Offers and Deals

XTO Offer Rescinded, as of October 16th

All Signing Parties have been cancelled! XTO has rescinded their offer to the GRNA, effective immediately. See details below or view the News here.

Jim,

XTO Energy regretfully rescinds the offer to GRNA immediately.

Holland Acquisitions signed 80 leases last night on behalf of XTO. The signing event last night was for the Wintergreen II neighborhood, and the only folks who were turned away were those from other neighborhoods, for whom Holland did not have paperwork prepared. Again, no one from Wintergreen II was turned away, and Holland closed up shop when no one showed up for 45 minutes. Anyone who has signed a lease that Holland has in its possession as of last night will be paid.

The volatile market conditions we are all living through have caused corporations around the globe to refocus corporate strategy.

Regards,

Ryan M. Skelly
XTO ENERGY INC.
810 Houston St.
Fort Worth, Texas 76102

Earlier Proceedings, From October 1st

October 1 , 2008 - GRNA (Glade Road Neighborhood Alliance)

Dear GRNA Members:

The past week was quite busy with negotiating and going over the details of our agreement with Holland and XTO. Here is where we stand. We have given written intent to work with Holland and XTO per the following terms:

• $24,000 per mineral acre signing bonus
• 25% royalties $20,000 secondary term bonus (if it comes into play)
  

CLICK HERE to view the actual lease in the form we expect to be final (be warned, it is a complex document). The committee voted this past week and wound up with a 7-5 vote in favor of moving forward with this lease. There were some concerns from a few committee members regarding Section 4C of the lease, which may or may not wind up having some costs (3rd party transportation if they come into play at all) that *potentially* could be deducted from the royalties. There is specific language in the lease that would allow XTO to deduct for such charges.

All in all, we have a lessor-friendly lease (you are a lessor) that should make everyone feel pretty good about signing the lease. Unlike the two-page public lease offered at recent signing parties, there is no warranty clause like the one we strongly objected to (this is a MUCH better lease than the two-page lease in many ways). The mortgage clause we were concerned about from the Timarron Lease has been removed. The lease was reviewed by an oil and gas attorney that lives in one of our subdivisions, and he indicated we had a lessor-friendly lease.

Holland intends to do the signing parties at St. Stephen's Episcopal Church starting around October 1st. They will organize these signing parties by subdivision. Once we have a schedule, we will put that information out to our group. It will take them between now and then to veriify the properties and the mineral rights for each of the approx. 1,700 homeowners in our group. At the signings, each qualified land owner will be given a bank draft dated 45 days out. Once everything is firmed up by XTO, they will issue checks which you can then take to the bank for deposit. Holland has a spreadsheet showing the properties off of the tax roll. They intend to pay to the middle of the streets. For those that have a corner lot, or perhaps have creek or other areas that impact your property acreage, it is encouraged for you to bring a copy of your plat to the signing. Holland/XTO intend to pay based on what ever is the greater size, what they show including their allowance for streets and such, or what your plat shows plus streets, creeks, or anything else that would be applicable.

While we believe this lease to be equitable and fair, nobody is bound or obligated to sign. If you as an individual property owner believe that you can do better by holding out for another offer at a later date, you should let your conscience be your guide. This lease offer is in line with other leases that have been signed in our area. Currently, the well site for Holland/XTO at the southwest quadrant of Precinct Line and Rumfield (just north of Glade) is the only one that can reach the GRNA pretty much in its entirety. A second XTO site immediately south of L.D.Lockett and west of Bransford also affects portions of GRNA.

Many thanks to our coalition for your patience while the committee worked hard to strike this deal on your behalf. Please pass this information along to your neighbors and/or anyone you know that is in our designated subdivisions so they know the signing is emminent.

Thank you!

The GRNA Committee

Please see the Signing Parties for details.

Other Deals Closed in Tarrant County

September 9, 2008 - SFWA (Southwest Fort Worth Alliance) -- One of the smaller operators in the Barnett Shale has inked one of the biggest neighborhood leasing deals, as Vantage Energy Llc.’s offer of $27,500 an acre won the endorsement of a big southwest Fort Worth group representing more than 20,000 homeowners. Click here for article.

That is the second-highest publicly reported signing bonus in the Barnett Shale, topped only by a $30,000-an-acre bonus Chesapeake Energy agreed in the past month to pay a group of Lake Worth-area property owners. But the Southwest Fort Worth Alliance in the Wedgewood area, representing more than 20 neighborhoods, covers about 10 times more land.

September 5, 2008 - Lake Worth -- A group of neighborhoods covering about 650 acres just east of Lake Worth is negotiating a mineral rights lease with Chesapeake Energy that includes a $30,000-an-acre signing bonus, the highest known bonus paid in the Barnett Shale. It would top the previous record of $27,200 won from Chesapeake in May by a Burleson group. The Lake Worth area landowners, whose property is in both the city of Lake Worth and also the city of Fort Worth, and Chesapeake have agreed on the financial terms and are working on environmental considerations, negotiators said.

About 1,200 property owners in Boat Club Estates, Highland Lake Estates, Jinkens Heights, Crestview, Crestridge, Triangle Estates and Lakeview Estates neighborhoods are involved in the lease. Click here for article.

August 30, 2008 - RHNA (Ridglea Hills Neighborhood Association) -- Chesapeake over the weekend also won the endorsement of the Ridglea Hills Neighborhood Association for a mineral rights lease that pays a bonus of $25,000 per acre and a 25 percent royalty. The neighborhood includes about 1,600 property owners and 640 acres, said Bob Bashein, president of the neighborhood association’s executive committee. “It’s been nine months of drudgery. The first letter from Chesapeake last October was for $5,000 and five years. We negotiated that to $25,000” and a three-year term, Bashein said Tuesday.

August 4, 2008 - CAMRA (Colleyville Area Mineral Rights Association) -- Click Here for CAMRA Web Page and Lease Highlights -- which is just east of us, recently signed a lease with Titan/Caffey for $25,000 per acre and 25.5% royalties, with no cost subtracted from the 25.5%, which is a very important difference from the leases many people are signing!!