There has been a lot of activity since our last update. As we mentioned, many of our neighbors in South Hurst whose leases expired in April have joined NHMOC, and new MOI ‘s come in every day. We now have over 250 members in the area from Pipeline to Hwy 10, and 820 to Precinct Line.
Chesapeake has a well site at Billy Creek and Hwy 10 and they are working to secure a drilling permit from the City of Hurst. Dawson Geophysical is canvasing the area for approval to conduct the geo-physical survey to help plan the most efficient well paths. This is a good thing and helps move the process forward.
North of there, from Pipeline to 820, the Caffey group has been sending letters and knocking on doors, offering $3250 per acre. Dale Properties, working for Chesapeake, is calling on homes north of 820 and west of Davis. They are offering $2000 per acre and telling people they have 90% of the property already leased, and you better sign up with them or you may miss out.
This is not true! The map we have included shows the NHMOC footprint with the property leased to Chesapeake highlighted in red. While the area at Iron Horse Blvd and Mid-Cities is heavily leased to Chesapeake, and includes the Engler well site that has been permitted by the city of NRH, that area only represents a linear well path of about half a mile. The Engler well site could easily reach south almost to 820 and Davis.
Chesapeake is building a frac pond at TCC and the Engler site. This indicates they plan to drill several wells from that location. The City of NRH has told us they expect Chesapeake to drill as many as a 12 wells from each TRC site, and just recently permitted two more well paths from the Harwood and Blvd 26 TCC site. We have a strong membership in those neighborhoods west of the Harwood location, North west, and south of the Harwood Blvd 26 well site.
Our attorney, Mark Nastri, who brokered the NETGLO and WAMRA deals is working directly with the gas companies on behalf of the NHMOC. The Chesapeake deal he negotiated was $5,250 per acre for 3 years, an additional $2,500 to extend the lease to 5 years, 25% royalty , your property measured to the center of the street, and his 16 page lease form that offers protections for the property owner. We expect to get nothing less for our members.
The fact that Chesapeake has a large amount of property already under lease inside our footprint (the property in red) and seven existing well sites (in the outer circle) should be a strong bargaining point in our favor. In order to fully develop the capability of those well sites, they need to lease the neighborhoods that belong to the NHMOC.
Everything they are doing indicates they plan to fully utilize those existing well sites, and to do that they need us. The longer they wait, the more property under previous lease agreements will expire. We need to stay united and reap the benefits that a united coalition can bring to the neighborhoods.
So please continue to hang in there with us. We are continuing to work for you and all of our neighbors. Do not be fooled by what the lease brokers are telling you. It is their job to get as many leases as they can at a bargain basement price. You can be sure that they are making money by doing so – money that could be going to YOU if you can wait for the coalition to complete its task.
We may be announcing a meeting soon, so please keep reading our updates.
