Barnett Shale

Catching up with East Trinity Mineral Leasing Committee (Euless)

The East Trinity Mineral Leasing Committee is well on its way to getting its members signed up for the lease it agreed to last month.

The Euless group, which consists of the Stone Hollow Addition and the Park Hollow Addition subdivisions, is recommending that its members sign the offer from Cheaha Land Services, which is representing Carrizo Oil & Gas.

The lease includes a $19,000 per-acre signing bonus, a 25.5 percent royalty and an initial three year term with an option to re-sign for another two years at $12,667 per acre.

Dale Property Services later sent competing offers of $17,000 an acre, a 25 percent royalty, a two-year primary term and a two-year option.

The Euless group has already held four signing meetings and two more are planned. They are:

• Sat., May 10
• Sat., May 17

Both meetings are from 9 a.m. to 4 p.m., at the Airport Freeway Church of Christ. That's at 210 Airport Freeway in Euless.

--David Wethe

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

Euless/Fort Worth neighborhoods getting together

The East Trinity Mineral Lease Committee, formed Jan. 30, says it is holding meetings to bring together its approximately 640 households in the Glen Hollow, Park Hollow, Stone Hollow, Trinity Glen, Twin Creek Estates and Whitner Estates neighborhoods. The properties are generally east of Euless Main Street, south of Texas 183, west of American Boulevard and north of Trinity Boulevard.

Organizers Angie and Doug Hackett report negotiations are under way with Dale Property on behalf of Chesapeake Energy and with Cheaha Land on behalf of Carrizo Oil and Gas. No agreements have been reached with with either group. ETMLC has two upcoming meetings scheduled: 1 p.m. Saturday at the intersection of Hilton and Dickey drives for residents of Twin Creek Estates; and 2 p.m. Saturday at 13229 Spinning Glen for residents of Trinity Glen. More information is available at the group's Web site listed above.

-- Jim Fuquay