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Gas Leasing Ad-Hoc Committee
Report for January 2008
About three months ago, we sent to all residents of the greater Lake Country community, a post-card advising not to sign any gas leases that were being solicited by landmen working for XTO Energy, as we were going to negotiate a community lease for the benefit of all residents. This remains the same. Please do not sign anything at this time.
We have formed a committee to take on the task. The committee has met several times and has consulted an oil and gas attorney, a petroleum landman, a geologist and other experts in the field. These people are residents of our community and their assistance has been invaluable.
Many residents are no doubt aware of the success that many neighborhood associations in Fort Worth and Arlington have had recently in negotiating leases with gas companies. You may have heard of signing bonuses being received by residents in the $15,000 to $16,000 per acre range. Royalties in the range of 22 to 25% have been negotiated by most neighborhood associations. Back in October 2007, I was personally presented with a lease on behalf of XTO, which contained a $2,000 per acre signing bonus, along with a 20% royalty. Obviously, there is much room for negotiation.
Our negotiation is going to be more difficult than other neighborhood associations because of the fact that fifty percent of almost all of the greater Lake Country area is currently leased by XTO. Most people only own 50% of the mineral estate as the Amon Carter Foundation reserved fifty percent of the minerals when they sold property to the various developers.
Therefore, as long as the Amon Carter lease with XTO is in effect, it is extremely difficult to impossible to get several gas companies bidding against each other in order to drive up the price and percentages. XTO is aware of this and they obviously want to pay as little as they possibly can. For these and other reasons, this process will be slow. Your patience will be necessary. Time is on our side. XTO wants to exploit the gas underneath our properties and they will need to sign us up in order to achieve that goal. I ask that everyone remain patient through this process in order to achieve the best possible results for all residents.
Brad Shaw
LCPOA President
817-566-2963 x 715
President@elcpoa.org
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