**Important Information about

  

   

your Mineral Rights**

 

 

Go to www.GRNA.us for full details.



OLD INFORMATION BELOW -- PLEASE CLICK LINK ABOVE FOR CURRENT INFORMATION!!

NOTE:  YOU ARE LOOKING AT THE OLD WEB SITE!  FOR MOST PURPOSES, YOU NEED TO LOOK AT THE GRNA WEB SITE!!  THIS PAGE IS HERE FOR HISTORICAL PURPOSES AND GENERAL INFORMATION ONLY -- PLEASE GO TO  http://www.grna.us FOR CURRENT INFORMATION!

OLD INFORMATION BELOW -- PLEASE CLICK LINK ABOVE FOR CURRENT INFORMATION!!

NOTE:  YOU ARE LOOKING AT THE OLD WEB SITE!  FOR MOST PURPOSES, YOU NEED TO LOOK AT THE GRNA WEB SITE!!  THIS PAGE IS HERE FOR HISTORICAL PURPOSES AND GENERAL INFORMATION ONLY -- PLEASE GO TO  http://www.grna.us FOR CURRENT INFORMATION!

OLD INFORMATION BELOW -- PLEASE CLICK LINK ABOVE FOR CURRENT INFORMATION!!

NOTE:  YOU ARE LOOKING AT THE OLD WEB SITE!  FOR MOST PURPOSES, YOU NEED TO LOOK AT THE GRNA WEB SITE!!  THIS PAGE IS HERE FOR HISTORICAL PURPOSES AND GENERAL INFORMATION ONLY -- PLEASE GO TO  http://www.grna.us FOR CURRENT INFORMATION!

OLD INFORMATION BELOW -- PLEASE CLICK LINK ABOVE FOR CURRENT INFORMATION!!

NOTE:  YOU ARE LOOKING AT THE OLD WEB SITE!  FOR MOST PURPOSES, YOU NEED TO LOOK AT THE GRNA WEB SITE!!  THIS PAGE IS HERE FOR HISTORICAL PURPOSES AND GENERAL INFORMATION ONLY -- PLEASE GO TO  http://www.grna.us FOR CURRENT INFORMATION!

Mineral Rights and Leases


Don't Sign a Lease Tonight  unless you read the information below first and still think it is in your best interest to do so.  And please TELL YOUR NEIGHBORS about this!

***There is a lot of information on this page, so please be patient and read thoroughly (for critical information just read the next two paragraphs).  The links to more information can be found at the very bottom of the page, just below the general information on urban drilling***
   

Current Offer and Status as of Saturday August 23rd:  Earlier this week we (GRNA) received an offer of $24,000 per acre and 25% royalty.  We are currently looking at the details of this offer (there are more to the terms than just these two items) and we are in active contact with multiple companies who are making offers to residents in the GRNA area.  The lease committee will be meeting Monday 8/25 to finalize our response [we responded on 8/26 and are waiting to hear back].  Lower offers are being made by multiple companies by mail, by phone and at signing meetings -- if you accept a lower offer you are likely to be throwing away the difference between your offer and what we negotiate, which we expect to be AT LEAST $24,000 per acre and 25% royalty.

 

CAMRA (Colleyville Area Mineral Rights Association) -- Click Here for CAMRA Web Page and Lease Highlights -- which is just east of us, recently signed a lease with Titan/Caffey for $25,000 per acre and 25.5% royalties, with no cost subtracted from the 25.5%, which is a very important difference from the leases many people are signing!!  We have been contacted by Titan/Caffey and told they are researching three drill sites that reach GRNA and we expect further information from them by Friday 9/5.

  

If you are interested in joining GRNA or would like to be added to our notification list, please CLICK HERE.

 

Don't Sign a Lease Tonight  unless you read this first and still think it is in your best interest to do so.
  
We (the Glade Road Neighborhood Alliance) have received an offer from XTO/Holland for $24,000 an acre and 25%.  The XTO/Holland signing party today is at only $20,000 an acre and 25%.  So why would you want to sign for $4,000 less per acre???
   
XTO/Holland has given GRNA a deadline to respond to their offer, but rather than waiting for us to respond by that date they are holding a signing party before the date of the deadline!  We assume they are hoping to sign up as many people at $20,000 per acre as they can, realizing that not everyone may be aware of the better offer already on the table.  We're not at all happy with this, but all we can do in response is try to let people know why we think it is in their best interest not to sign a lease yet.
   
There is no deadline on the $20,000 offer -- they aren't going to cut you out if you don't sign tonight, so why not wait and shoot for at least 20% more? 
  
The terms of the lease tonight are unknown -- they have not even shared a copy of the lease with us.  But you can bet it is not the terms we are trying to negotiate for you.  For example, is it a true "NO COST" lease, or are you subject to transportation costs (either affiliated or unaffiliated)?  Most likely there are costs involved and you will net LESS than the 25% royalty you are expecting.  This could amount to a loss of many thousands of dollars in the coming years!
  
Ah, but you want money NOW, right?  You don't want to wait a week or two.  Then ask if you will be getting a cashable check tonight that you can SPEND tomorrow, or if you will only get a draft that is not SPENDABLE or have to wait until some later date to get a check.  You will almost certainly find that if you sign tonight you will have to wait a minimum of 60 days to get cash, and possibly even longer!
  
We are volunteers, not paid professionals.  We can't guarantee you what terms we can negotiate for you -- we can only do what we think is right and let our neighbors know that we don't think it is a good idea to sign a lease tonight at $20,000 with poor lease terms.  We don't plan to sign OUR rights away at this price and hope you will not do so either.  We have to state this so that you realize you need to rely on your own judgement and not try to sue us later if you decide you are unhappy with the result.  You are free to sign any lease at any time, or none at all. 
  
Hang in there, and keep an eye on www.heatherwoodestates.net for GRNA information and updates --  in the next day or two we will be bringing our new site online at www.grna.us
  
GRNA is a voluntary organization - membership is voluntary and all work is done by volunteers.  We are not paid professionals, we are just neighbors working together to attempt to get the best lease terms we can.  Joining GRNA is free and does not obligate you or GRNA in any way.

Much of the information below is out-of-date (anything regarding status), but it is still worth reading for the general knowlege.  Sorry, we haven't had anyone volunteer to maintain the web site, and we have no funds to hire anybody!  [We have a volunteer as of 9/3 and hope to have an improved website up at http://grna.us very soon.]

   

The Heatherwood Estates HOA is partnering with neighboring HOA's and individual nearby homeowners to form a larger footprint of land to which the drilling companies will need access.  This will give the HOA's more leverage in negotiating lease bonuses and royalties.  Please consider this before signing a lease with any company individually.  We hope to negotiate better terms, then recommend to area homeowners which offer to accept.

  

We have invited HOA representatives from Versailles Parc, Madison Place, Wintergreen North, Winterhaven, Mill Creek and Mill Creek West, Glade Pointe, and Lonesome Dove Estates to join us in forming the Glade Road Neighborhood Alliance.  


Please note that no drilling will take place within or adjacent to our neighborhood, as a large open space is needed for the well.  A well is drilled down about 8,500 feet, then about nine to twelve spokes (picture a wagon wheel) are drilled horizontally outward from the well.  These spokes are around 6,500 feet long (over a mile).  So the drilling site could be over a mile from your home and you could still be included. 

  

The following Star Telegram article talks about how a group of HOAs in Fort Worth worked together to get some of the best lease terms for their homeowners in the recent Barnett Shale gas boom:
http://www.star-telegram.com/news/story/242503.html 


***WE NEED VOLUNTEERS!  If you would like to be on the Urban Drilling Committee, please email us from the link on the left side of this page.  Any good researchers or negotiators or communicators out there?***

Barnett Shale Information

For Homeowners Near Glade Rd. & Precinct Line Rd.

Latest Update on Mineral Rights Lease Negotiations, 4/29/2008


The Facts:
  • The Morrow Stevens drill site located just west of Precinct Line Rd. on Kirk Ln. is the only drill site in this area close enough to reach us.
  • All drill sites in this immediate area are leased to the same company.
  • We have a current offer of $10,000/acre signing bonus and 23% royalties which we have decided, as a group, to decline.
  • There is good potential for more gas companies to move into this area and for more drill sites to become available
  • Lonesome Dove is organizing as a part of our alliance and we are tryng to contact Clairmont and Remington Park
  • The current fair market price for a mineral lease is $15K-$18K/acre and no less than 25% royalties.
  • We will be scheduling an Alliance meeting within the next 3-4 weeks
  • We still need volunteers to help with phone and email work, as well as lease details, when we get to that point

We have attracted a natural gas company to our area!  Fidelus Land Company, representing several oil & gas comapnies, has begun proceedings on a project with our Glade Road Neighborhood Alliance.  Please review the following summary of a meeting held Nov. 4, 2007:  (Although Fidelus did a lot of work on our behalf, we are unable to negotiate with them at this time because they cannot locate a drill site close to us.)

Mineral Rights & Urban Drilling Meeting, Nov. 4, 2007

 

Below please find notes from the meeting held yesterday between members of the Glade Road Neighborhood Alliance and Fidelus Land.  Currently, Fidelus is running title search on several tracts (homes) in each abstract (neighborhood) to confirm mineral ownership.  So far, no prior reservations have been found and it’s likely that each property owner also owns their mineral rights:

 

Next steps:  Fidelus…complete statistic confirmation of mineral ownership

                    Search for contiguous drill site(s)

                    Create and propose initial offer lease terms

                    Time frame = 3-4 weeks from today, Nov. 5, 2007

 

                    Glade Road Neighborhood Alliance…confirm each neighborhood’s participation

                    Form Urban Gas Drilling committee with representatives from each neighborhood

  Prospect potential drill site(s)

                    Discover current infrastructure running along railroad tracks

                    Prepare for initial offer Fidelus Land Co. so negotiations can begin

Urban Drilling Agenda Summary

  1. The Barnett Shale
    1. 17+ Counties with Tarrant being in the “Core”
    2. 3,200,000 acres
    3. 28 trillion cubic feet of gas in reserve
    4. 45 billion cubic feet of gas produced daily now

Because of strong gas prices “Urban Drilling” is now economical

  1. Urban Business Model
    1. Service company Fidelus Land (www.fidelusland.com)
    2. Title research completed ASAP to confirm mineral ownership.
    3. Leasing using non-drilling leases begins when we are statistically confident that all minerals are still owned by current surface owners
    4. Draft process – payments made when all title research is complete
    5. Concurrent drill site search has begun

Drafts paid and drilling begins ASAP

  1. Drilling
    1. Out of sight, out of mind (as much as possible)
    2. Contiguous acreage needed for drill site

Well will take several weeks to drill, once well produces royalty checks to follow in 60 days or less

  1. Royalty Payment
    1. Gas $ (over 8$) X Production (in MCF) = Gross Profit
    2. Gross Profit – Expenses (gathering, conditioning, transportation, etc.) = Net Profit
    3. Royalty Payment = Net Profit ($) X Royalty (%) X Your portion of the acreage
    4. Of course small acreage leases yield smaller royalty payments, but bonuses are higher

Tract affected must be drilled “under” or within 300’ radius of drill/terminus



Below you will find information that is as accurate as we can determine at this time.  If you see an inaccuracy that you can confirm, you can send an email to  (David Cole) by Clicking Here.

Barnett Shale

General Information for Homeowners

Published October 3, 2007

 
1.    How does the Barnett Shale drilling project affect me?

The Barnett Shale is an underground reserve of natural gas trapped inside rock-hard shale.  Its boundaries are still undetermined, but its “sweet spots” are located mostly beneath Johnson and Tarrant Counties.  Oil & Gas companies are currently exploring Northeast Tarrant County and signing leases with homeowners under whose property they need to drill and possibly mine the natural gas.


2.    How do I know if I own the mineral rights under my property?

You will not know definitively until the “landman” contacts you regarding a possible lease.  If no one in the history of the property’s ownership has reserved the rights, then you own them.  The “landman” is someone outsourced by the Oil & Gas companies to research property and obtain mineral rights leases with property owners.  The only way to discover whether you own the mineral rights or not is to pull all the titles on your property dating back to 1915 (when record-keeping started) and see if anyone has reserved the rights.  Most homeowners will opt to wait for the landman to do that work for them.


Some general rules of thumb (not legal advice!):

  • If you have owned your property more than 5 to 7 years, you probably own the mineral rights.
  • If other property owners in your neighborhood own their mineral rights, you probably do, too.
*If you have the Title Committment or Title Policy from when you bought the property, look at Schedule B. If it says you don't, then you don't (if mineral rights are listed on Schedule B that means you don't own them, since Schedule B is a list of "exceptions" to your full ownership and control). Otherwise, maybe you do (probably), but maybe not. For normal title work they check back 50 years. For mineral rights, the process is slightly different and they have to check back to the original property ownership (usually to abou 1915). So you have to hire a land man or an oil and gas attorney if you want to know NOW. But no need to do that, just wait. The oil and gas companies may contact the property owner without checking the mineral rights, but they will not sign a lease with you until they have done the title search. [NOT TRUE, SEE BELOW].  So if they sign a lease, you can be quite sure you own them. If they find you don't they will not sign a lease, and they will probably be courteous enough to let you know.  Conventional wisdom says in this area of the USA most people do NOT own their mineral rights, but I am hearing from oil and gas people that they are finding that in most of the NE Tarrant area they have been finding that almost everyone owns either all or 50% of their mineral rights.  Our combined group of several HOAs may try to hire someone to check the title for one lot in the center of each subdivision, since the odds are good that all the lots in a given subdivision either had or did not have their mineral rights at the time the subdivision was created.  That way the HOA knows whether to continue participating, and if someone else owns the mineral rights then the other HOAs will know who to contact to join the negotiating group.

**Landmen do a few random title searches in the area, then make an assumption that most people own their mineral rights or they don't.  They will then sign leases with property owners if they are assuming they own their mineral rights, and they give you a 90-day draft of some sort.  They then have 90 days to do the title search and find out if you really own the mineral rights.  Odds are that you do if they signed a lease with you, but it is possible you will get nothing if they discover you do not own your mineral rights within 90 days.


3.    What’s involved in urban drilling?

    a)    The Oil & Gas company requests a drilling permit from the city, with approval taking anywhere from 6 months to a year, requiring a public hearing, adherence to all city ordinances, and city council approval.

    b)    The drilling site is prepared and the rig is erected.  The initial drilling takes 3-4 weeks and is vertical only.  The area underground (about 1.5 miles deep) is tested to see if it’s a viable area.  (Over 90% success rate in the Barnett Shale)  Then the permanent well is put into place and a small topper called a “Christmas tree” is place at this site.  The rig is taken down.  I think the horizontal drilling is done after the viability test but before the rig is taken down and the Christmas tree is installed.  Can you check on this?

    c)    Due to new innovations, lateral drilling is now possible and this is how the Oil & Gas companies can drill under your property using a well located up to 9,000 feet away.  The lateral drilling line will be located about 1.5 miles underground.

    d)    The shale around the actual drilling line (about a 300-foot radius) is then fractured by pushing water and sand down the pipe at high pressure.  The water is then pumped back out, but the sand remains to keep the fractures open.  This releases the gas and hydrocarbons to flow up the pipe and into a reservoir tank, which are usually built at or near the well site.
    e)    The producing well will be in production for 20 to 30 years.

    f)    A pipeline must be built to export the gas.  The most desirable areas for pipelines are along railroad tracks, high-tension wires, or tributaries and rivers.

 
4.    What negative impact does urban drilling incur?

    a)    During drilling (about 3-4 weeks), as well as right before and right after, lots of activity takes place requiring trucks, workers, lights, and noise.

    b)    The actual rig is unsightly while it is erected (3-4 weeks).

    c)    The drilling requires a lot of water.  Currently, all oil & gas companies combined are using about 1% of the water supply in our area.  Potential conflict in times of drought.

    d)    While most oil & gas companies have strict safety and security standards, the potential for accidents is always present.  Possible safety hazards include accidents during construction phase, possible leaking of hydrocarbons and fluids, leeching of hazardous materials into public water supply, and the threat of fire or explosions.

 
5.    What positive impact does urban drilling have on the area?

    a)    The most tangible positive result of urban drilling is the ability to lease the mineral rights you own under your property and receive a bonus payment as well as royalties for any gas produced and sold.

    b)    24% of US energy consumption is natural gas and further exploration and mining make us less dependent on foreign oil.

    c)    Over 100,000 jobs were created in the North Texas area [during what period -- the last 12 months?] as a direct result of Barnett Shale drilling and that trend is projected to continue for 20 – 30 years.

    d)    Municipalities, school districts, and commercial property owners can also lease the mineral right under their property, raising revenue and decreasing tax money needs.

 
6.    Do I have to lease my mineral rights, or can I say NO?

You are not required to lease your mineral rights.  But each drill line will mine minerals within a 300-foot radius (potentially more).  So if enough property owners in your immediate area lease their mineral rights, the well will be drilled and in all likelihood, your minerals will [may] be mined, too.  You just won’t receive a signing bonus or any royalties for them.  Even if they don't actually get your minerals, nobody else is likely to drill another mine in the immediate area, so you still end up with nothing.

 
7. What about the neighborhood lease negotiations I have read about in the paper?

When possible, residential neighborhoods should work together to negotiate a lease.  The larger the area, the larger the leverage.  A neighborhood alliance in Fort Worth was recently able to negotiate a bonus sum of $26,500 per acre to sign the lease and royalties of 25% if a producing well is established.  Many factors affect lease negotiations.  But working together is a good idea.  We recommend that you do NOT sign a lease until we have negotiated the best possible terms for you and your neighbors.

 
8.    Who are the key players in this area?

The Harding Company and Exxon Mobile (through a joint venture known as DDJET), Chesapeake Energy (represented by Dale Resources), XTO, and Four Sevens (recently acquired by Chesapeake) are a few of the players in N.E. Tarrant Co.  There are also several medium-to-large sized companies with plenty of capital behind them who are interested in becoming part of the action in the Barnett Shale.

 
9.    What are the ordinances for the City of Hurst?

The most important ordinances for the City of Hurst are the 600-foot set-back from parks and residences for any drilling site and the noise ordinance specifying a maximum of 85 decibels at a distance of 300 feet.  You can learn more at www.ci.hurst.tx.us or contact Jeff Jones, Asst. City Manager.

 
10.          Where else can I go for more information?

You can visit any of these sites for more information:

a)    www.forthworthgov.org

b)    www.barnettshalenews.com

c)    www.barnettshaleexpo.com

d)    www.neighborhoodnews.tcu.edu

e)    www.worlenergysource.com

f )    www.energybulletin.net

g)    www.askchesapeake.com


You can also watch a Gas Drilling video, produced by the City of Fort Worth, on cable channel 27 or attend a Public Educational meeting hosted by the City of Fort Worth on the last Thursday evening of each month.  Check the City of Fort Worth’s website for details.


11.  If I sign a lease and get my signing bonus, am I sure to get royalty checks for the next 20-40 years?

NOT AT ALL.  Ignoring the possibility of a dry well or one not worth converting to production (since there is over a 90% success rate locally), most people in the lease area WILL NOT end up as part of the "unit" even if the well produces and thus they will never get another payment after thier signing bonus.  See next two questions to understand why.

 

Q.  How is the well laid out?

A.  Picture a wagon wheel with 6 to 9 spokes.  They drill down about 1.5 miles at the center, then they go out horizontally underground for about 6,000 feet (a mile is 5,280 feet) for each spoke.  Thus the circle that makes up the wagon wheel is over 2 miles across.  The spokes can meander, they don't have to be straight.  If your property is directly over a spoke, or if it is within 330 feet of the line directly above the spoke, you are in the "unit" and will get royalties for any gas produced.  Although now, many coalitions are signing communitized leases and everyone in the coalition who signs shares in the royalty payments.

 

Q.  What if I don't sign?

A.  As long as they get a certain percentage of the land within the "wagon wheel" circle leased (I keep hearing 50%) then they can drill the well.  They can either meander the spokes to avoid being under or within 330 feet of a non-leased property, or they can go within 330 feet (but not under) an unleased property and simply not "frac" a short length of the spoke in the area of that unleased property to attempt to not frac under your property.  Either way, you get no royalties, no signing bonus, and because they've taken the gas out around you it is unlikely another company will be drilling a well in that location in the near future, so you get nothing.  You can abstain on principle if you are totally opposed to urban drilling or something else such as the drill site, but they are almost certain to get over 50% of the land leased and continue without you.  Working together as a group gives us better negotiating leverage, since it is easier for them to skip a few property owners here and there than to have to skip multiple neighborhoods, but we can only try to get a good deal for everyone, we can't be unreasonable or we would make it unprofitable for them to even do the well