SBHA Meeting November 17, 2008
First United Baptist Church Benbrook
Jess Jordan called the meeting to order at 7:00 pm. He asked if anyone needed a Memorandum of Intent to join. Minutes from last meeting was voted on. All in favor. Motion passed.Treasurer was not here to read the treasurer’s report.
The Timbercreek Neighborhood Association has some nice signs. Motion made and passed to get SBHA professional signs made.
This is an information meeting only. Jess has had information sent to him. Bob West, an oil and gas well lawyer, has an article on what to do for a neighborhood association:
1. Negotiate as a group. 2. Try to get competing offers. 3. Get a knowledgeable gas and oil lawyer – Janet is in house lawyer. 4. Communicate with your group often. 5. Be patient!
The dues are $5.00 a person; extend to January 1, 2010. Need a vote for the $5.00 paid this year extend to next year. Motion made and passed. All in favor.
Jess gave information on how they drill and frac, and they cannot go in and drill under your property without permission.
Vince Brown is the chairman of the Negotiating Committee. Vince sent out 5 letters. Chesapeake, XTO, Vantage Energy, Broadway Minerals and Titan Resource of Fort Worth. He read the letter that was sent out. The only response was from Broadway Minerals. This offer was for 375 acres (all of Benbrook Lakeside Addition) for $X per net mineral acre. Y % royalty. # yr primary term with ## yr option. An additional $Z per acre for the ## years. This is if they can find any minerals in this subdivision. Vince’s opinion the $X per acre is very low. The problem is the economy and low natural gas price.
One question was about Devon. XTO and Chesapeake has done all this area. Titan did Wedgewood area. Vince will send a letter to Devon.
Another comment from the audience: Devon is here to stay. They are near Godley.
Jess gave his phone number 817-249-7509 if anyone has a company to send a letter to. Jess attended a town hall meeting. Chesapeake gave $500,000 to Benbrook. They are still spending big $$$ so we need to wait until the economy turns around, the gas price goes up, etc.
Question: Is there a time limit on the offer: No time limit.
They can buy it for $3,000 an acre then sell it later for $25,000 an acre. We can do those ourselves.
Vince checked into other companies. They don’t actually do the drilling. Dale Resources Chesapeake retains them to get leases for them.
Question: How binding is the lease agreements. Westcliffe signed and they are now getting letters that they are not following through because of the economy, etc. Vince said that both sides did not sign the offer. Until both parties sign it – it is not binding. It’s like any contract – both parties have to sign.
Jess talked to Chesapeake - there is still activity going on.
Need a motion for Vince to spread out a little more. Kate made a motion to send a letter to Devon Energy. Seconded. Motion passed.
Question: A lady associated with the President – center of road or edge of road. Is the center of the road our measurement? We need to make sure it is the center of the road measurement. Vince said we got a letter from City of Benbrook that center of road is the true measurement.
Vince said Negotiating Committee has no authority to sign leases. It is everyone’s individual responsibility to sign. We are not going off to sign a lease without you knowing about it.
Question: At one of the other meetings – you talked about writing a check at signing or draft. Vince said each lease is negotiable. Some companies want to do a draft or wire transfer. Jess said our negotiating committee is asking for a check. No voucher, no draft.
Question: What about when we don’t own all the mineral rights. If we get a lease offer, if we sign the lease we get 50% of that. They (the gas lease company) have to deal with The Amon Carter Foundation also. We are keeping the Foundation informed and they will keep us informed.
Question: It sounds like there are more entities than we know of. Instead of making a motion every time lets send a form letter to as many companies as we can. If we get an offer you will know about it. Prior motion amended authorized Negotiating committee to send out standard letters without permission from SBHA every time. Motion made and passed.
Question: Since the Amon Carter foundation has 50% of the mineral rights. Jess said they will inform us. We assume they can do anything they want to. We have no guarantee but the guy at the Amon Carter Foundation. The foundation has split. 25% to Carter/Monnig Foundation 25% the family still has.
Question: Where can we drill a well to be far away from the house, school. Vince said : It needs 4 acres. There are regulations for distances. At this point – where a well site can go in would have to be on Hwy 377 or possibly the land adjacent to the cemetery. The Corps of Engineers is out of the question.
Question: One guy was told by an oilman at work, the signed bonuses they can’t get – they can’t get the signing bonuses (Foundation). Vince heard the same thing. If you have 50% of the mineral rights – they are entitled half of everything including bonuses. The royalty is split and he believes the bonuses are the same.
Any more questions? No more questions. After Christmas we will have another meeting. Meeting adjourned 7:50 pm.
Submitted by Linda Conner, Secretary.
