CONTACT:

Gena Tidwell 

or

Larry Simmons

or

Bob Cochrane

If I register, am I giving up my mineral rights?

Not at all! When we approach the gas companies to tell them that we're representing multiple neighborhoods and their respective homeowners, they'll ask us to prove it. The only way we can prove it is with signed registration forms. You're not giving anyone your rights, nor any money, by registering. You're just telling the Organization that you're interested in us representing your interests for a better deal. In the end, if you like the lease that the Organization negotiates, you may sign it and get your bonus and royalties from the gas company. If you don't like it, you're free to negotiate on your own behalf. Either way, your mineral rights are always your responsibility.

Historically, when property-owners team up into Organizations, they wind up getting much better deals with the gas companies. This is why the Organization exists: so that all of us can negotiate together in large, strong numbers.


How can I tell if I own my mineral rights?

Sometimes the research into the ownership of mineral rights can be very complicated. There's good news, though; if you got a letter from Dale Property Resources, LLC, then they've already done the research. Our contact with the company confirms that the recipients of these letters are the owners of their mineral rights. If you find any more helpful pieces of information such as this, please let us know!


Is my registration legally binding?

No! When you register, you're just giving the Organization your official contact information and permission to negotiate on your behalf. You will not be required to sign anything, nor will you be financially committed to anything. Registering simply lets the Organization contact you quickly to keep you up to date and, more importantly, prove to the gas companies that we mean business. If you do not like the lease that the Organization negotiates with a gas company, you are not required to sign it; ultimately, you decide what happens to your minerals. Let us negotiate on your behalf. If you like the outcome, go with it. If not, you're completely free to do anything else you like.


How is the gas actually removed from the ground?

Wells are drilled down to 6,000 to 8,000 ft (1.3 miles). Bedford lies in an exceptional spot for gas extraction because the gas is layered above and below by solid rock. In other areas, the gas is up against layers of water, forcing companies to be much more fragile with extraction in those areas. Chesapeake has produced a video that shows the basics of gas drilling. Additionally, Dales Resources has provided a virtual oil rig to show some detail.


How long does drilling last?

Drilling normally proceeds for a few weeks. Once the drilling is finished and the rig is removed, the well typically produces gas for 25 to 30 years. The gas company would put up a new rig every five to seven years to "re-frac" the well.


What does it mean to "frac" a well?

A "frac" is nothing more than a fracture. The drillers will mix sand and water and "mud" under high pressure and pump the mixture down into the well. This process quite literally fractures the shale rock that contains all of the gas. Fracturing the well creates the cracks through which the gas will flow through the rock and up into the well bore.


What are the odds that our well will produce gas?

If the well is not a viable well, the company will close it up and abandon it, at least for several years. Obviously, this would result in no production and therefore no royalties for property owners. Typically, 8 out of 9 wells created by Chesapeake produce gas; this is a success rate of 89%.

What is subordination?

Since urban drilling is such a new thing, many property owners have run into problems with subordination. Subordination occurs when your mortgage company steps in and claims the royalties off your minerals because they hold a lien, a legal claim, against your property. An anti-subordination clause prevents the mortgage companies from doing this. Mortgage companies will often let you file paperwork to be released from this so you can reclaim your royalty checks, but they often charge hundreds of dollars to do so. Even then there is no guarantee that they'll approve your request. Including the clause in the lease up front removes all these hassles and potentially saves everyone time and money.


What if I say no to the contract?

Every owner has the right to say no; each is responsible for his own property. However, if you do not sign any contract with the gas company before they take their case to the Texas Railroad Commission as a Rule 37, they will likely ignore you. In effect, if your neighbors all sign contracts and you try to hold them, the BMRO will, if historical trends continue, tell the gas company to "drill around" your property because you disagree. They will not stop the drilling on your behalf. In effect, they will drain the minerals from your property and pay you nothing to do so. We recommend you sign and at least get something out of the deal!