Gas Lease Frequently Asked Questions

If I’ve gotten an offer does that mean I own my mineral rights?
Not necessarily. It appears that offers are made based on TAD records for surface ownership, and that a mineral title search is not conducted until you agree to lease.

I never received a lease from anyone? Will I be left out?

The fact that you have not yet received a lease offer does not mean that you do not own your minerals. If you do own your minerals, you will not be left out. Without conducting a mineral title search on your property, however, it is impossible to say if you own your minerals.

How do I find out if I own my mineral rights?

The quickest way—though not most reliable way—is to look at Schedule B to your title insurance policy. It is not 100% definitive, but if someone reserved the minerals, it may appear as an exception to coverage on Schedule B. If Schedule B does not mention a mineral reservation, that does not necessarily mean you own your minerals. Review the warranty deeds for your property each time it changed owners and see if the minerals were reserved during any of those transactions. You may be able to do this electronically via the public records link on this site. If the deed is not available on line, you might have to go to the courthouse to pull the records. Or, hire an attorney to do a mineral title search looking back to every deed in the chain of title, back to the Republic of Texas.

How do I find out how large my lot is so I can figure out what my bonus will be?

To find out your lot size, check the acreage TAD lists for your property or look at the survey that was required by your lender when you bought the property. You can then calculate your bonus with the handy acreage calculator located on this website. Estimate your lot size in total square feet and insert that number (example, 50 feet wide times 125 feet long equals 6,250 square feet, which is a typical size lot for our neighborhood). The calculator will tell you how much of an acre you have. Your bonus would be based on that fractional amount. For example, with a $20,000 bonus per acre, a typical lot in AHNA of 0.155 acre (6750 sq ft) would receive $3,100 before taxes.

Will you negotiate to include the streets and alleys?

Yes! Property owners should be paid for each square foot that they own. Many residential lot owners own to the center of the street and the alley (where the city has an easement). The acreage under the easements is not reflected on the TAD rolls, but the property owner owns the minerals, and in such cases, the property owner should be paid. In some cases, the residential lot stops at the sidewalk, and the city owns the street outright (usually from sidewalk to sidewalk) rather than there being an easement. In those cases, the city owns the minerals beneath the street and the city would receive the bonus and royalty. Consult the survey for your property to see which scenario applies to you.

What are the boundaries of the Arlington Heights Neighborhood Association?

The neighborhood is bounded by Camp Bowie on the north, I-30 on the south and west, and Montgomery Street on the east.

Will there be a drill site within our neighborhood?
Very unlikely. Bear in mind, however, that the Fort Worth ordinance allows drill sites to be as close as 600 feet from buildings.


Can I get a copy of the proposed lease agreement?

The lease will be made available after we have negotiated it. To protect our negotiating position, we don’t want the proposed lease or negotiating points floating around.

Can we see the list of things you’ll be negotiating?
Issues you can be certain we are addressing include no surface use agreements, mortgage subordination, and noise restrictions, among others. If you have a particular point of concern you want addressed in the lease, please contact us via e-mail. To protect our negotiating position, we don’t want the proposed lease or negotiating points floating around.

 

How can I contact the attorney who is working on this?

AHNA retained an attorney, so the neighborhood association is his client, not the individual property owners. Having the attorney field numerous individual phone calls and emails from residents would be unmanageable. If you have a specific question, please use the email blog to submit it to AHNA and we will do our best to get an answer for you. Due to attorney-client privilege, the attorney cannot discuss the specifics of the neighborhood negotiations.

Will we hear from other gas companies?
Some other companies have expressed an interest in our neighborhood, but due to a lack of drill sites, they were not in a position to respond to the RFP. Until we have a firm deal with any operator, the door remains open to the rest of them.

Will you try to get 25% cost free to the royalty owner, not net?
Yes.

What about mortgage subordination?
The operator should be responsible for obtaining and paying for subordination agreements, not the homeowner.

I already signed; can I get in on the neighborhood lease?

We will try to get deals for early signers improved, but can’t make any promises. Breaking the lease you signed would require the gas company to tear up your contract and enter into a more generous contract. That is not common, but something the gas company may be willing to do as a public relations gesture. Again, we can’t guarantee anything.

What about pipelines and eminent domain?
Pipeline companies generally have the power of eminent domain and the right to condemn private property. We are aware of the potential problems and will strive to protect the neighborhood from eminent domain.

How much longer will it be before we have a neighborhood lease?

Right now, it is too soon to tell since we are negotiating terms. We will give an update when we have news to report.

What is the time line for the next update?

Updates will be made when there is news to report. Thank you for your continued patience.