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.