Barnett Shale

Midway Park (Euless)

A neighborhood group in Euless is warning residents about a premature signing party being called by Cheaha Land Services, which is leasing for Carrizo Oil & Gas.

The Midway Park Property Owners group has been trying to get a lease for its whole area, which is bounded by Farm Road 157, Euless Main Street, Harwood Rd and Airport Freeway.

But the lease hasn't been finalized, said Charles Simmons, one of the neighborhood's negotiators. Cheaha has been sending out flyers saying that their lease has been approved by another neighborhood association. But Simmons says it hasn't been approved by the Midway Park group. The flyer also says that the company has two drilling sites. Simmons says there's only one. The signing party is scheduled for Saturday.

"The MPPO leadership does not endorse this lease, nor have they been provided a copy for review," Simmons says on the group's blog.

Read more here:

http://midwayparkpropertyowners.blogspot.com/

-- Mike

360 Northwest Coalition inks $23,500 deal with Chesapeake

360 Northwest Coalition, representing more than 3,500 homeowners and over 1,500 acres just south and west of Dallas/Fort Worth Airport, reports that on Tuesday it endorsed Chesapeake Energy's mineral rights lease offer, which pays a bonus of $23,500 an acre, 25 percent royalty and including other favorable terms. XTO Energy was also competing for the area, which is in Euless and Grapevine in the triangle formed by Texas 360, Texas 121 and Mid-Cities Boulevard. The Coalition was launched in February a couple of months after Cimmaron Field Services, representing Chesapeake, began soliciting leases paying a $3,000 bonus and 20 percent royalty. "The three-year ease was unanimously endorsed by the leaders of 21 subdivisions and neighborhood associations," the group reported on its website. It culminated five months of negotiations.

Among the terms reported by the Coalition are environmental protections that the group says are more restrictive than city ordinances, including provisions ranging from "road usage to groundwater protection, noise suppression, pollution constraints, fencing, lighting, contamination, hazardous materials and cleanup." Like many leases negotiated by neighborhood groups, the lease also includes a cost-free royalty and requires Chesapeake to cover any costs of obtaining subordination agreements from mortgage lenders. The lease is available to all property owners within Coalition boundaries who have not previously signed a mineral rights lease, it says. Bonus checks are promised within 30 business days (six weeks) of signing, and late fees will apply to checks that miss that deadline.

To see what we've previously reported on 360 Northwest Coalition, click here.

-- Jim Fuquay

Oakwood Terrace ready to meet

The Euless group Oakwood Terrace is planning its first major meeting since organizing into the shape that it's in now.

Here's all the details on the meetings:

Sat., May 10 at 2 p.m.

Thur., May 15 at 7 p.m.

Both will be identical and will be held in the classroom of the Dalworth Carpet Facility at 12750 S. Pipeline Road in Euless.

You can check out the group's website here.

If you have any questions, you can e-mail the group here.

Also, since our last post that included this group, Oakwood Terrace has expanded to include a group of property owners just northwest that were previously unorganized for natural-gas leases.

The dimensions of Oakwood Terrace are now:

• East of 157
• South of 183
• West of Euless Main
• North of Pipeline Road

No word yet on whether any lease offers are circulating around this area. But if you get anything, let us know at Blogging the Barnett Shale. Click here for an e-mail address.

--David Wethe

Where are you in Euless?

We get calls all the time from property owners trying to figure out if there's a group representing them.

If you have property in Euless, you should check out a cool new tool that lets you type in your address, and the Web site pulls up any one of seven different neighborhood organizations in that Northeast Tarrant County town.

Of course, it's not perfect, because there are about three main gaps where a neighborhood group hasn't formed to represent some property owners. But for the most part, residents are covered pretty well by some group.

You can click on the city's map search tool here.

Here are the seven neighborhood groups listed.

• 360 Northwest Coalition
• East Trinity Mineral Leasing Committee
• Midway Park
• Morrisdale
• Northeast Euless Property Owners
• Oakwood Terrace
• West Euless

--David Wethe

360 NW Coalition (Grapevine, Euless) gets bigger

There's a new group out there we've never talked about in the Grapevine and Euless area.

The 360 Northwest Coalition (group website) formed in earnest around mid to late February with eight subdivisions along the west side of Dallas/Fort Worth Airport near State Highway 360 and Glade Road.

But the group purposefully stayed below the radar for the past few months as it tried to get its leadership infrastructure in place.

Now, the group is announcing that it has added five more neighborhoods. They are:

• Glade Crossing
• Glade Landing
• Meadowbrook Park Addition
• Saybrooke
• Shadow Glen Addition

The 360 Northwest Coalition, which now consists of 3,000 residential and commercial properties on 750 acres, has its particular name because the group is essentially located at the northwest end of S.H. 360, where it merges with State Highway 121.

So far, the group only has offers from Cimmaron, working on behalf of Chesapeake Energy. The first offer, which came in December, was for a per-acre bonus of $3,000 and royalties of 20 percent, said Dan Delph, the lead organizer of 360 Northwest.

In March, Cimmaron upped its bonus offer to $6,500.

Delph, who retired last year as a software designer for Southlake-based Sabre, said his group is still focusing on registering members in the area and will deal with negotiating with the land company a little later. The group will wrap up registration efforts in two weeks and then will form an executive negotiating team that will deal with the lease offers then, Delph said.

Now that it has a "critical mass of neighborhood groups," 360 Northwest is now trying to bring in commercial properties and any other nearby individual homeowners who may not be part of a subdivision or homeowners association.

Here's a look at the original founding members of 360 Northwest Coalition:

• Arbormont Estates
• Chelsea Park Estates
• Cinnamon Ridge
• Glade Manor Addition
• Mel Village Addition
• Northgate Addition
• Quail Run Estates
• Sagepoint Addition

Here's a little about what we've said on these neighorhoods in the past.

--David Wethe

Euless to hold forum on gas-leasing

The city of Euless will hold a gas-lease forum at 7 p.m. this Thursday at the First Baptist Church, 1000 Airport Freeway in Euless. The forum will focus on the significance of the Barnett Shale, and offer tips on lease negotiations, the drilling process and economic benefits of the Barnett Shale. Among the neighborhood groups that will attend is Midway Park Property Owners, formerly known as Park Addition Residents of Euless. That group has extended its boundaries to Airport Freeway on the south, Texas 157/Industrial Blvd on the west, Harwood Road on the north and Euless Main Street on the east.Organizers include Charles Simmons at charles-simmons@att.net and G.J. Walton at gjwalton@sbcglobal.net.

Here's a copy of the flier the city is distributing: Download euless_gas_lease_forum_flyer.pdf

Expected to speak are:

• Ed Ireland, executive director of the Barnett Shale Energy Education Council
• Robert West, partner in the law firm of Whitaker, Chalk, Swindle and Sawyer. He has extensive experience in real estate and oil and gas transactions.

In addition, representatives from Chesapeake, Dale, XTO and Arrington will be there to answer questions. For more information, you can call (817) 685-1623.

--David Wethe

(Photo: Vacation bible school, First Baptist Church)

East Trinity (Euless) group agrees to $19k deal

The East Trinity Mineral Lease Committee (Euless) reports this morning that it's agreed to recommend a lease with Carrizo Oil & Gas that includes a $19,000-per-acre lease bonus, 25.5 percent royalty, 3-year primary term, and 2-year extension option at two thirds the original bonus.

"Mortgage subordination fees will be paid for by Carrizo if they are required," the committee says in its announcement. The lease also includes no requirement of warranty of title.

"The ETMLC has effectively concluded negotiations," the committee says. "A contract is being drafted and reviewed and we look forward to our initial signings next week."

Dale Resources, which was competing for the lease, sent follow-up lease offers to homeowners earlier this week, offering a $17,000-per-acre lease bonus, 25 percent royalty, two-year primary term, and two-year option. This ended up confusing homeowners, the committee says, adding it is "mad as hell."

Click here to visit the group's web site and view a coverage map.

Click here to read our previous posts on the East Trinity group.

-- Scott Nishimura

East Trinity (Euless) group says deal may be close

The East Trinity Mineral Lease Committee, which is representing neighborhoods west of Texas 360 and Texas 183, reports it "feels an agreement will be reached this week" on a community gas lease.

Dale Resources, on behalf of Chesapeake Energy, is offering to sign leases at a $17,000-per-acre signing bonus, 25 percent royalty, two-year primary term, and renewal option, the committee's Doug Hackett reports. Cheaha Land Services, on behalf of Carrizo Oil & Gas, is offering a $19,000 per-acre bonus, 25.5 percent royalty, three-year primary term, and renewal option.

"Both companies have agreed to pay to the middle of the street pending title verification," Hackett says.

Dale's offer exceeds its original offer of $2,000 per acre, 20 percent royalty, and five-year primary term, he said. Cheaha's offer exceeds its original offer of $6,000 per acre, 25 percent royalty, three-year primary term, and no renewal option.

The committee "has also tried to get more protective agreements in place for homeowners/landowners such as no warranty of title agreements, which both companies said they would amend," Hackett said.  "The original offers from both companies asked homeowners to warranty title. We feel an agreement will be made this week and hope to have an announcment by Thursday."

The committee also has addressed issues such as "mortgage subordination, the ability of each company to produce minerals, high impact versus urban well permits, and ultimately what will be the most fair deal for homeowners," Hackett said.

Negotiations began in February. Hackett says the group represents more than 1,500 homes and more than 700 acres. The area is bounded by American Boulevard on the east, Trinity Boulevard on the south, Euless Main Street on the west, and Midway Drive on the north. It straddles Texas 183.

For more updates on this group, visit its web site. To view its proposed coverage map, click here.

-- Scott Nishimura

West Euless Neighborhood Alliance organizes

Homeowners who live in Euless west of Texas 157, south of Airport Freeway and north of Texas 10 are organizing in order to negotiate favorable mineral rights leases.

West Euless Neighborhood Alliance organizer Patty Cook says her group knows of an offer from Dale Property Services for $8,000 an acre and 25 percent royalty on a five-year lease, and also understands David Arrington Inc. and XTO Energy are circulating offers.

WENA is distributing flyers in neighborhoods and posting signs with phone numbers to call for more information.

Representatives also plan to attend the city's planned April 17 gas lease forum. For more information, visit the group's Web site or contact Cook at pattycook58@att.net.

-- Jim Fuquay

(Photo: Texas Star, Euless)

Euless organizes gas leasing forum

With energy companies approaching property owners for gas leases, the city of Euless is sponsoring the Euless Gas Lease Forum, 7 p.m. Thursday April 17 at the First Baptist Church Euless, Worship Center, 1000 Airport Freeway in Euless.

Speakers:

• Ed Ireland, executive director of the Barnett Shale Energy Education Council, will give an overview of the drilling process and speak on the economic benefits of Barnett Shale production. The council, formed last year, is funded by energy companies.
• Bob West, a partner in the Whitaker, Chalk, Swindle and Sawyer, LLP law firm, will give tips on what to look for in a lease and how to approach negotiations with energy companies. Several neighborhoods have hired West in recent months to represent them in, or advise them on, talks with energy companies on a gas lease.
• Representatives from Chesapeake Energy, Dale Resources, XTO Energy, and Arrington Oil "will be on site to answer questions," the city says in a news release.

"With the influx of gas leasing occuring in our neighborhoods, the need for more information about Barnett Shale, the leasing process and neighborhood negotiations is great," the city says. The forum will "give residents an opportunity to ask questions and get responses directly from the source."

Here's more information about the Oakwood Terrace community in south Euless, which is organizing.

"We have not yet received any offers as a group," Dale Heisch, an organizer reports. Dale Resources has been offering leases in the neighborhood since last Spring, he said. "They have raised their last offer...(to) $5,000 per acre or $1,000 lot minimum, with 5-year primary term, 20 percent royalty."

Cheaha Land Services also has contacted the group, Heisch reports, "but we have not negotiated with them yet either." The group plans to meet soon.

Click here to visit the Oakwood Terrace web site. To join the group, you may send its organizers an email at EulessOakwood@yahoo.com.

Click here to read the City of Euless' gas drilling ordinance.

-- Scott Nishimura

(Photo: Glass bluebird awards for attendance at Oakwood Terrace Elementary)