Barnett Shale

Lease slowdown hits home

Some of the biggest producers and most active leasing companies in the Barnett Shale brought their leasing activities to a screeching halt this week, disappointing unsigned property owners and perhaps changing the market price of signing bonuses in the play for good. Among the disappointed landowners is Rorie Cowden, whose Hidden Valley miniature golf course on 5.5 acres bordering Jacksboro Highway is part of a Lake Worth negotiating group that signed the richest reported lease in the county: a $30,000-an-acre offer from Chesapeake.

"I was waiting for them to send me my lease packet," Cowden said Thursday, but he got nervous when he heard producers were cutting back. When he walked into the Vance Godbey’s restaurant, where signings were under way, he was told that the new bonus figure was $5,000. The difference: $137,500. "I did not sign," he said. "I never thought it would hit like this. The bubble has burst."

See the Star-Telegram's full report here.

-- Jim Fuquay

Chesapeake postpones 8th Avenue drilling permit hearing

Chesapeake Energy today asked the city of Fort Worth to postpone a scheduled hearing next week on its request for a drilling permit at the controversial Eighth Avenue site near the Berkeley and Ryan Place neighborhoods. The move came after an hours-long meeting Monday afternoon with representatives of the two affected neighborhoods as well as surrounding neighborhoods and Councilman Joel Burns, who represents the near South Side area. Also present was a representative of William Davis, who owns the proposed drill site, and of urban planning firm Gideon Toal.

Tom Edwards, a gas well inspector for the city, said Chesapeake “just asked us to postpone the hearing. They’re not pulling their request for a permit.” He said Chesapeake did not indicate when it might seek another hearing.

A Chesapeake representative was not immediately available for comment. Because Chesapeake does not have waivers from property owners within the city's 600-foot buffer zone, City Council must approve the company’s drilling permit before it can be issued. A hearing on the permit had been set for July 8.

-- Jim Fuquay

SW Fort Worth group says Chesapeake submits high offer

Fort Worth Neighbors Negotiating Group, representing home homeowners in the Garden Springs, Hulen Meadows, Parkwood East and Parkwood Estates neighborhoods in southwest Fort Worth, reports that Chesapeake Energy has submitted what would be the richest lease offer to date for residential properties if it is completed.

Chesapeake, subject to negotiating an agreeable lease form, has offered $18,250 per acre and a 27.25 percent royalty to unleased property owners in the area, roughly bounded by Sycamore School Road on the north, Risinger Road on the south, McCart on the east and South Hulen Street on the west.

Potestas Corp. hit those neighborhoods last year with relatively low lease offers but still signed up "quite a few people," says Deryl Logan, a member of the Fort Worth Neighbors negotiating committee. He estimates about 400 homeowners are participating in his group's efforts. He said Paloma Resources and Potestas are still talking to the group but he expects Chesapeake to stay on top. Logan can be reached at deryllogan@yahoo.com.

-- Jim Fuquay