(Frequently Asked Questions)
How do I know whether I have the mineral rights to my property?
The only way to be absolutely certain you own the mineral rights is to do (or have someone – like an oil-and-gas attorney, or petroleum landsman – do for you) some exhaustive research of courthouse records of your property. That’s exactly what’s being done by the companies offering to lease your mineral rights. You can be sure they know you own the rights before they give you any money for your consent to drill under your property.That being said, if the homeowner/builder from whom you bought your house owned the mineral rights but did not specifically reserve them, the rights passed to you. To reserve the mineral rights, the seller must have included a reservation or exception to the property deed stating that the mineral rights were not being sold with the property. Such reservation or exception will be found in your Deed of Trust and/or your Warranty Deed.
During our neighborhood meeting, one of the speakers strongly suggested that the average homeowner does NOT need to invest a lot of money & time to find out if they have mineral rights. The gas companies will be doing that reasearch for you.
Why should I not sign an individual contract with a natural gas leasing company?
You have every right to sign an individual agreement with a natural gas leasing company. You must do what’s best for you and your family. But, your chances of getting a better deal through group negotiations are much improved. We’ve yet to see an instance where an individual property owner received as much or more $ than the surrounding neighborhood who negotiated. And by “better deal” we don’t mean just the money. Negotiated contracts usually result in protections to the homeowner that individual contracts lack. For example, most contracts will contain a royalty percentage – money due the homeowner as natural gas is actually obtained from a drilling site. Negotiated contracts will usually stipulate that such royalty amounts are to be figured before costs incurred by the drilling company are subtracted. (Call it a “gross” price vs. a “net” price.) Individual contracts rarely contain such language, because the homeowner isn’t versed in natural gas leasing agreements.
Where are the natural gas drilling sites to be located?
Not all site locations have been determined. Lake Arlington Baptist Church on Little Road is considering a drill site on their property. And that’s good news for us, because proximity of a drilling site enhances the chances of the surrounding area to negotiate a very good deal.
Why are leasing companies offering different amounts per acre to individual property owners in the same area?
Within the Little Green Ark area, residents have received dollar offers per acre that vary by as much as $1,750. That would seem to suggest that natural gas leasing companies are considering the surface value of a property when making an offer – and maybe they are. But that shouldn’t matter at all to them, considering what they are really interested in is below the surface. There should be no correlation between the value of a house on the property and the per acre value of the natural gas deposits below it. Assuming you fully own the mineral rights, your signing bonus will depend primarily on the size of your lot. This is an example of why unified neighborhood negotiations are the preferred option over individual settlements.
How can I get an idea of the amount of signing bonus I’ll receive?
Since size of the lot is the primary consideration in the bonus received, determine the length and width of your lot. Dimensions of your lot are shown on the survey done at the time you purchased the property. If you can’t find any documents with the property dimensions listed, pace off the lot yourself. It certainly won’t be exact, but it will give you a fairly close approximation. Multiplying the length and width will give you the square footage of the property. Divide that figure by 43,560 (the square footage in an acre). The result is the acreage you own. Multiplying that figure by the amount per acre your neighborhood committee successfully negotiates will give you a general idea of the amount of signing bonus you’ll get for the lot. (If the negotiating committee can get measurement to the center of the street included in the contract, that will be additional money.) So, for example, let’s say the lot measures 120 ft deep by 80 ft wide, and we negotiate for $18,000/acre: 120×80=9,600sq ft, divided by 43,560 = .22 of an acre (rounded). So, your lot is .22 of an acre. At $18,000/acre, your signing bonus for the lot would be $3,960.
Any idea of the size of the royalty check I’ll receive?
A precise dollar value for the royalty checks won’t be known until after gas is received from the well(s), and estimates at this time vary widely. A fairly conservative estimate has royalty checks at around $300-$400 a month for a 1/4th acre lot (with good, solid production at the well head) for the first year or so. For the next year or two, the amount might be closer to $80-$100/mo. Three or four years after the start of production, royalty checks might be closer to $50/mo. But checks in that approximate amount might last 10 or more years.
There is a strip of land behind five or six homes on Basswood Court that is not on our deed, however, we pay all the taxes for this strip of land. Can it be included in the acreage?
Bob – This is an interim reply, as your question requires a legal opinion. Suggest you pose the issue at one of the meetings. Can do it privately with our legal representative, if you would prefer.
Do we know what we are planning to negotiate? Are we just planning to negotiate the initial lease? Will we be negotiating 1/5 or 3/16 of the profits from the wells? Will we be paid as soon as the drilling at the wellhead is started or only after the drilling has been paid off?
Diane,
Our negotiating committee has been meeting with the gas leasing companies and should have some information to report very soon. I hesitate getting into the details, because I’m not on that committee. As soon as we hear from them, we’ll post details on this website, and will be sending out e-mails.
Skeeter Murley – Website Coordinator
YES, I NEED TO KNOW IF THERE IS PAPER WORK I SHOULD OF ALREADY SIGNED. I HAVE NOT RECIEVED ANY EMAILS ON ANY MEETINGS . I JUST FOUND OUT ABOUT THE WEBSITE. I APPRECIATE ANY INFO YOU CAN GIVE ME. I ASK THIS BECAUSE OTHERS I KNOW HAVE GOTTEN EMAILS.MY ADDRESS IS ON THE LIST. NOR HAVE I RECIEVED ANY MAIL CONCERNING THIS. THANKS, KELLI ROOKS
Kelli – No, there isn’t any paperwork that you should have already signed. You haven’t received an individual e-mail regarding a lease signing meeting because Jewell Dr. hasn’t been scheduled yet. (Please see our 24 Mar posting “Lease Signing Meeting Update” at the “Home” tab on this site, which explains who is involved in the first round of signings; etc.) Please keep watching the site for important news regarding the signings, and other information that we may need to pass on. Also, in the next couple of days, you should be receiving a letter from Paloma that will make “official” our agreement with them.
when will the Holly Hollows section sign up? as of yet we have not received lettter,any word on when that will be coming?
Looks like the Holly Hollows area will sign on Apr 21. Paloma advises that their letter is being mailed today.
i already sign 2 months ago and our sign bonus amont was 7,500 per acer, and now same company is giving 25,000 per acer , should i cancle my lease or wil they automaticly send the check for current offer, i have not recive any money from them, i dont know what to do ? its a big diffrence in the amount.
thanks
Sorry for these strange questions.
Sounds like a great thing.
Is there a down side or negative to this? Is there anything I should be considering? Am I waving any rights that I may want to preserve?
Once again sorry if I am asking bad questions.
During the signing meetings, are we able to dicuss the inconviences of construction, truck traffic, and potential noise issues associated with drilling sites? I’ve heard of people having complaints on these issues and I’m not sure if the local residents near a site were always compensated for their daily and nightly troubles.
I’m asking because of the potential of Lake Arlington Baptist Church being a site.
Altaf – To best answer your question, you should consult an attorney. As we understand these types of situations, though, the lease you signed is a legal contract, and as such, you just can’t cancel it. If they haven’t paid you in the time frame they said they would, you might have the beginnings of a case against them. Again, an attorney can best help you in this regard. One thing is probable, however – they won’t send you more money than you contracted for.
David E. and Deana – Probably the biggest negative to this process is the environmental impact – particularly the noise (trucks hauling waste water 24/7 for a few weeks; drilling and compressor operations) and dirt (dust from the truck traffic, if dry, or mud on the nearby roads if rainy). City ordinances help protect us, but there still is going to be noise and dirt for a while. Once the wellhead becomes operational and the drilling rig is dismantled and removed, the noise and dirt abate – hopefully to a satisfactory level for everyone. The well site will then be made to look as environmentally attractive as possible. If Lake Arlington Baptist Church property does become a well site (and that is far from certain), be assurred they will insist every means possible be taken to ensure the least detrimental effect to the neighborhood. Look at the Fort Worth Star Telegram – Barnett Shale Info link for various discussions on this subject. The signing meetings are not set up as a forum for questions and answers – as they were for our two meetings before we reached an agreement with Paloma – but while there you certainly can speak to a Paloma representative about your concerns.
We are on Colleen Drive, and as yet have not received a letter. Do you have any further information about when we should be signing?
Barbara – Paloma has announced that, as part of Group 3, the property owners on Colleen will sign next Monday, April 21. We will post that information on the site later today.
We have 2 properties. One on Trail Oak Ct. and Atlantis Terrace. I have noticed the signing for these meetings has already occurred. Who do we need to contact for information on signing?
Heather – Trail Oak Ct. is in Group 1, and they signed April 7 & 14. Atlantis Ter., in Group 4, doesn’t sign until April 28. You can sign for both properties on the 28th. (Please note that if you can’t sign on the scheduled date of your group, you can sign on any scheduled date after that. Your material will be on hand. You just can’t sign before the scheduled date.) I suspect you haven’t previously contacted Little Green Ark and given us you e-mail address; otherwise, we would have included you in our mailing of the signing schedule for our whole area, what to bring, etc.
Is a property title and deed of trust the same thing?
Bob – Your question would best be answered by an attorney or real estate person. For a quick, non-legal reply to your query though, we would say “No”. “Title” refers to the legal ownership of your property, whereas the Deed of Trust secures your property to the lender from whom you borrowed the money to buy the property.
How do I get involved with a neighborhood contract? Is it too late?
Paloma wants to sign me individually.
I live in the Rushmoor Addition off of Woodside Dr
Jennifer – For the area just east of Woodside and north of Mayfield, we know of only one, small organized group, and that group involves only residents near Park Run Dr. They have already signed, however, and since you are outside their area, you likely couldn’t join them anyway. Reference to the Star-Telegram’s blog site doesn’t show any other organizing in that area, but there may be some activity that hasn’t made itself known yet. We do know, however, that many (if not most) property owners in that general area have already signed (or are in the process of signing) individually with a leasing company. You may want to canvass your immediate neighbors to determine interest in starting your own organizing effort. If that fails, your only viable option would seem to be to go ahead and sign on your own.