We have been in contact with Chesapeake land management and have talked about negotiating a lease document to use for our members. Chesapeake is reluctant to make a commitment to the coalition at this time, but is working diligently behind the scenes to attempt to lease our members using land companies like Crew Land Research, offering much less than our target of $5250 per acre for three years and 25% royalty free of expenses.
Meanwhile, Chesapeake has commissioned Dawson Geophysical to conduct seismic surveys in over 50 square miles including our footprint. Dawson’s permit arm, Gateway Permit Services is sending out letters to all of the property owners who are not already under lease. If a property is under lease, they don’t need additional permission to conduct the seismic survey.
The seismic survey is actually a good thing. They run a cable along the curb in front of your property. Using meters they can detect the shale formation below the ground to determine the most efficient well paths. This has no effect on your property, but is an important step toward developing the minerals in our area.
The scope of this project, including all of North Richland Hills, Hurst, Watauga, Colleyville, and Haltham City indicates Chesapeake is making a large financial investment in this area. With the gathering pipelines now working, and several surface leases in place for new well pads, Chesapeake intends to develop this entire area. We encourage you to grant permission for the seismic survey when they contact you.
The map of NRH (Click here to view the PDF map. It will open in a new window.) shows: 1) the property already under lease; and 2) properties whose owners have approved the seismic survey. As you can see, our membership is basically surrounded by Chesapeake leased property. They plan to have the seismic survey complete by the end of February. Once they have that information, we expect them to increase their leasing activity, not stopping until they have all of us under lease.
The NHMOC will continue to work for the best offer for our members, so don’t sell yourself short by signing for a smaller bonus and without protection from the expenses of compressing and transporting the gas to market.
Last night I attended a meeting at Glory Church in Hurst attended by representatives of Chesapeake and the neighbors near the Diffenworth pad site at HWY 10 and Billy Creek. Chesapeake is asking for neighborhood support in convincing the city of Hurst to relax some of their new well site regulations such as 24/7 air monitoring.
During the Q&A session afterward, I asked about the productivity of the wells in this area now that they are actually collecting gas. The Chesapeake representative said that the well at TCC in Hurst was producing above average for gas production compared to the rest of Tarrant County.
Taken together, all of this activity leads us to believe that Chesapeake is moving forward in their plan to develop our area of Tarrant County. According to the City of NRH, Chesapeake’s spurned efforts in Southlake have motivated them to increase their development of our area. Stay tuned; we should have more information once the seismic survey is complete at the end of February.