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
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