nhmna.com

north hi mount neighborhood association

Barnett Shale Progress

Force Pooling

Rule 37?

NHMNA OIL & GAS

Ken Fiihr

[email protected]

817-714-3308

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03-01-10 80 % ?

January 2012 - Oil & Gas companies making phone calls to property owners wanting to have leases signed. Purpleland Management is the new company we are dealing with. The oil and gas committee met with representatives this week. Attached you will find a letter from the neighborhood association Oil & Gas Committee. Please see the attached letter outlining what the NA oil & gas committee has discusses with PLM. Comments, questions, please contact Ken Fiihr, [email protected], Phone: 817-714-3308.

nhmna.com 2013

Many of you have recently been contacted by the landmen that are representing Chesapeake Oil. The company is 4 7's and is based in River Oaks. These guys are telling you that they have 80% of the land leased. I can find, nor do they offer, any proof of this claim. I can, however tell you that a recent sampling I did via email resulted in just the opposite. I found that only 12% of the lots are leased. So I would have to say that unless there is a margin of error that amount to 68% they are in fact being less than honest. I would invite them, and have done so, to correct my findings at any time.

The first threat comes in connection with the 80% fallacy. In order for the driller to request a forced pooling of the unleased lots they must have a certain percentage already leased and I can only assume that figure is around 80%. However our councilman, Carter Burdette, tells me that they only resort to forced pooling as a last resort since the people forced into a lease then become equal share partners with the driller.

We have also seen letters from the 4 7's group threatening to invoke rule 37. Rule 37 refers to the issue of drainage. In other words they can drain the gas from under your property without a lease so long as they don't trespass on your land. The regulations concerning trespassing say that the drill bore can go no closer that 577 feet to an unleased property. Gonna be hard to manage that when the fracing distance on the horizontal bore is 500 feet in any direction.

Oil and Gas

Oil & Gas letter

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