Overton Park Neighborhood Association

General Topics

•Safety•Pollution and Noise•Drill sites•Compressor sites•Road Use•Neighborhood benefits•Individual benefits•others

Lease Terms

•Bonus per acre•Royalty•Primary Term•Pooling•Royalty deductions•Horizontal Severance•Top Leasing•others

Park Hill Gas Leasing TermsIssue Chesapeake/Four

SevensEXT/FW Energy

Primary Term 3 years (&2) 4 years (&2)

Bonus per Acre $15,000 $15,000

Bonus for Streets/Alley Not Addressed Yes

Royalty 25% (&3) 25% (&3)

Royalty Deductions Taxes only Taxes only

Surface Waiver No operations but gives ingress/ingress

No operations within 600 ft.

Compressor site 1,000 ft. set back 1,000 ft. set back

Shut-in fee per acre $25 (&3) $25 (&3)

Pooling 640 plus 10% tolerance 640 plus 10% tolerance

Park Hill Gas Leasing Terms – cont.

PARK HILL NEIGHBORHOOD ASSOCIATION

Issue Chesapeake/Four Sevens

EXT/FW Energy

Noise Abatement &11 &11

HOA contribution $15,000 pre 100 leases with $75,000 maximum

$10,000 per 100 leases with $50,000 maximum

Drill Site 8th Avenue site proposed Not restricted except for prohibition on 8th Avenue

Continuous operations &5 &5

Proportionate reduction &7 &7

Assignment by lease Permitted (&8) Permitted to XTO and otherwise with notice to Lesser (&8)

Lessee's right to release Permitted (&9) Permitted (&9)

Horizontal severance Not addressed Yes (&9)

Indemnity &13 &13

Park Hill Gas Leasing Terms – cont.

Issue Chesapeake/Four Sevens

XTO/FW Energy

Top Leasing Lessee -1st right of refusal to match

Permitted without restriction

Notice to lessee and opportunity to cure

Yes (&15) Not addressed

Perpetual subsurface easement

Yes (&16) Not addressed

Lessor’s title warranty General warranty (&17) Warranty disclaimed (&15)

Resources

Railroad Commission: www.rrc.state.tx.us/faqs.html

City of Fort Worth: www.fortworthgov.org/PlanningandDevelopment/info/default.aspx?id=30590

Fort Worth League Of Neighborhoods: www.fwlna.org/Gas%20Wells/Gas%20Well%20Resources.htm