It has been a while since we have had any relevant newsworthy topics to post here. As you all know, with the recession came a major slump in oil and gas leasing and development and, as a result, an end to the high signing bonuses of 2008. Happily, things are gradually starting to pick up again! Homeowners in several neighborhoods within our footprint have reported being approached by landmen offering to lease their minerals for the typical lowball bonus amount of approximately $2000 per mineral acre. We still believe we can do better than that.
Many of the leases that were signed prior to the “boom” are now expiring. The companies who hold those leases, as well as other companies, are eyeing those lease expirations and scrambling to get extensions or new leases signed.
We have recently been in discussions with a couple of different companies regarding the leasing of our coalition footprint, in whole or in part. It is our desire to lease the entire footprint if possible, with the exception of properties that have active leases already in place. With the pending expiration of a large portion of those leases, our chances of doing that are improving greatly.
Many industry folks are predicting gas prices to increase during 2010 to a possible high of over $7.00 per mcf, which is almost double the current price. If these predictions are accurate, it could put the power back in the mineral owners’ hands, where it belongs. Your committee has been active throughout the lull and remains dedicated to the cause. We have been working hard to attract the interest of the gas companies and to identify possible drill sites that can service most, if not all, of our members. But we still need your help!!!
We still need to organize all of our neighbors within the coalition’s boundaries who have not already joined with us by signing a Memorandum of Intent (“MOI”). The MOI form can be found here on this site, and completed and submitted electronically. If a neighbor does not have internet access, an MOI can be downloaded and printed out from here. Instructions for submitting the completed form by mail are included at the bottom of the form.
It is more important now than ever for everyone to talk to their neighbors, and particularly those who do not have Internet access, and encourage them to join with us. The better organized we are and the more MOIs we can present to the companies interested in us, the better the bonus and lease terms we will be able to negotiate for all. Even more importantly, we need to get the word out to those folks whose leases are due to expire within the year NOT to sign an extension or new lease without giving the coalition a chance to negotiate on their behalf first.
There is definite strength in numbers. We would like to increase our membership numbers to 80 to 90% if we can but the only way to achieve that goal is for everyone to pitch in and help get it done. You can contact Paul Lee at 817-284-4387 or Randy Garcia at 817-427-9864 for more information on how you can get involved. Your participation will make a difference and will be greatly appreciated.
2 comments
tbc27143 says:
May 9, 2010 at 6:14 pm (UTC -5)
What do those do that signed an extension before anyone made this group public?
You people kept these groups secret. I looked for info and could not find any then all of sudden you come out of the wood work.
Techkat says:
May 14, 2010 at 5:16 am (UTC -5)
We’ve been doing our very best to make sure everyone knows about the North Hills Mineral Owners Coalition! Our website has been online for two years now and we’ve publicized it at every meeting we’ve had. Residents have been urged to tell their neighbors about us and to join us in helping to get the word out. We’ve walked through the neighborhoods and left fliers on resident’s doors, made phone calls, sent letters and placed ads. If you missed our promotions we apologize.
If you have already signed a lease extension, you are bound to that agreement until it expires.