East Phase. The rest is the West Phase and in current negotiations with interested parties.
(b) What do you mean an East Phase and West Phase? I thought we are one big group.
Drilling at each site can only reach so far. For example, if a drill site can only go 1 mile out, that will only encompass those who are 1 mile away from the drill site. Multiple drill sites in a city can be permitted by different gas companies therefore we will need to negotiate with each respective company/broker.
2. What does it cost to join?
There is no cost to join or to remain a member of H.W.C.C. We are in need of volunteers such as Addition and Block Leaders though.
3. Why should I wait to sign?
You are free to negotiate and sign any lease you want at any time. However, we believe a lease negotiated by an association/coalition with strength in numbers will result in better terms. We not only take into consideration the signing bonus, but also the WHOLE lease. The bonus is a small part of our negotiations. We want a lease that protects us for the duration which can be up to 30 years.
4. How do I know if I own my mineral rights?
Your property purchase agreement and/or title policy will generally note if the minerals have or have not been reserved (kept by someone else). If it does not show them as reserved, you probably own your mineral rights. Normally, lease agreements do not require the property owners to warrant title to the minerals, so it is up to the gas company to determine the ownership of the mineral rights. Our lease will prevent members from having to give back monies they may have received in cases where mineral rights are subsequently determined to belong to someone else.
5. What if I have a mortgage or decide to refinance or sell my property?
Some mortgage documents prohibit mineral leasing, however, mortgage companies have been willing to allow leasing if the property owner request a subordination of the mortgage companies’ interests. This subordination usually requires a fee to be paid to the mortgage company. You should check with your mortgage company to determine if this is a requirement in your mortgage papers. If you sell your property, you are faced with the decision to sell your mineral rights or reserved them for yourself. We cannot advise you on this matter, it is entirely up to you and you should consult a professional about this.
6. What financial terms are we going to get?
We cannot speculate about the final terms (signing bonus – royalty payments) of a negotiated lease at this time. We will endeavor to obtain the best possible financial terms for our members.
7. Where are the drill sites?
There are three. One is one on the corner of Hightower and Rufe Snow typically called the Graham Ranch. The second one is believed to be the "horse farm" on Champan Rd. The third one is at the Harvest Church on Hightower and Denton Hwy. Only the Graham Ranch Site is up. Permissions have not been granted for the other two locations to be drilled.
8. What is the surface impact of oil and gas operations?
Our lease will provide for no surface use by the gas companies or their associated partners. The drill site will surface use and could last for a number of years, although the actual drilling could be for a short time (a matter of a few months at a time) and examples of the drilling locations can be found at Barnett Shale News on the LINKS tab above. Drilling and operations activity is regulated by federal, state and local regulations, and our lease will provide for as many specific restrictions above and beyond those as we are able to negotiate. Water, air and noise concerns will be particularly important. It is also important to remember that the lease could be in force for a long time to come (10, 20 or more years). Please view the Interactive Drilling Brochure for more information regarding the drilling process.
9. What are the tax implications?
We cannot advise you on this matter. It is best that you consult your tax professional.
10. How do I determine my acreage?
You need to know the measurements of your property that can be found in your closing papers when you purchased your home. Check the plat record for those measurements. You may want to include in your measurements one half (1/2) of the street or streets and any easement, alleyways or drainage areas adjacent to your property. You may also use an acreage calculator. We will negotiate the inclusion of those areas in our lease. The energy company will figure your property size, but is always in your best interest to know the size of your property before the signing takes place.
11. (a) I have signed a lease but have not gotten any bonus money or royalties, can I sign up with the H.W.C.C.?
Our advice is to write a certified letter addressed to the gas company that promised you the check. You should state they failed to honor their portion of the contract by not paying you the promised bonus money/royalites therefore you consider the contract null and void. Send us your contact information and when it is time to sign, attach a copy of your letter, along with the return receipt to the lease. It will then be up to the winning gas company to honor it. If you would like to join us and you have signed a lease and received bonus money, please seek legal advice.
(b) I have signed a lease but it will expire soon, can I sign up with the H.W.C.C.?
We represent everyone in our area of interest, however we cannot guarantee you will be able to sign a new lease. Our advice is to fill out a letter of intent with us and you can re-visit the status of your lease when we begin organizing our closure.
12. How can I join?
We have an electronic
Letter of Intent. A printable version is also available if you choose to mail it.
Sincerely,
Committee/Fellow Homeowners
