Lease Update - Group offer from XTO:

As you know, the Hidden Lakes Gas Lease Committee (HLGLC) has been engaged in gathering information from, and meeting with, the various oil and gas companies that are interested in leasing in our area.  Colt Exploration, representing XTO Energy, has offered us a “group” deal.   The terms of the offer are:

-         $18,500 upfront Signing Bonus per net mineral acre

-         25% royalty percentage (calculated before expenses)

-         3-year primary lease term with an option for XTO to extend the lease for two years, paying an additional $18,500 per net mineral acre

 

The remaining lease terms have not been negotiated yet; further discussions will be planned, with both Chesapeake (who has yet to make a “group” offer to us) and XTO.

 

The HLGLC has worked long and hard to weigh all important factors into making this decision, including drillsite locations, environmental considerations, well production levels (equals higher royalties), community involvement, and reputation.  Fort Worth-based XTO Energy is very respected, as is Chesapeake.

 

XTO has one “declared” drillsite on acreage west of Davis, just north of where Precinct Line meets Davis.   XTO has two other “soon-to-be-declared” drillsites that will serve Hidden Lakes and the surrounding communities.  We will report their exact locations when they are finalized, which is expected this week or next.  One drillsite is predicted to be near Hidden Lakes, but assurances are that it will be “at least 1000 feet” from the nearest HL home.

 

Chesapeake’s only proposed drillsite is on the 19 acres behind the Hidden Lakes monument at our Bear Creek / Davis entrance.  Their initial proposal was only for the four villages in that area.

 

MINERAL RIGHTS:

Unfortunately, we have two areas within Hidden Lakes affected by “mineral rights reservations.”  The boundaries of the two “reservations” run through some properties.  We received today a list of addresses affected by those reservations.  Some will have partial mineral rights ownership as the reservations run through their properties, calculated after a survey is done.  Rather than post a list, those homeowners will be personally contacted via email the week of May 18^th.

 

Basically, the Texas A&M reservation involves homes on/off Promontory, both north and south of Bear Creek Parkway (in Creekwood and new area of Woodlands).

 

The other reservation is in The Enclave (listed as The Retreat on their deeds), involving the streets of Laguna Trail, Shoreline and Sandy Trail.  There are also a few other odd addresses where mineral rights were reserved by the builder and / or previous owner. 

 

As we have told you all along, the HLGLC’s ultimate endorsement of any offer in no way binds or obligates any resident to the deal, and should in no way be construed as the provision of personal or legal advice concerning your mineral rights.  The decision to sign or not sign a lease rests solely with the mineral owners (most of whom are the HL property owners).  We recommend that every resident consult with their own attorney in such matters if they so desire.