Nearby ‘United Neighbors’ group strikes profitable deal

A nearby coalition of homeowners called ‘United Neighbors’ is on the verge of signing one of the highest gas lease offers in the Barnett Shale leasing activity. Last week this group of neighbors reached a tentative deal with Dale Resources, LLC for $15,850 per acre.

Some other concessions they were able to agree upon were a 25% royalty and a primary term of 3 years with a 2 year option. One very favorable result of their discussions was that the bonuses and royalties will be determined based on the homeowner’s lot size and will also factor in the acreage to the center of all abutting public streets and easements.

The contract will also call for a larger buffer area surrounding the drill site. There will need to be 600 feet between residences and drilling areas, which is over and above what the city ordinance calls for.

These provisions highlighted above as well as others in their contract like the expanded environmental compliance provisions, point up the fact that the residents of the United Neighbors have reached a very favorable and lucrative agreement.