Barnett Shale

Judge to hear leasing lawsuits

In October 2008, as natural gas prices continued their freefall that began the previous July, natural gas producers and their leasing agents abruptly ceased signing mineral rights leases in Tarrant County. Many homeowners whose neighborhood groups had negotiated rich signing bonuses and favorable lease terms were nevertheless shut out of the bonanza. Now the energy firms' actions are the subject of about 20 Tarrant County lawsuits filed by three Dallas law firms known as the North Texas Lease Litigation Group on behalf of individual property owners in southwest Fort Worth and southeast Arlington. The suits contend that property owners were illegally denied the opportunity to sign lucrative leases negotiated by the neighborhood coalitions. Kip Petroff, an attorney for the litigation group, said it expects to eventually file hundreds of cases on behalf of such residents.

To read more, click here.

The last shoe drops: Titan terminates BC-MRC deal

Three days after suspending leasing with the Bedford-Colleyville Mineral Rights Coalition, Titan Resources on Wednesday told the big group that "all our efforts to lease mineral interests of members of BC-MRC are now terminated." Titan said it will not accept any new leases but is honoring drafts issued through Oct. 18. "It is our hope that new opportunities will occur for leasing activities in the future, and we appreciate all of the mineral owners in the BC-MRC," Titan said in an announcement sent the homeowners group. The group posted on its Web site a statement that it is "extremely disappointed and strong disagrees with this unilateral decision by Titan. It plans to consider all options at its disposal to seek to enforce the agreement which Titan has now repudiated, as should all individual members." The group estimates that Titan signed leases with 15 percent of its members, "but needs far more acreage within BC-MRC boundaries to form effective drilling units." It urged members to remain united and "not feel pressured to accept something less than what has already been offered and accepted just because of claims that competitive conditions have subsequently changed."

-- Jim Fuquay

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

Latest activity in Bedford

Earlier this week, we told you about some leasing efforts in Bedford.

One of the groups has now formed and created a name for itself, the Bedford Mineral Rights Coalition.

The group consists of:

• Woodland Heights Baptist Church on Central Drive
• Woodfield Homeowners Association
• Brookwood I Homeowners Association

Both neighborhood associations are near the intersection of Cheek Sparger Road and Central Drive. The group held its first meeting on June 4 at the church.

The group doesn't have a website at this point, but you want to get in touch, you can reach Brenda Harris at bharris@oceangarden.com or Hank Henning at hankhenning@tx.rr.com.

Henning, a spokesman for the group, said the Bedford Mineral Rights Coalition is trying to get in contact with all of the HOAs in Bedford.

Henning also said that XTO Energy briefly mentioned that it recently secured a pad sight in Colleyville that could reach his group. No details on where that is, but if anyone out there knows, give us a shout.

--David Wethe