Aug 17

Summer 2017 Update on Gas Leasing for NHMOC

Back in 2014 we held meetings with the Caffey group to try and arrange a deal for our members on a gas lease. We supported The Caffey Group in the City Hall meeting where they applied for a pad site permit at the old North Hills Mall. The permit was approved for five years, which will expire in June of 2019.

Natural gas prices fell due to supply and demand. We realized this may be a long term project so we made a deal with Caffey that he would pay for our fixed expenses for the website, internet connection and land line phone for the Coalition. He has done that and we are prepared to maintain the website for at least three more years.

While natural gas prices in the US had dropped to $2.00 per BTU in 2016, they have risen to $3.00 currently, and have been projected to reach $4.00 by the end of the year. Four dollars, according to Caffey, would make it economical for them to lease mineral rights and start drilling. The price of Natural gas in Europe, China and South America is about $5.50 and the US is now exporting LNG. There are three new plants along the coast that are turning Natural Gas into LNG and shipping it overseas. There is a new pipeline under construction from the Permian Basin to Mexico to export Natural gas. The increase in Natural gas exports will increase the demand and raise the price to make it profitable to drill more.

It is possible that The Caffey Group will drill before their permit expires in June of 2019. We have over 2,000 members in the area reachable from the pad site at the old mall, including Car dealerships, the North Hills Hospital, and even the mineral rights to part of 183 north of the North east Mall.

The NHMOC is alive, and has the resources via the website and our mailing list to contact members when and if we begin negotiations on a mineral rights lease. Hopefully we will have more information to share in the next six months.

Paul Lee
President, NHMOC

Dec 22

Update On Recent Developments

Last July, the City Council awarded the Caffey Group, with our support, a padsite permit at the old North Hills Mall. During the next few months, there was little contact between us and the Caffey Group, as Caffey was further formulating their plans. Even the City of North Richland Hills that approved and regulates the padsite and drilling permits hadn’t been contacted by Caffey.

Accordingly, a month ago we reached out to Mark Caffey, and he asked for a list of our membership, as he was creating a map showing his leased property and our membership property to determine if the units could be drilled once an agreement was negotiated. Several conversations ensued, leading to a recent conference call with myself, Mark Nastri (our attorney), and Mark Caffey.

The map Caffey created shows the proposed units that could be successfully leased and drilled if a deal is reached between the Caffey Group and the NHMOC. With that information, Caffey was able to secure the additional partnership and funding to move forward with the project. Due to our non-disclosure agreement, I can’t mention the two partners but according to the Barnett Shale Energy Education council, they are both very reputable , well-funded, and active in the Barnett Shale gas play.

After the upcoming holidays, we will work with the Caffey Group to finalize negotiations, and move forward in lease signings for our members. While the bonus dollars and royalty percentage have not been finalized, we expect the bonus to be about 20% greater than what they have offered to the general public in the past. Our lease will also include measuring your lot to the center of the street, which can increase your lot size by around 15% on a normal lot, and about 25-30% on a corner lot. We will also push for protections against having production expenses deducted from your royalties and other substantive protections and benefits.

Mark Caffey told us he would no longer contact our members in order to sign them individually at the lower bonus, but would work with the NHMOC moving forward to sign property owners.

We hope to pick up the pace and have a deal in place by spring. We will keep you informed as any new developments occur.

Paul Lee
President, NHMOC

Jul 21

NHMOC Begins Talks With The Caffey Group

Chesapeake’s lease on the Hills Church of Christ has expired, and they have no current plans to drill in that area.

That leaves the Caffey Group with the flexibility of drilling the entire Kest A and Kest B units (on the site of the former North Hills Mall). Our attorney, Mark Nastri, and Paul Lee talked to Caffey representatives a few days ago on a conference call. We are moving forward with negotiations for a coalition lease and expect to start signing meetings as early as September. It is important to spread the word to your neighbors who may not be on our email list.

We haven’t yet finalized our terms but we are close, and they are better than what Caffey is offering individual property owners. So if you are a coalition member, hold firm. Your patience is about to be rewarded.

We now have new yard signs available to promote the NHMOC and its members in the neighborhood. The signs are free, and you can pick one up by calling Paul Lee at 817-284-4387. And as always, talk to your neighbors who may not belong to the coalition or may not be on the mailing list.

Jun 14

Well Pad Site Approved at the North Hills Mall

This past Monday night the NRH city council approved the permit request from the Caffey Group, for a gas well drill site to be located at the North Hills Mall property. The drilling permit is good for five years, includes up to 16 wells, and the Caffey Group has six months to spud the first well there. Once Caffey determines the well path for the first well, they will petition the Gas Board of Appeals for a permit for that well. At that time, any set back waivers will be addressed. Representatives from NHMOC attended the meeting and addressed the council expressing our endorsement of the permit request.

The Caffey Group provided the city with a map of proposed units as part of their request presentation. The proposed borders include Rufe Snow to the West, Glenview to the South, Harwood and Lola to the North, and Strummer/820 to the east. (Click here to view the map.) These borders could change. The Caffey Group may decide to drill part of a proposed unit and only offer leases to those properties with in the drill path for the first well.

In addition, there is an area south of 820 and east of Rufe Snow where Chesapeake had leased some property to be drilled from the padsite at the Church of Christ on 820 and Rufe Snow. It is possible that Chesapeake may drill in part of that area and Caffey in another part of it. Either way, the NHMOC is here to represent you.

Of note, over half of the properties within the Caffey proposed units are members of the NHMOC. This includes almost all of the commercial property surrounding the well site at the old Mall. We feel this provides us a strong advantage in negotiating with with Caffey Group compared to individual land owners.

“Don’t sign that lease!!” If a Caffey landman knocks on your door, be cordial, but remember that there is strength in numbers. We will seek to get better terms than they may offer you, as well as a much improved lease form that better protects you from an environmental standpoint and from having as many deductions from your eventual royalties.

We spoke with Caffey and plan to begin negotiating terms once they determine the well paths for the first wells. Stay tuned, as we expect a lot of activity in the next two to three months. Please share this with your neighbors who may not receive email.

We are ordering more yard signs that should be available in about a week. They will be free and we encourage you to post them on your streets and talk to your neighbors.

Paul Lee

May 29

New Gas Well at the Old Mall

It appears that The Caffey Group, a Tarrant County based oil and gas company, has reached an agreement with the owners of the old North Hills Mall property for a gas drillsite to be located behind the United Methodist Church on Glenview Drive. Further, on May 15th, The Caffey Group petitioned the City Planning and Development Department for a Special Use Permit to drill up to 16 wells from that site. The request was approved by P&D Dept., and now will go to the City Council at their meeting scheduled for June 9th at 7:00 pm.

Assuming the drillsite gets approved by the City, we fully expect The Caffey Group will more actively pursue mineral rights leases within their final proposed units. The units are roughly outlined by Glenview Drive on the south, Rufe Snow on the west, Harwood on the north side, and 820 north to Bedford-Euless Road then north on Strummer.

This is very good news, in that this area is the heart of the NHMOC membership. We have over 1400 members in this area, including The Methodist Church, Catholic Church, and Ashwood Assisted Living on Glenview to name a few larger properties. On the Blvd 26 side of the Mall, we have the CVS store, Tropical Greenery, Cool Air, Golden Corral, Hooters, Allen Samuels car dealerships, Budget Inn, and many more commercial properties that surround the old Mall. Other major properties in the area include Huggins Honda, Academy Sports & Outdoors, Putt Putt and Conn’s Electronics.

We have met with The Caffey Group and also participated with them on a Conference Call with the North Hills Hospital main office in Nashville. Although The Caffey Group is awaiting word on their proposed drillsite and Special Use Permit, we anticipate that negotiations will commence shortly for a unified group lease form with favorable terms and protections.

Accordingly, it is important that we stay connected as a group, as there is power in numbers and unity, which benefits all involved on both sides of the lease. Please share this information with your neighbors who may not be receiving email. Of course, we will plan to attend the City Council Meeting on June 9th and will keep you informed as things unfold.

Feb 14

NHMOC Members Sign Leases

Last September the NHMOC arranged lease signings for our members in the TCCD South and The Leaf Units to be drilled from the well at Harwood and Blvd 26 on the TCC south campus. About 100 members signed leases at that time.

Shortly after the signings, Chesapeake went though a Corporate reorganization and closed the Fort Worth Office. We have reopened the lines of communication through their Headquarters in Oklahoma City and have established a working relationship.

The attached maps show an area outlined in black. Our members within that outline are eligible or have already signed our lease document with Chesapeake which includes $2,500 per acre signing bonus, 25% expense free royalty, and their property measured to the center of the street.

If you have property within the outlined boundary in the maps and have not signed a lease, we can help you complete that process. If you have signed our lease with Chesapeake and not received your bonus check please let us know and we can help resolve the issue. If your property lies outside the boundaries marked on the map, your property is not eligible for lease at this time. We are working on it…please be patient.

We can be reached at 817-284-4387, or

While this information only applies to a small portion of our membership, it is the beginning of a relationship that we hope will lead to future lease signing meetings for our members.

**NOTE: Please notice the center column on the Adobe download page. It offers you an optional free copy of McAfee Security Scan Plus. Note that the option is already selected with a checkmark in the box. UNCHECK that box unless you really want the McAfee program. Adobe Reader will still install just fine without the McAfee product.

Aug 31

The North Hills Mineral Owners Coalition and Chesapeake have a deal!

We have signed an agreement with Chesapeake Energy, LLC to represent our members in two units to be drilled from the TCC padsite at Harwood and Blvd 26 in North Richland Hills, Texas. One unit includes most of “Home Town”, and the other stretches south from Harwood toward the North East Mall.

The TCCD South unit proceeds west from the TCCD padsite through the apartment complex north of Emerald Hills, through Walker Creek Park, and through Home Town to Mid-Cities Blvd.

The Leaf 3H unit stretching south from the TDDC padsite is mostly commercial and already under lease, but includes our members from Harwood to Strummer. Everyone has been contacted and offered to lease on our negotiated terms with Chesapeake.

The lease agreement includes a $2,500 per acre bonus, with the property measured to the center of the street. This is about $1,000 higher than most local offers in past year or so. This center of the street measurement increases the lot size by approximately 10-15% on a normal lot and about 20-25% on a corner lot. (Note: Drainage canals are included also.)

The royalty percentage in our lease is 25%, and our 15 page lease includes environmental protections and limits gathering deductions that could reduce your royalty payments. We conducted signing meetings August 17th and August 19th. The property owners within the two units were notified by a letter co-signed by Chesapeake and the Coalition. Out of town and absentee mineral owners are being contacted individually to sign their lease.

This leasing agreement with Chesapeake is significant, as it establishes a working relationship between Chesapeake and the Coalition that will extend to our membership in other units that are created as new wells are permitted and prepared to drill. One example is the padsite at the Church of Christ on Loop 820 and Rufe Snow. According to the City, that padsite will be accessible after the first of the year due to the highway construction. If the price of natural gas increases over the winter, it will provide incentive to accelerate that project.

Again, the terms of the leasing program with Chesapeake seem to be much better than other lease offers that have been made in the area over the recent past. That said, you are under no obligation to accept the Chesapeake lease terms we have negotiated, and are certainly free to sign with another lessee…just beware of the fine print!
Stay tuned, as new information will be coming forward and posted as it occurs over the next couple of months.

Paul Lee, President
North Hills Mineral Owners Coalition

Apr 29

Drilling Activity Update for Spring 2013

The North Hills Mineral Owners Coalition is alive and well and working in your best interest. While activity has been slow due to the low price of natural gas, we are starting to see some signs of activity. According to the City of North Richland Hills, they expect eight new wells to be drilled this year on pad sites within the city. Three of those will come from the TCC pad site at Harwood and Blvd 26, and three from the Church of Christ pad site at Loop 820 and Rufe Snow.

The attachment TCCD South shows the unit to be drilled from the TCC south pad site at Harwood/Blvd 26. The area in Blue is Hometown, where we have a strong membership, the rest of the area in the unit outlined in yellow is already under lease. The apartment complex and the Walker creek park were leased almost three years ago. Chesapeake needs the Hometown land owners in order to close out that unit. Many folks there have received a letter from Chesapeake saying they have 30 days to respond to their offer. According to the City, Chesapeake hasn’t requested a permit for those wells yet and expects that to happen this fall. The fact that our meeting is after the 30 day offer indicates that timing is not truly an issue.

We have been in contact with Chesapeake regarding Hometown, and have a meeting scheduled with them on May 1st along with our Attorney. Our attorney believes the 25% royalty with “no gathering deductions” expenses deducted from your royalty payments is doable, as he has negotiated several leases with Chesapeake that offered that protection. He also believes we can do better than the bonus dollars they are offering in the letter sent to the Hometown folks. If you live in Hometown and haven’t joined us you can do that on our website Membership costs you nothing, and you are not obligated to accept the terms we negotiate.

The Church of Christ pad site will not be constructed until fall due to the Highway construction. The Chesapeake website shows maps of three proposed units from Loop 820 south to Blvd 26. We have a lot of members in that area and will work to support them as the pad site is constructed. The link below will open the Chesapeake web site showing those proposed units.

Please share this information with your neighbors, and tell them they can join us online at

Stay tuned we will have another update after our May 1st meeting.

May 11

Bond Passage Could Encourage Gas Development

Just a quick note to let you know that the North Hills Mineral Owners Coalition supports the passage of the bond issue in Saturday’s election as it will open the door for the development of the old North Hills Mall property which could then include a gas well.

So remember to vote on Saturday, May 12 and vote “Yes” on the bond proposal.

Mar 30

Town Hall Meetings on NRH Bond Election

The following article appeared in the NRH newsletter. We are encouraging our members to attend a meeting near you and support the bond election. Relocating the municipal complex to the old North Hills Mall property would provide the fast track for a development plan for the mall area, which needed to be presented prior to a pad site ever being permitted there. The city would need only 12 acres out of the 85 available, leaving plenty of room for gas development and additional commercial buildings.

NRH Newsletter:

Bonds for a new municipal complex including Police and Fire operations, Municipal Court and City Hall will be on the ballot for NRH voters in May. The City of North Richland Hills is holding several Town Hall Meetings throughout the community to inform voters about the upcoming bond election. The meetings are open to all interested residents. They are scheduled at the following times and locations:

Tuesday, April 3 at 7 p.m.
NRH Public Library, 9015 Grand Ave

Tuesday, April 10 at 7 p.m.
NRH Baptist Church, 6955 Boulevard 26

Thursday, April 12 at 7 p.m.
The Hills Church of Christ, 6300 NE Loop 820

Tuesday, April 17 at 7 p.m.
Center Point Church, 7804 Mid Cities Blvd.

Thursday, April 19 at 7:00 p.m.
Green Valley Elementary School, 7900 Smithfield Road

Thursday, April 26 at 7 p.m.
NRH City Hall, 7301 NE Loop 820

Tuesday, May 1 at 7 p.m.
Mullendore Elementary School, 4100 Flory Street

Information about the bond election is also available online at or by calling 817-427-6003.

Voter Registration Deadline: If you have not yet registered to vote, or need to update your voter registration information, you must do so before April 12 in order to be eligible to vote in the May 12 election. You can check your voter registration status and get more information from the Tarrant County Elections Office.

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