Mineral Rights in Texas. Barnett Shale ! How will it effect real estate Transactions?

By
Real Estate Agent with Nextage Lincoln Ray Realty

 

Below is information gathered through many resources I would like to share with all who have interest or are effected by the Barnet Shale.

Attach is an information link to a 138 page presentation.

http://console.mxlogic.com/redir/?5dBVMsyzsSCCYMOeppdw0y6N1IW4Zf_MZqLbUxmRc6ty3pyEMjQ_NkdlmSQNkoCSwmVp1QTvHFIe3AnQjhOCrKrlYZwttc5aQxOVIsCCOrhjK-OM-DsQsCQPhOr5P2hEw19fPh05Lz4IHI3h04ERrmd40bZqIpCV-7PM76Qjq9JddVxAsO-runii

 

When sellers are signing are they considering every well is frac'd with about 150,000 bbls of water (1 bbl = 42 gallons).  If they start producing the well, about 50% of that water comes back in the first 7 to 10 days.  

Since a water truck will only hold 150 bbls at the most, you'll would have 500 trucks per well hauling water during that 7 to 10 day period.  So, you get the excitement of having the drilling (think 30 days per well), then you get to endure the water hauling activity tearing up your roads.  But wait, there's more - you'll have a pipeline laid somewhere through your golf course to get the gas to market.  

It's funny how nobody ever talks about the pipelines or the water trucks when they're telling you how getting $50/month is a great deal for your 1/4 acre.

 

Would you BUY a house by a well or pipeline?  

Can you imagine selling a home while a WELL is being DRILLED?

 

 

 

Don't rush to sign anything.

What issues might Homeowners associations face?

  • Access
  • Pipeline easements
  • Environmentally sensitive/ floodplain areas
  • Proximity to occupied residences
  • The financial ramifications of drilling on site if surrounding neighborhoods don't sign leases

Is Cherokee Horn is most likely going to "flip" the site and will not actually do the drilling? Will there be a 3rd party involved?

Have any of the three leases applied for a permit from the town or city?

Will Drilling a well take approximately 30 days or more and what are the costs?

Will each site  have multiple wells? (How many?).  

Doe Flower Mound's ordinances regarding gas drilling?

What happens if the owner signed a contract?

Financial rewards ? Taxes?

  • Leases can also be negotiated that can include quality of life and environmental controls and provisions.
  • Surface use provisions

Mortgage company requirements, Owners may need to notify lenders and could be charged fees if applicable. 

The competitive nature of the gas leasing industry

Verification of who owns the mineral rights and what percentage?

Provide assistance and direction to HOA's to organize a community wide evaluation and response to current and future lease offers, including assistance with the performance of pertinent research on issues. 

Attend meetings of organizational groups and coordinate presentations to home owner groups and town officials as required. 

Advise and assist with education and understanding of gas leasing issues and leasing and drilling activity. 

Review and advise on relevant background, history and experience of drilling companies involved. 

Assist with negotiations with driller(s) and/or landmen in gas leasing matters. 

Review proposed lease forms and advise on suggested changes. 

Prepare lease addendum to address needed changes in terms and provisions in lease. 

Assist in organization of neighborhood lease signings.

 

 

Flower Mound Community Against Urban Drilling (FMCAUD)

  

This group is in the process of forming.  To learn more about this group see their webpage at http://stopthedrilling.blogspot.com/    

  

 

Posted by

Suzy Britz

214-448-2888

suzybritz@gmail.com

Call or Text for questions or an appointment to view homes 

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