Barnett Shale

Citizens' group, but not city, finds high emissions at Colleyville drill site

A group of Colleyville and Southlake residents said Tuesday it conducted tests recently at a Barnett shale well site in Colleyville that showed emissions at unhealthy levels. Air tests conducted in early February, when Titan Operating hydraulically fractured seven wells, showed one compound, carbon disulfide, over the state's threshold for short-term health impact on Feb. 1 and 2, according to reports from the group and the Earthworks Oil & Gas Accountability Project. Levels of two other compounds, benzene and naphthalene, were over the state's long-term limits only on Feb. 2. None of the chemicals exceeded health limits during another test Feb. 9, according to Earthworks' posted results. Earthworks posted the test results and other analysis on its web site here: www.earthworksaction.org//library.

The City of Colleyville also hired a testing company during the activity. It found no emissions above its threshold levels. The city posted those results here.

Read the Star-Telegram's developing report on the results here.

KTVT-Channel 11 posted a report on the tests here. 

-- Jim Fuquay

Colleyville grants first drilling permit

Titan Operating won approval late Tuesday for the first gas-drilling permit in this affluent Northeast Tarrant County community, ending months of debate over its request to drill on the city's northern end near Southlake. The City Council unanimously approved Titan's plan to drill up to 14 natural gas wells on 13.2 acres at 7404 and 7504 Pleasant Run Road. That property is owned by the Trinity Christian Center of Santa Ana Inc. of California. However, the drilling cannot begin until city leaders also approve the route of a pipeline that will carry the gas from the well site. No pipeline company has applied for a construction permit, though officials expect one to do so now.

For more, click here.

-- Steve Norder

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

Grand Prairie groups endorse Titan/Vantage lease

Close to 1,500 people from the southwestern Grand Prairie area turned out Tuesday evening to endorse a mineral rights lease offer from the team of Titan Operating and Vantage Energy, continuing a string of successes the two new companies have racked up. Gopo (Garden Oaks, Kingswood Forest, Horseshoe Bend, Beacon Hill and South Sheffield property owners) and Lake Parks Better Gas Lease Group represent more than 4,000 property owners and about 1,200 acres, says attorney Scott Bauer, who worked with the groups.

Titan and Vantage, which are separate companies but share a common investor, offered a three-year deal with a signing bonus of $25,000 an acre, royalty of 25 percent and rules on noise, traffic and other protections. The companies and their land agent, Caffey Group, expect to conduct title searches and contact landowners for signing meetings.  Bauer said XTO Energy had been working the area but pulled back, opening the way for Titan and Vantage. Titan recent gained the endorsement of the Bedford-Colleyville Mineral Rights Coalition, while Vantage inked one of the Tarrant County's biggest lease deals when it won the backing of the Southwest Fort Worth Alliance.

-- Jim Fuquay

Bedford-Colleyville-Grapevine group endorses Titan/Caffey offer

Bedford Colleyville Mineral Rights Coalition says it is recommending a mineral rights lease from Titan Operating and its land company, Caffey Group, for close to 10,000 property owners in the group's approximately 5,000 acres in Northeast Tarrant County. The group says it represents at least 80 percent of the land in its boundaries, generally Colleyville Boulevard/Brown Trail to the west, Hall-Johnson to the north, Texas 121 to the east and Harwood Road to the south. The three-year lease pays a bonus of $25,000 an acre and a royalty of 25.5 percent cost-free, and also includes environmental provisions that call for compressor stations to be completely housed. In an e-mail to members, organizers said.

It's only the most recent win for Titan, a new group formed by executives with experience at other large Barnett Shale producers. The group, with Caffey, also has won backing from big homeowner groups in southwest Arlington. Information and signing meetings will be publicized on the group's web site at http://www.bc-mrc.org.

-- Jim Fuquay

$25,500 deal reached with Turf Green United (SW Arl)

The group in Southwest Arlington known as Turf Green United says on its website that it has reached a deal with a relatively new drilling company Titan Resources and its land affiliate The Caffey Group.

The terms of the deal are:

• $25,500 per-acre bonus
• 25 percent royalty
• Initial three-year term with an option for another two years and another $25,500 bonus

Competition helped drive up the price. We last told you in late February about a $17,000-per acre signing bonus and a 25 percent royalty offered by Carrizo Oil & Gas. The group also reports on its website that it received an offer of $25,000 per acre from Dale Resources, representing Chesapeake Energy.

The group, which posted the deal agreement last night, also announced signing dates at The Church on Rush Creek, at 2350 SW Green Oaks Blvd., in Arlington.

They are:

• Tuesday, June 10, 4 p.m. - 9 p.m.
• Thursday, June 12, 4 p.m. - 9 p.m.
• Saturday, June 14, 10 a.m. - 4 p.m.
• Tuesday, June 17, 4 p.m. - 9 p.m.
• Thursday, June 19, 4 p.m. - 9 p.m.
• Saturday, June 21, 10 a.m. - 4 p.m.

When you go to sign, you'll need to bring a picture ID, and all parties that own the property must sign the lease, the group's Website said.

The group is also expressing frustration that officials for Dale Resources is going around the neighborhood, posting flyers on people's doors.

"The lease they are offering is not a Turf Green United approved lease. This a common tactic used by this company to cause signing date confusion within a united neighborhood. These types of dishonorable tactics are unwelcome and speak loudly on the way Dale conducts business."

Click here for the Website for Turf Green United, formerly known as Sterling Green Addition.

Click here to see what we've said about this group before.

--David Wethe