attorney?
Not Colleyville-BEDFORD Residents.

Who trusts that the City Council Crooks have our best interests in mind?
NO ONE

Who promised their kids a new pool? Or their wife a new addition to the house? Who bought a new car thinking they were signing next week? Who already purchased anything thinking they were signing next week? Who has damages from the defaulted agreement?

Trust only your coalition-stick together and demand Titan follow through.

[Tracy]

I agree, A Deal is a Deal. If the coalition all signed with Titan and then backed out, would they be okay with that? I think they need to resume, at a faster pace, same deal or as a coalition we never sign with TITAN ever in the future for any price offered.
I also would like to know if Titan can be sued by the coalition. Maybe some of that money the city will make can cover our attorney costs. Is the city council on Drugs? It at least would explain their stupidity. Maybe the council members can hang out with Titan after the fireworks for a drink when the coalition fights back and doesn't support the council in anything in their best interest . I say we ban the parks, and anything that is tied with the city. Mr. Boyle, you may not have gone to Jail, but as an attorney you know that would not have happened, but I hope you feel like your in Jail now that the people have basically put you in a cell by yourself and isolate you as the trader.

[jbcolleyville]

Recall all of them

[Al]

Based on some of the comments here, a lot of you sound like greedy little kids. This potential windfall effectively was going to be "pennies from Heaven", anyway. Stuff happens. Get over it. And grow up.

[Chris T]

I cannot even imagine how the City Council, the Mayor or anyone else who has any clue could agree with a company like Titan. The same company who screwed over 800 residents of Colleyville/Bedford.

I'm one of those residents and I am one of the residents who would be more than willing to join a group to file a lawsuit against Titan for backing out of an agreement due to financial reasons. The same financial terms as the one that the council "sold out" the residents of Colleyville and Bedford.

Shame on you guys. I hope you get your money.

Thanks for not defending the same residents who pay taxes to live in this community that you are benefiting from.

Good luck in your dealings with Titan!