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.
7 comments
rickwhitbeck says:
September 15, 2010 at 2:19 pm (UTC -5)
Good article, thanks for all your work in disseminating information. On Sept. 13, I received a letter from The Caffey Group offering $3000/acre for 5 yrs. with 22% royalty. What do you know about this offer? I live between Rufe Sno and Vance Rd. south of Loop 320 in the old NRH community.
tbc27143 says:
September 15, 2010 at 9:05 pm (UTC -5)
I signed the lease long before anyone ever spread the word that there was a coalition. Am I stuck with what I signed even if everyone else gets more money?
Techkat says:
September 15, 2010 at 10:41 pm (UTC -5)
Sadly, once you’ve signed a lease you’re stuck with it until it expires. A lease is a legally binding agreement.
The NHMOC has been in existence for two years or more and we’ve done everything in our power to make sure that everyone knows about us. We’ve handed out flyers and visited with people door-to-door, sent snail mail, had meetings and the web site has been up for two years.
Please let your neighbors know about us and help them avoid making a mistake by signing too soon.
Techkat says:
September 15, 2010 at 10:54 pm (UTC -5)
Hi Rick,
We’ve been receiving a lot of questions about the Caffey offer. I am not at liberty to disclose details in this venue, but I can tell you that the Caffey Group will never make you the best offer you can get. Their goal is to “buy low and sell high”. They will, of course, pocket the difference. That’s how they make money.
The NHMOC, on the other hand is working to secure the best possible deal for everyone in the coalition by working directly with the oil companies through our attorney who has already secured substantially higher deals for two nearby coalitions. I truly believe your best interest will be served by being patient and leasing with the coalition.
Kathy Maestas
Jessburns003 says:
September 16, 2010 at 9:32 am (UTC -5)
I live on Briley in North Richland Hills, My husband got a phone call from some company asking if we would sign for $800. Not too sure what Well they are talking about or if Im in the right group. Can anyone help?
Techkat says:
September 19, 2010 at 10:13 pm (UTC -5)
This message was responded to directly by email.
Admin
cwrohde3 says:
September 28, 2010 at 3:51 pm (UTC -5)
I, too have received an offer letter from the Caffey Group and a phone call from their rep Justin Ladner at 817-408-0450! It was also for $3000 and 22%.for a term of 5 years. Told him I’d be going forward thru the efforts of NHMOC. The info I got out of him, true or not, was they were looking at well sites WEST of Rufe Snow with an unknown latitude. (? Hmmm). He didn’t seem TOO knowledgeable – or wasn’t saying. FYI
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